Note 9 - Income Taxes

6 Months Ended

Jul. 02, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note 9 — Income Taxes

The Company recorded a net income tax benefit of $7 thousand and $0 for the three and six months ended July 2, 2023, respectively, and a net income tax expense of $17 thousand and $16 thousand for the three and six months ended July 3, 2022, respectively. The difference between the estimated annual effective income benefit of 3.04% and the U.S. federal statutory tax rate of 21% is primarily due to the Company's valuation allowance movement in each period presented. It is more likely than not that the Company will not realize the federal, state, and certain foreign deferred tax assets as of July 2, 2023. As such, the Company continues to maintain a full valuation allowance against all of its US and certain foreign net deferred tax assets as of July 2, 2023.