STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

6 Months Ended

Jun. 27, 2026

Equity [Abstract]

STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

10. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

Registered sale of equity securities

On September 29, 2025, the Company entered into a securities purchase agreement (the “Purchase Agreement”) for a private investment in public equity financing (the “PIPE”) for 19,545,950 shares of its common stock, par value $0.01 per share (the “Shares”). The net proceeds to the Company from the offering were approximately $38.1 million, after deducting placement agent fees and commissions and offering expenses payable by the Company. The transaction was consummated on September 30, 2025.

Non-Vested Restricted Common Stock

Restricted stock activity for the six-month period ended June 27, 2026 was as follows:

		Shares				Weighted Average Grant-Date Fair Value				Grant-Date Fair Value
Non-vested at December 27, 2025			5,339,847			$	1.41			$	7,551,683
Granted			1,578,773				2.97			$	4,682,140
Forfeited			(384,050	)			1.50			$	(575,086	)
Vested			(1,280,525	)			1.38			$	(1,767,571	)
Non-vested at June 27, 2026			5,254,045			$	1.88				9,891,166
Expected to vest			5,254,045			$	1.88			$	9,891,166

Stock-Based Compensation

The following table summarizes stock-based compensation expense within each of the categories below as it relates to non-vested restricted common stock and stock options awards for the three and six months ended June 27, 2026 and June 28, 2025 (no tax benefits were recognized):

		Three Months Ended				Three Months Ended				Six Months Ended				Six Months Ended
		June 27, 2026				June 28, 2025				June 27, 2026				June 28, 2025
Cost of product revenues		$	70,169			$	86,569			$	120,177			$	226,006
Research and development			191,611				124,345				328,957				242,065
Selling, general and administrative			711,741				536,803				1,019,715				1,054,038
Total		$	973,521			$	747,717			$	1,468,849			$	1,522,109

Unrecognized compensation expense for non-vested restricted common stock as of June 27, 2026 totaled $9.9 million and is expected to be recognized over a weighted average period of approximately 2.25 years.

Stock Options

During the six months ended June 27, 2026, an option award for 724,638 shares of the Company’s common stock was granted to the Chief Executive Officer. These options have a strike price of $3.21 and vest over a 4 year period. During the six months ended June 27, 2026, the Company recorded incremental stock-based compensation of less than $0.3 million as a result of the granting of stock option awards. As of June 27, 2026, there was approximately $1.7 million of unrecognized compensation cost related to unvested options. The cost is expected to be recognized over a weighted average period of 3.3 years.

The fair value of this options award was estimated using the Black-Scholes model using the following assumptions and had the following fair values:

		Three Months Ended				Six Months Ended
		June 27, 2026				June 27, 2026
Average risk-free interest rate			4.00	%			4.00	%
Expected dividend yield			None				None
Expected life (average, in years)			8.00				8.00
Expected volatility			90.00	%			90.00	%
Weighted average exercise price		$	3.21			$	3.21
Weighted average fair value		$	2.07			$	2.07

The Company’s 2026 average expected volatility and average expected life is based on the average of the Company’s historical information. The risk-free rate is based on the rate of U.S. Treasury zero-coupon issues with a remaining term equal to the expected life of option grants. The Company has paid no dividends on its common stock in the past and does not anticipate paying any dividends in the future.

A summary of stock option activity for the period ended June 27, 2026 is as follows:

SUMMARY OF STOCK OPTION ACTIVITY

		Number of Options				Weighted Average Exercise Price				Intrinsic Value
Outstanding as of December 27, 2025			591,366			$	1.76			$	366,647
Granted			724,638			$	3.21				—
Outstanding as of June 27, 2026			1,316,004			$	2.56			$	—
Options exercisable as of June 27, 2026			312,342			$	2.18			$	—