Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Leases

v3.20.4
Note 6 - Leases
9 Months Ended
Dec. 26, 2020
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]
(
6
)
       
L
eases
 
Operating leases
The Company has a non-cancelable operating lease for an office, research and development, engineering, laboratory, storage and/or warehouse uses in Dublin, California for a term of
77
months from
April 1, 2017
through
August 31, 2023.
The Company agreed to pay rent monthly with an aggregate base rent of
$2,384,913
for the period of
77
months, with an annual increase of
$0.05
per rentable square foot for each subsequent year. The lease provided for rent abatement of
$173,079
during the initial
five
months of the lease term, subject to the Company performing the terms and conditions required under the lease, and certain tenant improvements completed at the landlord's expense of
$358,095.
 
The Company also has a non-cancelable operating lease for an office it uses for research and development and engineering in Nashua, New Hampshire for
36
months from
March 1, 2020
through
February 28, 2023.
The Company agreed to pay rent monthly, with an aggregate base rent of
$90,000
for the period of
36
months. This office lease amends and restated in its entirety the Office Lease executed as of
December 28, 2018
for the primary purposes of adding additional office space and extending the term from
January 31, 2022
to
February 28, 2023.
 
Per the terms of the Company's lease agreements, the Company does
not
have any residual value guarantees. In calculating the present value of the lease payments, the Company has elected to utilize its incremental borrowing rate. The Company has elected for facility operating leases to
not
separate each lease component from its associated non-lease components. The building leases includes variable payments (i.e. common area maintenance) which are charged and paid separately from rent based on actual costs incurred and therefore are
not
included in the right-of-use asset and liability but reflected in operating expense in the period incurred.
 
Lease costs
 
For the
nine
months ended (in thousands):
 
     
December 26,
 
 
Classification
 
2020
 
Operating lease costs
Operating expenses
  $
398
 
Total lease costs
  $
398
 
 
 
Other information (in thousands except weighted average amounts):
 
For the nine months ended December 26, 2020
 
Operating leases
 
         
Operating cash used for leases
  $
440
 
Financing cash used for leases
   
 
Weighted-average remaining lease term (years)
   
3.21
 
Weighted-average discount rate
   
6.50
%
 
 
Future lease payments as of
December 26, 2020
were as follows (in thousands):
 
   
Operating leases
 
Remainder 2021
  $
122
 
2022
   
503
 
2023
   
514
 
Thereafter
   
214
 
Total future minimum lease payments
   
1,353
 
Less: imputed interest
   
(109
)
Present value of lease liabilities
  $
1,244