Borrowings |
6 Months Ended |
|---|---|
Jul. 04, 2026 | |
| Borrowings | |
| Borrowings | Note 2 – Borrowings Convertible Notes Payable The Company maintains a Credit Facility that provides for, among other things, a revolving commitment, which is subject to a borrowing base derived primarily from cash and cash equivalents, certain receivables and inventory. On September 8, 2025, the Company entered into a purchase agreement (“Purchase Agreement”) with certain investors, pursuant to which the Company issued convertible notes (the “Convertible Notes”) with an aggregate principal amount of $25,000 and issued and sold $10,733 in gross proceeds of common stock (see “Note 3 - Stockholders’ Equity and Share-Based Compensation”). The Convertible Notes accrue interest quarterly at a rate of two percent (2%) per annum, payable in kind. The maturity date is September 10, 2028. The outstanding Convertible Notes principal balance, plus any unpaid and accrued interest, is convertible at the option of the investors into shares of common stock of the Company at the maturity date, at a conversion price of $12.00 per share (“Conversion Price”). As of July 4, 2026 and January 3, 2026, the Convertible Notes payable balance was $25,416 and $25,161, respectively. The Company assessed all terms and features of the Convertible Notes in order to identify any potential embedded features that would require bifurcation. The Company determined that the conversion options of the Convertible Notes, including the conversion feature of the $12.00 Conversion Price, was clearly and closely related to the debt host and did not require separate accounting. Additionally, this feature did not meet the definition of a derivative under ASC 815, Derivatives and Hedging, and as a result, did not require separate accounting as a derivative. Credit Facility On June 15, 2026, the Company and First Business Specialty Finance, LLC (“FBSF”) entered into a Loan and Security Agreement (the “Credit Agreement”) providing for an asset-based revolving credit facility in an aggregate maximum principal amount of up to $25,000 (the “Credit Facility”), secured by substantially all of the assets of the Company. The Credit Facility matures on March 31, 2028. As of July 4, 2026 and January 3, 2026, our outstanding revolving loan balance was $0 and $0, respectively. As of July 4, 2026 and January 3, 2026, the outstanding standby letters of credit balance was $0 and $680, respectively, and we had $0 of our trade letters of credit outstanding in accounts payable in our consolidated balance sheets. Loans drawn under the Credit Facility bear interest at a per annum rate equal to the 1 Month Term Secured Overnight Financing Rate (“”) plus an applicable margin of 3.25% per annum. In addition, if the sum of the Company’s cash balance and availability under the Credit Facility is less than $15,000, or if the Company’s availability under the Credit Facility is less than $7,500, then the Company must maintain a Fixed Charge Coverage Ratio (as defined in the Credit Agreement) of not less than 1.1 to 1.0, tested quarterly on a trailing four-quarter basis. In connection with entering into the Credit Facility with FBSF, the Company and JPMorgan Chase Bank (“JPMC”) terminated the Company’s revolving credit facility with JPMC. At the time it was terminated, there was no balance outstanding on the JPMC revolving loan and there was no termination fee. |