Lease Obligations and Other Commitments

9 Months Ended

Feb. 25, 2023

Commitments And Contingencies Disclosure [Abstract]

Lease Obligations and Other Commitments

4. LEASE OBLIGATIONS AND OTHER COMMITMENTS

The Company leases real and personal property in the normal course of business under various operating and financing leases. The Company uses operating leases for facility space and automobiles. Most of the leased facility space is for sales and general office use. Automobile leases are used throughout the Company. Financing leases are used for computer servers.

Several leases include renewal clauses which vary in length and may not include specific rent renewal amounts. The Company will revise the value of the right of use assets and associated lease liabilities when the Company determines it is reasonably certain of renewal.

The gross amounts of assets and liabilities related to both operating and financing leases were as follows (in thousands):

Lease Type	February 25, 2023		May 28, 2022
Operating lease ROU asset	$	2,378	$	3,024
Financing lease ROU asset		—		215
Total lease ROU asset	$	2,378	$	3,239
Operating lease liability current	$	996	$	1,109
Operating lease liability non-current	$	1,382	$	1,915

The components of lease costs were as follows (in thousands):

		Three Months Ended
		February 25, 2023		February 26, 2022
Consolidated operating lease expense	Operating expenses	$	434	$	452
Consolidated financing lease amortization	Operating expenses		—		23
Consolidated financing lease interest	Interest expense		—		1
Consolidated financing lease expense			—		24
Net lease cost		$	434	$	476

		Nine Months Ended
		February 25, 2023		February 26, 2022
Consolidated operating lease expense	Operating expenses	$	1,300	$	1,353
Consolidated financing lease amortization	Operating expenses		—		69
Consolidated financing lease interest	Interest expense		—		4
Consolidated financing lease expense			—		73
Net lease cost		$	1,300	$	1,426

The approximate future minimum lease payments under operating leases at February 25, 2023 were as follows (in thousands):

Fiscal Year	Operating Leases
Remaining 2023	$	309
2024		992
2025		679
2026		418
2027		83
Thereafter		16
Total lease payments		2,497
Less imputed interest		119
Net minimum lease payments	$	2,378

The weighted average remaining lease terms and interest rates of leases held by the Company as of February 25, 2023 were as follows:

Lease Type	Weighted Average Remaining Lease Term in Years	Weighted Average Interest Rate
Operating leases	2.7	4.2%

The cash outflows of the leasing activity of the Company as lessee for the nine months ending February 25, 2023 and February 26, 2022 were as follows (in thousands):

		Nine Months Ended
Cash Flow Source	Classification	February 25, 2023		February 26, 2022
Operating cash flows from operating leases	Operating activities	$	646	$	986
Operating cash flows from financing leases	Operating activities		—		133
Finance cash flows from financing leases	Financing activities		—		136