Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Feb. 26, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 30, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-33264 | ||
Entity Registrant Name | CARPARTS.COM, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 68-0623433 | ||
Entity Address, Address Line One | 2050 W. 190th Street | ||
Entity Address, Address Line Two | Suite 400 | ||
Entity Address, City or Town | Torrance | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90504 | ||
City Area Code | 424 | ||
Local Phone Number | 702-1455 | ||
Title of 12(b) Security | Common Stock, $0.001 par value per share | ||
Trading Symbol | PRTS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Smaller Reporting Company | false | ||
Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 228.9 | ||
Entity Common Stock, Shares Outstanding | 56,597,483 | ||
Entity Central Index Key | 0001378950 | ||
Current Fiscal Year End Date | --12-30 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Firm ID | 49 | ||
Auditor Name | RSM US LLP | ||
Auditor Location | Irvine, California |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 50,951 | $ 18,767 |
Accounts receivable, net | 7,365 | 6,406 |
Inventory, net | 128,901 | 136,026 |
Other current assets | 6,121 | 6,672 |
Total current assets | 193,338 | 167,871 |
Property and equipment, net | 26,389 | 24,290 |
Right-of-use - assets - operating leases, net | 19,542 | 23,951 |
Right-of-use - assets - finance leases, net | 15,255 | 19,750 |
Other non-current assets | 3,331 | 2,537 |
Total assets | 257,855 | 238,399 |
Current liabilities: | ||
Accounts payable | 77,851 | 57,616 |
Accrued expenses | 20,770 | 16,466 |
Right-of-use - obligation - operating, current | 4,749 | 4,571 |
Right-of-use - obligation - finance, current | 4,308 | 4,753 |
Other current liabilities | 5,308 | 4,622 |
Total current liabilities | 112,986 | 88,028 |
Right-of-use - obligation - operating, non-current | 16,742 | 21,412 |
Right-of-use - obligation - finance, non-current | 12,327 | 15,916 |
Other non-current liabilities | 2,969 | 2,971 |
Total liabilities | 145,024 | 128,327 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.001 par value; 100,000 shares authorized; 57,497 and 54,693 shares issued and outstanding as of December 30, 2023 and December 31, 2022 (of which 3,060 and 2,565 are treasury stock, respectively) | 60 | 57 |
Treasury stock | (11,912) | (7,625) |
Additional paid-in capital | 312,874 | 297,265 |
Accumulated other comprehensive income | 783 | 1,126 |
Accumulated deficit | (188,974) | (180,751) |
Total stockholders' equity | 112,831 | 110,072 |
Total liabilities and stockholders' equity | $ 257,855 | $ 238,399 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 30, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 57,564,000 | 54,693,000 |
Common stock, shares outstanding (in shares) | 57,497,000 | 54,693,000 |
Treasury stock (in shares) | 3,786,000 | 2,565,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | ||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE OPERATIONS | ||||
Net sales | $ 675,729 | $ 661,604 | $ 582,440 | |
Cost of sales (1) | [1] | 446,323 | 430,714 | 385,157 |
Gross profit | 229,406 | 230,890 | 197,283 | |
Operating expenses | ||||
Operating expense | 239,287 | 230,239 | 206,394 | |
(Loss) income from operations | (9,881) | 651 | (9,111) | |
Other income (expense): | ||||
Other income, net | 3,197 | 467 | 238 | |
Interest expense | (1,394) | (1,437) | (1,115) | |
Total other income (expense), net | 1,803 | (970) | (877) | |
Loss before income taxes | (8,078) | (319) | (9,988) | |
Income tax provision | 145 | 632 | 351 | |
Net loss | (8,223) | (951) | (10,339) | |
Other comprehensive gain: | ||||
Foreign currency translation adjustments | 127 | 93 | ||
Actuarial gain on defined benefit plan | (305) | 872 | 307 | |
Unrealized gain (loss) on deferred compensation trust assets | (38) | (147) | 89 | |
Total other comprehensive gain | (343) | 852 | 489 | |
Comprehensive (loss) income | $ (8,566) | $ (99) | $ (9,850) | |
Net loss per share: | ||||
Basic net loss per share | $ (0.15) | $ (0.02) | $ (0.20) | |
Diluted net loss per share | $ (0.14) | $ (0.02) | $ (0.20) | |
Weighted-average common shares outstanding: | ||||
Shares used in computation of basic net loss per share | 56,570 | 54,137 | 51,381 | |
Shares used in computation of diluted net loss per share | 56,570 | 54,137 | 51,381 | |
[1] Excludes depreciation and amortization expense which is included in operating expense as described in “Note 1 – Summary of Significant Accounting Policies and Nature of Operations”. |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in- Capital | Treasury Stock | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit | Total |
Beginning balance at Jan. 02, 2021 | $ 51 | $ 260,260 | $ (7,146) | $ (215) | $ (169,461) | $ 83,489 |
Beginning balance (in shares) at Jan. 02, 2021 | 48,091 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net Income (Loss) | (10,339) | (10,339) | ||||
Issuance of shares in connection with stock option exercise | $ 2 | 3,659 | 3,661 | |||
Issuance of shares in connection with stock option exercise (in shares) | 2,060 | |||||
Issuance of shares in connection with restricted stock units vesting | $ 3 | 986 | 989 | |||
Issuance of shares in connection with restricted stock units vesting (in shares) | 2,665 | |||||
Issuance of stock awards | 778 | 778 | ||||
Issuance of stock awards (in shares) | 143 | |||||
Issuance of shares in connection with BOD Fees | 23 | 23 | ||||
Issuance of shares in connection with BOD Fees (in shares) | 1 | |||||
Registration costs - common stock | (68) | (68) | ||||
Officers and directors stock purchase plan | 4 | 4 | ||||
Share-based compensation | 17,066 | 17,066 | ||||
Stock repurchase | (45) | (479) | (524) | |||
Actuarial gain (loss) on defined benefit plan | 307 | 307 | ||||
Unrealized gain (loss) on deferred compensation trust assets | 89 | 89 | ||||
Effect of changes in foreign currencies | 93 | 93 | ||||
Ending balance at Jan. 01, 2022 | $ 56 | 282,663 | (7,625) | 274 | (179,800) | 95,568 |
Ending balance (in shares) at Jan. 01, 2022 | 52,960 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net Income (Loss) | (951) | (951) | ||||
Issuance of shares in connection with stock option exercise | 1,284 | $ 1,284 | ||||
Issuance of shares in connection with stock option exercise (in shares) | 738 | 738,000 | ||||
Issuance of shares in connection with restricted stock units vesting | $ 1 | (1) | ||||
Issuance of shares in connection with restricted stock units vesting (in shares) | 872 | |||||
Issuance of stock awards to consultants | 81 | $ 81 | ||||
Issuance of stock awards to consultants (in shares) | 10 | |||||
Issuance of shares in connection with BOD Fees | 22 | 22 | ||||
Issuance of shares in connection with BOD Fees (in shares) | 3 | |||||
Issuance of shares in connection with ESPP | 795 | $ 795 | ||||
Issuance of shares in connection with ESPP (in shares) | 107 | 107,000 | ||||
Officers and directors stock purchase plan | 26 | $ 26 | ||||
Officers and directors stock purchase plan (in shares) | 3 | |||||
Share-based compensation | 12,395 | 12,395 | ||||
Stock repurchase | 0 | |||||
Actuarial gain (loss) on defined benefit plan | 872 | 872 | ||||
Unrealized gain (loss) on deferred compensation trust assets | (147) | (147) | ||||
Effect of changes in foreign currencies | 127 | 127 | ||||
Ending balance at Dec. 31, 2022 | $ 57 | 297,265 | (7,625) | 1,126 | (180,751) | 110,072 |
Ending balance (in shares) at Dec. 31, 2022 | 54,693 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net Income (Loss) | (8,223) | (8,223) | ||||
Issuance of shares in connection with stock option exercise | $ 2 | 2,648 | $ 2,650 | |||
Issuance of shares in connection with stock option exercise (in shares) | 1,674 | 1,673,000 | ||||
Issuance of shares in connection with restricted stock units vesting | $ 1 | $ 1 | ||||
Issuance of shares in connection with restricted stock units vesting (in shares) | 1,078 | |||||
Issuance of shares in connection with BOD Fees | 23 | 23 | ||||
Issuance of shares in connection with BOD Fees (in shares) | 5 | |||||
Issuance of shares in connection with ESPP | 483 | $ 483 | ||||
Issuance of shares in connection with ESPP (in shares) | 114 | 114,000 | ||||
Share-based compensation | 12,479 | $ 12,479 | ||||
Stock repurchase | (24) | (4,287) | (4,311) | |||
Actuarial gain (loss) on defined benefit plan | (305) | (305) | ||||
Unrealized gain (loss) on deferred compensation trust assets | (38) | (38) | ||||
Ending balance at Dec. 30, 2023 | $ 60 | $ 312,874 | $ (11,912) | $ 783 | $ (188,974) | $ 112,831 |
Ending balance (in shares) at Dec. 30, 2023 | 57,564 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Operating activities | |||
Net loss | $ (8,223) | $ (951) | $ (10,339) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization expense | 16,690 | 13,607 | 9,895 |
Amortization of intangible assets | 36 | 108 | 110 |
Share-based compensation expense | 11,675 | 11,296 | 15,685 |
Stock awards issued for non-employee director service | 23 | 22 | 23 |
Stock awards related to officers and directors stock purchase plan from payroll deferral | 26 | ||
Gain from disposition of assets | (78) | (41) | 52 |
Amortization of deferred financing costs | 65 | 53 | 18 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,101) | (1,424) | 1,303 |
Inventory | 6,681 | 2,825 | (49,535) |
Other current assets | 549 | (141) | 1,340 |
Other non-current assets | (248) | (636) | 551 |
Accounts payable and accrued expenses | 23,696 | (9,629) | 22,436 |
Other current liabilities | 686 | (129) | 374 |
Right-of-use obligation - operating leases - current | 631 | 402 | 1,696 |
Right-of-use obligation - operating leases - long-term | (714) | (200) | (836) |
Other non-current liabilities | (367) | 180 | 239 |
Net cash provided by operating activities | 50,001 | 15,368 | (6,988) |
Investing activities | |||
Additions to property and equipment | (11,879) | (12,585) | (11,578) |
Cash paid for intangible assets | (108) | ||
Proceeds from sale of property and equipment | 86 | 68 | 27 |
Net cash used in investing activities | (11,901) | (12,517) | (11,551) |
Financing activities | |||
Borrowings from revolving loan payable | 244 | 10,417 | 131 |
Payments made on revolving loan payable | (244) | (10,417) | (131) |
Payments on finance leases | (4,738) | (4,232) | (2,164) |
Repurchase of treasury stock | (4,311) | (524) | |
Net proceeds from issuance of common stock for ESPP | 483 | 795 | |
Statutory tax withholding payment for share-based compensation | (3) | ||
Proceeds from exercise of stock options | 2,650 | 1,284 | 3,661 |
Payment of registration costs of common stock | (68) | ||
Net cash used in financing activities | (5,916) | (2,153) | 902 |
Effect of exchange rate changes on cash | (75) | (21) | |
Net change in cash and cash equivalents | 32,184 | 623 | (17,658) |
Cash and cash equivalents, beginning of period | 18,767 | 18,144 | 35,802 |
Cash and cash equivalents, end of period | 50,951 | 18,767 | 18,144 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Right-of-use operating asset acquired | 15,000 | ||
Right-of-use finance asset acquired | 784 | 9,206 | 4,975 |
Accrued asset purchases | 1,499 | 624 | 1,764 |
Share-based compensation expense capitalized in property and equipment | 804 | 1,180 | 2,159 |
Stock issued for services | 81 | 778 | |
Supplemental disclosure of cash flow information: | |||
Cash paid during the period for income taxes | 210 | 649 | 88 |
Cash paid during the period for interest | 1,394 | 1,437 | 1,115 |
Cash (received) paid during the period for interest (income) expense, net | $ 2,030 | $ 16 | $ 26 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Nature of Operations | 12 Months Ended |
Dec. 30, 2023 | |
Summary of Significant Accounting Policies and Nature of Operations | |
