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						For the Three Quarters Ended
	March 27, 2020			March 29, 2019			March 27, 2020			March 29, 2019
Finance lease cost:
Amortization of right-of-use assets	$	49		$	-		$	127		$	-
Interest on lease liabilities		14			-			40			-
Operating lease cost		789			872			2,384			2,603
Short-term lease cost		18			1			43			23
Variable lease cost		17			11			42			16
Total lease cost		887			884			2,636			2,642
Less: Sublease income		(53	)		(2	)		(159	)		(18	)
Net lease cost	$	834		$	882		$	2,477		$	2,624

Other information related to leases was as follows:

	For the Quarter Ended				For the Three Quarters Ended
	March 27, 2020		March 29, 2019		March 27, 2020			March 29, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	780	$	824	$	2,367		$	2,548
Operating cash flows from finance leases		45		-		112			-
Financing cash flows from finance leases		14		-		40			-
Right-of-use-assets obtained in exchange for lease obligations:
Operating leases		149		380		2,573			12,453
Finance leases		188		-		465			-
Weighted average remaining lease term (years):
Operating leases						10.9			11.7
Finance lease						4.3			-
Weighted average discount rate:
Operating leases						7.4	%		7.7	%
Finance leases						6.6	%		0.0	%

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

March 27, 2020

were as follows:

	Operating Leases			Finance Leases
2020	$	746		$	62
2021		2,570			249
2022		2,098			249
2023		1,946			241
2024		1,743			208
Thereafter		12,241			32
Total future lease payments		21,344			1,041
Less: Amount representing interest		(6,941	)		(148	)
Present value of future payments	$	14,403		$	893

The following table provides a summary of leases recorded on the condensed consolidated balance sheet.

	Balance Sheet Location	March 27, 2020		June 30, 2019
Lease Assets
Operating lease right-of-use assets	Property, plant and equipment, net	$	14,391	$	14,138
Finance lease right-of-use assets	Property, plant and equipment, net		867		545

Lease Liabilities
Operating lease liabilities	Accrued liabilities	$	1,763	$	1,933
Operating lease liabilities	Lease obligations		12,640		12,197
Finance lease liabilities	Accrued liabilities		193		104
Finance lease liabilities	Lease obligations		700		449