SkyWater Technology (SKYT) 10-Q 12 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Apr. 02, 2023	May 10, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 02, 2023
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	Yes
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		44,471,829
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001819974
Current Fiscal Year End Date	--12-31
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Current assets:
Cash and cash equivalents	$ 13,840	$ 30,025
Accounts receivable, net	67,016	62,670
Inventories	14,366	13,397
Prepaid expenses and other current assets	12,457	10,290
Income tax receivable	169	169
Total current assets	107,848	116,551
Property and equipment, net	175,368	179,915
Intangible assets, net	5,324	5,608
Other assets	4,286	3,690
Total assets	292,826	305,764
Current liabilities:
Current portion of long-term debt	2,021	1,855
Accounts payable	13,931	21,102
Accrued expenses	26,264	25,212
Short-term financing, less unamortized debt issuance costs	52,213	55,817
Deferred revenue - current	28,168	28,186
Total current liabilities	122,597	132,172
Long-term liabilities:
Long-term debt, less current portion and net of unamortized debt issuance costs	35,194	35,181
Long-term incentive plan	0	1,643
Deferred revenue - long-term	62,740	67,967
Deferred income tax liability, net	1,239	1,239
Other long-term liabilities	13,584	13,585
Total long-term liabilities	112,757	119,615
Total liabilities	235,354	251,787
Commitments and contingencies (Note 11)
Shareholders’ equity:
Preferred stock, $0.01 par value per share (80,000,000 shares authorized; zero issued and outstanding)	0	0
Common stock, $0.01 par value per share (200,000,000 shares authorized; 44,280,198 and 43,704,876 shares issued and outstanding)	443	437
Additional paid-in capital	154,764	147,304
Accumulated deficit	(98,720)	(94,072)
Total shareholders’ equity, SkyWater Technology, Inc.	56,487	53,669
Non-controlling interests	985	308
Total shareholders’ equity	57,472	53,977
Total liabilities and shareholders’ equity	$ 292,826	$ 305,764

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Apr. 02, 2023	Jan. 01, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value per share (in USD per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	80,000,000	80,000,000
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	200,000,000
Common stock, shares issued (in shares)	44,280,198	43,704,876
Common stock, shares outstanding (in shares)	44,280,198	43,704,876

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Income Statement [Abstract]
Revenue	$ 66,094	$ 48,121
Cost of revenue	49,626	49,061
Gross profit (loss)	16,468	(940)
Research and development	2,668	2,282
Selling, general and administrative expenses	14,895	11,690
Operating income (loss)	(1,095)	(14,912)
Other income (expense):
Interest expense	(2,471)	(1,029)
Total other income (expense)	(2,471)	(1,029)
Income (loss) before income taxes	(3,566)	(15,941)
Income tax expense (benefit)	0	(194)
Net income (loss)	(3,566)	(15,747)
Less: net income attributable to non-controlling interests	707	859
Net income (loss) attributable to SkyWater Technology, Inc.	$ (4,273)	$ (16,606)
Net income (loss) per share attributable to common shareholders, basic (in USD per share)	$ (0.10)	$ (0.42)
Net income (loss) per share attributable to common shareholders, diluted (in USD per share)	$ (0.10)	$ (0.42)
Weighted average shares used in computing net income (loss) per common share, basic (in shares)	43,817,417	39,861,688
Weighted average shares used in computing net income (loss) per common share, diluted (in shares)	43,817,417	39,861,688

