DNA X, Inc. Commitments Disclosure

NOTE 9 —Commitments and Contingencies

 

The terms and conditions of applicable bylaws, certificates or articles of incorporation, agreements or applicable law may obligate DNA X under certain circumstances to indemnify its current and former directors, officers or employees, and underwriters, with respect to certain of the matters described below.

 

Purchase Commitments—There are no noncancelable purchase orders as of December 31, 2025 for continuing operations. The company stopped issuing purchase commitments in 2025 in anticipation of the closing of the asset sale.

 

Royalty payments—For its discontinue operations, the Company is required to pay per unit royalties to wireless essential patent holders. The Company pays licensing fees for the use of software for its crypto trading platform.

 

General litigation—The Company is occasionally involved in various legal proceedings arising in the normal course of business. The Company is not involved in any material litigation as of the date of the filing of this Annual Report on Form 10-K.

 

The results of any future litigation cannot be predicted with certainty and, regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management time and resources and other factors.

 

Indemnification—For discontinued operations, under the terms of its agreements with wireless carriers and other partners, the Company has agreed to provide indemnification for intellectual property infringement claims related to the Company’s product sold by them to their end customers. From time to time, the Company receives notices from these wireless carriers and other partners of a claim for infringement of intellectual property rights potentially related to their products. These infringement claims have been settled, dismissed, or have not been further pursued by the customers.