NOTE 8—COMMITMENTS AND CONTINGENCIES

 

The Company has $1,208,000 in operating lease obligations payable through 2030 and $217,000 in other contractual obligations. The contractual services include $202,000 payable through December 31, 2026 and $15,000 payable through December 31, 2027. The Company also has $434,000 in open purchase order commitments payable through September 30, 2026 of which $272,000 (63%) is to one electronics vendor.

 

Historical Timeline

Fiscal YearFiled
2025Mar 5, 2026Showing above
2024Mar 6, 2025
2023Mar 7, 2024
2022Mar 16, 2023
2021Mar 31, 2022
2020Mar 16, 2021
2019Mar 25, 2020
2018Mar 27, 2019
2017Mar 26, 2018
2015Mar 30, 2016

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.