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Business Combinations | 3 Months Ended
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Mar. 29, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] |
Business Combination | Business Combinations Canary Connect, Inc. On March 11, 2026, we entered into, and simultaneously closed an Asset Purchase Agreement with Canary Connect, Inc. (“Canary”), a New York-based Internet of Things (“IoT”) company that designs and sells smart home security devices and SaaS solutions. The purpose of this transaction is to expand our presence in the AI-driven smart home security market. The transaction is accounted for as a business combination in accordance with ASC 805, Business Combinations. As a result of the transaction, we obtained control of Canary by obtaining the ability to direct its ongoing operations and to receive substantially all of the economic benefits associated. As part of this transaction, we also entered into a Transitional Service Agreement with Canary and a Platform Transformation Agreement with Smartfrog & Canary Holdings, Inc. (“Smartfrog Group”) in order to continue servicing Canary’s existing customers and subscribers. We allocate the purchase consideration to the identifiable assets acquired and liabilities assumed in this business combination based on their acquisition-date fair values, which is determined using income and market-based valuation techniques that require significant judgments and assumptions, including projected revenue, profitability and cash flows. Goodwill recognized through our business combinations represents the excess of the purchase price over the fair value of identifiable net assets and is primarily attributable to expected synergies and operational efficiencies and anticipated future economic benefits. The resulting goodwill from the Canary acquisition is deductible for income tax purposes. The preliminary fair value estimates of the net assets acquired are based upon preliminary calculations and valuations, and those estimates and assumptions are subject to change as we obtain additional information for those estimates during the measurement period, which is up to one year from the acquisition date. The acquired intangible assets will be amortized over their estimated useful lives. The acquisition date fair value of the consideration transferred consisted of the following (in thousands):
Cash paid at close | $ | 36,000 |
Fixed deferred acquisition consideration | 12,907 |
Total purchase consideration | $ | 48,907 |
The purchase price allocation are as follows (in thousands):
Assets acquired: |
Inventory | $ | 1,911 |
Intangible assets | 19,490 |
Goodwill | 27,506 |
Total assets acquired | $ | 48,907 |
Liabilities assumed: |
Total liabilities assumed | $ | — |
Fair value of assets acquired and liabilities assumed, net | $ | 48,907 |
During the three months ended March 29, 2026, we recorded $0.5 million acquisition-related costs, which are expensed when incurred and included in other operating expense on the unaudited condensed consolidated statements of operations and comprehensive income (loss). During the three months ended March 29, 2026, Canary’s results of operations are not material and are included within our unaudited condensed consolidated financial statements from an effective date of March 1, 2026. The effect of this business combination was not material to our financial results. Therefore, the actual and pro-forma results of operations subsequent to the acquisition date to March 29, 2026 have not been presented. Aloe Care Health, Inc. On April 16, 2026, we entered into, and simultaneously closed a Merger Agreement with Aloe Care Health, Inc. (“Aloe Care”), a privately held company that provides an AI-powered medical alert and fall prevention platform for patients and their caregivers. The transaction is intended to accelerate the expansion of our AI-powered services for aging-in-place care in collaboration with health providers, patients and their families. Under the Merger Agreement, we acquired 100% of the outstanding equity interests of Aloe Care in exchange for (i) $15.0 million of cash consideration paid at closing; and (ii) contingent earnout of up to $25.0 million, payable, at our option, in cash, shares of our common stock, or a combination of cash and shares, subject to the terms of the Merger Agreement. The transaction will be accounted for as a business combination in accordance with ASC 805, Business Combinations. As a result of the transaction, we obtained control of Aloe Care by obtaining the ability to direct its ongoing operations and to receive substantially all of the economic benefits associated with Aloe Care. During the three months ended March 29, 2026, we recorded $0.8 million acquisition-related costs, which are expensed when incurred and included in other operating expense on the unaudited condensed consolidated statements of operations and comprehensive income (loss). The initial accounting for this business combination is incomplete at the date of this filing as a result of limited time between the acquisition date and the filing date. Accordingly, certain disclosures required under ASC 805, Business Combinations, including the preliminary fair values of assets acquired and liabilities assumed, pre-acquisition contingencies and any residual goodwill have not been provided. We are in the process of gathering the necessary information to complete the accounting for the transaction. Such information will be included in our Quarterly Report on Form 10-Q for the quarter ending on June 28, 2026.

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