Leases and Commitments

12 Months Ended

Dec. 28, 2013

Commitments and Contingencies Disclosure [Abstract]

Leases and Commitments

(4) Leases and Commitments

Capital Lease Obligations

An equipment financing facility with Santander Bank (see note 7), agreed to in May 2013, allowed the Company to finance up to $500 thousand of eligible equipment. As of year-end 2013 the Company had $424 thousand available remaining on the Santander lease line. Equipment financed by the Santander equipment lease qualifies for treatment as a capital lease.

At December 28, 2013, the Company had acquired production equipment with a cost of $2.55 million and accumulated amortization of $2.33 million under capital leases. 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. All capital leases are three year leases with a one dollar buyout.

Future payments required under capital lease obligations are as follows at December 28, 2013:

Fiscal Year
2014	$	78,067
Total future minimum lease payments		78,067
Less amount representing interest
at rates ranging between 4.4% and 5.9%		1,695
Present value of net future lease payments		76,372
Less current portion		76,372
Long-term obligation under capital leases	$	—

Interest expense was approximately $30 thousand, $29 thousand, and $33 thousand for 2013, 2012, and 2011, 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 2013, 2012 and 2011.

In February 2011, the Company entered into a lease for an additional 13,800 square feet in Attleboro, MA. The lease term was for one year and included five, one-year options for extensions at a rate of $6,900 per month. In October 2013, the Company renewed the lease for one additional year. In December 2013 the Company agreed with the landlord for two additional, one-year options. As a result, if the Company exercises all of the options, it will be able to use the space through February 2019.

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

Fiscal year:
	2014		231,000
	2015		156,900
	2016		37,500
		$	425,400