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Leased Assets

3 Months Ended

Mar. 30, 2024

NOTE 5 - LEASED ASSETS

The Company leases certain of its real estate and equipment. The Company has evaluated all its leases and determined that all are operating leases under the definitions of the guidance of ASU 2016-02, Leases (Topic 842). The Company’s lease agreements generally do not require material variable lease payments, residual value guarantees or restrictive covenants.

Under the provisions of ASU 2016-02, the Company records right-of-use assets equal to the present value of the contractual liability for future lease payments. The table below presents the right-of-use assets and related lease liabilities recognized on the Condensed Consolidated Balance Sheet as of March 30, 2024:

	Balance Sheet Line Item	March 30, 2024
Right-of-use assets	Other assets	$	2,633

Operating lease liabilities

Current portion	Trade accounts payable and accrued expenses	$	595

Noncurrent portion	Lease liabilities		2,038

Total operating lease liabilities		$	2,633

The depreciable lives of right-of-use assets are limited by the lease term and are amortized on a straight line basis over the life of the lease.

The Company’s leases generally do not provide an implicit interest rate, and therefore the Company calculates an incremental borrowing rate to determine the present value of its operating lease liabilities.

Certain of the Company’s lease agreements contain renewal options at the Company’s discretion. The Company does not recognize right-of-use assets or lease liabilities for leases of one year or less or for renewal periods unless it is reasonably certain that the Company will exercise the renewal option at the inception of the lease or when a triggering event occurs.

The table below includes cash paid for our operating lease liabilities, other non-cash information, our weighted average remaining lease term and weighted average discount rate:

	Three Months Ended
	March 30, 2024		April 1, 2023

Cash paid for amounts included in the measurement of lease liabilities	$	203	$	203

Cash amounts paid for short-term leases	$	106	$	96

Right-of-use assets obtained in exchange for lease liabilities	$	—	$	—

Weighted average remaining lease term (years)		8.1		8.6

Weighted average discount rate		8.0%		5.0%

The following table reconciles the undiscounted future minimum lease payments to the total operating lease liabilities recognized on the Condensed Consolidated Balance Sheet as of March 30, 2024:

Remainder of 2024	$	602
2025		702
2026		705
2027		229
2028		160
Thereafter		960
Total undiscounted future minimum lease payments		3,358
Less: Difference between undiscounted lease payments & the present value of future lease payments		(725	)
Total operating lease liabilities	$	2,633