Income Taxes (Tables)

6 Months Ended

Jul. 03, 2026

The Company’s domestic and foreign net loss before income tax (benefit) provision for the three and six months ended July 3, 2026 consists of the following (in thousands):


	Three Months Ended July 3, 2026		Six Months Ended July 3, 2026
Domestic	$	(7,954)	$	(3,596)
Foreign	(284)		(270)
Total	$	(8,238)	$	(3,866)

Schedule of Income Tax Provision

The Company’s income tax (benefit) provision for the three and six months ended July 3, 2026 consists of the following (in thousands):


	Three Months Ended July 3, 2026		Six Months Ended July 3, 2026
Current
Federal	$	(3,050)	$	(3,050)
State	(29)		23
Foreign	—		—
Total current	(3,079)		(3,027)
Deferred
Federal	(647)		3,988
State	(19)		88
Foreign	(5)		(89)
Total deferred	(671)		3,987
Total income tax (benefit) provision	$	(3,750)	$	960

Schedule of Deferred Tax Assets and Liabilities

The approximate tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follows (in thousands):


	July 3, 2026
Deferred tax assets:
Lease liabilities	$	2,672
Accrued expenses and other reserves	1,668
Tax credits	906
Deferred revenue	722
Stock-based compensation	549


Net operating loss carryforwards	89
Other	237
Total deferred tax assets	6,843
Deferred tax liabilities:
Excess of book over tax basis of fixed assets	(6,806)
Right-of-use assets	(2,545)
Unrealized gains	(1,055)
Intangible assets	(237)
Other	(187)
Total deferred tax liabilities	(10,830)
Net deferred tax liabilities	$	(3,987)

Schedule of Income Before Income Tax Expense

The actual tax provision for the three and six months ended July 3, 2026 differs from that derived from using a U.S federal statutory rate of 21% to income before income tax expense as follows (in thousands):


	Three Months Ended July 3, 2026				Six Months Ended July 3, 2026
U.S. federal statutory rate	$	(1,730)	21.0	%	$	(812)	21.0	%
Increase (decrease) in income taxes resulting from:
State and local income tax, net of federal income tax effect	(101)		1.2		(69)		1.8
Foreign tax effects:
Germany	(40)		0.5		(26)		0.7
Effect of changes in tax laws or rates enacted in the current period (net deferred tax liabilities established in connection with the Reorganization)			—		3,533		(91.4)
Effect of cross-border tax laws:
Global Intangible low-taxed income	(60)		0.7		(53)		1.4
Foreign-derived intangible income	209		(2.5)		140		(3.6)
Nontaxable or nondeductible items:
Tax credits	409		(5.0)		269		(7.0)
Stock-based compensation	(831)		10.1		(756)		19.6
Officers compensation	(792)		9.6		(792)		20.5
Other	(73)		0.9		(49)		1.3
Income from debt forbearance	—		—		258		(6.7)
Other reconciling items	(741)		9.1		(683)		17.8
Effective tax rate	$	(3,750)	45.6	%	$	960	(24.8)	%