| Leases |
Note 10. Leases Lease expenses recorded within the consolidated statements of operations are comprised as follows:
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
(In thousands) |
|
January 2,
2026 |
|
|
January 3,
2025 |
|
Operating lease cost |
|
|
|
|
|
|
Cost of revenue |
|
$ |
8,600 |
|
|
$ |
10,194 |
|
Selling, general and administrative expenses |
|
|
1,002 |
|
|
|
1,105 |
|
Finance lease cost (all in cost of revenue): |
|
|
|
|
|
|
Amortization of right-of-use assets |
|
|
287 |
|
|
|
287 |
|
Interest on lease liabilities |
|
|
101 |
|
|
|
20 |
|
Short-term lease cost |
|
|
468 |
|
|
|
464 |
|
Total lease cost |
|
$ |
10,458 |
|
|
$ |
12,070 |
|
Additional consolidated balance sheets information related to leases is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet |
|
January 2, |
|
|
January 3, |
|
(In thousands) |
|
Classification |
|
2026 |
|
|
2025 |
|
Assets: |
|
|
|
|
|
|
|
|
Operating lease assets |
|
Lease right-of-use assets |
|
$ |
15,255 |
|
|
$ |
24,232 |
|
Finance lease assets |
|
Lease right-of-use assets |
|
|
1,211 |
|
|
|
— |
|
Total lease assets |
|
|
|
$ |
16,466 |
|
|
$ |
24,232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Current: |
|
|
|
|
|
|
|
|
Operating lease liabilities |
|
Other current liabilities |
|
$ |
4,372 |
|
|
$ |
6,571 |
|
Finance lease liabilities |
|
Other current liabilities |
|
|
337 |
|
|
|
— |
|
Total current lease liabilities |
|
|
|
$ |
4,709 |
|
|
$ |
6,571 |
|
|
|
|
|
|
|
|
|
|
Non-current: |
|
|
|
|
|
|
|
|
Operating lease liabilities |
|
Lease liabilities, non-current |
|
$ |
11,011 |
|
|
$ |
15,987 |
|
Finance lease liabilities |
|
Lease liabilities, non-current |
|
|
902 |
|
|
|
— |
|
Total non-current lease liabilities |
|
|
|
$ |
11,913 |
|
|
$ |
15,987 |
|
Weighted average remaining lease term information related to leases is as follows:
|
|
|
|
|
|
|
|
|
|
|
January 2, |
|
|
January 3, |
|
|
|
2026 |
|
|
2025 |
|
Weighted average remaining lease term (in years): |
|
|
|
|
|
|
Operating leases |
|
|
4.2 |
|
|
|
4.3 |
|
Finance leases |
|
|
2.2 |
|
|
|
— |
|
Weighted average discount rate: |
|
|
|
|
|
|
Operating leases |
|
|
7.4 |
% |
|
|
6.9 |
% |
Finance leases |
|
|
8.8 |
% |
|
|
— |
|
Supplemental cash flow information related to leases is as follows:
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
|
January 2, |
|
|
January 3, |
|
(In thousands) |
|
2026 |
|
|
2025 |
|
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
Operating cash flows from operating leases |
|
$ |
6,810 |
|
|
$ |
8,157 |
|
Financing cash flows from finance leases |
|
|
259 |
|
|
|
317 |
|
Right-of-use assets obtained in exchange for new operating leases |
|
$ |
1,311 |
|
|
$ |
11,862 |
|
Total remaining lease payments under both the Company’s operating and finance leases are as follows:
|
|
|
|
|
|
|
|
|
|
|
Operating |
|
|
Finance |
|
Year |
|
Leases |
|
|
Leases |
|
(In thousands) |
|
|
|
|
|
|
2026 |
|
$ |
5,337 |
|
|
$ |
434 |
|
2027 |
|
|
3,456 |
|
|
|
432 |
|
2028 |
|
|
3,405 |
|
|
|
541 |
|
2029 |
|
|
2,648 |
|
|
|
— |
|
2030 |
|
|
2,122 |
|
|
|
— |
|
Thereafter |
|
|
1,095 |
|
|
|
— |
|
Total lease payments |
|
|
18,063 |
|
|
|
1,407 |
|
Amounts representing interest |
|
|
(2,680 |
) |
|
|
(168 |
) |
Total lease liabilities |
|
$ |
15,383 |
|
|
$ |
1,239 |
|
|