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Total Shareholders’ Equity, SkyWater Technology, Inc.	Total Shareholders’ Equity, SkyWater Technology, Inc. Cumulative Effect, Period of Adoption, Adjustment	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Retained Earnings (Accumulated Deficit) Cumulative Effect, Period of Adoption, Adjustment	Non-controlling Interests
Beginning balance of preferred stock (in shares) at Jan. 02, 2022					0
Beginning balance of common stock (in shares) at Jan. 02, 2022						39,836,000
Beginning balance at Jan. 02, 2022	$ 59,927		$ 61,127		$ 0	$ 398	$ 115,208	$ (54,479)		$ (1,200)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to equity compensation plans (in shares)						69,000
Issuance of common stock pursuant to equity compensation plans	659		659			$ 1	658
Stock-based compensation	3,007		3,007				3,007
Distribution to VIE member	(337)									(337)
Net income (loss)	(15,747)		(16,606)					(16,606)		859
Ending balance of preferred stock (in shares) at Apr. 03, 2022					0
Ending balance of common stock (in shares) at Apr. 03, 2022						39,905,000
Ending balance at Apr. 03, 2022	$ 47,509		48,187		$ 0	$ 399	118,873	(71,085)		(678)
Beginning balance of preferred stock (in shares) at Jan. 01, 2023	0				0
Beginning balance of common stock (in shares) at Jan. 01, 2023	43,704,876					43,705,000
Beginning balance at Jan. 01, 2023	$ 53,977	$ (375)	53,669	$ (375)	$ 0	$ 437	147,304	(94,072)	$ (375)	308
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)						245,000
Issuance of common stock	2,696		2,696			$ 3	2,693
Issuance of common stock pursuant to equity compensation plans (in shares)						330,000
Issuance of common stock pursuant to equity compensation plans	2,917		2,917			$ 3	2,914
Stock-based compensation	1,853		1,853				1,853
Distribution to VIE member	(30)									(30)
Net income (loss)	$ (3,566)		(4,273)					(4,273)		707
Ending balance of preferred stock (in shares) at Apr. 02, 2023	0				0
Ending balance of common stock (in shares) at Apr. 02, 2023	44,280,198					44,280,000
Ending balance at Apr. 02, 2023	$ 57,472		$ 56,487		$ 0	$ 443	$ 154,764	$ (98,720)		$ 985

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Cash flows from operating activities:
Net income (loss)	$ (3,566)	$ (15,747)
Adjustments to reconcile net income (loss) to net cash flows used in operating activities:
Depreciation and amortization	7,352	6,458
Amortization of debt issuance costs included in interest expense	357	172
Long-term incentive and stock-based compensation	1,853	3,216
Deferred income taxes	0	(197)
Cash paid for operating leases	(12)	(12)
Cash paid for finance leases	(212)	(88)
Provision for credit losses	2,154	0
Changes in operating assets and liabilities:
Accounts receivable	(6,875)	(86)
Inventories	(969)	(3,843)
Prepaid expenses and other assets	(2,653)	(2,139)
Accounts payable	(3,270)	4,157
Deferred revenue	(5,245)	(2,684)
Income tax receivable and payable	0	1
Net cash used in operating activities	(11,086)	(10,792)
Cash flows from investing activities:
Purchase of software and licenses	(213)	(400)
Purchases of property and equipment	(2,851)	(4,414)
Net cash used in investing activities	(3,064)	(4,814)
Cash flows from financing activities:
Draws on revolving line of credit	59,350	0
Paydowns of revolving line of credit	(63,310)	0
Net (repayment) proceeds on Revolver	0	9,392
Net proceeds from tool financing	494	0
Repayment of VIE financing	(317)	(256)
Cash paid for finance leases	(343)	(334)
Proceeds from the issuance of common stock pursuant to the employee stock purchase plan	1,275	659
Proceeds from the issuance of common stock, net of commissions	2,696	0
Cash paid on license technology obligations	(1,850)	0
Net distributions to VIE member	(30)	(337)
Net cash (used in) provided by financing activities	(2,035)	9,124
Net change in cash and cash equivalents	(16,185)	(6,482)
Cash and cash equivalents - beginning of period	30,025	12,917
Cash and cash equivalents - end of period	13,840	6,435
Supplemental disclosure of cash flow information:
Interest	1,286	882
Income taxes	0	2
Noncash investing and financing activity:
Capital expenditures incurred, not yet paid	421	1,537
Equipment acquired through capital lease obligations	765	9,035
Intangible assets acquired, not yet paid	$ 500	$ 1,628

Nature of Business

Nature of Business	3 Months Ended
	Apr. 02, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	Nature of Business SkyWater Technology, Inc., together with its consolidated subsidiaries (collectively, "SkyWater", the "Company", “we”, “us”, or “our”), is a U.S.-based, independent, pure-play technology foundry that offers advanced semiconductor development and manufacturing services from its fabrication facility, or fab, in Minnesota and advanced packaging services from its Florida facility. In its 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. SkyWater is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012.

