CONVERTIBLE NOTES

12 Months Ended

Jun. 27, 2021

CONVERTIBLE NOTES [Abstract]

CONVERTIBLE NOTES

NOTE D - CONVERTIBLE NOTES:

On March 3, 2017, the Company completed a registered shareholder rights offering of its 4% Convertible Senior Notes due 2022 (“Notes”).  Shareholders exercised subscription rights to purchase all 30,000 of the Notes at the par value of $100 per Note, resulting in gross offering proceeds to the Company of $3.0 million.

The Notes bear interest at the rate of 4% per annum on the principal or par value of $100 per note, payable annually in arrears on February 15 of each year, commencing February 15, 2018.  Interest is payable in cash or, at the Company’s discretion, in shares of Company common stock.  The Notes mature on February 15, 2022, at which time all principal and unpaid interest will be payable in cash or, at the Company’s discretion, in shares of Company common stock.  The Notes are secured by a pledge of all outstanding equity securities of our two primary direct operating subsidiaries.

Noteholders may convert their Notes to common stock as of the 15^th day of any calendar month, unless the Company sooner elects to redeem the Notes.  The conversion price is $2.00 per share of common stock.  Accrued interest will be paid through the effective date of the conversion in cash or, at the Company’s sole discretion, in shares of Company common stock.

During fiscal 2021, none of the Notes were converted to common shares.  As of June 27, 2021, $1.6 million of the Notes were outstanding, offset by $28 thousand of unamortized debt issue costs and unamortized debt discounts.