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Commitments and Contingencies | 12 Months Ended
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Jan. 02, 2016
Commitments And Contingencies Disclosure [Abstract] |
Commitments and Contingencies | 9. Commitments and Contingencies Lease Agreements. We lease our operating facilities in Mountain View, California, under a non-cancelable operating lease that was initially scheduled to expire in February 28, 2017. In February 2016, we executed an agreement to extend the term of the lease through February 28, 2019. See Note 15 – Subsequent Events. There are no remaining options to extend or renew the terms of this lease. Rent expense for fiscal years 2015, 2014 and 2013 were $0.8 million, $0.6 million and $0.6 million, respectively. Future minimum lease payments under current operating leases as of January 2, 2016 are summarized as follows (in thousands):
Fiscal Year |  | Operating Lease Payments |
2016 |  | $ | 989 |
2017 |  |  | 1,033 |
2018 |  |  | 1,019 |
2019 |  |  | 169 |
Total future minimum lease payments |  | $ | 3,210 |
Manufacture and Supply Agreement. In January 2014, the Company and Peregrine Surgical Ltd. amended the manufacture, supply and distributor agreement that was originally entered into in April 2013. The amendment modified the term and termination period from April 1, 2013 through April 1, 2017 to January 1, 2014 through January 1, 2018. All other terms under the original agreement remained in force. Under the agreement, we have a minimum commitment to purchase annually $750 thousand of certain components and ophthalmic instrumentation. Future minimum payments for manufacture and supply commitments as of January 2, 2016 are summarized as follows (in thousands):
Fiscal Year |  | Contract Manufacturing and Supply Commitments |
2016 |  | $ | 10,306 |
2017 |  |  | 4,575 |
Total contract manufacturing and supply commitments |  | $ | 14,881 |
License Agreements. We are obligated to pay royalties equivalent to 5% of sales on certain products under certain license agreements with termination dates as early as the end of 2018 and as late as the end of 2021. Royalty expense, charged to cost of revenues, was approximately $0.1 million, $0.2 million, and $0.1 million for the fiscal years 2015, 2014 and 2013, respectively. Indemnification Arrangements. We enter into standard indemnification arrangements in our ordinary course of business. Pursuant to these arrangements, we indemnify, hold harmless, and agree to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, generally our business partners or customers, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third-party with respect to our products. The term of these indemnification agreements is generally perpetual anytime after the execution of the agreement. The maximum potential amount of future payments we could be required to make under these agreements is not determinable. We have never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, we believe the estimated fair value of these agreements is minimal. We have entered into indemnification agreements with our directors and officers that may require us to indemnify our directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of a culpable nature; to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified; and to make good faith determination whether or not it is practicable for us to obtain directors and officers insurance. We currently have directors and officers liability insurance. In general, management believes that claims which are pending or known to be threatened, will not have a material adverse effect on our financial position or results of operations and are adequately covered by our liability insurance. However, it is possible that cash flows or results of operations could be materially affected in any particular period by the unfavorable resolution of one of more of these contingencies or because of the diversion of management’s attention and the incurrence of significant expenses.

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