Summary of Significant Accounting Policies and Nature of Operations | Note 1 – Summary of Significant Accounting Policies and Nature of Operations CarParts.com, Inc. (including its subsidiaries) is a leading online retailer of aftermarket auto parts and accessories. The Company primarily sells its products to individual consumers through its flagship website located at www.carparts.com www.carparts.com/investor The Company’s products consist of replacement parts serving the wear and tear and body repair market, hard parts to serve the maintenance and repair market, and performance parts and accessories. The replacement parts category is primarily comprised of body parts for the exterior of an automobile as well as certain other mechanical or electrical parts that are not related to the functioning of the engine or drivetrain. Our parts in this category typically replace original body parts that have been damaged as a result of general wear and tear or a collision. In addition, we sell an extensive line of mirror products, including one of our own house brands called Kool-Vue ® , which are marketed and sold as aftermarket replacement parts and as upgrades to existing parts. The hard parts category is primarily comprised of engine components and other mechanical and electrical parts including one of our house brands of catalytic converters called Evan Fischer ® . These hard parts serve as replacement parts that are generally used by professionals and do-it-yourselfers for engine and mechanical maintenance and repair. We also offer performance versions of many parts sold in each of the above categories. Performance parts and accessories generally consist of parts that enhance the performance of the automobile, upgrade existing functionality of a specific part or improve the physical appearance or comfort of the automobile. The Company is a Delaware C corporation and is headquartered in Torrance, California. The Company has employees located in both the United States and the Philippines. Fiscal Year The Company’s fiscal year is based on a 52 53 Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Based on our current operating plan, we believe that our existing cash, cash equivalents, investments, cash flows from operations and available debt or equity financing will be sufficient to finance our operational cash needs through at least the next twelve months. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. A key estimate made by management relates primarily to determining the net realizable value of inventory. Actual results could differ from this estimate. Cash and Cash Equivalents The Company considers all money market funds and short-term investments purchased with original maturities of ninety days or less to be cash equivalents. Fair Value of Financial Instruments Financial instruments that are not measured at fair value include accounts receivable, accounts payable and debt. Refer to “ Note 2 – Fair Value Measurements Accounts Receivable and Concentration of Credit Risk Accounts receivable are stated net of allowance for doubtful accounts. The allowance for doubtful accounts is determined primarily on the basis of past collection experience and general economic conditions. The Company determines terms and conditions for its customers primarily based on the volume purchased by the customer, customer creditworthiness and past transaction history. Concentrations of credit risk are primarily limited to the offline sales customer base to which the Company’s products are sold, which is related to trade receivables that are approximately 20% and 20% of total accounts receivable, net, balance as of the year ended December 30, 2023 and December 31, 2022, respectively. The Company does not believe significant concentrations of credit risk exist as a significant portion of the outstanding trade receivables balance is insured by a third-party credit insurance company. Inventory Inventories consist of finished goods available-for-sale and are stated at the lower of cost or net realizable value, determined using the first-in first-out (“FIFO”) method. The Company purchases inventory from suppliers both domestically and internationally, and routinely enters into supply agreements with Asia-Pacific based suppliers in China and Taiwan and also U.S. based suppliers who are primarily drop-ship vendors. The Company believes that its products are generally available from more than one supplier and seeks to maintain multiple sources for its products, both internationally and domestically. The Company primarily purchases products in bulk quantities to take advantage of quantity discounts and to ensure inventory availability. Inventory is reported at the lower of cost or net realizable value. We recognize provisions for obsolete and slow-moving inventory primarily based on judgments about expected disposition of inventory, generally, through sales, or liquidations of obsolete inventory, and expected recoverable values per SKU based on currently available or historical information. Inventory as of December 30, 2023 and December 31, 2022 included items in-transit to our distribution centers, in the amounts of $26,801 and $17,444, respectively. Website and Software Development Costs The Company capitalizes certain costs associated with website and software developed for internal use according to ASC 350-50 - Intangibles – Goodwill and Other – Website Development Costs Intangibles – Goodwill and Other – Internal-Use Software two Long-Lived Assets and Intangibles Subject to Amortization The Company accounts for the impairment and disposition of long-lived assets, including intangibles subject to amortization, in accordance with ASC - 360 Property, Plant and Equipment . Deferred Financing Costs Deferred financing costs are being amortized to interest expense over the term of the revolving loan using the straight-line method, which approximates amortization the effective interest method. Revenue Recognition The Company recognizes revenue from product sales and shipping revenues, net of promotional discounts and return allowances, when the following revenue recognition criteria are met: a contract has been identified, separate performance obligations are identified, the transaction price is determined, the transaction price is allocated to separate performance obligations and revenue is recognized upon satisfying each performance obligation. The Company transfers the risk of loss or damage upon shipment, therefore, revenue from product sales is recognized when it is shipped to the customer. Return allowances, which reduce product revenue by the Company’s best estimate of expected product returns, are estimated using historical experience. The Company evaluates the criteria of ASC 606 - Revenue Recognition Principal Agent Considerations Payments received prior to the delivery of goods to customers are recorded as deferred revenue in other current liabilities in the consolidated balance sheets. The Company periodically provides incentive offers to its customers to encourage purchases. Such offers include current discount offers, such as percentage discounts off current purchases and other similar offers. Current discount offers, when accepted by the Company’s customers, are treated as a reduction to the purchase price of the related transaction. Sales discounts are recorded in the period in which the related sale is recognized. Sales return allowances are estimated based on historical amounts and are recorded upon recognizing the related sales. Credits are issued to customers for returned products. No customer accounted for more than 10% of the Company’s net sales. The following table provides an analysis of the allowance for sales returns and the allowance for doubtful accounts (in thousands): Charged to Balance at Revenue, Balance at Beginning Cost or (Deductions) or End of of Period Expenses Recoveries Period Fifty-Two Weeks Ended December 30, 2023 Allowance for sales returns $ 3,073 $ 45,526 $ (45,408) $ 3,191 Allowance for doubtful accounts 35 (6) (28) 1 Fifty-Two Weeks Ended December 31, 2022 Allowance for sales returns $ 2,936 $ 44,950 $ (44,813) $ 3,073 Allowance for doubtful accounts 9 22 4 35 Cost of Sales Cost of sales consists of the direct costs associated with procuring parts from suppliers and delivering products to customers. These costs include direct product costs, outbound freight and shipping costs, warehouse supplies and warranty costs, partially offset by purchase discounts. Total freight and shipping expense, excluding surcharges, included in cost of sales for fiscal years 2023, 2022 and 2021 was $105,830, $93,593 and $89,785, respectively. Depreciation and amortization expenses are excluded from cost of sales and included in operating expense. Warranty Costs The Company or the vendors supplying its products provide the Company’s customers limited warranties on certain products that range from 30 days to lifetime. Historically, the Company’s vendors have been the party primarily responsible for warranty claims. Standard product warranties sold separately by the Company are recorded as deferred revenue and recognized ratably over the life of the warranty, ranging from one Operating Expense Operating expense consists of marketing, general and administrative, fulfillment, and technology expense. The Company also includes share-based compensation expense in the applicable operating expense category based on the respective equity award recipient’s function. Marketing costs, including advertising, are expensed as incurred. The majority of advertising expense is paid to internet search engine service providers, television advertising, and internet commerce facilitators. For fiscal years 2023, 2022 and 2021, the Company recognized advertising costs of $83,146, $79,854 and $69,102, respectively. Marketing expense also includes payroll and related expenses associated with our customer service and marketing personnel. General and administrative expense consists primarily of administrative payroll and related expenses, merchant processing fees, legal and professional fees and other administrative costs. Fulfillment expense consists primarily of payroll and related costs associated with warehouse employees and the Company’s purchasing group, facilities rent, building maintenance, depreciation and other costs associated with inventory management and wholesale operations. Technology expense consists primarily of payroll and related expenses of the Company’s information technology personnel, the cost of hosting the Company’s servers, communications expenses and internet connectivity costs, computer support and website and software development amortization expense. Marketing expense, general and administrative expense, and fulfillment expense also includes depreciation and amortization expense. Share-Based Compensation The Company accounts for share-based compensation in accordance with ASC 718 - Compensation – Stock Compensation Compensation expense for stock options is based on the fair value estimated on the date of grant using an option pricing model, and is recognized over the vesting period of three In accordance with ASC 718, we recognize forfeitures as they occur. Other Income, net Other income, net consists of miscellaneous income or expense and interest income comprised primarily of interest income on investments. Interest Expense Interest expense consists primarily of interest expense on our revolving loan and letters of credit balances, deferred financing cost amortization, and finance lease interest. Income Taxes The Company accounts for income taxes in accordance with ASC 740 - Income Taxes The Company utilizes a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount which is more than 50% likely to be realized upon ultimate settlement. The Company considers many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. As of December 30, 2023, the Company had no material unrecognized tax benefits, interest or penalties related to federal and state income tax matters. The Company’s policy is to record interest and penalties as income tax expense. Taxes Collected from Customers and Remitted to Governmental Authorities The Company presents taxes collected from customers and remitted to governmental authorities on a net basis in accordance with the guidance on ASC 606-10-32-2 - Taxes Collected from Customers and Remitted to Governmental Authorities. Leases The Company accounts for leases in accordance with ASC 842 – Leases (“ASC 842”), which requires lessees to record right-of-use assets and related right-of-use obligations on the balance sheet for all leases with terms longer than 12 months. The Company determines if an arrangement contains a lease at inception. For purposes of