Note 6 - Leases

6 Months Ended

Mar. 27, 2021

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.

In

February 2021,

the Company exercised the remaining option to extend the lease through

March 2024.

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

six

month periods ended

March 27, 2021

and

March 28, 2020

was

$85,000

.

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

March 27, 2021:

April - September 2021	$	85,302
2022		170,604
2023		170,604
2024		85,302
Total lease payments		511,812
Less: Imputed interest		(28,457	)
Total lease liability	$	483,355