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Optex Systems Holdings Inc – ‘10-Q’ for 12/29/19 – ‘EX-101.INS’

On:  Monday, 2/10/20, at 4:57pm ET   ·   For:  12/29/19   ·   Accession #:  1493152-20-1874   ·   File #:  0-54114

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  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 2/10/20  Optex Systems Holdings Inc        10-Q       12/29/19   53:3M                                     M2 Compliance/FA

Quarterly Report   —   Form 10-Q   —   Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Quarterly Report                                    HTML    304K 
 2: EX-31.1     Certification -- §302 - SOA'02                      HTML     22K 
 3: EX-31.2     Certification -- §302 - SOA'02                      HTML     22K 
 4: EX-32.1     Certification -- §906 - SOA'02                      HTML     19K 
 5: EX-32.2     Certification -- §906 - SOA'02                      HTML     19K 
13: R1          Document and Entity Information                     HTML     46K 
36: R2          Condensed Consolidated Balance Sheets               HTML    102K 
42: R3          Condensed Consolidated Balance Sheets               HTML     27K 
                (Parenthetical)                                                  
27: R4          Condensed Consolidated Statements of Operations     HTML     68K 
                (Unaudited)                                                      
14: R5          Condensed Consolidated Statements of Cash Flows     HTML     91K 
                (Unaudited)                                                      
38: R6          Condensed Consolidated Statements of Stockholders'  HTML     33K 
                Equity (Unaudited)                                               
44: R7          Organization and Operations                         HTML     21K 
28: R8          Accounting Policies                                 HTML     50K 
12: R9          Segment Reporting                                   HTML     53K 
24: R10         Commitments and Contingencies                       HTML     43K 
18: R11         Debt Financing                                      HTML     23K 
35: R12         Warrant Liabilities                                 HTML     38K 
52: R13         Stock Based Compensation                            HTML     34K 
23: R14         Stockholders' Equity                                HTML     20K 
17: R15         Subsequent Events                                   HTML     19K 
34: R16         Accounting Policies (Policies)                      HTML     84K 
51: R17         Accounting Policies (Tables)                        HTML     33K 
22: R18         Segment Reporting (Tables)                          HTML     50K 
19: R19         Commitments and Contingencies (Tables)              HTML     34K 
40: R20         Warrant Liabilities (Tables)                        HTML     36K 
47: R21         Stock Based Compensation (Tables)                   HTML     31K 
30: R22         Organization and Operations (Details Narrative)     HTML     34K 
16: R23         Accounting Policies (Details Narrative)             HTML     88K 
39: R24         Accounting Policies - Schedule of Inventory         HTML     33K 
                (Details)                                                        
46: R25         Accounting Policies - Schedule of Warranty          HTML     28K 
                Reserves (Details)                                               
29: R26         Segment Reporting (Details Narrative)               HTML     49K 
15: R27         Segment Reporting - Schedule of Information for     HTML     67K 
                Each of the Reportable Segments Profit or Loss as                
                Well as Segment Assets for Each Year (Details)                   
41: R28         Commitments and Contingencies (Details Narrative)   HTML     70K 
45: R29         Commitments and Contingencies - Schedule of         HTML     55K 
                Non-cancellable Operating Leases Minimum Payments                
                (Details)                                                        
48: R30         Commitments and Contingencies - Schedule of         HTML     25K 
                Non-cancellable Operating Leases Minimum Payments                
                (Details) (Parenthetical)                                        
32: R31         Debt Financing (Details Narrative)                  HTML     34K 
20: R32         Warrant Liabilities (Details Narrative)             HTML     27K 
25: R33         Warrant Liabilities - Schedule of Fair Value        HTML     36K 
                Warrant Liabilities (Details)                                    
49: R34         Warrant Liabilities - Summary of Warrants           HTML     27K 
                Outstanding and Fair Values (Details)                            
33: R35         Stock Based Compensation (Details Narrative)        HTML     76K 
21: R36         Stock Based Compensation - Schedule of Aggregate    HTML     25K 
                Non-vested Restricted Stock Units Granted                        
                (Details)                                                        
26: R37         Stock Based Compensation - Schedule of              HTML     24K 
                Unrecognized Compensation Costs (Details)                        
50: R38         Stockholders' Equity (Details Narrative)            HTML     21K 
31: R39         Subsequent Events (Details Narrative)               HTML     25K 
37: XML         IDEA XML File -- Filing Summary                      XML     90K 
43: EXCEL       IDEA Workbook of Financial Reports                  XLSX     48K 
 6: EX-101.INS  XBRL Instance -- opxs-20191229                       XML    891K 
 8: EX-101.CAL  XBRL Calculations -- opxs-20191229_cal               XML    119K 
 9: EX-101.DEF  XBRL Definitions -- opxs-20191229_def                XML    386K 
10: EX-101.LAB  XBRL Labels -- opxs-20191229_lab                     XML    668K 
11: EX-101.PRE  XBRL Presentations -- opxs-20191229_pre              XML    532K 
 7: EX-101.SCH  XBRL Schema -- opxs-20191229                         XSD    111K 
53: ZIP         XBRL Zipped Folder -- 0001493152-20-001874-xbrl      Zip     89K

‘EX-101.INS’   —   XBRL Instance — opxs-20191229

This Exhibit is an XBRL XML File.

                                                                                                                                                                                
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<xbrli:segment>
<xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis"> OPXS:NewShareholdersMember </xbrldi:explicitMember>
<xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis"> OPXS:UnderwriterMember </xbrldi:explicitMember>
</xbrli:segment>
</xbrli:entity>
<xbrli:period>
<xbrli:startDate> 2016-08-25 </xbrli:startDate>
<xbrli:endDate> 2016-08-26 </xbrli:endDate>
</xbrli:period>
</xbrli:context>
<xbrli:context id="From2019-10-01to2019-12-29">
<xbrli:entity>
<xbrli:identifier scheme="http://www.sec.gov/CIK"> 0001397016 </xbrli:identifier>
</xbrli:entity>
<xbrli:period>
<xbrli:startDate> 2019-10-01 </xbrli:startDate>
<xbrli:endDate> 2019-12-29 </xbrli:endDate>
</xbrli:period>
</xbrli:context>
<xbrli:context id="AsOf2019-09-29_custom_TwoThousandNineStockOptionPlanMember">
<xbrli:entity>
<xbrli:identifier scheme="http://www.sec.gov/CIK"> 0001397016 </xbrli:identifier>
<xbrli:segment>
<xbrldi:explicitMember dimension="us-gaap:PlanNameAxis"> OPXS:TwoThousandNineStockOptionPlanMember </xbrldi:explicitMember>
</xbrli:segment>
</xbrli:entity>
<xbrli:period>
<xbrli:instant> 2019-09-29 </xbrli:instant>
</xbrli:period>
</xbrli:context>
<xbrli:unit id="USD">
<xbrli:measure> iso4217:USD </xbrli:measure>
</xbrli:unit>
<xbrli:unit id="Shares">
<xbrli:measure> xbrli:shares </xbrli:measure>
</xbrli:unit>
<xbrli:unit id="USDPShares">
<xbrli:divide>
<xbrli:unitNumerator>
<xbrli:measure> iso4217:USD </xbrli:measure>
</xbrli:unitNumerator>
<xbrli:unitDenominator>
<xbrli:measure> xbrli:shares </xbrli:measure>
</xbrli:unitDenominator>
</xbrli:divide>
</xbrli:unit>
<xbrli:unit id="Pure">
<xbrli:measure> xbrli:pure </xbrli:measure>
</xbrli:unit>
<xbrli:unit id="sqft">
<xbrli:measure> utr:sqft </xbrli:measure>
</xbrli:unit>
<xbrli:unit id="Employee">
<xbrli:measure> OPXS:Employee </xbrli:measure>
</xbrli:unit>
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<us-gaap:CashAndCashEquivalentsAtCarryingValue contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 1683000 </us-gaap:CashAndCashEquivalentsAtCarryingValue>
<us-gaap:AccountsReceivableNetCurrent contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 3066000 </us-gaap:AccountsReceivableNetCurrent>
<us-gaap:AccountsReceivableNetCurrent contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 2689000 </us-gaap:AccountsReceivableNetCurrent>
<us-gaap:InventoryNet contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 10535000 </us-gaap:InventoryNet>
<us-gaap:InventoryNet contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 10656000 </us-gaap:InventoryNet>
<us-gaap:PrepaidExpenseCurrent contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 348000 </us-gaap:PrepaidExpenseCurrent>
<us-gaap:PrepaidExpenseCurrent contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 208000 </us-gaap:PrepaidExpenseCurrent>
<us-gaap:AssetsCurrent contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 15017000 </us-gaap:AssetsCurrent>
<us-gaap:AssetsCurrent contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 15236000 </us-gaap:AssetsCurrent>
<us-gaap:DepositsAssetsNoncurrent contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 23000 </us-gaap:DepositsAssetsNoncurrent>
<us-gaap:DepositsAssetsNoncurrent contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 23000 </us-gaap:DepositsAssetsNoncurrent>
<us-gaap:Assets contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 17556000 </us-gaap:Assets>
<us-gaap:Assets contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 19380000 </us-gaap:Assets>
<us-gaap:AccountsPayableCurrent contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 1833000 </us-gaap:AccountsPayableCurrent>
<us-gaap:AccountsPayableCurrent contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 1279000 </us-gaap:AccountsPayableCurrent>
<us-gaap:ProductWarrantyAccrualClassifiedCurrent contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 46000 </us-gaap:ProductWarrantyAccrualClassifiedCurrent>
<us-gaap:ProductWarrantyAccrualClassifiedCurrent contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 75000 </us-gaap:ProductWarrantyAccrualClassifiedCurrent>
<us-gaap:LinesOfCreditCurrent contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 250000 </us-gaap:LinesOfCreditCurrent>
<us-gaap:LinesOfCreditCurrent contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 600000 </us-gaap:LinesOfCreditCurrent>
<us-gaap:LiabilitiesCurrent contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 3312000 </us-gaap:LiabilitiesCurrent>
<us-gaap:LiabilitiesCurrent contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 3298000 </us-gaap:LiabilitiesCurrent>
<us-gaap:Liabilities contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 5348000 </us-gaap:Liabilities>
<us-gaap:Liabilities contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 7825000 </us-gaap:Liabilities>
<us-gaap:CommonStockValue contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 8000 </us-gaap:CommonStockValue>
<us-gaap:CommonStockValue contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 8000 </us-gaap:CommonStockValue>
<us-gaap:AdditionalPaidInCapital contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 26134000 </us-gaap:AdditionalPaidInCapital>
<us-gaap:AdditionalPaidInCapital contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 26160000 </us-gaap:AdditionalPaidInCapital>
<us-gaap:RetainedEarningsAccumulatedDeficit contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> -13934000 </us-gaap:RetainedEarningsAccumulatedDeficit>
<us-gaap:RetainedEarningsAccumulatedDeficit contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> -14613000 </us-gaap:RetainedEarningsAccumulatedDeficit>
<us-gaap:LiabilitiesAndStockholdersEquity contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 17556000 </us-gaap:LiabilitiesAndStockholdersEquity>
<us-gaap:LiabilitiesAndStockholdersEquity contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 19380000 </us-gaap:LiabilitiesAndStockholdersEquity>
<us-gaap:OtherAssetsNoncurrent contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 1437000 </us-gaap:OtherAssetsNoncurrent>
<us-gaap:OtherAssetsNoncurrent contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 3079000 </us-gaap:OtherAssetsNoncurrent>
<us-gaap:ContractWithCustomerLiabilityCurrent contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 3000 </us-gaap:ContractWithCustomerLiabilityCurrent>
<us-gaap:ContractWithCustomerLiabilityCurrent contextRef="AsOf2019-12-29" unitRef="USD" xsi:nil="true"/>
<us-gaap:CommonStockParOrStatedValuePerShare contextRef="AsOf2019-09-29" unitRef="USDPShares" decimals="INF"> 0.001 </us-gaap:CommonStockParOrStatedValuePerShare>
<us-gaap:CommonStockParOrStatedValuePerShare contextRef="AsOf2019-12-29" unitRef="USDPShares" decimals="INF"> 0.001 </us-gaap:CommonStockParOrStatedValuePerShare>
<us-gaap:CommonStockSharesAuthorized contextRef="AsOf2019-09-29" unitRef="Shares" decimals="INF"> 2000000000 </us-gaap:CommonStockSharesAuthorized>
<us-gaap:CommonStockSharesAuthorized contextRef="AsOf2019-12-29" unitRef="Shares" decimals="INF"> 2000000000 </us-gaap:CommonStockSharesAuthorized>
<us-gaap:CommonStockSharesIssued contextRef="AsOf2019-09-29" unitRef="Shares" decimals="INF"> 8436422 </us-gaap:CommonStockSharesIssued>
<us-gaap:CommonStockSharesIssued contextRef="AsOf2019-12-29" unitRef="Shares" decimals="INF"> 8436422 </us-gaap:CommonStockSharesIssued>
<us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 5887000 </us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax>
<us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 5891000 </us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax>
<us-gaap:CostOfGoodsAndServicesSold contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 4420000 </us-gaap:CostOfGoodsAndServicesSold>
<us-gaap:CostOfGoodsAndServicesSold contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 4448000 </us-gaap:CostOfGoodsAndServicesSold>
<us-gaap:GrossProfit contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 1467000 </us-gaap:GrossProfit>
<us-gaap:GrossProfit contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 1443000 </us-gaap:GrossProfit>
<us-gaap:GeneralAndAdministrativeExpense contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 749000 </us-gaap:GeneralAndAdministrativeExpense>
<us-gaap:GeneralAndAdministrativeExpense contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 743000 </us-gaap:GeneralAndAdministrativeExpense>
<us-gaap:OperatingIncomeLoss contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 718000 </us-gaap:OperatingIncomeLoss>
<us-gaap:OperatingIncomeLoss contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 700000 </us-gaap:OperatingIncomeLoss>
<us-gaap:DerivativeGainLossOnDerivativeNet contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 1251000 </us-gaap:DerivativeGainLossOnDerivativeNet>
<us-gaap:DerivativeGainLossOnDerivativeNet contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> -1385000 </us-gaap:DerivativeGainLossOnDerivativeNet>
<us-gaap:DerivativeGainLossOnDerivativeNet contextRef="From2019-09-30to2019-12-29_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="USD" xsi:nil="true"/>
<us-gaap:DerivativeGainLossOnDerivativeNet contextRef="From2019-09-30to2019-12-29_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" xsi:nil="true"/>
<us-gaap:DerivativeGainLossOnDerivativeNet contextRef="From2019-09-30to2019-12-29_us-gaap_IntersegmentEliminationMember" unitRef="USD" decimals="-3"> -1251000 </us-gaap:DerivativeGainLossOnDerivativeNet>
<us-gaap:DerivativeGainLossOnDerivativeNet contextRef="From2018-10-01to2018-12-30_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="USD" xsi:nil="true"/>
<us-gaap:DerivativeGainLossOnDerivativeNet contextRef="From2018-10-01to2018-12-30_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" xsi:nil="true"/>
<us-gaap:DerivativeGainLossOnDerivativeNet contextRef="From2018-10-01to2018-12-30_us-gaap_IntersegmentEliminationMember" unitRef="USD" decimals="-3"> 1385000 </us-gaap:DerivativeGainLossOnDerivativeNet>
<us-gaap:DerivativeGainLossOnDerivativeNet contextRef="From2019-09-30to2019-12-29_us-gaap_WarrantMember" unitRef="USD" decimals="-3"> 1251000 </us-gaap:DerivativeGainLossOnDerivativeNet>
<us-gaap:DerivativeGainLossOnDerivativeNet contextRef="From2018-10-01to2018-12-30_us-gaap_WarrantMember" unitRef="USD" decimals="-3"> -1385000 </us-gaap:DerivativeGainLossOnDerivativeNet>
<us-gaap:InterestExpense contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 5000 </us-gaap:InterestExpense>
<us-gaap:InterestExpense contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 6000 </us-gaap:InterestExpense>
<us-gaap:InterestExpense contextRef="From2019-09-30to2019-12-29_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="USD" xsi:nil="true"/>
<us-gaap:InterestExpense contextRef="From2019-09-30to2019-12-29_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" xsi:nil="true"/>
<us-gaap:InterestExpense contextRef="From2019-09-30to2019-12-29_us-gaap_IntersegmentEliminationMember" unitRef="USD" decimals="-3"> 5000 </us-gaap:InterestExpense>
<us-gaap:InterestExpense contextRef="From2018-10-01to2018-12-30_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="USD" xsi:nil="true"/>
<us-gaap:InterestExpense contextRef="From2018-10-01to2018-12-30_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" xsi:nil="true"/>
<us-gaap:InterestExpense contextRef="From2018-10-01to2018-12-30_us-gaap_IntersegmentEliminationMember" unitRef="USD" decimals="-3"> 6000 </us-gaap:InterestExpense>
<us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> -538000 </us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest>
<us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 2079000 </us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest>
<OPXS:DeemedDividendsOnParticipatingSecurities contextRef="From2019-09-30to2019-12-29" unitRef="USD" xsi:nil="true"/>
<OPXS:DeemedDividendsOnParticipatingSecurities contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 671000 </OPXS:DeemedDividendsOnParticipatingSecurities>
<us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> -679000 </us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic>
<us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 1354000 </us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic>
<us-gaap:EarningsPerShareBasicAndDiluted contextRef="From2019-09-30to2019-12-29" unitRef="USDPShares" decimals="INF"> -0.08 </us-gaap:EarningsPerShareBasicAndDiluted>
<us-gaap:EarningsPerShareBasicAndDiluted contextRef="From2018-10-01to2018-12-30" unitRef="USDPShares" decimals="INF"> 0.16 </us-gaap:EarningsPerShareBasicAndDiluted>
<us-gaap:WeightedAverageNumberOfSharesOutstandingBasic contextRef="From2019-09-30to2019-12-29" unitRef="Shares" decimals="INF"> 8436422 </us-gaap:WeightedAverageNumberOfSharesOutstandingBasic>
<us-gaap:WeightedAverageNumberOfSharesOutstandingBasic contextRef="From2018-10-01to2018-12-30" unitRef="Shares" decimals="INF"> 8333353 </us-gaap:WeightedAverageNumberOfSharesOutstandingBasic>
<us-gaap:EarningsPerShareDiluted contextRef="From2019-09-30to2019-12-29" unitRef="USDPShares" decimals="INF"> -0.08 </us-gaap:EarningsPerShareDiluted>
<us-gaap:EarningsPerShareDiluted contextRef="From2018-10-01to2018-12-30" unitRef="USDPShares" decimals="INF"> 0.16 </us-gaap:EarningsPerShareDiluted>
<us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding contextRef="From2019-09-30to2019-12-29" unitRef="Shares" decimals="INF"> 8436422 </us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding>
<us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding contextRef="From2018-10-01to2018-12-30" unitRef="Shares" decimals="INF"> 8494242 </us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding>
<us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding contextRef="From2019-09-30to2019-12-29_custom_WarrantsMember" unitRef="Shares" decimals="INF"> 4125200 </us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding>
<us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding contextRef="From2019-09-30to2019-12-29_us-gaap_RestrictedStockMember" unitRef="Shares" decimals="INF"> 216500 </us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding>
<us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding contextRef="From2019-09-30to2019-12-29_custom_WarrantOneMember" unitRef="Shares" decimals="INF"> 4260785 </us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding>
<us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding contextRef="From2019-09-30to2019-12-29_custom_RestrictedStockOneMember" unitRef="Shares" decimals="INF"> 99000 </us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding>
<us-gaap:Dividends contextRef="From2019-09-30to2019-12-29" unitRef="USD" xsi:nil="true"/>
<us-gaap:DepreciationDepletionAndAmortization contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 66000 </us-gaap:DepreciationDepletionAndAmortization>
<us-gaap:DepreciationDepletionAndAmortization contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 85000 </us-gaap:DepreciationDepletionAndAmortization>
<us-gaap:DepreciationDepletionAndAmortization contextRef="From2019-09-30to2019-12-29_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="USD" decimals="-3"> 6000 </us-gaap:DepreciationDepletionAndAmortization>
<us-gaap:DepreciationDepletionAndAmortization contextRef="From2019-09-30to2019-12-29_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" decimals="-3"> 60000 </us-gaap:DepreciationDepletionAndAmortization>
<us-gaap:DepreciationDepletionAndAmortization contextRef="From2019-09-30to2019-12-29_us-gaap_IntersegmentEliminationMember" unitRef="USD" xsi:nil="true"/>
<us-gaap:DepreciationDepletionAndAmortization contextRef="From2018-10-01to2018-12-30_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="USD" decimals="-3"> 9000 </us-gaap:DepreciationDepletionAndAmortization>
<us-gaap:DepreciationDepletionAndAmortization contextRef="From2018-10-01to2018-12-30_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" decimals="-3"> 76000 </us-gaap:DepreciationDepletionAndAmortization>
<us-gaap:DepreciationDepletionAndAmortization contextRef="From2018-10-01to2018-12-30_us-gaap_IntersegmentEliminationMember" unitRef="USD" xsi:nil="true"/>
<us-gaap:ShareBasedCompensation contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 26000 </us-gaap:ShareBasedCompensation>
<us-gaap:ShareBasedCompensation contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 36000 </us-gaap:ShareBasedCompensation>
<us-gaap:IncreaseDecreaseInAccountsReceivable contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> -377000 </us-gaap:IncreaseDecreaseInAccountsReceivable>
<us-gaap:IncreaseDecreaseInAccountsReceivable contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 270000 </us-gaap:IncreaseDecreaseInAccountsReceivable>
<us-gaap:IncreaseDecreaseInInventories contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 121000 </us-gaap:IncreaseDecreaseInInventories>
