Property, Plant and Equipment

3 Months Ended

Mar. 28, 2025

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Note 5 — Property, Plant and Equipment

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

	March 28, 2025			December 27, 2024
Machinery and equipment	$	43,639		$	46,113
Computer equipment and software		11,213			12,976
Furniture and fixtures		7,657			7,627
Leasehold improvements		18,520			19,766
Construction in process		29,309			32,014
Total property, plant and equipment, gross		110,338			118,496
Less accumulated depreciation		(35,381	)		(33,607	)
Total property, plant and equipment, net	$	74,957		$	84,889

Note 5 — Property, Plant and Equipment (Continued)

As discussed in Note 1, during the three months ended March 28, 2025, the Company recognized fixed asset impairment expense of $7,059,000 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 Condensed Consolidated Statement of Operations.

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

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

	Three Months Ended
	March 28, 2025		March 29, 2024
Cost of sales	$	868	$	446
General and administrative		1,075		465
Selling and marketing		175		133
Research and development		182		156
Total depreciation expense	$	2,300	$	1,200