Basis of Presentation and Princ

Basis of Presentation and Principles of Consolidation	3 Months Ended
	Apr. 02, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The condensed consolidated financial statements as of April 2, 2023, and for the three months ended April 2, 2023 and April 3, 2022, 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 1, 2023 and for the year then ended. 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 the fair presentation of our financial position as of April 2, 2023, our results of operations, shareholders' equity and cash flows for the three months ended April 2, 2023 and April 3, 2022. The results of operations for the three months ended April 2, 2023 are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2023, 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 the variable interest entity (“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 months ended April 2, 2023 and April 3, 2022. Liquidity and Cash Requirements The accompanying condensed consolidated financial statements have been prepared on the basis of the realization of assets and the satisfaction of liabilities and commitments in the normal course of business and do not include any adjustments to the recoverability and classifications of recorded assets and liabilities as a result of uncertainties. For the three months ended April 2, 2023, we incurred losses of $4,273. As of April 2, 2023, we had cash and cash equivalents of $13,840. Our ability to execute our operating strategy is dependent on our ability to maintain liquidity and continue to access capital through our Revolver (as defined in Note 6 – Debt ) and other sources of financing. Our current business plans indicate that we may require additional liquidity to continue our operations for the next 12 months from the issuance of the condensed consolidated financial statements. We have identified specific actions we could take to reduce operating costs and improve cash flow, including reductions in spending and delays in hiring certain personnel. If such actions are taken, it may require us to decrease our level of investment in new products and technologies, or discontinue further expansion of our business. The Company also obtained a support letter from Oxbow Industries, LLC ("Oxbow Industries"), an affiliate of our principal stockholder CMI Oxbow Partners, LLC ("Oxbow"), to provide funding in an amount up to $12,500, if necessary, to enable the Company to meet its obligations as they become due through at least one year beyond the issuance of these financial statements. Management believes that based upon SkyWater's operating forecasts, cash and cash equivalents on hand, available borrowings on the Revolver, potential cost reduction measures, and the support letter from Oxbow Industries, as needed, will provide sufficient liquidity to fund its operations for the next twelve months from the issuance of the condensed consolidated financial statements. Additionally, we could raise additional capital through the ATM Program (as defined below) and seek additional equity or debt financing, including a refinancing and/or expansion of the Revolver, however we cannot provide any assurance that additional funds will be available when needed from any source or, if available, will be available on terms that are acceptable to us. See Note 8 – Shareholders’ Equity for information regarding the ATM Program. SkyWater has based this estimate on assumptions that may prove to be wrong, and its operating plan may change as a result of many factors currently unknown to it. To the extent that our current resources and plans to reduce expenses are insufficient to satisfy our cash requirements, we may need to seek additional equity or debt financing. Our ability to do so depends on prevailing economic conditions and other factors, many of which are beyond our control. 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. Net Loss Per Share Basic net loss per common 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 common share is computed by dividing the net loss by the weighted-average number of shares and potentially dilutive securities outstanding for the period determined using the treasury-stock method. Because we reported a net loss for the three months ended April 2, 2023 and April 3, 2022, the number of shares used to calculate diluted net loss per common share is the same as the number of shares 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 April 2, 2023 and April 3, 2022, there were restricted stock units and stock options totaling 2,949,000 and 3,414,000, respectively, excluded from the computation of diluted weighted-average shares outstanding because their inclusion would have been anti-dilutive. The following table sets forth the computation of basic and diluted net loss per common share for the three months ended April 2, 2023 and April 3, 2022: Three Months Ended April 2, 2023 April 3, 2022 (in thousands, except per share data) Numerator: Net loss attributable to SkyWater Technology, Inc. $ (4,273) $ (16,606) Denominator: Weighted-average common shares outstanding, basic and diluted 43,817 39,862 Net loss per common share, basic and diluted $ (0.10) $ (0.42) 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. SkyWater operates and manages its business as a single operating segment.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Apr. 02, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting PoliciesOur audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 1, 2023 include an additional discussion of the significant accounting policies and estimates used in the preparation of the condensed consolidated financial statements. There were no material changes to our significant accounting policies and estimates during the three months ended April 2, 2023. However, we adopted the provision of the new credit loss accounting standard as discussed below. Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), later codified in FASB Accounting Standards Codification ("ASC") Topic 842, Leases ("Topic 842"). Topic 842 was effective for public business entities for fiscal years beginning after December 15, 2018. As an emerging growth company, we adopted Topic 842 on January 3, 2022 for our year ending January 1, 2023. The guidance in Topic 842 supersedes the leasing guidance in Topic 840, Leases. Under Topic 842, lessees are required to recognize lease right of use assets and lease liabilities on the balance sheet. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. We adopted Topic 842, and all related amendments using the "Comparatives Under 840 Option" transition approach. Under this transition approach, we did not restate prior periods, nor restate prior lease disclosures. We also elected certain practical expedients allowed by Topic 842 which, among other things, allowed us to carry forward historical lease classification conclusions previously made under Topic 840 and to exclude from the scope of our application of Topic 842 lease arrangements with terms less than twelve months. The most significant impact of adopting Topic 842 was the recognition of lease right-of-use assets and lease liabilities for operating leases. The adoption of Topic 842 resulted in the recognition of an initial right-of-use asset of $184 and an initial lease liability of $184 for our operating leases. Our accounting for finance leases remained substantially unchanged.

