Borrowings and Derivative Liabilities (Tables)

9 Months Ended

Sep. 28, 2025

Borrowings and Derivative Liabilities [Abstract]

Schedule of Borrowings and Derivative Liabilities

The Company’s borrowings and derivative liabilities consist of the following (in thousands):

	As of
	September 28,			December 29,
	2025			2024
12.0% senior unsecured convertible notes
July 2024 Notes	$	36,998		$	17,965
July 2024 Notes derivative liability		21,664			13,563
July 2024 Notes – related parties		8,155			24,632
July 2024 derivative liability – related parties		13,940			21,127
July 2025 Note – related party		1,373			—
July 2025 Note – derivative liability – related party		3,468			—
7.0% senior unsecured convertible notes
September 2024 Notes		15,750			5,636
September 2024 Notes derivative liability		53,301			55,474
September 2024 Notes – related party		1,714			476
September 2024 Notes – derivative liability – related party		5,922			6,958
September 2025 Notes		4,218			—
September 2025 Notes derivative liability		16,274			—
Note payable to Seller – related party		20,000			—
Loan with related party		1,500			1,500
Total notes payable		204,277			147,331
Less current portion		(21,500	)		(1,500	)
Notes payable and convertible notes, net of current portion	$	182,777		$	145,831
As classified in the unaudited condensed consolidated balance sheets
Notes payable to related parties		21,500			1,500
Notes payable and derivative liabilities		148,205			92,638
Notes payable and derivative liabilities with related parties, net of current portion		34,572			53,193
Total notes payable	$	204,277		$	147,331

Schedule of Fair Value of the Derivative Liability

The carrying amount of the convertible July 2024 Notes, inclusive of the fair value of the derivative liabilities was as follows (in thousands):

	As of
	September 28,			December 29,
	2025			2024
July 2024 Notes	$	69,876		$	70,348
July 2024 Notes derivative liability		35,604			34,690
Less Unamortized debt discount		(24,723	)		(27,751	)
Total carrying amount of July 2024 Notes	$	80,757		$	77,287

The carrying amount of the convertible July 2025 Note, inclusive of the fair value of the derivative liabilities was as follows (in thousands):

	As of
	September 28,			December 29,
	2025			2024
July 2025 Note – related party	$	5,000		$	—
July 2025 Note derivative liability – related party		3,468			—
Less Unamortized debt discount		(3,627	)		—
Total carrying amount of July 2025 Note – related party	$	4,841		$	—

The carrying amount of the convertible September 2024 Notes, inclusive of the fair value of the derivative liabilities was as follows (in thousands):

	As of
	September 28,			December 29,
	2025			2024
September 2024 Notes	$	80,000		$	79,800
September 2024 Notes derivative liability		59,223			62,432
Less Unamortized debt discount		(62,536	)		(73,688	)
Total carrying amount of September 2024 Notes and derivative liabilities	$	76,687		$	68,544

The carrying amount of the convertible September 2025 Notes, inclusive of the fair value of the derivative liabilities was as follows (in thousands):

	As of
	September 28,			December 29,
	2025			2024
September 2025 Notes	$	22,000		$	—
September 2025 Notes derivative liability		16,274			—
Less Unamortized debt discount		(17,782	)		—
Total carrying amount of September 2025 Notes and derivative liabilities	$	20,492		$	—

Schedule of Contingent Interest Payable

Contingent interest payable upon default and included in the July 2024 Notes was as follows (in thousands):

	As of
	September 28,		December 29,
	2025		2024
Contingent interest payable	$	2,359	$	1,255
Contingent interest payable – related parties		—		1,575
Total contingent interest payable	$	2,359	$	2,830

Schedule of Interest Expense and Amortization of Debt Discount Cost

Interest expense and amortization of debt discount cost were as follows (in thousands):

	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024
Interest expense	$	1,410	$	849	$	4,182	$	849
Amortization of debt discount		1,072		864		3,028		864
Total	$	2,482	$	1,713	$	7,210	$	1,713
Related parties’ portion of interest expense and amortization of debt discount included in the above amounts
Interest expense — related parties	$	550	$	546	$	1,932	$	546
Amortization of debt discount — related parties		421		526		1,391		526
Total — related parties	$	971	$	1,072	$	3,323	$	1,072

Interest expense and amortization of debt discount cost, all of which was with a related party were as follows (in thousands):

	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024
Interest expense – related party	$	138	$	—	$	138	$	—
Amortization of debt discount – related party		53		—		53		—
Total – related party	$	191	$	—	$	191	$	—

Interest expense and amortization of debt discount cost were as follows (in thousands):

	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024
Interest expense	$	1,431	$	52	$	4,253	$	52
Amortization of debt discount		3,790		454		11,152		454
Total	$	5,221	$	506	$	15,405	$	506
Related parties’ portion of interest expense and amortization of debt discount included in the above amounts
Interest expense – related parties	$	143	$	6	$	425	$	6
Amortization of debt discount – related parties		422		54		1,253		54
Total – related parties	$	565	$	60	$	1,678	$	60

Interest expense and amortization of debt discount cost were as follows (in thousands):

	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024
Interest expense	$	34	$	—	$	34	$	—
Amortization of debt discount		26		—		26		—
Total	$	60	$	—	$	60	$	—