Note 4 - Leases

6 Months Ended

Jul. 04, 2026

Note 4 – Leases

The Company primarily leases office and manufacturing facilities in addition to vehicles, which have remaining terms of less than one year to ten years, seven months, eight days.

Leases recorded on the balance sheet consist of the following (in thousands):

Leases	*July 4, 2026*		*December 31, 2025*
Assets
Operating lease right of use asset	$	22,057	$	22,892

Liabilities
Operating lease - current	$	4,706	$	4,347
Operating lease - non-current	$	18,907	$	19,547

Other information related to lease term and discount rate is as follows:

	*July 4, 2026*
Operating leases weighted average remaining lease term (in years)		5.69
Operating leases weighted average discount rate		4.92	%

The components of lease expense are as follows (in thousands):

	*Fiscal Quarter Ended*						*Six Fiscal Months Ended*
	*July 4, 2026*			*June 28, 2025*			*July 4, 2026*			*June 28, 2025*
Operating lease cost	$	1,417		$	1,344		$	2,832		$	2,675
Short-term lease cost		62			15			82			39
Sublease income		(75	)		(131	)		(147	)		(248	)
Total net lease cost	$	1,404		$	1,228		$	2,767		$	2,466

Right of use assets obtained in exchange for new operating lease liability during the six fiscal months ended July 4, 2026 were $1.0 million. The Company paid $2.9 million and $2.7 million for its operating leases for each of the six fiscal months ended July 4, 2026 and June 28, 2025, which are included in operating cash flows on the consolidated condensed statements of cash flows.

Undiscounted maturities of operating lease payments as of July 4, 2026 are summarized as follows (in thousands):

2026	$	2,837
2027		5,199
2028		4,724
2029		4,181
2030		3,702
Thereafter		6,328
Total future minimum lease payments	$	26,971
Less: amount representing interest		(3,358	)
Present value of future minimum lease payments	$	23,613