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Income Taxes (Tables) | 12 Months Ended
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Dec. 28, 2025
Income Taxes [Abstract] |
Schedule of Loss from Continuing Operations Before Provision for Income Taxes | The Company’s loss from continuing and discontinued operations before provision for income taxes for the fiscal years ended December 28, 2025 and December 29, 2024, was as follows (in thousands):
|  | Fiscal Year Ended |
|  | December 28, 2025 |  |  | December 29, 2024 |
Domestic |  | $ | (42,676 | ) |  | $ | (54,444 | )
Foreign |  |  | — |  |  |  | — |
Loss from continuing operations before income taxes |  | $ | (42,676 | ) |  | $ | (54,444 | )
Loss from discontinued operations before income taxes |  | $ | (1,100 | ) |  | $ | (2,007 | )
Schedule of Components of Income Tax Benefit | The components of income tax benefit from continuing and discontinued operations were as follows (in thousands):
|  | Fiscal Year Ended |
|  | December 28, 2025 |  |  | December 29, 2024 |
Current income tax expense |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |
State |  |  | 278 |  |  |  | — |
Total current income tax expense |  |  | 278 |  |  |  | — |
Deferred income tax expense |  |  |  |  |  |  |  |
Federal |  |  | 1,200 |  |  |  | — |
State |  |  | 100 |  |  |  | — |
Total deferred income tax expense |  |  | 1,300 |  |  |  | — |
Income tax expense from continuing operations |  | $ | 1,578 |  |  | $ | — |
Income tax expense as a component of discontinued operations |  | $ | — |  |  | $ | — |
Schedule of Reconciliation of Federal Statutory Income Tax Rate to Our Effective Income Tax Rate | The Company adopted ASU 2023-09 prospectively for the fiscal year ended December 28, 2025. The following table presents required disclosure pursuant of ASU 2023-09 and reconciles the Company’s federal statutory tax amount and rate, based on its results from continuing operations, to its actual effective amount and rate:
|  | Dollars (in thousands) |  |  | Effect on Effective Tax Rate |
Federal tax (benefit) at statutory rate |  | $ | (8,962 | ) |  | $ | 21.0 | %
State income taxes, net of federal tax benefit (1) |  |  | 378 |  |  |  | (0.9 | )
Foreign tax effects |  |  | — |  |  |  | — |
Tax law changes |  |  | — |  |  |  | — |
Effect of cross-border tax laws |  |  | — |  |  |  | — |
Tax credits |  |  | — |  |  |  | — |
Valuation allowance |  |  | 11,328 |  |  |  | (26.6 | )
Nondeductible items |  |  | — |  |  |  | — |
Warranty liability |  |  | 588 |  |  |  | (1.4 | )
Other nondeductible items |  |  | 276 |  |  |  | (0.6 | )
Changes in unrecognized tax benefits |  |  | — |  |  |  | — |
Deferred tax true-up |  |  | (2,030 | ) |  |  | 4.8 |
Total provision |  | $ | 1,578 |  |  | $ | (3.7 | )%
(1) | State taxes in California made up the majority (greater than 50 percent) of the tax effect in this category.
The following table represents the required disclosures prior to the Company’s adoption of ASU 2023-09 and is a reconciliation of the Company’s income tax applied at the federal statutory income tax rate compared to the income tax provision reported on its consolidated statements of operations for continuing operations. (in thousands):
|  | Fiscal Year Ended |
|  | December 29, 2024 |
Statutory federal income tax |  | $ | (11,433 | )
State income taxes, net of federal tax benefits |  |  | (2,444 | )
Stock compensation |  |  | 1,102 |
Fair value adjustments |  |  | (980 | )
Nondeductible items |  |  | 1,332 |
Debt extinguishment |  |  | (6,571 | )
Foreign earnings taxed at different rates |  |  | — |
Forward purchase agreements |  |  | — |
Effect of changes in tax rates |  |  | 706 |
Prior year adjustments |  |  | 2,058 |
Valuation allowance |  |  | 16,171 |
Other |  |  | 59 |
Tax Provision |  | $ | — |
Schedule of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities are as follows. (in thousands):
|  | As of |
|  | December 28, |  |  | December 29, |
|  | 2025 |  |  | 2024 |
Deferred income tax assets |  |  |  |  |  |
Net operating loss |  | $ | 35,792 |  |  | $ | 34,749 |
Debt derivatives |  |  | 27,508 |  |  |  | 24,591 |
Bad debt reserve |  |  | 10,543 |  |  |  | 431 |
Stock based compensation |  |  | 769 |  |  |  | 452 |
Lease liability |  |  | 1,657 |  |  |  | 1,512 |
Other reserves |  |  | 4,633 |  |  |  | 3,381 |
Interest expense carryover |  |  | 7,267 |  |  |  | 7,005 |
Intangibles |  |  | 1,447 |  |  |  | 1,279 |
Capitalized research and development |  |  | 705 |  |  |  | 824 |
Other |  |  | 2,556 |  |  |  | 3,336 |
Total |  |  | 92,877 |  |  |  | 77,560 |
Valuation allowance |  |  | (70,253 | ) |  |  | (55,714 | )
Net deferred tax assets |  |  | 22,624 |  |  |  | 21,846 |
Deferred income tax liabilities |  |  |  |  |  |  |  |
Convertible loan discount |  |  | (21,731 | ) |  |  | (19,175 | )
Other |  |  | (2,193 | ) |  |  | (2,671 | )
Total deferred tax liabilities |  |  | (23,924 | ) |  |  | (21,846 | )
Net deferred tax liability |  | $ | (1,300 | ) |  | $ | — |
Schedule of Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands):
|  | Fiscal Year Ended |
|  | December 28, 2025 |  |  | December 29, 2024 |
Unrecognized tax benefits as of beginning of year |  | $ | — |  |  | $ | 53,153 |
Increases related to prior year tax positions |  |  | — |  |  |  | — |
Increases related to current year tax positions |  |  | — |  |  |  | — |
Decreases related to prior year tax positions |  |  | — |  |  |  | (53,153 | )
Unrecognized tax benefits as of end of year |  | $ | — |  |  | $ | — |

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