v3.25.1
Balance Sheet Information
 3 Months Ended
Mar. 30, 2025
Balance Sheet Information [Abstract]  
Balance Sheet Information Balance Sheet Information
Certain significant amounts included in the Company’s interim condensed consolidated balance sheets are summarized in the following tables:
Three-Month Period Ended
Allowance for credit losses - Accounts ReceivableMarch 30, 2025March 31, 2024
Balance at beginning of period$279 $180 
Add
Provision for credit losses355 (84)
Deduct
Less recoveries of accounts charged-off(37)— 
Net account charge-offs (recoveries)(37)— 
Balance at end of period$597 $96 

InventoryMarch 30, 2025December 29, 2024
Raw materials$3,025 $3,218 
Work-in-process2,230 981 
Supplies and spare parts8,966 10,222 
Finished goods— 114 
Total inventory, current14,221 14,535 
Inventory, non current (1)4,940 4,747 
Total inventory $19,161 $19,282 
__________________
(1)Inventory, non-current consists of spare parts that will not be used within twelve months
Prepaid expenses and other current assets
March 30, 2025December 29, 2024
Prepaid expenses$4,477 $3,984 
Tools purchased for customers (1)15,608 16,923 
Deferred contract costs1,134 1,253 
Investment tax credit receivable4,103 1,316 
Total prepaid assets and other current assets$25,322 $23,476 
__________________
(1)The Company acquires tools for its customers that consist of manufacturing equipment its customers will own but will be installed and qualified in a SkyWater facility. Prior to the customer obtaining ownership and control of the equipment, the Company records the costs associated with the acquisition, installation, and qualification of the equipment within prepaid expenses and other current assets. These deferred costs are recognized as cost of revenue when control of the equipment transfers to the customer and the related tools revenue is recognized.
Property and equipment, net
March 30, 2025December 29, 2024
Land$5,396 $5,396 
Buildings and improvements89,443 89,443 
Machinery and equipment204,299 202,667 
Property and equipment placed in service, at cost (1)299,138 297,506 
Less: accumulated depreciation (1)(154,498)(150,657)
Property and equipment placed in service, net (1)144,640 146,849 
Property and equipment not yet in service18,202 18,582 
Total property and equipment, net$162,842 $165,431 
__________________
(1)Includes $10,594 and $10,805 of cost and $2,289 and $2,398 of accumulated depreciation associated with capital assets subject to financing leases at March 30, 2025 and December 29, 2024, respectively. In addition, the March 30, 2025 balance reflects a $337 reduction of the cost basis of machinery and equipment arising from an investment tax credit on qualifying capital expenditures recognized during the three-month periods ended March 30, 2025. The December 29, 2024 balance reflects a $4,824 reduction of the cost basis of machinery and equipment arising from an investment tax credit on qualifying capital expenditures recognized in fiscal year 2024.
Depreciation expense was $4,029 and $4,690 for the three-month periods ended March 30, 2025 and March 31, 2024, respectively.
Intangible assets, net
March 30, 2025December 29, 2024
Software and licensed technology$13,742 $13,742 
Less: accumulated amortization(8,279)(7,950)
Intangible assets placed in service, net5,463 5,792 
Intangible assets not yet in service2,323 1,987 
Total intangible assets, net$7,786 $7,779 
    
Intangible assets consist primarily of payments made under software and technology licensing arrangements with third parties, in addition to internally developed software costs. For the three-month periods ended March 30, 2025 and March 31, 2024, amortization of software and licenses was $329 and $375, respectively.
Remaining estimated aggregate annual amortization expense for intangible assets placed in service is as follows for future fiscal years:
Amortization
Expense
Remainder of 2025$994 
20261,029 
2027653 
2028653 
2029653 
Thereafter1,481 
Total$5,463 
Other AssetsMarch 30, 2025December 29, 2024
Inventory, non-current (1)$4,940 $4,747 
Operating lease right-of-use assets37 49 
Investment tax credit receivable337 3,200 
Other assets470 492 
Total other assets$5,784 $8,488 
__________________
(1)Inventory, non-current consists of spare parts that will not be used within twelve months
Accrued ExpensesMarch 30, 2025December 29, 2024
Accrued compensation$7,941 $6,392 
Accrued commissions610 473 
Accrued royalties264 447 
Current portion of operating lease liabilities39 52 
Current portion of finance lease liabilities722 608 
Accrued inventory718 623 
Accrued warranty (1)2,687 3,752 
Accrued vendor purchase commitments (2)7,117 13,718 
Accrued accounts payable433 818 
Accrued accounts payable - customer2,258 2,175 
Accrued utilities1,167 1,934 
Other accrued expenses3,986 5,837 
Total accrued expenses$27,942 $36,829 
__________________
(1)The Company accrued provisions for warranties of $2,687 and $3,752 as of March 30, 2025 and December 29, 2024, respectively. Warranty expense for the three-month period ended March 30, 2025 was $239, and warranty credits for the three-month period ended March 30, 2025 were $1,304. Warranty expense for the three-month period ended March 31, 2024 was $426, and warranty credits for the three-month period ended March 31, 2024 were $925.
(2)The Company accrues outstanding obligations on vendor purchase orders for goods or services provided to the Company for which invoices have not yet been received.
Other long-term liabilitiesMarch 30, 2025December 29, 2024
Finance lease obligations$8,374 $8,652 
Liability for uncertain tax positions69 69 
Total other long-term liabilities$8,443 $8,721