Company: PAMT
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001437749-25-007273
Chunk: 194

Company: PAMT CORP
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1A
Chunk 194
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2023 and 2022, respectively.

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    16.  COMMITMENTS AND CONTINGENCIES 

   We are involved in certain claims and pending litigation arising from the ordinary conduct of business. We also provide accruals for claims within our self-insured retention amounts. Since  September 1, 2020, we have been self-insured for certain layers of auto liability claims in excess of $2.0 million. We currently specifically reserve for claims that are expected to exceed $2.0 million when fully developed, based on the facts and circumstances of those claims. Based on our knowledge of the facts, and in certain cases, opinions of outside counsel, we believe the resolution of such claims and pending litigation will not have a material effect on our financial position, results of operations or cash flows. However, if we experience claims that are not covered by our insurance or that exceed our estimated claim reserve, it could increase the volatility of our earnings and have a materially adverse effect on our financial condition, results of operations or cash flows.

    17.  LEASES 

   Right-of-Use Leases
    
   The Company was party to operating leases that included initial terms ranging from three to five years. The initial terms of these leases have expired, and the leases are now subject to terms not exceeding one year. In accordance with the provisions of ASC Topic 842, because all of our leased properties are currently subject to leases not exceeding one year, we do not recognize any right-of-use assets or corresponding operating lease liability as of  December 31, 2024.
    
   Cash Flows
    
   No new right-of-use assets were recognized as non-cash asset additions that resulted from new operating lease liabilities during the years ended  December 31, 2024 and  December 31, 2023, respectively. Cash paid for amounts included in the present value of right-of-use lease liabilities was $0.1 and $0.3 million during the years ended  December 31, 2024 and  December 31, 2023, respectively, and is included in operating cash flows.
    
   Cash Paid for Operating Leases

       Twelve Months Ended  
   December 31,  
   2024    2023  
   (in thousands)  
 Right-of-Use leases  $114  $330 
 Short-term leases (1)   3,424   3