Cover Page
Cover Page - shares | 6 Months Ended | |
Jul. 04, 2021 | Aug. 02, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 4, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-40345 | |
Entity Registrant Name | SkyWater Technology, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 37-1839853 | |
Entity Address, Address Line One | 2401 East 86th Street | |
Entity Address, City or Town | Bloomington | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55425 | |
City Area Code | 952 | |
Local Phone Number | 851-5200 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | SKYT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 39,059,743 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001819974 | |
Current Fiscal Year End Date | --01-02 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 04, 2021 | Jan. 03, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 64,603 | $ 7,436 |
Accounts receivable, net | 33,396 | 29,995 |
Inventories | 29,167 | 27,169 |
Prepaid expenses and other current assets | 3,597 | 11,972 |
Total current assets | 130,763 | 76,572 |
Property and equipment, net | 179,441 | 178,078 |
Intangible assets, net | 4,029 | 4,561 |
Other assets | 4,518 | 3,998 |
Total assets | 318,751 | 263,209 |
Current liabilities: | ||
Current portion of long-term debt | 1,006 | 2,772 |
Accounts payable | 15,880 | 16,792 |
Accrued expenses | 20,733 | 25,496 |
Income taxes payable | 539 | 1,710 |
Current portion of contingent consideration | 3,900 | 8,904 |
Deferred revenue - current | 24,919 | 30,653 |
Total current liabilities | 66,977 | 86,327 |
Long-term liabilities: | ||
Long-term debt, less current portion and unamortized debt issuance costs | 65,348 | 69,828 |
Contingent consideration, less current portion | 0 | 1,996 |
Long-term incentive plan | 3,648 | 3,185 |
Deferred revenue - long-term | 84,438 | 95,399 |
Deferred income tax liability, net | 2,866 | 8,058 |
Total long-term liabilities | 156,300 | 178,466 |
Total liabilities | 223,277 | 264,793 |
Commitments and contingencies | ||
Shareholders’ equity (deficit): | ||
Preferred stock, $0.01 par value per share (80,000,000 and zero shares authorized; zero issued and outstanding) | 0 | 0 |
Common stock, $0.01 par value per share (200,000,000 and zero shares authorized; 39,059,743 and zero shares issued and outstanding) | 391 | 0 |
Additional paid-in capital | 110,082 | 0 |
Common units (zero and 5,000,000 units authorized; zero and 3,057,344 units issued; zero and 2,107,452 outstanding) | 0 | 3,767 |
Accumulated deficit | (13,573) | (3,783) |
Total shareholders’ equity (deficit), SkyWater Technology, Inc. | 96,900 | (16) |
Non-controlling interests | (1,426) | (1,568) |
Total shareholders’ equity (deficit) | 95,474 | (1,584) |
Total liabilities and shareholders’ equity | 318,751 | 263,209 |
Class A Units | ||
Shareholders’ equity (deficit): | ||
Preferred units | 0 | 0 |
Total shareholders’ equity (deficit) | 0 | 0 |
Class B Units | ||
Shareholders’ equity (deficit): | ||
Preferred units | 0 | 0 |
Total shareholders’ equity (deficit) | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 04, 2021 | Jan. 03, 2021 |
Preferred stock, par value per share (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 80,000,000 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value per share (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 0 |
Common stock, shares issued (in shares) | 39,059,743 | 0 |
Common stock, shares outstanding (in shares) | 39,059,743 | 0 |
Common units authorized (in shares) | 0 | 5,000,000 |
Common units issued (in shares) | 0 | 3,057,344 |
Common units outstanding (in shares) | 0 | 2,107,452 |
Class A Units | ||
Preferred units authorized (in shares) | 0 | 2,000,000 |
Preferred units issued (in shares) | 0 | 0 |
Preferred units outstanding (in shares) | 0 | 0 |
Class B Units | ||
Preferred units authorized (in shares) | 0 | 18,000,000 |
Preferred units issued (in shares) | 0 | 18,000,000 |
Preferred units outstanding (in shares) | 0 | 18,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Net sales | $ 41,189 | $ 30,759 | $ 89,290 | $ 67,663 |
Cost of sales | 39,377 | 25,297 | 78,312 | 55,777 |
Gross profit | 1,812 | 5,462 | 10,978 | 11,886 |
Research and development | 3,339 | 786 | 5,266 | 1,448 |
Selling, general and administrative expenses | 15,415 | 6,921 | 24,018 | 12,554 |
Change in fair value of contingent consideration | (942) | 712 | (886) | 1,553 |
Operating loss | (16,000) | (2,957) | (17,420) | (3,669) |
Other income (expense): | ||||
Paycheck Protection Program loan forgiveness | 6,453 | 0 | 6,453 | 0 |
Change in fair value of warrant liability | 0 | (99) | 0 | (240) |
Interest expense | (912) | (1,322) | (1,970) | (2,784) |
Total other expense | 5,541 | (1,421) | 4,483 | (3,024) |
Loss before income taxes | (10,459) | (4,378) | (12,937) | (6,693) |
Income tax (benefit) expense | (4,237) | 915 | (4,662) | (28) |
Net loss | (6,222) | (5,293) | (8,275) | (6,665) |
Less: net income attributable to non-controlling interests | 757 | 0 | 1,515 | 0 |
Net loss attributable to SkyWater Technology, Inc. | $ (6,979) | $ (5,293) | $ (9,790) | $ (6,665) |
Net loss per unit, basic (in USD per share) | $ (0.20) | $ (0.54) | ||
Net loss per unit, diluted (in USD per share) | $ (0.20) | $ (0.54) | ||
Weighted average units used in computing net loss per unit, basic (in shares) | 34,707,758 | 18,884,051 | ||
Weighted average units used in computing net loss per unit, diluted (in shares) | 34,707,758 | 18,884,051 | ||
Class B Units | ||||
Other income (expense): | ||||
Net loss per unit, basic (in USD per share) | $ (0.29) | $ (0.37) | ||
Net loss per unit, diluted (in USD per share) | $ (0.29) | $ (0.37) | ||
Weighted average units used in computing net loss per unit, basic (in shares) | 18,000,000 | 18,000,000 | ||
Weighted average units used in computing net loss per unit, diluted (in shares) | 18,000,000 | 18,000,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Total Shareholders’ Equity (Deficit), SkyWater Technology, Inc. | Non-controlling Interests | Class A Units | Class B Units | Common Units |
Beginning balance (in shares) at Dec. 29, 2019 | 0 | 0 | 0 | 18,000,000 | 0 | |||||
Beginning balance at Dec. 29, 2019 | $ 24,167 | $ 0 | $ 0 | $ 0 | $ 16,834 | $ 24,167 | $ 0 | $ 0 | $ 0 | $ 7,333 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Unit-based compensation | 488 | 488 | $ 488 | |||||||
Net income (loss) | (6,665) | (6,665) | (6,665) | |||||||
Ending balance (in shares) at Jun. 28, 2020 | 0 | 0 | 0 | 18,000,000 | 0 | |||||
Ending balance at Jun. 28, 2020 | 17,990 | $ 0 | $ 0 | 0 | 10,169 | 17,990 | 0 | $ 0 | $ 0 | $ 7,821 |
Beginning balance (in shares) at Mar. 29, 2020 | 0 | 0 | 0 | 18,000,000 | 0 | |||||
Beginning balance at Mar. 29, 2020 | 23,283 | $ 0 | $ 0 | 0 | 15,462 | 23,283 | 0 | $ 0 | $ 0 | $ 7,821 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | (5,293) | (5,293) | (5,293) | |||||||
Ending balance (in shares) at Jun. 28, 2020 | 0 | 0 | 0 | 18,000,000 | 0 | |||||
Ending balance at Jun. 28, 2020 | 17,990 | $ 0 | $ 0 | 0 | 10,169 | 17,990 | 0 | $ 0 | $ 0 | $ 7,821 |
Beginning balance (in shares) at Jan. 03, 2021 | 0 | 0 | 0 | 18,000,000 | 2,108,000 | |||||
Beginning balance at Jan. 03, 2021 | (1,584) | $ 0 | $ 0 | 0 | (3,783) | (16) | (1,568) | $ 0 | $ 0 | $ 3,767 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Unit-based compensation | 5 | 5 | $ 5 | |||||||
Other (in shares) | (2,000) | |||||||||
Corporate conversion (in shares) | 31,056,000 | 18,000,000 | 2,106,000 | |||||||
Corporate conversion | 0 | $ 311 | 3,461 | $ 3,772 | ||||||
Issuance of common stock sold in initial public offering (in shares) | 8,004,000 | |||||||||
Issuance of common stock sold in initial public offering, net of issuance costs | 100,162 | $ 80 | 100,082 | 100,162 | ||||||
Stock-based compensation | 6,539 | 6,539 | 6,539 | |||||||
Distribution to VIE member | (1,373) | (1,373) | ||||||||
Net income (loss) | (8,275) | (9,790) | (9,790) | 1,515 | ||||||
Ending balance (in shares) at Jul. 04, 2021 | 0 | 39,060,000 | 0 | 0 | 0 | |||||
Ending balance at Jul. 04, 2021 | 95,474 | $ 0 | $ 391 | 110,082 | (13,573) | 96,900 | (1,426) | $ 0 | $ 0 | $ 0 |
Beginning balance (in shares) at Apr. 04, 2021 | 0 | 0 | 0 | 18,000,000 | 2,106,000 | |||||
Beginning balance at Apr. 04, 2021 | (4,613) | $ 0 | $ 0 | 0 | (6,594) | (2,822) | (1,791) | $ 0 | $ 0 | $ 3,772 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Corporate conversion (in shares) | 31,056,000 | 18,000,000 | 2,106,000 | |||||||
Corporate conversion | 0 | $ 311 | 3,461 | $ 3,772 | ||||||
Issuance of common stock sold in initial public offering (in shares) | 8,004,000 | |||||||||
Issuance of common stock sold in initial public offering, net of issuance costs | 100,162 | $ 80 | 100,082 | 100,162 | ||||||
Stock-based compensation | 6,539 | 6,539 | 6,539 | |||||||
Distribution to VIE member | (392) | (392) | ||||||||
Net income (loss) | (6,222) | (6,979) | (6,979) | 757 | ||||||
Ending balance (in shares) at Jul. 04, 2021 | 0 | 39,060,000 | 0 | 0 | 0 | |||||
Ending balance at Jul. 04, 2021 | $ 95,474 | $ 0 | $ 391 | $ 110,082 | $ (13,573) | $ 96,900 | $ (1,426) | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 04, 2021 | Jun. 28, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (8,275) | $ (6,665) |
Adjustments to reconcile net loss to net cash flows (used in) provided by operating activities: | ||
Depreciation and amortization | 13,336 | 8,639 |
Gain on Paycheck Protection Program loan forgiveness | (6,453) | 0 |
Foundry services obligation | 0 | (3,732) |
Gain on sale of property and equipment | 0 | (1,117) |
Amortization of debt issuance costs included in interest expense | 320 | 781 |
Long-term incentive and stock-based compensation | 7,008 | 865 |
Change in fair value of warrant liability | 0 | 240 |
Change in fair value of contingent consideration | (886) | 1,553 |
Cash paid for contingent consideration in excess of initial valuation | (6,114) | 0 |
Deferred income taxes | (5,191) | (1,190) |
Non-cash revenue related to customer equipment | (2,481) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,401) | 43,854 |
Inventories | (1,998) | (1,778) |
Prepaid expenses and other assets | 5,672 | (5,390) |
Accounts payable | (610) | (529) |
Accrued expenses | (3,872) | 9,841 |
Deferred revenue | (16,695) | 56,777 |
Income tax payable and receivable | (1,171) | 886 |
Net cash (used in) provided by operating activities | (30,811) | 103,035 |
Cash flows from investing activities: | ||
Purchase of software and licenses | (357) | 0 |
Proceeds from sale of property and equipment | 0 | 1,650 |
Purchases of property and equipment | (12,898) | (38,409) |
Net cash used in investing activities | (13,255) | (36,759) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock pursuant to the initial public offering, net of underwriting discounts and commissions | 104,212 | 0 |
Cash paid for offering costs | (1,205) | 0 |
Proceeds from Paycheck Protection Program loan | 0 | 6,453 |
Repayment of term loan | 0 | (2,574) |
Net repayment on line of credit | 0 | (9,759) |
Net proceeds from Revolver | 382 | 0 |
Repayment of Financing | (495) | 0 |
Cash paid for capital leases | (288) | 0 |
Cash paid for debt issuance costs | 0 | (100) |
Cash paid for contingent consideration | 0 | (5,253) |
Distributions to VIE member | (1,373) | 0 |
Net cash provided by (used in) financing activities | 101,233 | (11,233) |
Net change in cash and cash equivalents | 57,167 | 55,043 |
Cash and cash equivalents - beginning of period | 7,436 | 4,605 |
Cash and cash equivalents - end of period | 64,603 | 59,648 |
Supplemental disclosure of cash flow information: | ||
Interest | 1,635 | 2,144 |
Income taxes | 1,701 | 90 |
Noncash investing and financing activity: | ||
Capital expenditures incurred, not yet paid | 11,444 | 13,808 |
Common stock issuance costs incurred, not yet paid | 662 | 0 |
Equipment acquired through capital lease obligations | $ 2,603 | $ 0 |
Nature of Business
Nature of Business | 6 Months Ended |
Jul. 04, 2021 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business SkyWater Technology, Inc., together with its consolidated subsidiaries (collectively, “we”, “us”, “our”, or “SkyWater”), is a U.S. investor-owned, independent, pure-play technology foundry that offers advanced semiconductor development and manufacturing services from our fabrication facility, or fab, in Minnesota and advanced packaging services from our Florida facility. In our technology as a service model, we leverage a strong foundation of proprietary technology to co-develop process technology intellectual property with our customers that enables disruptive concepts through our Advanced Technology Services for diverse microelectronics (integrated circuits, or ICs) and related micro- and nanotechnology applications. In addition to these differentiated technology development services, we support customers with volume production of ICs for high-growth markets through our Wafer Services. Emerging Growth Company Status We are an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012. Corporate Conversion and Initial Public Offering Effective April 14, 2021, we converted into a Delaware corporation pursuant to a statutory conversion and changed our name to SkyWater Technology, Inc. Previously, we operated as a Delaware limited liability company under the name CMI Acquisition, LLC. As a result of the corporate conversion, the holders of the different series of units of CMI Acquisition, LLC, became holders of common stock and options to purchase common stock of SkyWater Technology, Inc. The number of shares of common stock that holders of Class B preferred units and common units were entitled to receive in the corporate conversion was determined in accordance with a plan of conversion, which was based upon the terms of the CMI Acquisition, LLC operating agreement, and varied depending on which class of Units a holder owned. See Note 8 – Shareholders’ Equity . On April 23, 2021, we completed our initial public offering (“IPO”) and issued 8,004,000 shares of common stock, including the underwriter’s exercise of their right to purchase additional shares, at an initial offering price to the public of $14.00 per share. We received net proceeds from the IPO of approximately $100,162 after deducting underwriting discounts and commissions of $7,844 and offering costs of approximately $4,050. Shares of common stock began trading on the Nasdaq Stock Market on April 21, 2021 under the symbol “SKYT”. The shares were registered under the Securities Act on a registration statement on Form S-1, which was declared effective by the Securities and Exchange Commission (“SEC”) on April 20, 2021. |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 6 Months Ended |
