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Mergers and Acquisitions (Tables)

9 Months Ended

Sep. 28, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Schedule of Fair Value Adjustments for Shares of Series B and Series M Preferred Stock

The fair value of the purchase price components outlined above was $16.0 million due to fair value adjustments for the shares of Series B Stock and Series M Stock, as detailed below (in $000’s):

Common stock						$	7,448
Series B preferred stock						8,552
Total purchase price						$	16,000

Schedule of Purchase Price Allocation of Purchase for ALT5 Subsidiary to Acquired Identifiable Assets, Liabilities Assumed and Goodwill

The table below outlines the purchase price allocation of the purchase for ALT5 Subsidiary to the acquired identifiable assets, liabilities assumed and goodwill (in $000’s):

Total purchase price									$	16,000
Accounts payable									267
Digital assets payable									16,763
Debt									7,613
Total liabilities assumed									24,643
Total consideration									40,643
Cash									5,853
Accounts receivable									2,917
Digital assets receivable									9,082
Intangible assets
Customer relationships						$	13,925
Trade names						2,675
Developed technology						1,850
Subtotal intangible assets									18,450
Other									492
Total assets acquired									36,794
Total goodwill									$	3,849

and an

Schedule of Proforma Information

The table below presents selected proforma information for the Company for the thirteen and twenty-six week periods ended September 28, 2024, assuming that the acquisition had occurred on January 1, 2023 (the beginning of the Company’s 2023 fiscal year), pursuant to ASC 805-10-50 (in $000’s). This proforma information does not purport to

represent what the actual results of operations of the Company would have been had the acquisition occurred on that date, nor does it purport to predict the results of operations for future periods.

			As Reported												Adjustments						Proforma
			ALT5 Sigma Corporation Unaudited 13 weeks ended September 28, 2024						ALT5 Subsidiary Unaudited 13 weeks ended September 28, 2024						Adjustments(1)						ALT5 Sigma Corporation for the 13 weeks ended September 28, 2024
Net revenue			$	4,941					$	—											$	4,941
Net income			$	(822)					$	—					$	—					$	(822)
Earnings per basic common share			$	(0.06)																	$	0.10
Earnings per basic diluted share			$	(0.06)																	$	0.10
			As Reported												Adjustments						Proforma
			ALT5 Sigma Corporation Unaudited 13 weeks ended September 30, 2023						ALT5 Subsidiary Unaudited 13 weeks ended September 30, 2023						Adjustments(1)						ALT5 Sigma Corporation for the 13 weeks ended September 30, 2023
Net revenue			$	—					$	1,657											$	1,657
Net income			$	(214)					$	953					$	(537)					$	202
Earnings per basic common share			$	(0.05)																	$	0.05
Earnings per basic diluted share			$	(0.05)																	$	0.05
			As Reported												Adjustments						Proforma
			ALT5 Sigma Corporation Unaudited 39 weeks ended September 28, 2024						ALT5 Subsidiary Unaudited 39 weeks ended September 28, 2024						Adjustments(1)						ALT5 Sigma Corporation for the 39 weeks ended September 28, 2024
Net revenue			$	7,110					$	2,918											$	10,028
Net income			$	(2,377)					$	71					$	(806)					$	(3,112)
Earnings per basic common share			$	(0.24)																	$	(0.36)
Earnings per basic diluted share			$	(0.24)																	$	(0.36)
			As Reported												Adjustments						Proforma
			ALT5 Sigma Corporation Unaudited 39 weeks ended September 30, 2023						ALT5 Subsidiary Unaudited 39 weeks ended September 30, 2023						Adjustments(1)						ALT5 Sigma Corporation for the 39 weeks ended September 30, 2023
Net revenue			$	—					$	4,912											$	4,912
Net income			$	9,993					$	2,345					$	(1,611)					$	10,727
Earnings per basic common share			$	2.71																	$	2.91
Earnings per basic diluted share			$	2.71																	$	2.91

(1)Adjustments are related to adjustments made for the following:

•Amortization expense of definite-lived intangible assets has been adjusted based on the preliminary fair value at the acquisition date.

X

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)(2)
-SubTopic 10
-Topic 805
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479328/805-10-50-2

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)(3)
-SubTopic 10
-Topic 805
-Publisher FASB
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Tabular disclosure of a material business combination completed during the period, including background, timing, and recognized assets and liabilities. This table does not include leveraged buyouts.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
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Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree.

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