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FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 27, 2025

Investments, All Other Investments [Abstract]

FINANCIAL INSTRUMENTS

3. FINANCIAL INSTRUMENTS

Fair Value Measurements

Financial instruments are categorized as Level 1, Level 2 or Level 3 based upon the method by which their fair value is computed. An investment is categorized as Level 1 when its fair value is based on unadjusted quoted prices in active markets for identical assets that the Company has the ability to access at the measurement date. An investment is categorized as Level 2 if its fair market value is based on quoted market prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, based on observable inputs such as interest rates, yield curves, or derived from or corroborated by observable market data by correlation or other means. The Company’s Level 2 investments are based on a yield to maturity models and market interest rates. An investment is categorized as Level 3 if its fair value is based on unobservable inputs for the asset.

The following table details the recurring fair value measurements of the Company’s financial assets:

		Total				Level 1				Level 2				Level 3
						Fair Value Measurement at September 27, 2025:
		Total				Level 1				Level 2				Level 3
Cash equivalents		$	246,000			$	246,000			$	—			$	—
Certificates of deposit			500,000				—				500,000				—
Equity Investments			725,694				725,694				—				—
Financial assets		$	1,471,694			$	971,694			$	500,000			$	—

		Total				Level 1				Level 2				Level 3
						Fair Value Measurement at December 28, 2024:
		Total				Level 1				Level 2				Level 3
Cash equivalents		$	12,438,130			$	11,592,842			$	845,288			$	—
U.S. Government and agency backed securities			17,436,195				1,995,520				15,440,675				—
Certificates of deposit			4,483,463				—				4,483,463				—
Equity Investments			699,176				699,176				—				—
Financial assets		$	35,056,964			$	14,287,538			$	20,769,426			$	—

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value because of their short-term nature. There was $0.5 million of certificates of deposit included in restricted cash at September 27, 2025 and December 28, 2024.

Marketable Securities

The Company validates the fair market values of the financial instruments below by using a model that incorporates current interest rates and remaining term. The restricted cash balance at September 27, 2025 and December 28, 2024 is invested in a certificate of deposit and money market funds. The restricted cash balance that is invested in a certificate of deposit is classified as an available-for-sale marketable security. Investments in available-for-sale marketable securities are as follows at September 27, 2025 and December 28, 2024:

		Amortized Cost								Unrealized (Loss) Gain								Fair Value
		2025				2024				2025				2024				2025				2024
U.S. Government and agency backed securities		$	—			$	17,243,599			$	—			$	192,596			$	—			$	17,436,195
Certificates of deposit			500,000				4,480,096				—				3,367				500,000				4,483,463
Total		$	500,000			$	21,723,695			$	—			$	195,963			$	500,000			$	21,919,658

The contractual maturity of the Company’s marketable debt securities is as follows at September 27, 2025:

		Less than One year				One to Five years				Total
Certificates of deposit		$	500,000			$	—			$	500,000

Equity Investments

Equity investments rarely traded or not quoted will generally have less (or no) pricing observability and a higher degree of judgment utilized in measuring fair value. Initial measurement of equity investments occurs when an observable price for the equity investment is available. The Company adopted the measurement alternative for equity investments without readily determinable fair values, which is often referred to as cost method investments, adjusted for changes in observable market transactions. As a result, these investments are revalued upon occurrence of an observable price change for similar investments and for impairments. As of September 27, 2025 and December 28, 2024, the carrying value of these equity investments was $2.4 million and $2.9 million, respectively.

The Company has an equity interest in a Lenovo New Vision which it acquired through purchasing capital and contributing certain intellectual property. As of September 27, 2025, the Company owned an approximate 10% interest in this investment and the carrying value of this equity investment was $1.5 million at September 27, 2025 and December 28, 2024.

The Company has an investment in RealWear Inc. (RealWear) which had been valued at $2.5 million as of fiscal year-end 2023. In the second quarter of 2024, the Company reviewed the financial condition and an observable price point in an equity transaction, and as a result, recorded impairment charges of $0.7 million. In the fourth quarter of 2024, RealWear entered into a merger agreement and based upon the information provided, in the third quarter of 2024, the Company recorded an impairment charge of $1.1 million, reducing the value of the investment to $0.7 million. In the fourth quarter of 2024, RealWear completed its merger, subject to post closing events. The Company performed a valuation of the investment based on the merger agreement, available financial statements and projections, assumptions on the post-closing events and the resulting dilution, and 100% volatility, a risk-free interest rate of 4.5% and an expected term of one year and recorded a write up in the RealWear investment of $0.2 million. In the first quarter of 2025, the Company reviewed the financial condition and as a result, the Company recorded an impairment charge of less than $0.1 million. In the third quarter of 2025, the Company performed a valuation of the investment based on the available financial statements and projections and the assumptions of 115% volatility, a risk-free interest rate of 3.79%, an expected term of six months and recorded an impairment charge of $0.4 million. As of September 27, 2025, the carrying value of this investment was $0.4 million.

The Company has an equity investment in Solos Incorporation (“Solos Inc.”). The carrying value of this equity investment was $0.2 million at September 27, 2025 and December 28, 2024.

The Company has an equity investment in HMDmd. The carrying value of this equity investment was $0.3 million at September 27, 2025 and December 28, 2024.