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Equity-based compensation
 3 Months Ended
Apr. 01, 2023
Compensation And Employee Benefit Plans [Abstract]  
Equity-based compensation Equity-based compensation
The Company operates an equity-based compensation plan (the “2021 Plan”), which allows for the issuance of stock options (incentive and nonqualified), restricted stock, dividend equivalents, restricted stock units (“RSUs”), other stock-based awards, and cash awards (collectively, “Awards”). As of April 1, 2023, 11,278,656 shares of Class A common stock were authorized to be awarded and 2,762,266 shares were available for Awards.
Equity-based compensation expense for Awards granted under the 2021 Plan for the three months ended April 1, 2023 and April 2, 2022, totaled $1,718 and $4,731, respectively. The expense is primarily included in selling, general and administrative expense with a nominal amount in research and development expense on the consolidated condensed statements of operations and comprehensive loss based upon the department of the employee. There were $430 and $1,225 income tax benefit related to this expense for the three months ended April 1, 2023 and April 2, 2022, respectively.
Restricted Stock Units
During the three months ended April 1, 2023, the Company granted time-based RSUs which vest at various dates through January 3, 2027. RSU compensation expense is recognized over the vesting period, which is typically between 1 and 4 years. Unamortized compensation expense related to the RSUs totaled $2,265 at April 1, 2023, and is expected to be recognized over a weighted average period of approximately 2.50 years. A summary of the RSU award activity for the three months ended April 1, 2023 is as follows (number of units in thousands):
Number of unitsWeighted-average grant-date fair value per unit
Unvested at December 31, 20221,189 $11.96 
Granted39 2.78 
Vested(223)12.77 
Forfeited or canceled(100)12.66 
Unvested at April 1, 2023905 $11.29 
Stock Options
During the three months ended April 1, 2023, the Company granted time-based stock options which vest over 2 to 4 years following the date of grant and expire within 10 years. The fair value of time-based stock options is determined using the Black-Scholes valuation model, with such value recognized as expense over the service period, which is typically 2 to 4 years, net of actual forfeitures. A summary of the Company’s assumptions used in determining the fair value of the stock options granted during the three months ended April 1, 2023 is shown in the following table.
Risk-free interest rate
3.9%
Expected dividend yield— %
Expected stock price volatility
35.2%
Expected life of stock options (years)
6.25
The weighted-average grant date fair value of options granted during the three months ended April 1, 2023 was $1.10 per share. The expected term of the options granted is estimated using the simplified method. Expected volatility is based on the historical volatility of the Company’s peers’ common stock. The risk-free interest rate is determined based upon a constant U.S. Treasury security rate with a contractual life that approximates the expected term of the option. Unamortized compensation expense related to the options totaled $9,614 at April 1, 2023, and is expected to be recognized over a weighted average period of approximately 3.78 years.
A summary of stock option activity is as follows for the three months ended April 1, 2023 (number of options in thousands):
Number of optionsWeighted-average exercise priceWeighted average remaining contractual termAggregate intrinsic value
Outstanding at December 31, 20228,910 $11.65 
Granted22 2.61 
Forfeited or canceled(636)12.61 
Outstanding at April 1, 20238,296 11.56 7.44 years$— 
Exercisable and vested at April 1, 20235,026 $10.87 6.74 years$— 
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the market price of the Company’s Class A common stock for options that had exercise prices lower than $1.07 per share, the closing price of the Company’s Class A common stock on March 31, 2023.
Employee Stock Purchase Plan
The Company operates a non-qualified Employee Stock Purchase Plan (“ESPP”), which provides for the issuance of shares of the Company’s Class A common stock to eligible employees of the Company that elect to participate in the plan and purchase shares of Class A common stock through payroll deductions at a discounted price. As of April 1, 2023, the aggregate number of shares reserved for issuance under the ESPP was 1,181,830. A total of 222,076 shares were issued and $128 of expense was recognized during the three months ended April 1, 2023. A total of 48,993 shares were issued and $158 of expense was recognized during the three months ended April 2, 2022.