(4) Leases and Commitments

12 Months Ended

Dec. 26, 2015

Commitments and Contingencies Disclosure [Abstract]

(4) Leases and Commitments

(4) Leases and Commitments

Capital Lease Obligations

An equipment financing facility with Santander Bank (see note 7), agreed to in May 2015, allowed the Company to finance up to $500 thousand of eligible equipment. As of year-end 2015 the Company had $500 thousand available remaining on the Santander lease line.

At December 26, 2015, the Company had acquired production equipment with a cost of $2.55 million and accumulated amortization of $2.55 million under capital leases. At December 27, 2014, the Company had production equipment with a cost of $2.55 million and accumulated amortization of $2.45 million under capital leases. All capital leases are three year leases with a one dollar buyout. At December 26, 2015 these leases were paid in full.

Interest expense was $3 thousand and $30 thousand for 2014 and 2013, respectively.

Operating Lease Obligations

The Company entered into a 10-year lease for the Norton facilities effective on March 1, 2006. The leased facilities comprise approximately 38 thousand square feet. In January 2015 this lease was amended to extended the lease to February 28, 2017.  In addition in this amendment the Company obtained two, one-year options which, if fully exercised, would enable it to continue to lease through February 28, 2019. Rental expense for operating leases is recognized on a straight-line basis over the term of the lease and was $131 thousand in 2015 and $129 thousand in each of the years 2014 and 2013.

In February 2011, the Company entered into a lease for an additional 13.8 thousand square feet in Attleboro, MA. The lease term is for one year and has an option to extend the lease for five additional one-year periods. The Company renewed the lease in 2013 for one additional year and also obtained two years of additional options which could extend the Company use through February 2019.  In December 2015, the Company exercised its option to extend the lease through the end of February 2017.

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

Fiscal year:

2016	$	235,200
2017		166,200
2018		152,400
2019		25,400
	$	579,200