Income Taxes (Tables)

12 Months Ended

Jan. 03, 2025

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

The components of the provision for income taxes are as follows:

	Fiscal Year Ended
	January 3, 2025			December 29, 2023
(In thousands)
Current taxes:
Federal	$	(720	)	$	—
State		(243	)		—
Total current taxes		(963	)		—
Deferred taxes:
Federal		—			—
State		—			—
Total deferred taxes		—			—
Provision for income taxes	$	(963	)	$	—

Schedule of Effective Income Tax Rate Reconciliation

The differences between income taxes expected at the U.S. federal statutory income tax rate of 21% and the reported income tax benefit are summarized as follows:

	Fiscal Year Ended
	January 3, 2025			December 29, 2023
(In thousands)
Expected income tax benefit at federal statutory rate	$	(26,399	)	$	(480	)
State income taxes, net of federal income tax benefit		(8,031	)		27
Return to provision true-up		2,150			1,774
Permanent items		60			562
Change in valuation allowance		30,016			5,248
Other		(963	)		—
State rate change		2,204			(7,131	)
Reported provision for income taxes	$	(963	)	$	—
Effective tax rate		0.8	%		0	%

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax liabilities and assets are as follows:

	January 3, 2025			December 29, 2023
(In thousands)
Deferred tax liabilities:
Depreciation and amortization	$	(640	)	$	(10,598	)
Right-of-use asset		(6,640	)		(6,654	)
Total deferred tax liabilities	$	(7,280	)	$	(17,252	)
Deferred tax assets:
Intangible assets	$	30,317		$	34,457
Contract loss reserve		7,854			11,143
Investment in partnerships		22,770			16,453
Lease liability		6,181			6,586
Stock compensation		3,083			1,428
Accrued expenses and reserves		7,814			5,895
Section 382 limitation		45,587			39,622
Net operating loss carryforwards		51,777			24,629
Other deferred tax assets		2,173			715
Total deferred tax assets	$	177,556		$	140,928
Net deferred tax assets before valuation allowance	$	170,276		$	123,676
Less: Valuation allowance		(170,276	)		(123,676	)
Net deferred tax assets	$	—		$	—