<us-gaap:IncreaseDecreaseInInventories contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 882000 </us-gaap:IncreaseDecreaseInInventories>
<us-gaap:IncreaseDecreaseInPrepaidExpense contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> -140000 </us-gaap:IncreaseDecreaseInPrepaidExpense>
<us-gaap:IncreaseDecreaseInPrepaidExpense contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> -17000 </us-gaap:IncreaseDecreaseInPrepaidExpense>
<us-gaap:IncreaseDecreaseInAccountsPayableAndAccruedLiabilities contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> -865000 </us-gaap:IncreaseDecreaseInAccountsPayableAndAccruedLiabilities>
<us-gaap:IncreaseDecreaseInAccountsPayableAndAccruedLiabilities contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 492000 </us-gaap:IncreaseDecreaseInAccountsPayableAndAccruedLiabilities>
<us-gaap:IncreaseDecreaseInIncomeTaxesPayableNetOfIncomeTaxesReceivable contextRef="From2019-09-30to2019-12-29" unitRef="USD" xsi:nil="true"/>
<us-gaap:IncreaseDecreaseInIncomeTaxesPayableNetOfIncomeTaxesReceivable contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 54000 </us-gaap:IncreaseDecreaseInIncomeTaxesPayableNetOfIncomeTaxesReceivable>
<OPXS:IncreaseDecreaseInAccruedWarrantyCosts contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> -29000 </OPXS:IncreaseDecreaseInAccruedWarrantyCosts>
<OPXS:IncreaseDecreaseInAccruedWarrantyCosts contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 28000 </OPXS:IncreaseDecreaseInAccruedWarrantyCosts>
<us-gaap:IncreaseDecreaseInPrepaidRoyalties contextRef="From2019-09-30to2019-12-29" unitRef="USD" xsi:nil="true"/>
<us-gaap:IncreaseDecreaseInPrepaidRoyalties contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> -8000 </us-gaap:IncreaseDecreaseInPrepaidRoyalties>
<us-gaap:IncreaseDecreaseInContractWithCustomerLiability contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> -3000 </us-gaap:IncreaseDecreaseInContractWithCustomerLiability>
<us-gaap:IncreaseDecreaseInContractWithCustomerLiability contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> -303000 </us-gaap:IncreaseDecreaseInContractWithCustomerLiability>
<us-gaap:AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivities contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 973000 </us-gaap:AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivities>
<us-gaap:AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivities contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> -2176000 </us-gaap:AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivities>
<us-gaap:NetCashProvidedByUsedInOperatingActivities contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 294000 </us-gaap:NetCashProvidedByUsedInOperatingActivities>
<us-gaap:NetCashProvidedByUsedInOperatingActivities contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> -151000 </us-gaap:NetCashProvidedByUsedInOperatingActivities>
<us-gaap:PaymentsToAcquirePropertyPlantAndEquipment contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 29000 </us-gaap:PaymentsToAcquirePropertyPlantAndEquipment>
<us-gaap:PaymentsToAcquirePropertyPlantAndEquipment contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 18000 </us-gaap:PaymentsToAcquirePropertyPlantAndEquipment>
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<us-gaap:PaymentsToAcquirePropertyPlantAndEquipment contextRef="From2019-09-30to2019-12-29_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" decimals="-3"> 16000 </us-gaap:PaymentsToAcquirePropertyPlantAndEquipment>
<us-gaap:PaymentsToAcquirePropertyPlantAndEquipment contextRef="From2019-09-30to2019-12-29_us-gaap_IntersegmentEliminationMember" unitRef="USD" xsi:nil="true"/>
<us-gaap:PaymentsToAcquirePropertyPlantAndEquipment contextRef="From2018-10-01to2018-12-30_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="USD" decimals="-3"> 4000 </us-gaap:PaymentsToAcquirePropertyPlantAndEquipment>
<us-gaap:PaymentsToAcquirePropertyPlantAndEquipment contextRef="From2018-10-01to2018-12-30_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" decimals="-3"> 14000 </us-gaap:PaymentsToAcquirePropertyPlantAndEquipment>
<us-gaap:PaymentsToAcquirePropertyPlantAndEquipment contextRef="From2018-10-01to2018-12-30_us-gaap_IntersegmentEliminationMember" unitRef="USD" xsi:nil="true"/>
<us-gaap:NetCashProvidedByUsedInInvestingActivities contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> -29000 </us-gaap:NetCashProvidedByUsedInInvestingActivities>
<us-gaap:NetCashProvidedByUsedInInvestingActivities contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> -18000 </us-gaap:NetCashProvidedByUsedInInvestingActivities>
<us-gaap:NetCashProvidedByUsedInFinancingActivities contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 350000 </us-gaap:NetCashProvidedByUsedInFinancingActivities>
<us-gaap:NetCashProvidedByUsedInFinancingActivities contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 200000 </us-gaap:NetCashProvidedByUsedInFinancingActivities>
<us-gaap:InterestPaidNet contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 5000 </us-gaap:InterestPaidNet>
<us-gaap:InterestPaidNet contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 6000 </us-gaap:InterestPaidNet>
<us-gaap:NonoperatingIncomeExpense contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> -1256000 </us-gaap:NonoperatingIncomeExpense>
<us-gaap:NonoperatingIncomeExpense contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 1379000 </us-gaap:NonoperatingIncomeExpense>
<us-gaap:RestrictedStockValueSharesIssuedNetOfTaxWithholdings contextRef="From2019-01-06to2019-01-07_custom_ThreeDirectorsAndOfficersMember" unitRef="USD" decimals="-3"> 37000 </us-gaap:RestrictedStockValueSharesIssuedNetOfTaxWithholdings>
<us-gaap:RestrictedStockValueSharesIssuedNetOfTaxWithholdings contextRef="From2020-01-06to2020-01-07_custom_OneDirectorAndTwoOfficersMember_us-gaap_SubsequentEventMember" unitRef="USD" decimals="-3"> 54000 </us-gaap:RestrictedStockValueSharesIssuedNetOfTaxWithholdings>
<us-gaap:RestrictedStockSharesIssuedNetOfSharesForTaxWithholdings contextRef="From2019-01-06to2019-01-07_custom_ThreeDirectorsAndOfficersMember" unitRef="Shares" decimals="INF"> 82500 </us-gaap:RestrictedStockSharesIssuedNetOfSharesForTaxWithholdings>
<us-gaap:RestrictedStockSharesIssuedNetOfSharesForTaxWithholdings contextRef="From2020-01-06to2020-01-07_custom_OneDirectorAndTwoOfficersMember_us-gaap_SubsequentEventMember" unitRef="Shares" decimals="INF"> 84500 </us-gaap:RestrictedStockSharesIssuedNetOfSharesForTaxWithholdings>
<us-gaap:StockIssuedDuringPeriodSharesNewIssues contextRef="From2019-01-06to2019-01-07_custom_ThreeDirectorsAndOfficersMember" unitRef="Shares" decimals="INF"> 55565 </us-gaap:StockIssuedDuringPeriodSharesNewIssues>
<us-gaap:StockIssuedDuringPeriodSharesNewIssues contextRef="From2020-01-06to2020-01-07_custom_OneDirectorAndTwoOfficersMember_us-gaap_SubsequentEventMember" unitRef="Shares" decimals="INF"> 59447 </us-gaap:StockIssuedDuringPeriodSharesNewIssues>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized contextRef="AsOf2019-12-29_custom_TwoThousandNineStockOptionPlanMember" unitRef="Shares" decimals="INF"> 75000 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized>
<us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice contextRef="From2018-10-01to2019-09-29_custom_TwoThousandNineStockOptionPlanMember" unitRef="USDPShares" decimals="INF"> 10 </us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1 contextRef="From2018-12-28to2019-01-02_custom_TwoThousandSixteenRestrictedStockUnitPlanMember_srt_ChiefExecutiveOfficerMember"> P3Y </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1 contextRef="From2018-12-28to2019-01-02_custom_TwoThousandSixteenRestrictedStockUnitPlanMember_srt_ChiefFinancialOfficerMember"> P3Y </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1 contextRef="From2018-12-28to2019-01-02_custom_TwoThousandSixteenRestrictedStockUnitPlanMember"> P3Y </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate contextRef="From2018-10-01to2019-09-29_custom_TwoThousandNineStockOptionPlanMember"> 2020-12-18 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod contextRef="From2018-12-28to2019-01-02_custom_TwoThousandSixteenRestrictedStockUnitPlanMember_srt_ChiefExecutiveOfficerMember" unitRef="Shares" decimals="INF"> 150000 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod contextRef="From2018-12-28to2019-01-02_custom_TwoThousandSixteenRestrictedStockUnitPlanMember_srt_ChiefFinancialOfficerMember" unitRef="Shares" decimals="INF"> 50000 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod contextRef="From2018-10-01to2019-09-29_custom_TwoThousandSixteenRestrictedStockUnitPlanMember" unitRef="Shares" decimals="INF"> 200000 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod contextRef="From2019-09-30to2019-12-29_custom_TwoThousandSixteenRestrictedStockUnitPlanMember" unitRef="Shares" xsi:nil="true"/>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross contextRef="From2019-09-30to2019-12-29_custom_TwoThousandNineStockOptionPlanMember" unitRef="Shares" xsi:nil="true"/>
<OPXS:SharebasedCompensationArrangementBySharebasedPaymentAwardAwardVestingRightsPercentageNextTwelveMonths contextRef="From2018-12-28to2019-01-02_custom_TwoThousandSixteenRestrictedStockUnitPlanMember_srt_ChiefExecutiveOfficerMember" unitRef="Pure" decimals="INF"> 0.34 </OPXS:SharebasedCompensationArrangementBySharebasedPaymentAwardAwardVestingRightsPercentageNextTwelveMonths>
<OPXS:SharebasedCompensationArrangementBySharebasedPaymentAwardAwardVestingRightsPercentageNextTwelveMonths contextRef="From2018-12-28to2019-01-02_custom_TwoThousandSixteenRestrictedStockUnitPlanMember_srt_ChiefFinancialOfficerMember" unitRef="Pure" decimals="INF"> 0.34 </OPXS:SharebasedCompensationArrangementBySharebasedPaymentAwardAwardVestingRightsPercentageNextTwelveMonths>
<OPXS:SharebasedCompensationArrangementBySharebasedPaymentAwardAwardVestingRightsPercentageThereAfter contextRef="From2018-12-28to2019-01-02_custom_TwoThousandSixteenRestrictedStockUnitPlanMember_srt_ChiefExecutiveOfficerMember" unitRef="Pure" decimals="INF"> 0.33 </OPXS:SharebasedCompensationArrangementBySharebasedPaymentAwardAwardVestingRightsPercentageThereAfter>
<OPXS:SharebasedCompensationArrangementBySharebasedPaymentAwardAwardVestingRightsPercentageThereAfter contextRef="From2018-12-28to2019-01-02_custom_TwoThousandSixteenRestrictedStockUnitPlanMember_srt_ChiefFinancialOfficerMember" unitRef="Pure" decimals="INF"> 0.33 </OPXS:SharebasedCompensationArrangementBySharebasedPaymentAwardAwardVestingRightsPercentageThereAfter>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedIntrinsicValue contextRef="AsOf2019-01-02_custom_TwoThousandSixteenRestrictedStockUnitPlanMember" unitRef="USDPShares" decimals="INF"> 1.32 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedIntrinsicValue>
<OPXS:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsAmortizedGrantDateFairValue contextRef="From2018-12-28to2019-01-02_custom_TwoThousandSixteenRestrictedStockUnitPlanMember" unitRef="USD" decimals="-3"> 264000 </OPXS:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsAmortizedGrantDateFairValue>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod contextRef="From2018-10-01to2019-09-29_custom_TwoThousandSixteenRestrictedStockUnitPlanMember" unitRef="Shares" decimals="INF"> 82500 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod contextRef="From2019-09-30to2019-12-29_custom_TwoThousandSixteenRestrictedStockUnitPlanMember" unitRef="Shares" xsi:nil="true"/>
<us-gaap:AllocatedShareBasedCompensationExpense contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 26000 </us-gaap:AllocatedShareBasedCompensationExpense>
<us-gaap:AllocatedShareBasedCompensationExpense contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 36000 </us-gaap:AllocatedShareBasedCompensationExpense>
<us-gaap:AllocatedShareBasedCompensationExpense contextRef="From2019-09-30to2019-12-29_us-gaap_RestrictedStockUnitsRSUMember" unitRef="USD" decimals="-3"> 26000 </us-gaap:AllocatedShareBasedCompensationExpense>
<us-gaap:AllocatedShareBasedCompensationExpense contextRef="From2018-10-01to2018-12-30_us-gaap_RestrictedStockUnitsRSUMember" unitRef="USD" decimals="-3"> 36000 </us-gaap:AllocatedShareBasedCompensationExpense>
<us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 200000 </us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized>
<us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized contextRef="AsOf2019-09-29_us-gaap_RestrictedStockUnitsRSUMember" unitRef="USD" decimals="-3"> 200000 </us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized>
<us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 174000 </us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized>
<us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized contextRef="AsOf2019-12-29_us-gaap_RestrictedStockUnitsRSUMember" unitRef="USD" decimals="-3"> 174000 </us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized>
<us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1 contextRef="AsOf2018-09-30_us-gaap_WarrantMember" unitRef="USDPShares" id="Foot-00-0" decimals="INF"> 1.50 </us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1>
<us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1 contextRef="AsOf2016-08-26_custom_NewShareholdersMember_custom_UnderwriterMember" unitRef="USDPShares" decimals="INF"> 1.50 </us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1>
<us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1 contextRef="AsOf2019-09-29_us-gaap_WarrantMember" unitRef="USDPShares" id="Foot-00-1" decimals="INF"> 1.50 </us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1>
<us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1 contextRef="AsOf2018-12-30_us-gaap_WarrantMember" unitRef="USDPShares" id="Foot-00-2" decimals="INF"> 1.50 </us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1>
<us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1 contextRef="AsOf2019-12-30_us-gaap_WarrantMember" unitRef="USDPShares" id="Foot-00-3" decimals="INF"> 1.50 </us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_custom_USGovernmentMember_us-gaap_SalesRevenueNetMember" unitRef="Pure" decimals="INF"> 0.56 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_custom_USDefenseContractorOneMember_us-gaap_SalesRevenueNetMember" unitRef="Pure" decimals="INF"> 0.11 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_custom_USDefenseContractorTwoMember_us-gaap_SalesRevenueNetMember" unitRef="Pure" decimals="INF"> 0.12 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_custom_OneCommercialCustomerMember_us-gaap_SalesRevenueNetMember" unitRef="Pure" decimals="INF"> 0.07 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_custom_AllOtherCustomersMember_us-gaap_SalesRevenueNetMember" unitRef="Pure" decimals="INF"> 0.14 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_us-gaap_SalesRevenueNetMember_country_US" unitRef="Pure" decimals="INF"> 0.96 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_us-gaap_SalesRevenueNetMember_country_CA" unitRef="Pure" decimals="INF"> 0.04 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_us-gaap_SalesRevenueNetMember_custom_USGovernmentAgenciesMember" unitRef="Pure" decimals="INF"> 0.47 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_us-gaap_SalesRevenueNetMember_custom_MajorUSDefenseContractorOneMember" unitRef="Pure" decimals="INF"> 0.20 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_us-gaap_SalesRevenueNetMember_custom_MajorCommercialCustomerOneMember" unitRef="Pure" decimals="INF"> 0.07 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_us-gaap_SalesRevenueNetMember_custom_AllOtherCustomersMember" unitRef="Pure" decimals="INF"> 0.08 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_us-gaap_SalesRevenueNetMember_custom_MajorUSDefenseContractorTwoMember" unitRef="Pure" decimals="INF"> 0.11 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_us-gaap_SalesRevenueNetMember_custom_MajorUSDefenseContractorThreeMember" unitRef="Pure" decimals="INF"> 0.07 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_custom_DomesticMilitaryCustomersMember_custom_OptexSystemsOPXRichardsonTexasMember_us-gaap_SalesRevenueNetMember" unitRef="Pure" decimals="INF"> 0.93 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_custom_ForeignMilitaryCustomersMember_custom_OptexSystemsOPXRichardsonTexasMember_us-gaap_SalesRevenueNetMember" unitRef="Pure" decimals="INF"> 0.07 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_custom_USGovernmentMember_custom_OptexSystemsOPXRichardsonTexasMember_us-gaap_SalesRevenueNetMember" unitRef="Pure" decimals="INF"> 0.46 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_custom_USDefenseContractorOneMember_custom_OptexSystemsOPXRichardsonTexasMember_us-gaap_SalesRevenueNetMember" unitRef="Pure" decimals="INF"> 0.11 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_custom_USDefenseContractorTwoMember_custom_OptexSystemsOPXRichardsonTexasMember_us-gaap_SalesRevenueNetMember" unitRef="Pure" decimals="INF"> 0.09 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_custom_CommercialCustomersMember_custom_AppliedOpticsCenterAOCDallasMember_us-gaap_SalesRevenueNetMember" unitRef="Pure" decimals="INF"> 0.22 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_custom_SubcontractedCustomersMember_custom_AppliedOpticsCenterAOCDallasMember_us-gaap_SalesRevenueNetMember" unitRef="Pure" decimals="INF"> 0.78 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_custom_AppliedOpticsCenterAOCDallasMember_us-gaap_SalesRevenueNetMember_custom_RevenuesFromExternalCustomersMember" unitRef="Pure" decimals="INF"> 0.86 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_custom_MilitaryContractsMember_custom_AppliedOpticsCenterAOCDallasMember_custom_IntersegmentSalesRevenueNetMember" unitRef="Pure" decimals="INF"> 0.14 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_custom_USGovernmentMember_custom_AppliedOpticsCenterAOCDallasMember_us-gaap_SalesRevenueNetMember" unitRef="Pure" decimals="INF"> 0.10 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_custom_OneMajorCommercialCustomersMember_custom_AppliedOpticsCenterAOCDallasMember_us-gaap_SalesRevenueNetMember" unitRef="Pure" decimals="INF"> 0.07 </us-gaap:ConcentrationRiskPercentage1>
<us-gaap:ConcentrationRiskPercentage1 contextRef="From2019-09-30to2019-12-29_custom_OneMajorDefenseContractorMember_custom_AppliedOpticsCenterAOCDallasMember_us-gaap_SalesRevenueNetMember" unitRef="Pure" decimals="INF"> 0.12 </us-gaap:ConcentrationRiskPercentage1>
<OPXS:NumberOfEmployees contextRef="From2019-09-30to2019-12-29" unitRef="Employee" decimals="INF"> 105 </OPXS:NumberOfEmployees>
<OPXS:NumberOfEmployees contextRef="From2019-09-30to2019-12-29_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="Employee" decimals="INF"> 70 </OPXS:NumberOfEmployees>
<OPXS:NumberOfEmployees contextRef="From2019-09-30to2019-12-29_custom_AppliedOpticsCenterAOCDallasMember" unitRef="Employee" decimals="INF"> 35 </OPXS:NumberOfEmployees>
<OPXS:WarrantyReserve contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 46000 </OPXS:WarrantyReserve>
<OPXS:WarrantyReserve contextRef="AsOf2018-09-30" unitRef="USD" decimals="-3"> 101000 </OPXS:WarrantyReserve>
<OPXS:WarrantyReserve contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 75000 </OPXS:WarrantyReserve>
<OPXS:WarrantyReserve contextRef="AsOf2018-12-30" unitRef="USD" decimals="-3"> 73000 </OPXS:WarrantyReserve>
<OPXS:DeferredContractRevenue contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 3000 </OPXS:DeferredContractRevenue>
<OPXS:RefundOfCustomerDeposit contextRef="From2019-09-30to2019-12-29" unitRef="USD" xsi:nil="true"/>
<us-gaap:ContractWithCustomerRefundLiability contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 3000 </us-gaap:ContractWithCustomerRefundLiability>
<us-gaap:ContractWithCustomerRefundLiability contextRef="AsOf2019-12-29" unitRef="USD" xsi:nil="true"/>
<us-gaap:DeferredTaxAssetsValuationAllowance contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 1000000 </us-gaap:DeferredTaxAssetsValuationAllowance>
<us-gaap:DeferredTaxAssetsValuationAllowance contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 1000000 </us-gaap:DeferredTaxAssetsValuationAllowance>
<us-gaap:DeferredTaxAssetsNet contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 1414000 </us-gaap:DeferredTaxAssetsNet>
<us-gaap:DeferredTaxAssetsNet contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 1341000 </us-gaap:DeferredTaxAssetsNet>
<us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount contextRef="From2019-09-30to2019-12-29_us-gaap_RestrictedStockMember" unitRef="Shares" decimals="INF"> 60000 </us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount>
<us-gaap:WeightedAverageNumberDilutedSharesOutstandingAdjustment contextRef="From2019-09-30to2019-12-29_custom_WarrantsMember" unitRef="Shares" decimals="INF"> 506604 </us-gaap:WeightedAverageNumberDilutedSharesOutstandingAdjustment>
<us-gaap:WeightedAverageNumberDilutedSharesOutstandingAdjustment contextRef="From2019-09-30to2019-12-29_us-gaap_RestrictedStockMember" unitRef="Shares" decimals="INF"> 114605 </us-gaap:WeightedAverageNumberDilutedSharesOutstandingAdjustment>
<us-gaap:WeightedAverageNumberDilutedSharesOutstandingAdjustment contextRef="From2019-09-30to2019-12-29_custom_WarrantOneMember" unitRef="Shares" decimals="INF"> 83545 </us-gaap:WeightedAverageNumberDilutedSharesOutstandingAdjustment>
<us-gaap:WeightedAverageNumberDilutedSharesOutstandingAdjustment contextRef="From2019-09-30to2019-12-29_custom_RestrictedStockOneMember" unitRef="Shares" decimals="INF"> 77344 </us-gaap:WeightedAverageNumberDilutedSharesOutstandingAdjustment>
<us-gaap:UndistributedEarnings contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 0 </us-gaap:UndistributedEarnings>
<us-gaap:InventoryRawMaterials contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 7395000 </us-gaap:InventoryRawMaterials>
<us-gaap:InventoryRawMaterials contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 7260000 </us-gaap:InventoryRawMaterials>
<us-gaap:InventoryWorkInProcess contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 3599000 </us-gaap:InventoryWorkInProcess>
<us-gaap:InventoryWorkInProcess contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 3722000 </us-gaap:InventoryWorkInProcess>
<us-gaap:InventoryFinishedGoods contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 254000 </us-gaap:InventoryFinishedGoods>
<us-gaap:InventoryFinishedGoods contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 387000 </us-gaap:InventoryFinishedGoods>
<us-gaap:InventoryGross contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 11248000 </us-gaap:InventoryGross>
<us-gaap:InventoryGross contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 11369000 </us-gaap:InventoryGross>
<us-gaap:InventoryValuationReserves contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 713000 </us-gaap:InventoryValuationReserves>
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<us-gaap:Revenues contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 5891000 </us-gaap:Revenues>
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<us-gaap:Revenues contextRef="From2019-09-30to2019-12-29_custom_RevenuesFromExternalCustomersMember_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="USD" decimals="-3"> 3644000 </us-gaap:Revenues>
