Commitments and Contingencies

6 Months Ended

Jul. 02, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

3. Commitments and Contingencies

We have entered into a capital lease obligation for certain machinery and equipment. At July 2, 2011, the total capital lease obligation was $918,000, of which $133,000 was classified as a short-term liability, with the remaining $785,000 classified as a long-term liability. The future minimum lease payments are as follows: $61,000 for the remainder of 2011, $147,000 per year in years 2012 thru 2016, and $171,000 thereafter. The interest rate on the obligation is 1.59%.