Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax (benefit) expense are as follows:


	Fiscal Year Ended
	December 31, 2023		January 1, 2023		January 2, 2022

Current:
Federal	$	8	$	562	$	379
State	41		3		(106)
Total current tax expense	49		565		273
Deferred:
Federal	(570)		148		(6,794)
State	—		96		(269)
Total deferred tax (benefit) expense	(570)		244		(7,063)
Income tax (benefit) expense	$	(521)	$	809	$	(6,790)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation between the income tax provision and the amount computed by applying the statutory federal tax rate of 21% to loss before income taxes is as follows:


	Fiscal Year Ended
	December 31, 2023			January 1, 2023			January 2, 2022

Taxes at U.S. statutory tax rate	$	(5,379)		$	(7,573)		$	(11,381)
State income taxes, net of federal income tax benefit	(1,053)			(1,689)			(1,023)
Paycheck Protection Program loan forgiveness	—			—			(1,477)
Permanent differences	580			337			59
Federal tax credits	(385)			—			(400)
Return to provision adjustments	(399)			—			—
Remeasurement of deferred tax assets and liabilities	548			(1,469)			—
Change in valuation allowance	6,256			10,035			8,210
Equity-based compensation	(200)			652			—
Non-deductible executive compensation	891			541			561
Non-controlling interest	(1,194)			(746)			(745)
Other	(186)			721			(594)
Income tax (benefit) expense	$	(521)		$	809		$	(6,790)
Effective income tax rate	2.0		%	(2.2)		%	12.5		%

Schedule of Deferred Tax Assets and Liabilities

The significant components of deferred tax assets and liabilities are reflected in the following table:


	December 31, 2023		January 1, 2023

Deferred tax assets:
Deferred compensation and accrued vacation	$	187	$	493
Deferred revenue	17,295		21,969
Financing lease	9,205		8,621
Net operating loss and credit carryforwards	11,703		11,970
Inventory	5,277		9,414
Equity-based compensation	1,317		1,539
Research and development expense	10,992		2,068
Interest expense limitation	1,973		1,846
Lease liability	2,054		2,213
Other	2,324		645
Total deferred tax assets	62,327		60,778
Deferred tax liabilities:
Property and equipment	(36,180)		(41,652)
Prepaids and other	(715)		(510)
Total deferred tax liabilities	(36,895)		(42,162)
Net deferred tax asset	25,432		18,616
Valuation allowance	(26,111)		(19,855)
Net deferred tax liability after valuation allowance	$	(679)	$	(1,239)