Stockholders' Equity

12 Months Ended

Dec. 27, 2024

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Note 11 — Stockholders’ Equity

Incentive Plan

The Company maintains an Amended and Restated Omnibus Equity Incentive Plan, as amended (the “Equity Plan”). The Equity Plan allows for awards of stock options, stock appreciation rights, restricted stock, RSUs, and other stock- and cash-based awards, including awards that are subject to service-based and performance-based vesting conditions. As of December 27, 2024, the Company had outstanding grants of stock options, restricted stock awards, RSUs and PSUs.

Stock options granted under the Equity Plan are granted at fair market value on the date of grant, become exercisable generally over a three-year period, or as determined by the Board, and expire over periods not exceeding 10 years from the date of grant. Certain stock options and stock-based awards provide for accelerated vesting if there is a change in control and pre-established financial metrics are met (as defined in the Equity Plan). Grants of restricted stock outstanding under the Equity Plan generally vest over periods of one to three years. Grants of RSUs and PSUs outstanding under the Equity Plan generally vest based on service, performance, or a combination of both. On June 15, 2023, the Company’s stockholders approved a proposal to increase the number of shares that may be issued pursuant to stock-based awards granted under the Equity Plan, which increased the share pool by 2,170,000 shares. On June 19, 2024, the Company’s stockholders approved a proposal to increase the number of shares that may be issued pursuant to stock-based awards granted under the Equity Plan, which increased the share pool by 2,600,000 shares. As a result of such increases, a total of 22,805,000 shares may be issued pursuant to stock-based awards granted under the Equity Plan. As of December 27, 2024, there were 3,438,028 shares available for grants of stock-based awards under the Equity Plan.

Stock-Based Compensation

The following table represents the fair value of stock-based compensation granted during the year ended 2024 (in thousands):

	Fair Value
Stock options	$	13,522
RSUs		17,496
PSUs		14,665
Restricted stock		703
Total stock-based compensation expense	$	46,386

The Company recorded stock-based compensation expense by award as follows (in thousands):

	Years Ended
	2024		2023		2022
Employee stock options	$	13,824	$	12,842	$	10,403
Restricted stock		512		548		686
RSUs		11,739		7,987		4,512
PSUs		568		1,270		3,525
Nonemployee stock options		567		869		1,245
Total stock-based compensation expense	$	27,210	$	23,516	$	20,371

The Company recorded stock-based compensation expense in the following categories (in thousands):

	Years Ended
	2024		2023		2022
Cost of sales	$	1,192	$	716	$	501
General and administrative		14,122		12,125		9,402
Selling and marketing		4,583		4,083		4,795
Research and development		7,313		6,592		5,673
Total stock-based compensation expense, net		27,210		23,516		20,371
Amounts capitalized as part of inventory		1,408		1,672		1,881
Total stock-based compensation expense, gross	$	28,618	$	25,188	$	22,252

Note 11 — Stockholders’ Equity (Continued)

Stock-Based Compensation (Continued)

As of December 27, 2024, total unrecognized compensation cost related to non-vested stock-based compensation arrangements granted under the Equity Plan were as follows (in thousands):

	2024
Stock options	$	18,474
Restricted stock, RSUs and PSUs		20,512
Total unrecognized stock-based compensation cost	$	38,986

This cost is expected to be recognized over a weighted-average period of approximately two years.

Assumptions

The fair value of each stock option award is estimated on the date of grant using a Black-Scholes option valuation model applying the weighted-average assumptions noted in the following table. Expected volatilities are based on historical volatility of the Company’s stock. The expected term of stock options granted is derived from the historical exercises and post-vesting cancellations, and represents the period of time that stock options granted are expected to be outstanding. The Company has calculated a 8% estimated forfeiture rate based on historical forfeiture experience. The risk-free rate is based on the U.S. Treasury yield curve corresponding to the expected term at the time of the grant.

	Years Ended
	2024			2023			2022
Expected dividend yield		0	%		0	%		0	%
Expected volatility		59	%		60	%		54	%
Risk-free interest rate		4.17	%		3.98	%		2.09	%
Expected term (in years)		5.29			5.05			5.10

Stock Options

A summary of stock option activity under the Equity Plan for the year ended December 27, 2024 was as follows:

	Shares (in 000’s)			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in 000’s)
Outstanding at December 29, 2023		2,630		$	46.38
Granted		640			37.81
Exercised		(315	)		23.52
Forfeited or expired		(147	)		70.43
Outstanding at December 27, 2024		2,808		$	45.72		6.59	$	3,961
Exercisable at December 27, 2024		1,826		$	47.03		5.38	$	3,961

Note 11 — Stockholders’ Equity (Continued)

Stock Options (Continued)

A summary of unvested stock options activity under the Equity Plan for the year ended December 27, 2024 was as follows:

	Shares (in 000’s)			Weighted-Average Grant-Date Fair Value
Unvested at December 29, 2023		926		$	30.09
Granted		640			21.12
Forfeited or expired		(147	)		34.39
Vested		(437	)		29.66
Unvested at December 27, 2024		982		$	23.62

The weighted average grant date fair value of stock options granted under the Equity Plan and the total intrinsic value of stock options exercised were as follows:

	Years Ended
	2024		2023		2022
Weighted-average grant-date fair value	$	21.12	$	28.36	$	35.68
Intrinsic value of options exercised (in thousands)	$	4,150	$	17,041	$	25,000

Restricted Stock, Restricted Stock Units and Performance Stock Units

A summary of restricted stock, RSU and PSU activity under the Equity Plan for the year ended December 27, 2024 was as follows:

	Restricted Stock					Restricted Stock Units					Performance Stock Units
	Units (in 000’s)			Weighted-Average Grant-Date Fair Value		Units (in 000’s)			Weighted-Average Grant-Date Fair Value		Units (in 000’s)			Weighted-Average Grant-Date Fair Value
Outstanding at December 29, 2023		14		$	47.61		401		$	55.75		56		$	74.80
Granted		17			39.84		464			37.72		390			37.64
Vested		(10	)		46.88		(149	)		58.56		(24	)		74.80
Forfeited		(5	)		52.67		(21	)		47.20		(16	)		52.76
Outstanding at December 27, 2024		16		$	40.11		695		$	43.33		406		$	39.99

The weighted average grant date fair value of restricted stock, RSU and PSU awards granted under the Equity Plan and the total fair value of awards vested were as follows:

	Years Ended
	2024		2023		2022
Weighted-average grant-date fair value	$	37.73	$	52.98	$	74.98
Fair value of awards vested (in thousands)	$	6,283	$	7,715	$	5,023