Revenue

Revenue	3 Months Ended
	Apr. 02, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Wafer Services Contract In March 2022, we signed a contract with a significant wafer services customer. Under the contract, orders are non-cancellable and we have an enforceable right to payment for any finished or in-process wafers plus a reasonable margin. The wafers produced for that customer are highly customized and have no alternative use. Control of these wafers is deemed to transfer to the customer over time during the fabrication process, using the same measure of progress toward satisfying the promise to deliver the units to the customer. The contract price is recognized as revenue over time based on actual costs incurred in the fabrication process to date relative to total expected costs to produce all wafers. The contract terms and pricing is applicable to all in-process and future wafers. We recorded revenue of $8,230 in the three months ended April 3, 2022 to account for recognition of wafer services activities in process. Revenue Recognition of Advanced Technology Services Contract Revenue on fixed price contracts is recognized over time as work progresses using either the input or output method based upon which method we believe represents the best indication of the overall progress toward satisfying each performance obligation. Over time revenue recognition using the output method relies on performance completed to date or contractual milestones if they correlate directly with the progress to satisfy our performance obligations. Over time revenue recognition using the input method is based on costs incurred to date compared to estimated total cost required to complete each performance obligation as of the reporting date. We measure progress by comparing total costs incurred to date to the total estimated costs of each performance obligation, and record that proportion of the contract price allocated to that performance obligation as revenue. Costs include labor, manufacturing costs, materials and other direct costs related to the customer contract. During the third quarter of 2022, we signed contracts with a significant Advanced Technology Services customer that for which revenue is recognized based upon the input method using a cost-based measure of progress. Disaggregated Revenue The following table discloses revenue by product type and the timing of recognition of revenue for transfer of goods and services to customers: Three Months Ended April 2, 2023 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Total Revenue Wafer Services $ 3,950 $ 13,838 $ — $ 17,788 Advanced Technology Services Time & materials contracts — 27,831 — 27,831 Fixed price contracts — 19,308 — 19,308 Other — — 1,167 1,167 Total Advanced Technology Services 1 — 47,139 1,167 48,306 Total revenue $ 3,950 $ 60,977 $ 1,167 $ 66,094 __________________ 1 Total Advanced Technology Services revenues include $536 of tool revenue. Three Months Ended April 3, 2022 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Total Revenue Wafer Services $ 13,205 $ 8,341 $ — $ 21,546 Advanced Technology Services Time & materials contracts — 18,908 — 18,908 Fixed price contracts — 6,500 — 6,500 Other — — 1,167 1,167 Total Advanced Technology Services 1 — 25,408 1,167 26,575 Total revenue $ 13,205 $ 33,749 $ 1,167 $ 48,121 __________________ 1 Total Advanced Technology Services revenues include $984 of tool revenue. The following table discloses revenue by country as determined based on customer address: Three Months Ended April 2, 2023 April 3, 2022 United States $ 58,202 $ 42,359 Hong Kong 3,019 936 Canada 2,388 1,670 United Kingdom 104 1,781 All others 2,381 1,375 $ 66,094 $ 48,121 The following customers accounted for 10% or more of revenue for the three months ended April 2, 2023 and April 3, 2022: Three Months Ended April 2, 2023 April 3, 2022 Customer A 19 % 16 % Customer B 19 % 40 % Customer E 16 % * 54 % 56 % __________________ * Represents less than 10% of revenue. The loss of a major customer could adversely affect our operating results and financial condition. Deferred Contract Costs We recognized amortization of deferred contract costs in our condensed consolidated statements of operations totaling $746 and $195 for the three months ended April 2, 2023 and April 3, 2022, respectively. Contract Assets Contract assets were $35,605 and $34,625 at April 2, 2023 and January 1, 2023, 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: April 2, 2023 January 1, 2023 Contract Deferred Total Contract Deferred Total Current $ 23,501 $ 4,667 $ 28,168 $ 23,519 $ 4,667 $ 28,186 Long-term 57,296 5,444 62,740 61,356 6,611 67,967 Total $ 80,797 $ 10,111 $ 90,908 $ 84,875 $ 11,278 $ 96,153 The decrease in contract liabilities from January 1, 2023 to April 2, 2023 was primarily the result of completion of specific performance obligations for our customers. Of our total contract liabilities at January 1, 2023, 6% were recognized in revenue during the three months ended April 2, 2023. Of our total contract liabilities at January 2, 2022, 3% were recognized in revenue in the three months ended April 3, 2022. Remaining Performance Obligations As of April 2, 2023, we had approximately $139,152 of remaining performance obligations that had not been fully satisfied on contracts with an original expected duration of one year or more, which were primarily related to Advanced Technology Services contracts. We expect to recognize those revenues as we satisfy our performance obligations, which do not exceed 6.5 years. 