Property, Plant and Equipment, Net

12 Months Ended

Jan. 02, 2026

Property, Plant and Equipment [Abstract]

Note 6 — Property, Plant and Equipment, Net

Property, plant and equipment, net consisted of the following (in thousands):


	2025			2024
Machinery and equipment	$	45,137		$	46,113
Computer equipment and software		10,525			12,976
Furniture and fixtures		7,483			7,627
Leasehold improvements		19,403			19,766
Construction in process		30,340			32,014
Total property, plant and equipment, gross		112,888			118,496
Less accumulated depreciation		(39,565	)		(33,607	)
Total property, plant and equipment, net	$	73,323		$	84,889

As discussed in Note 1 – Organization and Description of Business and Accounting Policies – Restructuring, Impairment and Related Charges, during fiscal 2025, the Company recognized fixed asset impairment expense of $7,759,000 primarily on leasehold improvements and machinery and equipment as the Company will no longer be using these assets. The Company also recognized impairment of $2,751,000 for internally developed software that the Company will no longer be using as it will transition to a cloud-based software solution. These amounts are recorded in Restructuring, impairment and related charges on the Consolidated Statement of Operations.

Construction in process primarily consists of the build out and validation of machinery and equipment.

The Company recorded depreciation expense in the following categories as follows (in thousands):


	Years Ended
	2025		2024		2023
Cost of sales	$	3,168	$	2,518	$	1,405
General and administrative		3,633		2,917		1,912
Selling and marketing		709		626		1,095
Research and development		772		683		548
Total depreciation expense	$	8,282	$	6,744	$	4,960

Loss on disposal of property, plant and equipment was as follows (in thousands):


	Years Ended
	2025		2024		2023
Loss on disposal of property, plant and equipment	$	74	$	1,694	$	73

The loss recognized for the fiscal year ended 2024 consisted primarily of an asset that is no longer in use and was recorded in selling and marketing expense on the Consolidated Statements of Operations.