N.	Lease Liabilities

The Company leases certain office and warehouse space, as well as production and office equipment.

The Company determines if an arrangement is a lease at contract inception. The lease term begins upon lease commencement, which is when the Company takes possession of the asset, and

may

include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. As its lease agreements typically do

not

provide an implicit rate, the Company primarily uses an incremental borrowing rate based upon the information available at lease commencement. In determining the incremental borrowing rate, the Company considers its current borrowing rate, the term of the lease, and the economic environments where the lease activity is concentrated.

The components of lease expense were as follows:

	For the Quarter Ended
	September 27, 2019			September 28, 2018
Finance lease cost:
Amortization of right-of-use assets	$	36		$	1
Interest on lease liabilities		12			-
Operating lease cost		781			880
Short-term lease cost		17			11
Variable lease cost		16			8
Total lease cost		862			900
Less: Sublease income		(53	)		(16	)
Net lease cost	$	809		$	884

Other information related to leases was as follows:

	For the Quarter Ended
	September 27, 2019			September 28, 2018
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	778		$	871
Operating cash flows from finance leases		30			1
Financing cash flows from finance leases		12			-
Right-of-use-assets obtained in exchange for lease obligations:
Operating leases		351			12,127
Finance Leases		224			-
Weighted average remaining lease term (years):
Operating leases		11.1			11.4
Finance lease		4.6			3.8
Weighted average discount rate:
Operating leases		7.7	%		7.6	%
Finance leases		7.0	%		4.0	%

Approximate future minimum rental commitments under non-cancellable leases as of

September 27, 2019

were as follows:

	Operating Leases			Finance Leases
2020	$	2,148		$	142
2021		2,286			189
2022		1,789			190
2023		1,659			181
2024		1,487			154
Thereafter		10,777			5
Total future lease payments		20,146			861
Less: Amount representing interest		(6,827	)		(126	)
Present value of future payments	$	13,319		$	735

The Company had

$13,329

and

$14,138

of operating lease right-of-use assets recorded in property, plant and equipment, net as of

September 27, 2019

and

June 30, 2019,

respectively. The Company had

$13,319

and

$14,130

of operating lease liabilities recorded in lease obligations as of

September 27, 2019

and

June 30, 2019,

respectively.

The Company had

$720

and

$545

of finance lease right-of-use assets recorded in property, plant and equipment, net as of

September 27, 2019

and

June 30, 2019,

respectively. The Company had

$735

and

$553

of finance lease liabilities recorded in lease obligations as of

September 27, 2019

and

June 30, 2019,

respectively.