EMERSON RADIO CORP Commitments Disclosure
NOTE 6 — COMMITMENTS AND CONTINGENCIES:
The Company’s ERP software provider is subscription based with annual commitments as follows (in thousands).
| Fiscal Years | Amount | |||
| 2026 | $ | 30 | ||
| Total | $ | 30 | ||
Rent expense resulting from leases with non-affiliated companies aggregated $64,000 and $49,000 for fiscal 2025 and 2024.
Letters of Credit:
The Company utilizes the services of one of its banks to issue secured letters of credit on behalf of the Company, as needed, on a 100% cash collateralized basis. At March 31, 2025 and March 31, 2024, the Company had letters of credit outstanding.
Capital Expenditure:
As of March 31, 2025 and March 31, 2024, there were capital expenditures or other commitments other than the normal purchase orders used to secure product.
Employee Benefit Plan:
The Company currently sponsors a defined contribution 401(k) retirement plan which is subject to the provisions of the Employee Retirement Income Security Act. The Company matches a percentage of the participants’ contributions up to a specified amount. These contributions to the plan for fiscal 2025 and 2024 were approximately $19,000 for both periods and were charged against earnings for the periods presented.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jun 27, 2025 | Showing above |
| 2024 | Jun 27, 2024 | |
| 2023 | Jun 26, 2023 | |
| 2022 | Jun 23, 2022 | |
| 2021 | Jun 25, 2021 | |
| 2020 | Jun 26, 2020 | |
| 2019 | Jun 26, 2019 | |
| 2018 | Jun 28, 2018 | |
| 2017 | Jun 26, 2017 | |
| 2016 | Jun 29, 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.