COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jun. 03, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure

NOTE 14– COMMITMENTS AND CONTINGENCIES

Rental expense was $528,434 in 2016 and $725,947 in 2015.

The Company leases certain facilities and equipment classified as operating leases. The Company has also entered into agreements with suppliers for the purchase of certain ingredients and packaging materials used in the production process. These agreements are entered into in the normal course of business and consist of agreements to purchase a certain quantity over a certain period of time. These purchase commitments range in length from three to twelve months. Future purchase commitments and operating lease obligations at June 3, 2016 were as follows:

	2017		2018		2019		2020		2021		Thereafter
Purchase commitments	$	8,223,235	$	-	$	-	$	-	$	-	$	-
Operating lease obligations		647,289		641,685		516,694		327,778		309,430		22,212
Debt obligations		837,225		864,402		892,464		702,484		2,891,707		-
Capital lease obligations		56,203		59,526		31,009		30,830		30,844		-
Total contractual obligations	$	9,763,952	$	1,565,613	$	1,440,167	$	1,061,092	$	3,231,981	$	22,212

The Company has a letter of credit in the amount of $1,925,000 outstanding at June 3, 2016 and $1,850,000 at May 29, 2015. The letter of credit supports the Company’s commercial self-insurance program. The Company pays an annual commitment fee of 0.72% to maintain the letters of credit.

The Company is subject to routine litigation and claims incidental to its business. In the opinion of management, such routine litigation and claims should not have a material adverse effect upon the Company’s consolidated financial statements taken as a whole.