6. Commitments and Contingencies Operating Commitments The Company rents its office and laboratory facilities under operating leases which expire at various dates through June 2015. The Company has an option to extend the lease on its Mountain View, California facility until approximately November 30, 2019. As of September 30, 2012, future minimum payments under the leases are as follows (in thousands): Periods ended December 31, Future Minimum Lease Payments 2012 (remainder of year) $ 514 2013 2,093 2014 1,983 2015 77 Total $ 4,667 Warranties The Company generally provides one year of post-contract customer service on the sale of its systems. Post-contract customer service revenue is recognized ratably over the term of the service period and associated expenses are charged to cost of revenues as incurred. The Company provides a limited warranty on the sale of catheters and records a warranty reserve at the time of sale to cover the estimated warranty costs. The Company s warranty obligation may be impacted by product failure rates, material usage and service costs associated with its warranty obligations. The Company periodically evaluates and adjusts the warranty reserve to the extent actual warranty expense differs from the original estimates. Movement in the warranty liability was as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2012 2011 2012 2011 Balance at beginning of period $ 9 $ 14 $ 12 $ 15 Accruals for warranties issued during the period 60 30 95 119 Warranty costs incurred during the period (60 ) (29 ) (98 ) (119 ) Balance at end of period $ 9 $ 15 $ 9 $ 15 Legal Proceedings Following the Company s October 19, 2009 announcement that it would restate certain of its financial statements, a securities class action lawsuit was filed on October 23, 2009 in the United States District Court for the Northern District of California, naming the Company and certain of its now former officers. Curry v. Hansen Medical, Inc. et al., Case No. 09-05094. The complaint assert