XML 47 R10.htm IDEA: XBRL DOCUMENT

Leases and Commitments

12 Months Ended

Dec. 27, 2014

Commitments and Contingencies Disclosure [Abstract]

(4) Leases and Commitments

Capital Lease Obligations

An equipment financing facility with Santander Bank (see note 7), agreed to in May 2014, allowed the Company to finance up to $500 thousand of eligible equipment. As of year-end 2014 the Company had $500 thousand available remaining on the Santander lease line. Equipment financed by the Santander equipment lease qualifies for treatment as a capital lease.

At December 27, 2014, the Company had acquired production equipment with a cost of $2.55 million and accumulated amortization of $2.45 million under capital leases. At December 29, 2013, the Company had production equipment with a cost of $2.55 million and accumulated amortization of $2.33 million under capital leases. All capital leases are three year leases with a one dollar buyout. At December 27, 2014 these leases were paid in full.

Interest income was approximately $5 thousand in 2014, interest expense was $30 thousand, and $29 thousand for 2013 and 2012, 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 2014, 2013 and 2012.

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 2014, 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:

2015		235,000
2016		159,300
2017		152,400
2018		152,400
2019		25,400

	$	724,500

- Definition

The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights.

+ References+ Details