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Note 7 - Leases | 9 Months Ended
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Sep. 27, 2020
Notes to Financial Statements |
Leases of Lessee Disclosure [Text Block] | Note 7 — Leases The Company entered into operating leases for office space for its headquarter, domestic and foreign subsidiaries and sales offices. Finance leases are primarily for engineering design software. Operating leases generally have lease terms of 1 year to 5 years. Finance leases are generally 2 years to 3 years. As of September 27, 2020, the balance of right-of-use assets was approximately $2.0 million and lease liability was approximately $2.0 million relating to the operating and finance leases signed for the premises of its headquarters in San Jose and its subsidiaries SensiML in Oregon and India. Lease term of San Diego facility expired in July, 2020. The Company did not renew the lease agreement as San Diego office was closed. On July 10, 2020, Indian subsidiary leased a smaller office premises of approximately 1100 square feet for a period of eleven months to accommodate the reduced headcount. Effective July 2020, the rental expense of the old office is expensed to restructuring charges. Total rent expense for the three months ended September 27, 2020 and September 29, 2019 was approximately $150,000 and $192,000, respectively. Total rent expense for the nine months ended September 27, 2020 and September 29, 2019 was approximately $455,000 and $629,000, respectively. The following table provides the expenses related to operating and finance leases (in thousands):
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 27, 2020 |  |  | September 29, 2019 |  |  | September 27, 2020 |  |  | September 29, 2019 |
Operating lease costs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed |  | $ | 146 |  |  | $ | 186 |  |  | $ | 440 |  |  | $ | 596 |
Short term |  |  | 4 |  |  |  | 6 |  |  |  | 15 |  |  |  | 33 |
Total |  | $ | 150 |  |  | $ | 192 |  |  | $ | 455 |  |  | $ | 629 |
Finance lease costs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of ROU asset |  | $ | 91 |  |  | $ | 91 |  |  | $ | 224 |  |  | $ | 273 |
Interest |  |  | 9 |  |  |  | 3 |  |  |  | 29 |  |  |  | 14 |
Total |  | $ | 100 |  |  | $ | 94 |  |  | $ | 253 |  |  | $ | 287 |
The following table provides the details of supplemental cash flow information. The right-of-use assets obtained in exchange for new finance and operating lease liabilities represent the new operating and finance leases entered into during the nine months ended September 27, 2020 and September 29, 2019 (in thousands):
|  | Nine Months Ended |
|  | September 27, |  |  | September 29, |
|  | 2020 |  |  | 2019 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash flows used for operating leases |  | $ | 427 |  |  | $ | 633 |
Operating cash flows used for finance leases |  |  | 29 |  |  |  | 20 |
Financing cash flows used for financing leases |  |  | 179 |  |  |  | 283 |
Total |  | $ | 635 |  |  | $ | 936 |
Right-of-use assets obtained in exchange for obligations: |  |  |  |  |  |  |  |
Operating leases |  | $ | — |  |  | $ | 1,920 |
Finance leases |  |  | 773 |  |  |  | 250 |
Total |  | $ | 773 |  |  | $ | 2,170 |
The following table provides the details of right-of-use assets and lease liabilities as of September 27, 2020 and December 29, 2019 (in thousands):
|  | September 27, 2020 |  |  | December 29, 2019 |
Right-of-use assets: |  |  |  |  |  |  |  |
Operating leases |  | $ | 1,344 |  |  | $ | 2,200 |
Finance leases |  |  | 651 |  |  |  | 170 |
Total right of use assets |  | $ | 1,995 |  |  | $ | 2,370 |
Lease liabilities: |  |  |  |  |  |  |  |
Operating leases |  | $ | 1,386 |  |  | $ | 1,816 |
Finance leases |  |  | 620 |  |  |  | 471 |
Total lease liabilities |  | $ | 2,006 |  |  | $ | 2,287 |
The following table provided the details of future lease payments for operating and finance leases as of September 27, 2020 (in thousands):
Annual Fiscal Years |  | Operating Leases |  |  | Finance Leases |
2020 (Remaining period) |  | $ | 110 |  |  | $ | 103 |
2021 |  |  | 488 |  |  |  | 281 |
2022 |  |  | 409 |  |  |  | 278 |
2023 |  |  | 422 |  |  |  | — |
2024 |  |  | 106 |  |  |  | — |
Total lease payments |  |  | 1,535 |  |  |  | 662 |
Less: Interest |  |  | (149 | ) |  |  | (42 | )
Present value of lease liabilities |  | $ | 1,386 |  |  | $ | 620 |
The following table provides the details of lease terms and discount rates as of September 27, 2020 and December 29, 2019:
|  | September 27, 2020 |  |  | December 29, 2019 |
Right-of-use assets: |  |  |  |  |  |  |  |
Weighted-average remaining lease term (years) |  |  |  |  |  |  |  |
Operating leases |  |  | 3.26 |  |  |  | 3.81 |
Finance leases |  |  | 2.25 |  |  |  | 2.65 |
Weighted-average discount rates: |  |  |  |  |  |  |  |
Operating leases |  |  | 6.00 | % |  |  | 6.00 | %
Finance leases |  |  | 5.50 | % |  |  | 5.81 | %

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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