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Commitments and Contingencies | 3 Months Ended
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Mar. 29, 2026
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies Operating leases Our operating lease obligations mostly include offices, equipment, and distribution centers, with various expiration dates through June 2033. Certain lease agreements include options to renew or terminate the lease, which are generally not reasonably certain to be exercised and therefore are not factored into our determination of lease payments. The terms of certain leases provide for rental payments on a graduated scale. Gross lease expense was $0.8 million and $1.4 million for the three months ended March 29, 2026 and March 30, 2025, respectively. Supplemental cash flow information related to operating leases is as follows:
| Three Months Ended
| March 29, 2026 |  | March 30, 2025
| (In thousands)
Cash paid for amounts included in the measurement of lease liabilities |  |  |
Operating cash flows from operating leases | $ | 567 |  |  | $ | 1,196 |
Right-of-use assets obtained in exchange for lease liabilities |  |  |
Operating leases | $ | — |  |  | $ | 13 |
Weighted average remaining lease term and weighted average discount rate related to operating leases are as follows:
| As of
| March 29, 2026 |  | December 31, 2025
Weighted average remaining lease term | 5.4 years |  | 5.5 years
Weighted average discount rate | 7.74 | % |  | 7.68 | %
The future minimum undiscounted lease payments under operating leases for each of the next five years and thereafter as of March 29, 2026 were as follows:
2026 (Remaining nine months) | $ | 1,922 |
2027 | 2,374 |
2028 | 1,319 |
2029 | 1,021 |
2030 | 994 |
Thereafter | 2,622 |
Total future lease payments | $ | 10,252 |
Less: imputed interest | (2,019) |
Present value of future minimum lease payments | $ | 8,233 |
Accrued liabilities | $ | 2,003 |
Non-current operating lease liabilities | 6,230 |
Total lease liabilities | $ | 8,233 |
Purchase obligations We have entered into various inventory-related purchase agreements with suppliers. Generally, under these agreements, 50% of orders are cancelable by giving notice 46 to 60 days prior to the expected shipment date and 25% of orders are cancelable by giving notice 31 to 45 days prior to the expected shipment date. Orders are non-cancelable within 30 days prior to the expected shipment date. As of March 29, 2026, we had $35.6 million in non-cancelable purchase commitments with suppliers which is expected to be paid over the next twelve months. As of March 29, 2026, an additional $29.9 million of purchase orders beyond contractual termination periods have been issued to supply chain partners in anticipation of demand requirements. Consequently, we may incur expenses for the materials and components, such as chipsets already purchased by the supplier to fulfill our orders if the purchase order is cancelled. Expenses incurred have historically not been material relative to the original order value. Tariff matters The U.S. government has implemented tariff measures affecting a broad range of imported materials, and these measures have been subject to change. We are actively monitoring the changes in global trade policy and the effects they may have on our business and broader macroeconomic environment. Given the uncertainty surrounding global markets as a result of the fluid U.S. tariff policy, we do not have clarity at this point over the potential medium to long term impacts our business may face. We continue to monitor and evaluate these developments and assess their potential impact on our business, financial condition, and results of operations. As of March 29, 2026, we have not recorded any receivables for potential tariff refunds or derecognition of tariff liabilities. Litigation and other legal matters We are, and from time to time, we may become involved in disputes, litigation, and other legal actions in the ordinary course of business. At each reporting period, we evaluate whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. Significant judgment is required to determine both the probability and the estimated amount of loss. In such cases, we accrue for the amount or, if a range, we accrue the low end of the range, only if there is not a better estimate than any other amount within the range, as litigation reserves in other operating expense on the unaudited condensed consolidated statements of operations and comprehensive income (loss). We monitor developments in these legal matters that could affect the estimate we had previously accrued. We currently believe that there are no existing claims or proceedings that are likely to have a material adverse effect on our financial position within the next 12 months. There are many uncertainties associated with any litigation, and these actions or other third-party claims against us may cause us to incur costly litigation and/or substantial settlement charges. In addition, the resolution of any intellectual property litigation may require us to make royalty payments, which could have an adverse effect in future periods. If any of those events were to occur, our business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from our estimates, which could result in the need to adjust the liability and record additional expenses. Indemnifications In the ordinary course of business, we may provide indemnification of varying scope and terms to customers, distributors, resellers, vendors, lessors, business partners, and other parties with respect to certain matters including, but not limited to, losses arising from breach of such agreements or from intellectual property infringement claims made by third parties. In addition, we have entered into indemnification agreements with members of our Board of Directors and certain of our executive officers that require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments we could be required to make under these indemnification agreements is, in many cases, unlimited. As of March 29, 2026 and December 31, 2025, we have not incurred any material costs as a result of such indemnification obligations and we are not currently aware of any indemnification claims.

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