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Commitments and Contingencies | 6 Months Ended
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Jun. 28, 2025
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments The Company leases office space under non-cancelable operating leases. Certain of the Company’s operating leases contain renewal options and rent acceleration clauses. Future minimum payments under the non-cancelable operating leases consisted of the following as of June 28, 2025 (in thousands):
Period |  | Future Minimum Lease Payments
Remainder of 2025 |  | $ | 2,222 |
2026 |  | 1,725 |
2027 |  | 1,259 |
2028 |  | 709 |
2029 and thereafter |  | 340 |
Total future minimum lease payments |  | 6,255 |
Less imputed interest |  | (285) |
|  | $ | 5,970 |
As of June 28, 2025, the operating lease liability consisted of the following (in thousands):
Accrued liabilities - current portion of operating leases |  | $ | 3,017 |
Operating leases |  | 2,953 |
|  | $ | 5,970 |
The Company leases its headquarters office space in San Jose, California under a lease agreement that expires in December 2025. The future minimum lease payments under the lease are $1.3 million and are included in the table above. In December 2024, the Company entered into a new headquarters office lease agreement for 23,000 square feet in San Jose, California. The lease is expected to commence in August 2025 for a term of 90 months. The future minimum lease payments of $8.9 million are not included in the table above. The weighted average discount rate for the Company’s operating leases as of June 28, 2025 was 4.4%. The weighted average remaining lease term as of June 28, 2025 was 2.5 years. For the three and six months ended June 28, 2025, rent expense was $1.1 million and $2.2 million, respectively. For the three and six months ended June 29, 2024, rent expense was $1.2 million and $2.3 million, respectively. Cash paid within operating cash flows for operating leases was $2.3 million and $2.2 million for the six months ended June 28, 2025 and June 29, 2024, respectively. Purchase Commitments The Company’s contract manufacturers (“CMs”) and original design manufacturers (“ODMs”) place orders for component inventory based upon the Company’s build forecasts and pursuant to stated component lead times to ensure adequate component supply. The components are used by the CMs and ODMs to build the products included in the build forecasts. The Company generally does not take ownership of the components held by CMs and ODMs. The Company places purchase orders with its CMs and ODMs in order to fulfill its monthly finished product inventory requirements. The Company incurs a liability when the CMs and ODMs convert the component inventory to a finished product and takes ownership of the finished goods inventory. The Company has from time to time, and subject to certain conditions, reimbursed certain suppliers for component inventory purchases when this inventory has been rendered excess or obsolete, for example due to manufacturing and engineering change orders resulting from design changes, manufacturing discontinuation of products by its suppliers, or in cases where the Company has committed inventory levels that exceed projected demand. In the event of termination of services with a manufacturing partner, the Company has purchased, and may be required to purchase in the future, certain of the remaining components inventory held by the CM or ODM as well as any outstanding orders pursuant to the contractual provisions with such CM or ODM. The estimated excess and obsolete component liabilities related to manufacturing and engineering change orders, termination of manufacturing partners and other factors are recorded against Supplier Deposits in “Prepaid expenses and other current assets” or included in “Accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets, because the corresponding component parts have not been received or paid for by the Company. The Company records the related charges in “Cost of revenue” in its Condensed Consolidated Statements of Comprehensive Loss. As of June 28, 2025 and December 31, 2024, the Company had approximately $184.4 million and $138.8 million, respectively, of outstanding purchase commitments for inventories to be delivered by its suppliers, including CMs and ODMs. Litigation From time to time, the Company is involved in various legal proceedings arising from the normal course of business activities. The Company is not currently a party to any legal proceeding that, if determined adversely to the Company, in management’s opinion, is currently expected to individually or in the aggregate have a material adverse effect on the Company’s business, operating results or financial condition taken as a whole.

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