With the paydown, the Snowball's restricted cash deposit also has been reduced, from $1.6 million to $70,000. The new lease constitutes a 96% reduction of the total obligations under the original lease, and an immediate savings of $1.6 million in annual operating expenses.
"We are pleased that we have successfully renegotiated this long-term lease, as the new lease represents a material reduction in our operating expenses and enables us to make further progress towards our goal of achieving cash flow breakeven," said Jim Tolonen, CFO and COO of Snowball.
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