Tron Inc. Commitments Disclosure
Note 14 - Commitments and Contingencies
The Company entered into a new office lease Effective September 1, 2025. The primary term of the lease is three years and two months with a renewal option for an additional two years. Minimum annual lease payments for the primary term and renewal are as follows:
| Primary Period | Amount | Amount During Renewal Period | Amount | |||||||
| September 1 to August 31, 2026 | $ | 262,354 | November 1 to October 31, 2029 | $ | 278,988 | |||||
| September 1 to August 31, 2027 | $ | 267,601 | November 1 to October 31, 2030 | $ | 284,568 | |||||
| September 1 to August 31, 2028 | $ | 273,518 | ||||||||
| September 1 to October 31, 2028 | $ | 46,498 | ||||||||
Under the new standard for lease reporting, the Company recorded a Right of Use Asset (“ROU”) and an offsetting lease liability of $753,564 representing the present value of the future payments under the lease calculated using an 7.5% discount rate (the current borrowing rate of the company). The ROU and lease liability are amortized over the three-year life of the lease. The unamortized balances at December 31, 2025 were ROU asset of $682,286, current portion of the lease liability of $220,206 and non-current portion of lease liability of $464,100.
Additionally, the Company recognized accreted interest expense of $18,194 and rent expense of $71,278 for the lease during the year ended December 31, 2025.
Legal Proceedings
The Company may be subject to legal proceedings and claims arising from contracts or other matters from time to time in the ordinary course of business. Management is not aware of any pending or threatened litigation where the ultimate disposition or resolution could have a material adverse effect on its financial position, results of operations or liquidity.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 25, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Apr 1, 2024 | |
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.