Note 4 - Commitments and Contingencies |
12 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Notes to Financial Statements | |
| Commitments and Contingencies Disclosure [Text Block] |
Note 4– Commitments and Contingencies
Legal Proceedings
From time to time, we may be involved in claims that arise during the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, we do currently have any pending litigation to which we are a party or to which our property is subject that we believe to be material. Regardless of the outcome, litigation can be costly and time consuming, and it can divert management’s attention from important business matters and initiatives, negatively impacting our overall operations.
Employment Agreements
The Company has agreements with key employees to provide certain benefits, including salary and other wage-related benefits, in the event of termination. In addition, the Company has adopted a severance policy for certain key members of executive management to provide certain benefits, including salary and other wage-related benefits, in the event of termination without cause. In total, these benefits would amount to a range of $1.9 million to $2.5 million using the rate of compensation in effect at March 31, 2026.
Fractional Shares
On November 1, 2024, the Company received notice from the Depository Trust and Clearing Corporation ("DTCC") on behalf of the brokerage firms that hold the shares of Company common stock held in “street name” that, in connection with the rounding of fractional shares in connection with the reverse stock split ("Reverse Stock Split"), the Company would need to issue 271,846 shares of common stock (the “Shares”) for the rounding of shares.
On
October 24, 2024, the Company completed a
one-for-
twenty reverse stock split of its common stock.
In connection with the approval of the reverse stock split, the Company agreed that
no fractional shares will be issued in connection with the reverse stock split and that it would issue
one full share of the post-reverse stock split common stock to any shareholder who would have been entitled to receive a fractional share as a result of the process. T
he Company does
not believe the number of Shares being requested is correct based on the historical number of shareholders of its common stock and is aware of similar anomalies in recent months for other companies completing a Reverse Stock Split. As such, the Company has begun an inquiry into the calculations set forth in the request. During the pendency of this inquiry, the Company does
not intend to issue any shares in connection with the fractional shares being requested and has concluded that an obligation should
not be recorded in its financial statements. The Company is
not currently subject to any pending litigation as a result of the fractional roundup shares.
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