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STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION | 9 Months Ended
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Sep. 27, 2025
Equity [Abstract] |
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION | 7. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION Registered sale of equity securities On September 23, 2024, the Company sold 37,550,000 shares of common stock at a public offering price of $0.65 per share. In addition, in lieu of common stock to certain investors, the Company offered pre-funded warrants to purchase 4,000,000 shares of its common stock at a purchase price of $0.64 per pre-funded warrant, which equals the public offering price per share of the common stock less the $0.01 exercise price per share of each pre-funded warrant. The Company received gross proceeds of $27.0 million before deducting underwriting discounts and offering expenses paid by the Company of $1.8 million. In addition, the Company granted the underwriters a 30-day option to purchase up to an additional 6,232,500 shares of common stock at the public offering price, less underwriting discounts and commissions. On September 30, 2024, the Company sold 2,405,000 shares of common stock and received gross proceeds of approximately $1.6 million. During the three months ended March 30, 2024, the Company sold 3,080,000 shares of common stock for gross proceeds of $7,466,755 (average of $2.42 per share) before deducting broker expenses paid by the Company of approximately $0.2 million, pursuant to the Company’s then effective At-The-Market Equity Offering Sales Agreement, dated as of March 5, 2021 (the “ATM Agreement”) with Stifel, Nicolaus & Company, Incorporated (“Stifel”), as agent. The ATM Agreement terminated in the three months ended March 30, 2024. On June 6, 2024, the Company’s shareholders approved an amendment to the Company’s Amended and Restated Certificate of Incorporation (the “Charter”) to increase the number of authorized shares of the Company’s common stock, par value $0.01 per share, from 150,000,000 shares to 200,000,000 shares. On June 26, 2025, the Company’s shareholders approved an amendment to the Charter to increase the number of authorized shares of the Company’s common stock, par value $0.01 per share, from 200,000,000 shares to 275,000,000 shares. As of September 27, 2025 and December 28, 2024, the Company had 10,000,000 pre-funded warrants outstanding with a $0.01 per share exercise price. Non-Vested Restricted Common Stock The fair value of non-vested restricted common stock awards is generally the market value of the Company’s common stock on the date of grant. The non-vested restricted common stock awards require the employee to fulfill certain obligations, including remaining employed by the Company for periods ranging from one to five years (the vesting period) and in certain cases also require meeting specific performance criteria. For non-vested restricted common stock awards that solely require the recipient to remain employed with the Company, the stock compensation expense is amortized over the requisite service period. For non-vested restricted common stock awards that require the achievement of performance criteria, the Company reviews the probability of achieving the performance goals on a periodic basis. If the Company determines that it is probable that the performance criteria will be achieved, the amount of compensation cost derived for the performance goal is amortized over the anticipated service period. If the performance criteria are not met, no compensation cost is recognized and any previously recognized compensation cost is reversed. Restricted stock activity for the nine month period ended September 27, 2025 was as follows: SCHEDULE OF NON-VESTED RESTRICTED STOCK ACTIVITY
|  | Shares |  |  | Weighted Average Grant Fair Value |  |  | Fair Value |  |  | Intrinsic Value |
Non-vested at December 28, 2024 |  |  | 4,833,611 |  |  | $ | 1.19 |  |  | $ | 5,757,391 |  |  | $ | 6,718,720 |
Granted |  |  | 3,197,864 |  |  |  | 1.75 |  |  |  | 5,596,262 |  |  |  | - |
Forfeited |  |  | (1,163,113 | ) |  |  | 1.62 |  |  |  | (1,884,243 | ) |  |  | - |
Vested |  |  | (687,244 | ) |  |  | 1.53 |  |  |  | (1,051,483 | ) |  |  | - |
Non-vested at September 27, 2025 |  |  | 6,181,118 |  |  | $ | 1.36 |  |  | $ | 8,417,927 |  |  | $ | 14,092,949 |
Expected to vest |  |  | 6,050,629 |  |  |  |  |  |  |  |  |  |  |  |  |
Stock-Based Compensation The following table summarizes stock-based compensation expense within each of the categories below as it relates to non-vested restricted common stock and stock options awards for the three and nine months ended September 27, 2025 and September 28, 2024 (no tax benefits were recognized): SCHEDULE OF STOCK-BASED COMPENSATION EXPENSE
|  | Three Months Ended |  |  | Three Months Ended |  |  | Nine Months Ended |  |  | Nine Months Ended |
|  | September 27, 2025 |  |  | September 28, 2024 |  |  | September 27, 2025 |  |  | September 28, 2024 |
Cost of product revenues |  | $ | 164,502 |  |  | $ | 368,312 |  |  | $ | 390,508 |  |  | $ | 857,236 |
Research and development |  |  | 160,647 |  |  |  | 308,792 |  |  |  | 402,712 |  |  |  | 569,701 |
Selling, general and administrative |  |  | 780,599 |  |  |  | 535,842 |  |  |  | 1,834,637 |  |  |  | 1,197,355 |
Total |  | $ | 1,105,748 |  |  | $ | 1,212,946 |  |  | $ | 2,627,857 |  |  | $ | 2,624,292 |
Unrecognized compensation expense for non-vested restricted common stock as of September 27, 2025 totaled $8.4 million and is expected to be recognized over a weighted average period of approximately two years. Stock Options During the three months ended March 29, 2025, an option award for 591,366 shares of the Company’s common stock was granted to the Chief Executive Officer. These options have a strike price of $1.76 and vest over a 4 year period. During the three and nine months ended September 27, 2025, the Company recorded incremental stock-based compensation of less than $0.1 million and $0.1 million, respectively, as a result of the granting of stock option awards. The remaining unrecognized compensation cost of is expected to be recognized over the remaining vesting period. The fair value of this options award was estimated using the Black-Scholes model using the following assumptions and had the following fair values: SCHEDULE OF STOCK OPTIONS VALUATION ASSUMPTIONS
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 27, 2025 |  |  | September 27, 2025 |
Average risk-free interest rate |  |  | 4.54 | % |  |  | 4.54 | %
Expected dividend yield |  |  | None |  |  |  | None |
Expected life (average, in years) |  |  | 8.00 |  |  |  | 8.00 |
Expected volatility |  |  | 85 | % |  |  | 85 | %
Weighted average exercise price |  | $ | 1.76 |  |  | $ | 1.76 |
Weighted average fair value |  | $ | 1.16 |  |  | $ | 1.16 |
The Company’s 2025 average expected volatility and average expected life is based on the average of the Company’s historical information. The risk-free rate is based on the rate of U.S. Treasury zero-coupon issues with a remaining term equal to the expected life of option grants. The Company has paid no dividends on its common stock in the past and does not anticipate paying any dividends in the future. A summary of stock option activity for the period ended September 27, 2025 is as follows: SCHEDULE OF STOCK OPTION ACTIVITY
|  | Number of Options |  |  | Weighted Average Exercise Price |  |  | Intrinsic Value |
Outstanding as of December 28, 2024 |  |  | — |  |  | $ | — |  |  | $ | — |
Granted |  |  | 591,366 |  |  | $ | 1.76 |  |  |  |  |
Outstanding as of September 27, 2025 |  |  | 591,366 |  |  | $ | 1.76 |  |  | $ | 307,510 |
Options exercisable as of September 27, 2025 |  |  | 73,921 |  |  | $ | 1.76 |  |  | $ | 38,439 |

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/505/tableOfContent + Details
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