Income Taxes (Tables)

12 Months Ended

Jan. 02, 2026

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

The components of the provision for income taxes are as follows:


		Fiscal Year Ended
		January 2, 2026				January 3, 2025
(In thousands)
Current taxes:
Federal		$	—			$	(720	)
State			—				(243	)
Total current taxes			—				(963	)
Deferred taxes:
Federal			—				—
State			—				—
Total deferred taxes			—				—
Provision for income taxes		$	—			$	(963	)

Schedule of Effective Income Tax Rate Reconciliation

The differences between income taxes expected at the U.S. federal statutory income tax rate of 21% and the reported income tax benefit are summarized as follows:


		Fiscal Year Ended
		January 2, 2026
(In thousands)
Federal taxes at statutory rate			21.0	%		$	(5,339	)
State and local taxes, net of federal effect			1.0	%			(261	)
Nontaxble or nondeductible items:
IRC Section 162(m) limitation			(0.4	)%			112
Incentive stock option (ISO) expense			(1.5	)%			383
Share-based compensation shortfall			(1.0	)%			262
Contingent consideration adjustment			(1.2	)%			300
Other (meals, penalties, etc.)			(0.3	)%			67
Change in valuation allowance			(18.2	)%			4,625
Other			0.6	%			(149	)
Reported provision for income taxes		$	—			$	—
Effective tax rate			0.0	%


		Fiscal Year Ended
		January 3, 2025
(In thousands)
Expected income tax benefit at federal statutory rate			21.0	%		$	(26,399	)
State income taxes, net of federal income tax benefit			6.4	%			(8,031	)
Return to provision true-up			(1.7	)%			2,150
Permanent items			0.0	%			60
Change in valuation allowance			(23.9	)%			30,016
Other			0.8	%			(963	)
State rate change			(1.8	)%			2,204
Reported provision for income taxes		$	—			$	(963	)
Effective tax rate			0.8	%

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax liabilities and assets are as follows:


		January 2, 2026				January 3, 2025
(In thousands)
Deferred tax liabilities:
Depreciation and amortization		$	(2,674	)		$	(640	)
Right-of-use asset			(4,508	)			(6,640	)
Total deferred tax liabilities		$	(7,182	)		$	(7,280	)
Deferred tax assets:
Intangible assets		$	26,757			$	30,317
Contract loss reserve			6,689				7,854
Investment in partnerships			17,461				22,770
Lease liability			4,550				6,181
Stock compensation			1,083				3,083
Accrued expenses and reserves			6,672				7,814
Section 382 limitation			50,340				45,587
Net operating loss carryforwards			54,373				51,777
Other deferred tax assets			3,130				2,173
Total deferred tax assets		$	171,055			$	177,556
Net deferred tax assets before valuation allowance		$	163,873			$	170,276
Less: Valuation allowance			(163,873	)			(170,276	)
Net deferred tax assets		$	—			$	—