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<us-gaap:Revenues contextRef="From2019-09-30to2019-12-29_us-gaap_IntersegmentEliminationMember" unitRef="USD" decimals="-3"> -373000 </us-gaap:Revenues>
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<us-gaap:LineOfCredit contextRef="AsOf2019-09-29_custom_AvidbankMember_us-gaap_RevolvingCreditFacilityMember" unitRef="USD" decimals="-3"> 250000 </us-gaap:LineOfCredit>
<us-gaap:LineOfCredit contextRef="AsOf2019-12-29_custom_AvidbankMember_us-gaap_RevolvingCreditFacilityMember" unitRef="USD" decimals="-3"> 600000 </us-gaap:LineOfCredit>
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<us-gaap:FairValueAdjustmentOfWarrants contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 1400000 </us-gaap:FairValueAdjustmentOfWarrants>
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<us-gaap:ContractWithCustomerLiabilityNoncurrent contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 3287000 </us-gaap:ContractWithCustomerLiabilityNoncurrent>
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<us-gaap:DeferredIncomeTaxLiabilities contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 2400000 </us-gaap:DeferredIncomeTaxLiabilities>
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<us-gaap:OperatingLeaseRightOfUseAsset contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 1715000 </us-gaap:OperatingLeaseRightOfUseAsset>
<us-gaap:OperatingLeaseRightOfUseAsset contextRef="AsOf2019-12-29_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="USD" decimals="-3"> 305000 </us-gaap:OperatingLeaseRightOfUseAsset>
<us-gaap:OperatingLeaseRightOfUseAsset contextRef="AsOf2019-12-29_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" decimals="-3"> 1376000 </us-gaap:OperatingLeaseRightOfUseAsset>
<us-gaap:OperatingLeaseRightOfUseAsset contextRef="AsOf2019-12-29_us-gaap_AccountingStandardsUpdate201602Member" unitRef="USD" decimals="-3"> 1700000 </us-gaap:OperatingLeaseRightOfUseAsset>
<us-gaap:OperatingLeaseRightOfUseAsset contextRef="AsOf2019-12-29_us-gaap_OfficeEquipmentMember" unitRef="USD" decimals="-3"> 34000 </us-gaap:OperatingLeaseRightOfUseAsset>
<us-gaap:OperatingLeaseLiability contextRef="AsOf2019-12-29" unitRef="USD" id="Foot-04-0" decimals="-3"> 1789000 </us-gaap:OperatingLeaseLiability>
<us-gaap:OperatingLeaseLiability contextRef="AsOf2019-12-29_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="USD" id="Foot-04-1" decimals="-3"> 351000 </us-gaap:OperatingLeaseLiability>
<us-gaap:OperatingLeaseLiability contextRef="AsOf2019-12-29_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" id="Foot-04-2" decimals="-3"> 1404000 </us-gaap:OperatingLeaseLiability>
<us-gaap:OperatingLeaseLiability contextRef="AsOf2019-12-29_us-gaap_AccountingStandardsUpdate201602Member" unitRef="USD" decimals="-3"> 1800000 </us-gaap:OperatingLeaseLiability>
<us-gaap:OperatingLeaseLiability contextRef="AsOf2019-12-29_us-gaap_OfficeEquipmentMember" unitRef="USD" id="Foot-04-3" decimals="-3"> 34000 </us-gaap:OperatingLeaseLiability>
<us-gaap:PropertyPlantAndEquipmentNet contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 1102000 </us-gaap:PropertyPlantAndEquipmentNet>
<us-gaap:PropertyPlantAndEquipmentNet contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 1065000 </us-gaap:PropertyPlantAndEquipmentNet>
<us-gaap:NetIncomeLoss contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> -679000 </us-gaap:NetIncomeLoss>
<us-gaap:NetIncomeLoss contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 2025000 </us-gaap:NetIncomeLoss>
<us-gaap:NetIncomeLoss contextRef="From2018-10-01to2018-12-30_us-gaap_CommonStockMember" unitRef="USD" xsi:nil="true"/>
<us-gaap:NetIncomeLoss contextRef="From2018-10-01to2018-12-30_us-gaap_AdditionalPaidInCapitalMember" unitRef="USD" xsi:nil="true"/>
<us-gaap:NetIncomeLoss contextRef="From2018-10-01to2018-12-30_us-gaap_RetainedEarningsMember" unitRef="USD" decimals="-3"> 2025000 </us-gaap:NetIncomeLoss>
<us-gaap:NetIncomeLoss contextRef="From2019-09-30to2019-12-29_us-gaap_CommonStockMember" unitRef="USD" xsi:nil="true"/>
<us-gaap:NetIncomeLoss contextRef="From2019-09-30to2019-12-29_us-gaap_AdditionalPaidInCapitalMember" unitRef="USD" xsi:nil="true"/>
<us-gaap:NetIncomeLoss contextRef="From2019-09-30to2019-12-29_us-gaap_RetainedEarningsMember" unitRef="USD" decimals="-3"> -679000 </us-gaap:NetIncomeLoss>
<us-gaap:IncomeTaxExpenseBenefit contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 141000 </us-gaap:IncomeTaxExpenseBenefit>
<us-gaap:IncomeTaxExpenseBenefit contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 54000 </us-gaap:IncomeTaxExpenseBenefit>
<us-gaap:AccruedLiabilitiesCurrent contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 1180000 </us-gaap:AccruedLiabilitiesCurrent>
<us-gaap:AccruedLiabilitiesCurrent contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 795000 </us-gaap:AccruedLiabilitiesCurrent>
<us-gaap:WarrantsAndRightsOutstandingMeasurementInput contextRef="AsOf2018-09-30_us-gaap_WarrantMember_us-gaap_MeasurementInputRiskFreeInterestRateMember" unitRef="Pure" id="Foot-05-0" decimals="INF"> 2.88 </us-gaap:WarrantsAndRightsOutstandingMeasurementInput>
<us-gaap:WarrantsAndRightsOutstandingMeasurementInput contextRef="AsOf2018-09-30_us-gaap_WarrantMember_us-gaap_MeasurementInputPriceVolatilityMember" unitRef="Pure" decimals="INF"> 64.05 </us-gaap:WarrantsAndRightsOutstandingMeasurementInput>
<us-gaap:WarrantsAndRightsOutstandingMeasurementInput contextRef="AsOf2019-09-29_us-gaap_WarrantMember_us-gaap_MeasurementInputRiskFreeInterestRateMember" unitRef="Pure" id="Foot-05-1" decimals="INF"> 1.63 </us-gaap:WarrantsAndRightsOutstandingMeasurementInput>
<us-gaap:WarrantsAndRightsOutstandingMeasurementInput contextRef="AsOf2019-09-29_us-gaap_WarrantMember_us-gaap_MeasurementInputPriceVolatilityMember" unitRef="Pure" decimals="INF"> 53.66 </us-gaap:WarrantsAndRightsOutstandingMeasurementInput>
<us-gaap:WarrantsAndRightsOutstandingMeasurementInput contextRef="AsOf2018-12-30_us-gaap_WarrantMember_us-gaap_MeasurementInputRiskFreeInterestRateMember" unitRef="Pure" id="Foot-05-2" decimals="INF"> 2.49 </us-gaap:WarrantsAndRightsOutstandingMeasurementInput>
<us-gaap:WarrantsAndRightsOutstandingMeasurementInput contextRef="AsOf2019-12-30_us-gaap_WarrantMember_us-gaap_MeasurementInputRiskFreeInterestRateMember" unitRef="Pure" id="Foot-05-3" decimals="INF"> 1.58 </us-gaap:WarrantsAndRightsOutstandingMeasurementInput>
<us-gaap:WarrantsAndRightsOutstandingMeasurementInput contextRef="AsOf2018-12-30_us-gaap_WarrantMember_us-gaap_MeasurementInputPriceVolatilityMember" unitRef="Pure" decimals="INF"> 62.95 </us-gaap:WarrantsAndRightsOutstandingMeasurementInput>
<us-gaap:WarrantsAndRightsOutstandingMeasurementInput contextRef="AsOf2019-12-30_us-gaap_WarrantMember_us-gaap_MeasurementInputPriceVolatilityMember" unitRef="Pure" decimals="INF"> 53.00 </us-gaap:WarrantsAndRightsOutstandingMeasurementInput>
<us-gaap:WarrantsAndRightsOutstandingMaturityDate contextRef="AsOf2018-09-30_us-gaap_WarrantMember" id="Foot-00-4"> 2021-08-26 </us-gaap:WarrantsAndRightsOutstandingMaturityDate>
<us-gaap:WarrantsAndRightsOutstandingMaturityDate contextRef="AsOf2019-09-29_us-gaap_WarrantMember" id="Foot-00-5"> 2021-08-26 </us-gaap:WarrantsAndRightsOutstandingMaturityDate>
<us-gaap:WarrantsAndRightsOutstandingMaturityDate contextRef="AsOf2018-12-30_us-gaap_WarrantMember" id="Foot-00-6"> 2021-08-26 </us-gaap:WarrantsAndRightsOutstandingMaturityDate>
<us-gaap:WarrantsAndRightsOutstandingMaturityDate contextRef="AsOf2019-12-30_us-gaap_WarrantMember" id="Foot-00-7"> 2021-08-26 </us-gaap:WarrantsAndRightsOutstandingMaturityDate>
<us-gaap:WarrantsAndRightsOutstandingTerm contextRef="AsOf2018-09-30_us-gaap_WarrantMember"> P2Y10M25D </us-gaap:WarrantsAndRightsOutstandingTerm>
<us-gaap:WarrantsAndRightsOutstandingTerm contextRef="AsOf2019-09-29_us-gaap_WarrantMember"> P1Y10M25D </us-gaap:WarrantsAndRightsOutstandingTerm>
<us-gaap:WarrantsAndRightsOutstandingTerm contextRef="AsOf2018-12-30_us-gaap_WarrantMember"> P2Y8M12D </us-gaap:WarrantsAndRightsOutstandingTerm>
<us-gaap:WarrantsAndRightsOutstandingTerm contextRef="AsOf2019-12-30_us-gaap_WarrantMember"> P1Y8M12D </us-gaap:WarrantsAndRightsOutstandingTerm>
<OPXS:FairValueAssumptionsFairValuePerShare contextRef="AsOf2018-09-30_us-gaap_WarrantMember" unitRef="USDPShares" decimals="INF"> 0.82 </OPXS:FairValueAssumptionsFairValuePerShare>
<OPXS:FairValueAssumptionsFairValuePerShare contextRef="AsOf2019-09-29_us-gaap_WarrantMember" unitRef="USDPShares" decimals="INF"> 0.49 </OPXS:FairValueAssumptionsFairValuePerShare>
<OPXS:FairValueAssumptionsFairValuePerShare contextRef="AsOf2018-12-30_us-gaap_WarrantMember" unitRef="USDPShares" decimals="INF"> 0.50 </OPXS:FairValueAssumptionsFairValuePerShare>
<OPXS:FairValueAssumptionsFairValuePerShare contextRef="AsOf2019-12-30_us-gaap_WarrantMember" unitRef="USDPShares" decimals="INF"> 0.80 </OPXS:FairValueAssumptionsFairValuePerShare>
<us-gaap:LineOfCreditFacilityMaximumBorrowingCapacity contextRef="AsOf2019-10-31_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" decimals="-3"> 250000 </us-gaap:LineOfCreditFacilityMaximumBorrowingCapacity>
<OPXS:DividendsPayableAmount contextRef="From2018-10-01to2019-09-29" unitRef="USD" xsi:nil="true"/>
<OPXS:DividendsPayableAmount contextRef="From2019-09-30to2019-12-29" unitRef="USD" xsi:nil="true"/>
<us-gaap:CommonStockSharesOutstanding contextRef="AsOf2019-09-29" unitRef="Shares" decimals="INF"> 8436422 </us-gaap:CommonStockSharesOutstanding>
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<dei:EntityRegistrantName contextRef="From2019-09-30to2019-12-29"> Optex Systems Holdings Inc </dei:EntityRegistrantName>
<dei:EntityCentralIndexKey contextRef="From2019-09-30to2019-12-29"> 0001397016 </dei:EntityCentralIndexKey>
<dei:DocumentType contextRef="From2019-09-30to2019-12-29"> 10-Q </dei:DocumentType>
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<dei:CurrentFiscalYearEndDate contextRef="From2019-09-30to2019-12-29"> --09-27 </dei:CurrentFiscalYearEndDate>
<dei:EntityCurrentReportingStatus contextRef="From2019-09-30to2019-12-29"> Yes </dei:EntityCurrentReportingStatus>
<dei:EntityInteractiveDataCurrent contextRef="From2019-09-30to2019-12-29"> Yes </dei:EntityInteractiveDataCurrent>
<dei:EntityFilerCategory contextRef="From2019-09-30to2019-12-29"> Non-accelerated Filer </dei:EntityFilerCategory>
<dei:EntitySmallBusiness contextRef="From2019-09-30to2019-12-29"> true </dei:EntitySmallBusiness>
<dei:EntityEmergingGrowthCompany contextRef="From2019-09-30to2019-12-29"> false </dei:EntityEmergingGrowthCompany>
<dei:EntityShellCompany contextRef="From2019-09-30to2019-12-29"> false </dei:EntityShellCompany>
<dei:DocumentFiscalPeriodFocus contextRef="From2019-09-30to2019-12-29"> Q1 </dei:DocumentFiscalPeriodFocus>
<dei:DocumentFiscalYearFocus contextRef="From2019-09-30to2019-12-29"> 2020 </dei:DocumentFiscalYearFocus>
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<us-gaap:OperatingLeaseLiabilityNoncurrent contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 1240000 </us-gaap:OperatingLeaseLiabilityNoncurrent>
<us-gaap:ProceedsFromLinesOfCredit contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 350000 </us-gaap:ProceedsFromLinesOfCredit>
<us-gaap:ProceedsFromLinesOfCredit contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> 200000 </us-gaap:ProceedsFromLinesOfCredit>
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<OPXS:RightofuseAsset contextRef="From2018-10-01to2018-12-30" unitRef="USD" xsi:nil="true"/>
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<us-gaap:AreaOfLand contextRef="AsOf2019-12-29_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="sqft" decimals="INF"> 49100 </us-gaap:AreaOfLand>
<us-gaap:AreaOfLand contextRef="AsOf2019-12-29_custom_AppliedOpticsCenterAOCDallasMember" unitRef="sqft" decimals="INF"> 44867 </us-gaap:AreaOfLand>
<us-gaap:LeaseExpirationDate1 contextRef="From2019-09-30to2019-12-29_custom_OptexSystemsOPXRichardsonTexasMember"> 2021-03-31 </us-gaap:LeaseExpirationDate1>
<us-gaap:LeaseExpirationDate1 contextRef="From2019-09-30to2019-12-29_custom_AppliedOpticsCenterAOCDallasMember"> 2021-10-31 </us-gaap:LeaseExpirationDate1>
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<us-gaap:PaymentsForRent contextRef="From2019-03-29to2019-03-31_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="USD" decimals="-3"> 23000 </us-gaap:PaymentsForRent>
<us-gaap:PaymentsForRent contextRef="From2016-10-01to2016-10-31_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" decimals="0"> 19400 </us-gaap:PaymentsForRent>
<us-gaap:PaymentsForRent contextRef="From2019-09-30to2019-12-29_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="USD" decimals="0"> 10400 </us-gaap:PaymentsForRent>
<us-gaap:PaymentsForRent contextRef="From2019-09-30to2019-12-29_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" decimals="0"> 6400 </us-gaap:PaymentsForRent>
<us-gaap:DescriptionOfLesseeLeasingArrangementsOperatingLeases contextRef="From2019-09-30to2019-12-29"> The Company has one non-cancellable office equipment lease with a commencement date of October 1, 2018 and a term of 39 months. </us-gaap:DescriptionOfLesseeLeasingArrangementsOperatingLeases>
<us-gaap:DescriptionOfLesseeLeasingArrangementsOperatingLeases contextRef="From2019-09-30to2019-12-29_custom_OptexSystemsOPXRichardsonTexasMember"> The monthly base rent was $23.0 thousand through March 31, 2019, and annual rental payment inflationary increases between 3.4% and 4.8% occurring April 1, each year. </us-gaap:DescriptionOfLesseeLeasingArrangementsOperatingLeases>
<us-gaap:DescriptionOfLesseeLeasingArrangementsOperatingLeases contextRef="From2019-09-30to2019-12-29_custom_AppliedOpticsCenterAOCDallasMember"> The monthly base rent was $20.0 thousand through September 30, 2018 and escalates approximately 3% October 1, each year thereafter through 2021. </us-gaap:DescriptionOfLesseeLeasingArrangementsOperatingLeases>
<us-gaap:LesseeOperatingLeaseRenewalTerm contextRef="AsOf2019-09-29_custom_AppliedOpticsCenterAOCDallasMember"> P5Y </us-gaap:LesseeOperatingLeaseRenewalTerm>
<us-gaap:LesseeOperatingLeaseRenewalTerm contextRef="AsOf2019-12-29_us-gaap_AccountingStandardsUpdate201602Member"> P5Y </us-gaap:LesseeOperatingLeaseRenewalTerm>
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<us-gaap:LeaseCost contextRef="From2019-09-30to2019-12-29_custom_OctoberOneTwoThousandAndEighteenThroughDecemberThirtyOneTwoThousandAndTwentyOneMember" unitRef="USD" decimals="0"> 1500 </us-gaap:LeaseCost>
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<us-gaap:LeaseAndRentalExpense contextRef="From2019-09-30to2019-12-29_custom_FacilityLeaseAgreementMember" unitRef="USD" decimals="-3"> 172000 </us-gaap:LeaseAndRentalExpense>
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<us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths contextRef="AsOf2019-12-29_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="USD" decimals="-3"> 219000 </us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths>
<us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths contextRef="AsOf2019-12-29_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" decimals="-3"> 191000 </us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths>
<us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths contextRef="AsOf2019-12-29_us-gaap_OfficeEquipmentMember" unitRef="USD" decimals="-3"> 14000 </us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths>
<us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths contextRef="AsOf2019-12-29_custom_CommonAreaMaintenanceEstimateMember" unitRef="USD" decimals="-3"> 151000 </us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths>
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<us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearTwo contextRef="AsOf2019-12-29_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="USD" decimals="-3"> 148000 </us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearTwo>
<us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearTwo contextRef="AsOf2019-12-29_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" decimals="-3"> 262000 </us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearTwo>
<us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearTwo contextRef="AsOf2019-12-29_us-gaap_OfficeEquipmentMember" unitRef="USD" decimals="-3"> 18000 </us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearTwo>
<us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearTwo contextRef="AsOf2019-12-29_custom_CommonAreaMaintenanceEstimateMember" unitRef="USD" decimals="-3"> 144000 </us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearTwo>
<us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearThree contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 26000 </us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearThree>
<us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearThree contextRef="AsOf2019-12-29_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="USD" xsi:nil="true"/>
<us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearThree contextRef="AsOf2019-12-29_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" decimals="-3"> 22000 </us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearThree>
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<us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearThree contextRef="AsOf2019-12-29_custom_CommonAreaMaintenanceEstimateMember" unitRef="USD" decimals="-3"> 7000 </us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearThree>
<us-gaap:SaleOfStockPricePerShare contextRef="AsOf2019-12-29_custom_TwoThousandNineStockOptionPlanMember" unitRef="USDPShares" decimals="INF"> 0.01 </us-gaap:SaleOfStockPricePerShare>
<us-gaap:SaleOfStockConsiderationReceivedOnTransaction contextRef="From2019-09-30to2019-12-29_custom_TwoThousandNineStockOptionPlanMember" unitRef="USD" decimals="-3"> 250000 </us-gaap:SaleOfStockConsiderationReceivedOnTransaction>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardDescription contextRef="From2019-09-30to2019-12-29_custom_TwoThousandSixteenRestrictedStockUnitPlanMember"> Effective as of January 1, 2019, Danny Schoening, CEO and Karen Hawkins, CFO received an 8% salary increase. </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardDescription>
<us-gaap:StockholdersEquity contextRef="AsOf2019-09-29" unitRef="USD" decimals="-3"> 12208000 </us-gaap:StockholdersEquity>
<us-gaap:StockholdersEquity contextRef="AsOf2018-09-30" unitRef="USD" decimals="-3"> 6344000 </us-gaap:StockholdersEquity>
<us-gaap:StockholdersEquity contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 11555000 </us-gaap:StockholdersEquity>
<us-gaap:StockholdersEquity contextRef="AsOf2018-12-30" unitRef="USD" decimals="-3"> 8405000 </us-gaap:StockholdersEquity>
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<us-gaap:StockholdersEquity contextRef="AsOf2019-09-29_us-gaap_CommonStockMember" unitRef="USD" decimals="-3"> 8000 </us-gaap:StockholdersEquity>
<us-gaap:StockholdersEquity contextRef="AsOf2019-12-29_us-gaap_CommonStockMember" unitRef="USD" decimals="-3"> 8000 </us-gaap:StockholdersEquity>
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<us-gaap:StockholdersEquity contextRef="AsOf2019-12-29_us-gaap_AdditionalPaidInCapitalMember" unitRef="USD" decimals="-3"> 26160000 </us-gaap:StockholdersEquity>
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<us-gaap:StockholdersEquity contextRef="AsOf2019-12-29_us-gaap_RetainedEarningsMember" unitRef="USD" decimals="-3"> -14613000 </us-gaap:StockholdersEquity>
<us-gaap:SharesOutstanding contextRef="AsOf2018-09-30_us-gaap_CommonStockMember" unitRef="Shares" decimals="INF"> 8333353 </us-gaap:SharesOutstanding>
<us-gaap:SharesOutstanding contextRef="AsOf2018-12-30_us-gaap_CommonStockMember" unitRef="Shares" decimals="INF"> 8333353 </us-gaap:SharesOutstanding>
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<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 1 - Organization and Operations</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">Optex Systems Holdings, Inc. (the “Company”) manufactures optical sighting systems and assemblies for the U.S. Department of Defense, foreign military applications and commercial markets. Its products are installed on a variety of U.S. military land vehicles, such as the Abrams and Bradley fighting vehicles, light armored and advanced security vehicles, and have been selected for installation on the Stryker family of vehicles. The Company also manufactures and delivers numerous periscope configurations, rifle and surveillance sights and night vision optical assemblies. Optex Systems Holdings’ products consist primarily of build to customer print products that are delivered both directly to the military and to other defense prime contractors or commercial customers. The Company’s consolidated revenues are derived from the U.S. government, 56%, two major U.S defense contractors, 11% and 12%, one commercial customer, 7%, and all other customers, 14%. Approximately 96% of the total company revenue is generated from domestic customers and 4% is derived from Canada. Optex Systems Holdings’ operations are based in Dallas and Richardson, Texas in leased facilities comprising 93,967 square feet. As of December 29, 2019, Optex Systems Holdings operated with 105 full-time equivalent employees.</p>
