NOTE 11 – CONTINGENCIES AND COMMITMENTS

In the course of normal operations, the Company is involved in various claims and litigation matters that management intends to defend. The range of loss, if any, from all potential claims cannot be reasonably estimated. However, management believes the ultimate resolution of matters not disclosed below will not have a material adverse impact on the Company’s business or financial position.

AIC has a number of unpaid legal judgments for amounts that plaintiffs claim are due for services or goods provided to the Company that are accrued and total approximately $3,400,000 as of December 31, 2025 and 2024. The company has been named in approximately $2,300,000 of these proceedings which have been accrued in the company’s financial statements, including a judgement stemming from an AIC contractor in the amount of $1,673,552.

In December 2025, Wyoming County Coal (“WCC”) was named as a defendant in litigation initiated by the trustee of the 2023 Series West Virginia Development Bond seeking accelerated payment of amounts allegedly due under the bond. American Infrastructure Corporation (“AIC”), the sole parent of WCC, and the Company were also named in connection with a project completion guaranty provided at the time of financing. The Company and WCC are contesting the claims and pursuing a potential out‑of‑court resolution. Based on current information, management does not believe the outcome of this matter will have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows, and no liability has been recorded as of December 31, 2025.