LEASES

12 Months Ended

Dec. 29, 2019

The Company adopted the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) ASU 2016-02, Leases on the first day of Fiscal 2019 on a modified retrospective basis. The initial adoption of the standard recognized right-of-use assets of $4.1 million and lease liabilities of $4.3 million on the Company’s statement of financial position with no impact on the Company's results of operations. The Company did elect the hindsight practical expedient and did elect the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs for all leases. The Company also implemented a lease accounting system, but had no significant changes to processes or controls.

At December 29, 2019, the weighted average remaining lease term and weighted average discount rate for operating leases was 4.2 years and 5.6%, respectively. The Company's future operating lease obligations that have not yet commenced are immaterial. For Fiscal 2019, the Company's cash paid for operating leases was $1,645,470, and operating lease and short-term lease costs were $1,555,374 and $687,981, respectively.

The undiscounted annual future minimum lease payments consist of the following at:



	December 29, 2019
2020	$	1,520,950
2021	1,449,770
2022	1,360,320
2023	982,511
2024	567,633
Thereafter	196,075
Total lease payment	6,077,259
Interest	(670,465		)
Present value of lease liabilities	$	5,406,794