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<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b>Note 2 - Accounting Policies</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b>Basis of Presentation</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b><i>Principles of Consolidation: </i></b>The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Optex Systems, Inc. All significant inter-company balances and transactions have been eliminated in consolidation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The condensed consolidated financial statements of Optex Systems Holdings included herein have been prepared by Optex Systems Holdings, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in conjunction with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">These condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and the notes thereto included in the Optex Systems Holdings’ Form 10-K for the year ended September 29, 2019 and other reports filed with the SEC.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The accompanying unaudited interim condensed consolidated financial statements reflect all adjustments of a normal and recurring nature which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows of Optex Systems Holdings for the interim periods presented. The results of operations for these periods are not necessarily comparable to, or indicative of, results of any other interim period or for the fiscal year taken as a whole. Certain information that is not required for interim financial reporting purposes has been omitted.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b><i>Leases: </i></b>In February 2016, FASB issued ASU 2016-02—<i>Leases (Topic 842). </i>The update is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. As such, Optex Systems Holdings adopted these provisions as of the fiscal year beginning on September 30, 2019. Optex Systems Holdings has two significant operating facilities leases and one equipment lease which extends beyond twelve months and fall under the guidance of ASC Topic 842. Adoption of ASC Topic 842 resulted in the balance sheet recognition of a right-of-use asset of $1.7 million and corresponding operating lease liabilities of approximately $1.8 million as of December 29, 2019, representing the present value of future lease payments for the term of the equipment lease and both segment facility leases and which assumes the exercise of a five year renewal option at the Applied Optics Center as of November 1, 2021. See also Note 4.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Inventory: </i></b>As of December 29, 2019 and September 29, 2019, inventory included:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="6" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>(Thousands)</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 29, 2019</b></font></td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>September 29, 2019</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 62%"><font style="font: 10pt Times New Roman, Times, Serif">Raw Material</font></td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 16%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">7,260</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 16%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">7,395</font></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font: 10pt Times New Roman, Times, Serif">Work in Process</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">3,722</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">3,599</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font: 10pt Times New Roman, Times, Serif">Finished Goods</font></td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">387</font></td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">254</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>Gross Inventory</b></font></td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">11,369</font></td> <td> </td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">11,248</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font: 10pt Times New Roman, Times, Serif">Less: Inventory Reserves</font></td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(713</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(713</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>Net Inventory</b></font></td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">10,656</font></td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">10,535</font></td> <td> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Concentration of Credit Risk: </i></b>Optex Systems Holdings’ accounts receivables for the period ended December 29, 2019 are derived from revenues of U.S. government agencies: 47%, three major U.S. defense contractors: 20%, 11% and 7%, one commercial customer, 7%, and all other customers: 8%. The Company does not believe that this concentration results in undue credit risk because of the financial strength of the obligees.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Accrued Warranties: </i></b>Optex Systems Holdings accrues product warranty liabilities based on the historical return rate against period shipments as they occur and reviews and adjusts these accruals quarterly for any significant changes in estimated costs or return rates. The accrued warranty liability includes estimated costs to repair or replace returned warranty backlog units currently in-house plus estimated costs for future warranty returns that may be incurred against warranty covered products previously shipped as of the period end date. As of December 29, 2019 and September 29, 2019, the Company had warranty reserve balances of $75 thousand and $46 thousand, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td> </td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Three months ended</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 29, 2019</b></font></td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 30, 2018</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 62%"><font style="font: 10pt Times New Roman, Times, Serif">Beginning balance</font></td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 16%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">46</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 16%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">101</font></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font: 10pt Times New Roman, Times, Serif">Incurred costs for warranties satisfied during the period</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(7</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font: 10pt Times New Roman, Times, Serif"><i>Warranty Expenses:</i></font></td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Warranties reserved for new product shipped during the period<i><sup>(1)</sup></i></font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">20</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">29</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Change in estimate for pre-existing warranty liabilities <i><sup>(2)</sup></i></font></td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">9</font></td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(50</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font: 10pt Times New Roman, Times, Serif">Warranty Expense</font></td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">29</font></td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(21</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>Ending balance</b></font></td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>75</b></font></td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>73</b></font></td> <td> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(1) Warranty expenses accrued to cost of sales (based on current period shipments and historical warranty return rate).</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(2) Changes in estimated warranty liabilities recognized in cost of sales associated with: the period end customer returned warranty backlog, or the actual costs of repaired/replaced warranty units which were shipped to the customer during the current period.</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Use of Estimates:</i></b> The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b><i>Fair Value of Financial Instruments:</i></b> Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of the financial statement presentation date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying value of cash and cash equivalents, accounts payable, accrued liabilities, are carried at, or approximate, fair value as of the reporting date because of their short-term nature. The credit facility is reported at fair value as it bears market rates of interest. Fair values for the Company’s warrant liabilities and derivatives are estimated by utilizing valuation models that consider current and expected stock prices, volatility, dividends, market interest rates, forward yield curves and discount rates. Such amounts and the recognition of such amounts are subject to significant estimates that may change in the future.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value and requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 1: Quoted market prices in active markets for identical assets or liabilities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accounting guidance establishes a hierarchy which requires an entity to maximize the use of quoted market prices and minimize the use of unobservable inputs. An asset or liability’s level is based on the lowest level of input that is significant to the fair value measurement. Fair value estimates are reviewed at the origination date and again at each applicable measurement date and interim or annual financial reporting dates, as applicable for the financial instrument, and are based upon certain market assumptions and pertinent information available to management at those times.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Each of the measurements is considered a Level 3 measurement based on the availability of market data and inputs and the significance of any unobservable inputs as of the measurement date. The methods and significant inputs and assumptions utilized in estimating the fair value of the warrant liabilities, as well as the respective hierarchy designations are discussed further in Note 6 “Warrant Liabilities”.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b><i>Revenue Recognition:</i></b> As of fiscal-year beginning on October 1, 2018, the Company has adopted FASB ASC 606—Revenue from Contracts with Customers, which is required for public business entities for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company selected a modified retrospective application of the standard for all periods presented as of the October 1, 2018 implementation date. The new revenue recognition standard requires revenue recognition based on a five-step model that includes: identifying the contract, identifying the performance obligations, determining the transaction price, allocating the transaction price and recognizing the revenue. The standard results in the recognition of revenue depicting the transfer of promised goods or services to customers in an amount reflecting the expected consideration to be received from the customer for such goods and services, based on the satisfaction of performance obligations, occurring when the control of the goods or services transfer to the customer. The majority of the Company’s contracts and customer orders originate with fixed determinable unit prices for each deliverable quantity of goods defined by the customer order line item (performance obligation) and include the specific due date for the transfer of control and title of each of those deliverables to the customer at pre-established payment terms, which are generally within thirty to sixty days from the transfer of title and control. We have elected to account for shipping and handling costs as fulfillment costs after the customer obtains control of the goods. In addition, the company has one ongoing service contract which began in October 2017 which relates to optimized weapon system support (OWSS) and includes ongoing program maintenance, repairs and spare inventory support for the customer’s existing fleet units in service over a three-year period. Revenue recognition for this program has been recorded by the Company, and compensated by the customer, at fixed monthly increments over time, consistent with the defined contract maintenance period.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended December 29, 2019 there was $3 thousand respectively of revenue recognized during the period from customer deposit liabilities (deferred contract revenue). As of December 29, 2019 there are no customer deposit liabilities. As of the three months ended December 29, 2019, there are no significant contract costs such as sales commissions or costs deferred.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Income Tax/Deferred Tax: </i></b>As of December 29, 2019 Optex Systems, Inc. has a deferred tax asset valuation allowance of ($1.0) million against deferred tax assets of $2.3 million, as compared to a valuation allowance of ($1.0) million against deferred tax assets of $2.4 million as of September 29, 2019. The valuation allowance has been established due to historical losses resulting in a Net Operating Loss Carryforward for each of the fiscal years 2010 through 2019. During the three months ended December 29, 2019, our deferred tax assets decreased by ($0.1) million related current year tax adjustments for amortization expenses and an applied net operating loss carryforward.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> <b><i> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Earnings per Share:</i></b> Basic earnings per share is computed by dividing income available for common shareholders (the numerator) by the weighted average number of common shares outstanding (the denominator) for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A significant number of our outstanding warrants are participating securities which share dividend distributions and the allocation of any undistributed earnings (deemed dividends) with our common shareholders. During the three months ended December 29, 2019, there were no declared dividends and zero in allocated undistributed earnings attributable to the participating warrants due to the period net loss. During the three months ended December 30, 2018, declared dividends of $0 and $671 thousand was attributable to participating warrants.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Company has potentially dilutive securities outstanding which include unvested restricted stock units, stock options and warrants. In computing the dilutive effect of convertible preferred stock, the numerator is adjusted to add back any deemed dividends on participating securities (warrants) and the denominator is increased to assume the conversion of the number of additional incremental common shares. The Company uses the Treasury Stock Method to compute the dilutive effect of any dilutive shares. Unvested restricted stock units, stock options and warrants that are anti-dilutive are excluded from the calculation of diluted earnings per common share.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For three months ended December 29, 2019, 4,125,200 warrants (which convert to 506,604 incremental shares for the three months) and 216,500 unvested restricted stock units (which converts to 114,605 incremental shares for the three months), were excluded in the diluted earnings per share calculation as antidilutive due to the period net loss. For the three months ended December 29, 2019, 99,000 unvested restricted stock units (which converts to 77,344 incremental dilutive shares for the three months) and 4,260,785 warrants (which converts to 83,545 incremental dilutive shares for the three months) were included in the diluted earnings per share calculation and 25,000 stock options were excluded from the earnings per share calculation as they were antidilutive.</p>
</us-gaap:SignificantAccountingPoliciesTextBlock>
<us-gaap:SegmentReportingDisclosureTextBlock contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 3 - Segment Reporting</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Company’s reportable segments are strategic businesses offering similar products to similar markets and customers; however, the companies are operated and managed separately due to differences in manufacturing technology, equipment, geographic location, and specific product mix. Applied Optics Center was acquired as a unit, and the management at the time of the acquisition was retained. Both the Applied Optics Center and Optex Systems – Richardson operate as reportable segments under the Optex Systems, Inc. corporate umbrella.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Applied Optics Center segment also serves as the key supplier of laser coated filters used in the production of periscope assemblies for the Optex Systems-Richardson (“Optex Systems”) segment. Intersegment sales and transfers are accounted for at annually agreed to pricing rates based on estimated segment product cost, which includes segment direct manufacturing and general and administrative costs, but exclude profits that would apply to third party external customers.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b><i><u>Optex Systems (OPX) – Richardson, Texas</u></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Optex Systems revenues are primarily in support of prime and subcontracted military customers. Approximately 93% of the Optex Systems segment revenue is comprised of domestic military customers and 7% is comprised of foreign military customers. During the three months ending December 29, 2019, Optex Systems segment revenue is derived from the U.S. government, 46%, and two major U.S. defense contractors representing 11% and 9% of the Company’s consolidated revenue, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Optex Systems is located in Richardson Texas, with leased premises consisting of approximately 49,100 square feet. As of December 29, 2019, the Richardson facility operated with 70 full time equivalent employees in a single shift operation. Optex Systems, Richardson serves as the home office for both the Optex Systems and Applied Optics Center segments.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i><u>Applied Optics Center (AOC) – Dallas, Texas</u></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Applied Optics Center serves primarily domestic U.S. customers. Sales to commercial customers represent 22% and military sales to prime and subcontracted customers represent 78% of the total segment revenue. Approximately 86% of the AOC revenue is derived from external customers and approximately 14% is related to intersegment sales to Optex Systems in support of military contracts. The AOC segment revenue from the U.S. government, one major commercial customer, and one major defense contractor represents approximately 10%, 7% and 12% of the Company’s consolidated revenue, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Applied Optics Center is located in Dallas, Texas with leased premises consisting of approximately 44,867 square feet of space. As of December 29, 2019, AOC operated with 35 full time equivalent employees in a single shift operation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The financial tables below present the information for each of the reportable segments profit or loss as well as segment assets for each year. The Company does not allocate interest expense, income taxes or unusual items to segments.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="14"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Reportable Segment Financial Information</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(thousands) </b></p></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="14" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Three months ended December 29, 2019</b></font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Optex Systems</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Richardson </b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Applied Optics Center</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Dallas </b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Other </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(non-allocated costs and intersegment eliminations) </b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Consolidated </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Total </b></p></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 40%"><font style="font-size: 10pt">Revenues from external customers</font></td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 12%; text-align: right"><font style="font-size: 10pt">3,644</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 12%; text-align: right"><font style="font-size: 10pt">2,243</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 12%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 12%; text-align: right"><font style="font-size: 10pt">5,887</font></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Intersegment revenues</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">373</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(373</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Total Revenue</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">3,644</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">2,616</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(373</font></td> <td><font style="font-size: 10pt">)</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">5,887</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Interest expense</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">5</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">5</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Depreciation and Amortization</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">6</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">60</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">66</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Income (loss) before taxes</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">482</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">262</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(1,282</font></td> <td><font style="font-size: 10pt">)</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(538</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Other significant noncash items:</font></td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Allocated home office expense</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(170</font></td> <td><font style="font-size: 10pt">)</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">170</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Loss on change in fair value of warrants</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">1,251</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">1,251</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Stock compensation expense</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">26</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">26</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Warranty Expense</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">29</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">29</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Segment Assets</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">12,293</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">7,087</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">19,380</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Expenditures for segment assets</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">13</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">16</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">29</font></td> <td> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="14" style="text-align: center"><font style="font-size: 10pt"><b>Reportable Segment Financial Information<br /> (thousands)</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="14" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Three months ended December 30, 2018</b></font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Optex Systems</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Richardson </b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Applied Optics Center</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Dallas </b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Other </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(non-allocated costs and intersegment eliminations) </b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Consolidated</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Total </b></p></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Revenues from external customers</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">3,830</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">2,061</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">5,891</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 40%; padding-bottom: 1.5pt"><font style="font-size: 10pt">Intersegment revenues</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid; width: 1%"> </td> <td style="border-bottom: