NATHANS FAMOUS, INC. Commitments Disclosure
NOTE M – COMMITMENTS AND CONTINGENCIES
Legal Proceedings
The Company and its subsidiaries are from time to time involved in ordinary and routine litigation. Management presently believes that the ultimate outcome of these proceedings, individually or in the aggregate, will not have a material adverse effect on the Company’s financial position, cash flows or results of operations. Nevertheless, litigation is subject to inherent uncertainties and unfavorable rulings could occur. An unfavorable ruling could include money damages and, in such event, could result in a material adverse impact on the Company’s results of operations for the period in which the ruling occurs.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jun 10, 2025 | Showing above |
| 2024 | Jun 12, 2024 | |
| 2023 | Jun 8, 2023 | |
| 2022 | Jun 10, 2022 | |
| 2021 | Jun 11, 2021 | |
| 2020 | Jun 12, 2020 | |
| 2019 | Jun 14, 2019 | |
| 2018 | Jun 8, 2018 | |
| 2017 | Jun 9, 2017 | |
| 2016 | Jun 10, 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.