Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Leases

Note 6 - Leases
9 Months Ended
Dec. 25, 2021
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]

Note 6.       Leases


Operating leases


The Company has a non-cancelable operating lease for office, research and development, engineering, laboratory, storage and/or warehouse uses in Dublin, California for 77 months from April 1, 2017 through August 31, 2023. The Company agreed to pay 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.


In December 2018, the Company entered into a lease agreement for an additional 1,200 square foot facility for certain engineering personnel located in Nashua, New Hampshire, which began on February 1, 2019, and expires on January 31, 2022. Effective March 1, 2020, we amended and replaced in its entirety the original Nashua lease agreement to increase the facility size to 2,400 square feet and extend its expiration to February 28, 2023.The monthly payment for FY22 and FY23 under the amended agreement is $2,500.


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 lease 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):


Lease Costs




December 25, 2021


Operating lease costs


Operating expenses

  $ 397  


Other information (in thousands):


Nine Month Period Ended December 25, 2021


Operating leases


Operating cash used for leases

  $ 450  


Future lease payments as of December 25, 2021, were as follows (in thousands):


Fiscal Year


Operating leases


2022 (remaining 3 months)

  $ 126  





Total future minimum lease payments


Less: imputed interest

    (46 )

Present value of lease liabilities

  $ 804