Note 18. Commitments and Contingencies

In the normal course of business, the Company is at times subject to pending and threatened legal actions. In management’s opinion, any potential loss resulting from the resolution of these matters will not have a material effect on the results of operations, financial position or cash flows of the Company.

Employment Litigation

In connection with the FLYTE acquisition, the Company assumed certain contingent liabilities, including an employment dispute with a former FLYTE employee alleging wrongful termination. The matter is currently proceeding through arbitration. While the Company disputes these allegations, the Company determined a loss was probable and reasonably estimable and recorded an estimated liability of $0.2 million under accrued expenses in the condensed consolidated balance sheets as of June 30, 2026. No amounts have been paid related to this matter as of June 30, 2026.

Promissory Note Settlement

Prior to the Company’s acquisition of Flyte, Flyte was involved in a legal proceeding regarding a defaulted unsecured subordinated promissory note. On March 9, 2026, Flyte entered into a settlement and judgment satisfaction agreement pursuant to which Flyte agreed to pay an aggregate settlement amount of $0.3 million in two installments of $150 thousand each. The first installment was paid during the three months ended March 31, 2026, and the remaining $150 thousand installment was paid during the three months ended June 30, 2026. As of June 30, 2026, the settlement had been paid in full and the Company had no remaining obligation related to the matter.