Note

13.

Commitments and Contingencies

Operating Leases

The Company leases space for operations in United States, Japan and France. Future minimum lease commitments under the Company’s facility operating leases as of

September 30, 2018

were as follows (in thousands):

Year Ending December 31,	Amount
2018	$	745
2019		2,981
2020		2,922
2021		2,544
2022		2,496
2023 and beyond		214
Total future minimum lease payments	$	11,902

In addition to the above facility leases, the Company also routinely leases automobiles for certain sales and field service employees under capital leases. The remaining committed lease payments as of

September 30, 2018

was

$1.15

million.

Contingencies

The Company is named from time to time as a party to other legal proceedings, product liability, commercial disputes, employee disputes, and contractual lawsuits in the ordinary course of business. These matters are subject to many uncertainties and outcomes that are

not

predictable and that

may

not

be known for extended periods of time. 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

September 30, 2018

and

December 31, 2017,

the Company had accrued

$67,000

and

$91,000,

respectively related to various pending commercial and product liability lawsuits. The Company does

not

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