v3.26.1
Note 16 - Leases
3 Months Ended
Apr. 04, 2026
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

16.

Leases

 

Leases are recorded in accordance with FASB ASC 842, Leases, which requires lessees to recognize a right-of-use (“ROU”) asset and an operating lease liability for all leases with terms greater than 12 months and requires disclosures by lessees and lessors about the amount, timing, and uncertainty of cash flows arising from leases.

 

The Company determines if an arrangement is a lease at inception. For leases where the Company is the lessee, right-of-use assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent an obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The right-of-use asset also includes any lease incentives received. The lease terms used to calculate the right-of-use asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while the expense for finance leases is recognized as depreciation expense and interest expense using the accelerated interest method of recognition. The Company has lease agreements which require payments for lease and non-lease components. The Company has elected to account for these as a single lease component with the exception of its real estate leases.

 

The components of lease expense were as follows:

 

  

Thirteen Weeks Ended

 
  

April 4,

2026

  

March 29,

2025

 
         

Operating lease cost

 $362  $346 
         

Finance lease cost

     

Amortization of right-of-use assets

 $237  $181 

Interest on lease liabilities

  12   20 

Total finance lease cost

 $249  $201 

 

Supplemental Cash Flow information related to leases was as follows:

 

  

Thirteen Weeks Ended

 
  

April 4,

2026

  

March 29,

2025

 
         

Cash paid for amounts included in the measurement of lease liabilities

        

Operating cash flows from operating leases

 $334  $313 

Operating cash flows from finance leases

 $15  $22 

Financing cash flows from finance leases

 $235  $171 
         

Right-of-use assets obtained in exchange for lease obligations

        

Operating leases

 $-  $233 

 

Supplemental Balance Sheet information as of April 4, 2026 and January 3, 2026 related to leases was as follows:

 

  

April 4,

2026

  

January 3,

2026

 

Operating leases

        

Operating lease right-of-use assets

 $4,531  $4,832 
         

Operating lease liabilities - current

 $(1,207) $(1,209)

Operating lease liabilities - non-current

  (3,542)  (3,813)

Total operating lease liabilities

 $(4,749) $(5,022)
         

Finance leases

     

Property and equipment - (right-of-use assets)

 $2,395  $2,394 

Accumulated depreciation

  (1,434)  (1,197)

Property and equipment, net

 $961  $1,197 
         

Finance lease liability - current

 $(797) $(843)

Finance lease liability - non-current

  (191)  (380)

Total finance lease liabilities

 $(988) $(1,223)
         

Weighted average remaining lease term in years

        

Operating leases

  3.25   3.48 

Finance leases

  1.19   1.41 
         

Weighted average discount rate

        

Operating leases

  6.36%  6.36%

Finance leases

  4.84%  4.82%

 

 

Maturities of lease liabilities are as follows:

 

Fiscal Year

 

Operating

Leases

  

Finance

Leases

 

2026 (After April 4, 2026)

 $1,110  $636 

2027

  1,252   387 

2028

  1,123   - 

2029

  726   - 

2030

  182   - 

Thereafter

  1,022   - 
         

Total lease payments

  5,415   1,023 

Less: imputed interest

  (666)  (35)

Total

 $4,749  $988