On August 7, 2019, the Board of Directors approved a transition plan for the Company’s China manufacturing operations. In order to optimize the cost structure of the antenna product line, reduce fixed costs in China and increase the Company’s competitiveness, the Company is transitioning high-volume manufacturing from its Tianjin, China facility to contract manufacturers in China and elsewhere. The Company incurred restructuring expenses during the nine months ended September 30, 2020 of $0.1 million for employee severance related to the separation of 12 employees. The severance payments for these employees were paid during the second and third quarters of 2020. Commencing in the third quarter 2019 and through the third quarter 2020, the Company has separated 96 Tianjin employees and incurred total restructuring expense of $0.6 million for severance costs. Severance costs are paid from the Company’s cash in its China bank accounts.

On October 8, 2020, the lease of the premises on which the Company’s China manufacturing operations are conducted expired and the renewal is pending and uncertain. The Company has been notified that the Chinese Party Central Committee and the State Council are accelerating the layout optimization and transformation of the industrial park in which the Company’s leased premises is located and, accordingly, leases and lease extensions for all premises in the industrial park have been suspended and rent collection has been postponed. The Company has not received an indication of the likelihood of approval of its lease extension. As a result of the uncertainty regarding the Tianjin Lease (as defined in Note 10) renewal, the Company is refining and accelerating its transition plan for the manufacturing activities conducted on the leased premises. As part of the acceleration of the transition plan, the Company will reduce additional headcount in Tianjin and incur additional restructuring charges for severance and other non-cash costs. The Company is currently assessing the additional severance cost it will incur in 2021. See Note 10 and the risk factors in Part II, Item 1A for additional information.

In 2016, the Company exited from its Colorado office in order to consolidate facility space and in the second quarter 2017 signed a sublease for the office space. The lease and the sublease terminated in October 2020.

The following table summarizes the restructuring activity during the nine months ended September 30, 2020 and the status of the reserves at September 30, 2020:

				Lease
	Severance			Termination			Total
Balance at December 31, 2019	$	12		$	33		$	45
Restructuring expense		124			0			124
Payments made		(136	)		(106	)		(242	)
Payments received		0			77			77
Balance at September 30, 2020	$	0		$	4		$	4

The restructuring liability is recorded in accrued liabilities on the condensed consolidated balance sheet at September 30, 2020 and December 31, 2019.

The Company allows its major distributors and certain other customers to return unused product under specified terms and conditions. The Company accrues for product returns based on historical sales and return trends. The refund liability related to estimated sales

returns was $0.1 million at September 30, 2020 and December 31, 2019, respectively, and is included within accrued liabilities on the accompanying condensed consolidated balance sheets.

The Company offers repair and replacement warranties of up to five years for certain antenna products and test & measurement products. The Company’s warranty reserve is based on historical sales and costs of repair and replacement trends. The warranty reserve was $0.3 million at September 30, 2020 and $0.4 million at September 30, 2019, respectively, and is included in accrued liabilities in the accompanying condensed consolidated balance sheets.

The following table summarizes the warranty activity during the nine months ended September 30, 2020 and 2019:

	Nine Months Ended September 30,
	2020			2019
Beginning balance	$	444		$	339
Provisions for warranties	$	9			207
Consumption of reserves	$	(203	)		(146	)
Ending balance	$	250		$	400