Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.22.2
Leases
3 Months Ended
Jun. 25, 2022
Leases [Abstract]  
Leases

Note 8. Leases

Operating leases

The Company has a non-cancelable operating lease for office, research and development, engineering, laboratory, storage and 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. 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 fiscal year 2022 and fiscal year 2023 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 three months ended (In thousands):

 

Lease Costs

 

Classification

 

June 25, 2022

 

 

June 26, 2021

 

Operating lease costs

 

Operating expenses

 

$

144

 

 

$

133

 

 

Other information for the three months ended (In thousands):

 

 

 

 

June 25, 2022

 

 

June 26, 2021

 

Operating cash used for leases

 

 

 

$

173

 

 

$

150

 

 

Future lease payments as of June 26, 2022, were as follows (In thousands):

 

Fiscal Year

 

Operating leases

 

2023 (remaining 9 months)

 

$

385

 

2024

 

 

209

 

Total future minimum lease payments

 

 

594

 

Less: imputed interest

 

 

(23

)

Present value of lease liabilities

 

$

571