10 . Commitments and Contingencies Litigation From time to time, we are involved in certain legal actions arising in the ordinary course of business. In managements opinion, the outcomes of such actions, either individually or in the aggregate, are not expected to have a material adverse effect on our future financial position or results of operations. On February 6, 2017, DNA Genotek, Inc. (DNAG) entered into a settlement and license agreement (the Settlement Agreement) in order to settle certain patent infringement and breach of contract litigation against Ancestry.comDNA, LLC (Ancestry) and its contract manufacturer. This litigation was related to a saliva DNA collection device sold by Ancestry that was similar to products sold by DNAG. Under the terms of the Settlement Agreement, DNAG and Ancestry agreed to certain procedures for considering whether future versions of Ancestrys saliva DNA collection product are covered by the DNAG patents licensed to Ancestry (the Licensed Patents) and thus subject to ongoing royalties under the Settlement Agreement. We are currently in a dispute with Ancestry regarding whether yet-to-be launched Ancestry products are covered by the Licensed Patents. In March 2019, Ancestry filed a Dispute Notice and Request for Arbitration (the Notice) with an alternative dispute resolution services provider in order to initiate a binding arbitration proceeding pursuant to the Settlement Agreement. DNAG has denied the allegations contained in the Notice and has asserted that the potential new Ancestry products are covered by the Licensed Patents and would be subject to ongoing royalties if such products are commercialized by Ancestry. This proceeding is still in the early stages, and a full panel of arbitrators has not yet been appointed. The arbitration proceeding is expected to be completed within six months after the arbitrators are empaneled. Although we are confident in our position and intend to defend this matter vigorously, we cannot predict with certainty whether we will ultimately prevail in this matter and whether we will continue to receive royalties from Ancestry in the future.