v3.24.3
Commitments and Contingencies
9 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

9. Commitments and Contingencies

Product Warranties

Changes in our assurance-type warranty obligations were as follows (in thousands):

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of the period

 

$

5,176

 

 

$

4,743

 

 

$

7,155

 

 

$

3,685

 

Liabilities assumed from business acquisition

 

 

2,314

 

 

 

—

 

 

 

2,314

 

 

 

—

 

Warranty provision related to products shipped

 

 

685

 

 

 

2,419

 

 

 

1,979

 

 

 

6,439

 

Deductions for warranty claims processed

 

 

(1,135

)

 

 

(1,514

)

 

 

(4,408

)

 

 

(4,476

)

End of period

 

$

7,040

 

 

$

5,648

 

 

$

7,040

 

 

$

5,648

 

Unconditional Purchase Obligations

In the normal course of business, we enter into various purchase commitments for goods or services. Our long-term non-cancelable purchase commitments consist primarily of multi-year contractual arrangements relating to subscriptions for cloud computing hosting arrangements for applications used in R&D. The total long-term non-cancelable purchase commitments as of September 30, 2024 was as follows (in thousands):

 

 

Amounts

 

 

 

 

 

Remainder of 2024

 

$

—

 

2025

 

 

50

 

2026

 

 

100

 

2027

 

 

50

 

2028

 

 

—

 

Thereafter

 

 

—

 

Total

 

$

200

 

Our total non-cancelable long term purchase commitments outstanding as of December 31, 2023 was $1.5 million.

Letters of Credit

There were no letters of credit outstanding as of September 30, 2024 and December 31, 2023. No amounts have been drawn upon the letters of credit for all periods presented.

Legal Proceedings

We may from time to time be involved in various claims and legal proceedings of a character normally incident to the ordinary course of business. Litigation can be expensive and disruptive to normal business operations, and the results of complex legal proceedings are difficult to predict, and our view of these matters may change in the future as the litigation and events related thereto unfold. We expense legal fees as incurred and we record a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Based on currently available information, we believe that existing claims or proceedings are not likely to have a material adverse effect on our financial position, or the outcome of these matters is currently not determinable. An unfavorable outcome to any legal matter, if material, could have an adverse effect on our operations or financial position, liquidity of results of operations.

Indemnification

In the ordinary course of business, we may provide indemnifications of varying scope and terms with respect to certain transactions. We have entered into indemnification agreements with directors and certain officers and employees that will require Corsair, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. No demands have been made upon Corsair to provide indemnification under such agreements, and thus, there are no claims that we are aware of that could have a material effect on our condensed consolidated balance sheets, statements of operations, or statements of cash flows. We currently have directors’ and officers’ insurance.