Jul. 04, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of ConsolidationThe condensed consolidated financial statements as of July 4, 2021, and for the three and six months ended July 4, 2021 and June 28, 2020, are presented in thousands of U.S. dollars (except share and per share information), are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all financial information and disclosures required by U.S. GAAP for complete financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the related notes thereto as of January 3, 2021. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of our financial position as of July 4, 2021, our results of operations and shareholders' equity for the three and six months ended July 4, 2021 and June 28, 2020, and our cash flows for the six months ended July 4, 2021 and June 28, 2020. The results of operations for the three and six months ended July 4, 2021 are not necessarily indicative of the results of operations to be expected for the year ending January 2, 2022, or for any other interim period, or for any other future year. Principles of Consolidation Our condensed consolidated financial statements include our assets, liabilities, revenues, and expenses, as well as the assets, liabilities, revenues, and expenses of subsidiaries in which we have a controlling financial interest, SkyWater Technology Foundry, Inc. (“SkyWater Technology Foundry”), SkyWater Federal, LLC (“SkyWater Federal”), and SkyWater Florida, Inc. (“SkyWater Florida”), and variable interest entities (“VIE”) for which we are the primary beneficiary. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated statements of operations, shareholders’ equity and cash flows are for the three and six months ended July 4, 2021 and June 28, 2020. The three and six months ended July 4, 2021 and June 28, 2020 each consisted of 13 and 26 weeks, respectively. Use of Estimates The preparation of our condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Management evaluates these estimates and judgments on an ongoing basis and bases its estimates on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. Actual results could differ from those estimates. COVID-19 In March 2020, the World Health Organization declared the novel coronavirus 2019 (“COVID-19”) outbreak a global pandemic. The COVID-19 pandemic has spread throughout the United States and the world, with the continued potential for significant impact. Our business has been adversely affected by the effects of the COVID-19 pandemic. We implemented modifications to employee travel and employee work locations, as required in some cases by federal, state and local authorities, which has had a negative impact on employee productivity. Because we have manufacturing operations, we may be vulnerable to an outbreak of a new coronavirus or other contagious diseases. Although we have not experienced a shutdown of our manufacturing facilities, the effects of such an outbreak could include the temporary shutdown of our operations or the operations of our customers, disruptions or restrictions on the ability to ship our products to our customers as well as disruptions that may affect our suppliers. Any disruption of our ability to manufacture or distribute our products, the ability of our suppliers to deliver key components on a timely basis, or our customers’ ability to order and take delivery of our products could have a material adverse effect on our sales and operating results. The future broader implications of the pandemic remain uncertain and will depend on certain future developments, including the duration, scope and severity of the pandemic and the availability and effectiveness of vaccines. Net Loss Per Share We calculate basic and diluted net loss per common share in conformity with the two-class method required for companies with participating securities. Our previously outstanding Class B preferred units met the criteria of a participating security as they contained the rights to an 8% “preferred return” on the deemed original equity value of each such Class B preferred unit (accrued daily since the date of issuance of each such Class B preferred unit). Under the two-class method, income or losses are allocated between the common shareholders and the Class B preferred unitholders. The two-class method includes an allocation formula that determines income or loss per unit for each class according to preferred dividends and undistributed earnings or losses for the period. Our reported net loss for the three and six months ended July 4, 2021 is increased by the amount allocated to the Class B preferred units to arrive at the loss allocated to common shareholders for purposes of calculating net loss per share. For the three and six months ended June 28, 2020, we did not apply the two-class method since only Class B preferred units were outstanding and were thus the lowest level of equity subordination. As a result of our April 2021 corporate conversion and IPO, the number of common shares used to compute net loss per common share for the three and six months ended July 4, 2021 were retrospectively adjusted to reflect the conversion akin to a split-like situation. Our historical balance sheets reflect the number of common units outstanding prior to the corporate conversion and no adjustment was made. Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of shares and potentially dilutive securities outstanding for the year determined using the treasury-stock method. Because we reported a net loss for the three and six months ended July 4, 2021 and June 28, 2020, the number of shares used to calculate diluted net loss per common share is the same as the number of units used to calculate basic net loss per common share because the potentially dilutive shares would have been anti-dilutive if included in the calculation. At July 4, 2021, there were restricted stock units and stock options totaling 3,966,000 excluded from the computation of diluted weighted-average because their inclusion would have been anti-dilutive. There were no restricted stock units and stock options outstanding at June 28, 2020. The following table sets forth the computation of basic and diluted net loss per common share for the three and six months ended July 4, 2021: Three Months Ended Six Months Ended (in thousands, except per share data) Numerator: Net loss attributable to SkyWater Technology, Inc. $ (6,979) $ (9,790) Undistributed preferred return to Class B preferred unitholders (39) (398) Net loss attributable to common shareholders $ (7,018) $ (10,188) Denominator: Weighted-average common shares outstanding, basic and diluted (1) 34,708 18,884 Net loss per common share, basic and diluted $ (0.20) $ (0.54) __________________ (1) The weighted-average common shares outstanding for the three and six months ended July 4, 2021 reflects the retrospective adjustment for the April 14, 2021 corporate conversion of 2,105,936 common units into 3,060,343 shares of common stock. The April 14, 2021 corporate conversion of 18,000,000 Class B preferred units into 27,995,400 shares of common stock is reflected prospectively on the date of conversion for the three and six months ended July 4, 2021. The following table sets forth the computation of basic and diluted net loss per unit attributable to Class B preferred unitholders for the three and six months ended June 28, 2020. There were no common units outstanding during the period. Three Months Ended Six Months Ended (in thousands, except per unit data) Numerator: Net loss attributable to SkyWater Technology, Inc. $ (5,293) $ (6,665) Denominator: Weighted-average Class B preferred units outstanding, basic and diluted 18,000 18,000 Net loss per unit attributable to Class B preferred unitholders, basic and diluted $ (0.29) $ (0.37) Center for NeoVation Through our subsidiary, SkyWater Florida, we entered into several agreements on January 25, 2021 with the government of Osceola County, Florida (“Osceola”) and ICAMR, Inc., a Florida non-profit corporation (“BRIDG”), to operate the Center for NeoVation (“CfN”), a semiconductor research and development and manufacturing facility. These agreements included a technology and economic development agreement (the “TED Agreement”), a lease agreement (the “CfN Lease”) and a semiconductor line operation agreement (the “LOA”). Under the TED Agreement and the CfN Lease, we agreed to operate the CfN, including certain semiconductor manufacturing equipment, and an advanced water treatment facility currently owned by Osceola for a period of at least 23 years for a lease payment of $1.00 per year. During the period of the CfN Lease, we are responsible for taxes, utilities, insurance, maintenance and operation of those assets. We may terminate the TED Agreement and CfN Lease with 18 months’ notice. In the event we terminate the agreements, we would be required to continue to operate the center until we find a replacement operator or the 18 months expire and may be required to make a payment of up to $15,000 to Osceola. We are accounting for the CfN Lease as a lease. Given the nominal minimum lease payments required under the lease ($23.00), no assets were initially recognized on our condensed consolidated balance sheet. As we perform under the agreements, expenses we incur and any revenue we are able to generate from the operations of CfN will be included in our condensed consolidated statements of operations as they are incurred or earned. If we are able to reach and maintain full capacity in the CfN for a minimum period of 20 years, Osceola will convey the land, buildings and equipment to us for no consideration at the end of the CfN Lease. At such time that we believe the conveyance of the land, buildings and equipment is reasonably assured, we will record those assets on our condensed consolidated balance sheet at fair value and record a corresponding deferred gain. We will subsequently depreciate the assets over their remaining economic life and recognize an equivalent amount of income from the amortization of the deferred gain. Operating Segment Information Operating segments are identified as components of an enterprise about which separate financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. We view our operations and manage our business as one operating segment. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 6 Months Ended |
Jul. 04, 2021 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies Our audited consolidated financial statements include an additional discussion of the significant accounting policies and estimates used in the preparation of our consolidated financial statements. There were no material changes to our significant accounting policies and estimates during the three and six months ended July 4, 2021. Contingent Consideration Royalties of $2,758 and $2,714 were paid during the three months ended July 4, 2021 and June 28, 2020, respectively, and $6,114 and $5,253 during the six months ended July 4, 2021 and June 28, 2020, respectively. During the three months ended July 4, 2021 and June 28, 2020, we recorded royalty expense of $(942) and $712, respectively, to reflect the change in fair value of the contingent consideration obligation in our condensed consolidated statements of operations. During the six months ended July 4, 2021 and June 28, 2020, we recorded royalty expense of $(886) and $1,553, respectively, to reflect the change in fair value of the contingent consideration obligation in our condensed consolidated statements of operations. Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-2, Leases (“Topic 842”). The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. The standard is effective for public business entities for fiscal years beginning after December 15, 2018. As an emerging growth company, we intend to adopt the new standard on January 3, 2022 for our year ending January 1, 2023. However if we lose our emerging growth company status prior to our intended adoption date, we may be required to adopt the new standard in the year we lose such status. We do not expect adopting Topic 842 will have a material impact on our condensed consolidated financial statements. In June 2016, the FASB issued a new credit loss accounting standard, ASU 2016-13, Current Expected Credit Losses (“Topic 326”). This guidance replaces the current allowance for loan and lease loss accounting standard and focuses on estimation of expected losses over the life of the loans instead of relying on incurred losses. The standard is effective for certain public business entities for fiscal years beginning after December 15, 2019. As an emerging growth company, we intend to adopt the new standard on January 2, 2023 for our year ending December 31, 2023. However if we lose our emerging growth |
Revenue
Revenue | 6 Months Ended |
