Note 5 - Commitments and Contingencies |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Notes to Financial Statements | |
| Commitments and Contingencies Disclosure [Text Block] |
Note 5 – Commitments and Contingencies
License Agreements
In 2015, the Company entered into a licensing agreement which expires in February 2033. Per the agreement, the Company has an exclusive royalty-free license, included in intangible assets, associated with semiconductor power switches which enhances its intellectual property portfolio. The Company pays $100,000 annually under this agreement.
In 2023, the Company amended a 2021 license agreement which expires in February 2034. Per the agreement, the Company has an exclusive royalty-free license, included in intangible assets, associated with semiconductor drive circuitry which enhances its intellectual property portfolio. The Company pays $50,000 annually under this agreement.
At June 30, 2026, the estimated present value of future payments under the licensing agreements was $974,559 with $150,000 due and payable in the next twelve months ($824,559 recognized in other long-term liabilities, $125,000 in accrued expenses and $25,000 in accounts payable). The Company is accruing interest for future payments related to these agreements.
Legal Proceedings
The Company is subject to litigation from time to time. While the Company believes that any current or threatened legal proceedings are without merit and not material, there can be no assurance that such matters will not have a material adverse effect on its business, financial condition or results of operations in the future.
Indemnification Obligations
The employment agreements of Company executives include an indemnification provision whereby the Company shall indemnify and defend, at the Company’s expense, its executives so long as an executive’s actions were taken in good faith and in furtherance of the Company’s business and within the scope of the executive’s duties and authority. |