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Commitments and Contingencies
6 Months Ended
Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
16.
Commitments and Contingencies

In accordance with Accounting Standards Codification (“ASC”) Topic 450, Contingencies, the Company accrues anticipated costs of settlement, damages or other costs to the extent specific losses are probable and reasonably estimable.

Litigation and Related Contingencies

Lawsuits, claims and proceedings of a nature considered normal to its businesses may be pending from time to time against the Company. Third parties might allege that the Company or its collaborators are infringing their patent rights or that the Company is otherwise violating their intellectual property rights. The Company believes the outcome of pending proceedings, individually and in the aggregate, will not have a material impact on the Company’s consolidated financial statements.

In September 2019, Luxendo GmbH (“Luxendo”), a subsidiary of Bruker Corporation, was sued in Germany by Carl Zeiss Microscopy GmbH, a subsidiary of Carl Zeiss AG (“Zeiss”), for infringement of a registered German utility model. After the utility model was canceled by the German Patent and Trademark Office in 2021, Zeiss withdrew its infringement action at the end of 2022 and the proceedings were terminated. However, a parallel European patent application, from which the utility model was derived, is still pending in the European Patent Office (“EPO”). Luxendo filed third-party observations in the proceedings concerning the grant of the patent application and, in March 2022, the EPO communicated to the applicant that Luxendo's observations had merit, confirming the same position in October 2022. Following a hearing in April 2023, the EPO confirmed that the applicant’s main and certain auxiliary requests are invalid, but indicated that it intends to grant the patent in a combination of two original claims. If the applicant files translations of the claims and pays applicable fees before October 4, 2023, then the patent will likely be granted in the fourth quarter of 2023. Luxendo is presently unable to predict the EPO's final decision on the patent application or what steps, if any, Zeiss may take following that decision.

In addition, the Company is subject to regulation by national, state and local government agencies in the United States and other countries in which the Company operates. From time to time, the Company is the subject of governmental investigations often involving regulatory, marketing and other business practices. These governmental investigations may result in the commencement of civil and criminal proceedings, fines, penalties and administrative remedies which could have a material adverse effect on the Company's financial position, results of operations and/or liquidity.

As of June 30, 2023 and December 31, 2022, the Company has not recorded any material accruals for potential contingencies.