(14) Commitments and Contingencies Performance Bonds In the normal course of operations, from time to time, the Company arranges for the issuance of various types of surety bonds, such as bid and performance bonds, which are agreements under which the surety company guarantees that the Company will perform in accordance with contractual or legal obligations. As of December 31, 2019, the Company had $9.2 million of surety bonds guaranteed by third parties. Purchase Commitments The Companys inventory purchase commitments typically allow for cancellation of orders 30 days in advance of the required inventory availability date as set by the Company at time of order. However, the Company has agreements with various contract manufacturers which include non-cancellable inventory purchase commitments. The amount of non-cancellable purchase commitments outstanding was $4.3 million as of December 31, 2019. Payment Guarantees Provided by Third Parties and DNI The following table sets forth payment guarantees of the Company's indebtedness and other obligations as of December 31, 2019 that have been provided by third parties and DNI. DNI owns approximately 44.3% of the outstanding shares of our common stock. The amount guaranteed exceeds the principal amounts of outstanding obligations due to collateral requirements by the banks. Guarantor Amount Guaranteed (in thousands) Description of Obligations Guaranteed DNI $ 8,400 Credit facility from Industrial Bank of Korea DNI $ 2,073 Purchasing Card from Industrial Bank of Korea DNI $ 8,400 Credit facility from Korea Development Bank DNI $ 5,182 Borrowings from Korea Development Bank DNI $ 6,000 Credit facility from NongHyup Bank DNI $ 3,700 Borrowings from Export-Import Bank of Korea DNI $ 3,000 Payment Guarantee from Shinhan Bank DNI $ 1,658 Backed Loan from Shinhan Bank PNC Bank N.A. $ 4,649 Performance Bond Citi Bank $ 253 Performance Bond Seoul Guarantee Insurance Co. $ 6,009 Performance Bond, Warranty Bond, etc. (*) Industrial Bank of Korea $ 836 Bank Guarantee Korea Development Bank $ 3,124 Letter of Credit NongHyup Bank $ 2,266 Letter of Credit Woori Bank $ 1,626 Bank Guarantee Shinhan Bank $ 583 Purchasing Card Shinhan Bank $ 683 Payment Guarantee AXA Insurance Company $ 179 Guarantee for flexible retirement program $ 58,621 * The Company is responsible for the warranty liabilities generally for the period of two (2) years regarding major product sales and have contracted surety insurance to cover part of the warranty liabilities. Royalties The Company has certain royalty commitments associated with the shipment and licensing of certain products. Royalty expense is generally based on a dollar amount per unit shipped or a percentage of the underlying revenue and is recorded in cost of revenue. Litigation From time to time, the Company is subject to various legal proceedings, claims and litigation arising in the ordinary course of business. While the outcome of these matters is currently not determinable, the Company records an accrual for legal contingencies that it has determined to be probable to the extent that the amount of the loss can be reasonably estimated. The Company does not expect that the ultimate costs to resolve these matters will have a material adverse effect on its consolidated financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the results of operations and cash flows of the reporting period in which the ruling occurs, or future periods.