Summary
Axon Enterprise, Inc. (AXON) announced on October 15, 2019, the termination of a Material Definitive Agreement related to the purchase of a land parcel in Maricopa County, Arizona, intended for its new headquarters. The termination, effective October 10, 2019, was due to the company's inability to secure design approval from the Salt River Pima-Maricopa Indian Community. This development means Axon will forfeit its approximately $0.2 million escrow deposit and has no further payment obligations under the agreement. The company had previously planned to spend $24.0 million on the land purchase and related prepaid rent.
Key Highlights
- 1Termination of a Material Definitive Agreement for the purchase of land for a new headquarters.
- 2Reason for termination: Failure to secure design approval from the Salt River Pima-Maricopa Indian Community.
- 3Expected forfeiture of a $0.2 million escrow deposit.
- 4No further payment obligations beyond the forfeited deposit.
- 5Anticipated total expenditure for the land and prepaid rent was $24.0 million.
- 6Expected to record an impairment charge of $0.6 million to $0.8 million (excluding deposit) for abandoned planning and site development costs.