14.
LEASES
The
Company enters into operating leases primarily for: real estate, including for manufacturing, engineering, research, administration and
sales facilities, and information technology (“IT”) equipment. At June 27, 2026 and December 27, 2025, the Company did not
have any finance leases. Approximately all of its future lease commitments, and related lease liability, relate to the Company’s
real estate leases. Some of the Company’s leases include options to extend or terminate the lease.
The
components of lease expense were as follows:
SCHEDULE OF LEASE EXPENSE
| | |
Three Months
Ended | | |
Three Months
Ended | | |
Six Months
Ended | | |
Six Months
Ended | |
| | |
June 27, 2026 | | |
June 28, 2025 | | |
June 27, 2026 | | |
June 28, 2025 | |
| Operating lease cost | |
$ | 183,972 | | |
$ | 224,256 | | |
$ | 368,375 | | |
$ | 442,397 | |
At
June 27, 2026, the Company’s future lease payments under non-cancellable leases were as follows:
SCHEDULE OF FUTURE LEASE PAYMENT UNDER NON-CANCELLABLE LEASES
| | |
| | |
| 2026 (excluding the six months ended June 27,2026) | |
$ | 367,255 | |
| 2027 | |
| 669,255 | |
| 2028 | |
| 201,334 | |
| 2029 | |
| — | |
| 2030 | |
| — | |
| Total future lease payments | |
| 1,237,844 | |
| Less effects of discounting | |
| (75,248 | ) |
| Total | |
$ | 1,162,596 | |
The
Company’s lease liabilities recognized in the Company’s condensed consolidated balance sheet at June 27, 2026 were as follows:
SCHEDULE OF OPERATING LEASE LIABILITIES RECOGNIZED IN CONSOLIDATED BALANCE SHEETS
| | |
June 27, 2026 | |
| Operating lease liabilities–current | |
$ | 674,490 | |
| Operating lease liabilities–noncurrent | |
| 488,106 | |
| Total lease liabilities | |
$ | 1,162,596 | |
Supplemental
cash flow information related to leases was as follows:
SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES
| | |
Six Months
Ended | | |
Six Months
Ended | |
| | |
June 27, 2026 | | |
June 28, 2025 | |
| Cash paid for amounts included in the measurement of operating lease liabilities | |
$ | 365,355 | | |
$ | 443,133 | |
Other
information related to leases was as follows:
| | |
June 27, 2026 | | |
June 28, 2025 | |
| Weighted Average Discount Rate–Operating Leases | |
| 6.75 | % | |
| 6.50 | % |
| Weighted Average Remaining Lease Term–Operating Leases (in years) | |
| 1.74 | | |
| 2.80 | |
|