Balance Sheet Information

6 Months Ended

Jul. 03, 2022

Balance Sheet Information [Abstract]

Certain significant amounts included in our condensed consolidated balance sheets consist of the following:


	July 3, 2022		January 2, 2022
Accounts receivable, net:
Trade accounts receivable	$	23,901	$	23,022
Unbilled revenue (contract assets)	26,005		16,303


Other receivables	—		56
Total accounts receivable, net	$	49,906	$	39,381


	July 3, 2022		January 2, 2022
Inventories:
Raw materials	$	3,945	$	3,340
Work-in-process	335		7,339
Supplies and spare parts	7,586		6,821
Total inventories—current	11,866		17,500
Supplies and spare parts classified as other assets	2,356		2,388
Total inventories	$	14,222	$	19,888


	July 3, 2022		January 2, 2022
Prepaid expenses and other current assets:
Prepaid expenses	$	1,881	$	1,759

Deferred contract costs	3,680		1,579
Prepaid inventory	516		516


Total prepaid assets and other current assets	$	6,077	$	3,854


	July 3, 2022		January 2, 2022
Property and equipment, net:
Land	$	5,396	$	5,396
Buildings and improvements	87,742		87,156
Machinery and equipment	179,784		143,105
Fixed assets not yet in service	11,288		29,229
Total property and equipment, at cost	284,210		264,886
Less: Accumulated depreciation	(97,069)		(84,411)
Total property and equipment, net	$	187,141	$	180,475

Depreciation expense was $6,683 and $6,400 for the three months ended July 3, 2022 and July 4, 2021, respectively, and $12,714 and $12,447 for the six months ended July 3, 2022 and July 4, 2021, respectively. In December 2021, we completed an assessment of the useful lives of our machinery and equipment and adjusted the estimated useful life from seven years to ten years to better reflect the estimated periods during which the assets will remain in service. This change in accounting estimate was effective beginning in December of 2021 on a prospective basis for all machinery and equipment acquired after March 1, 2017, the date in which we became an independent company as part of a divestiture from Cypress. The effect of this change in estimate resulted in a $445 and $889 decrease in depreciation expense for the three and six months ended July 3, 2022, respectively.

Intangible assets consist of purchased software and license costs from our acquisition of the business in 2017. Additionally, we have entered into license agreements for third-party software and licensed technology, which also comprise intangible assets. During the six months ended July 3, 2022, we acquired third-party software and licensed technology of $3,062, which will be amortized over a weighted average estimated life of 9.3 years. Intangible assets are summarized as follows:


	July 3, 2022		January 2, 2022
Intangible assets, net:
Software and licensed technology	$	10,277	$	6,625

Customer list	—		1,500
Total intangible assets, at cost	10,277		8,125
Less: Accumulated amortization	(3,701)		(4,234)
Total intangible assets, net	$	6,576	$	3,891

For the three months ended July 3, 2022 and July 4, 2021, amortization of the customer list intangible asset charged to operations was $0 and $88, respectively, and amortization of software and licensed technology was $518 and $366, respectively. For the six months ended July 3, 2022 and July 4, 2021, amortization of the customer list intangible asset charged to operations was $0 and $176, respectively, and amortization of software and licensed technology was $943 and $713, respectively.

Remaining estimated aggregate annual amortization expense is as follows for the years ending:


	Amortization Expense
Remainder of 2022	$	1,058
2023	1,635
2024	909
2025	744
2026	577
Thereafter	1,653
Total	$	6,576


	July 3, 2022		January 2, 2022
Other assets:
Supplies and spare parts	$	2,356	$	2,388
Deferred contract costs	—		1,760
Operating lease right-of-use assets	163		—
Other assets	844		687
Total other assets	$	3,363	$	4,835


	July 3, 2022		January 2, 2022
Accrued expenses:
Accrued compensation	$	5,007	$	4,557
Licensed technology	2,500		—
Accrued commissions	242		189
Accrued fixed asset expenditures	1,728		861
Accrued royalties	3,355		1,854

Capital lease obligations	1,306		1,192
Accrued inventory	1,467		1,966
Other accrued expenses	9,489		6,864
Total accrued expenses	$	25,094	$	17,483