Related Party Transactions

6 Months Ended

Jul. 03, 2022

In August 2022, we entered into an agreement with Oxbow Industries, LLC (“Oxbow”), an affiliate of our principal stockholder, CMI Oxbow Partners, LLC, to provide funding in an amount up to $12,500, if necessary, to enable the Company to meet its obligations as they become due through October 18, 2022.

Professional Services

Oxbow, an affiliate of our principal stockholder, CMI Oxbow Partners, LLC, provided management and financial consulting services to us prior to our IPO. We incurred management fees to Oxbow of $0 and $55 of during the three months ended July 3, 2022 and July 4, 2021, respectively, and $0 and $215 for the six months ended July 3, 2022 and July 4, 2021, respectively, which have been expensed and included in general and administrative expenses in our condensed consolidated statements of operations.

A member of our board of directors provided legal and professional services to us prior to our IPO. We incurred fees of $0 and $1 for the three months ended July 3, 2022 and July 4, 2021, respectively, and $0 and $117 for the six months ended July 3, 2022 and July 4, 2021, respectively, which have been expensed and included in general and administrative expenses in our condensed consolidated statements of operations.

Sale-Leaseback Transaction

On September 29, 2020, we entered into an agreement to sell the land and building representing our primary operating location in Bloomington, Minnesota to an entity (“Oxbow Realty”) controlled by our principal stockholder. We subsequently entered into an agreement to lease the land and building from Oxbow Realty for initial payments of $394 per month over 20 years. The monthly payments are subject to a 2% increase each year during the term of the lease. We are also required to make certain customary payments constituting "additional rent," including certain monthly reserve, insurance and tax payments, in accordance with the terms of the lease agreement. Future minimum lease commitments to Oxbow Realty as of July 3, 2022 were as follows (such amounts are eliminated from our condensed consolidated financial statements due to the consolidation of Oxbow Realty, see Note 14 – Variable Interest Entities):


Remainder of 2022	$	2,426
2023	4,932
2024	5,031
2025	5,132
2026	5,234
Thereafter	84,116
Total lease payments	106,871
Less: imputed interest	(79,382)
Total	$	27,489