NOTE 10 - COMMITMENTS AND CONTINGENCIES

Legal Proceedings

The Company and its subsidiaries are not involved in any pending proceedings other than ordinary routine litigation incidental to their business. Management believes none of these proceedings, if determined adversely, would have a material effect on the business or financial condition of the Company or its subsidiaries.

Executive Compensation Arrangement

On February 26, 2026, the Company entered into an amendment to the employment agreement of Andrew Gordon, the Company’s President, Chief Executive Officer, Chief Financial Officer and Treasurer. Pursuant to the amendment, Mr. Gordon agreed to reduce his annual base salary from $325,000 to $80,000. In addition, Mr. Gordon became eligible to receive a cash incentive bonus of $1.6 million, payable no later than March 16, 2030, provided he remains employed by the Company through January 1, 2030. The amendment also requires Mr. Gordon to execute a general release as a condition to receiving any severance benefits under the agreement.

The Company determined that the incentive bonus represents a service-based compensation arrangement and is being recognized over the requisite service period from February 1, 2026 through January 1, 2030. As of April 30, 2026, the Company had recorded an accrued liability of approximately $102,128, which is included within accounts payable and accrued expenses in the accompanying condensed consolidated balance sheet.