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Fair Value Measurements (Tables)

9 Months Ended

12 Months Ended

Sep. 28, 2025

Dec. 29, 2024

Fair Value Measurements [Abstract]

Schedule of Financial Assets and Liabilities that are Measured at Fair Value, on a Recurring Basis

The following table sets forth the Company’s financial assets and liabilities that are measured at fair value, on a recurring basis (in thousands):

		As of September 28, 2025
		Level 1				Level 2				Level 3				Total
Financial Assets
Restricted cash		$	3,841			$	—			$	—			$	3,841
Total		$	3,841			$	—			$	—			$	3,841
Financial Liabilities
July 2024 Notes derivative liability		$	—			$	—			$	21,664			$	21,664
July 2024 Notes derivative liability – related parties			—				—				13,940				13,940
September 2024 derivative liability			—				—				53,301				53,301
September 2024 derivative liability – related parties			—				—				5,922				5,922
July 2025 Note derivative liability– related party			—				—				3,468				3,468
September 2025 Notes derivative liability			—				—				16,274				16,274
Forward purchase agreement liabilities			—				—				4,301				4,301
Public warrants			—				—				2,588				2,588
Private placement warrants			—				—				1,880				1,880
Working capital warrants			—				—				215				215
SAFE Agreement with related party			—				—				497				497
Total		$	—			$	—			$	124,050			$	124,050

		As of December 29, 2024
		Level 1				Level 2				Level 3				Total
Financial Assets
Restricted cash		$	3,841			$	—			$	—			$	3,841
Total		$	3,841			$	—			$	—			$	3,841
Financial Liabilities
July 2024 Notes derivative liability		$	—			$	—			$	13,563			$	13,563
July 2024 Notes derivative liability – related parties			—				—				21,127				21,127
September 2024 Notes derivative liability			—				—				55,474				55,474
September 2024 Notes derivative liability – related parties			—				—				6,958				6,958
Forward purchase agreement liabilities (1)			—				—				3,494				3,494
Public warrants			—				—				862				862
Private placement warrants			—				—				627				627
Working capital warrants			—				—				72				72
SAFE Agreement with related party			—				—				384				384
Total		$	—			$	—			$	102,561			$	102,561

⁽¹⁾ Includes $1.3 million due to related parties as of and December 29, 2024.

The following table sets forth the Company’s financial assets and liabilities that were measured at fair value, on a recurring basis (in thousands):

		As of December 29, 2024
		Level 1				Level 2				Level 3				Total
Financial Assets
Restricted cash		$	3,841			$	-			$	-			$	3,841
Total		$	3,841			$	-			$	-			$	3,841
Financial Liabilities
July 2024 derivative liability (1)		$	-			$	-			$	34,690			$	34,690
September 2024 derivative liability (1)			-				-				62,432				62,432
Forward purchase agreements (2)			-				-				3,494				3,494
Public warrants			-				-				862				862
Private placement warrants			-				-				627				627
Working capital warrants			-				-				72				72
SAFE Agreement with related party			-				-				384				384
Total		$	-			$	-			$	102,561			$	102,561

		As of December 31, 2023
		Level 1				Level 2				Level 3				Total
Financial Assets
Restricted cash		$	3,823			$	-			$	-			$	3,823
Total		$	3,823			$	-			$	-			$	3,823
Financial Liabilities
Carlyle Warrants		$	-			$	-			$	9,515			$	9,515
Public warrants			167				-				-				167
Private placement warrants			-				122				-				122
Working capital warrants			-				13				-				13
Replacement warrants			-				-				1,310				1,310
Forward purchase agreements (1)			-				-				3,831				3,831
Total		$	167			$	135			$	14,656			$	14,958

(1) A portion of these balances are with related parties. Refer to Note 15 - Borrowings and Derivative Liabilities for details.

(2) A portion of these balances are with related parties. Refer to Note 6 - Forward Purchase Agreements for details.

Schedule of Derivative Liability Valuation Inputs

The July 2024 Notes derivative liability valuation included the following inputs:

		As of
		September 28, 2025				December 29, 2024
Coupon rate			12.0	%			12.0	%
Conversion rate			595.24				595.24
Conversion price		$	1.68			$	1.68
Common stock price		$	1.77			$	1.81
Risk-free rate			3.7	%			4.43	%
Volatility			73.9	%			62.0	%
Dividend yield			0.0	%			0.0	%

The September 2024 Notes derivative liability valuation included the following inputs:

		As of
		September 28, 2025				December 29, 2024
Coupon rate			7.0	%			7.0	%
Conversion rate			467.84				467.84
Conversion price		$	2.14			$	2.14
Common stock price		$	1.77			$	1.81
Risk-free rate			3.7	%			4.43	%
Volatility			77.8	%			66.6	%
Dividend yield			0.0	%			0.0	%

The July 2025 Note derivative liability valuation included the following inputs:

		As of
		September 28, 2025
Coupon rate			12.0	%
Conversion rate			558.66
Conversion price		$	1.79
Common stock price		$	1.77
Risk-free rate			3.7	%
Volatility			75.1	%
Dividend yield			0.0	%

The September 2025 Notes derivative liability valuation included the following inputs:

