Pangaea Logistics Solutions Ltd.PANL

Pangaea Logistics Solutions Ltd. Commitments Disclosure

10-KFiled Mar 16, 20262 min read
COMMITMENTS AND CONTINGENCIES
Long-term Contracts Accounted for as Operating Leases

The Company has operating leases for office facilities in various locations. These leases generally have remaining terms ranging from 9 months to 60 months, some of which include options to extend or terminate. The Company’s lease agreements do not contain material residual value guarantees or restrictive covenants. The weighted-average remaining lease term: 3.07 years.
The following table summarizes the Company’s office lease commitments as of December 31, 2025.

Location
Remaining lease Term (as of December 31, 2025)
Undiscounted Payments
Copenhagen, Denmark12 months$123 
Singapore11 months$68 
Connecticut, U.S.60 months$406 
Greece9 months$123 
Total undiscounted lease payments$720 

For the twelve months ended December 31, 2025 and 2024, the Company recognized approximately $443 and $198, respectively, as lease expense for office leases in General and Administrative Expenses.

The following table summarizes the Company’s future minimum lease payments for office leases as of December 31, 2025.

Year ending December 31,Amount
2026$395 
202781 
202881 
202981 
203081 
Total$720 

Legal Proceedings and Claims
The Company is subject to certain asserted claims arising in the ordinary course of business. The Company intends to vigorously assert its rights and defend itself in any litigation that may arise from such claims. While the ultimate outcome of these matters could affect the results of operations of any one year, and while there can be no assurance with respect thereto, management believes that after final disposition, any financial impact to the Company would not be material to its consolidated financial position, results of operations, or cash flows.

Historical Timeline

Fiscal YearFiled
2025Mar 16, 2026Showing above
2024Mar 18, 2025
2023Mar 14, 2024
2022Mar 15, 2023
2021Mar 16, 2022

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.

Other Available Disclosures

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