Leases and Commitments

12 Months Ended

Dec. 29, 2012

Debt Disclosure [Abstract]

Leases and Commitments

(4) Leases and Commitments

Capital Lease Obligations

An equipment financing facility with Sovereign Bank, agreed to in May 2012, allowed the Company to finance up to $1.25 million of eligible equipment. The agreement was modified in November 2012, reducing the maximum allowed to $500 thousand. As of year-end 2012 the Company had $300 thousand available remaining on the Sovereign lease line. Equipment financed by the Sovereign equipment lease qualifies for treatment as a capital lease.

At December 29, 2012, the Company had production equipment with a cost of $2.55 million and accumulated amortization of $2.15 million under capital leases. At December 31, 2011, the Company had production equipment with a cost of $2.55 million and accumulated amortization of $1.89 million under capital leases. All capital leases are three year leases with a one dollar buyout.

Future payments required under capital lease obligations are as follows at December 29, 2012:

2013		129,438
2014		78,067
Total future minimum lease payments		207,505
Less amount representing interest		7,767
at rates ranging between 4.4% and 5.9%		-------------
Present value of net future lease payments		199,738
Less current portion		123,366
Long-term obligation under capital leases	$	76,372

Interest expense was approximately $29 thousand, $33 thousand, and $32 thousand for 2012, 2011, and 2010, respectively.

Operating Lease Obligations

The Company entered into a 10-year lease for the Norton facilities effective on March 1, 2006. Rental expense for operating leases is recognized on a straight-line basis over the term of the lease and was $129 thousand in each of the years 2012, 2011 and 2010.

In February 2011, the Company entered into a lease for an additional 13,800 square feet in Attleboro, MA. The lease is for one year and requires monthly payments of $6,900. The Company has the option to extend the lease for 4 one year periods. In October 2012 the Company extended the lease for one additional year.

Future minimum rental payments over the terms of the lease agreements are approximately as follows:

Fiscal year:

2013		223,000
2014		155,000
2015		150,000
2016		37,500
Thereafter		—
	$	565,500