COMMITMENTS AND CONTINGENCIES

Operating Lease Agreements — The Company has several operating leases with unrelated parties, primarily for land, plant and office spaces in Taiwan, which were including cancellable and noncancellable and which expire at various dates between February 2018 and December 2020. As of August 31, 2016 and 2015, the Company maintained outstanding deposits for these leases in the amount of $83 thousand and $87 thousand, respectively, which are included other long‑term assets in the accompanying consolidated balance sheets. Lease expense related to these operating leases was $462 thousand and $545 thousand for the years ended August 31, 2016 and 2015, respectively. Lease expense is recognized on a straight‑line basis over the term of the lease.

The aggregate future noncancellable minimum rental payments for the Company’s operating leases as of August 31, 2016 consist of the following (in thousands):


	Operating
Years Ending August 31,	Leases
2017	$	487
2018		289
2019		120
2020		102
2021		34
Thereafter		—
Total	$	1,032

Purchase Obligations — The Company had purchase commitments for inventory, property, plant and equipment in the amount of $1.5 million and $2.6 million as of August 31, 2016 and 2015, respectively.

Litigation — The Company is directly or indirectly involved from time to time in various claims or legal proceedings arising in the ordinary course of business. The Company recognizes a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. There is significant judgment required in assessing both the likelihood of an unfavorable outcome and whether the amount of loss, if any, can be reasonably estimated. As of August 31, 2016, there was no pending or threatened litigation that could have a material impact on the Company’s financial position, results of operations or cash flows.