Variable Interest Entity

Oxbow Realty was established for the purpose of holding real estate and facilitating real estate transactions on behalf of Oxbow Industries. This included facilitating the purchase of the land and building of SkyWater’s Minnesota facility with proceeds from a bank loan (see Note 6 – Debt) and managing the leaseback of the land and building to SkyWater (see Note 10 – Related Party Transactions). Management determined that Oxbow Realty meets the definition of a VIE under Accounting Standards Codification Topic 810, “Consolidations” (“Topic 810”), because it lacks sufficient equity to finance its activities. Furthermore, the Company is the primary beneficiary of Oxbow Realty as it has the power over those activities that most significantly affect Oxbow Realty’s economic performance, mainly activities focused on the operation and maintenance of the Minnesota facility. As the primary beneficiary, the Company consolidates the assets, liabilities, and results of operations of Oxbow Realty pursuant to Topic 810, eliminating any transactions between the Company and Oxbow Realty, and recording a noncontrolling interest for the economic interest in Oxbow Realty attributable to parties other than the Company’s common stock shareholders. In addition, the assets of Oxbow Realty can only be used to settle its liabilities, and the creditors of Oxbow Realty do not have recourse to the general credit of SkyWater.

The following table shows the carrying amounts of assets and liabilities of Oxbow Realty that are consolidated by the Company as of March 30, 2025 and December 29, 2024. The assets and liabilities are presented prior to the elimination of intercompany balances.


	March 30, 2025		December 29, 2024

Cash and cash equivalents	$	107	$	383
Accounts receivable	1,290		1,242
Prepaid expenses	6		—
Finance receivable	41,257		41,153
Other assets	85		107
Total assets	$	42,745	$	42,885

Accounts payable	$	1,290	$	1,217
Accrued expenses	49		80
Contract liabilities	1,026		1,078
Debt	34,351		34,634
Total liabilities	$	36,716	$	37,009

The following table shows the revenue and expenses of Oxbow Realty for the three-month periods ended March 30, 2025 and March 31, 2024. These results of Oxbow Realty are presented prior to the elimination of intercompany transactions.


	Three-Month Period Ended
		March 30, 2025		March 31, 2024

Revenue		$	1,434	$	1,419
General and administrative expenses		3		16
Interest expense		304		306
Total expenses		307		322
Net income		$	1,127	$	1,097