NOTE 21 – COMMITMENTS AND CONTINGENCIES

 

Lease Commitments

 

The Company has leased premises for its assembly site under operating leases since June 2022. Rent expense is recognized on a straight-line basis over the terms of the operating leases accordingly and the Company records the difference between cash rent payments and the recognition of rent expense as a deferred rent liability. 

 

The following are the aggregate non-cancellable future minimum lease payments under operating leases as of December 31, 2025: 

 

For the year ending December 31,  Operating
Leases
 
2026  $14,085 
Total lease payments  $14,085 

Historical Timeline

Fiscal YearFiled
2025Mar 23, 2026Showing above
2024Mar 26, 2025
2023Apr 16, 2024
2022Mar 31, 2023
2021Mar 31, 2022
2020Mar 31, 2021
2019Apr 3, 2020
2018Feb 27, 2019

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.