WARRANTS

12 Months Ended

Dec. 31, 2023

Other Liabilities Disclosure [Abstract]

WARRANTS

WARRANTS

As of December 31, 2023, the Company had issued outstanding warrants to purchase shares of its Class A common stock as follows:

Issue Date	Number of Warrants Outstanding	Commencement Date	Termination Date	Exercise Price		Value at Grant Date (In Thousands)
06/19/2019	46,875	12/24/2020	06/19/2024	$	7.27	N/A (1)
10/03/2019	60	10/03/2019	10/03/2024	$	7.73	$	—
07/16/2020	982,855	12/24/2020	07/16/2025	$	3.76	$	1,163
07/16/2020	18,648	12/24/2020	07/16/2025	$	3.76	$	64
	1,048,438

(1) Values were not calculated at the issue date because the warrants were only exercisable in the event of a merger involving the Company and FCCG.

In addition to the warrants to purchase common stock described above, the Company has also granted warrants issued on July 16, 2020, to purchase 3,600 shares of the Company’s Series B Preferred Stock at an exercise price of $24.95 per share, exercisable beginning on the earlier of one year from the date of issuance, or the consummation of a merger or other similar business combination transaction involving the Company and FCCG, and will expire on July 16, 2025.

The Company’s activity in warrants to purchase Class A common stock for the fiscal year ended December 31, 2023 was as follows:

	Number of Shares	Weighted Average Exercise Price (1)		Weighted Average Remaining Contractual Life (Years)
Warrants outstanding at December 25, 2022	1,591,256	$	3.88	2.4
Exercised	(342,290)	$	2.99	1.5
Expired	(200,528)	$	7.06	—
Warrants outstanding at December 31, 2023	1,048,438	$	2.95	1.6
Warrants exercisable at December 31, 2023	1,048,438	$	2.95	1.6

(1) Exercise price adjusted due to cash dividends and Class B stock dividend.

The Company’s warrant activity for the fiscal year ended December 25, 2022 was as follows:

	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Warrants outstanding at December 26, 2021	1,707,670	$	4.72	3.2
Exercised	(34,714)	$	3.57	2.6
Cancelled	(81,700)	$	13.35	—
Warrants outstanding at December 25, 2022	1,591,256	$	3.88	2.4
Warrants exercisable at December 25, 2022	1,591,256	$	3.88	2.4

During the fiscal year ended December 31, 2023, a total of 342,290 warrants were exercised in exchange for 342,290 shares of common stock with net proceeds to the Company of $0.7 million.

The range of assumptions used to establish the initial value of the warrants using the Black-Scholes valuation model were as follows:

	Warrants
Expected dividend yield	4.00% - 6.63%
Expected volatility	30.23% - 31.73%
Risk-free interest rate	0.99% - 1.91%
Expected term (in years)	3.8 - 5.0