Note 17. Commitments and Contingencies

In the normal course of business, the Company is at times subject to pending and threatened legal actions. In management’s opinion, any potential loss resulting from the resolution of these matters will not have a material effect on the results of operations, financial position or cash flows of the Company.

Employment Litigation

In connection with the FLYTE acquisition, the Company assumed certain contingent liabilities, including an employment dispute with a former FLYTE employee alleging wrongful termination. The matter is currently proceeding through arbitration. While the Company disputes these allegations, the Company determined a loss was probable and reasonably estimable and recorded an estimated liability of $0.2 million under accrued expenses in the condensed consolidated balance sheets as of March 31, 2026. No amounts have been paid related to this matter as of March 31, 2026.

Promissory Note Settlement

Prior to the Company’s acquisition of Flyte, Flyte was involved in a legal proceeding regarding a defaulted unsecured subordinated promissory note originally executed in November 2023. In September 2025, judgment was entered against Flyte in favor of the noteholders. On March 9, 2026, Flyte entered into a settlement and judgment satisfaction agreement to resolve the matter and satisfy the judgment. Pursuant to the agreement, Flyte agreed to pay an aggregate settlement amount of $0.3 million in two installments of $150 thousand each, with the first installment due on March 9, 2026 and the second installment due on May 9, 2026. The Company paid $150 thousand during the three months ended March 31, 2026, and the remaining $150 thousand is included within accrued expenses on the condensed consolidated balance sheets as of March 31, 2026.