Note 12 - Treasury Stock Transactions

9 Months Ended

Sep. 26, 2020

Notes to Financial Statements

Treasury Stock [Text Block]

12. Treasury Stock Transactions

On

June 2, 2020,

the Company entered into a stock purchase agreement with certain stockholders of the Company, whereby the Company purchased an aggregate of

1,858,139

shares of the Company's common stock for a negotiated purchase price of

$1.20

per share or

$2.2

million in total. The negotiated price of

$1.20

per share was less than the lowest trading price of the stock on the day of the repurchase. The consideration paid by the Company consisted entirely of an unsecured subordinated promissory note for

$2.2

million. The note accrues interest at an annual rate of

9.0%,

compounded annually, payable quarterly in arrears commencing on

September 1, 2020

and continuing on each

December 1,

March 1,

June 1

and

September 1

thereafter, and initially had a maturity date of

August 10, 2023

.

On

September 25, 2020,

the Company retired the subordinated promissory note in the amount of

$2.2

million.

The shares repurchased on

June 2, 2020

were

not

purchased under a stock repurchase plan. The Company, at this time, does

not

have an open repurchase plan. The Company did

not

repurchase any shares in the comparable prior year period.