Rocket One Inc. Commitments Disclosure
NOTE 8 – Commitments and Contingencies
Office Lease
Effective November 2023, the Company leased office space for a two-year term. The Company’s office lease contained a renewal option. The Company evaluated several factors in assessing whether there is reasonable certainty that the Company will exercise its contractual renewal option concluding that it is not reasonably certain to exercise such option. As it is not reasonably certain to be exercised, the Company excluded the renewal term in determining the lease term used in calculating the ROU asset and lease liability. In December 2024, the landlord notified the Company that it will be closing its operations at the Company’s location and offered to relocate the Company to a new location. The Company agreed to relocate and accordingly, on December 9, 2024, the Company and the landlord entered into a new lease agreement (the “December 2024 Lease”). Pursuant to the December 2024 Lease, effective December 20, 2024, the Company leased office space for a term of 14 months, expiring on February 28, 2026. Pursuant to the December 2024 Lease, the Company is required to pay a monthly base rent of $2,732 from March 1, 2025 through February 2026. In connection with December 2024 Lease, in December 2024, the Company increased ROU assets and lease liabilities by $31,075 and removed all remaining ROU assets and lease liabilities associated with the November 2023 lease.
The table below presents certain information related to the Company’s lease costs, which are included in general and administrative expenses in the accompanying consolidated statements of operation and comprehensive loss:
| Year Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Operating lease expense | $ | 29,089 | $ | 34,000 | ||||
| Short term lease expense | 24,710 | 19,135 | ||||||
| Total lease cost | $ | 53,799 | $ | 53,135 | ||||
Right-of-use asset for operating leases were recorded in the consolidated balance sheets as follows:
| December 31, 2025 | December 31, 2024 | |||||||
| Office lease right-of-use asset | $ | 31,075 | $ | 31,075 | ||||
| Less accumulated amortization | (26,423 | ) | ||||||
| Total right-of-use asset, net | $ | 4,652 | $ | 31,075 | ||||
Operating lease liability for operating leases were recorded in the consolidated balance sheets as follows:
| December 31, 2025 | December 31, 2024 | |||||||
| Current portion of operating lease liability | $ | 5,678 | $ | 28,366 | ||||
| Long-term portion of operating lease liability | 2,709 | |||||||
| Total operating lease liability | $ | 5,678 | $ | 31,075 | ||||
Supplemental cash flow information related to the Company’s leases for the year ended December 31, 2025 were as follows:
| Cash paid for amounts included in the measurement of lease liabilities: | ||||
| Operating cash flows for operating leases | $ | 25,397 | ||
The weighted-average remaining lease term for the operating lease is 0.17 years and the weighted-average incremental borrowing rate is 10% as of December 31, 2025 and 2024.
As of December 31, 2025, future annual minimum lease payments required under operating leases are as follows:
| 2026 | $ | 5,750 | ||
| Total minimum lease payments | 5,750 | |||
| Less: effects of discounting | (72 | ) | ||
| Present value of future minimum lease payments | $ | 5,678 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 27, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
| 2023 | Mar 28, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 30, 2022 | |
| 2020 | Mar 16, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Apr 1, 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.