Lease Obligations and Other Commitments

9 Months Ended

Mar. 02, 2024

Commitments and Contingencies Disclosure [Abstract]

6. LEASE OBLIGATIONS AND OTHER COMMITMENTS

The Company leases real and personal property in the normal course of business under various operating 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.

The Company did not capitalize short-term leases for all asset classes defined as leases with a term of shorter than twelve months on the balance sheet. These leases have not been transitioned to ASC 842. As a practical expedient, the Company did not reassess the accounting for initial direct costs of current leases.

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 upon a remeasurement event.

The net assets and liabilities related to operating leases were as follows (in thousands):


Lease Type	March 2, 2024		May 27, 2023
Operating lease right of use asset	$	3,120	$	2,457
Operating lease liability current		1,234		1,028
Operating lease liability non-current		1,886		1,429

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


		Three Months Ended
		March 2, 2024		February 25, 2023
Consolidated operating lease expense	Operating expenses	$	457	$	434


		Nine Months Ended
		March 2, 2024		February 25, 2023
Consolidated operating lease expense	Operating expenses	$	1,328	$	1,300

The approximate future minimum lease payments under operating leases at March 2, 2024 were as follows (in thousands):


Fiscal Year	Operating Leases
Remaining 2024	$	352
2025		1,332
2026		923
2027		403
2028		197
Thereafter		118
Total lease payments		3,325
Less imputed interest		205
Net minimum lease payments	$	3,120

The weighted average remaining lease terms and interest rates of leases held by the Company as of March 2, 2024 were as follows:


Lease Type	Weighted Average Remaining Lease Term in Years	Weighted Average Interest Rate
Operating leases	2.8	4.4%

The cash activities associated with our leases for the three and nine-month periods ending March 2, 2024 and February 25, 2023, were as follows (in thousands):


		Three Months Ended
Cash Flow Source	Classification	March 2, 2024		February 25, 2023

Operating cash flows from operating leases	Operating activities	$	354	$	150

		Nine Months Ended
Cash Flow Source	Classification	March 2, 2024		February 25, 2023

Operating cash flows from operating leases	Operating activities	$	977	$	646