calculating operating lease obligations under the standard, the Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company's leases do not contain material residual value guarantees or material restrictive covenants. The discount rate used to measure a lease obligation should be the rate implicit in the lease; however, the Company’s operating leases generally do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is an entity-specific rate which represents the rate of interest a lessee would pay to borrow on a collateralized basis over a similar term with similar payments. Lease expense is recognized on a straight-line basis over the lease term. Foreign Currency Translation Effective July 3, 2022, management reassessed our functional currency determination for our Philippines subsidiary in accordance with ASC 830, Foreign Currency Matters Comprehensive Loss The Company reports comprehensive loss in accordance with ASC 220 - Comprehensive Income Recent Accounting Standard Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 30, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | Note 2 – Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Provisions of ASC 820 establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1 Level 2 Level 3 Financial Assets Valued on a Recurring Basis As of December 30, 2023 and December 31, 2022, the Company held certain assets that are required to be measured at fair value on a recurring basis. These included the Company’s cash and cash equivalents which consist primarily of money market funds and short-term investments with original maturity dates of three months or less at the date of purchase. The Company determines fair value of these assets through quoted market prices and as such they are considered Level 1 assets. Level 1 cash and cash equivalents were valued at $50,951 and $18,767 as of December 30, 2023 and December 31, 2022, respectively. During fiscal years 2023 and 2022 there were no transfers into or out of Level 1 and Level 2 assets. Non-Financial Assets Valued on a Non-Recurring Basis The Company’s long-lived assets, including intangible assets subject to amortization, are measured at fair value on a non-recurring basis. These assets are measured at cost but are written-down to fair value, if necessary, as a result of impairment. As of December 30, 2023 and December 31, 2022, the Company determined long-lived assets, including intangible assets, were not impaired, as such, they were not measured at fair value. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 30, 2023 | |
Property and Equipment, Net | |
Property and Equipment, Net | Note 3 – Property and Equipment, Net The Company’s property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense for fiscal years 2023, 2022 and 2021 was $16,690, $13,607 and $9,895, respectively. The cost and related accumulated depreciation of assets retired or otherwise disposed of are removed from the accounts and the resultant gain or loss is reflected in earnings. Repairs and maintenance are expensed as incurred. Property and equipment consisted of the following as of December 30, 2023 and December 31, 2022: December 30, 2023 December 31, 2022 Machinery and equipment $ 10,150 $ 10,660 Computer software (purchased and developed) and equipment 24,523 24,143 Vehicles 180 305 Leasehold improvements 2,751 2,457 Furniture and fixtures 540 513 Construction in process 12,006 10,341 50,150 48,419 Less accumulated depreciation and amortization (23,761) (24,129) Property and equipment, net $ 26,389 $ 24,290 Construction in process primarily relates to the Company’s internally developed software. Depreciation and amortization of property and equipment is calculated by using the straight-line method for financial reporting purposes, at rates based on the following estimated useful lives: Years Machinery and equipment 2 - 5 Computer software (purchased and developed) 2 - 5 Computer equipment 2 - 5 Vehicles 3 - 5 Leasehold improvements* 3 - 5 Furniture and fixtures 3 - 7 * The estimated useful life is the lesser of 3-5 years or the lease term, whichever is shorter. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 30, 2023 | |
Borrowings | |
Borrowings | Note 4 – Borrowings The Company maintains an asset-based revolving Credit Facility that provides for, among other things a revolving commitment, which is subject to a borrowing base derived from certain receivables, inventory and property and equipment. On June 17, 2022, the Company and JPMorgan entered into an Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) amending and restating in its entirety the original Credit Agreement dated April 26, 2012, as amended through the Fourteenth Amendment. The Credit Agreement, as amended and restated, provides for the revolving commitment in an aggregated principal amount of $75,000 (formerly $30,000) and allows for an uncommitted ability to increase the aggregate principal amount by an additional $75,000 to $150,000 (formerly $40,000 maximum) subject to certain terms and conditions. The Credit Facility matures on June 17, 2027. As of December 30, 2023 and December 31, 2022, the Company’s outstanding revolving loan balance was $0, respectively. As of December 30, 2023 and December 31, 2022, our outstanding standby letters of credit balance was $680 and $620, respectively, and we had $0 of our trade letters of credit outstanding in accounts payable in our consolidated balance sheets. Loans drawn under the Credit Facility bear interest, at the Company’s option, at a per annum rate equal to either (a) SOFR plus an applicable margin of 1.50% to 2.00% per annum based on the Company’s fixed charge coverage ratio, or (b) a “an alternate prime base rate” subject to an increase from 0.00% to 0.50% per annum based on the Company’s fixed charge coverage ratio. As of December 30, 2023, the Company’s SOFR based interest rate was 7.45% and the Company’s prime based rate was 9.00%. A commitment fee, based upon undrawn availability under the Credit Facility bearing interest at a rate of either 0.20% or 0.25% per annum based upon undrawn availability, is payable monthly. Under the terms of the terms of the agreement with JPMorgan, cash receipts are deposited into a lock-box, which are at the Company’s discretion unless the “cash dominion period” is in effect, during which cash receipts will be used to reduce amounts owing under the Credit Agreement. The cash dominion period is triggered in an event of default or if excess availability is less than the $9,000 for three three Certain of the Company’s domestic subsidiaries are co-borrowers (together with the Company, the “Borrowers”) under the Credit Agreement, and certain other domestic subsidiaries are guarantors (the “Guarantors” and, together with the Borrowers, the “Loan Parties”) under the Credit Agreement. The Borrowers and the Guarantors are jointly and severally liable for the Borrowers’ obligations under the Credit Agreement. The Loan Parties’ obligations under the Credit Agreement are secured, subject to customary permitted liens and certain exclusions, by a perfected security interest in (a) all tangible and intangible assets and (b) all of the capital stock owned by the Loan Parties (limited, in the case of foreign subsidiaries, to 65% of the capital stock of such foreign subsidiaries). The Borrowers may voluntarily prepay the loans at any time. The Borrowers are required to make mandatory prepayments of the loans (without payment of a premium) with net cash proceeds received upon the occurrence of certain “prepayment events,” which include certain sales or other dispositions of collateral, certain casualty or condemnation events, certain equity issuances or capital contributions, and the incurrence of certain debt. The Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants applicable to the Company and its subsidiaries, including, among other things, restrictions on indebtedness, liens, fundamental changes, investments, dispositions, prepayment of other indebtedness, mergers, and dividends and other distributions. The Credit Agreement requires us to obtain a prior written consent from JPMorgan when we determine to pay any dividends on or make any distribution with respect to our common stock. Events of default under the Credit Agreement include: failure to timely make payments due under the Credit Agreement; material misrepresentations or misstatements under the Credit Agreement and other related agreements; failure to comply with covenants under the Credit Agreement and other related agreements; certain defaults in respect of other material indebtedness; insolvency or other related events; certain defaulted judgments; certain ERISA-related events; certain security interests or liens under the loan documents cease to be, or are challenged by the Company or any of its subsidiaries as not being, in full force and effect; any loan document or any material provision of the same ceases to be in full force and effect; and certain criminal indictments or convictions of any Loan Party. |
Stockholders' Equity and Share-
Stockholders' Equity and Share-Based Compensation | 12 Months Ended |
Dec. 30, 2023 | |
Stockholders' Equity and Share-Based Compensation | |
Stockholders' Equity and Share-Based Compensation | Note 5 – Stockholders’ Equity and Share-Based Compensation Stock Repurchase Program On July 27, 2021, the Company’s Board of Directors authorized a stock repurchase program under which the Company may purchase up to $30 million of the Company’s common stock from time to time. The repurchases of common stock may be executed through open market purchases, block trades, the implementation of a 10b5-1 plan, and/or any other available methods. During the fiscal year ended December 30, 2023, the Company repurchased 1,221 shares of its common stock at a total cost of $4,287, excluding commissions, at an average price of $3.51 per share. During the fiscal year ended December 31, 2022, the Company did not repurchase any shares of common stock. The share repurchase program has an expiration date of July 26, 2026. Employee Stock Purchase Plan In May 2021, the Company’s stockholders approved the 2021 Employee Stock Purchase Plan (“ESPP”), and the ESPP was amended in May 2023. Under the ESPP, eligible employees who participate in an offering period may have a certain percentage of their eligible earnings withheld, up to certain limitations, to purchase shares of common stock at 85% of the lower of the fair market value on the first or the last business day of the six-month offering period. A total of 750 shares of common stock have been reserved for issuance under the ESPP. During the fiscal years ended December 30, 2023 and December 31, 2022, 114 shares and 107 shares, respectively, were issued under the ESPP. The estimated fair value of employee stock purchase rights under the ESPP was determined using the Black-Scholes option pricing model with the following assumptions: Fiscal Year Ended December 30, 2023 December 31, 2022 Expected life 0.5 0.5 Risk-free interest rate 4.76% - 5.47% 0.19% - 2.52% Expected volatility 44.5% - 71.3% 50.8% - 80.5% Expected dividend yield —% —% Share-Based Compensation Plan Information The Company adopted the 2016 Equity Incentive Plan ("2016 Equity Plan") on March 9, 2016, which became effective on May 31, 2016, following stockholder approval. Subject to adjustment for certain changes in the Company’s capitalization, the aggregate number of shares of the Company’s common stock that may be issued under the 2016 Equity Plan will not exceed the sum of (i) two million five hundred thousand (2,500) new shares, (ii) the number of unallocated shares remaining available for the grant of new awards under the Company’s prior equity plans described below (the “Prior Equity Plans”) as of the effective date of the 2016 Plan (which was equal to 3,894 shares as of May 31, 2016) and (iii) any shares subject to a stock award under the Prior Equity Plans that are not issued because such stock award expires or otherwise terminates without all of the shares covered by such stock award having been issued, that are not issued because such stock award is settled in cash, that are forfeited back to or repurchased by the Company because of the failure to meet a contingency or condition required for the vesting of such shares, or that