v3.26.1
Fair Value Measurement
 6 Months Ended
Jul. 05, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurement
Note 3. Fair Value Measurement
The fair value of our financial assets and liabilities are determined in accordance with the fair value hierarchy established in ASC 820, Fair Value Measurements, issued by the FASB. The fair value hierarchy of ASC 820 requires an entity to maximize the use of observable inputs when measuring fair value and classifies those inputs into three levels:
Level 1:Observable inputs, such as quoted prices (unadjusted) in active markets for identical assets or liabilities at the measurement date.
Level 2:Observable inputs, other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3:Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Our financial instruments consist primarily of cash and cash equivalents, short-term investments, accounts receivable, notes receivable, accounts payable, short-term and long-term debt, and warrant liabilities. Cash and cash equivalents are reported at their respective fair values on our Condensed Consolidated Balance Sheets. As of July 5, 2026 and December 28, 2025, the carrying values of accounts and notes receivables, accounts payable, short-term debt and accrued liabilities approximated the fair value based on the short maturity of those instruments. As of July 5, 2026 and December 28, 2025, we had cash and cash equivalents of $33.7 million and $106.0 million, respectively.
The following table details the fair value measurements of assets and liabilities that were measured at fair value on a recurring basis based on the following three-tiered fair value hierarchy per ASC 820, Fair Value Measurement, as of July 5, 2026 and December 28, 2025 (in thousands).
Fair Value Measurement using
Level 1Level 2Level 3Total
As of July 5, 2026
Assets:
Cash equivalents:
Money Market Funds$12,853 $— $— $12,853 
Short-term investments:
U.S. Treasuries— 238,346 — 238,346 
Corporate Notes and Debt Securities— 178,392 — 178,392 
U.S. Government Agency Debt Securities— 25,302 — 25,302 
Long-term investments:
U.S. Treasuries— 54,982 — 54,982 
Corporate Notes and Debt Securities— 9,511 — 9,511 
U.S. Government Agency Debt Securities— 9,937 — 9,937 
Total assets measured at fair value$12,853 $516,470 $— $529,323 
Fair Value Measurement using
Level 1Level 2Level 3Total
As of December 28, 2025
Assets:
Cash equivalents:
Money Market Funds$44,279 $— $— $44,279 
Short-term investments:
U.S. Treasuries— 315,581 — 315,581 
Corporate Notes and Debt Securities— 67,134 — 67,134 
U.S. Government Agency Debt Securities— 23,311 — 23,311 
Long-term investments:
U.S. Treasuries— 92,905 — 92,905 
Corporate Notes and Debt Securities— 8,044 — 8,044 
U.S. Government Agency Debt Securities— 5,861 — 5,861 
Total assets measured at fair value$44,279 $512,836 $— $557,115 
Liabilities:
Private Placement Warrants$— $— $6,578 $6,578 
Cash Equivalents and Short-term Investments:
The following is a summary of cash equivalents and short-term investments (in thousands).
Reported as
Amortized CostUnrealized GainUnrealized LossEstimated Fair ValueCash EquivalentsShort-term InvestmentsLong-term Investments
As of July 5, 2026
Money Market Funds$12,853 $— $— $12,853 $12,853 $— $— 
U.S. Treasuries293,879 — (551)293,328 — 238,346 54,982 
Corporate Notes and Debt Securities188,119 — (216)187,903 — 178,392 9,511 
U.S. Government Agency Debt Securities35,320 — (81)35,239 — 25,302 9,937 
Total$530,171 $— $(848)$529,323 $12,853 $442,040 $74,430 
As of December 28, 2025
Money Market Funds$44,279 $— $— $44,279 $44,279 $— $— 
U.S. Treasuries408,344 142 — 408,486 — 315,581 92,905 
Corporate Notes and Debt Securities75,199 — (21)75,178 — 67,134 8,044 
U.S. Government Agency Debt Securities29,144 28 — 29,172 — 23,311 5,861 
Total$556,966 $170 $(21)$557,115 $44,279 $406,026 $106,810 
As of July 5, 2026, the short-term investments had contractual maturity due within one year.
Private Placement Warrants
Our liabilities are measured at fair value on a recurring basis, including 5,500,000 Private Placement Warrants outstanding that are held by Rodgers Capital, LLC (the “Sponsor”), certain of its board of directors and third-parties (the “Private Placement Warrants”). The fair value of the Private Placement Warrants is considered a Level 3 valuation and is determined using the Black-Scholes valuation model. Each whole Private Placement Warrant became exercisable for one whole share of our common stock at a price of $10.66 per share.
As of July 5, 2026 and December 28, 2025, we had 5,500,000 Private Placement Warrants outstanding. The fair value of the Private Placement Warrants was $0.00 per share as of July 5, 2026 and $1.20 per share as of December 28,
2025. The following tables summarize the changes for Level 3 items measured at fair value on a recurring basis using significant unobservable inputs (in thousands).
Private Placement Warrants
Fair value as of December 28, 2025
$6,578 
Change in fair value(6,578)
Fair value as of July 5, 2026
$— 
Private Placement Warrants
Fair value as of December 29, 2024
$28,380 
Change in fair value(9,911)
Fair value as of June 29, 2025
$18,469 
The following table summarizes the key assumptions used for determining the fair value of the Private Placement warrants.
Private Placement Warrants Outstanding as of July 5, 2026Private Placement Warrants Outstanding as of December 28, 2025
Expected term (in years)0.00.5
Expected volatility76.3%90.8%
Risk-free interest rate3.7%3.6%
Expected dividend rate0.0%0.0%
Convertible Senior Notes and Long-term Loans
We consider the fair value of our convertible senior notes to be a Level 2 measurement as they are not actively traded in the market. As of July 5, 2026, the fair values of the 2028 Convertible Senior Notes and the 2030 Convertible Senior Notes were approximately $165.1 million and $292.3 million, respectively. As of December 28, 2025, the fair values of the 2028 Convertible Senior Notes and 2030 Convertible Senior Notes were approximately $164.4 million and $359.6 million, respectively. As of July 5, 2026, we consider the fair value of the other long-term loans as approximately equal to their carrying values of $0.3 million.