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This excerpt taken from the PSTA 10-K filed Mar 25, 2005. ITEM 2. PROPERTIES
During 2003, the Company leased an additional 41,300 square feet of space at its offsite distribution complex to accommodate plant expansion and to provide for future growth. The added space has been only partially developed with two new production lines brought on-line in the second quarter of 2003. The Company now leases approximately 133,000 square feet in Salinas, California, comprised of 43,700 at its headquarters facility and 89,200 at its distribution facility three miles from its headquarters. The headquarters facility is dedicated to manufacturing operations, offices and its test kitchen. The distribution complex is comprised of 19,800 feet of refrigerated cold storage, 2,100 square feet of office space, 26,000 square feet of ambient storage, and the new lease for 41,300 sq. ft., which is dedicated to production space and storage, with approximately 8,000 square feet currently used for production. The current production facilities/headquarters lease expired in October 2004. The Company and the landlord have agreed to a ten year extension of the current lease at current fair-market value. The fair-market value is being determined by a real estate appraiser in the area. The fair
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market value is likely to create a significant increase in rent for the Moffett Street facility. The lease for the distribution center and adjacent production and storage facilities expires in June 2007 with two five-year renewal options.
On January 2, 2003 the Company entered into a three-year lease for an additional 1,200 square feet of office space next door to its headquarters facility in Salinas, California. The lease commenced March 1, 2003 and expires February 28, 2006. In 2004, the Company announced the purchase of an 80% interest in CIBO Naturals LLC which operates out of a 17,500 square foot leased facility in Seattle, WA which expires in May 2005 which is in the process of being extended for an additional three years.
The Company acquired a lease for the 19,000 square foot production facility and offices as part of its acquisition of Emerald Valley. The lease expires December 31, 2007, with three five-year renewal options.
Management feels that its facilities are adequate to support sales growth for at least 24 months unless an acquisition is made. Most of its facilities are only operating one shift per day and only running five days per week.
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