NOTE

—COMMITMENTS AND CONTINGENCIES

Facility Leases

As of

December 31,

2017,

the Company was committed to minimum lease payments for facilities and other leased assets under long-term non-cancelable operating leases as follows (in thousands):

Year Ending December 31,	Amount
201 8	$	2,891
201 9		2,871
2020		2,815
2021		2,515
202 2		2,495
2023 and thereafter		214
Future minimum lease payments	$	13,801

Gross rent expense recognized in the years ended

December 31, 2017,

2016 and 2015 was $1.5 million, $1.6 million and $1.5 million, respectively.

Vehicle Leases

As of

December 31,

201

the Company was committed to future minimum lease payments for vehicles leased under long-term non-cancelable capital leases as follows (in thousands):

Year Ending December 31,	Amount
201 8	$	472
201 9		381
20 20		104
Future minimum lease payments	$	957

Purchase Commitments

The Company maintains certain open inventory purchase commitments with its suppliers

to ensure a smooth and continuous supply for key components. The Company’s liability in these purchase commitments is generally restricted to a forecasted time-horizon as agreed between the parties. These forecasted time-horizons can vary among different suppliers. The Company’s open inventory purchase commitments with its suppliers were

not

significant at

December 31, 2017

Indemnifications

In the normal course of business, the Company enters into agreements that contain a variety of representations, w

arranties, and indemnification obligations. For example, the Company has entered into indemnification agreements with each of its directors and executive officers and certain key employees. The Company’s exposure under its various indemnification obligations is unknown and

not

reasonably estimable as they involve future claims that

may

be made against the Company. As such, the Company has

not

accrued any amounts for such obligations.

Contingencies

The Company is named from time to time as a party to

other legal proceeds product liability, commercial disputes, employee disputes, and contractual lawsuits in the normal course of business. A liability and related charge are recorded to earnings in the Company’s consolidated financial statements for legal contingencies when the loss is considered probable and the amount can be reasonably estimated. The assessment is re-evaluated each accounting period and is based on all available information, including discussion with outside legal counsel. If a reasonable estimate of a known or probable loss cannot be made, but a range of probable losses can be estimated, the low-end of the range of losses is recognized if

amount within the range is a better estimate than any other. If a material loss is reasonably possible, but

not

probable and can be reasonably estimated, the estimated loss or range of loss is disclosed in the notes to the consolidated financial statements. The Company expenses legal fees as incurred. As of

December 31, 2017

and

2016,

the Company had accrued

$91,000

and

$138,

000,

respectively, related to

various pending contractual and product liability lawsuits.

The Company does

not

believe that a material loss in excess of accrued amounts is reasonably possible.

Certain of these lawsuits and claims are described in further detail below. It is

not

possible to predict what the outcome of these matters will

be and the Company cannot guarantee that any resolution will be reached on commercially reasonable terms, if at all.

January, 2018,

the Company and Nicholas Brown were served with a complaint by Cynosure, Inc. (Plaintiff) alleging

that Nicholas Brown working for the Company violates certain non-compete provisions of an agreement he was a party to while employed by Plaintiff. The Plaintiff alleges causes of action for breach of contract by Nicholas Brown and intentional interference with contractual relations by the Company.

Nicholas Brown was hired by the Company as a sales representative in the Boston area in

November 2017.

Prior to being hired, he worked for the Plaintiff in Boston, also as a sales representative. The Company believes the non-compete

provisions of his agreement are unenforceable as a matter of Massachusetts law.

The Company has engaged counsel and

intends to defend this matter vigorously. As of

December 31, 2017,

based on available information regarding this matter, the Company is unable to reasonably assess the ultimate outcome of this case or determine an estimate