COMMITMENTS AND CONTINGENCIES - Note 12

12 Months Ended

Dec. 31, 2018

Commitments And Contingencies Disclosure Footnote

Commitments and Contingencies - Note 12

12. COMMITMENTS AND CONTINGENCIES

Litigation

During 2018, we settled all related claims with Asia Optical relating to its previously filed complaint for arbitration for less than related reserves.

We are subject to various claims and pending or threatened lawsuits in the normal course of business. We are not currently party to any legal proceedings that management believes are reasonably possible to have a material adverse effect on our financial position, results of operations or cash flows.

Purchase commitments

At December 31, 2018, we have $6.2 million in open purchase obligations that represent commitments to purchase inventory, materials, capital equipment, and other goods used in the normal operation of our business.

Lease commitments

We lease our office space and certain equipment under capital and operating leases with initial or remaining terms in excess of one year. Future minimum rental commitments under capital and operating leases for years ending December 31, are as follows (in thousands):

		Capital		Operating
Years Ended December 31,		leases		leases
2019	$	27	$	654
2020		27		656
2021		9		676
2022		-		696
2023		-		175
Thereafter		-		-
Total minimum lease payments		63	$	2,857
Less: amount representing interest		(9)
Present value of capital lease obligations		54
Less: current portion		(21)
Long-term portion at December 31, 2018	$	33

Net rent expense was $834,000 in 2018 and $531,000 in 2017.