Note 8: Leases

In connection with its acquisition of ALT5 Subsidiary (see Note 3), the Company leases commercial office space. These assets and properties are leased under non-cancellable agreements that expire at various future dates. The agreements, which have been classified as operating leases, provide for minimum rent and require the Company to pay all insurance, taxes, and other maintenance costs. As a result, the Company recognizes assets and liabilities for leases with lease terms greater than 12 months. The amounts recognized reflect the present value of remaining lease payments for all leases. The discount rate used is an estimate of the Company’s blended incremental borrowing rate based on information available associated with each subsidiary’s debt outstanding at lease commencement. In considering the lease asset value, the Company considers fixed and variable payment terms, prepayments and options to extend, terminate or purchase. Renewal, termination, or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised.

The following table details the Company’s right of use assets and lease liabilities as of June 27, 2026 and December 27, 2025 (in $000’s):

Schedule of Right of Use Assets and Lease Liabilities 

As of June 27, 2026, the weighted average remaining lease term for operating leases is 3.3 years. The Company’s weighted average discount rate for operating leases is 12.8%. Total cash payments for operating leases for the six month’s ended June 27, 2026 and June 28, 2025 were approximately $22,875 and $10,941, respectively. Additionally, the Company recognized approximately no right of use assets and liabilities during the fiscal quarter ended June 27, 2026.

Total present value of future lease payments of operating leases as of June 27, 2026 (in $000’s):

Schedule of Lease Payments of Operating Leases