Restatement of Previously Issued Unaudited Condensed Consolidated Financial Statements (Unaudited)

12 Months Ended

Sep. 28, 2024

Accounting Changes and Error Corrections [Abstract]

Restatement of Previously Issued Unaudited Condensed Consolidated Financial Statements (Unaudited)

Restatement of Previously Issued Unaudited Condensed Consolidated Financial Statements (Unaudited)

As described in Item 4.02 of the Company’s Current Report on Form 8-K filed with the SEC on November 18, 2024, on November 18, 2024, the Audit Committee of the Board of Directors of the Company, after discussions with the Company’s management, determined that the Company’s unaudited condensed consolidated financial statements included in each of the Company’s Quarterly Reports on Form 10-Q for the periods ending December 30, 2023 (the “Q1 2024 Form 10-Q”), March 30, 2024 (the “Q2 2024 Form 10-Q”), and June 29, 2024 (the “Q3 2024 Form 10-Q”, and together with the Q1 2024 Form 10-Q and Q2 2024 Form 10-Q, the “2024 Form 10-Qs”), filed with the SEC on February 8, 2024, May 7, 2024, and July 31, 2024, respectively, should no longer be relied upon. As described in Item 4.02 of the Company’s Current Report on Form 8-K/A filed with the SEC on November 27, 2024, on November 25, 2024, the Company identified errors in its revenue recognition related to cost overruns on certain deployments that will not be billable, which additionally impacted the Company’s unaudited condensed consolidated financial statements included in the Q1 2024 Form 10-Q and the Q2 2024 Form 10-Q. The Company, on the recommendation of the Audit Committee of the Company’s Board of Directors, determined to also correct these errors in the previously issued unaudited interim financial statements for the second and third quarters of fiscal year 2024 that were previously filed in the Fiscal 2024 Form 10-Qs (the “Restatement”).

The restatement of the 2024 Form 10-Qs is being made in connection with the Company’s identification, during fiscal year 2024, of goods and services, primarily relating to specific milestone achievements, being expensed prior to the time that the corresponding milestones were achieved. This resulted in the acceleration of the recognition of cost of revenue. Given that the Company recognizes revenue on a percentage of completion basis, this resulted in the acceleration of recognition of revenue. Additionally, errors were identified in the Company’s revenue recognition related to cost overruns on certain deployments that will not be billable, which additionally impacted System revenue. Further, the Company identified, during fiscal year 2024, a classification error within equity, which was corrected as part of the Restatement.

The following two tables present the Company’s selected quarterly financial data (unaudited):

	Three Months Ended
	December 30, 2023		March 30, 2024		June 29, 2024		September 28, 2024
	As Restated		As Restated		As Restated
	(in thousands, except per share amounts)
Revenue
Systems	$	347,705	$	370,693	$	450,595	$	536,447
Total revenue	359,943		393,332		470,338		564,566
Cost of revenue
Systems	283,946		342,124		398,761		442,010
Total cost of revenue	295,886		363,112		415,365		468,150
Gross profit	64,057		30,220		54,973		96,416
Operating income (loss)	(25,099)		(64,894)		(37,620)		10,888
Income (loss) before income tax and equity method investment	(18,900)		(55,082)		(26,005)		20,304
Income tax benefit (expense)	(172)		252		(182)		(4,110)
Net income (loss)	(19,072)		(54,830)		(26,724)		15,954
Net income (loss) attributable to noncontrolling interests	(16,236)		(46,021)		(22,043)		13,118
Net income (loss) attributable to common stockholders	$	(2,836)	$	(8,809)	$	(4,681)	$	2,836
Income (loss) per share of Class A Common Stock:
Basic and Diluted(1)	$	(0.03)	$	(0.09)	$	(0.05)	$	0.03

(1) For the three months ended September 28, 2024, basic and diluted EPS were calculated as the same value and as such presented on the same line.

	Three Months Ended
	December 24, 2022		March 25, 2023		June 24, 2023		September 30, 2023
	(in thousands, except per share amounts)
Revenue
Systems	$	197,901	$	257,603	$	302,350	$	380,205
Total revenue	206,312		266,854		311,837		391,888
Cost of revenue
Systems	160,931		213,060		244,660		321,425
Total cost of revenue	171,118		224,007		258,928		333,099
Gross profit	35,194		42,847		52,909		58,789
Operating loss	(69,569)		(57,717)		(42,009)		(53,935)
Loss before income tax	(67,735)		(55,433)		(39,072)		(50,274)
Income tax benefit (expense)	(251)		17		(5)		4,859
Net loss	(67,986)		(55,416)		(39,077)		(45,415)
Net loss attributable to noncontrolling interests	(60,793)		(49,298)		(34,730)		(39,207)
Net loss attributable to common stockholders	$	(7,193)	$	(6,118)	$	(4,347)	$	(6,208)
Loss per share of Class A Common Stock:
Basic and Diluted	$	(0.12)	$	(0.10)	$	(0.07)	$	(0.08)