are reacquired, withheld (or not issued) to satisfy a tax withholding obligation in connection with an award or to satisfy the purchase price or exercise price of a stock award. In addition, the share reserve will automatically increase on January 1st of each year, for a period of nine years, commencing on January 1, 2017 and ending on (and including) January 1, 2026, in an amount equal to one million five hundred thousand (1,500) shares per year; however the Board of Directors of the Company may act prior to January 1st of a given year to provide that there will be no January 1st increase in the share reserve for such year or that the increase in the share reserve for such year will be a lesser number of shares of common stock than would otherwise occur pursuant the automatic increase. Options granted under the 2016 Equity Plan generally expire no later than ten years from the date of grant and generally vest over a period of four years. The exercise price of all option grants must be equal to 100% of the fair market value on the date of grant. As of December 30, 2023, approximately 1,538 shares were available for future grants under the 2016 Equity Plan. The following tables summarizes the Company’s stock option activity for the fiscal years ended, and details regarding the options outstanding and exercisable as of December 30, 2023 and December 31, 2022: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term (in years) Value (1) Options outstanding, December 31, 2022 3,463 $ 2.25 Granted — $ — Exercised (1,673) $ 1.58 Cancelled: Forfeited (68) $ 2.82 Expired (29) $ 7.40 Options outstanding, December 30, 2023 1,693 $ 2.79 5.03 $ 1,642 Vested and expected to vest at December 30, 2023 1,693 $ 2.79 5.03 $ 1,642 Options exercisable, December 30, 2023 1,642 $ 2.71 4.98 $ 1,631 Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term (in years) Value (1) Options outstanding, January 1, 2022 4,765 $ 2.17 Granted — $ — Exercised (738) $ 1.74 Cancelled: Forfeited (547) $ 2.16 Expired (17) $ 4.45 Options outstanding, December 31, 2022 3,463 $ 2.25 4.79 $ 14,313 Vested and expected to vest at December 31, 2022 3,463 $ 2.25 4.79 $ 14,313 Options exercisable, December 31, 2022 2,903 $ 2.10 4.38 $ 12,333 (1) These amounts represent the difference between the exercise price and the closing price of CarParts.com, Inc. common stock at the end of the respective fiscal year as reported on the NASDAQ Stock Market, for all options outstanding that have an exercise price currently below the closing price. No stock options were granted under the 2016 Equity Plan during the fiscal years 2023 and 2022. The intrinsic value of stock options at the date of the exercise is the difference between the fair value of the stock at the date of exercise and the exercise price. During fiscal years 2023 and 2022, the total intrinsic value of the exercised options was $5,421 and $4,085, respectively. The Company had $107 of unrecognized share-based compensation expense related to stock options outstanding as of December 30, 2023, which the expense is expected to be recognized over a weighted-average period of 0.44 years. Restricted Stock Units During the fiscal years 2023 and 2022, the Company granted an aggregate of 2,311 and 2,677 RSUs, respectively, to certain employees of the Company. The restricted stock units ("RSUs") were granted under the 2016 Equity Incentive Plan and reduced the pool of equity instruments available under that plan. The vesting of each RSU is subject to the employee’s continued employment through applicable vesting dates. Some RSUs granted to certain executives may vest on an accelerated basis in part or in full upon the occurrence of certain events. The RSUs are accounted for as equity awards and are measured at fair value based upon the grant date price of the Company’s common stock. The closing price of the Company’s common stock on each grant date during 2023 ranged from $3.25 to $6.86. The closing price of the Company’s common stock on each grant during 2022 ranged from $5.30 to $10.99. Compensation expense is recognized on a straight-line basis over the requisite service period of one During 2023 there were 1,517 RSUs granted that were time-based and 794 granted that were performance-based. As of December 30, 2023, the performance criteria established to trigger vesting of PSUs granted in 2023 is still subject to certification by the Compensation Committee. During 2022 there were 1,634 RSUs granted that were time-based and 1,043 granted that were performance-based. As of December 31, 2022, the performance criteria established to trigger vesting of the PSUs granted in 2022 was met. For the fiscal year ended December 30, 2023, we recorded compensation expense of $11,663 related to RSU’s. As of December 30, 2023, there was unrecognized compensation expense of $17,593 related to unvested RSUs based on awards that are expected to vest. The unrecognized compensation expense is expected to be recognized over a weighted-average period of 1.82 years. Share-Based Compensation Expense For the fiscal years 2023, 2022 and 2021, the Company recorded share-based compensation expense related to stock options and RSUs of $11,675, $11,296 and $15,685, respectively. The share-based compensation expense is net of amounts capitalized to internally-developed software of $804 , |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 30, 2023 | |
Net Loss Per Share | |
Net Loss Per Share | Note 6 – Net Loss Per Share The following table sets forth the computation of basic and diluted net loss per share: Fiscal Year Ended December 30, 2023 December 31, 2022 January 1, 2022 Net loss per share: Numerator: Net loss allocable to common shares $ (8,223) $ (951) $ (10,339) Denominator: Weighted-average common shares outstanding (basic and diluted) 56,570 54,137 51,381 Basic and diluted net loss per share $ (0.15) $ (0.02) $ (0.20) For the fiscal years ended December 30, 2023, December 31, 2022 and January 1, 2022, all outstanding potentially dilutive securities have been excluded from the calculation of diluted net loss per share as the effect of including such securities would have been anti-dilutive. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 30, 2023 | |
Income Taxes | |
Income Taxes | Note 7 – Income Taxes The components of loss before income taxes consist of the following: Fiscal Year Ended December 30, 2023 December 31, 2022 January 1, 2022 Domestic operations $ (8,888) $ (965) $ (10,460) Foreign operations 810 646 472 Total loss before income taxes $ (8,078) $ (319) $ (9,988) The income tax provision consists of the following: Fiscal Year Ended December 30, 2023 December 31, 2022 January 1, 2022 Current: State tax $ (87) $ 395 $ 68 Foreign tax 232 237 283 Total current taxes 145 632 351 Deferred: Federal tax (737) 307 (6,628) State tax (128) (195) (407) Total deferred taxes (865) 112 (7,035) Valuation allowance 865 (112) 7,035 Income tax provision $ 145 $ 632 $ 351 Income tax provision differs from the amount that would result from applying the federal statutory rate as follows: Fiscal Year Ended December 30, 2023 December 31, 2022 January 1, 2022 Income tax at U.S. federal statutory rate $ (1,643) $ (67) $ (2,098) Share-based compensation 817 397 (4,602) State income tax, net of federal tax effect (170) 158 (269) Foreign tax 173 194 243 Other 103 62 42 Change in valuation allowance 865 (112) 7,035 Effective tax provision $ 145 $ 632 $ 351 For fiscal years 2023, 2022 and 2021, the effective tax rate for the Company was (1.8)%, (198.0)% and (3.5)%, respectively. The Company’s effective tax rate for fiscal years 2023, 2022 and 2021 differs from the U.S. federal rate primarily as a result of non-deductible share-based compensation, the write-off of expired state net operating loss carryforwards, and the change in the valuation allowance maintained against the Company’s deferred tax assets. Deferred tax assets and deferred tax liabilities consisted of the following: December 30, 2023 December 31, 2022 Deferred tax assets: Inventory and inventory related allowance $ 1,605 $ 2,440 Lease liabilities 8,609 11,226 Share-based compensation 4,024 4,337 Book over tax depreciation 1,043 — Intangibles 90 137 Sales and bad debt allowances 1,130 1,099 Accrued compensation 127 444 Net operating loss 29,632 28,728 Other 47 151 Total deferred tax assets 46,307 48,562 Valuation allowance (38,458) (37,565) Net deferred tax assets 7,849 10,997 Deferred tax liabilities: Right-of-use assets 7,847 10,506 Tax over book depreciation — 489 Other 2 2 Total deferred tax liabilities 7,849 10,997 Net deferred tax assets $ — $ — As of December 30, 2023, federal and state net operating loss (“NOL”) carryforwards were $105,224 and $84,780, respectively. Federal NOL carryforwards of $891 were acquired in the acquisition of WAG which are subject to Internal Revenue Code section 382 and limited to an annual usage limitation of $135. Federal NOL carryforwards begin to expire in 2029, while state NOL carryforwards also begin to expire in 2029. The state NOL carryforwards expire in the respective tax years as follows: 2029 $ 1,814 2030 9,555 2031 14,611 2032 24,202 2033 24,832 Thereafter 9,766 $ 84,780 Under the provisions of ASC 740, management is required to evaluate whether a valuation allowance should be established against its deferred tax assets based on the consideration of all available evidence using a “more likely than not” standard. Realization of deferred tax assets is dependent upon taxable income in prior carryback years, estimates of future taxable income, tax planning strategies, and reversal of existing taxable temporary differences. ASC 740 provides that forming a conclusion that a valuation allowance is not needed is difficult when there is negative evidence such as cumulative losses in recent years or losses expected in early future years. As of December 30, 2023, mainly due to cumulative losses in recent years, the Company maintained a valuation allowance in the amount of $38,458 against deferred tax assets that were not more likely than not of being realized. We are subject to U.S. federal income tax as well as income tax of foreign and state tax jurisdictions. The tax years 2019-2023 remain open to examination by the major taxing jurisdictions to which the Company is subject, except the Internal Revenue Service for which the tax years 2020-2023 remain open. The Company does not anticipate a significant change to the amount of unrecognized tax benefits within the next twelve months. Included in accrued expenses are income taxes receivable of ($267) and ($67) as of December 30, 2023 and December 31, 2022, respectively, consisting primarily of current state taxes. Included in other non-current liabilities are income taxes payable of $1,124 and $990 as of December 30, 2023 and December 31, 2022, respectively, relating to accrued future foreign withholding taxes. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 30, 2023 | |
Commitments and Contingencies. | |
