Income Taxes (Tables)

12 Months Ended

Jan. 03, 2026


	Fiscal Year Ended
	January 3, 2026		December 28, 2024
Domestic operations	$	(50,829)	$	(41,208)
Foreign operations		748		874
Total loss before income taxes	$	(50,081)	$	(40,334)

Schedule of income tax provision


	Fiscal Year Ended
	January 3, 2026		December 28, 2024
Current:
State tax	$	58	$	67
Foreign tax		304		200
Total current taxes		362		267
Deferred:
Federal tax		(8,051)		(5,730)
State tax		(1,586)		(1,054)
Total deferred taxes		(9,637)		(6,784)
Valuation allowance		9,637		6,784
Income tax provision	$	362	$	267

Schedule of income tax rate reconciliation and reconciliation of statutory federal income tax expense and total income tax expense


		Fiscal Year Ended
		January 3, 2026
		Amount			Percentage
Provision for income taxes at U.S. federal statutory rate		$	(10,517)		21.0	%
State and local income tax, net of federal tax benefit(1)			46		(0.1)
Foreign tax effects:
Philippines			145		(0.3)
Effect of changes in tax laws or rates enacted in the current period			—		—
Effect of cross-border tax laws:
Global intangible income inclusion			134		(0.3)
Changes in valuation allowance			8,384		(16.7)
Nontaxable or nondeductible items:
Share-based compensation			2,002		(4.1)
Other			168		(0.2)
Total tax provision and effective tax rate		$	362		(0.7)	%

________________

(1)

State income taxes in Texas made up the majority (greater than 50%) of the tax effect in this category.

Below is a reconciliation of the statutory federal income tax expense and the Company’s total income tax expense for the fiscal year ended December 28, 2024:


		Fiscal Year Ended
		December 28, 2024
Income tax at U.S. federal statutory rate		$	(8,470)
Share-based compensation			2,598
State income tax, net of federal tax effect			(780)

Foreign tax		178
Other		(43)
Change in valuation allowance		6,784
Effective income tax benefit	$	267

Summary of Deferred Tax Assets and Deferred Tax Liabilities


	January 3, 2026			December 28, 2024
Deferred tax assets:
Inventory and inventory related allowance	$	4,208		$	1,944
Lease liabilities		6,731			9,564
Share-based compensation		3,031			3,782
Book over tax depreciation		4,598			2,383
Intangibles		72			78
Sales and bad debt allowances		892			1,092
Accrued compensation		42			142
Net operating loss		41,584			34,998
Other		100			114
Total deferred tax assets		61,258			54,097
Valuation allowance		(55,405)			(45,463)
Net deferred tax assets		5,853			8,634
Deferred tax liabilities:
Right-of-use assets		5,852			8,633
Other		1			1
Total deferred tax liabilities		5,853			8,634
Net deferred tax assets	$	—		$	—

Summary of State NOL Carryforwards Expiration Year


2029	$	1,814
2030		9,455
2031		14,557
2032		22,739
2033		24,832
Thereafter		34,884
	$	108,281

Summary of income taxes paid (net refunds received)


	Fiscal Year Ended
	January 3, 2026
United States federal tax	$	—

United States state and local tax:
Illinois		(250)
Texas		64
Other		3
Foreign:
Philippines		90
Total income taxes received by jurisdiction	$	(93)