v3.26.1
Cloud-Based Software
6 Months Ended
Jul. 03, 2026
Cloud-Based Software [Abstract]  
Cloud-Based Software

Note 6 — Cloud-Based Software

The Company capitalized cloud-based software implementation costs related to several systems, including enterprise resource planning and customer relationship management systems, which were placed into service at the beginning of the second quarter of 2026. The Company expects to continue to invest and add functionality to its systems. Capitalized cloud-based software costs, net consisted of the following (in thousands):

 

 

 

July 3, 2026

 

 

January 2, 2026

 

Capitalized cloud-based software

 

$

36,573

 

 

$

31,527

 

Less accumulated amortization

 

 

(1,462

)

 

 

(409

)

Total capitalized cloud-based software, net

 

$

35,111

 

 

$

31,118

 

 

 

 

 

 

 

 

Capitalized cloud-based software included in prepayments, deposits and other current assets

 

$

3,793

 

 

$

418

 

Capitalized cloud-based software

 

$

31,318

 

 

$

30,700

 

 

Note 6 — Cloud-Based Software (Continued)

Activity related to cloud-based software was as follows (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

July 3, 2026

 

 

June 27, 2025

 

 

July 3, 2026

 

 

June 27, 2025

 

Additions to cloud-based software

 

$

1,378

 

 

$

4,934

 

 

$

5,046

 

 

$

7,101

 

Amortization of cloud-based software

 

 

949

 

 

 

147

 

 

 

1,053

 

 

 

200

 

Capitalized software placed into service

 

 

33,699

 

 

 

 

 

 

33,699

 

 

 

1,256