Note 6 - Leases

3 Months Ended

Dec. 28, 2019

Notes to Financial Statements

Leases of Lessee Disclosure [Text Block]

NOTE 6. Leases

The Company leases space from a

third

party for all manufacturing, research and development, and corporate operations. The initial term of the lease was for

five

years through

March 31, 2019

at an annual rate of

$171,000.

In addition, the lease contains options to extend the lease for

two

and

one

-half years through

September 30, 2021

and another

two

and

one

-half years through

March 31, 2024

at an annual rate of

$171,000.

In

September 2018,

the Company exercised its option to extend the term of the lease through

September 2021.

The Company believes that it will exercise the remaining option to extend the lease, notice of which must be given by

March 1, 2021.

As such, the Company uses the extended lease term in its calculation of the lease liability and right-of-use asset. The Company classifies this lease as an operating lease with the costs recognized as a selling, general and administrative expense in its consolidated statements of operations. The lease expense for each of the

three

month periods ended

December 28, 2019

and

December 29, 2018

was

$43,000

.

The table below presents the maturity of the Company’s operating lease liability as of

December 28, 2019:

January - September 2020	$	127,953
2021		170,604
2022		170,604
2023		170,604
2024		85,302
Total lease payments		725,067
Less: Imputed interest		(55,798	)
Total lease liability	$	669,269