The Company’s property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense for fiscal years 2025 and 2024 was $20,621 and $18,975, respectively. The cost and related accumulated depreciation of assets retired or otherwise disposed of are removed from the accounts and the resultant gain or loss is reflected in earnings. Repairs and maintenance are expensed as incurred.

Property and equipment consisted of the following as of January 3, 2026 and December 28, 2024:


		January 3, 2026			December 28, 2024
Machinery and equipment		$	15,127		$	18,101
Computer software (purchased and developed) and equipment			48,312			40,768
Vehicles			145			154

Leasehold improvements		2,730		3,958
Furniture and fixtures		470		594
Construction in process		4,580		5,297
		71,364		68,872
Less accumulated depreciation and amortization		(51,173)		(36,666)
Property and equipment, net	$	20,191	$	32,206

Construction in process primarily relates to the Company’s internally developed software.

The Company accounts for any impairment and disposition of long-lived assets in accordance with ASC 360. As of January 3, 2026, the Company considered the significant decline in the Company’s market value, combined with the fiscal year 2025 net cash used in operating activities in the consolidated statements of cash flows, to be changes in circumstances that represent indicators of impairment. Therefore, the consolidated asset group was tested for recoverability by comparing the future undiscounted cash flows against its carrying value. It was determined that the carrying value exceeded the future undiscounted cash flows of the asset group.

The fair value of the asset group, estimated using a market approach in an independent third-party valuation, was less than its carrying amount. Therefore, the excess of the carrying amount above the fair value was the recognized as an impairment loss, which was allocated to the long-lived assets’ carrying values on a pro rata basis. The impairment loss cannot reduce the long-lived asset’s carrying value below its fair value. The Company’s long-lived assets consists of property and equipment, net, right-of-use assets – operating leases, net, and right-of-use assets – finance leases, net. During the fiscal year ended January 3, 2026, the Company recognized an impairment charge of $3,690 on its long-lived assets, resulting in an impairment loss of $3,690 as recorded in operating expense in the consolidated statements of operations. During the fiscal year ended December 28, 2024, no impairment loss was recorded.