(a)

Operating Leases

The Company has entered into lease agreements for office space and research facilities in San Diego County, California; Melbourne, Florida; Scottsdale, Arizona; Taipei, Taiwan; Shenzhen and Jiangsu, China; and Cambridge, United Kingdom. Rent expense was $1.2 million and $1.0 million for the years ended December 31, 2020 and 2019, respectively. The longest lease expires in

2025

. The Company moved into its facility in San Diego, California during the year ended December 31, 2014. In

February 2020

, the Company extended its office space lease agreement in San Diego

through

2025.

The future minimum lease payments required under operating leases in effect at December 31, 2020 were as follows (in thousands):


Year ending:
2021	$	992
2022		721
2023		705
2024		689
2025		615

	$	3,722

(b)

Indemnification

In some agreements to which the Company is a party, the Company has agreed to indemnify the other party for certain matters, including, but not limited to, product liability and intellectual property. To date, there have been no known events or circumstances that have resulted in any material costs related to these indemnification provisions and no liabilities have been recorded in the accompanying financial statements.

(c)

Supply Agreement

In September 2020

the Company entered into a supply agreement with a vendor to purchase up to $2.0 million of inventory during the initial term of the agreement through December 31, 2022. As of December 31, 2020, $0.3

million

had been paid under this supply agreement.

(d)

Employment Agreements

On January 16, 2019, the Company entered into amended and restated employment agreements with Jacob Suen, the Company’s President and Kevin Thill, the Company’s Senior Vice President, Engineering. On August 8, 2019, the Company entered into an amendment to the amended and restated employment agreement with Mr. Suen in connection with his promotion to Chief Executive Officer of the Company. The amended and restated employment agreements provide for an indefinite term and for

at-will

employment. The agreements also set forth each executive’s annual base salary and target bonus opportunity and provide that each executive will be entitled to the benefits provided to employees generally. In April 2020, the Company further amended the employment agreement with Mr. Suen and Mr. Thill to increase the severance payable in the event of a termination without cause or resignation for good reason, other than in connection with a change in control, from 6 months to 12 months.

On January 13, 2020, the Company entered into an employment agreement with David B. Lyle, the Company’s Chief Financial Officer and Secretary. The agreement sets forth Mr. Lyle’s annual base salary, target bonus opportunity and provides that Mr. Lyle will be entitled to the benefits provided to employees generally. The employment agreement provides for an indefinite term and for at-will employment. Pursuant to the employment agreements, if the Company terminates Mr. Lyle’s employment without cause or he resigns for good reason, he is entitled a lump sum cash payment in an amount equal to 12 months of his base salary plus his target bonus (prorated for the portion of the calendar year during which such termination occurs) and continuation of health benefits at the Company’s expense for a period of 12 months following the date of termination.