Leases

12 Months Ended

Jun. 28, 2026

NOTE 5. LEASES

The Company has one operating lease for its El Paso, Texas distribution warehouse. Operating lease expense was $951,000, $951,000, and $989,000 for fiscal years of 2026, 2025 and 2024, respectively. The operating lease asset and obligation related to our operating lease included in the accompanying consolidated balance sheets are presented below (in thousands):


	Years Ended
	June 28, 2026		June 29, 2025
Right-of-use asset:
Other noncurrent assets	$	2,171	$	2,942
Lease liability:
Other current liabilities	$	910	$	808
Other noncurrent liabilities		1,568		2,478
	$	2,478	$	3,286

Cash flow information related to the operating lease is shown below (in thousands):


	Years Ended
	June 28, 2026		June 29, 2025		June 30, 2024
Operating Cash Flows:
Cash paid related to operating lease obligation	$	988	$	941	$	769

The weighted average remaining lease term and discount rate for our operating lease are shown below:


	Years Ended
	June 28, 2026			June 29, 2025
Weighted average remaining lease term, (in years)		2.5			3.5
Weighted average discount rate		6.2	%		6.2	%

Future minimum lease payments, by fiscal year, including options to extend that are reasonably certain to be exercised, under our non-cancelable lease are as follows as of June 28, 2026 (in thousands):


Fiscal Year	Future Minimum Lease Payment
2027	$	1,037
2028		1,089
2029		558
2030		—
Thereafter		—
Total future minimum lease payments		2,684
Less: imputed interest		(206	)
Total lease obligations	$	2,478