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Commitments and Contingencies
6 Months Ended
Jun. 30, 2022
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 8. Commitments and Contingencies

Purchase Obligation

LENSAR is a party to various supply agreements for the manufacture and supply of certain components. The supply agreements commit LENSAR to a minimum purchase obligation of approximately $7,815 by December 31, 2023. LENSAR expects to meet these requirements.

Royalty and Milestone Payments

In connection with the acquisition of certain intellectual property, the Company paid a $1,200 milestone payment, which was contingent upon regulatory clearance of the ALLY System. The Company could also be required to make an additional milestone payment in the amount of $1,200, which is contingent upon the commercialization of the ALLY System. The payment is considered probable and reasonably estimable, as such the contingent consideration is recorded as a current liability on the Company’s balance sheet. In addition, the Company acquired certain intellectual property, which would result in additional royalty payments at a rate of 3% of certain revenue generated from the ALLY System.

Legal Matters

The medical device market in which LENSAR participates is largely technology driven. As a result, intellectual property rights, particularly patents and trade secrets, play a significant role in product development and differentiation. The Company makes provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Management believes that there are currently no claims or legal actions that would reasonably be expected to have a material adverse effect on the Company’s results of operations, financial condition or cash flows.