Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.23.1
Leases
9 Months Ended
Oct. 01, 2022
Leases [Abstract]  
Leases

Note 12: Leases

The Company accounts for leases in accordance with ASC 842. The amount recorded is the present value of all remaining lease payments for leases with terms greater than 12 months. The right of use asset is offset by a corresponding liability. The discount rate is based on an estimate of our incremental borrowing rate for terms similar to our lease terms at the time of lease commencement. The asset will be amortized over remaining lease terms. See Lease Accounting in Note 2.

Total present value of future lease payments as of October 1, 2022 (in $000’s):

 

Twelve months ended,

 

 

 

2023

 

$

594

 

2024

 

 

1,975

 

2025

 

 

1,681

 

2026

 

 

1,158

 

2027

 

 

981

 

Thereafter

 

 

445

 

Total

 

 

6,834

 

Less Interest

 

 

(944

)

Present Value of Payments

 

$

5,890

 

 

During the 39 weeks ended October 1, 2022 and October 2, 2021, approximately $1.3 million and approximately $1.1 million, respectively, were included in operating cash flow for amounts paid for operating leases.

Additionally, the Company obtained right-of-use assets in exchange for lease liabilities of approximately $1.9 million upon commencement of new and renewed operating leases during the 39 weeks ended October 1, 2022. The weighted average lease term for operating leases is 3.75 years and the weighted average discount rate is 8.09%.