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 financing 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	3 Months Ended
	Apr. 02, 2023
Balance Sheet Information [Abstract]
Balance Sheet Information	Balance Sheet Information Certain significant amounts included in our condensed consolidated balance sheets consist of the following: April 2, 2023 January 1, 2023 Accounts receivable: Trade accounts receivable $ 35,578 $ 29,683 Unbilled revenue (contract assets) 35,605 34,625 Allowance for credit losses (4,167) (1,638) Total accounts receivable, net $ 67,016 $ 62,670 April 2, 2023 April 3, 2022 Allowance for credit losses: Balance at beginning of period 1,638 — Add Adoption of Credit Loss Standard (Topic 326) 375 Provision for credit losses 2,154 — Deduct Accounts charged-off — Less recoveries of accounts charged-off — Net account charge-offs (recoveries) — — Balance at end of period $ 4,167 $ — April 2, 2023 January 1, 2023 Inventories: Raw materials $ 4,096 $ 3,991 Work-in-process 122 359 Supplies and spare parts 10,148 9,047 Total inventories—current 14,366 13,397 Supplies and spare parts classified as other assets 2,696 2,605 Total inventories $ 17,062 $ 16,002 April 2, 2023 January 1, 2023 Prepaid expenses and other current assets: Prepaid expenses $ 5,947 $ 2,395 Prepaid inventory — 129 Equipment purchased for customers 1 5,686 5,669 Deferred contract costs 824 2,097 Total prepaid assets and other current assets $ 12,457 $ 10,290 __________________ 1 We acquired equipment for a customer that is being 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. April 2, 2023 January 1, 2023 Property and equipment, net: Land $ 5,396 $ 5,396 Buildings and improvements 88,522 88,141 Machinery and equipment 188,735 187,276 Fixed assets not yet in service 10,215 9,746 Total property and equipment, at cost 1 292,868 290,559 Less: Accumulated depreciation 1 (117,500) (110,644) Total property and equipment, net 1 $ 175,368 $ 179,915 __________________ 1 Includes $13,287 and $12,521 of cost and $(3,287) and $(2,781) of accumulated depreciation associated with capital assets subject to financing leases as of April 2, 2023 and January 1, 2023, respectively. Depreciation expense was $6,856 and $6,031 for the three months ended April 2, 2023 and April 3, 2022, respectively, substantially all of which was classified as cost of revenue. April 2, 2023 January 1, 2023 Intangible assets, net: Software and licensed technology $ 10,489 $ 10,277 Less: Accumulated amortization (5,165) (4,669) Total intangible assets, net $ 5,324 $ 5,608 Intangible assets consist of purchased software and license costs from our acquisition of the business in 2017. Additionally, we have entered into license agreements for third-party software and licensed technology, which also comprise intangible assets. During the three months ended April 2, 2023, we acquired third-party software and licensed technology of $213, which will be amortized over a weighted average estimated life of 3 years. For the three months ended April 2, 2023 and April 3, 2022, amortization of software and licensed technology was $496 and $425, respectively. Remaining estimated aggregate annual amortization expense is as follows for the years ending: Amortization Remainder of 2023 $ 1,289 2024 1,015 2025 814 2026 587 2027 306 Thereafter 1,313 Total $ 5,324 April 2, 2023 January 1, 2023 Other assets: Supplies and spare parts $ 2,696 $ 2,605 Deferred contract costs 102 — Operating lease right-of-use assets 130 141 Other assets 1,358 944 Total other assets $ 4,286 $ 3,690 April 2, 2023 January 1, 2023 Accrued expenses: Accrued compensation $ 7,355 $ 5,705 Licensed technology 500 1,500 Accrued commissions 140 30 Accrued fixed asset expenditures — 20 Accrued royalties 4,574 4,734 Current portion of operating lease liabilities 45 44 Current portion of finance lease liabilities 598 786 Accrued inventory 1,180 1,294 Other accrued expenses 11,872 11,099 Total accrued expenses $ 26,264 $ 25,212 April 2, 2023 January 1, 2023 Other long-term liabilities: Finance lease obligations $ 9,769 $ 9,257 Operating lease liability 88 100 Accrued customer payable 3,727 3,728 Licensed technology — 500 Total other long-term liabilities $ 13,584 $ 13,585

