Cloud-Based Software

12 Months Ended

Jan. 02, 2026

Note 7 — Cloud-Based Software

The Company capitalized cloud-based software implementation costs related to several systems, including enterprise resource planning and customer relationship management systems. Assets are expected to be placed into service throughout 2026.

Capitalized cloud-based software costs, net consisted of the following (in thousands):


	2025			2024
Cloud-based software	$	31,527		$	15,763
Less accumulated amortization		(409	)		—
Total cloud-based software, net	$	31,118		$	15,763

Cloud-based software included in prepayments, deposits and other current assets	$	418		$	—
Cloud-based software	$	30,700		$	15,763

Activity related to cloud-based software was as follows (in thousands):


	Years Ended
	2025		2024		2023
Additions to cloud-based software	$	15,764	$	13,357	$	2,406
Amortization of cloud-based software		409		—		—