AgEagle Aerial Systems Inc. Commitments Disclosure
Note 13 – Commitments and Contingencies
Legal Matters
We note that in the ordinary course of business that we may be the subject of, or party to, various pending or threatened legal actions which could result in a material adverse outcome for which the related damages may not be estimable. We do not believe any legal action would have a significant impact on the financials other than the matter disclosed above. However, there is inherent uncertainty regarding such matters.
Purchase Commitments
The Company routinely places orders for manufacturing services and materials. As of December 31, 2025, the Company had purchase commitments of approximately $1,522,321. These purchase commitments are expected to be realized during the year ending December 31, 2026. As of December 31, 2024, the Company had purchase commitments of $1,723,399, which were realized during the year ending December 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Apr 1, 2024 | |
| 2022 | Apr 4, 2023 | |
| 2021 | Apr 12, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Apr 13, 2020 | |
| 2018 | Mar 28, 2019 | |
| 2017 | Mar 23, 2018 | |
| 2016 | Mar 31, 2017 | |
| 2015 | Apr 11, 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.