Debt

Debt	3 Months Ended
	Apr. 02, 2023
Debt Disclosure [Abstract]
Debt	Debt The components of debt outstanding at April 2, 2023 and January 1, 2023 are as follows: April 2, 2023 January 1, 2023 Revolver $ 56,132 $ 60,093 Financing (by VIE) 36,558 36,826 Tool financing loan 3,385 3,037 Unamortized debt issuance costs 1 (6,647) (7,103) Total long-term debt, including current maturities 89,428 92,853 Less: Current portion of long-term debt (54,234) (57,672) Total long-term debt, excluding current portion $ 35,194 $ 35,181 __________________ 1 Unamortized debt issuance costs as of April 2, 2023 included $3,905 for the Revolver (as defined below) and $2,742 for the Financing (as defined below). Unamortized debt issuance costs as of January 1, 2023 included $4,277 for the Revolver and $2,826 for the Financing. Revolver The outstanding balance of our revolving line of credit (the “Revolver”) under our Loan and Security Agreement with Siena Lending Group LLC was $56,132 as of April 2, 2023 at an interest rate of 11.1% due in December 2025. Our remaining availability under the Revolver was $19,700 as of April 2, 2023. As of April 2, 2023, we were in compliance with applicable financial covenants of the Revolver and expect to be in compliance with applicable financial covenants over the next twelve months. VIE Financing On September 30, 2020, Oxbow Realty, an affiliate of Oxbow and the VIE which we consolidate (see Note 12 – Related Party Transactions , and Note 13 – Variable Interest Entity ) entered into a loan agreement with Citi Real Estate Fund ("Citi") for $39,000 (the “Financing”) to finance its acquisition of the building and land associated with our primary operating location in Bloomington, Minnesota. 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. The interest rate under the Financing is fixed at 3.44%. The Financing is guaranteed by our principal stockholder, Oxbow, who is also the sole equity holder of Oxbow Realty. Tool Financing Loan In the fourth quarter of 2022, we entered into an agreement to sell a manufacturing tool to an equipment financing lender for $3,100 in the fourth quarter of 2022, and an additional $496 in the first quarter of 2023. We entered into agreements to lease the tool from the lender for combined monthly payments of $101 over 42 months. The agreements provide for a bargain purchase option at the end of the lease term which we intend to exercise. The transactions represent a failed sale leaseback with the manufacturing tool retained on our balance sheet and the proceeds received recorded as a financial obligation. Maturities Future principal payments of our Revolver, consolidated VIE’s financing, and tool financing loan, excluding unamortized debt issuance costs, are as follows: Remainder of 2023 $ 57,696 2024 2,109 2025 2,248 2026 1,670 2027 1,219 Thereafter 31,133 Total $ 96,075

Income Taxes

Income Taxes	3 Months Ended
	Apr. 02, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The effective tax rates for the three months ended April 2, 2023 and April 3, 2022 differ from the statutory tax rates due to state income taxes, permanent tax differences, the tax impact of the vesting of restricted stock units 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 months ended April 2, 2023 and April 3, 2022 was 0.0% and 1.2%, respectively. The income tax rate applied to our pre-tax loss was lower than our statutory tax rate of 21% for both the three months ended April 2, 2023 and April 3, 2022 primarily due to a deferred tax asset valuation allowance. 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 $19,855 was recorded as of April 3, 2022 and January 1, 2023 to reduce our net deferred tax assets to the amount that is more likely than not to be realized. 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 months ended April 2, 2023 and April 3, 2022. In August 2022, the U.S. enacted the Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022 (the "CHIPS" Act). The CHIPS Act provides incentives to semiconductor chip manufacturers in the United States, including providing a 25% manufacturing investment credit for investments in semiconductor manufacturing property placed in service after December 31, 2022, for which construction begins before January 1, 2027. Property investments qualify for the 25% credit if, among other requirements, the property is integral to the operation of an advanced manufacturing facility, defined as having a primary purpose of manufacturing semiconductors or semiconductor manufacturing equipment. Currently, we are evaluating the impact of the CHIPS Act on our business.

