Note 11 - Leases

3 Months Ended

Jul. 02, 2023

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note 11 – Leases

The Company made cash payments related to its recognized operating leases of $424,000 and $480,000 during the three months ended July 2, 2023 and July 3, 2022, respectively. Such payments reduced the operating lease liabilities and were included in the cash flows provided by operating activities in the accompanying unaudited condensed consolidated statements of cash flows. The Company recognized noncash reductions to its operating right of use assets resulting from reductions to its lease liabilities in the amount of $254,000 and $23,000 during the three-month periods ended July 2, 2023 and July 3, 2022, respectively. As of July 2, 2023 and April 2, 2023, the Company’s operating leases had weighted-average remaining lease terms of 4.8 years and 5.0 years, respectively, and weighted-average discount rates of 5.9%.

During the three-month periods ended July 2, 2023 and July 3, 2022, the Company classified its operating lease costs within the accompanying unaudited condensed consolidated statements of income as follows (in thousands):

	Three-Month Periods Ended
	July 2, 2023		July 3, 2022
Cost of products sold	$	940	$	401
Marketing and administrative expenses		97		41
Total operating lease costs	$	1,037	$	442

The maturities of the Company’s operating lease liabilities as of July 2, 2023 are as follows (in thousands):

Fiscal Year
2024	$	2,973
2025		4,027
2026		4,108
2027		4,086
2028		3,952
2029		663
Total undiscounted operating lease payments		19,809
Less imputed interest		2,663
Operating lease liabilities - net	$	17,146