		As of
		September 28, 2025
Coupon rate			7.0	%
Conversion rate			467.84
Conversion price		$	2.14
Common stock price		$	1.77
Risk-free rate			3.7	%
Volatility			77.8	%
Dividend yield			0.0	%

The Company issued derivative liabilities in conjunction with the issuance of certain convertible notes in July 2024 and September 2024 (refer to Note 15 - Borrowings and Derivative Liabilities). The Company valued the derivative liabilities as of their issuance date and as of December 29, 2024 using a binomial lattice model, which includes level 3 unobservable inputs. The key inputs used were dividend yield, the Company’s common stock price, volatility, risk-free rate and the expected term of the derivative liabilities. The derivative liability valuation included the following inputs as of December 29, 2024:

		September Notes				July Notes
Coupon rate			7.0	%			12.0	%
Conversion rate			467.84				595.24
Conversion price		$	2.14			$	1.68
Common stock price		$	1.81			$	1.81
Dividend Yield			0.0	%			0.0	%

Schedule of Measurement Inputs

The Company valued the private placement and working capital warrants, based on a Black-Scholes Option Pricing Method, which included the following inputs:

		As of
		September 28,				December 29,
		2025				2024
Expected term			2.81 years				3.56 years
Expected volatility			169.0	%			68.1	%
Risk-free rate			3.65	%			4.39	%
Expected dividend yield			0.00	%			0.00	%

The expected volatility is determined based on the historical equity volatility of comparable companies over a period that matches the simulation period, which included the following inputs:

		As of
		September 28,				December 29,
		2025				2024
VWAP		$	1.86			$	1.78
Simulation period			0.80 years				0.55 years
Risk-free rate			3.73	%			4.28	%
Volatility			84.8	%			117	%

The Company valued the Carlyle Warrants as of December 31, 2023, based on a Black-Scholes Option Pricing Method, which included the following inputs:

		As of December 31,
		2023
Expected term			7.0 years
Expected volatility			77	%
Risk-free interest rate			3.92	%
Expected dividend yield			0.00	%

The private placement and working capital warrants are measured at fair value. The Company valued the private placement and working capital warrants, based on a Black-Scholes Option Pricing Method, which included the following inputs:

		As of December 29,
		2024
Expected term			3.56 years
Expected volatility			68.1	%
Risk-free interest rate			4.39	%
Expected dividend yield			0.00	%

FPAs are measured at fair value on a recurring basis using a Monte Carlo simulation analysis. The expected volatility is determined based on the historical equity volatility of comparable companies over a period that matches the simulation period, which included the following inputs:

		As of
		December 29,				December 31,
		2024				2023
VWAP		$	1.78			$	1.66
Simulation period			0.55 years				1.55 years
Risk-free rate			4.28	%			4.48	%
Volatility			117	%			95	%

There were no replacement warrants as of December 29, 2024. The Company valued the Replacement Warrants as of December 31, 2023, based on a Black-Scholes Option Pricing Method, which included the following inputs:

		As of December 31,
		2023
Expected term			0.3 years
Expected volatility			78.5	%
Risk-free interest rate			5.4	%
Expected dividend yield			0	%

Schedule of Financial Liabilities that were not Measured at Fair Value, on a Non-Recurring Basis

The following table sets forth the Company’s financial liabilities that were not measured at fair value, on a non-recurring basis (in thousands):

		As of September 28, 2025
						Fair value
		Carrying value				Estimated fair value				Level 1				Level 2				Level 3				Total
Financial Liabilities
July 2024 Notes		$	36,998			$	34,187			$	—			$	—			$	34,187			$	34,187
July 2024 Notes – related parties			8,155				22,042				—				—				22,042				22,042
September 2024 Notes			15,750				78,563				—				—				78,563				78,563
September 2024 Notes – related parties			1,714				8,729				—				—				8,729				8,729
July 2025 Note – related party			1,373				6,250				—				—				6,250				6,250
September 2025 Notes			4,218				25,090				—				—				25,090				25,090
Total		$	68,208			$	174,861			$	—			$	—			$	174,861			$	174,861

		As of December 29, 2024
						Fair value
		Carrying value				Estimated fair value				Level 1				Level 2				Level 3				Total
Financial Liabilities
July 2024 Notes		$	17,965			$	21,390			$	—			$	—			$	21,390			$	21,390
July 2024 Notes - related parties			24,632				33,323				—				—				33,323				33,323
September 2024 Notes			5,636				77,245				—				—				77,245				77,245
September 2024 Notes - related parties			476				8,583				—				—				8,583				8,583
Total		$	48,709			$	140,541			$	—			$	—			$	140,541			$	140,541

The following table sets forth the Company’s financial liabilities that were not measured at fair value, on a non-recurring basis (in thousands):

		As of December 29, 2024
						Fair value
		Carrying value				Estimated fair value				Level 1				Level 2				Level 3				Total
Financial Liabilities
12% Notes		$	17,965			$	21,390			$	-			$	-			$	21,390			$	21,390
12% Notes - related parties			24,632				33,323				-				-				33,323				33,323
7% Notes			5,636				77,245				-				-				77,245				77,245
7% Notes - related parties			476				8,583				-				-				8,583				8,583
Total		$	48,709			$	140,541			$	-			$	-			$	140,541			$	140,541

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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Tabular disclosure of assets measured at fair value measured on a recurring or nonrecurring basis. Includes, but is not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2.

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Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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