Note 7 - Leases

12 Months Ended

Jan. 01, 2023

Notes to Financial Statements

Lessee, Operating and Finance Leases [Text Block]

NOTE 7 — LEASES

The Company's principal research and development and corporate facilities are leased office buildings located in the United States. These lease facilities are classified as operating leases. Operating leases generally have lease terms of 1 year to 5 years. Finance leases are primarily for engineering design software and have lease terms of generally 2 years to 3 years. The Company's corporate facility is located at 2220 Lundy Avenue, San Jose, California, 95131, where the Company occupies approximately 24,164 square feet of space. The five-year lease was entered into in February 2019. The Company's SensiML subsidiary in Beaverton, Oregon occupies approximately 705 square feet of space. The four-year lease was entered into in April 2019. The Company expects to renew this lease in Fiscal 2023 under similar terms. The Company maintains sales offices out of which it conducts sales and marketing activities in various countries outside of the United States. The sales offices are rented under short-term leases. Total rent expense was approximately $0.4 million, $0.4 million and $0.5 million for the years ended January 1, 2023,  January 2, 2022 and January 3, 2021, respectively.

The Company believes that these facilities are adequate for its current needs.

The following table provides the activity related to operating and finance leases (in thousands):

	January 1, 2023		January 2, 2022
Operating lease costs:
Fixed	$	409	$	402
Short term		11		23
Total	$	420	$	425
Finance lease costs:
Amortization of ROU asset	$	437	$	700
Interest		23		69
Total	$	460	$	769

The following table provides the details of supplemental cash flow information (in thousands):

	January 1, 2023		January 2, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	409	$	402
Operating cash flows used for finance leases		23		69
Financing cash flows used for financing leases		452		378
Finance lease	$	650	$	1,311

The following table provides the details of ROU assets and lease liabilities (in thousands):

	January 1, 2023		January 2, 2022
Right-of-use assets:
Operating leases	$	464	$	809
Finance leases		933		720
Total	$	1,397	$	1,529
Lease liabilities:
Operating leases	$	507	$	873
Finance leases		887		690
Total	$	1,394	$	1,563

The following table provides the details of future lease payments for operating and finance leases as of January 1, 2023 and (in thousands):

Annual Fiscal Years	Operating		Finance
2023	$	421	$	491
2024		106		455
Total lease payments		527		946
Less: Interest		20		59
Present value of lease liabilities	$	507	$	887

The following table provides the details of lease terms and discount rates:

	January 1, 2023
ROU assets:
Weighted-average remaining lease term (years)
Operating leases		1.25
Finance leases		1.91
Weighted-average discount rates:
Operating leases		6.00	%
Finance leases		5.95	%