XML 29 R18.htm IDEA: XBRL DOCUMENT v3.25.3
Stockholders' Equity
 9 Months Ended
Sep. 27, 2025
Equity [Abstract]  
Stockholders' Equity Stockholders' Equity
ATM Equity Offering
In February 2024, the Company entered into an ATM Equity Offering Sales Agreement (the "ATM Agreement") with BofA Securities, Inc. ("BofA") pursuant to which the Company may offer and sell, from time to time, at the Company's option, up to an aggregate of $100.0 million in shares of common stock through BofA, as sales agent, in an "at the market" offering. Under the ATM Agreement, shares will be offered and sold pursuant to an effective automatic shelf registration statement on Form S-3 filed with the Securities and Exchange Commission. BofA will receive a commission up to 3.00% of the aggregate gross sales proceeds of any common stock sold through BofA under the ATM Agreement.
During the first quarter of fiscal 2025, the Company suspended any sales of its common stock pursuant to the ATM Agreement unless and until the Company files a new shelf registration statement on Form S-3 with the Securities and Exchange Commission. As of December 28, 2024, the Company had sold an aggregate of 1.9 million shares under the ATM Agreement, and received proceeds of $19.3 million, net of total issuance costs of $1.1 million incurred in connection with the ATM Agreement.
Warrants
On March 11, 2025, in connection with Amendment No. 1 to the Credit Agreement, the Company issued warrants to the Lenders to purchase an aggregate of 1,840,503 shares of the Company's common stock (equal to six percent of the Company's outstanding common stock as of March 10, 2025), with an exercise price of $0.01 per share and an expiration date of March 11, 2035. On June 5, 2025, in connection with Amendment No. 3 to the Credit Agreement, the Company issued warrants to the Lenders to purchase an aggregate of 1,556,323 shares of common stock (equal to five percent of the Company's outstanding common stock as of June 4, 2025), with an exercise price of $0.01 per share and an expiration date of June 5, 2035.
The Company evaluated the issued warrants and concluded that they meet the criteria to be classified within stockholders' equity. These issued warrants (1) are freestanding financial instruments that are legally detachable and separately exercisable from the common stock, (2) are immediately exercisable, (3) do not embody an obligation for the Company to repurchase its shares, (4) permit the holder to receive a fixed number of shares of common stock upon exercise, (5) are indexed to the Company's common stock and (6) meet the equity classification criteria. Accordingly, the warrants in connection with Amendment No. 1 and Amendment No. 3 are accounted for at fair value of $11.6 million and $5.2 million, respectively, on the issuance dates. There are no changes in fair value recognized after their issuance dates. The warrants were valued using the Company's closing stock price on the dates of issuance which is considered a Level 1 input within the fair value hierarchy.