black 1.5pt solid; width: 12%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid; width: 1%"> </td> <td style="border-bottom: black 1.5pt solid; width: 12%; text-align: right"><font style="font-size: 10pt">415</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid; width: 1%"> </td> <td style="border-bottom: black 1.5pt solid; width: 12%; text-align: right"><font style="font-size: 10pt">(415</font></td> <td style="width: 1%; padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid; width: 1%"> </td> <td style="border-bottom: black 1.5pt solid; width: 12%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Total Revenue</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">3,830</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">2,476</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(415</font></td> <td><font style="font-size: 10pt">)</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">5,891</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Interest expense</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">6</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">6</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Depreciation and Amortization</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">9</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">76</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">85</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Income before taxes</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">406</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">330</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">1,343</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">2,079</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Other significant noncash items:</font></td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Allocated home office expense</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(170</font></td> <td><font style="font-size: 10pt">)</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">170</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Gain on Change in Fair Value of Warrants</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(1,385</font></td> <td><font style="font-size: 10pt">)</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(1,385</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Stock option compensation expense</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">36</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">36</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Royalty expense amortization</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">8</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">8</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Warranty Expense</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(21</font></td> <td><font style="font-size: 10pt">)</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(21</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Segment Assets</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">9,448</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">4,330</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">13,778</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Expenditures for segment assets</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">4</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">14</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">18</font></td> <td> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
</us-gaap:SegmentReportingDisclosureTextBlock>
<us-gaap:CommitmentsAndContingenciesDisclosureTextBlock contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b>Note 4 - Commitments and Contingencies</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b><i>Non-cancellable Operating Leases</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Optex Systems Holdings leases its office and manufacturing facilities for the Optex Systems, Inc., Richardson address and the Applied Optics Center Dallas address, as well as certain office equipment under non-cancellable operating leases.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The leased facility under Optex Systems Inc. at 1420 Presidential Drive, Richardson, Texas consists of 49,100 square feet of space and expires March 31, 2021. Pursuant to the terms of the most recent amendment to the Richardson site facilities lease, there was no base rent payment due from January 1, 2014 through March 31, 2014, with payments beginning April 2014. The monthly base rent was $23.0 thousand through March 31, 2019, and annual rental payment inflationary increases between 3.4% and 4.8% occurring April 1, each year. The monthly rent includes approximately $10.4 thousand for additional Common Area Maintenance (CAM) fees and taxes, to be adjusted annually based on actual expenses incurred by the landlord.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The leased facility under the Applied Optics Center at 9839 and 9827 Chartwell Drive, Dallas, Texas, consists of 44,867 square feet of space at the premises. On November 17, 2016, we received a countersigned new lease for the Applied Optics Center from the landlord, dated October 21, 2016, and which commenced retroactive to October 1, 2016. The new lease term will expire on October 31, 2021, with two renewal options available to the tenant, each with a renewal term duration of five years. The monthly base rent was $20.0 thousand through September 30, 2018 and escalates approximately 3% October 1, each year thereafter through 2021. The lease includes a one month base rent abatement for October 1 through October 31, 2016 for $19.4 thousand. The monthly rent includes approximately $6.4 thousand for additional CAM, to be adjusted annually based on actual expenses incurred by the landlord. Our obligations to make payments under the lease are secured by a $250,000 standby letter of credit which was reduced to $125,000 on October 31, 2019.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has one non-cancellable office equipment lease with a commencement date of October 1, 2018 and a term of 39 months. The lease cost for the equipment is $1.5 thousand per month from October 1, 2018 through December 31, 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Optex Systems Holdings adopted the provisions of ASC Topic 842 “Leases” as of the fiscal year beginning on September 30, 2019. Optex Systems Holdings has two significant operating facilities leases and one equipment lease which extends beyond twelve months and fall under the guidance of ASC Topic 842. Adoption of ASC Topic 842 resulted in the balance sheet recognition of a right-of-use asset of $1.7 million and corresponding operating lease liabilities of approximately $1.8 million, representing the present value of future lease payments for the term of the equipment lease and both segment facility leases and which assumes the exercise of a five year renewal option at the Applied Optics Center as of November 1, 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Optex Systems Holdings elects to apply the short-term lease measurement and recognition exemption to office and machinery rentals with a duration of less than one year. During the three months ending December 29, 2019 there was only one short term forklift lease in that class with an expiration date of June 30, 2019. The short-term rental expenses during the three months ending December 29, 2019 were $1 thousand with a remaining lease obligation of $1.7 thousand as of the period end date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 29, 2019, the remaining minimum lease and estimated CAM payments under the non-cancelable office and facility space leases are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td colspan="21" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Non-cancellable Operating Leases</b></font></td></tr> <tr style="vertical-align: bottom"> <td colspan="21" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td> </td> <td colspan="18" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>(Thousands)</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Optex Richardson</b></font></td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Applied Optics Center</b></font></td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Office </b></font></td> <td> </td> <td> </td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Consolidated</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>Fiscal Year</b></font></td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Facility <br /> Lease <br /> Payments</b></font></td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Facility <br /> Lease <br /> Payments</b></font></td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Equipment <br /> Lease<br /> Payments</b></font></td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total<br /> Lease<br /> Payments</b></font></td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total <br /> Variable <br /> CAM Estimate</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 41%"><font style="font: 10pt Times New Roman, Times, Serif">2020 Base year lease</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">219</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">191</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">14</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">424</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 12%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">151</font></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font: 10pt Times New Roman, Times, Serif">2021 Base year lease</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">148</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">262</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">18</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">428</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">144</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font: 10pt Times New Roman, Times, Serif">2022 Base year lease</font></td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">22</font></td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4</font></td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">26</font></td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">7</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>Total base lease payments</b></font></td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>367</b></font></td> <td> </td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>475</b></font></td> <td> </td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>36</b></font></td> <td> </td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>878</b></font></td> <td> </td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>302</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font: 10pt Times New Roman, Times, Serif">2022-2026 Lease option-assumed exercise<i><sup>(2)</sup></i></font></td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,312</font></td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,312</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>Total lease payments</b></font></td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>367</b></font></td> <td> </td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,787</b></font></td> <td> </td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>36</b></font></td> <td> </td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>2,190</b></font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-indent: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Imputed interest on lease payments <i><sup>(1)</sup></i></font></td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(16</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(383</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(2</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(401</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>Total Operating Lease Liability<i><sup>(3)</sup></i></b></font></td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>351</b></font></td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,404</b></font></td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>34</b></font></td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,789</b></font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>Right-of-use Asset</b></font></td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>       305</b></font></td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,376</b></font></td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>       34</b></font></td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>  1,715</b></font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(1) Assumes a discount borrowing rate of 7.5%.</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(2) Assumes only one of the two five year options are exercised. The Company believes it is reasonably certain to exercise the first of the two 5 year options but believes the additional 5 year option falls outside of the range of reasonable predicability.</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(3) Short-term and Long-term portion of Operating Lease Liability is $549 thousand and $1,240 thousand, respectively.</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Total facilities rental and CAM expense for both facility lease agreements as of the three months ended December 29, 2019 was $175 thousand. Total expense under facility lease agreements as of the three months ended December 29, 2019 was $172 thousand. Total office equipment rentals included in operating expenses was $5 thousand for the three months ended December 29, 2019 and December 30, 2018.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 29, 2019, there was $83 thousand in unamortized deferred rent included in accrued liabilities which was reclassed to the right of use asset on adoption of ASC842.</p>
</us-gaap:CommitmentsAndContingenciesDisclosureTextBlock>
<us-gaap:DebtDisclosureTextBlock contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b>Note 5 - Debt Financing</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b>Credit Facility — Avidbank</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">As of December 29, 2019 and September 29, 2019, the outstanding principal balance on the line of credit was $600 thousand and $250 thousand, respectively. For the three months ended December 29, 2019 and December 30, 2018, the total interest expense against the outstanding line of credit balance was $5 thousand and $6 thousand, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Company amended its revolving credit facility with Avidbank pursuant to a Seventh Amendment to Amended and Restated Loan Agreement, dated as of April 5, 2018. The substantive amendments are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px; text-align: justify"><font style="font-size: 10pt">●</font></td> <td style="text-align: justify"><font style="font-size: 10pt">The new revolving maturity date is April 21, 2020.</font></td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"><font style="font-size: 10pt">●</font></td> <td style="text-align: justify"><font style="font-size: 10pt">On April 21, 2018 and each anniversary thereof for so long as the Revolving Facility is in effect, the Company shall pay a facility fee equal to one half of one percent (0.5%) of the Revolving Line.</font></td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"><font style="font-size: 10pt">●</font></td> <td style="text-align: justify"><font style="font-size: 10pt">The Company can maintain accounts at third party banks so long as the total in those other bank accounts does not exceed 20% of the total on deposit at Avidbank, and it shall remit to Avidbank monthly statements for all of those accounts within 30 days of the end of each month.</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b></b></p>
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<OPXS:WarrantLiabilitiesTextBlock contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b>Note 6-Warrant Liabilities</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 26, 2016, Optex Systems Holdings, Inc. issued 4,323,135 warrants to new shareholders and the underwriter, in connection with a public share offering. The warrants entitle the holder to purchase one share of our common stock at an exercise price equal to $1.50 per share at any time on or after August 26, 2016 (the “Initial Exercise Date”) and on or prior to the close of business on August 26, 2021 (the “Termination Date”). The Company determined that these warrants are free standing financial instruments that are legally detachable and separately exercisable from the common stock included in the public share offering. Management also determined that the warrants are puttable for cash upon a fundamental transaction at the option of the holder and as such required classification as a liability pursuant to ASC 480 <i>“Distinguishing Liabilities from Equity”</i>. The Company has no plans to consummate a fundamental transaction and does not believe a fundamental transaction is likely to occur during the remaining term of the outstanding warrants. In accordance with the accounting guidance, the outstanding warrants are recognized as a warrant liability on the balance sheet and are measured at their inception date fair value and subsequently re-measured at each reporting period with changes being recorded as a component of other income in the consolidated statements of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of the warrant liabilities presented below were measured using a Black Scholes Merton (BSM) valuation model. Significant inputs into the respective model at the reporting period measurement dates are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Valuation Assumptions</b></font></td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Period</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>ended</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30, 2018</b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Period</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>ended</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 30,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Period</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>ended</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 29,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2019</b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Period</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>ended</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 29,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2019</b></p></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 32%"><font style="font-size: 10pt">Exercise Price<sup>(1)</sup></font></td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 14%; text-align: right"><font style="font-size: 10pt">1.50</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 14%; text-align: right"><font style="font-size: 10pt">1.50</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 14%; text-align: right"><font style="font-size: 10pt">1.50</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 14%; text-align: right"><font style="font-size: 10pt">1.50</font></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Warrant Expiration Date <sup>(1)</sup></font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">8/26/2021</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">8/26/2021</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">8/26/2021</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">8/26/2021</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Stock Price <sup>(2)</sup></font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">1.71</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">1.32</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">1.56</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">2.02</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Interest Rate (annual) <sup>(3)</sup></font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">2.88</font></td> <td><font style="font-size: 10pt">%</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">2.49</font></td> <td><font style="font-size: 10pt">%</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">1.63</font></td> <td><font style="font-size: 10pt">%</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">1.58</font></td> <td><font style="font-size: 10pt">%</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Volatility (annual)</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">64.05</font></td> <td><font style="font-size: 10pt">%</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">62.95</font></td> <td><font style="font-size: 10pt">%</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">53.66</font></td> <td><font style="font-size: 10pt">%</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">53.00</font></td> <td><font style="font-size: 10pt">%</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Time to Maturity (Years)</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">2.9</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">2.7</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">1.9</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">1.7</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Calculated fair value per share</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">0.82</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">0.50</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">0.49</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">0.80</font></td> <td> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(<i>1) Based on the terms provided in the warrant agreement to purchase common stock of Optex Systems Holdings, Inc. dated August 26, 2016.</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 155.25pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(2) Based on the trading value of common stock of Optex Systems Holdings, Inc. as of each presented period ended date.</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(3) Interest rate for U.S. Treasury Bonds as each presented period ended date, as published by the U.S. Federal Reserve.</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The warrants outstanding and fair values at each of the respective valuation dates are summarized below:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>Warrant Liability</b></font></td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Warrants</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Outstanding</b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Fair Value</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>per Share</b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Fair Value</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(000’s)</b></p></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 49%"><font style="font-size: 10pt"><b>Fair Value as of period ended 9/30/2018</b></font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 14%; text-align: right"><font style="font-size: 10pt">4,260,785</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 14%; text-align: right"><font style="font-size: 10pt">0.82</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt"><b>$</b></font></td> <td style="width: 14%; text-align: right"><font style="font-size: 10pt"><b>3,500</b></font></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Gain on Change in Fair Value of Warrant Liability</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: right"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: right"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(1,385</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Fair Value as of period ended 12/30/2018</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt"><b>4,260,785</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>$</b></font></td> <td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt"><b>0.50</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>2,115</b></font></td> <td style="padding-bottom: 2.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt"><b>Fair Value as of period ended 9/29/2019</b></font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt"><b>4,125,200</b></font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt"><b>$</b></font></td> <td style="text-align: right"><font style="font-size: 10pt"><b>0.49</b></font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt"><b>$</b></font></td> <td style="text-align: right"><font style="font-size: 10pt"><b>2,036</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Loss on Change in Fair Value of Warrant Liability</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: right"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: right"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">1,251</font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Fair Value as of period ended 12/29/2019</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt"><b>4,125,200</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>$</b></font></td> <td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt"><b>0.80</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>3,287</b></font></td> <td style="padding-bottom: 2.5pt"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended December 29, 2019 or December 30, 2018, there were no new issues or exercises of existing warrants. During the three months ended December 29, 2019 and December 30, 2018, the Company recognized a $1.3 million loss and a ($1.4) million gain on the change in fair value of warrants, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The warrant liabilities are considered Level 3 liabilities on the fair value hierarchy as the determination of fair value includes various assumptions about future activities and the Company’s stock prices and historical volatility as inputs.</p>
