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Fair Value Measurement
 9 Months Ended
Sep. 28, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
The fair value of our financial assets and liabilities are determined in accordance with the fair value hierarchy established in ASC 820, Fair Value Measurements, issued by the FASB. The fair value hierarchy of ASC 820 requires an entity to maximize the use of observable inputs when measuring fair value and classifies those inputs into three levels:
Level 1:Observable inputs, such as quoted prices (unadjusted) in active markets for identical assets or liabilities at the measurement date.
Level 2:Observable inputs, other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3:Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Our financial instruments consist primarily of cash and cash equivalents, short-term and long-term investments, accounts receivable, notes receivable, accounts payable, short-term and long-term debt, and warrant liabilities. Cash and cash equivalents are reported at their respective fair values on our Condensed Consolidated Balance Sheets. As of September 28, 2025 and December 29, 2024, the carrying values of accounts and notes receivables, accounts payable, short-term debt and accrued liabilities approximated the fair value based on the short maturity of those instruments. As of September 28, 2025 and December 29, 2024, we had cash and cash equivalents of $335.5 million and $272.9 million, respectively.
The following table details the fair value measurements of assets and liabilities that were measured at fair value on a recurring basis based on the following three-tiered fair value hierarchy per ASC 820, Fair Value Measurement, as of September 28, 2025 and December 29, 2024 (in thousands).
Fair Value Measurement using
Level 1Level 2Level 3Total
Fair Value
As of September 28, 2025
Assets:
Cash equivalents:
Money Market Funds$89,825 $— $— $89,825 
Short-term investments:
U.S. Treasuries— 159,617 — 159,617 
Corporate Notes and Debt Securities— 43,281 — 43,281 
U.S. Government Agency Debt Securities— 20,418 — 20,418 
Long-term investments:
U.S. Treasuries— 65,917 — 65,917 
Corporate Notes and Debt Securities— 17,853 — 17,853 
U.S. Government Agency Debt Securities— 5,681 — 5,681 
Total assets measured at fair value$89,825 $312,767 $— $402,592 
Liabilities:
Private Placement Warrants$— $— $16,632 $16,632 
As of December 29, 2024
Assets:
Cash equivalents:
Money Market Funds$102,574 $— $— $102,574 
Total assets measured at fair value$102,574 $— $— $102,574 
Liabilities:  
Private Placement Warrants$— $— $28,380 $28,380 
Cash Equivalents and Investments:
The following is a summary of cash equivalents and investments (in thousands).
Reported as
Amortized CostUnrealized GainUnrealized LossEstimated Fair ValueCash EquivalentsShort-term InvestmentsLong-term Investments
As of September 28, 2025
Money Market Funds$89,825 $— $— $89,825 $89,825 $— $— 
U.S. Treasuries225,740 — (206)225,534 — 159,617 65,917 
Corporate Notes and Debt Securities61,209 — (75)61,134 — 43,281 17,853 
U.S. Government Agency Debt Securities26,091 8 — 26,099 — 20,418 5,681 
Total$402,865 $8 $(281)$402,592 $89,825 $223,316 $89,451 
As of December 29, 2024
Money Market Funds$102,574 $— $— $102,574 $102,574 $— $— 
Total$102,574 $— $— $102,574 $102,574 $— $— 
As of September 28, 2025 and December 29, 2024, the short-term investments had contractual maturity due within one year.
Private Placement Warrants
Our liabilities are measured at fair value on a recurring basis, including warrants that were held by Rodgers Capital, LLC (the “Sponsor”) and certain of its members (the “Private Placement Warrants”). The fair value of the Private Placement Warrants is considered a Level 3 valuation and is determined using the Black-Scholes valuation model. Each whole Private Placement Warrant became exercisable for one whole share of our common stock at a price of $11.50 per share on December 5, 2021. In connection with the issuance of Warrants, our Board of Directors approved the change of the exercise price from $11.50 per Private Placement Warrant to an adjusted exercise price of $10.66 per Private Placement Warrant in accordance with the agreement of Private Placement Warrant. The adjusted exercise price was effective on July 21, 2025.
As of both periods ended September 28, 2025 and December 29, 2024, we had 5,500,000 Private Placement Warrants outstanding. The fair value of the Private Placement Warrants was $3.02 per share as of September 28, 2025.
The following tables summarize the changes for Level 3 items measured at fair value on a recurring basis using significant unobservable inputs (in thousands).
As of
Private Placement Warrants
September 28, 2025September 29, 2024
Fair value as of the beginning of the fiscal year$28,380 $42,900 
Cashless warrant exercise— (2,276)
Change in fair value(11,748)(17,359)
Fair value as of the end of the fiscal quarter$16,632 $23,265 
The following table summarizes the key assumptions used for determining the fair value of the Private Placement warrants.
Private Placement Warrants Outstanding as of September 28, 2025Private Placement Warrants Outstanding as of December 29, 2024
Expected term (in years)0.81.5
Expected volatility89.2%95.0%
Risk-free interest rate3.8%4.3%
Expected dividend rate0.0%0.0%
Convertible Senior Notes and Long-term Loans
We consider the fair value of our convertible senior notes to be a Level 2 measurement as they are not actively traded in the market. As of September 28, 2025, the fair value of 2028 and 2030 Convertible Senior Notes (as defined in Note 8 “Borrowings” and collectively, the “Convertible Senior Notes”) was approximately $611.8 million. As of September 28, 2025, our long-term loans are approximately close to their carrying value of $0.6 million.