Certain significant amounts included in the Company’s condensed consolidated balance sheets are summarized in the following tables:


	Fiscal Year Ended
Allowance for credit losses - accounts receivable	December 29, 2024		December 31, 2023

Balance at beginning of fiscal year	$	180	$	1,638
Add
Adoption of Credit Loss Standard (Topic 326)	—		168
Provision for credit losses	218		146
Deduct
Accounts written-off	—		1,772
Balance at end of fiscal year	$	398	$	180


Inventory	December 29, 2024		December 31, 2023

Raw materials	$	3,218	$	4,775
Work-in-process	981		19
Supplies and spare parts	10,222		10,547
Finished goods	114		—
Total inventories, current	14,535		15,341
Inventory, non-current (1)	4,747		3,293
Total inventory	$	19,282	$	18,634


Prepaid expenses and other current assets	December 29, 2024		December 31, 2023

Prepaid expenses	$	3,984	$	2,663
Tools purchased for customers (1)	16,923		12,737
Deferred contract costs	1,253		1,453


Investment tax credit receivable	1,316		—
Income tax receivable	—		172
Total prepaid assets and other current assets	$	23,476	$	17,025

(1)The Company acquires tools for its customers that consist of manufacturing equipment its customers will own but will be installed and qualified in a SkyWater facility. Prior to the customer obtaining ownership and control of the equipment, the Company records the costs associated with the acquisition, installation, and qualification of the equipment within prepaid expenses and other current assets. These deferred costs are recognized as cost of revenue when control of the equipment transfers to the customer and the related tools revenue is recognized.


Property and equipment, net	December 29, 2024		December 31, 2023

Land	$	5,396	$	5,396
Buildings and improvements	89,443		88,782
Machinery and equipment	202,667		193,977
Property and equipment placed in service, at cost (1)	297,506		288,155
Less: accumulated depreciation (1)	(150,657)		(137,767)
Property and equipment placed in service, net (1)	146,849		150,388
Property and equipment not yet in service	18,582		8,979
Total property and equipment, net	$	165,431	$	159,367

(1)Includes $10,805 and $13,332 of cost and $2,398 and $3,976 of accumulated depreciation associated with capital assets subject to financing leases at December 29, 2024 and December 31, 2023, respectively. In addition, the December 29, 2024 balance reflects a $4,824 reduction of the cost basis of machinery and equipment arising from investment tax credit on qualifying capital expenditures recognized in fiscal year 2024.

Depreciation expense was $16,769, $27,123, and $26,353, for the fiscal years ended December 29, 2024, December 31, 2023, and January 1, 2023, respectively. Depreciation for the fiscal year ended December 29, 2024 includes a $449 reduction related to the accretion of investment tax credit recognized on qualifying capital expenditures.

In December 2021, SkyWater revised the useful life assigned to its machinery and equipment and prospectively adjusted the estimated useful life from seven years to ten years to better reflect the estimated periods during which the machinery and equipment will remain in service. The effect of this change in accounting estimate resulted in an immaterial change in depreciation expense for the year ended January 1, 2023.


Intangible assets, net	December 29, 2024		December 31, 2023

Software and licensed technology	$	13,742	$	12,148

Less: accumulated amortization	(7,950)		(6,476)
Intangible assets placed in service, net	5,792		5,672
Intangible assets not yet in service	1,987		—
Total intangible assets, net	$	7,779	$	5,672

Intangible assets consist of payments made under software and technology licensing arrangements with third parties. During the fiscal years ended December 29, 2024 and December 31, 2023, the Company acquired third-party software and licensed technology of $1,993 and $1,871, respectively, which will be amortized over a weighted average estimated life of 7.3 years and 7.5 years, respectively.

For the years ended December 29, 2024, December 31, 2023, and January 1, 2023, amortization of software and licenses was $1,474, $1,807, and $1,839, respectively.

Remaining estimated aggregate annual amortization expense for in-service intangible assets is as follows for future fiscal years:


Other assets	December 29, 2024		December 31, 2023

Inventory, non-current (1)	$	4,747	$	3,293

Operating lease right-of-use assets	49		96
Investment tax credit receivable	3,200		—
Other assets	492		1,953
Total other assets	$	8,488	$	5,342


Accrued expenses	December 29, 2024		December 31, 2023

Accrued compensation	$	6,392	$	10,947
Accrued commissions	473		488
Accrued royalties	447		3,122

Current portion of operating lease liabilities	52		48
Current portion of finance lease liabilities	608		645
Accrued inventory	623		1,261
Accrued consulting fees	—		9,345
Accrued restructuring costs (1)	—		1,319
Accrued warranty (2)	3,752		824
Accrued vendor purchase commitments (3)	13,718		10,457
Accrued accounts payable	818		650
Accrued accounts payable - customer	2,175		4,738
Accrued utilities	1,934		879
Other accrued expenses	5,837		3,568
Total accrued expenses	$	36,829	$	48,291

(1)The Company incurred restructuring costs of $188 and $1,921 during the fiscal years ended December 29, 2024 and December 31, 2023. The Company has $0 remaining to be paid as of December 29, 2024.

(2)The Company accrued provisions for warranties of $3,752 and $824 as of December 29, 2024 and December 31, 2023, respectively. Warranty expense for the fiscal year ended December 29, 2024 was $5,455, and warranty credits for the fiscal year ended December 29, 2024 were $2,527.

(3)The Company accrues outstanding obligations on vendor purchase orders for goods or services provided to the Company for which invoices have not yet been received.


Other long-term liabilities	December 29, 2024		December 31, 2023

Finance lease obligations	$	8,652	$	9,275
Operating lease liabilities	—		52
Liability for uncertain tax positions	69		—
Total other long-term liabilities	$	8,721	$	9,327