2022 Incentive Award Plan—The 2022 Incentive Award Plan (“2022 Plan”), provides for the issuance of share-based awards, including stock options and restricted stock units (“RSUs”). Pursuant to the evergreen provisions of the 2022 Plan effective the first day of each calendar year beginning January 1, 2026, the number of shares reserved for the 2022 Plan will be increased unless otherwise determined by the Company’s Board. Under this provision for the calendar year beginning January 1, 2026, the number of shares of the Company's common stock reserved for awards under the 2022 Plan increased by 4.7 million shares, which was ratified by the Company's Board. As of October 3, 2026, the Company had 20.4 million shares authorized for issuance under the 2022 Plan. Refer to Note 17, Shareholders' Equity and Stock-based Compensation, within the audited consolidated financial statements for the fiscal year ended January 3, 2026 included in the Company's Annual Report on Form 10-K for additional detail on the terms of the 2022 Plan.

Under the 2022 Plan, the Company granted 0.1 million RSUs at a weighted average grant date fair value of $3.76 per RSU during the three months ended October 3, 2026. There were no stock options granted during the three months ended October 3, 2026. The Company granted 3.7 million stock options with a weighted average exercise price of $1.93 at a weighted average grant date fair value of $1.15 per stock option as well as 2.7 million RSUs at a weighted average grant date fair value of $2.06 per RSU during the nine months ended October 3, 2026. Awards granted to employees during the three and nine months ended October 3, 2026, generally have a service-based vesting condition for which the awards vest 25% upon the first anniversary of the grant date and the remaining in equal quarterly installments over the following three years, subject to the retirement eligibility of individual holders, except for certain executive awards which vest 50% on the second anniversary of the grant date and in equal annual installments for the following two years. Stock options generally have a 10-year term for exercise, except for certain executive stock options that have a 5-year term for exercise. RSUs granted to the Company's board of directors during the three and nine months ended October 3, 2026 have a service-based vesting condition for which the awards vest over approximately one year subject to continued service.

Stock-based Compensation Expense—Total stock-based compensation expense for all stock-based compensation awards was $1.3 million and $2.8 million during the three months ended October 3, 2026 and September 27, 2025, respectively, and $5.5 million and $10.4 million during the nine months ended October 3, 2026 and September 27, 2025, respectively, and was recognized in selling, general, and administrative expense in the unaudited condensed consolidated statements of operations and comprehensive (loss) income. As of October 3, 2026, the total unrecognized stock-based compensation expense for stock options and RSUs, net of estimated forfeitures, was $10.9 million, which will be recognized over the remaining weighted average period of 3.0 years.