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Fair Value Measurements (Tables)

9 Months Ended

Sep. 28, 2025

Fair Value Measurements [Abstract]

Schedule of Financial Assets and Liabilities that are Measured at Fair Value, on a Recurring Basis

The following table sets forth the Company’s financial assets and liabilities that are measured at fair value, on a recurring basis (in thousands):

		As of September 28, 2025
		Level 1				Level 2				Level 3				Total
Financial Assets
Restricted cash		$	3,841			$	—			$	—			$	3,841
Total		$	3,841			$	—			$	—			$	3,841
Financial Liabilities
July 2024 Notes derivative liability		$	—			$	—			$	21,664			$	21,664
July 2024 Notes derivative liability – related parties			—				—				13,940				13,940
September 2024 derivative liability			—				—				53,301				53,301
September 2024 derivative liability – related parties			—				—				5,922				5,922
July 2025 Note derivative liability– related party			—				—				3,468				3,468
September 2025 Notes derivative liability			—				—				16,274				16,274
Forward purchase agreement liabilities			—				—				4,301				4,301
Public warrants			—				—				2,588				2,588
Private placement warrants			—				—				1,880				1,880
Working capital warrants			—				—				215				215
SAFE Agreement with related party			—				—				497				497
Total		$	—			$	—			$	124,050			$	124,050

		As of December 29, 2024
		Level 1				Level 2				Level 3				Total
Financial Assets
Restricted cash		$	3,841			$	—			$	—			$	3,841
Total		$	3,841			$	—			$	—			$	3,841
Financial Liabilities
July 2024 Notes derivative liability		$	—			$	—			$	13,563			$	13,563
July 2024 Notes derivative liability – related parties			—				—				21,127				21,127
September 2024 Notes derivative liability			—				—				55,474				55,474
September 2024 Notes derivative liability – related parties			—				—				6,958				6,958
Forward purchase agreement liabilities ⁽¹⁾			—				—				3,494				3,494
Public warrants			—				—				862				862
Private placement warrants			—				—				627				627
Working capital warrants			—				—				72				72
SAFE Agreement with related party			—				—				384				384
Total		$	—			$	—			$	102,561			$	102,561

⁽¹⁾	Includes $1.3 million due to related parties as of and December 29, 2024.

Schedule of Derivative Liability Valuation Inputs

The July 2024 Notes derivative liability valuation included the following inputs:

		As of
		September 28, 2025				December 29, 2024
Coupon rate			12.0	%			12.0	%
Conversion rate			595.24				595.24
Conversion price		$	1.68			$	1.68
Common stock price		$	1.77			$	1.81
Risk-free rate			3.7	%			4.43	%
Volatility			73.9	%			62.0	%
Dividend yield			0.0	%			0.0	%

The September 2024 Notes derivative liability valuation included the following inputs:

		As of
		September 28, 2025				December 29, 2024
Coupon rate			7.0	%			7.0	%
Conversion rate			467.84				467.84
Conversion price		$	2.14			$	2.14
Common stock price		$	1.77			$	1.81
Risk-free rate			3.7	%			4.43	%
Volatility			77.8	%			66.6	%
Dividend yield			0.0	%			0.0	%

The July 2025 Note derivative liability valuation included the following inputs:

		As of
		September 28, 2025
Coupon rate			12.0	%
Conversion rate			558.66
Conversion price		$	1.79
Common stock price		$	1.77
Risk-free rate			3.7	%
Volatility			75.1	%
Dividend yield			0.0	%

The September 2025 Notes derivative liability valuation included the following inputs:

		As of
		September 28, 2025
Coupon rate			7.0	%
Conversion rate			467.84
Conversion price		$	2.14
Common stock price		$	1.77
Risk-free rate			3.7	%
Volatility			77.8	%
Dividend yield			0.0	%

Schedule of Measured at Fair Value

The Company valued the private placement and working capital warrants, based on a Black-Scholes Option Pricing Method, which included the following inputs:

		As of
		September 28,				December 29,
		2025				2024
Expected term			2.81 years				3.56 years
Expected volatility			169.0	%			68.1	%
Risk-free rate			3.65	%			4.39	%
Expected dividend yield			0.00	%			0.00	%

The expected volatility is determined based on the historical equity volatility of comparable companies over a period that matches the simulation period, which included the following inputs:

		As of
		September 28,				December 29,
		2025				2024
VWAP		$	1.86			$	1.78
Simulation period			0.80 years				0.55 years
Risk-free rate			3.73	%			4.28	%
Volatility			84.8	%			117	%

Schedule of Financial Liabilities that were not Measured at Fair Value, on a Non-Recurring Basis

The following table sets forth the Company’s financial liabilities that were not measured at fair value, on a non-recurring basis (in thousands):

		As of September 28, 2025
						Fair value
		Carrying value				Estimated fair value				Level 1				Level 2				Level 3				Total
Financial Liabilities
July 2024 Notes		$	36,998			$	34,187			$	—			$	—			$	34,187			$	34,187
July 2024 Notes – related parties			8,155				22,042				—				—				22,042				22,042
September 2024 Notes			15,750				78,563				—				—				78,563				78,563
September 2024 Notes – related parties			1,714				8,729				—				—				8,729				8,729
July 2025 Note – related party			1,373				6,250				—				—				6,250				6,250
September 2025 Notes			4,218				25,090				—				—				25,090				25,090
Total		$	68,208			$	174,861			$	—			$	—			$	174,861			$	174,861

		As of December 29, 2024
						Fair value
		Carrying value				Estimated fair value				Level 1				Level 2				Level 3				Total
Financial Liabilities
July 2024 Notes		$	17,965			$	21,390			$	—			$	—			$	21,390			$	21,390
July 2024 Notes - related parties			24,632				33,323				—				—				33,323				33,323
September 2024 Notes			5,636				77,245				—				—				77,245				77,245
September 2024 Notes - related parties			476				8,583				—				—				8,583				8,583
Total		$	48,709			$	140,541			$	—			$	—			$	140,541			$	140,541

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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