LEASES

12 Months Ended

Dec. 25, 2021

LEASES

LEASES

NOTE 8 - LEASES

The Company leases land, office space and equipment. Arrangements are assessed at inception to determine if a lease exists and, with the adoption of ASC 842, “Leases,” right-of-use (“ROU”) assets and lease liabilities are recognized based on the present value of lease payments over the lease term. Because the Company’s leases do not provide an implicit rate of return, the Company uses its incremental borrowing rate at the inception of a lease to calculate the present value of lease payments. The Company has elected to apply the short-term lease exception for all asset classes, excluding lease liabilities from the balance sheet and recognizing the lease payments in the period they are incurred.

The components of lease expense are as follows (amounts in thousands):

	Financial	Year ended		Year ended
	Statement	December 25,		December 26,
	Classification	2021		2020
Finance leases:
Amortization expense	SG&A Expense	$	100	$	92
Interest expense	Interest expense, net		17		20
		$	117	$	112
Operating leases:
Operating costs	Operating costs		507		633
Selling, general and administrative expenses	SG&A Expense		1,728		1,830
		$	2,235	$	2,463
Total lease expense		$	2,352	$	2,575

Supplemental balance sheet information related to leases are as follows (amounts in thousands):

	Financial
	Statement	December 25,		December 26,
	Classification	2021		2020
ROU Assets:
Operating leases	Right of Use asset	$	4,251	$	1,628
Finance leases	Property and equipment, net		979		442
Total ROU Assets:		$	5,230	$	2,070
Lease liabilities:
Current liabilities
Operating leases	Current portion of leases	$	1,153	$	1,421
Finance leases	Current portion of leases		236		120
Noncurrent Liabilities:
Operating leases	Long Term Leases		3,269		286
Finance leases	Long Term Leases		743		322
Total lease liabilities		$	5,401	$	2,149

The weighted average remaining lease term and weighted average discount rate are as follows:

	December 25, 2021			December 26, 2020
Weighted average remaining lease term (years)
Operating leases		4.8			1.2
Finance leases		4.4			4.2
Weighted average discount rate
Operating leases		0.8	%		1.7	%
Finance leases		2.1	%		5.8	%

Maturities of operating lease liabilities as of December 25, 2021 are as follows (dollars in thousands):

Year ending:	Operating leases			Finance leases			Total
2022		1,162			248			1,410
2023		803			228			1,031
2024		710			208			918
2025		600			172			772
2026 and thereafter		1,185			142			1,327
Total lease payments		4,460			998			5,458
Less: imputed interest		(37	)		(20	)		(57	)
Total lease liabilities	$	4,423		$	978		$	5,401