Sale Leaseback Transactions

6 Months Ended

Jul. 01, 2016

Sale Leaseback Transaction Disclosure [Text Block]

Note 13. Sale Leaseback Transactions

On June 7, 2016, the Company entered into a new schedule of an existing master agreement with Farnam Street Financial, Inc. of $1.3 million of which $1.2 million was a sale-leaseback agreement pursuant to which the Company sold production equipment and received net proceeds of $1.2 million which represented the net book value of the equipment as of that date. The lease line of credit provides for borrowings up to $2.0 million for an initial term of 24 months, at an annual rate of 3.94% for hardware equipment and 4.75% for non-hardware equipment of the purchase price. As of July 1, 2016 there was $0.7 million available for future transactions.