Commitments and Contingencies | Note 8 – Commitments and Contingencies Facilities Leases The Company’s leases its corporate headquarters located in Torrance, California. The Company also leases warehouse space in LaSalle, Illinois, Chesapeake, Virginia, Las Vegas, Nevada, Grand Prairie, Texas, and Jacksonville, Florida, in addition to leasing office space for the Philippines subsidiary. Quantitative information regarding the Company’s leases are as follows (in thousands): Fiscal Year ended December 30, 2023 December 31, 2022 January 1, 2022 Components of lease cost Finance lease cost components Amortization of finance lease assets $ 5,040 $ 4,440 $ 2,571 Interest on finance lease liabilities 1,058 1,139 1,111 Total finance lease costs $ 6,098 $ 5,579 $ 3,682 Operating lease costs $ 4,488 $ 4,107 $ 2,441 Total lease cost $ 10,586 $ 9,686 $ 6,123 Supplemental cash flow information related to operating and finance leases is as follows: Fiscal Year ended December 30, 2023 December 31, 2022 January 1, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 5,549 $ 5,269 $ 3,399 Operating cash outflow from finance leases 1,058 1,139 1,111 Financing cash outflow from finance leases 4,738 4,232 2,164 Weighted-average remaining lease term-finance leases (in years) 5.6 5.8 7.2 Weighted-average remaining lease term-operating leases (in years) 4.6 5.4 6.3 Weighted-average discount rate-finance leases 6.13 % 5.72 % 6.06 % Weighted-average discount rate-operating leases 4.08 % 4.11 % 4.12 % Lease commitments as of December 30, 2023 were as follows: Finance Leases Operating Leases Total 2024 $ 5,126 $ 5,529 $ 10,655 2025 4,103 5,140 9,243 2026 3,223 4,465 7,688 2027 1,885 4,425 6,310 2028 1,206 2,662 3,868 Thereafter 4,634 1,475 6,109 Total minimum payments required 20,177 23,696 43,873 Less portion representing interest 3,542 2,205 5,747 Present value of lease obligations $ 16,635 $ 21,491 $ 38,126 Less current portion of lease obligations 4,308 4,749 9,057 Long-term portion of lease obligations $ 12,327 $ 16,742 $ 29,069 Legal Matters Asbestos . occurrence rather than a claims made basis, and the Company is not expected to incur significant out-of-pocket costs in connection with this matter that would be material to its consolidated financial statements. Ordinary course litigation who was directly employed by the Company’s third party labor contracting firm at the Company’s Grand Prairie, TX warehouse has filed a negligence claim in the Superior Court of the State of California, Los Angeles County, Central District relating to a workplace injury from March 2021. The case is in the discovery stage, and trial is currently scheduled for August 2024. The Company intends to defend itself vigorously, although there can be no assurance that there will not be some liability. Related Party Matters The Company has entered into indemnification agreements with the Company’s directors and executive officers. These agreements require the Company to indemnify these individuals to the fullest extent permitted under law against liabilities that may arise by reason of their service to the Company, and to advance expenses incurred as a result of any proceeding against them as to which they could be indemnified. |
Employee Retirement Plan and De
Employee Retirement Plan and Deferred Compensation Plan | 12 Months Ended |
Dec. 30, 2023 | |
Employee Retirement Plan and Deferred Compensation Plan | |
Employee Retirement Plan and Deferred Compensation Plan | Note 9 – Employee Retirement Plan and Deferred Compensation Plan Effective February 17, 2006, the Company adopted a 401(k) defined contribution retirement plan covering all full time employees who have completed one month of service. The Company may, at its sole discretion, match fifty In January 2010, the Company adopted the CarParts.com, Inc. Management Deferred Compensation Plan (the “Deferred Compensation Plan”), for the purpose of providing highly compensated employees a program to meet their financial planning needs. The Deferred Compensation Plan provides participants with the opportunity to defer up to 90% of their base salary and up to 100% of their annual earned bonus, all of which, together with the associated investment returns, are 100% vested from the outset. The Deferred Compensation Plan, which is designed to be exempt from most provisions of the Employee Retirement Security Act of 1974, is informally funded by the Company through the purchase of mutual funds, held by a rabbi trust. The deferred compensation liabilities (consisting of employer contributions, employee deferrals and associated earnings and losses) are general unsecured obligations of the Company. Liabilities under the Deferred Compensation Plan are recorded at amounts due to participants, based on the fair value of participants’ selected investments. The Company may at its discretion contribute certain amounts to eligible employee accounts. In January 2010, the Company began to contribute 50% of the first 2% of participants’ eligible contributions into their Deferred Compensation Plan accounts. As of December 30, 2023, the assets and associated liabilities of the Deferred Compensation Plan were $539 and $914, respectively, and were $491 and $697, respectively, as of December 31, 2022 and are included in other non-current assets, other current liabilities and other non-current liabilities in our consolidated balance sheets. The Deferred Compensation Plan was terminated in the fourth quarter of 2023, and the obligations will be paid out in 2024. The interest dividend and realized/unrealized gain/loss for fiscal years 2023, 2022 and 2021 was immaterial. |
Product Information
Product Information | 12 Months Ended |
Dec. 30, 2023 | |
Product Information | |
Product Information | Note 10 – Product Information As described in detail under “Note 1 – Summary of Significant Accounting Policies and Nature of Operations” the maintenance and repair market, and performance parts and accessories. The following table summarizes the approximate distribution of the Company’s revenue by product type. Fiscal Year Ended December 30, 2023 December 31, 2022 January 1, 2022 House Brands Replacement Parts 64 % 67 % 68 % Hard Parts 21 % 20 % 18 % Performance — % 1 % 1 % Branded Replacement Parts 1 % 1 % 1 % Hard Parts 9 % 7 % 7 % Performance 5 % 4 % 5 % Total 100 % 100 % 100 % |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Nature of Operations (Policies) | 12 Months Ended |
Dec. 30, 2023 | |
Summary of Significant Accounting Policies and Nature of Operations | |
Fiscal Year | Fiscal Year The Company’s fiscal year is based on a 52 53 |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Based on our current operating plan, we believe that our existing cash, cash equivalents, investments, cash flows from operations and available debt or equity financing will be sufficient to finance our operational cash needs through at least the next twelve months. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. A key estimate made by management relates primarily to determining the net realizable value of inventory. Actual results could differ from this estimate. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all money market funds and short-term investments purchased with original maturities of ninety days or less to be cash equivalents. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial instruments that are not measured at fair value include accounts receivable, accounts payable and debt. Refer to “ Note 2 – Fair Value Measurements |
Accounts Receivable and Concentration of Credit Risk | Accounts Receivable and Concentration of Credit Risk Accounts receivable are stated net of allowance for doubtful accounts. The allowance for doubtful accounts is determined primarily on the basis of past collection experience and general economic conditions. The Company determines terms and conditions for its customers primarily based on the volume purchased by the customer, customer creditworthiness and past transaction history. Concentrations of credit risk are primarily limited to the offline sales customer base to which the Company’s products are sold, which is related to trade receivables that are approximately 20% and 20% of total accounts receivable, net, balance as of the year ended December 30, 2023 and December 31, 2022, respectively. The Company does not believe significant concentrations of credit risk exist as a significant portion of the outstanding trade receivables balance is insured by a third-party credit insurance company. |
Inventory | Inventory Inventories consist of finished goods available-for-sale and are stated at the lower of cost or net realizable value, determined using the first-in first-out (“FIFO”) method. The Company purchases inventory from suppliers both domestically and internationally, and routinely enters into supply agreements with Asia-Pacific based suppliers in China and Taiwan and also U.S. based suppliers who are primarily drop-ship vendors. The Company believes that its products are generally available from more than one supplier and seeks to maintain multiple sources for its products, both internationally and domestically. The Company primarily purchases products in bulk quantities to take advantage of quantity discounts and to ensure inventory availability. Inventory is reported at the lower of cost or net realizable value. We recognize provisions for obsolete and slow-moving inventory primarily based on judgments about expected disposition of inventory, generally, through sales, or liquidations of obsolete inventory, and expected recoverable values per SKU based on currently available or historical information. Inventory as of December 30, 2023 and December 31, 2022 included items in-transit to our distribution centers, in the amounts of $26,801 and $17,444, respectively. |
Website and Software Development Costs | Website and Software Development Costs The Company capitalizes certain costs associated with website and software developed for internal use according to ASC 350-50 - Intangibles – Goodwill and Other – Website Development Costs Intangibles – Goodwill and Other – Internal-Use Software two |
Long-Lived Assets and Intangibles Subject to Amortization | Long-Lived Assets and Intangibles Subject to Amortization The Company accounts for the impairment and disposition of long-lived assets, including intangibles subject to amortization, in accordance with ASC - 360 Property, Plant and Equipment . |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs are being amortized to interest expense over the term of the revolving loan using the straight-line method, which approximates amortization the effective interest method. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from product sales and shipping revenues, net of promotional discounts and return allowances, when the following revenue recognition criteria are met: a contract has been identified, separate performance obligations are identified, the transaction price is determined, the transaction price is allocated to separate performance obligations and revenue is recognized upon satisfying each performance obligation. The Company transfers the risk of loss or damage upon shipment, therefore, revenue from product sales is recognized when it is shipped to the customer. Return allowances, which reduce product revenue by the Company’s best estimate of expected product returns, are estimated using historical experience. The Company evaluates the criteria of ASC 606 - Revenue Recognition Principal Agent Considerations Payments received prior to the delivery of goods to customers are recorded as deferred revenue in other current liabilities in the consolidated balance sheets. The Company periodically provides incentive offers to its customers to encourage purchases. Such offers include current discount offers, such as percentage discounts off current purchases and other similar offers. Current discount offers, when accepted by the Company’s customers, are treated as a reduction to the purchase price of the related transaction. Sales discounts are recorded in the period in which the related sale is recognized. Sales return allowances are estimated based on historical amounts and are recorded upon recognizing the related sales. Credits are issued to customers for returned products. No customer accounted for more than 10% of the Company’s net sales. The following table provides an analysis of the allowance for sales returns and the allowance for doubtful accounts (in thousands): Charged to Balance at Revenue, Balance at Beginning Cost or (Deductions) or End of of Period Expenses Recoveries Period Fifty-Two Weeks Ended December 30, 2023 Allowance for sales returns $ 3,073 $ 45,526 $ (45,408) $ 3,191 Allowance for doubtful accounts 35 (6) (28) 1 Fifty-Two Weeks Ended December 31, 2022 Allowance for sales returns $ 2,936 $ 44,950 $ (44,813) $ 3,073 Allowance for doubtful accounts 9 22 4 35 |
Cost of Sales | Cost of Sales Cost of sales consists of the direct costs associated with procuring parts from suppliers and delivering products to customers. These costs include direct product costs, outbound freight and shipping costs, warehouse supplies and warranty costs, partially offset by purchase discounts. Total freight and shipping expense, excluding surcharges, included in cost of sales for fiscal years 2023, 2022 and 2021 was $105,830, $93,593 and $89,785, respectively. Depreciation and amortization expenses are excluded from cost of sales and included in operating expense. |
