Income Taxes (Tables)
|
12 Months Ended |
Jan. 03, 2026 |
|---|
| Income Taxes |
|
| Components of Loss Before Income Taxes |
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
January 3, 2026 |
|
December 28, 2024 |
Domestic operations |
|
$ |
(50,829) |
|
$ |
(41,208) |
Foreign operations |
|
|
748 |
|
|
874 |
Total loss before income taxes |
|
$ |
(50,081) |
|
$ |
(40,334) |
|
| Schedule of income tax provision |
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
January 3, 2026 |
|
December 28, 2024 |
Current: |
|
|
|
|
|
|
State tax |
|
$ |
58 |
|
$ |
67 |
Foreign tax |
|
|
304 |
|
|
200 |
Total current taxes |
|
|
362 |
|
|
267 |
Deferred: |
|
|
|
|
|
|
Federal tax |
|
|
(8,051) |
|
|
(5,730) |
State tax |
|
|
(1,586) |
|
|
(1,054) |
Total deferred taxes |
|
|
(9,637) |
|
|
(6,784) |
Valuation allowance |
|
|
9,637 |
|
|
6,784 |
Income tax provision |
|
$ |
362 |
|
$ |
267 |
|
| Schedule of income tax rate reconciliation and reconciliation of statutory federal income tax expense and total income tax expense |
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
|
January 3, 2026 |
|
|
|
Amount |
|
Percentage |
|
Provision for income taxes at U.S. federal statutory rate |
|
$ |
(10,517) |
|
21.0 |
% |
State and local income tax, net of federal tax benefit(1) |
|
|
46 |
|
(0.1) |
|
Foreign tax effects: |
|
|
|
|
|
|
Philippines |
|
|
145 |
|
(0.3) |
|
Effect of changes in tax laws or rates enacted in the current period |
|
|
— |
|
— |
|
Effect of cross-border tax laws: |
|
|
|
|
|
|
Global intangible income inclusion |
|
|
134 |
|
(0.3) |
|
Changes in valuation allowance |
|
|
8,384 |
|
(16.7) |
|
Nontaxable or nondeductible items: |
|
|
|
|
|
|
Share-based compensation |
|
|
2,002 |
|
(4.1) |
|
Other |
|
|
168 |
|
(0.2) |
|
Total tax provision and effective tax rate |
|
$ |
362 |
|
(0.7) |
% |
________________
|
(1) |
State income taxes in Texas made up the majority (greater than 50%) of the tax effect in this category.
|
Below is a reconciliation of the statutory federal income tax expense and the Company’s total income tax expense for the fiscal year ended December 28, 2024:
|
|
|
|
|
|
Fiscal Year Ended |
|
|
December 28, 2024 |
Income tax at U.S. federal statutory rate |
|
$ |
(8,470) |
Share-based compensation |
|
|
2,598 |
State income tax, net of federal tax effect |
|
|
(780) |
Foreign tax |
|
|
178 |
Other |
|
|
(43) |
Change in valuation allowance |
|
|
6,784 |
Effective income tax benefit |
|
$ |
267 |
|
| Summary of Deferred Tax Assets and Deferred Tax Liabilities |
|
|
|
|
|
|
|
|
|
January 3, 2026 |
|
December 28, 2024 |
Deferred tax assets: |
|
|
|
|
|
|
Inventory and inventory related allowance |
|
$ |
4,208 |
|
$ |
1,944 |
Lease liabilities |
|
|
6,731 |
|
|
9,564 |
Share-based compensation |
|
|
3,031 |
|
|
3,782 |
Book over tax depreciation |
|
|
4,598 |
|
|
2,383 |
Intangibles |
|
|
72 |
|
|
78 |
Sales and bad debt allowances |
|
|
892 |
|
|
1,092 |
Accrued compensation |
|
|
42 |
|
|
142 |
Net operating loss |
|
|
41,584 |
|
|
34,998 |
Other |
|
|
100 |
|
|
114 |
Total deferred tax assets |
|
|
61,258 |
|
|
54,097 |
Valuation allowance |
|
|
(55,405) |
|
|
(45,463) |
Net deferred tax assets |
|
|
5,853 |
|
|
8,634 |
Deferred tax liabilities: |
|
|
|
|
|
|
Right-of-use assets |
|
|
5,852 |
|
|
8,633 |
Other |
|
|
1 |
|
|
1 |
Total deferred tax liabilities |
|
|
5,853 |
|
|
8,634 |
Net deferred tax assets |
|
$ |
— |
|
$ |
— |
|
| Summary of State NOL Carryforwards Expiration Year |
|
|
|
|
2029 |
|
$ |
1,814 |
2030 |
|
|
9,455 |
2031 |
|
|
14,557 |
2032 |
|
|
22,739 |
2033 |
|
|
24,832 |
Thereafter |
|
|
34,884 |
|
|
$ |
108,281 |
|
| Summary of income taxes paid (net refunds received) |
|
|
|
|
|
|
Fiscal Year Ended |
|
|
January 3, 2026 |
United States federal tax |
|
$ |
— |
|
|
|
|
United States state and local tax: |
|
|
|
Illinois |
|
|
(250) |
Texas |
|
|
64 |
Other |
|
|
3 |
Foreign: |
|
|
|
Philippines |
|
|
90 |
Total income taxes received by jurisdiction |
|
$ |
(93) |
|