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<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b>Note 7-Stock Based Compensation</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Stock Options issued to Employees, Officers and Directors</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Optex Systems Holdings 2009 Stock Option Plan provides for the issuance of up to 75,000 shares to the Company’s officers, directors, employees and to independent contractors who provide services to Optex Systems Holdings as either incentive or non-statutory stock options determined at the time of grant. As of September 29, 2019, there were 25,000 fully vested stock options outstanding at an exercise price of $10 per share and an expiration date of December 18, 2020. During the three months ended December 29, 2019, all of the 25,000 outstanding stock options were repurchased at $0.01 per option for a total transaction of $250. There were no new grants of stock options during the three months ended December 29, 2019. As of December 29, 2019, there are zero stock options outstanding.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Restricted Stock Units issued to Officers and Employees</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The following table summarizes the status of Optex Systems Holdings’ aggregate non-vested restricted stock units granted under the Company’s 2016 Restricted Stock Unit Plan:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Outstanding Unvested RSU’s</b></font></td> <td style="padding-bottom: 1.5pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 82%"><font style="font-size: 10pt"><b>Unvested as of October 1, 2018</b></font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 15%; text-align: right"><font style="font-size: 10pt">99,000</font></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Granted - year ended September 29, 2019</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">200,000</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Vested - year ended September 29, 2019</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(82,500</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt"><b>Unvested as of September 29, 2019</b></font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">216,500</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Granted – three months ended December 29, 2019</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Vested - three months ended December 29, 2019</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Unvested as of December 29, 2019</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">216,500</font></td> <td style="padding-bottom: 2.5pt"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the executive compensation package approved by our board of directors on November 20, 2018:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px; text-align: justify"><font style="font-size: 10pt">●</font></td> <td style="text-align: justify"><font style="font-size: 10pt">On January 2, 2019, the Company granted 150,000 and 50,000 restricted stock units with a January 2, 2019 grant date, to Danny Schoening and Karen Hawkins, respectively, vesting as of January 1 each year subsequent to the grant date over a three-year period at a rate of 34% in year one, and 33% each year thereafter. The stock price at grant date was $1.32 per share. The Company will amortize the grant date fair market value of $264 thousand to stock compensation expense on a straight-line basis across the three-year vesting period beginning on January 2, 2019.</font></td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"><font style="font-size: 10pt">●</font></td> <td style="text-align: justify"><font style="font-size: 10pt">Effective as of January 1, 2019, Danny Schoening, CEO and Karen Hawkins, CFO received an 8% salary increase.</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 7, 2019, the Company issued 55,565 common shares to three directors and officers, net of tax withholding of $37 thousand, in settlement of 82,500 restricted stock units which vested on January 1, 2019.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 7, 2020, the Company issued 59,447 common shares to one director and two officers, net of tax withholding of $54 thousand, in settlement of 84,500 restricted stock units which vested on January 1, 2020. (see subsequent events)</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Stock Based Compensation Expense</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">Equity compensation is amortized based on a straight-line basis across the vesting or service period as applicable. The recorded compensation costs for options and shares granted and restricted stock units awarded as well as the unrecognized compensation costs are summarized in the table below:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="14" style="text-align: center"><font style="font-size: 10pt"><b>Stock Compensation</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td> </td> <td colspan="14" style="text-align: center"><font style="font-size: 10pt"><b>(thousands)</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Recognized Compensation Expense</b></font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Unrecognized Compensation Expense</b></font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="6" style="text-align: center"><font style="font-size: 10pt"><b>Three months ended</b></font></td> <td> </td> <td> </td> <td colspan="6" style="text-align: center"><font style="font-size: 10pt"><b>As of period ended</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 29, 2019</b></font></td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 30, 2018</b></font></td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 29, 2019</b></font></td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>September 29, 2019</b></font></td> <td style="padding-bottom: 1.5pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 28%; padding-bottom: 1.5pt"><font style="font-size: 10pt">Restricted Stock Units</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid; width: 1%"> </td> <td style="border-bottom: black 1.5pt solid; width: 15%; text-align: right"><font style="font-size: 10pt">              26</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid; width: 1%"> </td> <td style="border-bottom: black 1.5pt solid; width: 15%; text-align: right"><font style="font-size: 10pt">36</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid; width: 1%"> </td> <td style="border-bottom: black 1.5pt solid; width: 15%; text-align: right"><font style="font-size: 10pt">174</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid; width: 1%"> </td> <td style="border-bottom: black 1.5pt solid; width: 15%; text-align: right"><font style="font-size: 10pt">200</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Total Stock Compensation</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>26</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>36</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>174</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>200</b></font></td> <td style="padding-bottom: 2.5pt"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
</us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock>
<us-gaap:StockholdersEquityNoteDisclosureTextBlock contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 8 Stockholders’ Equity</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Dividends</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of the three months ended December 29, 2019 and the twelve months ended September 29, 2019, there were no declared or outstanding dividends payable.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b><i>Common stock</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There were no new issues of common shares during the three months ending December 29, 2019. As of September 29, 2019 and December 29, 2019, the outstanding common shares were 8,436,422.</p>
</us-gaap:StockholdersEquityNoteDisclosureTextBlock>
<us-gaap:SubsequentEventsTextBlock contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 9 Subsequent Events</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 7, 2020, the Company issued 59,447 common shares to one director and two officers, net of tax withholding of $54 thousand, in settlement of 84,500 restricted stock units which vested on January 1, 2020.</p>
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<us-gaap:ConsolidationPolicyTextBlock contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b><i>Principles of Consolidation: </i></b>The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Optex Systems, Inc. All significant inter-company balances and transactions have been eliminated in consolidation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The condensed consolidated financial statements of Optex Systems Holdings included herein have been prepared by Optex Systems Holdings, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in conjunction with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">These condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and the notes thereto included in the Optex Systems Holdings’ Form 10-K for the year ended September 29, 2019 and other reports filed with the SEC.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The accompanying unaudited interim condensed consolidated financial statements reflect all adjustments of a normal and recurring nature which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows of Optex Systems Holdings for the interim periods presented. The results of operations for these periods are not necessarily comparable to, or indicative of, results of any other interim period or for the fiscal year taken as a whole. Certain information that is not required for interim financial reporting purposes has been omitted.</p>
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<us-gaap:LesseeLeasesPolicyTextBlock contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b><i>Leases: </i></b>In February 2016, FASB issued ASU 2016-02—<i>Leases (Topic 842). </i>The update is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. As such, Optex Systems Holdings adopted these provisions as of the fiscal year beginning on September 30, 2019. Optex Systems Holdings has two significant operating facilities leases and one equipment lease which extends beyond twelve months and fall under the guidance of ASC Topic 842. Adoption of ASC Topic 842 resulted in the balance sheet recognition of a right-of-use asset of $1.7 million and corresponding operating lease liabilities of approximately $1.8 million as of December 29, 2019, representing the present value of future lease payments for the term of the equipment lease and both segment facility leases and which assumes the exercise of a five year renewal option at the Applied Optics Center as of November 1, 2021. See also Note 4.</p>
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<us-gaap:InventoryPolicyTextBlock contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Inventory: </i></b>As of December 29, 2019 and September 29, 2019, inventory included:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="6" style="text-align: center"><font style="font-size: 10pt"><b>(Thousands)</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 29, 2019</b></font></td> <td style="border-right: black 1.5pt solid; padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>September 29, 2019</b></font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 62%"><font style="font-size: 10pt">Raw Material</font></td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; text-align: right"><font style="font-size: 10pt">7,260</font></td> <td style="border-right: black 1.5pt solid; width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; text-align: right"><font style="font-size: 10pt">7,395</font></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Work in Process</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">3,722</font></td> <td style="border-right: black 1.5pt solid"> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">3,599</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Finished Goods</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">387</font></td> <td style="border-right: black 1.5pt solid; padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">254</font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt"><b>Gross Inventory</b></font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">11,369</font></td> <td style="border-right: black 1.5pt solid"> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">11,248</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Less: Inventory Reserves</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(713</font></td> <td style="border-right: black 1.5pt solid; padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(713</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Net Inventory</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">10,656</font></td> <td style="border-right: black 1.5pt solid; padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">10,535</font></td> <td style="padding-bottom: 2.5pt"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
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<us-gaap:ConcentrationRiskCreditRisk contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Concentration of Credit Risk: </i></b>Optex Systems Holdings’ accounts receivables for the period ended December 29, 2019 are derived from revenues of U.S. government agencies: 47%, three major U.S. defense contractors: 20%, 11% and 7%, one commercial customer, 7%, and all other customers: 8%. The Company does not believe that this concentration results in undue credit risk because of the financial strength of the obligees.</p>
</us-gaap:ConcentrationRiskCreditRisk>
<us-gaap:ExtendedProductWarrantyPolicy contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Accrued Warranties: </i></b>Optex Systems Holdings accrues product warranty liabilities based on the historical return rate against period shipments as they occur and reviews and adjusts these accruals quarterly for any significant changes in estimated costs or return rates. The accrued warranty liability includes estimated costs to repair or replace returned warranty backlog units currently in-house plus estimated costs for future warranty returns that may be incurred against warranty covered products previously shipped as of the period end date. As of December 29, 2019 and September 29, 2019, the Company had warranty reserve balances of $75 thousand and $46 thousand, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Three months ended</b></font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 29, 2019</b></font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 30, 2018</b></font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 62%"><font style="font-size: 10pt">Beginning balance</font></td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; text-align: right"><font style="font-size: 10pt">46</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; text-align: right"><font style="font-size: 10pt">101</font></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Incurred costs for warranties satisfied during the period</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">(7</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt"><i>Warranty Expenses:</i></font></td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Warranties reserved for new product shipped during the period<i><sup>(1)</sup></i></font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">20</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">29</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt; padding-left: 10pt"><font style="font-size: 10pt">Change in estimate for pre-existing warranty liabilities <i><sup>(2)</sup></i></font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">9</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(50</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Warranty Expense</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">29</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(21</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Ending balance</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>75</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>73</b></font></td> <td style="padding-bottom: 2.5pt"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(1) Warranty expenses accrued to cost of sales (based on current period shipments and historical warranty return rate).</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(2) Changes in estimated warranty liabilities recognized in cost of sales associated with: the period end customer returned warranty backlog, or the actual costs of repaired/replaced warranty units which were shipped to the customer during the current period.</i></p>
</us-gaap:ExtendedProductWarrantyPolicy>
<us-gaap:UseOfEstimates contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Use of Estimates:</i></b> The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates.</p>
</us-gaap:UseOfEstimates>
<us-gaap:FairValueOfFinancialInstrumentsPolicy contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b><i>Fair Value of Financial Instruments:</i></b> Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of the financial statement presentation date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying value of cash and cash equivalents, accounts payable, accrued liabilities, are carried at, or approximate, fair value as of the reporting date because of their short-term nature. The credit facility is reported at fair value as it bears market rates of interest. Fair values for the Company’s warrant liabilities and derivatives are estimated by utilizing valuation models that consider current and expected stock prices, volatility, dividends, market interest rates, forward yield curves and discount rates. Such amounts and the recognition of such amounts are subject to significant estimates that may change in the future.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value and requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 1: Quoted market prices in active markets for identical assets or liabilities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accounting guidance establishes a hierarchy which requires an entity to maximize the use of quoted market prices and minimize the use of unobservable inputs. An asset or liability’s level is based on the lowest level of input that is significant to the fair value measurement. Fair value estimates are reviewed at the origination date and again at each applicable measurement date and interim or annual financial reporting dates, as applicable for the financial instrument, and are based upon certain market assumptions and pertinent information available to management at those times.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Each of the measurements is considered a Level 3 measurement based on the availability of market data and inputs and the significance of any unobservable inputs as of the measurement date. The methods and significant inputs and assumptions utilized in estimating the fair value of the warrant liabilities, as well as the respective hierarchy designations are discussed further in Note 6 “Warrant Liabilities”.</p>
</us-gaap:FairValueOfFinancialInstrumentsPolicy>
<us-gaap:RevenueRecognitionPolicyTextBlock contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b><i>Revenue Recognition:</i></b> As of fiscal-year beginning on October 1, 2018, the Company has adopted FASB ASC 606—Revenue from Contracts with Customers, which is required for public business entities for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company selected a modified retrospective application of the standard for all periods presented as of the October 1, 2018 implementation date. The new revenue recognition standard requires revenue recognition based on a five-step model that includes: identifying the contract, identifying the performance obligations, determining the transaction price, allocating the transaction price and recognizing the revenue. The standard results in the recognition of revenue depicting the transfer of promised goods or services to customers in an amount reflecting the expected consideration to be received from the customer for such goods and services, based on the satisfaction of performance obligations, occurring when the control of the goods or services transfer to the customer. The majority of the Company’s contracts and customer orders originate with fixed determinable unit prices for each deliverable quantity of goods defined by the customer order line item (performance obligation) and include the specific due date for the transfer of control and title of each of those deliverables to the customer at pre-established payment terms, which are generally within thirty to sixty days from the transfer of title and control. We have elected to account for shipping and handling costs as fulfillment costs after the customer obtains control of the goods. In addition, the company has one ongoing service contract which began in October 2017 which relates to optimized weapon system support (OWSS) and includes ongoing program maintenance, repairs and spare inventory support for the customer’s existing fleet units in service over a three-year period. Revenue recognition for this program has been recorded by the Company, and compensated by the customer, at fixed monthly increments over time, consistent with the defined contract maintenance period.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended December 29, 2019 there was $3 thousand respectively of revenue recognized during the period from customer deposit liabilities (deferred contract revenue). As of December 29, 2019 there are no customer deposit liabilities. As of the three months ended December 29, 2019, there are no significant contract costs such as sales commissions or costs deferred.</p>