Warranty Costs | Warranty Costs The Company or the vendors supplying its products provide the Company’s customers limited warranties on certain products that range from 30 days to lifetime. Historically, the Company’s vendors have been the party primarily responsible for warranty claims. Standard product warranties sold separately by the Company are recorded as deferred revenue and recognized ratably over the life of the warranty, ranging from one |
Operating Expense | Operating Expense Operating expense consists of marketing, general and administrative, fulfillment, and technology expense. The Company also includes share-based compensation expense in the applicable operating expense category based on the respective equity award recipient’s function. Marketing costs, including advertising, are expensed as incurred. The majority of advertising expense is paid to internet search engine service providers, television advertising, and internet commerce facilitators. For fiscal years 2023, 2022 and 2021, the Company recognized advertising costs of $83,146, $79,854 and $69,102, respectively. Marketing expense also includes payroll and related expenses associated with our customer service and marketing personnel. General and administrative expense consists primarily of administrative payroll and related expenses, merchant processing fees, legal and professional fees and other administrative costs. Fulfillment expense consists primarily of payroll and related costs associated with warehouse employees and the Company’s purchasing group, facilities rent, building maintenance, depreciation and other costs associated with inventory management and wholesale operations. Technology expense consists primarily of payroll and related expenses of the Company’s information technology personnel, the cost of hosting the Company’s servers, communications expenses and internet connectivity costs, computer support and website and software development amortization expense. Marketing expense, general and administrative expense, and fulfillment expense also includes depreciation and amortization expense. |
Share-Based Compensation | Share-Based Compensation The Company accounts for share-based compensation in accordance with ASC 718 - Compensation – Stock Compensation Compensation expense for stock options is based on the fair value estimated on the date of grant using an option pricing model, and is recognized over the vesting period of three In accordance with ASC 718, we recognize forfeitures as they occur. |
Other Income, net | Other Income, net Other income, net consists of miscellaneous income or expense and interest income comprised primarily of interest income on investments. |
Interest Expense | Interest Expense Interest expense consists primarily of interest expense on our revolving loan and letters of credit balances, deferred financing cost amortization, and finance lease interest. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC 740 - Income Taxes The Company utilizes a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount which is more than 50% likely to be realized upon ultimate settlement. The Company considers many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. As of December 30, 2023, the Company had no material unrecognized tax benefits, interest or penalties related to federal and state income tax matters. The Company’s policy is to record interest and penalties as income tax expense. |
Taxes Collected from Customers and Remitted to Governmental Authorities | Taxes Collected from Customers and Remitted to Governmental Authorities The Company presents taxes collected from customers and remitted to governmental authorities on a net basis in accordance with the guidance on ASC 606-10-32-2 - Taxes Collected from Customers and Remitted to Governmental Authorities. |
Leases | Leases The Company accounts for leases in accordance with ASC 842 – Leases (“ASC 842”), which requires lessees to record right-of-use assets and related right-of-use obligations on the balance sheet for all leases with terms longer than 12 months. The Company determines if an arrangement contains a lease at inception. For purposes of calculating operating lease obligations under the standard, the Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company's leases do not contain material residual value guarantees or material restrictive covenants. The discount rate used to measure a lease obligation should be the rate implicit in the lease; however, the Company’s operating leases generally do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is an entity-specific rate which represents the rate of interest a lessee would pay to borrow on a collateralized basis over a similar term with similar payments. Lease expense is recognized on a straight-line basis over the lease term. |
Foreign Currency Translation | Foreign Currency Translation Effective July 3, 2022, management reassessed our functional currency determination for our Philippines subsidiary in accordance with ASC 830, Foreign Currency Matters |
Comprehensive loss | Comprehensive Loss The Company reports comprehensive loss in accordance with ASC 220 - Comprehensive Income |
Recently Adopted Accounting Pronouncements | Recent Accounting Standard Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Nature of Operations (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Summary of Significant Accounting Policies and Nature of Operations | |
Allowance for Sales Returns and Allowance for Doubtful Accounts | The following table provides an analysis of the allowance for sales returns and the allowance for doubtful accounts (in thousands): Charged to Balance at Revenue, Balance at Beginning Cost or (Deductions) or End of of Period Expenses Recoveries Period Fifty-Two Weeks Ended December 30, 2023 Allowance for sales returns $ 3,073 $ 45,526 $ (45,408) $ 3,191 Allowance for doubtful accounts 35 (6) (28) 1 Fifty-Two Weeks Ended December 31, 2022 Allowance for sales returns $ 2,936 $ 44,950 $ (44,813) $ 3,073 Allowance for doubtful accounts 9 22 4 35 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Property and Equipment, Net | |
Summary of Property and Equipment | December 30, 2023 December 31, 2022 Machinery and equipment $ 10,150 $ 10,660 Computer software (purchased and developed) and equipment 24,523 24,143 Vehicles 180 305 Leasehold improvements 2,751 2,457 Furniture and fixtures 540 513 Construction in process 12,006 10,341 50,150 48,419 Less accumulated depreciation and amortization (23,761) (24,129) Property and equipment, net $ 26,389 $ 24,290 |
Summary of Estimated Useful Lives of Property and Equipment | Years Machinery and equipment 2 - 5 Computer software (purchased and developed) 2 - 5 Computer equipment 2 - 5 Vehicles 3 - 5 Leasehold improvements* 3 - 5 Furniture and fixtures 3 - 7 * The estimated useful life is the lesser of 3-5 years or the lease term, whichever is shorter. |
Stockholders' Equity and Shar_2
Stockholders' Equity and Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Stockholders' Equity and Share-Based Compensation | |
Schedule of Estimated fair value of Employee Stock Purchase Rights under the ESPP | Fiscal Year Ended December 30, 2023 December 31, 2022 Expected life 0.5 0.5 Risk-free interest rate 4.76% - 5.47% 0.19% - 2.52% Expected volatility 44.5% - 71.3% 50.8% - 80.5% Expected dividend yield —% —% |
Summary of Stock Option Activity | Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term (in years) Value (1) Options outstanding, December 31, 2022 3,463 $ 2.25 Granted — $ — Exercised (1,673) $ 1.58 Cancelled: Forfeited (68) $ 2.82 Expired (29) $ 7.40 Options outstanding, December 30, 2023 1,693 $ 2.79 5.03 $ 1,642 Vested and expected to vest at December 30, 2023 1,693 $ 2.79 5.03 $ 1,642 Options exercisable, December 30, 2023 1,642 $ 2.71 4.98 $ 1,631 Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term (in years) Value (1) Options outstanding, January 1, 2022 4,765 $ 2.17 Granted — $ — Exercised (738) $ 1.74 Cancelled: Forfeited (547) $ 2.16 Expired (17) $ 4.45 Options outstanding, December 31, 2022 3,463 $ 2.25 4.79 $ 14,313 Vested and expected to vest at December 31, 2022 3,463 $ 2.25 4.79 $ 14,313 Options exercisable, December 31, 2022 2,903 $ 2.10 4.38 $ 12,333 (1) These amounts represent the difference between the exercise price and the closing price of CarParts.com, Inc. common stock at the end of the respective fiscal year as reported on the NASDAQ Stock Market, for all options outstanding that have an exercise price currently below the closing price. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Net Loss Per Share | |
Computation of Basic and Diluted Net Income (Loss) Per Share | Fiscal Year Ended December 30, 2023 December 31, 2022 January 1, 2022 Net loss per share: Numerator: Net loss allocable to common shares $ (8,223) $ (951) $ (10,339) Denominator: Weighted-average common shares outstanding (basic and diluted) 56,570 54,137 51,381 Basic and diluted net loss per share $ (0.15) $ (0.02) $ (0.20) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Income Taxes | |
Components of Loss Before Income Taxes | Fiscal Year Ended December 30, 2023 December 31, 2022 January 1, 2022 Domestic operations $ (8,888) $ (965) $ (10,460) Foreign operations 810 646 472 Total loss before income taxes $ (8,078) $ (319) $ (9,988) |
Summary of Income Tax (Benefit) Provision | Fiscal Year Ended December 30, 2023 December 31, 2022 January 1, 2022 Current: State tax $ (87) $ 395 $ 68 Foreign tax 232 237 283 Total current taxes 145 632 351 Deferred: Federal tax (737) 307 (6,628) State tax (128) (195) (407) Total deferred taxes (865) 112 (7,035) Valuation allowance 865 (112) 7,035 Income tax provision $ 145 $ 632 $ 351 |
Summary of Differences Between Income Tax Provision (Benefit) and Applied Federal Statutory Rate | Fiscal Year Ended December 30, 2023 December 31, 2022 January 1, 2022 Income tax at U.S. federal statutory rate $ (1,643) $ (67) $ (2,098) Share-based compensation 817 397 (4,602) State income tax, net of federal tax effect (170) 158 (269) Foreign tax 173 194 243 Other 103 62 42 Change in valuation allowance 865 (112) 7,035 Effective tax provision $ 145 $ 632 $ 351 |
Summary of Deferred Tax Assets and Deferred Tax Liabilities | December 30, 2023 December 31, 2022 Deferred tax assets: Inventory and inventory related allowance $ 1,605 $ 2,440 Lease liabilities 8,609 11,226 Share-based compensation 4,024 4,337 Book over tax depreciation 1,043 — Intangibles 90 137 Sales and bad debt allowances 1,130 1,099 Accrued compensation 127 444 Net operating loss 29,632 28,728 Other 47 151 Total deferred tax assets 46,307 48,562 Valuation allowance (38,458) (37,565) Net deferred tax assets 7,849 10,997 Deferred tax liabilities: Right-of-use assets 7,847 10,506 Tax over book depreciation — 489 Other 2 2 Total deferred tax liabilities 7,849 10,997 Net deferred tax assets $ — $ — |
Summary of State NOL Carryforwards Expiration Year | 2029 $ 1,814 2030 9,555 2031 14,611 2032 24,202 2033 24,832 Thereafter 9,766 $ 84,780 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Commitments and Contingencies. | |
Schedule of Quantitative information regarding the Company's Leases | Quantitative information regarding the Company’s leases are as follows (in thousands): Fiscal Year ended December 30, 2023 December 31, 2022 January 1, 2022 Components of lease cost Finance lease cost components Amortization of finance lease assets $ 5,040 $ 4,440 $ 2,571 Interest on finance lease liabilities 1,058 1,139 1,111 Total finance lease costs $ 6,098 $ 5,579 $ 3,682 Operating lease costs $ 4,488 $ 4,107 $ 2,441 Total lease cost $ 10,586 $ 9,686 $ 6,123 Supplemental cash flow information related to operating and finance leases is as follows: Fiscal Year ended December 30, 2023 December 31, 2022 January 1, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 5,549 $ 5,269 $ 3,399 Operating cash outflow from finance leases 1,058 1,139 1,111 Financing cash outflow from finance leases 4,738 4,232 2,164 Weighted-average remaining lease term-finance leases (in years) 5.6 5.8 7.2 Weighted-average remaining lease term-operating leases (in years) 4.6 5.4 6.3 Weighted-average discount rate-finance leases 6.13 % 5.72 % 6.06 % Weighted-average discount rate-operating leases 4.08 % 4.11 % 4.12 % |
