10. Commitments and Contingencies Two purported securities class actions were filed in the United States District Court for the Northern District of California against the Company and two of its officers, John Barbour and Raymond L. Arthur on January 23 and February 2, 2015, respectively. A stockholder derivative action was filed on February 5, 2015, in the Superior Court of California, County of Alameda, purportedly on behalf of the Company against current members of the Company's Board. See Note 11 for additional information. In addition, from time to time, the Company is subject to legal proceedings and claims in the ordinary course of business, including claims of alleged infringement of patents and other intellectual property rights, claims related to breach of contract, employment disputes and a variety of other matters. The Company records a liability when the Company believes that it is both probable that a loss will be incurred, and the amount can be reasonably estimated. In the opinion of management, based on current knowledge, it is not reasonably possible that any of the pending legal proceedings or claims will have a material adverse impact on the Company's financial position, results of operations or cash flows. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense costs, diversion of management resources and other factors. In addition, although management considers the likelihood of such an outcome to be remote, if one or more of these legal matters were resolved against the Company in a particular reporting period for amounts in excess of management's expectations, the Company's consolidated financial statements of the same reporting period could be materially adversely affected. As of December 31, 2014, the Company had commitments to purchase inventory under normal supply arrangements totaling approximately $ 27,822 and had no outstanding off-balance sheet arrangements.