</us-gaap:RevenueRecognitionPolicyTextBlock>
<us-gaap:IncomeTaxPolicyTextBlock contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Income Tax/Deferred Tax: </i></b>As of December 29, 2019 Optex Systems, Inc. has a deferred tax asset valuation allowance of ($1.0) million against deferred tax assets of $2.3 million, as compared to a valuation allowance of ($1.0) million against deferred tax assets of $2.4 million as of September 29, 2019. The valuation allowance has been established due to historical losses resulting in a Net Operating Loss Carryforward for each of the fiscal years 2010 through 2019. During the three months ended December 29, 2019, our deferred tax assets decreased by ($0.1) million related current year tax adjustments for amortization expenses and an applied net operating loss carryforward.</p>
</us-gaap:IncomeTaxPolicyTextBlock>
<us-gaap:EarningsPerSharePolicyTextBlock contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Earnings per Share:</i></b> Basic earnings per share is computed by dividing income available for common shareholders (the numerator) by the weighted average number of common shares outstanding (the denominator) for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A significant number of our outstanding warrants are participating securities which share dividend distributions and the allocation of any undistributed earnings (deemed dividends) with our common shareholders. During the three months ended December 29, 2019, there were no declared dividends and zero in allocated undistributed earnings attributable to the participating warrants due to the period net loss. During the three months ended December 30, 2018, declared dividends of $0 and $671 thousand was attributable to participating warrants.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Company has potentially dilutive securities outstanding which include unvested restricted stock units, stock options and warrants. In computing the dilutive effect of convertible preferred stock, the numerator is adjusted to add back any deemed dividends on participating securities (warrants) and the denominator is increased to assume the conversion of the number of additional incremental common shares. The Company uses the Treasury Stock Method to compute the dilutive effect of any dilutive shares. Unvested restricted stock units, stock options and warrants that are anti-dilutive are excluded from the calculation of diluted earnings per common share.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For three months ended December 29, 2019, 4,125,200 warrants (which convert to 506,604 incremental shares for the three months) and 216,500 unvested restricted stock units (which converts to 114,605 incremental shares for the three months), were excluded in the diluted earnings per share calculation as antidilutive due to the period net loss. For the three months ended December 29, 2019, 99,000 unvested restricted stock units (which converts to 77,344 incremental dilutive shares for the three months) and 4,260,785 warrants (which converts to 83,545 incremental dilutive shares for the three months) were included in the diluted earnings per share calculation and 25,000 stock options were excluded from the earnings per share calculation as they were antidilutive.</p>
</us-gaap:EarningsPerSharePolicyTextBlock>
<us-gaap:ScheduleOfInventoryCurrentTableTextBlock contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 29, 2019 and September 29, 2019, inventory included:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="6" style="text-align: center"><font style="font-size: 10pt"><b>(Thousands)</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 29, 2019</b></font></td> <td style="border-right: black 1.5pt solid; padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>September 29, 2019</b></font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 62%"><font style="font-size: 10pt">Raw Material</font></td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; text-align: right"><font style="font-size: 10pt">7,260</font></td> <td style="border-right: black 1.5pt solid; width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; text-align: right"><font style="font-size: 10pt">7,395</font></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Work in Process</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">3,722</font></td> <td style="border-right: black 1.5pt solid"> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">3,599</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Finished Goods</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">387</font></td> <td style="border-right: black 1.5pt solid; padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">254</font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt"><b>Gross Inventory</b></font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">11,369</font></td> <td style="border-right: black 1.5pt solid"> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">11,248</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Less: Inventory Reserves</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(713</font></td> <td style="border-right: black 1.5pt solid; padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(713</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Net Inventory</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">10,656</font></td> <td style="border-right: black 1.5pt solid; padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">10,535</font></td> <td style="padding-bottom: 2.5pt"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
</us-gaap:ScheduleOfInventoryCurrentTableTextBlock>
<OPXS:ClassOfWarrantOrRightOfWarrantyReservesTableTextBlock contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Three months ended</b></font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 29, 2019</b></font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 30, 2018</b></font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 62%"><font style="font-size: 10pt">Beginning balance</font></td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; text-align: right"><font style="font-size: 10pt">46</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; text-align: right"><font style="font-size: 10pt">101</font></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Incurred costs for warranties satisfied during the period</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">(7</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt"><i>Warranty Expenses:</i></font></td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Warranties reserved for new product shipped during the period<i><sup>(1)</sup></i></font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">20</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">29</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt; padding-left: 10pt"><font style="font-size: 10pt">Change in estimate for pre-existing warranty liabilities <i><sup>(2)</sup></i></font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">9</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(50</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Warranty Expense</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">29</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(21</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Ending balance</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>75</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>73</b></font></td> <td style="padding-bottom: 2.5pt"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(1) Warranty expenses accrued to cost of sales (based on current period shipments and historical warranty return rate).</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(2) Changes in estimated warranty liabilities recognized in cost of sales associated with: the period end customer returned warranty backlog, or the actual costs of repaired/replaced warranty units which were shipped to the customer during the current period.</i></p>
</OPXS:ClassOfWarrantOrRightOfWarrantyReservesTableTextBlock>
<us-gaap:ScheduleOfSegmentReportingInformationBySegmentTextBlock contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The financial tables below present the information for each of the reportable segments profit or loss as well as segment assets for each year. The Company does not allocate interest expense, income taxes or unusual items to segments.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="14"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Reportable Segment Financial Information</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(thousands) </b></p></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="14" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Three months ended December 29, 2019</b></font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Optex Systems</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Richardson </b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Applied Optics Center</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Dallas </b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Other </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(non-allocated costs and intersegment eliminations) </b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Consolidated </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Total </b></p></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 40%"><font style="font-size: 10pt">Revenues from external customers</font></td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 12%; text-align: right"><font style="font-size: 10pt">3,644</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 12%; text-align: right"><font style="font-size: 10pt">2,243</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 12%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 12%; text-align: right"><font style="font-size: 10pt">5,887</font></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Intersegment revenues</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">373</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(373</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Total Revenue</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">3,644</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">2,616</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(373</font></td> <td><font style="font-size: 10pt">)</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">5,887</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Interest expense</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">5</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">5</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Depreciation and Amortization</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">6</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">60</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">66</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Income (loss) before taxes</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">482</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">262</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(1,282</font></td> <td><font style="font-size: 10pt">)</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(538</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Other significant noncash items:</font></td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Allocated home office expense</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(170</font></td> <td><font style="font-size: 10pt">)</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">170</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Loss on change in fair value of warrants</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">1,251</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">1,251</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Stock compensation expense</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">26</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">26</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Warranty Expense</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">29</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">29</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Segment Assets</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">12,293</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">7,087</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">19,380</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Expenditures for segment assets</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">13</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">16</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">29</font></td> <td> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="14" style="text-align: center"><font style="font-size: 10pt"><b>Reportable Segment Financial Information<br /> (thousands)</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="14" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Three months ended December 30, 2018</b></font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Optex Systems</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Richardson </b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Applied Optics Center</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Dallas </b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Other </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(non-allocated costs and intersegment eliminations) </b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Consolidated</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Total </b></p></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Revenues from external customers</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">3,830</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">2,061</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">5,891</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 40%; padding-bottom: 1.5pt"><font style="font-size: 10pt">Intersegment revenues</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid; width: 1%"> </td> <td style="border-bottom: black 1.5pt solid; width: 12%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid; width: 1%"> </td> <td style="border-bottom: black 1.5pt solid; width: 12%; text-align: right"><font style="font-size: 10pt">415</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid; width: 1%"> </td> <td style="border-bottom: black 1.5pt solid; width: 12%; text-align: right"><font style="font-size: 10pt">(415</font></td> <td style="width: 1%; padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid; width: 1%"> </td> <td style="border-bottom: black 1.5pt solid; width: 12%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Total Revenue</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">3,830</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">2,476</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(415</font></td> <td><font style="font-size: 10pt">)</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">5,891</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Interest expense</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">6</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">6</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Depreciation and Amortization</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">9</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">76</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">85</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Income before taxes</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">406</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">330</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">1,343</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">2,079</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Other significant noncash items:</font></td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Allocated home office expense</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(170</font></td> <td><font style="font-size: 10pt">)</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">170</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Gain on Change in Fair Value of Warrants</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(1,385</font></td> <td><font style="font-size: 10pt">)</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(1,385</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Stock option compensation expense</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">36</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">36</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Royalty expense amortization</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">8</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">8</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Warranty Expense</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(21</font></td> <td><font style="font-size: 10pt">)</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(21</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Segment Assets</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">9,448</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">4,330</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">13,778</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Expenditures for segment assets</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">4</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">14</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">18</font></td> <td> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
</us-gaap:ScheduleOfSegmentReportingInformationBySegmentTextBlock>
<us-gaap:ScheduleOfFutureMinimumRentalPaymentsForOperatingLeasesTableTextBlock contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 29, 2019, the remaining minimum lease and estimated CAM payments under the non-cancelable office and facility space leases are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td colspan="21" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Non-cancellable Operating Leases</b></font></td></tr> <tr style="vertical-align: bottom"> <td colspan="21" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td> </td> <td colspan="18" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>(Thousands)</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Optex Richardson</b></font></td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Applied Optics Center</b></font></td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Office </b></font></td> <td> </td> <td> </td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Consolidated</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>Fiscal Year</b></font></td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Facility <br /> Lease <br /> Payments</b></font></td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Facility <br /> Lease <br /> Payments</b></font></td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Equipment <br /> Lease<br /> Payments</b></font></td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total<br /> Lease<br /> Payments</b></font></td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total <br /> Variable <br /> CAM Estimate</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 41%"><font style="font: 10pt Times New Roman, Times, Serif">2020 Base year lease</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">219</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">191</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">14</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 8%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">424</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 12%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">151</font></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font: 10pt Times New Roman, Times, Serif">2021 Base year lease</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">148</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">262</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">18</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">428</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">144</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font: 10pt Times New Roman, Times, Serif">2022 Base year lease</font></td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">22</font></td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4</font></td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">26</font></td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">7</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>Total base lease payments</b></font></td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>367</b></font></td> <td> </td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>475</b></font></td> <td> </td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>36</b></font></td> <td> </td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>878</b></font></td> <td> </td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>302</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font: 10pt Times New Roman, Times, Serif">2022-2026 Lease option-assumed exercise<i><sup>(2)</sup></i></font></td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,312</font></td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td> </td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,312</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>Total lease payments</b></font></td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>367</b></font></td> <td> </td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,787</b></font></td> <td> </td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>36</b></font></td> <td> </td> <td> </td> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>2,190</b></font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-indent: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Imputed interest on lease payments <i><sup>(1)</sup></i></font></td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(16</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(383</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(2</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(401</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>Total Operating Lease Liability<i><sup>(3)</sup></i></b></font></td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>351</b></font></td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,404</b></font></td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>34</b></font></td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,789</b></font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font: 10pt Times New Roman, Times, Serif"><b>Right-of-use Asset</b></font></td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>       305</b></font></td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,376</b></font></td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>       34</b></font></td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>  1,715</b></font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(1) Assumes a discount borrowing rate of 7.5%.</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(2) Assumes only one of the two five year options are exercised. The Company believes it is reasonably certain to exercise the first of the two 5 year options but believes the additional 5 year option falls outside of the range of reasonable predicability.</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(3) Short-term and Long-term portion of Operating Lease Liability is $549 thousand and $1,240 thousand, respectively.</i></p>
