Note 10 - Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Text Block]

10.

COMMITMENTS AND CONTINGENCIES

a. Purchase Commitments

As of

June 30, 2019,

we have made commitments to purchase approximately

$1,418

of production machinery and equipment.

b. Product Warranties

We estimate future warranty costs to be incurred for product failure rates, material usage and service costs in the development of our warranty obligations. Estimated future costs are based on actual past experience and are generally estimated as a percentage of sales over the warranty period. Changes in our product warranty liability during the

first

six

months of

2019

and

2018

were as follows:

	Six -Month P eriod E nded
	June 30, 2019			July 1, 2018
Accrued warranty obligations – beginning	$	95		$	149
Assumed warranty obligations – SWE		145			-
Accruals for warranties issued		18			7
Settlements made		(22	)		(5	)
Accrued warranty obligations – ending	$	236		$	151

c. Contingencies and Legal Matters

We are subject to legal proceedings and claims that arise from time to time in the normal course of business. We believe that the final disposition of any such matters will

not

have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, recognizing that legal matters are subject to inherent uncertainties, and there exists the possibility that ultimate resolution of these matters could have a material adverse impact on the Company’s financial position and results of operations in the period in which any such effects are recorded. We are

not

aware of any such situations at this time.