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COMMITMENTS AND CONTINGENCIES
6 Months Ended
Jun. 30, 2026
COMMITMENTS AND CONTINGENCIES  
COMMITMENTS AND CONTINGENCIES

NOTE 4 — COMMITMENTS AND CONTINGENCIES

Litigation

From time to time, we are involved in various legal proceedings. These matters are subject to inherent uncertainties, and it is possible that some of these matters could ultimately be decided, resolved or settled adversely to us. Further, even if these matters are resolved favorably, they may require the expenditure of significant fees and costs.

On the basis of our current knowledge and understanding, we do not believe that judgments, settlements or orders, if any, arising from these matters (either individually or in the aggregate) will have a material adverse effect on our financial position or results of operations.  

Contingent Consideration

The Company recorded contingent consideration liabilities in connection with certain asset acquisition transactions in fiscal year 2025. The fair value of the contingent consideration liabilities was determined by management based on estimated recurring revenue from acquired customer relationships. As of June 30, 2026, the total contingent consideration liability was $416,000.

Operating Leases

The Company has operating leases for office space in Tucson, Arizona, and Miami Beach, Florida. The following summarizes the total lease liabilities and remaining future minimum lease payments as of June 30, 2026 (in thousands):

Year ending December 31, 

Operating Leases

2026 (6 months remaining)

$

34

2027

80

2028

83

2029

85

2030

88

Thereafter

15

Total minimum lease payments

 

385

Less: present value discount

 

(65)

Total lease liabilities

$

320

Current portion of lease liabilities

$

56

Long term portion of lease liabilities

$

264