Jul. 04, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue BRIDG In connection with the TED Agreement and CfN Lease as discussed in Note 2 – Basis of Presentation and Principles of Consolidation – Center for NeoVation , we executed the LOA pursuant to which we agreed to provide engineering and test wafer services as requested by BRIDG based on our standard hourly and activity-based rates, which we are accounting for as revenue over time as we perform. In addition, we agreed to provide BRIDG access to the cleanrooms in the facilities that are subject to the TED Agreement and the CfN Lease for an access fee of approximately $14,000. We are accounting for the access fee as a stand-ready obligation with revenue recognized ratably over 38 months, the life of BRIDG’s third-party contracts for which we are a subcontractor. Disaggregated Revenue The following table discloses revenue by service type and the timing of recognition of revenue for transfer of goods and services to customers (point-in-time or over time): Three Months Ended July 4, 2021 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Total Revenue Wafer Services $ 14,312 $ — $ — $ 14,312 Advanced Technology Services T&M — 10,692 — 10,692 Fixed Price — 15,018 — 15,018 Other — — 1,167 1,167 Total Advanced Technology Services — 25,710 1,167 26,877 Total revenue $ 14,312 $ 25,710 $ 1,167 $ 41,189 Three Months Ended June 28, 2020 Topic 606 Revenue Point-in-Time Over Time Revenue recognized from foundry services obligation Total Revenue Wafer Services $ 10,885 $ — $ 11 $ 10,896 Advanced Technology Services T&M — 12,548 — 12,548 Fixed Price — 7,315 — 7,315 Total Advanced Technology Services — 19,863 — 19,863 Total revenue $ 10,885 $ 19,863 $ 11 $ 30,759 Six Months Ended July 4, 2021 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Total Revenue Wafer Services $ 24,331 $ — $ — $ 24,331 Advanced Technology Services T&M — 21,484 — 21,484 Fixed Price — 41,141 — 41,141 Other — — 2,334 2,334 Total Advanced Technology Services — 62,625 2,334 64,959 Total revenue $ 24,331 $ 62,625 $ 2,334 $ 89,290 Six Months Ended June 28, 2020 Topic 606 Revenue Point-in-Time Over Time Revenue recognized from foundry services obligation Total Revenue Wafer Services $ 23,815 $ — $ 399 $ 24,214 Advanced Technology Services T&M — 31,954 — 31,954 Fixed Price — 11,495 — 11,495 Other — — — — Total Advanced Technology Services — 43,449 — 43,449 Total revenue $ 23,815 $ 43,449 $ 399 $ 67,663 The following table discloses revenue by country as determined based on customer address: Three Months Ended Six Months Ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 United States $ 36,612 $ 26,327 $ 80,233 $ 57,797 Canada 1,547 2,048 3,156 5,084 All others 3,030 2,384 5,901 4,782 $ 41,189 $ 30,759 $ 89,290 $ 67,663 Deferred Contract Costs We recognized amortization of deferred contract costs in our condensed consolidated statements of operations totaling $426 and $0 for the three months ended July 4, 2021 and June 28, 2020, respectively, and $977 and $0 for the six months ended July 4, 2021 and June 28, 2020, respectively. Contract Assets Contract assets are $15,969 and $8,147 at July 4, 2021 and January 3, 2021, respectively, and are included in accounts receivable, net in our condensed consolidated balance sheets. Contract Liabilities The contract liabilities and other significant components of deferred revenue are as follows: July 4, 2021 January 3, 2021 Contract Deferred Total Contract Deferred Total Current $ 20,252 $ 4,667 $ 24,919 $ 25,986 $ 4,667 $ 30,653 Long-term 70,827 13,611 84,438 79,455 15,944 95,399 Total $ 91,079 $ 18,278 $ 109,357 $ 105,441 $ 20,611 $ 126,052 The decrease in contract liabilities from January 3, 2021 to July 4, 2021 was primarily the result of completion of specific performance obligations for our customers. Approximately 20% of our total contract liabilities at January 3, 2021 were recognized in revenue in the first six months of 2021. Remaining Performance Obligations As of July 4, 2021, we had approximately $85,019 of transaction price allocated to remaining performance obligations that are unsatisfied (or partially satisfied) on contracts with an original expected duration of one year or more, which are primarily related to Advanced Technology Services contracts. We expect to recognize those remaining performance obligations as follows: Within one year $ 15,196 From one to two years 12,695 From two to three years 12,695 After three years 44,433 Total $ 85,019 We do not disclose the value of remaining performance obligations for contracts with an original expected duration of one year or less. Further, we do not adjust the promised amount of consideration for the effects of a significant financing component if we expect, at contract inception, that the period between when we transfer a promised good or service to a customer and when the customer pays for that good or service will be one year or less. |
Balance Sheet Information
Balance Sheet Information | 6 Months Ended |
Jul. 04, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Information | Balance Sheet Information Certain significant amounts included in our condensed consolidated balance sheets consist of the following: Accounts receivable, net: July 4, 2021 January 3, 2021 Trade accounts receivable $ 17,197 $ 21,357 Unbilled revenue (contract assets) 15,969 8,147 Note receivable — 230 Employee note receivable 223 222 Other receivables 7 39 Total accounts receivable, net $ 33,396 $ 29,995 On December 31, 2020, we entered into a note receivable with a key employee for $222. The note may be repaid any time prior to its maturity date of March 31, 2022 and bears interest at 6%. Inventories: July 4, 2021 January 3, 2021 Raw materials $ 2,585 $ 1,463 Work-in-process 20,874 19,719 Supplies and spare parts 5,708 5,987 Total inventories—current 29,167 27,169 Supplies and spare parts classified as other assets 2,350 1,949 Total inventories $ 31,517 $ 29,118 Prepaid expenses and other current assets: July 4, 2021 January 3, 2021 Prepaid expenses $ 1,839 $ 2,761 Equipment purchased for customers (1) — 5,343 Deferred contract costs 1,724 1,647 Deferred offering costs — 2,183 Other 34 38 Total prepaid assets and other current assets $ 3,597 $ 11,972 __________________ (1) We acquired equipment for a customer that we installed and calibrated in our facility. Prior to the customer obtaining ownership and control of the equipment, we recorded costs incurred to date within prepaid expenses and other current assets. Property and equipment, net: July 4, 2021 January 3, 2021 Land $ 5,396 $ 5,396 Buildings and improvements 86,092 85,197 Machinery and equipment 135,824 124,130 Fixed assets not yet in service 23,823 22,602 Total property and equipment, at cost 251,135 237,325 Less: Accumulated depreciation (71,694) (59,247) Total property and equipment, net $ 179,441 $ 178,078 Depreciation expense was $6,400 and $4,130 for the three months ended July 4, 2021 and June 28, 2020, respectively, and $12,447 and $8,261 for the six months ended July 4, 2021 and June 28, 2020, respectively. Intangible assets, net: Intangible assets consist of purchased software and license costs and a customer list from our acquisition of the business in 2017. Intangible assets are summarized as follows: July 4, 2021 January 3, 2021 Customer list $ 1,500 $ 1,500 Software and licenses 5,766 5,408 Total intangible assets, at cost 7,266 6,908 Less: Accumulated amortization (3,237) (2,347) Total intangible assets, net $ 4,029 $ 4,561 For the three months ended July 4, 2021 and June 28, 2020, amortization of the customer list intangible asset charged to operations was $88 and amortization of software and licenses was $366 and $99, respectively. For the six months ended July 4, 2021 and June 28, 2020, amortization of the customer list intangible asset charged to operations was $176 and amortization of software and licenses was $713 and $202, respectively. Remaining estimated aggregate annual amortization expense is as follows for the years ending: Amortization Remainder of 2021 $ 842 2022 1,140 2023 800 2024 445 2025 445 Thereafter 357 Total $ 4,029 Other assets: July 4, 2021 January 3, 2021 Supplies and spare parts $ 2,350 $ 1,949 Deferred contract costs 1,699 2,049 Other assets 469 — Total other assets $ 4,518 $ 3,998 Accrued expenses: July 4, 2021 January 3, 2021 Accrued compensation $ 5,624 $ 6,315 Accrued commissions 1,586 5,183 Accrued fixed asset expenditures 2,468 6,337 Accrued royalties 1,525 2,145 Accrued customer payable 1,455 783 Other accrued expenses 8,075 4,733 Total accrued expenses $ 20,733 $ 25,496 |
Debt
Debt | 6 Months Ended |
Jul. 04, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The components of debt outstanding are as follows: July 4, 2021 January 3, 2021 Revolver $ 32,686 $ 32,303 Financing (by VIE) 38,343 38,839 Paycheck Protection Program loan — 6,453 Unamortized debt issuance costs (1) (4,675) (4,995) Total long-term debt, including current maturities 66,354 72,600 Less: Current portion of long-term debt (1,006) (2,772) Long-term debt, excluding current portion and unamortized debt issuance costs $ 65,348 $ 69,828 __________________ (1) Unamortized debt issuance costs as of July 4, 2021 included $1,383 for the Revolver (as defined below) and $3,292 for the Financing (as defined below). Unamortized debt issuance costs as of January 3, 2021 included $1,537 for the Revolver and $3,458 for the Financing (by VIE). Revolver The outstanding balance of our amended and restated revolving credit agreement with Wells Fargo Bank, National Association (the “Revolver”) was $32,686 as of July 4, 2021 at an interest rate of 3%. Our remaining availability under the Revolver was $28,900 as of July 4, 2021. Financing On September 30, 2020, the VIE which we consolidate entered into a loan agreement for $39,000 (the “Financing”) at a fixed interest rate of 3.44%. The outstanding balance of the Financing was $38,343 as of July 4, 2021. Paycheck Protection Program Loan On April 18, 2020, we received proceeds of $6,453 pursuant to a loan from TCF Bank under the Paycheck Protection Program (the “PPP” Loan). Under the terms of the loan, recipients can apply for and be granted forgiveness for all or a portion of the loan granted under the program. During the three months ended July 4, 2021, the PPP Loan was fully forgiven and $6,453 was recorded as other income in the condensed consolidated statement of operations. Covenants As of July 4, 2021, we were not in compliance with the fixed charge coverage ratio and the leverage ratio related to the Revolver. On August 1, 2021, we entered into an amendment to the Revolver that, effective as of August 1, 2021, amended the Revolver to eliminate the requirement for us to comply with those financial covenants as of July 4, 2021. Under the Revolver, as amended, we were in full compliance with the Revolver covenant requirements as of July 4, 2021. Our VIE was in compliance with the financial covenants related to the Financing. Maturities As of July 4, 2021, the Revolver is due in December 2025. The Financing is repayable in equal monthly installments of $194 over 10 years, with the balance payable at the maturity date of October 6, 2030. Future principal payments of our Revolver and consolidated VIE’s Financing, excluding unamortized debt issuance costs, are as follows: Remainder of 2021 $ 497 2022 1,024 2023 1,060 2024 1,094 2025 33,820 Thereafter 33,534 Total $ 71,029 Historically, we have addressed our liquidity needs (including funds required to make scheduled principal and interest payments, refinance debt and fund working capital, and planned capital expenditures) with operating cash flows, borrowings under credit facilities, and proceeds from the term loans. Our ability to execute our operating strategy is dependent on our ability to continue to access capital through our Revolver, public markets and other sources of financing and if we were unable to obtain financing on reasonable terms, this may impact our ability to execute our operating strategy. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 04, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe effective tax rates for the three and six months ended July 4, 2021 and June 28, 2020 differ from the statutory tax rates due to state income taxes, permanent tax differences, and changes in our deferred tax asset valuation allowance. The tax rate in any quarter can be affected positively or negatively by adjustments that are required to be reported in the specific quarter of resolution. The effective income tax rate for the three and six months ended July 4, 2021 was 40.5% and 36.0%, compared to (20.9)% and 0.4% for the three and six months ended June 28, 2020. The income tax benefit rate applied to our pre-tax loss was higher for the three and six months ended July 4, 2021 than our statutory tax rate of 21% primarily due to the gain on the PPP Loan forgiveness, which is exempt from federal income taxation. For the three and six months ended June 28, 2020, the effective income tax rate applied to our pre-tax loss was lower than our statutory tax rate of 21% due to a deferred tax asset valuation allowance, partially offset by excess tax benefits related to stock-based compensation expense. Management regularly evaluates the future realization of deferred tax assets and provides a valuation allowance, if considered necessary, based on such evaluation. As part of the evaluation, management has evaluated taxable income in carryback years, future reversals of taxable temporary differences, feasible tax planning strategies, and future expectations of income. Based upon this analysis, a valuation allowance of $1,401 was recorded as of July 4, 2021 to reduce our net deferred tax assets to the amount that is more likely than not to be realized. The valuation allowance at January 3, 2021 was $1,609. No liability has been recorded for uncertain tax positions. We would accrue, if applicable, income tax related interest and penalties in income tax expense in our condensed consolidated statement of operations. There were no interest and penalties incurred during the three and six months ended July 4, 2021 and June 28, 2020. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jul. 04, 2021 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Classes of Equity Units Until our corporate conversion on April 14, 2021, we had three classes of limited liability interests, designated as Class A preferred units, Class B preferred units, and common units (collectively, the “Unit” or “Units”). There were 2,000,000 Class A preferred units authorized specifically for issuance upon exercise of warrants, of which none were issued and outstanding at January 3, 2021. There were 18,000,000 Class B preferred units authorized, of which 18,000,000 were issued and outstanding at January 3, 2021. There were 5,000,000 common units authorized, of which 3,057,344 were issued as of January 3, 2021 and 2,107,452 were outstanding as of January 3, 2021. Class A preferred units and common units were non-voting classes, and Class B preferred units are a voting class. Conversion On April 14, 2021, we completed a corporate conversion. Pursuant to the certificate of incorporation effected in connection with the corporate conversion, our authorized capital stock consists of 200,000,000 shares of voting common stock, par value $0.01 per share, and 80,000,000 shares of preferred stock, par value $0.01 per share. As of July 4, 2021, giving effect to the corporate conversion and our IPO, 39,059,743 shares of common stock were issued and outstanding. No shares of our preferred stock were outstanding. As discussed in Note 1 – Nature of Business , on April 21, 2021, our common stock began trading on the Nasdaq Stock Market under the symbol “SKYT”. Upon the corporate conversion, all Units were converted into an aggregate of 31,055,743 shares of our common stock. Each Class B preferred unit and common unit was converted into a number of shares of common stock determined by dividing (1) the amount that would have been distributed in respect of each such Unit in accordance with CMI Acquisition, LLC’s operating agreement if all assets of CMI Acquisition, LLC had been sold for a cash amount equal to the pre-offering value of CMI Acquisition, LLC, as such value is determined by CMI Acquisition, LLC’s board of managers based on the fair value of each share of common stock (net of any underwriting discounts, fees and expenses), by (2) such per share fair value. The amounts that would have been distributed for this purpose in respect of Class B preferred units and common units were determined by reference to the terms of CMI Acquisition, LLC’s operating agreement, with different values applicable to each series of Units. Before any distributions were made on common units, distributions were made on each Class B preferred unit in an amount equal to the sum of an 8% “preferred return” on the deemed original equity value of each such Class B preferred unit (accrued daily since the date of issuance of each such Class B preferred unit) plus the amount of such original equity value. Only after those distributions were made, the common units, together with the Class B preferred units, shared in the remainder of the distribution on a pro rata basis. For purposes of the corporate conversion, pre-offering “per share fair value” was determined taking into account an assumed initial public offering price of common stock. Accordingly, the outstanding Units were converted as follows: • holders of Class B preferred units received an aggregate of 27,995,400 shares of common stock; and • holders of common units received an aggregate of shares 3,060,343 of common stock. Initial Public Offering On April 23, 2021, we completed our initial public offering (“IPO”) and issued 8,004,000 shares of common stock, including the underwriter’s exercise of their right to purchase additional shares, at an initial offering price to the public of $14.00 per share. We received net proceeds from the IPO of approximately $100,162 after deducting underwriting discounts and commissions of $7,844 and offering costs of approximately $4,050. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 04, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation 2021 Equity Incentive Plan In connection with our IPO, we adopted the 2021 Equity Incentive Plan (the “2021 Equity Plan”). The 2021 Equity Plan became effective upon the consummation of the IPO and no further awards will be issued under the previous Employee Unit Option Plan. No awards remained outstanding from the Employee Unit Option Plan as of July 4, 2021 and at the corporate conversion date. Under the 2021 Equity Plan, 5,000,000 shares of common stock are available for issuance to eligible individuals in the form of options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, unrestricted stock, dividend equivalent rights, other equity-based awards and cash bonus awards. The share reserve of the 2021 Plan will be increased effective the first business day of each calendar year commencing in 2022 by an amount equal to the least of: (i) 150,000 shares of common stock; (ii) three percent (3%) of the shares of common stock outstanding on the final day of the immediately preceding calendar year; and (iii) such smaller number of shares of common stock as determined by the compensation committee. Stock Options On April 21, 2021, we granted 342,783 stock options which vest in full on the first anniversary of the grant date and expire 15 months from the grant date; and granted 744,374 stock options which vest ratably on each of the first, second, third, and fourth anniversaries of the grant date and expire 10 years from the grant date. Share-based compensation expense related to stock option awards was $439 and $0 for the three months ended July 4, 2021 and June 28, 2020, respectively, and $444 and $488 for the six months ended July 4, 2021 and June 28, 2020, respectively. Actual forfeitures are recognized as they occur. The fair value of each stock option is estimated on the date of grant using a Black-Scholes option-pricing model that uses assumptions noted in the following table. The risk-free interest rate used in the option valuation model was based on yields available on the grant dates for U.S. Treasury Strips with maturity consistent with the expected life assumption. The expected term of the option represents the period of time that options granted are expected to be outstanding and is based on the SEC Simplified Method (midpoint of average vesting time and contractual term). Expected volatility is based on an average of the historical, daily volatility of a peer group of similar companies over a period consistent with the expected life assumption ending on the grant date. We assumed no dividend yield in the valuation of the options granted as we have never declared or paid dividends on our common stock and currently intend to retain earnings for use in operations. Six Months Ended Expected volatility: 46.0% Expected term (in years): 1.13 - 6.25 Risk-free interest rate: 0.09% - 1.19% The following table summarizes our stock option activity during the six months ended July 4, 2021: Number of Stock Options Weighted Average Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life Balance outstanding as of January 3, 2021 — $ — Granted 1,087 $ 14.00 Exercised — $ — Forfeited or canceled (54) $ 14.00 Balance outstanding as of July 4, 2021 1,033 $ 14.00 $ 13,003 7.1 years Balance vested and exercisable as of July 4, 2021 — $ — $ — 0.0 years The weighted average grant-date fair value of options granted in the six months ended July 4, 2021 was $5.29. As of July 4, 2021, total unrecognized compensation cost related to stock options was $5,057 and is expected to be recognized over a weighted average period of approximately 3.4 years. Restricted Common Stock On November 1, 2020, we granted 4,672 restricted common units to two directors. Upon the corporate conversion, such restricted common units were converted into 6,788 shares of restricted common stock which continue to vest over a one-year period. Restricted Common Stock Units On April 21, 2021, we granted 440,836 restricted common stock units to eligible employees and directors which vest in full on the first anniversary of the grant date and granted 204,910 restricted common stock units which vest ratably on each of the first, second and third anniversaries of the grant date. The common stock relating to these restricted common stock units is issued upon vesting. The grantee has no rights as a common stockholder until the common stock related to the restricted common stock units have been issued. On December 18, 2020, we granted restricted unit units to acquire up to 1,602,588 common units to certain key employees. Upon the corporate conversion, such restricted unit units were converted into 2,328,880 shares of restricted common stock units which continue to vest in equal amounts over a three-year period, but only in the event we complete an IPO of our stock or experience a change of control event. The common stock relating to these restricted common stock units is issued upon vesting. The grantee has no rights as a common stockholder until the common stock related to the restricted common stock units have been issued. With our IPO completed on April 23, 2021, these restricted common stock units began vesting in accordance with their other terms. Share-based compensation expense related to restricted common stock unit awards was $6,100 and $0 for the three months ended July 4, 2021 and June 28, 2020, respectively, and $6,100 and $0 for the six months ended July 4, 2021 and June 28, 2020, respectively. Actual forfeitures are recognized as they occur. As of July 4, 2021, total unrecognized compensation cost related to restricted common stock units was $11,360 and is expected to be recognized over a weighted average period of approximately 1.5 years. The estimated fair value of restricted common stock units is based on the grant date closing price of our common stock for time-based vesting awards. The following table summarizes our restricted common stock unit activity during the six months ended July 4, 2021: Number of Restricted Common Stock Units Weighted Average Grant Date Fair Value Per Share Balance outstanding as of January 3, 2021 2,329 $ 3.87 Granted 646 $ 14.00 Vested — $ — Forfeited or canceled (42) $ 14.00 Balance outstanding as of July 4, 2021 2,933 $ 5.95 2021 Employee Stock Purchase Plan In connection with our IPO, we also adopted the 2021 Employee Stock Purchase Plan (the “2021 ESPP”). A maximum of 700,000 shares of our common stock has been reserved for issuance under the 2021 ESPP. Under the 2021 ESPP, eligible employees may purchase our common stock through payroll deductions at a discount not to exceed 15% of the lower of the fair market values of our common stock as of the beginning or end of each offering period, which may range from 6 to 27 months. Payroll deductions are limited to 15% of the employee’s eligible compensation and a maximum of 2,500 shares of our common stock may be purchased by an employee each offering period. As of July 4, 2021, the initial offering period had not commenced. Share-Based Compensation Expense Allocation Share-based compensation expense was allocated in the consolidated statements of operations as follows: Three Months Ended Six Months Ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Cost of sales $ 704 $ — $ 704 $ — Research and development 1,480 — 1,480 — Selling, general and administrative expenses 4,355 — 4,360 488 $ 6,539 $ — $ 6,544 $ 488 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 04, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The FASB defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To determine fair value, we use a fair value hierarchy categorized into three levels based on inputs used. Generally, the three levels are as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities; • Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 inputs are used in the valuation of our contingent consideration obligation. The change in level 3 assets measured at fair value on a recurring basis is summarized as follows: Contingent Balance at January 3, 2021 $ 10,900 Payments (6,114) Change in fair value (886) Balance at July 4, 2021 $ 3,900 The change in fair value is reflected in our condensed consolidated statements of operations. The fair value of our contingent consideration liability at July 4, 2021 and January 3, 2021 was determined using forecasted receipts of projected future revenues of Advanced Technology Services. The royalty is paid out quarterly through 2021. The forecasted future cash flows were discounted reflecting the risk in estimating future revenues. We expect total future cash payments to be between $3,900 and $4,000. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The carrying values of accounts receivable, accounts payable, accrued liabilities, and other financial working capital items approximate fair values at July 4, 2021 and January 3, 2021 due to the short maturity of these items. The carrying values of our borrowings under our Revolver and Financing approximate their fair values due to the frequency of the floating interest rate resets on these borrowings. The fair value of the Revolver and Financing were determined based on inputs that are classified as Level 2 in the fair value hierarchy. Our non-financial assets such as property and equipment and intangible assets are recorded at fair value upon acquisition and are remeasured at fair value only if an impairment charge is recognized. As of July 4, 2021 and January 3, 2021, we did not have any assets or liabilities measured at fair value on a non-recurring basis. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 04, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Foundry Services Agreement Under a Foundry Services Agreement (“FSA”) which expired in June 2020, we were required to provide semiconductor wafers to our main customer over a 40-month period, beginning March 1, 2017, at contractual rates. As part of the FSA, the customer guaranteed certain levels of purchase orders for wafers. Sales of Wafer Services to this customer were $10,932 and $23,477 for the three and six months ended June 28, 2020, respectively. Litigation From time to time, we are involved in legal proceedings and subject to claims arising in the ordinary course of our business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the resolution of these ordinary-course matters will not have a material adverse effect on our business, operating results, financial condition or cash flows. Even if any particular litigation is resolved in a manner that is favorable to our interests, such litigation can have a negative impact on us because of defense and settlement costs, diversion of management resources from our business and other factors. Capital Expenditures |
Major Customers and Concentrati
Major Customers and Concentration Risk | 6 Months Ended |