Schedule of Lease Commitments - Finance lease | Finance Leases Operating Leases Total 2024 $ 5,126 $ 5,529 $ 10,655 2025 4,103 5,140 9,243 2026 3,223 4,465 7,688 2027 1,885 4,425 6,310 2028 1,206 2,662 3,868 Thereafter 4,634 1,475 6,109 Total minimum payments required 20,177 23,696 43,873 Less portion representing interest 3,542 2,205 5,747 Present value of lease obligations $ 16,635 $ 21,491 $ 38,126 Less current portion of lease obligations 4,308 4,749 9,057 Long-term portion of lease obligations $ 12,327 $ 16,742 $ 29,069 |
Schedule of Lease Commitments - Operating lease | Finance Leases Operating Leases Total 2024 $ 5,126 $ 5,529 $ 10,655 2025 4,103 5,140 9,243 2026 3,223 4,465 7,688 2027 1,885 4,425 6,310 2028 1,206 2,662 3,868 Thereafter 4,634 1,475 6,109 Total minimum payments required 20,177 23,696 43,873 Less portion representing interest 3,542 2,205 5,747 Present value of lease obligations $ 16,635 $ 21,491 $ 38,126 Less current portion of lease obligations 4,308 4,749 9,057 Long-term portion of lease obligations $ 12,327 $ 16,742 $ 29,069 |
Product Information (Tables)
Product Information (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Product Information | |
Summary of Revenue by Product Type | Fiscal Year Ended December 30, 2023 December 31, 2022 January 1, 2022 House Brands Replacement Parts 64 % 67 % 68 % Hard Parts 21 % 20 % 18 % Performance — % 1 % 1 % Branded Replacement Parts 1 % 1 % 1 % Hard Parts 9 % 7 % 7 % Performance 5 % 4 % 5 % Total 100 % 100 % 100 % |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Nature of Operations - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | |
Summary of Significant Accounting Policies and Nature of Operations | |||
Trade receivable as percent of total accounts receivable, net | 20% | 20% | |
Number of suppliers | item | 1 | ||
Inventory in-transit | $ 26,801 | $ 17,444 | |
Capitalized website and software development costs | 9,951 | 11,067 | $ 6,334 |
Impairment loss on intangible assets | 0 | 0 | |
Impairment loss on property and equipment | $ 0 | ||
Warranty, coverage period | 30 days | ||
Warranty, unlimited product replacement, coverage period | 5 years | ||
Warranty, one-time product replacement, coverage period, option one | 5 years | ||
Warranty, one-time product replacement, coverage period, option two | 3 years | ||
Advertising costs | $ 83,146 | 79,854 | 69,102 |
Unrecognized tax benefits, interest or penalties | $ 0 | ||
Minimum | |||
Summary of Significant Accounting Policies and Nature of Operations | |||
Length Of Fiscal Year | 364 days | ||
Standard product warranty, recognition period | 1 year | ||
Maximum | |||
Summary of Significant Accounting Policies and Nature of Operations | |||
Length Of Fiscal Year | 371 days | ||
Standard product warranty, recognition period | 5 years | ||
Website and Software Development | |||
Summary of Significant Accounting Policies and Nature of Operations | |||
Capitalized website and software development costs | $ 804 | 1,180 | 2,159 |
Capitalized website and software development cost amount | 24,215 | 23,761 | |
Capitalized website and software development costs accumulated amortization and impairment amount | $ 13,608 | 13,898 | |
Website and Software Development | Minimum | |||
Summary of Significant Accounting Policies and Nature of Operations | |||
Amortization on a straight-line basis, period | 2 years | ||
Website and Software Development | Maximum | |||
Summary of Significant Accounting Policies and Nature of Operations | |||
Amortization on a straight-line basis, period | 5 years | ||
Cost of Sales | |||
Summary of Significant Accounting Policies and Nature of Operations | |||
Freight and shipping expenses | $ 105,830 | $ 93,593 | $ 89,785 |
Employee Stock Option [Member] | Minimum | |||
Summary of Significant Accounting Policies and Nature of Operations | |||
Stock options vesting period | 3 years | ||
Employee Stock Option [Member] | Maximum | |||
Summary of Significant Accounting Policies and Nature of Operations | |||
Stock options vesting period | 4 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Nature of Operations - Allowance for Sales Returns and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Allowance for sales returns | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance at Beginning of Period | $ 3,073 | $ 2,936 |
Charged to Revenue, Cost or Expenses | 45,526 | 44,950 |
Deductions or Recoveries | (45,408) | (44,813) |
Balance at End of Period | 3,191 | 3,073 |
Allowance for doubtful accounts | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance at Beginning of Period | 35 | 9 |
Charged to Revenue, Cost or Expenses | (6) | 22 |
Deductions or Recoveries | (28) | 4 |
Balance at End of Period | $ 1 | $ 35 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets Valued on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value Measurements | ||
Cash and cash equivalents, fair value | $ 50,951 | $ 18,767 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Fair Value Measurements | ||
Transfers into level 2 from level 1 assets | $ 0 | $ 0 |
Transfers into level 1 from level 2 assets | $ 0 | $ 0 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Property and Equipment, Net | |||
Depreciation and amortization expense | $ 16,690 | $ 13,607 | $ 9,895 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Property and Equipment, Net | ||
Property and equipment, gross | $ 50,150 | $ 48,419 |
Less accumulated depreciation and amortization | (23,761) | (24,129) |
Property and equipment, net | 26,389 | 24,290 |
Machinery and equipment | ||
Property and Equipment, Net | ||
Property and equipment, gross | 10,150 | 10,660 |
Computer software (purchased and developed) | ||
Property and Equipment, Net | ||
Property and equipment, gross | 24,523 | 24,143 |
Vehicles | ||
Property and Equipment, Net | ||
Property and equipment, gross | 180 | 305 |
Leasehold improvements | ||
Property and Equipment, Net | ||
Property and equipment, gross | 2,751 | 2,457 |
Furniture and fixtures | ||
Property and Equipment, Net | ||
Property and equipment, gross | 540 | 513 |
Construction in process | ||
Property and Equipment, Net | ||
Property and equipment, gross | $ 12,006 | $ 10,341 |
Property and Equipment, Net -_2
Property and Equipment, Net - Summary of Estimated Useful Lives of Property and Equipment (Details) | Dec. 30, 2023 |
Machinery and equipment | Minimum | |
Property and Equipment, Net | |
Estimated useful life of property and equipment | 2 years |
Machinery and equipment | Maximum | |
Property and Equipment, Net | |
Estimated useful life of property and equipment | 5 years |
Computer software (purchased and developed) | Minimum | |
Property and Equipment, Net | |
Estimated useful life of property and equipment | 2 years |
Computer software (purchased and developed) | Maximum | |
Property and Equipment, Net | |
Estimated useful life of property and equipment | 5 years |
Computer equipment | Minimum | |
Property and Equipment, Net | |
Estimated useful life of property and equipment | 2 years |
Computer equipment | Maximum | |
Property and Equipment, Net | |
Estimated useful life of property and equipment | 5 years |
Vehicles | Minimum | |
Property and Equipment, Net | |
Estimated useful life of property and equipment | 3 years |
Vehicles | Maximum | |
Property and Equipment, Net | |
Estimated useful life of property and equipment | 5 years |
Leasehold improvements | Minimum | |
Property and Equipment, Net | |
Estimated useful life of property and equipment | 3 years |
Leasehold improvements | Maximum | |
Property and Equipment, Net | |
Estimated useful life of property and equipment | 5 years |
Furniture and fixtures | Minimum | |
Property and Equipment, Net | |
Estimated useful life of property and equipment | 3 years |
Furniture and fixtures | Maximum | |
Property and Equipment, Net | |
Estimated useful life of property and equipment | 7 years |
Borrowings (Details)
Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Jun. 17, 2022 | Jun. 16, 2022 | |
JP Morgan | Letter of Credit | ||||
Borrowings | ||||
Maximum borrowing capacity | $ 680 | $ 620 | ||
JP Morgan | Revolving Credit Facility | ||||
Borrowings | ||||
Current borrowing capacity | $ 75,000 | $ 30,000 | ||
Maximum borrowing capacity | 150,000 | $ 40,000 | ||
Increased aggregate borrowing capacity | $ 75,000 | |||
Revolving loan payable | 0 | |||
Credit facility trigger amount | $ 9,000 | |||
Consecutive business days below minimum excess availability | 3 days | |||
Number of consecutive days excess availability is above required amount | 45 days | |||
Minimum availability required under availability block | $ 7,500 | |||
Consecutive business days below minimum excess availability related to covenant testing trigger period | 3 days | |||
Minimum fixed charge ratio if less than minimum excess availability | 1 | |||
Number of consecutive days excess availability related to covenant testing trigger period | 45 days | |||
Event of default amount | $ 0 | |||
Limited security by foreign subsidiaries' capital stock percentage | 65% | |||
JP Morgan | Revolving Credit Facility | Minimum | ||||
Borrowings | ||||
Unused credit commitment fee (percent) | 0.20% | |||
JP Morgan | Revolving Credit Facility | Maximum | ||||
Borrowings | ||||
Unused credit commitment fee (percent) | 0.25% | |||
JP Morgan | Letter of Credit | ||||
Borrowings | ||||
Outstanding letters of credit amount | $ 0 | |||
Adjusted Secured Overnight Financing Rate (SOFR) | Revolving Credit Facility | Minimum | ||||
Borrowings | ||||
Applicable margin on the company's fixed charge coverage ratio (percent) | 1.50% | |||
Adjusted Secured Overnight Financing Rate (SOFR) | Revolving Credit Facility | Maximum | ||||
Borrowings | ||||
Applicable margin on the company's fixed charge coverage ratio (percent) | 2% | |||
Adjusted Secured Overnight Financing Rate (SOFR) | JP Morgan | Revolving Credit Facility | ||||
Borrowings | ||||
Interest rate (percent) | 7.45% | |||
Base Rate | JP Morgan | Revolving Credit Facility | ||||
Borrowings | ||||
Interest rate (percent) | 9% | |||
Prime rate | Revolving Credit Facility | Minimum | ||||
Borrowings | ||||
Applicable margin on the company's fixed charge coverage ratio (percent) | 0% | |||
Prime rate | Revolving Credit Facility | Maximum | ||||
Borrowings | ||||
Applicable margin on the company's fixed charge coverage ratio (percent) | 0.50% |
Stockholders' Equity and Shar_3
Stockholders' Equity and Share-Based Compensation - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Jan. 01, 2022 | Jul. 27, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for repurchase | $ 30,000 | ||
Payments for repurchase of common stock | $ 4,311 | $ 524 | |
Treasury Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average price per share of shares repurchased | $ 3.51 | ||
Stock repurchased during period, shares | 1,221 | ||
Payments for repurchase of common stock | $ 4,287 |
Stockholders' Equity and Shar_4
Stockholders' Equity and Share-Based Compensation - Employee Stock Purchase Plan (Details) - shares | 1 Months Ended | 12 Months Ended | |
May 31, 2021 | Dec. 30, 2023 | Dec. 31, 2022 | |
Stockholders' Equity and Share-Based Compensation | |||
Issuance of shares in connection with ESPP (in shares) | 114,000 | 107,000 | |
2021 Employee Stock Purchase Plan | |||
Stockholders' Equity and Share-Based Compensation | |||
Percentage lower of fair market value on offering date | 85% | ||
Offering period | 6 months | ||
Common stock reserved for issuance | 750,000 | ||
Expected life | 6 months | 6 months | |
2021 Employee Stock Purchase Plan | Minimum | |||
Stockholders' Equity and Share-Based Compensation | |||
Risk-free interest rate | 4.76% | 0.19% | |
Expected volatility | 44.50% | 50.80% | |
2021 Employee Stock Purchase Plan | Maximum | |||
Stockholders' Equity and Share-Based Compensation | |||
Risk-free interest rate | 5.47% | 2.52% | |
Expected volatility | 71.30% | 80.50% |
Stockholders' Equity and Shar_5
Stockholders' Equity and Share-Based Compensation - Share-Based Compensation Plan Information (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
May 31, 2016 | Dec. 30, 2023 | Dec. 31, 2022 | |
Stockholders' Equity and Share-Based Compensation | |||
Intrinsic value, options exercised | $ 5,421 | $ 4,085 | |
Unrecognized share-based compensation expense | $ 107 | ||
Weighted-average period of unrecognized compensation expense | 5 months 8 days | ||
2016 Equity Plan | |||
Stockholders' Equity and Share-Based Compensation | |||
