18. COMMITMENTS AND CONTINGENCIES

Litigation

In the normal course of business, the Company may become subject to various claims and litigation. The Company may also become subject to threatened or pending legal actions arising from activities of contractors. A liability is recorded for claims or other contingencies when the risk of loss is probable and the amount can be reasonably estimated. Legal fees are expensed as incurred. As of April 3, 2026 and December 31, 2025, the Company was not subject to any material litigation nor was the Company aware of any material litigation threatened against it.

Retirement Plans

The Company and its subsidiaries maintain defined contribution 401(k) plans for eligible employees. Eligibility generally requires employees to be at least 21 years of age and to have completed a minimum service period. The plans provide for employer matching contributions, which are recognized as expense when incurred. Total matching contributions for the three months ended April 3, 2026 and March 31, 2025, was approximately $0.7 million and $0.8 million, respectively, of which approximately $0.5 million and $0.7 million, respectively, were included within cost of goods sold, $0.1 million and $0.1 million, respectively, were included in general and administrative expenses, $0.1 million and less than $0.1 million, respectively, were included in sales and marketing, and less than $0.1 million and less than $0.1 million, respectively were included in research and development in the consolidated statements of operations. As of April 3, 2026 and December 31, 2025, all matching contributions had been paid except for less than $0.1 million and approximately $0.1 million, respectively, which remained unpaid and was included in accrued expenses and other current liabilities in the consolidated balance sheets.

Additionally, the Company makes contributions to a union retirement plan on behalf of its union employees at fixed rates based on hours worked. During the three months ended April 3, 2026 and March 31, 2025, expenses associated with these contributions totaled approximately $0.1 million for both periods.

Supplier Agreement

In 2024, the Company entered into a five-year supply agreement with a vendor for the purchase of raw materials. Pursuant to the terms of the agreement, the Company made a prepayment of approximately $0.7 million, which will be applied against future purchases in accordance with the contractual schedule. As of April 3, 2026 and December 31, 2025, approximately $0.6 million of the prepayment is classified as other assets, and approximately $0.1 million is included in prepaid and other current assets in the consolidated balance sheets.