12. Commitments and Contingencies Legal Matters On April 13, 2012, the Company entered into a settlement, license and release agreement with Extricom Ltd. ( Extricom ). Pursuant to the agreement with Extricom, the Company and Extricom each agreed to provide one another with perpetual, fully paid up, non-exclusive worldwide licenses to each of our respective patent portfolios as of the settlement date. The Company and Extricom also agreed to release one another of certain claims based on infringement or alleged infringement of certain patent rights; including dismissal of the then-current litigation. In evaluating the accounting treatment for this transaction, the Company identified the following specific items the Company received from the Extricom Agreement: (1) release of past infringement claims and (2) a license to Extricom technology. The Company does not believe the Extricom license will provide future value as the Company does not plan to utilize the underlying technology in any future product development. In addition, the Extricom Agreement released and avoided certain litigation for the Company, but provided no other future benefits to the Company. Therefore, the Company expensed the full $2.4 million in the year ended December 31, 2012. Litigation   The Company is subject to various claims arising in the ordinary course of business. Although no assurance may be given, the Company believes that it is not presently a party to any litigation of which the outcome, if determined adversely, would individually or in the aggregate be reasonably expected to have a material and adverse effect on the business, operating results, cash flows or financial position of the Company. The Company records litigation accruals for legal matters which are both probable and estimable. For legal proceedings for which there is a reasonable possibility of loss (meaning those losses for which the likelihood is more than remote but less than probable), the Company has determined that it does not have material exposure, or it is una