11. Commitments and Contingencies

The Company at times becomes a party to claims in the ordinary course of business. Management believes that the ultimate resolution of pending or threatened proceedings will not have a material effect on the financial position, results of operations or liquidity of the Company.

We have in place insurance coverage for litigation defense and claim settlement costs incurred in connection with these claims. We estimate the value of probable payments under these claims and probable insurance recoveries associated with existing claims based on management’s interpretations and estimates surrounding the claims and available or applicable insurance coverage.

At June 30, 2026, Stereotaxis had $6.3 million of insurance receivables recorded as insurance receivable and $6.3 million of legal contingencies recorded as accrued legal liabilities, both related to ongoing litigation. We believe we have substantial defenses to these claims; however, the ultimate outcome of legal proceedings and the availability and collectability of insurance recoveries are inherently uncertain, and we will continue to evaluate developments and adjust our assessments as necessary.

In February 2024, a vendor filed financing statements under the Uniform Commercial Code (“UCC”) on underlying inventory for approximately $0.6 million. We believe the financing statements were filed without merit, and we are fully contesting the propriety of such actions.

In April 2021, the Company entered into a letter of credit pursuant to the lease agreement totaling approximately $1.8 million to be delivered in four equal installments of which the first was delivered in April 2021, the second in July 2021, the third in October 2021, and the fourth in January 2022. The amount available under this letter of credit automatically reduced by one-fortieth at the end of each month during the lease term and was fully reduced in May 2025.