v3.26.3
FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 27, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
The Company’s financial assets and liabilities subject to fair value measurement on a recurring basis and the level of inputs used for such measurements were as follows:
Fair Value Measured on September 27, 2026
Level 1Level 2Level 3Total
Assets:
Interest rate collar asset— 1,924 — 1,924 
Total fair value assets$— $1,924 $— $1,924 
Liabilities:
Earn-out liability— — 229 229 
Total fair value liabilities$— $— $229 $229 
Fair Value Measured on December 31, 2025
Level 1Level 2Level 3Total
Liabilities:
Warrant liability (Public)$1,369 $— $— $1,369 
Warrant liability (Private)— — 655 655 
Earn-out liability— — 2,045 2,045 
Interest rate collar liability— 3,498 — 3,498 
Total fair value liabilities$1,369 $3,498 $2,700 $7,567 
The Company's liabilities for its Private and Public Warrants, earn-out liability, and derivative asset/liability for its Collar are measured at fair value on a recurring basis (see Note 8, “Common Stock Warrants and Earn-Out Liability,” and Note 9, "Derivative Instruments," for more details). The fair values of the Private Warrants and earn-out liability were determined based on significant inputs not observable in the market (Level 3). The valuation of the Level 3 liabilities uses assumptions and estimates the Company believes would be made by a market participant in making the same valuation. The Company assesses these assumptions and estimates on an on-going basis as additional data impacting the assumptions and estimates are obtained. The Company uses a Monte Carlo simulation model to estimate the fair value of its Private Warrants and earn-out liability. The fair value of the Collar, which is included in other noncurrent assets and liabilities depending on the fair value on the condensed consolidated balance sheets, is determined based on models that reflect the contractual terms of the derivative, yield curves, and the credit quality of the counterparties. Inputs are generally observable and do not contain a high level of subjectivity
(Level 2). The fair value of the Public Warrants was determined using publicly traded prices (Level 1). Changes in the fair value of the liabilities related to Warrants and the earn-out liability are recognized as non-operating expense in the condensed consolidated statements of comprehensive income. Changes in the fair value of the Collar are recognized as an adjustment to interest expense in the condensed consolidated statements of comprehensive income. Changes in the fair value of the liabilities related to Warrants, the earn-out liability, and the Collar are recognized in net cash provided by operating activities on the condensed consolidated statements of cash flows.
The fair value of Private Warrants was estimated as of the measurement date using the Monte Carlo simulation model with the following assumptions:
December 31, 2025
Valuation date price$4.13 
Strike price$11.50 
Remaining life (in years)0.54
Expected dividend$— 
Risk-free interest rate3.52%
Price threshold$18.00 
The fair value of the earn-out liability was estimated as of the measurement date using the Monte Carlo simulation model with the following assumptions:
September 27, 2026December 31, 2025
Valuation date price$2.47 $4.13 
Expected term (in years)1.802.54
Expected volatility68.34%78.79%
Risk-free interest rate4.65%3.45%
Price hurdle$15.00 $15.00 
As of September 27, 2026 and December 31, 2025, the Company has accounts receivable, accounts payable, and accrued expenses for which the carrying value approximates fair value due to the short-term nature of these instruments. The carrying value of the Company’s long-term debt approximates fair value as the rates used approximate the market rates currently available to the Company.
The reconciliation of changes in Level 3 liabilities during the 39-week periods ended September 27, 2026 and September 28, 2025 is as follows:
Private WarrantsEarn-Out LiabilityTotal
Balance at December 31, 2024$265 $1,148 $1,413 
Losses included in earnings1,006 722 1,728 
Balance at September 28, 2025$1,271 $1,870 $3,141 
Balance at December 31, 2025$655 $2,045 $2,700 
Gains included in earnings(655)(1,816)(2,471)
Balance at September 27, 2026$— $229 $229