Jul. 04, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Major Customers and Concentration Risk | Major Customers and Concentration Risk The following customers accounted for 10% or more of sales for the three and six months ended July 4, 2021 and June 28, 2020: Three Months Ended Six Months Ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Customer A 19 % 12 % 28 % * Customer B 28 % 34 % 23 % 34 % Customer C 15 % * 11 % * Customer D * 19 % * 24 % 62 % 65 % 62 % 58 % __________________ * Represents less than 10% of net sales. We had four major customers that accounted for 26%, 19%, 10% and 10% of outstanding trade accounts receivable as of July 4, 2021 and four major customers that accounted for 30%, 20%, 19% and 18% of outstanding trade accounts receivable as of January 3, 2021. The loss of a major customer could adversely affect our operating results and financial condition. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jul. 04, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Professional Services Oxbow Industries, LLC (“Oxbow”), our principal owner, provided management and financial consulting services to us for an annual management fee not to exceed $700. We incurred management fees to Oxbow of $55 and $160 of during the three months ended July 4, 2021 and June 28, 2020, respectively, and $215 and $320 for the six months ended July 4, 2021 and June 28, 2020, respectively, which have been expensed and included in general and administrative expenses in our condensed consolidated statements of operations. Members of our board of directors provided legal and professional services to us. We incurred fees of $1 and $46 for the three months ended July 4, 2021 and June 28, 2020, and $117 and $108 for the six months ended July 4, 2021 and June 28, 2020, which have been expensed and included in general and administrative expenses in our condensed consolidated statements of operations. Sale-Leaseback Transaction On September 29, 2020, we entered into an agreement to sell the land and building representing our primary operating location in Bloomington, Minnesota to an entity (“Oxbow Realty”) controlled by our principal owner. We subsequently entered into an agreement to lease the land and building from Oxbow Realty for initial payments of $394 per month over 20 years. The monthly payments are subject to a 2% increase each year during the term of the lease. Future minimum lease commitments to Oxbow Realty as of July 4, 2021 were as follows (such amounts are eliminated from our condensed consolidated financial statements due to the consolidation of Oxbow Realty, see Note 14 – Variable Interest Entities ): Remainder of 2021 $ 2,378 2022 4,836 2023 4,932 2024 5,031 2025 5,132 Thereafter 89,350 Total lease payments 111,659 Less: imputed interest (84,476) Total $ 27,183 |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jul. 04, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities Oxbow Realty was established for the purpose of holding real estate and facilitating real estate transactions. This included facilitating the purchase of our land and building with proceeds from a bank loan and managing the leaseback of the land and building to us. We determined that Oxbow Realty meets the definition of a VIE under Topic 810, Consolidation , because it lacks sufficient equity to finance its activities. We concluded that we are the primary beneficiary of Oxbow Realty as we have the power to direct operation and maintenance decisions during the lease term, which would most significantly affect the VIE’s economic performance. As the primary beneficiary, we consolidate the assets, liabilities and results of operations of Oxbow Realty, eliminate any transactions between us and Oxbow Realty, and record a non-controlling interest for the economic interest in Oxbow Realty not owned by us because the owners of our common stock do not legally have rights or obligations to those profits or losses. In addition, the assets of Oxbow Realty can only be used to settle its liabilities, and the creditors of Oxbow Realty do not have recourse to the general credit of SkyWater. The following table shows the carrying amounts of assets and liabilities of Oxbow Realty that are consolidated by us as of July 4, 2021 and January 3, 2021. The assets and liabilities are presented prior to consolidation, and thus a portion of these assets and liabilities are eliminated in consolidation. July 4, January 3, Cash and cash equivalents $ 495 $ 860 Prepaid expenses — 99 Finance receivable 37,301 36,930 Other assets 100 — Total assets $37,896 $37,889 Accounts payable $ 720 $ 672 Accrued expenses 319 9 Debt 38,283 38,776 Total liabilities $39,322 $39,457 The following table shows the revenue and expenses of Oxbow Realty that are consolidated by us for the three and six months ended July 4, 2021, which we began consolidating on September 29, 2020. We have included these amounts, net of eliminations, in the corresponding tables in the notes to our condensed consolidated financial statements. Three Months Ended Six Months Ended Revenue $ 1,159 $ 2,504 General and administrative expenses 66 318 Interest expense 336 671 Total expenses 402 989 Net income $ 757 $ 1,515 |
Basis Of Presentation And Pri_2
Basis Of Presentation And Principles Of Consolidation (Policies) | 6 Months Ended |
Jul. 04, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation Our condensed consolidated financial statements include our assets, liabilities, revenues, and expenses, as well as the assets, liabilities, revenues, and expenses of subsidiaries in which we have a controlling financial interest, SkyWater Technology Foundry, Inc. (“SkyWater Technology Foundry”), SkyWater Federal, LLC (“SkyWater Federal”), and SkyWater Florida, Inc. (“SkyWater Florida”), and variable interest entities (“VIE”) for which we are the primary beneficiary. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated statements of operations, shareholders’ equity and cash flows are for the three and six months ended July 4, 2021 and June 28, 2020. The three and six months ended July 4, 2021 and June 28, 2020 each consisted of 13 and 26 weeks, respectively. |
Use of Estimates | Use of Estimates The preparation of our condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Management evaluates these estimates and judgments on an ongoing basis and bases its estimates on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. Actual results could differ from those estimates. |
COVID-19 | COVID-19 In March 2020, the World Health Organization declared the novel coronavirus 2019 (“COVID-19”) outbreak a global pandemic. The COVID-19 pandemic has spread throughout the United States and the world, with the continued potential for significant impact. Our business has been adversely affected by the effects of the COVID-19 pandemic. We implemented modifications to employee travel and employee work locations, as required in some cases by federal, state and local authorities, which has had a negative impact on employee productivity. Because we have manufacturing operations, we may be vulnerable to an outbreak of a new coronavirus or other contagious diseases. Although we have not experienced a shutdown of our manufacturing facilities, the effects of such an outbreak could include the temporary shutdown of our operations or the operations of our customers, disruptions or restrictions on the ability to ship our products to our customers as well as disruptions that may affect our suppliers. Any disruption of our ability to manufacture or distribute our products, the ability of our suppliers to deliver key components on a timely basis, or our customers’ ability to order and take delivery of our products could have a material adverse effect on our sales and operating results. The future broader implications of the pandemic remain uncertain and will depend on certain future developments, including the duration, scope and severity of the pandemic and the availability and effectiveness of vaccines. |
Net Loss Per Share | Net Loss Per Share We calculate basic and diluted net loss per common share in conformity with the two-class method required for companies with participating securities. Our previously outstanding Class B preferred units met the criteria of a participating security as they contained the rights to an 8% “preferred return” on the deemed original equity value of each such Class B preferred unit (accrued daily since the date of issuance of each such Class B preferred unit). Under the two-class method, income or losses are allocated between the common shareholders and the Class B preferred unitholders. The two-class method includes an allocation formula that determines income or loss per unit for each class according to preferred dividends and undistributed earnings or losses for the period. Our reported net loss for the three and six months ended July 4, 2021 is increased by the amount allocated to the Class B preferred units to arrive at the loss allocated to common shareholders for purposes of calculating net loss per share. For the three and six months ended June 28, 2020, we did not apply the two-class method since only Class B preferred units were outstanding and were thus the lowest level of equity subordination. As a result of our April 2021 corporate conversion and IPO, the number of common shares used to compute net loss per common share for the three and six months ended July 4, 2021 were retrospectively adjusted to reflect the conversion akin to a split-like situation. Our historical balance sheets reflect the number of common units outstanding prior to the corporate conversion and no adjustment was made. Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of shares and potentially dilutive securities outstanding for the year determined using the treasury-stock method. Because we reported a net loss for the three and six months ended July 4, 2021 and June 28, 2020, the number of shares used to calculate diluted net loss per common share is the same as the number of units used to calculate basic net loss per common share because the potentially dilutive shares would have been anti-dilutive if included in the calculation. At July 4, 2021, there were restricted stock units and stock options totaling 3,966,000 excluded from the computation of diluted weighted-average because their inclusion would have been anti-dilutive. There were no restricted stock units and stock options outstanding at June 28, 2020. |
Center for NeoVation | Center for NeoVation Through our subsidiary, SkyWater Florida, we entered into several agreements on January 25, 2021 with the government of Osceola County, Florida (“Osceola”) and ICAMR, Inc., a Florida non-profit corporation (“BRIDG”), to operate the Center for NeoVation (“CfN”), a semiconductor research and development and manufacturing facility. These agreements included a technology and economic development agreement (the “TED Agreement”), a lease agreement (the “CfN Lease”) and a semiconductor line operation agreement (the “LOA”). Under the TED Agreement and the CfN Lease, we agreed to operate the CfN, including certain semiconductor manufacturing equipment, and an advanced water treatment facility currently owned by Osceola for a period of at least 23 years for a lease payment of $1.00 per year. During the period of the CfN Lease, we are responsible for taxes, utilities, insurance, maintenance and operation of those assets. We may terminate the TED Agreement and CfN Lease with 18 months’ notice. In the event we terminate the agreements, we would be required to continue to operate the center until we find a replacement operator or the 18 months expire and may be required to make a payment of up to $15,000 to Osceola. We are accounting for the CfN Lease as a lease. Given the nominal minimum lease payments required under the lease ($23.00), no assets were initially recognized on our condensed consolidated balance sheet. As we perform under the agreements, expenses we incur and any revenue we are able to generate from the operations of CfN will be included in our condensed consolidated statements of operations as they are incurred or earned. If we are able to reach and maintain full capacity in the CfN for a minimum period of 20 years, Osceola will convey the land, buildings and equipment to us for no consideration at the end of the CfN Lease. At such time that we believe the conveyance of the land, buildings and equipment is reasonably assured, we will record those assets on our condensed consolidated balance sheet at fair value and record a corresponding deferred gain. We will subsequently depreciate the assets over their remaining economic life and recognize an equivalent amount of income from the amortization of the deferred gain. |
Operating Segment Information | Operating Segment Information Operating segments are identified as components of an enterprise about which separate financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. We view our operations and manage our business as one operating segment. |
Contingent Consideration | Contingent ConsiderationRoyalties of $2,758 and $2,714 were paid during the three months ended July 4, 2021 and June 28, 2020, respectively, and $6,114 and $5,253 during the six months ended July 4, 2021 and June 28, 2020, respectively. During the three months ended July 4, 2021 and June 28, 2020, we recorded royalty expense of $(942) and $712, respectively, to reflect the change in fair value of the contingent consideration obligation in our condensed consolidated statements of operations. During the six months ended July 4, 2021 and June 28, 2020, we recorded royalty expense of $(886) and $1,553, respectively, to reflect the change in fair value of the contingent consideration obligation in our condensed consolidated statements of operations. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-2, Leases (“Topic 842”). The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. The standard is effective for public business entities for fiscal years beginning after December 15, 2018. As an emerging growth company, we intend to adopt the new standard on January 3, 2022 for our year ending January 1, 2023. However if we lose our emerging growth company status prior to our intended adoption date, we may be required to adopt the new standard in the year we lose such status. We do not expect adopting Topic 842 will have a material impact on our condensed consolidated financial statements. In June 2016, the FASB issued a new credit loss accounting standard, ASU 2016-13, Current Expected Credit Losses (“Topic 326”). This guidance replaces the current allowance for loan and lease loss accounting standard and focuses on estimation of expected losses over the life of the loans instead of relying on incurred losses. The standard is effective for certain public business entities for fiscal years beginning after December 15, 2019. As an emerging growth company, we intend to adopt the new standard on January 2, 2023 for our year ending December 31, 2023. However if we lose our emerging growth |
Basis of Presentation and Pri_3
Basis of Presentation and Principles of Consolidation (Tables) | 6 Months Ended |