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Apr. 02, 2023
Stockholders' Equity Note [Abstract]
Shareholders' Equity	Shareholders’ Equity On September 2, 2022, SkyWater entered into an Open Market Sale Agreement with Jefferies LLC with respect to an at the market offering program (the "ATM Program"). Pursuant to the agreement, the Company may, from time to time, offer and sell up to $100,000 in shares of the Company’s common stock. During the three months ended April 2, 2023, the Company sold approximately 245,289 shares at an average sale price of $11.33 per share, resulting in gross proceeds of approximately $2,779 before deducting sales commissions and fees of approximately $83. The Company used the net proceeds of approximately $2,695 to pay down its Revolver and fund its operations. Subsequent to April 2, 2023, the Company sold approximately 177,065 shares under the Open Market Sale Agreement at an average sale price of $10.80 per share, resulting in gross proceeds of approximately $1,912 before deducting sales commissions and fees of approximately $57. As of April 2, 2023, approximately $93,181 in shares were available for issuance under the Open Market Sale Agreement. Taking into account the sales that settled subsequent to April 2, 2023, approximately $91,268 in shares are available for issuance under the ATM Program as of the date of this report.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Apr. 02, 2023
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation Share-based compensation expense was allocated in the condensed consolidated statements of operations as follows: Three Months Ended April 2, 2023 April 3, 2022 Cost of revenue $ 513 $ 1,040 Research and development 162 207 Selling, general and administrative expenses 1,178 1,760 $ 1,853 $ 3,007

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Apr. 02, 2023
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 were 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 Consideration Balance at April 4, 2021 $ 7,600 Payments (4,018) Change in fair value (2,766) Balance at April 3, 2022 816 Payments (816) Change in fair value — Balance at April 2, 2023 $ — Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 02, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies 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 We have various contracts outstanding with third parties which primarily relate to the completion of a building expansion project to increase manufacturing capacity at our Minnesota facility. We have approximately $4.4 million of contractual commitments outstanding as of April 2, 2023 that we expect to be paid in the remainder of 2023, through cash on hand and operating cash flows. Center for NeoVation On January 25, 2021, we entered into a technology and economic development agreement (the “TED Agreement”), and a lease agreement (the “CfN Lease”) with the government of Osceola County, Florida (“Osceola”) and ICAMR, Inc., a Florida non-profit corporation (“BRIDG”), to lease and operate the Center for NeoVation (the “CfN”), a semiconductor research and development and manufacturing facility that serves as our primary operating location in Kissimmee, Florida. Under the CfN Lease, we agree to bring the plant to full production capacity within 5 years, and then to operate the plant at full capacity for an additional 15 years. At the end of the lease, we will take ownership of the facility. We are responsible for taxes, utilities, insurance, maintenance, operation of the assets, and making capital investments in the facility to bring it to full production capacity. Investments and costs required to bring the facility to full capacity will be substantial. We may terminate the TED Agreement and CfN Lease with 18 months' notice. In the event we terminate the agreements, we are required to continue to operate the CfN 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. Build Back Better Grant

Related Party Transactions

Related Party Transactions	3 Months Ended
	Apr. 02, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions In August 2022, we entered into an agreement with Oxbow Industries, an affiliate of our principal stockholder, Oxbow, to provide funding in an amount up to $12,500, if necessary, to enable the Company to meet its obligations as they become due. In March 2023, the agreement was amended to extend the term through March 2025. No amounts have been provided to the Company under this agreement. 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 stockholder. We subsequently entered into an agreement to lease the land and building back 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. We are also required to make certain customary payments constituting "additional rent," including certain monthly reserve, insurance and tax payments, in accordance with the terms of the lease agreement. Future minimum lease commitments to Oxbow Realty as of April 2, 2023 were as follows (such amounts are eliminated from our condensed consolidated financial statements due to the consolidation of Oxbow Realty, see Note 13 – Variable Interest Entity ): Remainder of 2023 3,703 2024 5,031 2025 5,132 2026 5,234 2027 5,339 Thereafter 78,776 Total lease payments 103,215 Less: imputed interest (75,533) Total $ 27,682

