DEBT

12 Months Ended

Sep. 30, 2023

Debt [Abstract]

DEBT

NOTE 13. DEBT

Debt consists of the following as of September 30, 2023 and October 1, 2022:

Long-Term Debt

	2023	2022
Mortgage payable to institutional lender, secured by a first mortgage on real property and improvements, bearing interest at 3.86%, amortized over twenty (20) years, payable in monthly installments of principal and interest of approximately $43,400, with a balloon payment of approximately $5,373,000 due on November 27, 2026. As of September 30, 2023, the net book value of the collateral securing this mortgage was $5,571,000	6,295	6,563
Mortgage payable to institutional lender, secured by first mortgage on real property and improvements, bearing interest at the fixed rate of 3.63% per annum, fully amortized over fifteen (15) years, payable in monthly installments of principal and interest of approximately $31,100, with a final payment on July 1, 2036. As of September 30, 2023, the net book value of the collateral securing this mortgage was $11,149,000.	3,815	4,044
Mortgage payable to institutional lender, secured by first mortgage on real property and improvements, bearing interest at the fixed rate of 3.65% per annum, fully amortized over fifteen (15) years, payable in monthly installments of principal and interest of approximately $16,000, with a final payment on March 2, 2036. As of September 30, 2023, the net book value of the collateral securing this mortgage was $7,601,000	1,913	2,031
Mortgage payable to institutional lender, secured by a first mortgage on real property and improvements, bearing interest at BSBY Screen Rate – 1 Month +1.50%, (5.38% at September 30, 2023), but with the interest fixed at 4.90% pursuant to a swap agreement, amortized over fifteen (15) years, payable in monthly installments of principal and interest of approximately $33,000. From the re-financing of this mortgage, we withdrew $8,012,000 during our fiscal year ended October 1, 2022. As of September 30, 2023, the net book value of the collateral securing this mortgage was $3,458,000.	8,505	8,900
Revolving credit line/term loan payable to institutional lender, which entitled the Company to borrow, from time to time through December 28, 2017, up to $5,500,000, (the “Credit Line”), secured by a blanket lien on all Company assets, bearing interest through December 28, 2017 at LIBOR – Daily Floating Rate + 2.25%. Effective December 28, 2017, an interest rate swap agreement requires us to pay interest for a five (5) year period at a fixed rate of 4.61% on an initial amortizing notional principal amount of $5,500,000, while receiving interest for the same period at LIBOR, Daily Floating Rate, plus 2.25%, per annum on the same notional principal amount, with a final payment on December 28, 2022. On December 21, 2017, we borrowed the remaining $3,500,000 and on December 28, 2017 the entire principal balance under the Credit Line ($5,500,000) converted to the Term Loan. On December 28, 2022, we paid the outstanding principal balance ($367,000) and accrued interest ($-0-) in full.	—	550
Mortgage payable to institutional lender, secured by a first mortgage on real property and improvements, bearing interest at the fixed rate of 4.65% per annum, fully amortized over fifteen (15) years, payable in monthly installments of principal and interest of approximately $6,400, with a final payment on December 28, 2031. As of September 30, 2023, the net book value of the collateral securing this mortgage was $1,033,000.	535	585

Mortgage payable to a related party, an entity the owners of which include persons who are either our officers, directors or their family members, secured by first mortgage on real property and improvements, bearing interest at 6%, amortized over fifteen (15) years, payable in monthly installments of principal and interest of approximately $9,300, with a balloon payment of approximately $487,000 on August 1, 2032. As of September 30, 2023, the net book value of the collateral securing this mortgage was $1,873,000.		1,049			1,096
Mortgage payable to institutional lender, secured by a first mortgage on real property and improvements, bearing interest at the fixed rate of 4.65% per annum, fully amortized over fifteen (15) years, payable in monthly installments of principal and interest of approximately $6,500, with a final payment on December 28, 2031. As of September 30, 2023, the net book value of the collateral securing this mortgage was $988,000.		547			598
Financed insurance premiums, secured by all insurance policies, bearing interest at 2.55% payable in monthly installments of principal and interest in the aggregate amount of $215,000 a month through November 30, 2022.		—			507
Mortgage payable to unrelated third party, secured by first mortgage on real property and improvements, bearing interest at 7.5%, amortized over twenty (20) years, payable in monthly installments of principal and interest of approximately $7,300, with a final payment on March 1, 2034. As of September 30, 2023, the net book value of the collateral securing this mortgage was $1,066,000.		641			678
Mortgage payable to related third party, secured by first mortgage on real property and improvements, bearing interest at 4%, amortized over eight (8) years, payable in monthly installments of principal and interest of approximately $3,000, with a final payment on November 1, 2026. As of September 30, 2023, the net book value of the collateral securing this mortgage was $559,000.		109			140
Other		29			44
Less unamortized loan costs		(310	)		(347	)
		23,128			25,389
Less current portion		1,295			2,299
	$	21,833		$	23,090

Long-term debt at September 30, 2023 matures as follows:

2024		1,295
2025		1,357
2026		1,413
2027		6,555
2028		1,180
Thereafter		11,638
		23,438
Less unamortized loan costs		(310	)
	$	23,128

As of September 30, 2023, we are in compliance with the financial covenants contained in our loans with our unrelated third party institutional lender (the “Institutional Lender”). We owe in the aggregate, approximately $21,610,000 (the “Institutional Loans”), as of September 30, 2023.

There can be no assurances that we will be in compliance with our financial covenants thereafter due to, among other things, that our results of operations will likely continue to be materially impacted by the COVID-19 pandemic. Absent a waiver, failure to be in compliance with our financial covenants would constitute a default under the Institutional Loans with our Institutional Lender when reported. Such a default, if not cured or waived, would allow the Institutional Lender to accelerate the maturity of the indebtedness we owe under the Institutional Loans, making it due and payable at the time. If maturity of the Institutional Loans were accelerated, it would have a material adverse impact on our financial position.