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Commitments and Contingencies
12 Months Ended
Dec. 31, 2019
Commitments and Contingencies [Abstract]  
Commitments and Contingencies

Note 15 – Commitments and Contingencies 

 

Equipment Purchase Commitments 

 

The Company has committed to equipment purchases of approximately $0.3 million at December 31, 2019.



Employee benefit plans

 

The Company’s U.S. employees participate in a defined contribution plan. Under the provisions of the plan, an employee is fully vested with respect to Company contributions after five years of service. The Company matches employee contributions of 50% up to a maximum of 3% of qualified compensation. The Company’s contributions were $0.1 million for the year ended December 31, 2019 and there were no Company contributions for the years ended December 31, 2018.



Change in Control agreements



The Company entered into change in control agreements with certain of its executive officers, non-executive officers and managers. The agreements specify various employment-related matters, including annual compensation, performance incentive bonuses, and severance benefits in the event of termination with or without cause. 



Litigation



From time to time, the Company is subject to various legal proceedings and claims that arise in the ordinary course of business. In March 2019, we received a demand letter seeking payment of $0.9 million of outstanding invoices relating to purchased inventory from Suga Electronics Limited, or Suga, a contract manufacturer located in China, which manufactured product sold by their consumer night vision business. We responded to the demand letter, and requested that Suga provide substantiation of purchased inventory.



During September and October 2019, the Company held discussions with Suga to attempt to reach a settlement; however, in November 2019 the Company received a formal request for arbitration which Suga filed with the International Chamber of Commerce or ICC. The Company retained local counsel in Hong Kong to represent it before the ICC and in December 2019 filed an answer to Suga’s request for arbitration including a counterclaim seeking repayment of amounts previously paid to Suga. The parties are currently awaiting the appointment of an arbitrator by the ICC.



As disclosed, during the quarter ended June 30, 2018, we made a decision to exit the consumer night vision business and accrued approximately $1.0 million related to invoices received for inventory purchased by Suga in anticipation of future production. While we believe that we have adequately accrued for the losses and are in discussions to resolve related claims by the contract manufacturers, there is the risk that additional losses or litigation related expenses may be incurred above the amounts accrued for as of December 31, 2019, if we fail to resolve these claims in a timely and/or favorable manner.