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   $ —     $ —