Property, Plant and Equipment

6 Months Ended

Jun. 27, 2025

Property, Plant and Equipment [Abstract]

Note 5 — Property, Plant and Equipment

Property, plant and equipment, net consisted of the following (in thousands):


	June 27, 2025			December 27, 2024
Machinery and equipment	$	43,487		$	46,113
Computer equipment and software		11,315			12,976
Furniture and fixtures		7,727			7,627
Leasehold improvements		18,671			19,766
Construction in process		30,551			32,014
Total property, plant and equipment, gross		111,751			118,496
Less accumulated depreciation		(37,334	)		(33,607	)
Total property, plant and equipment, net	$	74,417		$	84,889

Note 5 — Property, Plant and Equipment (Continued)

As discussed in Note 1, during the three and six months ended June 27, 2025, the Company recognized fixed asset impairment expense of $700,000 and $7,759,000, respectively, primarily on leasehold improvements and machinery and equipment as the Company will no longer be using these assets. The Company also recognized impairment during the three and six months ended June 27, 2025 of $0 and $2,751,000, respectively, for internally developed software that the Company will no longer be using as it will transition to a cloud-based software solution. These amounts are recorded in Restructuring, impairment and related charges on the Condensed Consolidated Statement of Operations.

Construction in process primarily consists of the build out and validation of machinery and equipment.

The Company recorded depreciation expense in the following categories as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 27, 2025		June 28, 2024		June 27, 2025		June 28, 2024
Cost of sales	$	772	$	582	$	1,640	$	1,028
General and administrative		841		482		1,916		947
Selling and marketing		174		259		349		392
Research and development		188		162		370		318
Total depreciation expense	$	1,975	$	1,485	$	4,275	$	2,685