Note 13 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

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.  COMMITMENTS AND CONTINGENCIES

Lease Obligations

As of

December

31,

2016,

future minimum payments under the non-cancelable operating leases were as follows (in thousands):

2017	$	969
2018		368
2019		249
2020		114
Total	$	1,700

The Company leases warehouse space, sales and marketing, and research and development offices in China, Japan, Korea, the United States and Europe. Certain of the Company’s facility leases provide for periodic rent increases. Rent expense for the years ended

December

31,

2016,

2015

and

2014

was

$1.7

million,

$1.8

million and

$1.5

million, respectively.

Warranty and Indemnification Provisions

The changes in warranty reserves are as follows (in thousands):

	Year Ended December 31,
	2016			2015			2014
Balance at beginning of period	$	289		$	240		$	451
Warranty provision for product sales		1,102			333			282
Settlements made		(68	)		(158	)		(42	)
Unused warranty provision		(293	)		(126	)		(451	)
Balance at end of period	$	1,030		$	289		$	240

The Company provides indemnification agreements to certain direct or indirect customers. The Company agrees to reimburse these parties for any damages, costs and expenses incurred by them as a result of legal actions taken against them by

third

parties for infringing upon their intellectual property rights as a result of using the Company’s products and technologies. These indemnification provisions are varied in their scope and are subject to certain terms, conditions, limitations and exclusions. In addition, the Company has entered into indemnification agreements with its directors and officers.

It is not possible to predict the maximum potential amount of future payments under these agreements due to the limited history of indemnification claims and the unique facts and circumstances involved in each particular agreement. There were

no

indemnification liabilities incurred in any of the periods presented. However, there can be no assurances that the Company will not incur any financial liabilities in the future as a result of these obligations.