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FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 29, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
 
The accounting standard for fair value measurements defines fair value and establishes a market-based framework or hierarchy for measuring fair value. The standard is applicable whenever assets and liabilities are measured at fair value. The fair value hierarchy established prioritizes the inputs used in valuation techniques into three levels as follows:
 
Level 1 - Observable inputs - quoted prices in active markets for identical assets and liabilities;
 
Level 2 - Observable inputs other than the quoted prices in active markets for identical assets and liabilities - includes quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets, and amounts derived from valuation models where all significant inputs are observable in active markets, for substantially the full term of the financial instrument; and
 
Level 3 - Unobservable inputs - includes amounts derived from valuation models where one or more significant inputs are unobservable and require us to develop relevant assumptions.
 
There were no transfers between the respective Levels during Fiscal 2024. The following table summarizes the financial liabilities measured at fair value on a recurring basis and the level they fall within the fair value hierarchy (in thousands):
Financial Statement Classification Fair Value Hierarchy  Fair Value
Convertible note
December 31, 2023 and December 29, 2024Level 2$4,368 
Contingent consideration, net - current and long-term
December 31, 2023Level 3$8,320 
Interest expense44 
Gain on contingent consideration(1,452)
Contingent consideration paid(4,250)
December 29, 2024Level 3$2,662 
Key inputs in determining the fair value of the convertible note as of December 29, 2024 and December 31, 2023 included the current stock price, the conversion price, and the maturity date. Key inputs in determining the fair value of the contingent consideration as of December 29, 2024 and December 31, 2023 included discount rates of approximately 7% as well as management’s estimates of future sales volumes and EBITDA.