Divestiture

9 Months Ended

Sep. 29, 2024

Divestiture [Abstract]

Divestiture

(7) Divestiture

Discontinued operations

As previously described in Note 1 – Organization, on August 18, 2023, the Company entered into a Non-Binding Letter of Intent to sell certain of Complete Solaria’s North American solar panel assets, inclusive of intellectual property and customer contracts, to Maxeon. Under the terms of the Disposal Agreement, Maxeon agreed to acquire certain assets and employees of Complete Solaria. The Company determined that this divestiture represented a strategic shift in the Company’s business and qualified as a discontinued operation. Accordingly, the results of operations and cash flows relating to Solaria have been reflected as discontinued operations in the unaudited condensed consolidated statements of operations and comprehensive income (loss) for the thirteen and thirty-nine weeks ended October 1, 2023 and the unaudited condensed consolidated statements of cash flows for the thirty-nine weeks ended October 1, 2023. In October 2023, the Company completed the sale of its solar panel business to Maxeon, pursuant to the terms of the Disposal Agreement.

The Company recorded a loss from discontinued operations of zero and $2.0 million for the thirteen and thirty-nine weeks ended September 29, 2024, arising from attorney fees incurred in connection with litigation attributable to the solar panel business.

The components reflected in the unaudited condensed consolidated statements of operations and comprehensive loss in 2023 related to discontinued operations are presented in the table, as follows (in thousands):

	Thirteen Weeks Ended			Thirty-Nine- Weeks Ended
	October 1, 2023			October 1, 2023
Revenues	$	3,774		$	29,048
Cost of revenues		4,102			30,609
Gross loss		(328	)		(1,561	)
Operating expenses:
Sales and marketing		2,425			6,855
General and administrative		5,681			12,572
Total operating expenses		8,106			19,427
Loss from discontinued operations		(8,434	)		(20,988	)
Other income, net		31			32
Loss from discontinued operations before income taxes		(8,403	)		(20,956	)
Income tax benefit (provision)		(1	)		3
Impairment loss from discontinued operations		(147,505	)		(147,505	)
Net loss from discontinued operations	$	(155,909	)	$	(168,458	)