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Commitments and Contingencies
12 Months Ended
Dec. 31, 2023
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

16. Commitments and Contingencies

The following table summarizes the Company’s principal contractual commitments, excluding operating leases, as of December 31, 2023 (in thousands):

 

 

Purchase
Commitments

 

 

Other
Contractual
Commitments

 

 

Total

 

2024

 

$

29,030

 

 

$

124

 

 

$

29,154

 

2025

 

 

4,824

 

 

 

19

 

 

 

4,843

 

2026

 

 

18

 

 

 

7

 

 

 

25

 

Thereafter

 

 

 

 

 

1

 

 

 

1

 

Total

 

$

33,872

 

 

$

151

 

 

$

34,023

 

 

Purchase commitments for inventories are highly dependent upon forecasts of customer demand. Due to the uncertainty in demand from its customers, the Company may have to change, reschedule, or cancel purchases or purchase orders from its suppliers. These changes may lead to vendor cancellation charges on these purchases or contractual commitments.

 

The following table summarizes the Company’s warranty accrual activity during the years ended December 31, 2023 and 2022 (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

Balance at beginning of period

 

$

345

 

 

$

377

 

Charged (credited) to costs and expenses

 

 

56

 

 

 

(24

)

Cost of warranty claims

 

 

(23

)

 

 

(8

)

Balance at end of period

 

$

378

 

 

$

345

 

The Company provides warranties on certain product sales for periods ranging from 12 to 36 months, and allowances for estimated warranty costs are recorded during the period of sale. The determination of such allowances requires the Company to make estimates of product return rates and expected costs to repair or to replace the products under warranty. The Company currently establishes warranty reserves based on historical warranty costs for each product line combined with liability estimates based on the prior 12 months’ sales activities. If actual return rates and/or repair and replacement costs differ significantly from the Company’s estimates, adjustments to recognize additional cost of sales may be required in future periods. Historically the warranty accrual and the expense amounts have been immaterial.