Note 6 - Leases

9 Months Ended

Jun. 26, 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 nine month periods ended June 26, 2021 and June 27, 2020 was $128,000.

The table below presents the maturity of the Company’s operating lease liability as of June 26, 2021:

July - September 2021	$	42,651
2022		170,604
2023		170,604
2024		85,302
Total lease payments		469,161
Less: Imputed interest		(24,044	)
Total lease liability	$	445,117