Jul. 04, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Common Share | The following table sets forth the computation of basic and diluted net loss per common share for the three and six months ended July 4, 2021: Three Months Ended Six Months Ended (in thousands, except per share data) Numerator: Net loss attributable to SkyWater Technology, Inc. $ (6,979) $ (9,790) Undistributed preferred return to Class B preferred unitholders (39) (398) Net loss attributable to common shareholders $ (7,018) $ (10,188) Denominator: Weighted-average common shares outstanding, basic and diluted (1) 34,708 18,884 Net loss per common share, basic and diluted $ (0.20) $ (0.54) __________________ (1) The weighted-average common shares outstanding for the three and six months ended July 4, 2021 reflects the retrospective adjustment for the April 14, 2021 corporate conversion of 2,105,936 common units into 3,060,343 shares of common stock. The April 14, 2021 corporate conversion of 18,000,000 Class B preferred units into 27,995,400 shares of common stock is reflected prospectively on the date of conversion for the three and six months ended July 4, 2021. The following table sets forth the computation of basic and diluted net loss per unit attributable to Class B preferred unitholders for the three and six months ended June 28, 2020. There were no common units outstanding during the period. Three Months Ended Six Months Ended (in thousands, except per unit data) Numerator: Net loss attributable to SkyWater Technology, Inc. $ (5,293) $ (6,665) Denominator: Weighted-average Class B preferred units outstanding, basic and diluted 18,000 18,000 Net loss per unit attributable to Class B preferred unitholders, basic and diluted $ (0.29) $ (0.37) |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jul. 04, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenue | The following table discloses revenue by service type and the timing of recognition of revenue for transfer of goods and services to customers (point-in-time or over time): Three Months Ended July 4, 2021 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Total Revenue Wafer Services $ 14,312 $ — $ — $ 14,312 Advanced Technology Services T&M — 10,692 — 10,692 Fixed Price — 15,018 — 15,018 Other — — 1,167 1,167 Total Advanced Technology Services — 25,710 1,167 26,877 Total revenue $ 14,312 $ 25,710 $ 1,167 $ 41,189 Three Months Ended June 28, 2020 Topic 606 Revenue Point-in-Time Over Time Revenue recognized from foundry services obligation Total Revenue Wafer Services $ 10,885 $ — $ 11 $ 10,896 Advanced Technology Services T&M — 12,548 — 12,548 Fixed Price — 7,315 — 7,315 Total Advanced Technology Services — 19,863 — 19,863 Total revenue $ 10,885 $ 19,863 $ 11 $ 30,759 Six Months Ended July 4, 2021 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Total Revenue Wafer Services $ 24,331 $ — $ — $ 24,331 Advanced Technology Services T&M — 21,484 — 21,484 Fixed Price — 41,141 — 41,141 Other — — 2,334 2,334 Total Advanced Technology Services — 62,625 2,334 64,959 Total revenue $ 24,331 $ 62,625 $ 2,334 $ 89,290 Six Months Ended June 28, 2020 Topic 606 Revenue Point-in-Time Over Time Revenue recognized from foundry services obligation Total Revenue Wafer Services $ 23,815 $ — $ 399 $ 24,214 Advanced Technology Services T&M — 31,954 — 31,954 Fixed Price — 11,495 — 11,495 Other — — — — Total Advanced Technology Services — 43,449 — 43,449 Total revenue $ 23,815 $ 43,449 $ 399 $ 67,663 |
Schedule of Revenue by Country | The following table discloses revenue by country as determined based on customer address: Three Months Ended Six Months Ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 United States $ 36,612 $ 26,327 $ 80,233 $ 57,797 Canada 1,547 2,048 3,156 5,084 All others 3,030 2,384 5,901 4,782 $ 41,189 $ 30,759 $ 89,290 $ 67,663 |
Schedule of Deferred Revenue | The contract liabilities and other significant components of deferred revenue are as follows: July 4, 2021 January 3, 2021 Contract Deferred Total Contract Deferred Total Current $ 20,252 $ 4,667 $ 24,919 $ 25,986 $ 4,667 $ 30,653 Long-term 70,827 13,611 84,438 79,455 15,944 95,399 Total $ 91,079 $ 18,278 $ 109,357 $ 105,441 $ 20,611 $ 126,052 |
Schedule of Performance Obligations | We expect to recognize those remaining performance obligations as follows: Within one year $ 15,196 From one to two years 12,695 From two to three years 12,695 After three years 44,433 Total $ 85,019 |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 6 Months Ended |
Jul. 04, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable, net: July 4, 2021 January 3, 2021 Trade accounts receivable $ 17,197 $ 21,357 Unbilled revenue (contract assets) 15,969 8,147 Note receivable — 230 Employee note receivable 223 222 Other receivables 7 39 Total accounts receivable, net $ 33,396 $ 29,995 |
Schedule of Inventories | Inventories: July 4, 2021 January 3, 2021 Raw materials $ 2,585 $ 1,463 Work-in-process 20,874 19,719 Supplies and spare parts 5,708 5,987 Total inventories—current 29,167 27,169 Supplies and spare parts classified as other assets 2,350 1,949 Total inventories $ 31,517 $ 29,118 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets: July 4, 2021 January 3, 2021 Prepaid expenses $ 1,839 $ 2,761 Equipment purchased for customers (1) — 5,343 Deferred contract costs 1,724 1,647 Deferred offering costs — 2,183 Other 34 38 Total prepaid assets and other current assets $ 3,597 $ 11,972 __________________ (1) We acquired equipment for a customer that we installed and calibrated in our facility. Prior to the customer obtaining ownership and control of the equipment, we recorded costs incurred to date within prepaid expenses and other current assets. |
Schedule of Property and Equipment, Net | Property and equipment, net: July 4, 2021 January 3, 2021 Land $ 5,396 $ 5,396 Buildings and improvements 86,092 85,197 Machinery and equipment 135,824 124,130 Fixed assets not yet in service 23,823 22,602 Total property and equipment, at cost 251,135 237,325 Less: Accumulated depreciation (71,694) (59,247) Total property and equipment, net $ 179,441 $ 178,078 |
Schedule of Intangible Assets | Intangible assets are summarized as follows: July 4, 2021 January 3, 2021 Customer list $ 1,500 $ 1,500 Software and licenses 5,766 5,408 Total intangible assets, at cost 7,266 6,908 Less: Accumulated amortization (3,237) (2,347) Total intangible assets, net $ 4,029 $ 4,561 |
Schedule of Remaining Estimated Aggregate Annual Amortization Expense | Remaining estimated aggregate annual amortization expense is as follows for the years ending: Amortization Remainder of 2021 $ 842 2022 1,140 2023 800 2024 445 2025 445 Thereafter 357 Total $ 4,029 |
Schedule of Other Assets | Other assets: July 4, 2021 January 3, 2021 Supplies and spare parts $ 2,350 $ 1,949 Deferred contract costs 1,699 2,049 Other assets 469 — Total other assets $ 4,518 $ 3,998 |
Schedule of Accrued Expenses | Accrued expenses: July 4, 2021 January 3, 2021 Accrued compensation $ 5,624 $ 6,315 Accrued commissions 1,586 5,183 Accrued fixed asset expenditures 2,468 6,337 Accrued royalties 1,525 2,145 Accrued customer payable 1,455 783 Other accrued expenses 8,075 4,733 Total accrued expenses $ 20,733 $ 25,496 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jul. 04, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Outstanding | The components of debt outstanding are as follows: July 4, 2021 January 3, 2021 Revolver $ 32,686 $ 32,303 Financing (by VIE) 38,343 38,839 Paycheck Protection Program loan — 6,453 Unamortized debt issuance costs (1) (4,675) (4,995) Total long-term debt, including current maturities 66,354 72,600 Less: Current portion of long-term debt (1,006) (2,772) Long-term debt, excluding current portion and unamortized debt issuance costs $ 65,348 $ 69,828 __________________ (1) Unamortized debt issuance costs as of July 4, 2021 included $1,383 for the Revolver (as defined below) and $3,292 for the Financing (as defined below). Unamortized debt issuance costs as of January 3, 2021 included $1,537 for the Revolver and $3,458 for the Financing (by VIE). |
Summary of Future Principal Payments | Future principal payments of our Revolver and consolidated VIE’s Financing, excluding unamortized debt issuance costs, are as follows: Remainder of 2021 $ 497 2022 1,024 2023 1,060 2024 1,094 2025 33,820 Thereafter 33,534 Total $ 71,029 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jul. 04, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Black-Scholes Option Pricing Model Assumptions | Six Months Ended Expected volatility: 46.0% Expected term (in years): 1.13 - 6.25 Risk-free interest rate: 0.09% - 1.19% |
Schedule of Stock Option Activity | The following table summarizes our stock option activity during the six months ended July 4, 2021: Number of Stock Options Weighted Average Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life Balance outstanding as of January 3, 2021 — $ — Granted 1,087 $ 14.00 Exercised — $ — Forfeited or canceled (54) $ 14.00 Balance outstanding as of July 4, 2021 1,033 $ 14.00 $ 13,003 7.1 years Balance vested and exercisable as of July 4, 2021 — $ — $ — 0.0 years |
Schedule of Restricted Common Stock Unit Activity | The following table summarizes our restricted common stock unit activity during the six months ended July 4, 2021: Number of Restricted Common Stock Units Weighted Average Grant Date Fair Value Per Share Balance outstanding as of January 3, 2021 2,329 $ 3.87 Granted 646 $ 14.00 Vested — $ — Forfeited or canceled (42) $ 14.00 Balance outstanding as of July 4, 2021 2,933 $ 5.95 |
Schedule of Share-based Compensation Expense | Share-based compensation expense was allocated in the consolidated statements of operations as follows: Three Months Ended Six Months Ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Cost of sales $ 704 $ — $ 704 $ — Research and development 1,480 — 1,480 — Selling, general and administrative expenses 4,355 — 4,360 488 $ 6,539 $ — $ 6,544 $ 488 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 04, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Change in Level 3 Assets Measured at Fair Value On a Recurring Basis | Level 3 inputs are used in the valuation of our contingent consideration obligation. The change in level 3 assets measured at fair value on a recurring basis is summarized as follows: Contingent Balance at January 3, 2021 $ 10,900 Payments (6,114) Change in fair value (886) Balance at July 4, 2021 $ 3,900 |
Major Customers and Concentra_2
Major Customers and Concentration Risk (Tables) | 6 Months Ended |
Jul. 04, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Concentration Risk Percentage of Customers | The following customers accounted for 10% or more of sales for the three and six months ended July 4, 2021 and June 28, 2020: Three Months Ended Six Months Ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Customer A 19 % 12 % 28 % * Customer B 28 % 34 % 23 % 34 % Customer C 15 % * 11 % * Customer D * 19 % * 24 % 62 % 65 % 62 % 58 % __________________ * Represents less than 10% of net sales. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jul. 04, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Future Minimum Lease Commitments | Future minimum lease commitments to Oxbow Realty as of July 4, 2021 were as follows (such amounts are eliminated from our condensed consolidated financial statements due to the consolidation of Oxbow Realty, see Note 14 – Variable Interest Entities ): Remainder of 2021 $ 2,378 2022 4,836 2023 4,932 2024 5,031 2025 5,132 Thereafter 89,350 Total lease payments 111,659 Less: imputed interest (84,476) Total $ 27,183 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jul. 04, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of VIE Condensed Balance Sheet Statements | The following table shows the carrying amounts of assets and liabilities of Oxbow Realty that are consolidated by us as of July 4, 2021 and January 3, 2021. The assets and liabilities are presented prior to consolidation, and thus a portion of these assets and liabilities are eliminated in consolidation. July 4, January 3, Cash and cash equivalents $ 495 $ 860 Prepaid expenses — 99 Finance receivable 37,301 36,930 Other assets 100 — Total assets $37,896 $37,889 Accounts payable $ 720 $ 672 Accrued expenses 319 9 Debt 38,283 38,776 Total liabilities $39,322 $39,457 |
Schedule of VIE Condensed Income Statements | The following table shows the revenue and expenses of Oxbow Realty that are consolidated by us for the three and six months ended July 4, 2021, which we began consolidating on September 29, 2020. We have included these amounts, net of eliminations, in the corresponding tables in the notes to our condensed consolidated financial statements. Three Months Ended Six Months Ended Revenue $ 1,159 $ 2,504 General and administrative expenses 66 318 Interest expense 336 671 Total expenses 402 989 Net income $ 757 $ 1,515 |
Nature of Business (Details)
Nature of Business (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 23, 2021 | Jul. 04, 2021 | Jun. 28, 2020 | Jul. 26, 2021 |
Sale of Stock [Line items] | ||||
Stock offering costs | $ 1,205 | $ 0 | ||
Subsequent Event | ||||
Sale of Stock [Line items] | ||||
Strategic capital investments | $ 56,000 | |||
IPO | ||||
Sale of Stock [Line items] | ||||
Underwriting discounts and commissions | $ 7,844 | |||
Stock offering costs | $ 4,050 | |||
IPO | Common Stock | ||||
Sale of Stock [Line items] | ||||
Shares issued in public offering (in shares) | 8,004,000 | |||
Public offering price per share (in USD per share) | $ 14 | |||
Proceeds from public offering | $ 100,162 |
Basis of Presentation and Pri_4
Basis of Presentation and Principles of Consolidation - Schedule of Basic And Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 14, 2021 | Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | Apr. 04, 2021 | Jan. 03, 2021 | Mar. 29, 2020 | Dec. 29, 2019 |
Numerator: | |||||||||
Net loss attributable to SkyWater Technology, Inc. | $ (6,979) | $ (5,293) | $ (9,790) | $ (6,665) | |||||
Undistributed preferred return to Class B preferred unitholders, basic | (39) | (398) | |||||||
Undistributed preferred return to Class B preferred unitholders, diluted | (39) | (398) | |||||||
Net loss attributable to common shareholders, basic | (7,018) | (10,188) | |||||||
Net loss attributable to common shareholders, diluted | $ (7,018) | $ (10,188) | |||||||
Denominator: | |||||||||
Weighted average shares outstanding, basic (in shares) | 34,707,758 | 18,884,051 | |||||||
Weighted average shares outstanding, diluted (in shares) | 34,707,758 | 18,884,051 | |||||||
Net loss per share, basic (in USD per share) | $ (0.20) | $ (0.54) | |||||||
Net loss per share, diluted (in USD per share) | $ (0.20) | $ (0.54) | |||||||
Common Units | |||||||||
Denominator: | |||||||||
Number of units converted (in shares) | 2,105,936 | ||||||||
Units outstanding (in shares) | 0 | 0 | 0 | 0 | 2,106,000 | 2,108,000 | 0 | 0 | |
Common Stock | |||||||||
Denominator: | |||||||||
Conversion of units (in shares) | 31,055,743 | ||||||||
Common Stock | Common Unit Holders | |||||||||
Denominator: | |||||||||
Conversion of units (in shares) | 3,060,343 | ||||||||
Common Stock | Class B Preferred Unitholders | |||||||||
Denominator: | |||||||||
