Note 2 - Summary of Significant Accounting Policies and Significant Judgments and Estimates

3 Months Ended

Dec. 28, 2019

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

NOTE 2. Summary of Significant Accounting Policies and Significant Judgments and Estimates

The Company’s significant accounting policies are described in “Note

2.

Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in its Annual Report on Form

10

-K for the year ended

September 28, 2019 (

“2019

Annual Report”) and are supplemented by the notes included in this Quarterly Report on Form

10

-Q. The financial statements and related notes included in this Quarterly Report should be read in conjunction with the Company’s

2019

Annual Report.

Recently Adopted Accounting Standard - Leases

Leases

Effective

September 29, 2019,

the Company adopted ASU

No.

2016

-

02,

Leases

(Topic

842

) (“ASC

842”

), using the modified retrospective approach and did

not

have a cumulative-effect adjustment in retained earnings as a result of the adoption.

ASU

842

requires an entity

to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The adoption of this standard required the Company to recognize a right-of-use asset and a corresponding lease liability associated with the operating lease on its facilities at

100

Domino Drive, Concord, MA in the amount of

$767,712

at

September 29, 2019.

The adoption of ASC

842

did

not

materially change the Company’s consolidated statements of income or consolidated statements of cash flows. See “Note

6.

Leases” for further discussion.