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Commitments and Contingencies
 9 Months Ended
Sep. 30, 2025
Commitments and contingencies (Note 16)  
Commitments and Contingencies

16. Commitments and Contingencies

 

Employment Agreements

 

The Company has employment agreements with certain executives that set forth compensation levels and provide for severance payments in certain instances.

 

Litigation

 

The Company is involved in various legal proceedings arising in the ordinary course of business. Management does not believe that the outcome of these matters, individually or in the aggregate, will have a material adverse effect on the Company’s financial position, results of operations, or cash flow.

 

Property Theft Matter

 

During the third quarter of 2025, the Company identified a theft of certain assets resulting in an estimated loss of approximately $320,000. The Company recognized this amount as a charge to cost of revenues in the third quarter of 2025, representing management’s best estimate of the probable loss. Potential Insurance recovery has not been recorded, as the likelihood of recovery does not meet the probable criteria at this time.

 

The matter has been investigated internally and resolved operationally, though law enforcement and Insurance investigations will be ongoing.

 

While the Company believes the recorded amount reflects the best estimate at this time, there remains a possibility of additional exposure related to this matter. Management does not currently expect any additional loss, if incurred, to be material to the consolidated financial statements.

 

The Company continues to monitor the matter and will adjust its estimates as new information becomes available.