v3.26.1
Income Taxes (Tables)
 12 Months Ended
Dec. 28, 2025
Income Taxes [Abstract]  
Schedule of Loss from Continuing Operations Before Provision for Income Taxes

The Company’s loss from continuing and discontinued operations before provision for income taxes for the fiscal years ended December 28, 2025 and December 29, 2024, was as follows (in thousands):

 

   Fiscal Year Ended 
   December 28,
2025		   December 29,
2024		 
Domestic  $(42,676)  $(54,444)
Foreign   
—
    
—
 
Loss from continuing operations before income taxes  $(42,676)  $(54,444)
           
Loss from discontinued operations before income taxes  $(1,100)  $(2,007)
Schedule of Components of Income Tax Benefit

The components of income tax benefit from continuing and discontinued operations were as follows (in thousands):

 

   Fiscal Year Ended 
   December 28,
2025		   December 29,
2024		 
Current income tax expense          
Federal  $
     —
   $
             —
 
State   278    
—
 
Total current income tax expense   278    
—
 
           
Deferred income tax expense          
Federal   1,200    
—
 
State   100    
—
 
Total deferred income tax expense   1,300    
—
 
Income tax expense from continuing operations  $1,578   $
—
 
           
Income tax expense as a component of discontinued operations  $
—
   $
—
 
Schedule of Reconciliation of Federal Statutory Income Tax Rate to Our Effective Income Tax Rate

The Company adopted ASU 2023-09 prospectively for the fiscal year ended December 28, 2025. The following table presents required disclosure pursuant of ASU 2023-09 and reconciles the Company’s federal statutory tax amount and rate, based on its results from continuing operations, to its actual effective amount and rate:

 

   Dollars (in
thousands)		   Effect on
Effective
Tax Rate		 
Federal tax (benefit) at statutory rate  $(8,962)  $21.0%
State income taxes, net of federal tax benefit (1)   378    (0.9)
Foreign tax effects   
—
    
—
 
Tax law changes   
—
    
—
 
Effect of cross-border tax laws   
—
    
—
 
Tax credits   
—
    
—
 
Valuation allowance   11,328    (26.6)
Nondeductible items   
—
    
—
 
Warranty liability   588    (1.4)
Other nondeductible items   276    (0.6)
Changes in unrecognized tax benefits   
—
    
—
 
Deferred tax true-up   (2,030)   4.8 
Total provision  $1,578   $(3.7)%

 

(1)State taxes in California made up the majority (greater than 50 percent) of the tax effect in this category.

The following table represents the required disclosures prior to the Company’s adoption of ASU 2023-09 and is a reconciliation of the Company’s income tax applied at the federal statutory income tax rate compared to the income tax provision reported on its consolidated statements of operations for continuing operations. (in thousands):

 

   Fiscal Year
Ended		 
   December 29,
2024		 
Statutory federal income tax  $(11,433)
State income taxes, net of federal tax benefits   (2,444)
Stock compensation   1,102 
Fair value adjustments   (980)
Nondeductible items   1,332 
Debt extinguishment   (6,571)
Foreign earnings taxed at different rates   — 
Forward purchase agreements   — 
Effect of changes in tax rates   706 
Prior year adjustments   2,058 
Valuation allowance   16,171 
Other   59 
Tax Provision  $— 
Schedule of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets and liabilities are as follows. (in thousands):

 

   As of 
   December 28,   December 29, 
   2025   2024 
Deferred income tax assets        
Net operating loss  $35,792   $34,749 
Debt derivatives   27,508    24,591 
Bad debt reserve   10,543    431 
Stock based compensation   769    452 
Lease liability   1,657    1,512 
Other reserves   4,633    3,381 
Interest expense carryover   7,267    7,005 
Intangibles   1,447    1,279 
Capitalized research and development   705    824 
Other   2,556    3,336 
Total   92,877    77,560 
Valuation allowance   (70,253)   (55,714)
Net deferred tax assets   22,624    21,846 
Deferred income tax liabilities          
Convertible loan discount   (21,731)   (19,175)
Other   (2,193)   (2,671)
Total deferred tax liabilities   (23,924)   (21,846)
Net deferred tax liability  $(1,300)  $
—
 
Schedule of Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands):

 

   Fiscal Year Ended 
   December 28,
2025		   December 29,
2024		 
Unrecognized tax benefits as of beginning of year  $          —   $53,153 
Increases related to prior year tax positions   —    — 
Increases related to current year tax positions   —    — 
Decreases related to prior year tax positions   —    (53,153)
Unrecognized tax benefits as of end of year  $—   $—