Stock-Based Compensation and Warrant Units (Tables)

12 Months Ended

Sep. 24, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Total Stock-Based Compensation

The following table summarizes the components of total stock-based compensation included in the Company’s consolidated statements of operations for the year ended September 24, 2022 (in thousands):

	September 24, 2022
Research and development	9,671
Selling, general, and administrative	17,187
Total stock-based compensation expense	$	26,858

Summary of Restricted Stock Unit Activity

The following table summarizes the different types of RSUs granted by the Company during the year ended September 24, 2022:

	September 24, 2022
RSUs (service-based vesting conditions)	13,784,743
RSUs (performance-based vesting conditions)	578,453
Total	14,363,196

The following table summarizes the RSU activity for the year ended September 24, 2022:

	Shares	Weighted Average Grant Date Fair Value
Outstanding at September 26, 2021	—	$	—
Granted	14,363,196	15.81
Vested	(1,831,505)	15.81
Forfeited	(166,104)	15.81
Outstanding at September 24, 2022	12,365,587	$	15.81

Summary of Units Outstanding and Vested

The following is a summary of Class C Units outstanding and vested immediately prior to the consummation of the Business Combination:

	Class C Units
Balance at September 28, 2019	428,571
Granted	42,587
Redeemed	—
Forfeited	(42,587)
Balance at September 26, 2020	428,571
Granted	51,543
Redeemed	—
Forfeited	(51,543)
Balance at September 25, 2021	428,571
Granted	18,107
Redeemed	—
Forfeited	(18,107)
Balance at June 7, 2022	428,571
Vested at June 7, 2022	375,930

The following is a summary of VAP Units outstanding which were converted to restricted stock units in the fourth quarter of fiscal year 2022:

	VAP Units
Balance at September 28, 2019	5,053,182
Granted	—
Exercised	—
Forfeited	(663,925)
Balance at September 26, 2020	4,389,257
Granted	—
Exercised	—
Forfeited	(349,637)
Balance at September 25, 2021	4,039,620
Granted	—
Exercised	(255,845)
Forfeited	(92,664)
Balance at August 16, 2022	3,691,111
Converted to restricted stock units	(3,691,111)
Balance at September 24, 2022	—

Summary of Class C Units, Valuation Assumptions

The fair value of each Class C Unit grant was estimated on the date of the award using a Black-Scholes option pricing model with the following assumptions:

			Year Ended
	June 7, 2022		September 25, 2021		September 26, 2020
Dividend yield	0	%	0	%	0	%
Volatility(a)	45.0	%	40.0%		50.0	%
Risk-free interest rate(b)	2.30	%	0.29	%	0.12	%
Expected term (years)(c)	2.00		2.00		1.25

(a)The expected volatility is estimated based on the historical volatility of a select peer group of similar publicly traded companies for a term that is consistent with the expected term of the Class C Units.

(b)The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected term of the Class C Units.

(c)The expected term is based on estimated liquidity event timing as further described above.

Summary of Warrants

The assumptions made for purposes of estimating fair value under the Black-Scholes pricing model for the Warrants were as follows:

	Selected Assumption
Dividend yield	0	%
Volatility(a)	43.0	%
Risk-free interest rate(b)	1.65	%
Expected term (years)(c)	10.00

(a)The expected volatility is estimated based on the historical volatility of a select peer group of similar publicly traded companies for a term that is consistent with the expected term of the Warrants.

(b)The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected term of the Warrants.

(c)The expected term is based on the contractual term of the Warrants.

The assumptions made for purposes of estimating fair value under the Black-Scholes pricing model for the June 2022 Warrant were as follows:

	Selected Assumption
Dividend yield	0%
Volatility (a)	40.0%
Risk-free interest rate (b)	2.80%
Expected term (years) (c)	5.00

(a)The expected volatility is estimated based on the historical volatility of a select peer group of similar publicly traded companies for a term that is consistent with the expected term of the June 2022 Warrant.

(b)The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected term of the June 2022 Warrant.

(c)The expected term is based on the contractual term of the June 2022 Warrant.

The following table summarizes stock warrant activity for the year ended September 24, 2022:

	Warrant Units
Outstanding and nonvested at September 26, 2020	—
Granted	714,022
Vested	(446,741)
Outstanding and nonvested at September 25, 2021	267,281
Granted	258,972
Vested	(267,281)
Outstanding and nonvested at September 24, 2022	258,972