</us-gaap:ScheduleOfFutureMinimumRentalPaymentsForOperatingLeasesTableTextBlock>
<OPXS:ScheduleOfFairValueOfWarrantLiabilities contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of the warrant liabilities presented below were measured using a Black Scholes Merton (BSM) valuation model. Significant inputs into the respective model at the reporting period measurement dates are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Valuation Assumptions</b></font></td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Period</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>ended</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30, 2018</b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Period</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>ended</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 30,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Period</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>ended</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 29,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2019</b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Period</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>ended</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 29,</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2019</b></p></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 32%"><font style="font-size: 10pt">Exercise Price<sup>(1)</sup></font></td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 14%; text-align: right"><font style="font-size: 10pt">1.50</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 14%; text-align: right"><font style="font-size: 10pt">1.50</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 14%; text-align: right"><font style="font-size: 10pt">1.50</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 14%; text-align: right"><font style="font-size: 10pt">1.50</font></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Warrant Expiration Date <sup>(1)</sup></font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">8/26/2021</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">8/26/2021</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">8/26/2021</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">8/26/2021</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Stock Price <sup>(2)</sup></font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">1.71</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">1.32</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">1.56</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">2.02</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Interest Rate (annual) <sup>(3)</sup></font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">2.88</font></td> <td><font style="font-size: 10pt">%</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">2.49</font></td> <td><font style="font-size: 10pt">%</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">1.63</font></td> <td><font style="font-size: 10pt">%</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">1.58</font></td> <td><font style="font-size: 10pt">%</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Volatility (annual)</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">64.05</font></td> <td><font style="font-size: 10pt">%</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">62.95</font></td> <td><font style="font-size: 10pt">%</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">53.66</font></td> <td><font style="font-size: 10pt">%</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">53.00</font></td> <td><font style="font-size: 10pt">%</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Time to Maturity (Years)</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">2.9</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">2.7</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">1.9</font></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">1.7</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Calculated fair value per share</font></td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">0.82</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">0.50</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">0.49</font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">0.80</font></td> <td> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(<i>1) Based on the terms provided in the warrant agreement to purchase common stock of Optex Systems Holdings, Inc. dated August 26, 2016.</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 155.25pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(2) Based on the trading value of common stock of Optex Systems Holdings, Inc. as of each presented period ended date.</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(3) Interest rate for U.S. Treasury Bonds as each presented period ended date, as published by the U.S. Federal Reserve.</i></p>
</OPXS:ScheduleOfFairValueOfWarrantLiabilities>
<OPXS:ScheduleOfWarrantsOutstandingAndFairValuesAtEachOfRespectiveValuationDatesTableTextBlock contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The warrants outstanding and fair values at each of the respective valuation dates are summarized below:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>Warrant Liability</b></font></td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Warrants</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Outstanding</b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Fair Value</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>per Share</b></p></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Fair Value</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(000’s)</b></p></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 49%"><font style="font-size: 10pt"><b>Fair Value as of period ended 9/30/2018</b></font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 14%; text-align: right"><font style="font-size: 10pt">4,260,785</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 14%; text-align: right"><font style="font-size: 10pt">0.82</font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><font style="font-size: 10pt"><b>$</b></font></td> <td style="width: 14%; text-align: right"><font style="font-size: 10pt"><b>3,500</b></font></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Gain on Change in Fair Value of Warrant Liability</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: right"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: right"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(1,385</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Fair Value as of period ended 12/30/2018</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt"><b>4,260,785</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>$</b></font></td> <td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt"><b>0.50</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>2,115</b></font></td> <td style="padding-bottom: 2.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt"><b>Fair Value as of period ended 9/29/2019</b></font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt"><b>4,125,200</b></font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt"><b>$</b></font></td> <td style="text-align: right"><font style="font-size: 10pt"><b>0.49</b></font></td> <td> </td> <td> </td> <td><font style="font-size: 10pt"><b>$</b></font></td> <td style="text-align: right"><font style="font-size: 10pt"><b>2,036</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Loss on Change in Fair Value of Warrant Liability</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: right"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: right"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">1,251</font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Fair Value as of period ended 12/29/2019</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt"><b>4,125,200</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>$</b></font></td> <td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt"><b>0.80</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>3,287</b></font></td> <td style="padding-bottom: 2.5pt"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
</OPXS:ScheduleOfWarrantsOutstandingAndFairValuesAtEachOfRespectiveValuationDatesTableTextBlock>
<us-gaap:ScheduleOfNonvestedRestrictedStockUnitsActivityTableTextBlock contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The following table summarizes the status of Optex Systems Holdings’ aggregate non-vested restricted stock units granted under the Company’s 2016 Restricted Stock Unit Plan:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Outstanding Unvested RSU’s</b></font></td> <td style="padding-bottom: 1.5pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 82%"><font style="font-size: 10pt"><b>Unvested as of October 1, 2018</b></font></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 15%; text-align: right"><font style="font-size: 10pt">99,000</font></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Granted - year ended September 29, 2019</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">200,000</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Vested - year ended September 29, 2019</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(82,500</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt"><b>Unvested as of September 29, 2019</b></font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">216,500</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Granted – three months ended December 29, 2019</font></td> <td> </td> <td> </td> <td style="text-align: right"><font style="font-size: 10pt">-</font></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Vested - three months ended December 29, 2019</font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Unvested as of December 29, 2019</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">216,500</font></td> <td style="padding-bottom: 2.5pt"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"></p>
</us-gaap:ScheduleOfNonvestedRestrictedStockUnitsActivityTableTextBlock>
<OPXS:StockBasedCompensationExpenseTableTextBlock contextRef="From2019-09-30to2019-12-29">
<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The recorded compensation costs for options and shares granted and restricted stock units awarded as well as the unrecognized compensation costs are summarized in the table below:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="14" style="text-align: center"><font style="font-size: 10pt"><b>Stock Compensation</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td> </td> <td colspan="14" style="text-align: center"><font style="font-size: 10pt"><b>(thousands)</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Recognized Compensation Expense</b></font></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Unrecognized Compensation Expense</b></font></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="6" style="text-align: center"><font style="font-size: 10pt"><b>Three months ended</b></font></td> <td> </td> <td> </td> <td colspan="6" style="text-align: center"><font style="font-size: 10pt"><b>As of period ended</b></font></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 29, 2019</b></font></td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 30, 2018</b></font></td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 29, 2019</b></font></td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>September 29, 2019</b></font></td> <td style="padding-bottom: 1.5pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 28%; padding-bottom: 1.5pt"><font style="font-size: 10pt">Restricted Stock Units</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid; width: 1%"> </td> <td style="border-bottom: black 1.5pt solid; width: 15%; text-align: right"><font style="font-size: 10pt">              26</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid; width: 1%"> </td> <td style="border-bottom: black 1.5pt solid; width: 15%; text-align: right"><font style="font-size: 10pt">36</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid; width: 1%"> </td> <td style="border-bottom: black 1.5pt solid; width: 15%; text-align: right"><font style="font-size: 10pt">174</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid; width: 1%"> </td> <td style="border-bottom: black 1.5pt solid; width: 15%; text-align: right"><font style="font-size: 10pt">200</font></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Total Stock Compensation</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>26</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>36</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>174</b></font></td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>200</b></font></td> <td style="padding-bottom: 2.5pt"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
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<us-gaap:LiabilitiesAssumed1 contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 1894000 </us-gaap:LiabilitiesAssumed1>
<us-gaap:LiabilitiesAssumed1 contextRef="From2018-10-01to2018-12-30" unitRef="USD" xsi:nil="true"/>
<us-gaap:CommitmentsAndContingencies contextRef="AsOf2019-09-29" unitRef="USD" xsi:nil="true"/>
<us-gaap:CommitmentsAndContingencies contextRef="AsOf2019-12-29" unitRef="USD" xsi:nil="true"/>
<OPXS:IncreaseDecreaseInAccruedEstimatedLossOnContracts contextRef="From2019-09-30to2019-12-29" unitRef="USD" xsi:nil="true"/>
<OPXS:IncreaseDecreaseInAccruedEstimatedLossOnContracts contextRef="From2018-10-01to2018-12-30" unitRef="USD" xsi:nil="true"/>
<OPXS:LossGainOnChangeInFairValueOfWarrants contextRef="From2019-09-30to2019-12-29" unitRef="USD" decimals="-3"> 1251000 </OPXS:LossGainOnChangeInFairValueOfWarrants>
<OPXS:LossGainOnChangeInFairValueOfWarrants contextRef="From2018-10-01to2018-12-30" unitRef="USD" decimals="-3"> -1385000 </OPXS:LossGainOnChangeInFairValueOfWarrants>
<OPXS:LesseeOperatingLeaseLiabilityPaymentsDueUptoYearThree contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 878000 </OPXS:LesseeOperatingLeaseLiabilityPaymentsDueUptoYearThree>
<OPXS:LesseeOperatingLeaseLiabilityPaymentsDueUptoYearThree contextRef="AsOf2019-12-29_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="USD" decimals="-3"> 367000 </OPXS:LesseeOperatingLeaseLiabilityPaymentsDueUptoYearThree>
<OPXS:LesseeOperatingLeaseLiabilityPaymentsDueUptoYearThree contextRef="AsOf2019-12-29_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" decimals="-3"> 475000 </OPXS:LesseeOperatingLeaseLiabilityPaymentsDueUptoYearThree>
<OPXS:LesseeOperatingLeaseLiabilityPaymentsDueUptoYearThree contextRef="AsOf2019-12-29_us-gaap_OfficeEquipmentMember" unitRef="USD" decimals="-3"> 36000 </OPXS:LesseeOperatingLeaseLiabilityPaymentsDueUptoYearThree>
<OPXS:LesseeOperatingLeaseLiabilityPaymentsDueUptoYearThree contextRef="AsOf2019-12-29_custom_CommonAreaMaintenanceEstimateMember" unitRef="USD" decimals="-3"> 302000 </OPXS:LesseeOperatingLeaseLiabilityPaymentsDueUptoYearThree>
<OPXS:LesseeOperatingLeaseLiabilityPaymentsDueYearThreeThroughYearSix contextRef="AsOf2019-12-29" unitRef="USD" id="Foot-06-0" decimals="-3"> 1312000 </OPXS:LesseeOperatingLeaseLiabilityPaymentsDueYearThreeThroughYearSix>
<OPXS:LesseeOperatingLeaseLiabilityPaymentsDueYearThreeThroughYearSix contextRef="AsOf2019-12-29_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="USD" id="Foot-06-1" xsi:nil="true"/>
<OPXS:LesseeOperatingLeaseLiabilityPaymentsDueYearThreeThroughYearSix contextRef="AsOf2019-12-29_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" id="Foot-06-2" decimals="-3"> 1312000 </OPXS:LesseeOperatingLeaseLiabilityPaymentsDueYearThreeThroughYearSix>
<OPXS:LesseeOperatingLeaseLiabilityPaymentsDueYearThreeThroughYearSix contextRef="AsOf2019-12-29_us-gaap_OfficeEquipmentMember" unitRef="USD" id="Foot-06-3" xsi:nil="true"/>
<us-gaap:LesseeOperatingLeaseLiabilityPaymentsDue contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 2190000 </us-gaap:LesseeOperatingLeaseLiabilityPaymentsDue>
<us-gaap:LesseeOperatingLeaseLiabilityPaymentsDue contextRef="AsOf2019-12-29_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="USD" decimals="-3"> 367000 </us-gaap:LesseeOperatingLeaseLiabilityPaymentsDue>
<us-gaap:LesseeOperatingLeaseLiabilityPaymentsDue contextRef="AsOf2019-12-29_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" decimals="-3"> 1787000 </us-gaap:LesseeOperatingLeaseLiabilityPaymentsDue>
<us-gaap:LesseeOperatingLeaseLiabilityPaymentsDue contextRef="AsOf2019-12-29_us-gaap_OfficeEquipmentMember" unitRef="USD" decimals="-3"> 36000 </us-gaap:LesseeOperatingLeaseLiabilityPaymentsDue>
<us-gaap:LineOfCreditFacilityDescription contextRef="From2019-09-30to2019-12-29_custom_AvidbankMember_us-gaap_RevolvingCreditFacilityMember"> The Company can maintain accounts at third party banks so long as the total in those other bank accounts does not exceed 20% of the total on deposit at Avidbank, and it shall remit to Avidbank monthly statements for all of those accounts within 30 days of the end of each month. </us-gaap:LineOfCreditFacilityDescription>
<us-gaap:LineOfCreditFacilityCommitmentFeePercentage contextRef="From2018-04-20to2018-04-21_custom_AmendedAndRestatedLoanAgreementMember_custom_AvidbankMember_us-gaap_RevolvingCreditFacilityMember" unitRef="Pure" decimals="INF"> 0.0005 </us-gaap:LineOfCreditFacilityCommitmentFeePercentage>
<us-gaap:ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights contextRef="AsOf2016-08-26_custom_NewShareholdersMember_custom_UnderwriterMember" unitRef="Shares" decimals="INF"> 4323135 </us-gaap:ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights>
<OPXS:ClassOfWarrantOrRightTerminationDate contextRef="From2016-08-25to2016-08-26_custom_NewShareholdersMember_custom_UnderwriterMember"> 2021-08-26 </OPXS:ClassOfWarrantOrRightTerminationDate>
<us-gaap:DeferredRentCreditCurrent contextRef="AsOf2019-09-29_custom_RightOfUseAssetsMember" unitRef="USD" decimals="0"> 83000 </us-gaap:DeferredRentCreditCurrent>
<us-gaap:LesseeOperatingLeaseDiscountRate contextRef="AsOf2019-12-29" unitRef="Pure" decimals="INF"> 0.075 </us-gaap:LesseeOperatingLeaseDiscountRate>
<OPXS:LeaseOptionsExercisedDescription contextRef="From2019-10-01to2019-12-29"> Assumes only one of the two five year options are exercised. The Company believes it is reasonably certain to exercise the first of the two 5 year options but believes the additional 5 year option falls outside of the range of reasonable predicability. </OPXS:LeaseOptionsExercisedDescription>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber contextRef="AsOf2019-09-29_custom_TwoThousandNineStockOptionPlanMember" unitRef="Shares" decimals="INF"> 25000 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber>
<us-gaap:LesseeOperatingLeaseLiabilityUndiscountedExcessAmount contextRef="AsOf2019-12-29" unitRef="USD" id="Foot-07-0" decimals="-3"> 401000 </us-gaap:LesseeOperatingLeaseLiabilityUndiscountedExcessAmount>
<us-gaap:LesseeOperatingLeaseLiabilityUndiscountedExcessAmount contextRef="AsOf2019-12-29_custom_OptexSystemsOPXRichardsonTexasMember" unitRef="USD" id="Foot-07-1" decimals="-3"> 16000 </us-gaap:LesseeOperatingLeaseLiabilityUndiscountedExcessAmount>
<us-gaap:LesseeOperatingLeaseLiabilityUndiscountedExcessAmount contextRef="AsOf2019-12-29_custom_AppliedOpticsCenterAOCDallasMember" unitRef="USD" id="Foot-07-2" decimals="-3"> 383000 </us-gaap:LesseeOperatingLeaseLiabilityUndiscountedExcessAmount>
<us-gaap:LesseeOperatingLeaseLiabilityUndiscountedExcessAmount contextRef="AsOf2019-12-29_us-gaap_OfficeEquipmentMember" unitRef="USD" id="Foot-07-3" decimals="-3"> 2000 </us-gaap:LesseeOperatingLeaseLiabilityUndiscountedExcessAmount>
<us-gaap:OperatingLossCarryforwards contextRef="AsOf2019-12-29" unitRef="USD" decimals="-3"> 100000 </us-gaap:OperatingLossCarryforwards>
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<link:footnote xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/footnote" xlink:label="Footnote-01" xml:lang="en-US"> Based on the terms provided in the warrant agreement to purchase common stock of Optex Systems Holdings, Inc. dated August 26, 2016. </link:footnote>
<link:footnote xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/footnote" xlink:label="Footnote-02" xml:lang="en-US"> Based on the trading value of common stock of Optex Systems Holdings, Inc. as of each presented period ended date. </link:footnote>
<link:footnote xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/footnote" xlink:label="Footnote-03" xml:lang="en-US"> Interest rate for U.S. Treasury Bonds as each presented period ended date, as published by the U.S. Federal Reserve. </link:footnote>
<link:footnote xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/footnote" xlink:label="Footnote-04" xml:lang="en-US"> Assumes a discount borrowing rate of 7.5%. </link:footnote>
<link:footnote xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/footnote" xlink:label="Footnote-05" xml:lang="en-US"> Assumes only one of the two five year options are exercised. The Company believes it is reasonably certain to exercise the first of the two 5 year options but believes the additional 5 year option falls outside of the range of reasonable predicability. </link:footnote>
<link:footnote xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/footnote" xlink:label="Footnote-06" xml:lang="en-US"> Short-term and Long-term portion of Operating Lease Liability is $549 thousand and $1,240 thousand, respectively. </link:footnote>
<link:footnote xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/footnote" xlink:label="Footnote-07" xml:lang="en-US"> Warranty expenses accrued to cost of sales (based on current period shipments and historical warranty return rate). </link:footnote>
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