Conversion of units (in shares) | 27,995,400 | ||||||||
Class B Units | |||||||||
Denominator: | |||||||||
Weighted average shares outstanding, basic (in shares) | 18,000,000 | 18,000,000 | |||||||
Weighted average shares outstanding, diluted (in shares) | 18,000,000 | 18,000,000 | |||||||
Net loss per share, basic (in USD per share) | $ (0.29) | $ (0.37) | |||||||
Net loss per share, diluted (in USD per share) | $ (0.29) | $ (0.37) | |||||||
Number of units converted (in shares) | 18,000,000 | ||||||||
Units outstanding (in shares) | 0 | 18,000,000 | 0 | 18,000,000 | 18,000,000 | 18,000,000 | 18,000,000 | 18,000,000 |
Basis of Presentation and Pri_5
Basis of Presentation and Principles of Consolidation - Narrative (Details) | Jul. 04, 2021USD ($)shares | Jul. 04, 2021USD ($)segmentshares | Apr. 04, 2021shares | Jan. 03, 2021shares | Jun. 28, 2020shares | Mar. 29, 2020shares | Dec. 29, 2019shares |
Lessee, Lease, Description [Line Items] | |||||||
Minimum lease payment | $ 111,659,000 | $ 111,659,000 | |||||
Number of operating segments | segment | 1 | ||||||
Class B Units | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Preferred units rate of return | 8.00% | ||||||
Units outstanding (in shares) | shares | 0 | 0 | 18,000,000 | 18,000,000 | 18,000,000 | 18,000,000 | 18,000,000 |
CNF Lease [Member] | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lease term | 23 years | 23 years | |||||
Lease payment per year | $ 1 | ||||||
Payment for lease termination | $ 15,000,000 | ||||||
CNF Lease [Member] | Minimum | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lease term | 18 months | 18 months | |||||
Minimum lease payment | $ 23 | $ 23 | |||||
Restricted Stock Units And Stock Options | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Units excluded from computation (in shares) | shares | 3,966,000 | ||||||
Units outstanding (in shares) | shares | 0 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Accounting Policies [Abstract] | ||||
Royalty payments | $ 2,758 | $ 2,714 | $ 6,114 | $ 5,253 |
Contingent consideration royalties expense | $ (942) | $ 712 | $ (886) | $ 1,553 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | Jan. 03, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue obligation amount | $ 85,019 | $ 85,019 | |||
Amortization of deferred contract costs | 426 | $ 0 | 977 | $ 0 | |
Contract assets | 15,969 | $ 15,969 | $ 8,147 | ||
Percentage of contract liabilities recognized in revenue | 20.00% | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-05 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue obligation amount | $ 15,196 | $ 15,196 | |||
Revenue recognition period | 6 months | 6 months | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-05 | BRIDG | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue obligation amount | $ 14,000 | $ 14,000 | |||
Revenue recognition period | 38 months | 38 months | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-04 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue obligation amount | $ 12,695 | $ 12,695 | |||
Revenue recognition period | 12 months | 12 months | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-03 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue obligation amount | $ 12,695 | $ 12,695 | |||
Revenue recognition period | 12 months | 12 months | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue obligation amount | $ 44,433 | $ 44,433 | |||
Revenue recognition period | 12 months | 12 months |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Lease Revenue | $ 1,167 | $ 2,334 | ||
Revenue recognized from foundry services obligation | $ 11 | $ 399 | ||
Total Revenue | 41,189 | 30,759 | 89,290 | 67,663 |
Point-in-Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 14,312 | 10,885 | 24,331 | 23,815 |
Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 25,710 | 19,863 | 62,625 | 43,449 |
Wafer Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Lease Revenue | 0 | 0 | ||
Revenue recognized from foundry services obligation | 11 | 399 | ||
Total Revenue | 14,312 | 10,896 | 24,331 | 24,214 |
Wafer Services | Point-in-Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 14,312 | 10,885 | 24,331 | 23,815 |
Wafer Services | Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Total Advanced Technology Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Lease Revenue | 1,167 | 2,334 | ||
Revenue recognized from foundry services obligation | 0 | 0 | ||
Total Revenue | 26,877 | 19,863 | 64,959 | 43,449 |
Total Advanced Technology Services | Point-in-Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Total Advanced Technology Services | Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 25,710 | 19,863 | 62,625 | 43,449 |
T&M | ||||
Disaggregation of Revenue [Line Items] | ||||
Lease Revenue | 0 | 0 | ||
Revenue recognized from foundry services obligation | 0 | 0 | ||
Total Revenue | 10,692 | 12,548 | 21,484 | 31,954 |
T&M | Point-in-Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
T&M | Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 10,692 | 12,548 | 21,484 | 31,954 |
Fixed Price | ||||
Disaggregation of Revenue [Line Items] | ||||
Lease Revenue | 0 | 0 | ||
Revenue recognized from foundry services obligation | 0 | 0 | ||
Total Revenue | 15,018 | 7,315 | 41,141 | 11,495 |
Fixed Price | Point-in-Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Fixed Price | Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 15,018 | $ 7,315 | 41,141 | 11,495 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Lease Revenue | 1,167 | 2,334 | ||
Revenue recognized from foundry services obligation | 0 | |||
Total Revenue | 1,167 | 2,334 | 0 | |
Other | Point-in-Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | |
Other | Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 0 | $ 0 | $ 0 |
Revenue - Summary of Revenue by
Revenue - Summary of Revenue by Country (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 41,189 | $ 30,759 | $ 89,290 | $ 67,663 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 36,612 | 26,327 | 80,233 | 57,797 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,547 | 2,048 | 3,156 | 5,084 |
All others | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 3,030 | $ 2,384 | $ 5,901 | $ 4,782 |
Revenue - Summary of Deferred R
Revenue - Summary of Deferred Revenue (Details) - USD ($) $ in Thousands | Jul. 04, 2021 | Jan. 03, 2021 |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Current contract liabilities | $ 20,252 | $ 25,986 |
Long-term contract liabilities | 70,827 | 79,455 |
Total contract liabilities | 91,079 | 105,441 |
Current deferred lease revenue | 4,667 | 4,667 |
Long-term deferred lease revenue | 13,611 | 15,944 |
Total deferred lease revenue | 18,278 | 20,611 |
Current deferred revenue | 24,919 | 30,653 |
Long-term deferred revenue | 84,438 | 95,399 |
Total deferred revenue | $ 109,357 | $ 126,052 |
Revenue - Summary of Performanc
Revenue - Summary of Performance Obligations (Details) $ in Thousands | Jul. 04, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue obligation amount | $ 85,019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-05 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue obligation amount | 15,196 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-04 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue obligation amount | 12,695 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-03 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue obligation amount | 12,695 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue obligation amount | $ 44,433 |
Balance Sheet Information - Sum
Balance Sheet Information - Summary of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Jul. 04, 2021 | Jan. 03, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, net | $ 33,396 | $ 29,995 |
Trade accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, net | 17,197 | 21,357 |
Unbilled revenue (contract assets) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, net | 15,969 | 8,147 |
Note receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, net | 0 | 230 |
Employee note receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, net | 223 | 222 |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, net | $ 7 | $ 39 |
Balance Sheet Information - Nar
Balance Sheet Information - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Depreciation expense | $ 6,400 | $ 4,130 | $ 12,447 | $ 8,261 | |
Key Employee | |||||
Debt Instrument [Line Items] | |||||
Loan agreement face amount | $ 222 | ||||
Debt instrument, interest rate | 6.00% | ||||
Customer list | |||||
Debt Instrument [Line Items] | |||||
Amortization of intangible assets | 88 | 88 | 176 | 176 | |
Software and licenses | |||||
Debt Instrument [Line Items] | |||||
Amortization of intangible assets | $ 366 | $ 99 | $ 713 | $ 202 |
Balance Sheet Information - S_2
Balance Sheet Information - Summary Of Inventories (Details) - USD ($) $ in Thousands | Jul. 04, 2021 | Jan. 03, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,585 | $ 1,463 |
Work-in-process | 20,874 | 19,719 |
Supplies and spare parts | 5,708 | 5,987 |
Total inventories—current | 29,167 | 27,169 |
Supplies and spare parts classified as other assets | 2,350 | 1,949 |
Total inventories | $ 31,517 | $ 29,118 |
Balance Sheet Information - S_3
Balance Sheet Information - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jul. 04, 2021 | Jan. 03, 2021 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses | $ 1,839 | $ 2,761 |
Equipment purchased for customers | 0 | 5,343 |
Deferred contract costs | 1,724 | 1,647 |
Deferred offering costs | 0 | 2,183 |
Other | 34 | 38 |
Total prepaid assets and other current assets | $ 3,597 | $ 11,972 |
Balance Sheet Information - S_4
Balance Sheet Information - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jul. 04, 2021 | Jan. 03, 2021 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 5,396 | $ 5,396 |
Buildings and improvements | 86,092 | 85,197 |
Machinery and equipment | 135,824 | 124,130 |
Fixed assets not yet in service | 23,823 | 22,602 |
Total property and equipment, at cost | 251,135 | 237,325 |
Less: Accumulated depreciation | (71,694) | (59,247) |
Total property and equipment, net | $ 179,441 | $ 178,078 |
Balance Sheet Information - S_5
Balance Sheet Information - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 04, 2021 | Jan. 03, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, at cost | $ 7,266 | $ 6,908 |
Less: Accumulated amortization | (3,237) | (2,347) |
Total intangible assets, net | 4,029 | 4,561 |
Customer list | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, at cost | 1,500 | 1,500 |
Software and licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, at cost | $ 5,766 | $ 5,408 |
Balance Sheet Information - S_6
Balance Sheet Information - Summary of Remaining Estimated Aggregate Annual Amortization Expense (Details) - USD ($) $ in Thousands | Jul. 04, 2021 | Jan. 03, 2021 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
Remainder of 2021 | $ 842 | |
2022 | 1,140 | |
2023 | 800 | |
2024 | 445 | |
2025 | 445 | |
Thereafter | 357 | |
Total intangible assets, net | $ 4,029 | $ 4,561 |
Balance Sheet Information - S_7
Balance Sheet Information - Summary of Other Assets (Details) - USD ($) $ in Thousands | Jul. 04, 2021 | Jan. 03, 2021 |
Other Assets, Noncurrent [Abstract] | ||
Supplies and spare parts | $ 2,350 | $ 1,949 |
Deferred contract costs | 1,699 | 2,049 |
Other assets | 469 | 0 |
Total other assets | $ 4,518 | $ 3,998 |
Balance Sheet Information - S_8
Balance Sheet Information - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands | Jul. 04, 2021 | Jan. 03, 2021 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 5,624 | $ 6,315 |
Accrued commissions | 1,586 | 5,183 |
Accrued fixed asset expenditures | 2,468 | 6,337 |
Accrued royalties | 1,525 | 2,145 |
Accrued customer payable | 1,455 | 783 |
Other accrued expenses | 8,075 | 4,733 |
Total accrued expenses | $ 20,733 | $ 25,496 |
Debt - Summary of Debt Outstand
Debt - Summary of Debt Outstanding (Details) - USD ($) $ in Thousands | Jul. 04, 2021 | Jan. 03, 2021 | Apr. 18, 2020 |
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ (4,675) | $ (4,995) | |
Total long-term debt, including current maturities | 66,354 | 72,600 | |
Less: Current portion of long-term debt | (1,006) | (2,772) | |
Long-term debt, excluding current portion and unamortized debt issuance costs | 65,348 | 69,828 | |
Revolver | |||
Debt Instrument [Line Items] | |||
Long-term debt | 32,686 | 32,303 | |
Unamortized debt issuance costs | 1,383 | 1,537 | |
Financing (by VIE) | |||
Debt Instrument [Line Items] | |||
Long-term debt | 38,343 | 38,839 | |
Unamortized debt issuance costs | 3,292 | 3,458 | |
Paycheck Protection Program loan | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | $ 6,453 | $ 6,453 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Thousands | Apr. 04, 2021 | Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | Jan. 03, 2021 | Sep. 30, 2020 | Apr. 18, 2020 |
Debt Instrument [Line Items] | ||||||||
Paycheck Protection Program loan forgiveness | $ 6,453 | $ 0 | $ 6,453 | $ 0 | ||||
Revolver | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding balance of loan | 32,686 | 32,686 | $ 32,303 | |||||
Debt instrument, periodic payment | $ 194 | |||||||
Debt instrument, term | 10 years | |||||||
Financing (by VIE) | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding balance of loan | 38,343 | 38,343 | 38,839 | |||||
Debt instrument, interest rate | 3.44% | |||||||
Loan agreement face amount | $ 39,000 | |||||||
Paycheck Protection Program loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding balance of loan | $ 0 | $ 0 | $ 6,453 | $ 6,453 | ||||
Wells Fargo Bank | Revolver | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate | 3.00% | 3.00% | ||||||
Remaining balance of revolver | $ 28,900 | $ 28,900 |
Debt - Summary of Future Princi
Debt - Summary of Future Principal Payments (Details) - USD ($) $ in Thousands | Jul. 04, 2021 | Jan. 03, 2021 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Total long-term debt, including current maturities | $ 66,354 | $ 72,600 |
Line of Credit And Loans Payable | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Remainder of 2021 | 497 | |
2022 | 1,024 | |
2023 | 1,060 | |
2024 | 1,094 | |
2025 | 33,820 | |
Thereafter | 33,534 | |
Total long-term debt, including current maturities | $ 71,029 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | Jan. 03, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 40.50% | (20.90%) | 36.00% | 0.40% | |