Maximum number of shares authorized to issued under condition one (in shares) | 2,500 | ||
Shares available for future grants (in shares) | 3,894 | 1,538 | |
Period of share reserve increase | 9 years | ||
Share reserve (in shares) | 1,500 | ||
Expiration period | 10 years | ||
Option grant vesting period | 4 years | ||
Exercise price of option grants | 100% | ||
Employee Stock Option [Member] | |||
Stockholders' Equity and Share-Based Compensation | |||
Number of shares granted (in shares) | 0 | 0 |
Stockholders' Equity and Shar_6
Stockholders' Equity and Share-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Shares | ||
Options outstanding, beginning (in shares) | 3,463 | 4,765 |
Exercised (in shares) | (1,673) | (738) |
Cancelled: | ||
Forfeited (in shares) | (68) | (547) |
Expired (in shares) | (29) | (17) |
Options outstanding, ending (in shares) | 1,693 | 3,463 |
Vested and expected to vest (in shares) | 1,693 | 3,463 |
Options exercisable (in shares) | 1,642 | 2,903 |
Weighted Average Exercise Price | ||
Options outstanding, beginning (in dollars per share) | $ 2.25 | $ 2.17 |
Exercised (in dollars per share) | 1.58 | 1.74 |
Cancelled: | ||
Forfeited (in dollars per share) | 2.82 | 2.16 |
Expired (in dollars per share) | 7.40 | 4.45 |
Options outstanding, ending (in dollars per share) | 2.79 | 2.25 |
Vested and expected to vest (in dollars per share) | 2.79 | 2.25 |
Options exercisable (in dollars per share) | $ 2.71 | $ 2.10 |
Options outstanding, weighted average remaining contractual term | 5 years 10 days | 4 years 9 months 14 days |
Vested and expected to vest, weighted average remaining contractual term | 5 years 10 days | 4 years 9 months 14 days |
Exercisable, weighted average remaining contractual term | 4 years 11 months 23 days | 4 years 4 months 17 days |
Options outstanding, aggregate intrinsic value | $ 1,642 | $ 14,313 |
Vested and expected to vest, aggregate intrinsic value | 1,642 | 14,313 |
Options exercisable, aggregate intrinsic value | $ 1,631 | $ 12,333 |
Stockholders' Equity and Shar_7
Stockholders' Equity and Share-Based Compensation - Restricted Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Weighted-average period of unrecognized compensation expense | 5 months 8 days | |
Restricted stock units | ||
Shares | ||
Awarded (in shares) | 2,311 | 2,677 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Compensation costs | $ 11,663 | |
Unrecognized compensation expense | $ 17,593 | |
Weighted-average period of unrecognized compensation expense | 1 year 9 months 25 days | |
Restricted stock units | Minimum | ||
Weighted Average Exercise Price | ||
Awards outstanding, weighted average exercise price, beginning balance (in usd per share) | $ 5.30 | |
Awards outstanding, weighted average exercise price, ending balance (in usd per share) | $ 3.25 | $ 5.30 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Requisite service period | 1 year | |
Restricted stock units | Maximum | ||
Weighted Average Exercise Price | ||
Awards outstanding, weighted average exercise price, beginning balance (in usd per share) | $ 10.99 | |
Awards outstanding, weighted average exercise price, ending balance (in usd per share) | $ 6.86 | $ 10.99 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Requisite service period | 3 years | |
Time Based RSU | ||
Shares | ||
Awarded (in shares) | 1,517 | 1,634 |
Performance based RSU | ||
Shares | ||
Awarded (in shares) | 794 | 1,043 |
Stockholders' Equity and Shar_8
Stockholders' Equity and Share-Based Compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Stock options and Restricted stock units | |||
Stockholders' Equity and Share-Based Compensation | |||
Compensation costs | $ 11,675 | $ 11,296 | $ 15,685 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Net Loss Per Share | |||
Net (loss) income allocable to common shares | $ (8,223) | $ (951) | $ (10,339) |
Weighted-average common shares outstanding (basic) | 56,570 | 54,137 | 51,381 |
Weighted-average common shares outstanding (diluted) | 56,570 | 54,137 | 51,381 |
Basic net loss per share | $ (0.15) | $ (0.02) | $ (0.20) |
Diluted net loss per share | $ (0.14) | $ (0.02) | $ (0.20) |
Income Taxes - Components of Lo
Income Taxes - Components of Loss From Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Taxes | |||
Domestic operations | $ (8,888) | $ (965) | $ (10,460) |
Foreign operations | 810 | 646 | 472 |
Loss before income taxes | $ (8,078) | $ (319) | $ (9,988) |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Current: | |||
State tax | $ (87) | $ 395 | $ 68 |
Foreign tax | 232 | 237 | 283 |
Total current taxes | 145 | 632 | 351 |
Deferred: | |||
Federal tax | (737) | 307 | (6,628) |
State tax | (128) | (195) | (407) |
Total deferred taxes | (865) | 112 | (7,035) |
Valuation allowance | 865 | (112) | 7,035 |
Income tax provision | $ 145 | $ 632 | $ 351 |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Differences Between Income Tax Provision and Applied Federal Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Taxes | |||
Income tax at U.S. federal statutory rate | $ (1,643) | $ (67) | $ (2,098) |
Share-based compensation | 817 | 397 | (4,602) |
State income tax, net of federal tax effect | (170) | 158 | (269) |
Foreign tax | 173 | 194 | 243 |
Other | 103 | 62 | 42 |
Change in valuation allowance | 865 | (112) | 7,035 |
Income tax provision | $ 145 | $ 632 | $ 351 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Inventory and inventory related allowance | $ 1,605 | $ 2,440 |
Lease liabilities | 8,609 | 11,226 |
Share-based compensation | 4,024 | 4,337 |
Book over tax depreciation | 1,043 | |
Intangibles | 90 | 137 |
Sales and bad debt allowances | 1,130 | 1,099 |
Accrued compensation | 127 | 444 |
Net operating loss | 29,632 | 28,728 |
Other | 47 | 151 |
Total deferred tax assets | 46,307 | 48,562 |
Valuation allowance | (38,458) | (37,565) |
Net deferred tax assets | 7,849 | 10,997 |
Deferred tax liabilities: | ||
Right-of-use assets | 7,847 | 10,506 |
Tax over book depreciation | 489 | |
Other | 2 | 2 |
Total deferred tax liabilities | 7,849 | 10,997 |
Net deferred tax assets | $ 0 | $ 0 |
Income Taxes - Summary of State
Income Taxes - Summary of State NOL Carryforwards Expiration Year (Details) - State $ in Thousands | Dec. 30, 2023 USD ($) |
Income Taxes | |
Net operating loss carryforwards | $ 84,780 |
2029 | |
Income Taxes | |
Net operating loss carryforwards | 1,814 |
2030 | |
Income Taxes | |
Net operating loss carryforwards | 9,555 |
2031 | |
Income Taxes | |
Net operating loss carryforwards | 14,611 |
2032 | |
Income Taxes | |
Net operating loss carryforwards | 24,202 |
2033 | |
Income Taxes | |
Net operating loss carryforwards | 24,832 |
Thereafter | |
Income Taxes | |
Net operating loss carryforwards | $ 9,766 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Taxes | |||
Effective tax rate | (1.80%) | (198.00%) | (3.50%) |
Annual usage limitation | $ 135 | ||
Valuation allowance | 38,458 | $ 37,565 | |
Income taxes payable | (67) | ||
Income taxes receivable | (267) | ||
Federal | |||
Income Taxes | |||
Net operating loss carryforwards | 105,224 | ||
Federal | Whitney Automotive Group (WAG) | |||
Income Taxes | |||
Net operating loss carryforwards | 891 | ||
State | |||
Income Taxes | |||
Net operating loss carryforwards | 84,780 | ||
Other non-current liabilities | Foreign Tax Authority | |||
Income Taxes | |||
Income taxes payable | $ 1,124 | $ 990 |
Commitments and Contingencies -
Commitments and Contingencies - Quantitative Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Finance lease cost components | |||
Amortization of finance lease assets | $ 5,040 | $ 4,440 | $ 2,571 |
Interest on finance lease liabilities | 1,058 | 1,139 | 1,111 |
Total finance lease costs | 6,098 | 5,579 | 3,682 |
Operating lease components | |||
Operating lease costs | 4,488 | 4,107 | 2,441 |
Total lease cost | 10,586 | 9,686 | 6,123 |
Operating cash outflow from operating leases | 5,549 | 5,269 | 3,399 |
Operating cash outflow from financing leases | 1,058 | 1,139 | 1,111 |
Financing cash outflow from financing leases | $ 4,738 | $ 4,232 | $ 2,164 |
Weighted-average remaining lease term-finance leases (in years) | 5 years 7 months 6 days | 5 years 9 months 18 days | 7 years 2 months 12 days |
Weighted-average remaining lease term-operating leases (in years) | 4 years 7 months 6 days | 5 years 4 months 24 days | 6 years 3 months 18 days |
Weighted-average discount rate-finance leases | 6.13% | 5.72% | 6.06% |
Weighted-average discount rate-operating leases | 4.08% | 4.11% | 4.12% |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Commitments (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Finance Leases | ||
2024 | $ 5,126 | |
2025 | 4,103 | |
2026 | 3,223 | |
2027 | 1,885 | |
2028 | 1,206 | |
Thereafter | 4,634 | |
Total minimum payments required | 20,177 | |
Less portion representing interest | 3,542 | |
Present value of lease obligations | 16,635 | |
Less current portion of lease obligations | 4,308 | $ 4,753 |
Long-term portion of lease obligations | 12,327 | 15,916 |
Operating Leases | ||
2024 | 5,529 | |
2025 | 5,140 | |
2026 | 4,465 | |
2027 | 4,425 | |
2028 | 2,662 | |
Thereafter | 1,475 | |
Total minimum payments required | 23,696 | |
Less portion representing interest | 2,205 | |
Present value of lease obligations | 21,491 | |
Less current portion of lease obligations | 4,749 | 4,571 |
Long-term portion of lease obligations | 16,742 | $ 21,412 |
Finance and Operating Leases | ||
2023 | 10,655 | |
2024 | 9,243 | |
2025 | 7,688 | |
2026 | 6,310 | |
2027 | 3,868 | |
Thereafter | 6,109 | |
Total minimum payments required | 43,873 | |
Less portion representing interest | 5,747 | |
Present value of lease obligations | 38,126 | |
Less current portion of lease obligations | 9,057 | |
Long-term portion of lease obligations | $ 29,069 |
Employee Retirement Plan and _2
Employee Retirement Plan and Deferred Compensation Plan - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2010 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Employee Retirement Plan and Deferred Compensation Plan | ||||
Minimum service period required to cover under plan | 1 month | |||
Employer's match per dollar of participants salary | $ 0.50 | |||
Employer's match percentage of participants salary | 6% | |||
Contributions vest in annual installments | 3 years | |||
Discretionary contributions | $ 939,000 | $ 850,000 | $ 737,000 | |
Highly Compensated Employees | ||||
Employee Retirement Plan and Deferred Compensation Plan | ||||
Participant deferral of base salary, percentage (up to) | 90% | |||
Participant deferral of annual earned bonus, percentage (up to) | 100% | |||
Deferred compensation plan vested | 100% | |||
Employer contribution percentage of eligible participants eligible contribution | 50% | |||
Percentage of individual eligible contribution to Deferred Compensation Plan account | 2% | |||
Other non-current assets | Highly Compensated Employees | ||||
Employee Retirement Plan and Deferred Compensation Plan | ||||
Deferred compensation plan assets | 539,000 | 491,000 | ||
Other non-current liabilities | Highly Compensated Employees | ||||
Employee Retirement Plan and Deferred Compensation Plan | ||||
Deferred compensation plan associated liabilities | $ 914,000 | $ 697,000 |
Product Information - Summary o
Product Information - Summary of Segment Percentages (Details) - Sales Revenue, Product Line - Product Concentration Risk | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Product Information | |||
Concentration risk percentage | 100% | 100% | 100% |
House Brands, Replacement Parts | |||
Product Information | |||
Concentration risk percentage | 64% | 67% | 68% |
House Brands, Hard Parts | |||
Product Information | |||
Concentration risk percentage | 21% | 20% | 18% |
House Brands, Performance | |||
Product Information | |||
Concentration risk percentage | 1% | 1% | |
Branded, Replacement Parts | |||
Product Information | |||
Concentration risk percentage | 1% | 1% | 1% |
Branded, Hard Parts | |||
Product Information | |||
Concentration risk percentage | 9% | 7% | 7% |
Branded, Performance | |||
Product Information | |||
Concentration risk percentage | 5% | 4% | 5% |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (8,223) | $ (951) | $ (10,339) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |