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Note 7 - Commitments and Contingencies | 12 Months Ended
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Dec. 31, 2022
Notes to Financial Statements |
Commitments and Contingencies Disclosure [Text Block] | Note 7– Commitments and Contingencies For the years ended December 31, 2022 and 2021, rent expense included in selling, general and administrative expenses on the accompanying Consolidated Statement of Operations for operating leases was approximately $0.2 million for both years. Rent expense included in cost of revenue for operating leases was $0.7 million and $0.8 million for the years ended December 31, 2022 and 2021, respectively. In the normal course of business, we issue binding purchase orders to subcontractors and equipment suppliers. At December 31, 2022, these open purchase order commitments amount to approximately $29 million. The majority of services to be delivered and inventory or equipment to be received is expected to be satisfied during the first six months of 2023 at which time these commitments will be fulfilled. In January 2022 we reached a settlement agreement with a third party relating to litigation that commenced in 2016 emanating from our construction business which we discontinued at the end of 2016. The lawsuit related to the quality of equipment purchased from third parties on behalf of our customers and installed in a data center expansion project. In 2016, the Company accrued $50,000 which represented our deductible under our insurance policy as the potential exposure over the deductible was unknown. Under the settlement agreement, we agreed to pay the third party $500,000 in full settlement of all claims. $450,000 of this amount was covered under the Company’s insurance policies. The settlement was a recognized subsequent event to fiscal 2021 in accordance with FASB ASC 855, Subsequent Events. Accordingly, as of December 31, 2021, we recorded an additional settlement liability of $450,000 reported in accounts payable and accrued expenses, and a corresponding insurance recovery receivable in Prepaid expenses and other current assets. The loss accrual and insurance recovery are offset within Selling, general and administrative expenses in the accompanying Consolidated Statements of Operations for the year ended December 31, 2021, resulting in a net $0 impact. The settlement amount was paid by our insurance company in February 2022. We are not a party to any material litigation in any court, and we are not aware of any contemplated proceeding by any governmental authority against us. From time to time, we are involved in various legal matters and proceedings concerning matters arising in the ordinary course of business such as employment-related matters. We believe that any potential liability arising out of these matters and proceedings will not have a material adverse effect on our financial position, results of operations or cash flows.

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