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Equity-Based Compensation (Tables) | 12 Months Ended
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Dec. 29, 2024
Share-Based Payment Arrangement [Abstract] |
Schedule of Black-Scholes Option Pricing Model Assumptions | The fair value of each stock option is estimated on the date of grant using Black-Scholes and the following assumptions. The expected life of an option represents the period of time that options granted are expected to be outstanding and is based on the SEC Simplified Method (midpoint of average vesting time and contractual term). Expected volatility is based on an average of the historical, daily volatility of a peer group of similar companies blended with SkyWater’s historic daily volatility over a period consistent with the expected life assumption ending on the grant date. Risk-free interest rates are based on yields available on the grant dates for U.S. Treasury Strips with maturities consistent with the expected life assumptions. The Company assumed no dividend yield in the valuation of the options granted as it has never declared or paid dividends on its common stock and has no current plans to introduce dividends as it intends to retain earnings for use in operations.
| Fiscal Year Ended
| December 29, 2024 |  | December 31, 2023 |  | January 1, 2023
Expected life | 6.25 years |  | 6.25 years |  | 6.25 years
Expected volatility | 73.1% - 78.7% |  | 75.1% - 76.5% |  | 73.0%
Risk-free interest rate | 3.80% - 4.70% |  | 3.47% - 4.66% |  | 2.1%
Schedule of Stock Option Activity | The following table summarizes the stock option activity during the fiscal year ended December 29, 2024:
| Number of Stock Options (in thousands) |  | Weighted Average Exercise Price Per Share |  | Weighted-Average Remaining Contractual Life |  | Aggregate Intrinsic Value (in thousands)
Balance outstanding as of December 31, 2023 | 1,637 |  |  | $ | 11.32 |  |  |  |  |
Granted | 688 |  |  | 9.98 |  |  |  |  |
Exercised | (15) |  |  | 9.08 |  |  |  |  |
Forfeited or canceled | (308) |  |  | 11.55 |  |  |  |  |
Balance outstanding as of December 29, 2024 | 2,002 |  |  | 10.87 |  |  | 8.0 years |  | $ | 8,131 |
Balance vested and exercisable as of December 29, 2024 | 351 |  |  | $ | 12.26 |  |  | 7.0 years |  | $ | 1,796 |
Schedule of Restricted Common Stock Unit Activity | The following table summarizes the restricted common stock unit activity during the fiscal year ended December 29, 2024:
| Number of Restricted Common Stock Units (in thousands) |  | Weighted Average Grant Date Fair Value Per Share
Balance outstanding as of December 31, 2023 | 657 |  |  | $ | 10.18
Granted | 628 |  |  | 9.54
Vested | (326) |  |  | 10.86
Forfeited or canceled | (128) |  |  | 10.02
Balance outstanding as of December 29, 2024 | 831 |  |  | $ | 9.59
Schedule of Black-Scholes ESPP Pricing Model Assumptions | The fair value of the 2021 ESPP is estimated on the date of grant using Black-Scholes and the following assumptions. Expected volatility is based on an average of the historical, daily volatility of SkyWater and a peer group of similar companies over a period consistent with the expected life assumption ending on the grant date. Risk-free interest rates are based on yields available on the grant dates for U.S. Treasury Strips with maturities consistent with the expected life assumptions. The Company assumed no dividend yield in the valuation of the options granted as it has never declared or paid dividends on its common stock and has no current plans to introduce dividends as it intends to retain earnings for use in operations.
| Fiscal Year Ended
| December 29, 2024 |  | December 31, 2023 |  | January 1, 2023
Expected life | 0.5 years |  | 0.5 years |  | 0.5 years
Expected volatility | 75.1% |  | 75.1% |  | 73.0%
Risk-free interest rate | 5.11% |  | 5.34% |  | 3.34%
Weighted average grant-date fair value per share | $3.63 |  | $3.57 |  | $4.45
Schedule of Share-based Compensation Expense | Equity-based compensation expense was allocated in the consolidated statements of operations as follows:
| Fiscal Year Ended
| December 29, 2024 |  | December 31, 2023 |  | January 1, 2023
Cost of revenue | $ | 2,113 |  |  | $ | 1,555 |  |  | $ | 2,470 |
Research and development expense | 342 |  |  | 464 |  |  | 575 |
Selling, general and administrative expense | 5,713 |  |  | 4,841 |  |  | 5,171 |
| $ | 8,168 |  |  | $ | 6,860 |  |  | $ | 8,216 |

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