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Commitments and Contingencies
 6 Months Ended
Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

8.            Commitments and Contingencies

 

Commitments:

 

Leases

The Company and its subsidiary lease certain manufacturing, laboratory and office facilities. The lease provides for the Company to pay its allocated share of insurance, taxes, maintenance and other costs of the leased property. Under the May 2, 2014 agreement, MTI Instruments has an option to terminate the lease as of December 1, 2016. If MTI Instruments terminates the lease prior to November 2019, MTI Instruments is required to reimburse the landlord for all unamortized costs that the landlord incurred for renovations to the leased space in conjunction with the lease renewal.

 

Future minimum rental payments required under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of June 30, 2015 are (dollars in thousands): $111 remaining in 2015, $222 in 2016, $224 in 2017, $218 in 2018 and $204 in 2019.

 

Warranties

 

Product warranty liabilities are included in “Accrued liabilities” in the Condensed Consolidated Balance Sheets. Below is a reconciliation of changes in product warranty liabilities:

 

(Dollars in thousands)   Six Months Ended 
June 30,		  
    2015     2014  
Balance, January 1   $ 17     $ 17  
Accruals for warranties issued     9       10  
Settlements made (in cash or in kind)     (7 )     (6 )
Balance, end of period   $ 19     $ 21  

 

Employment Agreement

 

The Company has an employment agreement with one employee that provides certain payments upon termination of employment under certain circumstances, as defined in the agreement. As of June 30, 2015, the Company’s potential minimum obligation to this employee was approximately $76 thousand.

 

Contingencies:

 

Legal

 

We are subject to legal proceedings, claims and liabilities which arise in the ordinary course of business. We accrue for losses associated with legal claims when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change. Legal fees are charged to expense as they are incurred.