Commitments and Contingencies Operating Leases The Company has entered into operating leases for certain office space and equipment, some of which contain renewal options. Estimated future lease payments under all non-cancelable operating leases with terms in excess of one year, including taxes and service fees, are as follows (in thousands): OperatingLeases NOT REVIEWED Year ending December 31: 2016 (remainder of the year) $ 272 2017 1,470 2018 1,066 2019 597 2020 and thereafter 4,237 Total minimum lease payments $ 7,642 Warranties The Company accrues for warranty costs based on historical trends for the expected material and labor costs to provide warranty services. Warranty periods are generally up to two years from the date of shipment. The following table reconciles changes in the Companys accrued warranties and related costs for the nine months ended September30, 2016 and 2015 (in thousands): Nine MonthsEnded September 30, 2016 2015 NOT REVIEWED Beginning balance $ 1,093 $ 389 Charged to cost of revenue 703 289 Claims and settlements (805 ) (297 ) Ending balance $ 991 $ 381 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 September30, 2016 , the Company did not have any outstanding surety bonds. Purchase Commitments The Company has agreements with various contract manufacturers which include non-cancellable inventory 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. The amount of non-cancellable purchase commitments outstanding, net of reserve, was $5.5 million as of September30, 2016 . Payment Guarantees Provided by Third Parties The following table sets forth th