Federal statutory income tax rate | 21.00% | 21.00% | |||
Valuation allowance | $ 1,401 | $ 1,401 | $ 1,609 | ||
Penalties and interest expense | $ 0 | $ 0 | $ 0 | $ 0 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 23, 2021 | Apr. 14, 2021 | Jul. 04, 2021 | Jun. 28, 2020 | Jan. 03, 2021 |
Class of Stock [Line Items] | |||||
Common shares authorized (in shares) | 200,000,000 | 200,000,000 | 0 | ||
Common shares, per share (in USD per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Preferred shares authorized (in shares) | 80,000,000 | 80,000,000 | 0 | ||
Preferred shares, per share (in USD per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Common shares, issued (in shares) | 39,059,743 | 0 | |||
Preferred shares outstanding (in shares) | 0 | 0 | |||
Stock offering costs | $ 1,205 | $ 0 | |||
Class A Units | |||||
Class of Stock [Line Items] | |||||
Preferred units authorized (in shares) | 0 | 2,000,000 | |||
Preferred units outstanding (in shares) | 0 | 0 | |||
Preferred units issued (in shares) | 0 | 0 | |||
Class B Units | |||||
Class of Stock [Line Items] | |||||
Preferred units authorized (in shares) | 0 | 18,000,000 | |||
Preferred units outstanding (in shares) | 0 | 18,000,000 | |||
Preferred units issued (in shares) | 0 | 18,000,000 | |||
Preferred units rate of return | 8.00% | ||||
Common Units | |||||
Class of Stock [Line Items] | |||||
Preferred units authorized (in shares) | 5,000,000 | ||||
Preferred units outstanding (in shares) | 2,107,452 | ||||
Preferred units issued (in shares) | 3,057,344 | ||||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Conversion of units (in shares) | 31,055,743 | ||||
IPO | |||||
Class of Stock [Line Items] | |||||
Underwriting discounts and commissions | $ 7,844 | ||||
Stock offering costs | $ 4,050 | ||||
IPO | Common Stock | |||||
Class of Stock [Line Items] | |||||
Shares issued in public offering (in shares) | 8,004,000 | ||||
Public offering price per share (in USD per share) | $ 14 | ||||
Proceeds from public offering | $ 100,162 | ||||
Class B Preferred Unitholders | Common Stock | |||||
Class of Stock [Line Items] | |||||
Conversion of units (in shares) | 27,995,400 | ||||
Common Unit Holders | Common Stock | |||||
Class of Stock [Line Items] | |||||
Conversion of units (in shares) | 3,060,343 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 23, 2021 | Apr. 21, 2021 | Apr. 04, 2021 | Dec. 18, 2020 | Nov. 01, 2020 | Jul. 04, 2021 | Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares available for issuance (in shares) | 5,000,000 | 5,000,000 | 5,000,000 | |||||||
Annual increase of number of shares reserved for issuance (in shares) | 150,000 | 150,000 | 150,000 | |||||||
Annual percent increase of number of shares reserved for issuance | 3.00% | 3.00% | 3.00% | |||||||
Number of stock options granted (in shares) | 1,087,000 | |||||||||
Share-based compensation expense | $ 6,539 | $ 0 | $ 6,544 | $ 488 | ||||||
Weighted average grant-date fair value of options granted | $ 5.29 | |||||||||
Options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Additional awards issued under previous plan (in shares) | 0 | |||||||||
Awards outstanding under previous plan (in shares) | 0 | 0 | 0 | |||||||
Share-based compensation expense | $ 439 | 0 | $ 444 | 488 | ||||||
Unrecognized compensation cost | $ 5,057 | 5,057 | $ 5,057 | |||||||
Weighted average period of recognition for unrecognized compensation cost | 3 years 4 months 24 days | |||||||||
Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Units granted (in shares) | 1,602,588 | 4,672 | ||||||||
Number of units converted (in shares) | 6,788 | |||||||||
Award vesting period | 1 year | |||||||||
Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | 6,100 | $ 0 | $ 6,100 | $ 0 | ||||||
Unrecognized compensation cost | $ 11,360 | $ 11,360 | $ 11,360 | |||||||
Weighted average period of recognition for unrecognized compensation cost | 1 year 6 months | |||||||||
Award vesting period | 3 years | |||||||||
Number of units converted upon corporate conversion (in shares) | 2,328,880 | |||||||||
Employee Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Common stock reserved for ESPP issuance (in shares) | 700,000 | |||||||||
Percentage of earnings applied to purchase of stock under ESPP | 15.00% | |||||||||
Shares available for purchase by an employee at each offering period (in shares) | 2,500 | |||||||||
Employee Stock | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percentage of fair value of shares at grant date to determine purchase price | 15.00% | |||||||||
Offering period | 27 months | |||||||||
Employee Stock | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Offering period | 6 months | |||||||||
Share-based Payment Arrangement, Tranche One | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of stock options granted (in shares) | 342,783 | |||||||||
Share-based Payment Arrangement, Tranche One | Options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expiration period of options granted | 15 months | |||||||||
Share-based Payment Arrangement, Tranche One | Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Units granted (in shares) | 440,836 | |||||||||
Share-based Payment Arrangement, Tranche Two | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of stock options granted (in shares) | 744,374 | |||||||||
Share-based Payment Arrangement, Tranche Two | Options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expiration period of options granted | 10 years | |||||||||
Share-based Payment Arrangement, Tranche Two | Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Units granted (in shares) | 204,910 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Option Pricing Model Assumption (Details) - Options | 6 Months Ended |
Jul. 04, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility: | 46.00% |
Risk-free interest rate, minimum | 0.09% |
Risk-free interest rate, maximum | 1.19% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years): | 1 year 1 month 17 days |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years): | 6 years 3 months |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Option Activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jul. 04, 2021USD ($)$ / sharesshares | |
Number of Stock Options | |
Number of stock options outstanding at beginning of period (in shares) | shares | 0 |
Number of stock options granted (in shares) | shares | 1,087,000 |
Number of stock options exercised (in shares) | shares | 0 |
Number of stock options forfeited or canceled (in shares) | shares | (54,000) |
Number of stock options outstanding at end of period (in shares) | shares | 1,033,000 |
Number of stock options vested and exercisable (in shares) | shares | 0 |
Weighted Average Exercise Price Per Share | |
Weighted average exercise of options outstanding at beginning of period (in USD per share) | $ / shares | $ 0 |
Weighted average exercise of options granted (in USD per share) | $ / shares | 14 |
Weighted average exercise of options exercised (in USD per share) | $ / shares | 0 |
Weighted average exercise of options forfeited or canceled (in USD per share) | $ / shares | 14 |
Weighted average exercise of options outstanding at end of period (in USD per share) | $ / shares | 14 |
Weighted average exercise of options vested and exercisable (in USD per share) | $ / shares | $ 0 |
Aggregate intrinsic value of shares outstanding | $ | $ 13,003 |
Aggregate intrinsic value of shares vested and exercisable | $ | $ 0 |
Weighted-average remaining contractual life of shares outstanding | 7 years 1 month 6 days |
Weighted-average remaining contractual life of shares vested and exercisable | 0 years |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of RSU Activity (Details) - Restricted Stock Units (RSUs) | 6 Months Ended |
Jul. 04, 2021$ / sharesshares | |
Number of Restricted Common Stock Units | |
RSUs outstanding at beginning of period (in shares) | shares | 2,329,000 |
RSUs granted (in shares) | shares | 646,000 |
RSUs vested (in shares) | shares | 0 |
RSUs forfeited or canceled (in shares) | shares | (42,000) |
RSUs outstanding at end of period (in shares) | shares | 2,933,000 |
Weighted Average Grant Date Fair Value Per Share | |
Weighted average grant date fair value of RSUs outstanding at beginning of period (in USD per share) | $ / shares | $ 3.87 |
Weighted average grant date fair value of RSUs granted (in USD per share) | $ / shares | 14 |
Weighted average grant date fair value of RSUs vested (in USD per share) | $ / shares | 0 |
Weighted average grant date fair value of RSUs forfeited or canceled (in USD per share) | $ / shares | 14 |
Weighted average grant date fair value of RSUs outstanding at end of period (in USD per share) | $ / shares | $ 5.95 |
Share-Based Compensation - Sc_4
Share-Based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | $ 6,539 | $ 0 | $ 6,544 | $ 488 |
Cost of sales | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | 704 | 0 | 704 | 0 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | 1,480 | 0 | 1,480 | 0 |
Selling, general and administrative expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | $ 4,355 | $ 0 | $ 4,360 | $ 488 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Change in Level 3 Assets Measured at Fair Value On a Recurring Basis (Detail) $ in Thousands | 6 Months Ended |
Jul. 04, 2021USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Contingent consideration balance at beginning of period | $ 10,900 |
Payments | (6,114) |
Change in fair value | (886) |
Contingent consideration balance at end of period | $ 3,900 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - Fair Value, Recurring - Fair Value, Inputs, Level 3 $ in Thousands | 6 Months Ended |
Jul. 04, 2021USD ($) | |
Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Future cash payments | $ 4,000 |
Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Future cash payments | $ 3,900 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 28, 2020 | Jul. 04, 2021 | Mar. 01, 2017 | |
Commitments And Contingencies [Line Items] | ||||
Revenue recognized from foundry services obligation | $ 11 | $ 399 | ||
Contractual commitments outstanding | $ 15,000 | |||
Capital lease term | 15 years | |||
Capital lease | $ 14,000 | |||
Wafer Services | ||||
Commitments And Contingencies [Line Items] | ||||
Revenue recognized from foundry services obligation | 11 | 399 | ||
Wafer Services | Main Customer | ||||
Commitments And Contingencies [Line Items] | ||||
Commitment obligation period | 40 months | |||
Revenue recognized from foundry services obligation | $ 10,932 | $ 23,477 |
Major Customers and Concentra_3
Major Customers and Concentration Risk - Summary of Concentration Risk Percentage of Customers (Details) - Revenue Benchmark - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Customer A | ||||
Concentration Risk [Line Items] | ||||
Customer percentage of revenue | 19.00% | 12.00% | 28.00% | |
Customer B | ||||
Concentration Risk [Line Items] | ||||
Customer percentage of revenue | 28.00% | 34.00% | 23.00% | 34.00% |
Customer C | ||||
Concentration Risk [Line Items] | ||||
Customer percentage of revenue | 15.00% | 11.00% | ||
Customer D | ||||
Concentration Risk [Line Items] | ||||
Customer percentage of revenue | 19.00% | 24.00% | ||
Major Customers | ||||
Concentration Risk [Line Items] | ||||
Customer percentage of revenue | 62.00% | 65.00% | 62.00% | 58.00% |
Major Customers and Concentra_4
Major Customers and Concentration Risk - Narrative (Details) - Accounts Receivable - Customer Concentration Risk | 6 Months Ended | 12 Months Ended |
Jul. 04, 2021 | Jan. 03, 2021 | |
Customer One | ||
Concentration Risk [Line Items] | ||
Customer percentage of trade receivables | 26.00% | 30.00% |
Customer Two | ||
Concentration Risk [Line Items] | ||
Customer percentage of trade receivables | 19.00% | 20.00% |
Customer Three | ||
Concentration Risk [Line Items] | ||
Customer percentage of trade receivables | 10.00% | 19.00% |
Customer Four | ||
Concentration Risk [Line Items] | ||
Customer percentage of trade receivables | 10.00% | 18.00% |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands | Sep. 29, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 |
Board Of Directors | |||||
Related Party Transaction [Line Items] | |||||
Management fees incurred | $ 1 | $ 46 | $ 117 | $ 108 | |
Oxbow Realty | |||||
Related Party Transaction [Line Items] | |||||
Lease payment per month | $ 394 | ||||
Lease term | 20 years | ||||
Annual percentage increase in monthly lease payments | 2.00% | ||||
Oxbow Industries LLC | |||||
Related Party Transaction [Line Items] | |||||
Management fees incurred | $ 55 | $ 160 | 215 | $ 320 | |
Maximum | Oxbow Industries LLC | |||||
Related Party Transaction [Line Items] | |||||
Annual management fee | $ 700 |
Related Party Transactions - Su
Related Party Transactions - Summary of Minimum Lease Payments Sale Lease back Transactions (Details) $ in Thousands | Jul. 04, 2021USD ($) |
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | $ 2,378 |
2022 | 4,836 |
2023 | 4,932 |
2024 | 5,031 |
2025 | 5,132 |
Thereafter | 89,350 |
Total lease payments | 111,659 |
Less: imputed interest | (84,476) |
Total | $ 27,183 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Condensed Balance Sheet Statements (Details) - USD ($) $ in Thousands | Jul. 04, 2021 | Jan. 03, 2021 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash and cash equivalents | $ 64,603 | $ 7,436 |
Total assets | 318,751 | 263,209 |
Total liabilities | 223,277 | 264,793 |
VIEs | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash and cash equivalents | 495 | 860 |
Prepaid expenses | 0 | 99 |
Finance receivable | 37,301 | 36,930 |
Other assets | 100 | 0 |
Total assets | 37,896 | 37,889 |
Accounts payable | 720 | 672 |
Accrued expenses | 319 | 9 |
Debt | 38,283 | 38,776 |
Total liabilities | $ 39,322 | $ 39,457 |
Variable Interest Entities - _2
Variable Interest Entities - Summary of Condensed Income Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Condensed Income Statements, Captions [Line Items] | ||||
Interest expense | $ 912 | $ 1,322 | $ 1,970 | $ 2,784 |
Net loss attributable to SkyWater Technology, Inc. | (6,979) | $ (5,293) | (9,790) | $ (6,665) |
VIEs | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenue | 1,159 | 2,504 | ||
General and administrative expenses | 66 | 318 | ||
Interest expense | 336 | 671 | ||
Total expenses | 402 | 989 | ||
Net loss attributable to SkyWater Technology, Inc. | $ 757 | $ 1,515 |