Variable Interest Entity

Variable Interest Entity	3 Months Ended
	Apr. 02, 2023
Condensed Financial Information Disclosure [Abstract]
Variable Interest Entity	Variable Interest Entity Oxbow Realty was established for the purpose of holding real estate and facilitating real estate transactions. This included facilitating the purchase of the land and building of our primary operating location in Bloomington, Minnesota with proceeds from a bank loan from Citi (see Note 6 – Debt ) and managing the leaseback of the land and building to us (see Note 12 – Related Party Transactions ). We determined that Oxbow Realty meets the definition of a VIE under FASB Topic 810, Consolidation, because it lacks sufficient equity to finance its activities. Furthermore, we are the primary beneficiary of Oxbow Realty as we have the power to direct operating and maintenance decisions of our Bloomington, Minnesota facility 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 April 2, 2023 and January 1, 2023. The assets and liabilities are presented prior to consolidation, and thus a portion of these assets and liabilities are eliminated in consolidation. April 2, 2023 January 1, 2023 Cash and cash equivalents $ 40 $ 16 Prepaid expenses 3,315 860 Finance receivable 37,690 37,652 Other assets 256 256 Total assets $ 41,301 $ 38,784 Accounts payable $ 1,655 $ 117 Accrued expenses 2,321 1,581 Debt 36,340 36,778 Total liabilities $ 40,316 $ 38,476 The following table shows the revenue and expenses of Oxbow Realty that are consolidated by us for the three months ended April 2, 2023 and April 3, 2022. We have included these amounts, net of eliminations, in the corresponding tables in the notes to our condensed consolidated financial statements. Three Months Ended April 2, 2023 Three Months Ended April 3, 2022 Revenue $ 1,318 $ 1,260 General and administrative expenses 293 77 Interest expense 318 324 Total expenses 611 401 Net income $ 707 $ 859

Leases

Leases	3 Months Ended
	Apr. 02, 2023
Leases [Abstract]
Leases	Leases SkyWater as the Lessor In March 2020, we executed a contract with a customer that includes an operating lease for the right to use a specified portion of our primary operating location in Bloomington, Minnesota to produce wafers using the customer’s equipment. The contractual amount that relates to revenue from an operating lease was $21,000, and is being recognized over the estimated lease term of 4.5 years . The total amount was prepaid by the customer and recorded as deferred revenue (see Note 4 – Revenue for additional information on revenue recognition and deferred revenue of the operating lease). The carrying value of the facility space utilized by the lessee was approximately $27,000, net of accumulated depreciation of $3,230 and $2,902 as of April 2, 2023 and January 1, 2023, respectively, and is included in property and equipment on our condensed consolidated balance sheets.
Leases	Leases SkyWater as the Lessor In March 2020, we executed a contract with a customer that includes an operating lease for the right to use a specified portion of our primary operating location in Bloomington, Minnesota to produce wafers using the customer’s equipment. The contractual amount that relates to revenue from an operating lease was $21,000, and is being recognized over the estimated lease term of 4.5 years . The total amount was prepaid by the customer and recorded as deferred revenue (see Note 4 – Revenue for additional information on revenue recognition and deferred revenue of the operating lease). The carrying value of the facility space utilized by the lessee was approximately $27,000, net of accumulated depreciation of $3,230 and $2,902 as of April 2, 2023 and January 1, 2023, respectively, and is included in property and equipment on our condensed consolidated balance sheets.
Lesses	Leases SkyWater as the Lessor In March 2020, we executed a contract with a customer that includes an operating lease for the right to use a specified portion of our primary operating location in Bloomington, Minnesota to produce wafers using the customer’s equipment. The contractual amount that relates to revenue from an operating lease was $21,000, and is being recognized over the estimated lease term of 4.5 years . The total amount was prepaid by the customer and recorded as deferred revenue (see Note 4 – Revenue for additional information on revenue recognition and deferred revenue of the operating lease). The carrying value of the facility space utilized by the lessee was approximately $27,000, net of accumulated depreciation of $3,230 and $2,902 as of April 2, 2023 and January 1, 2023, respectively, and is included in property and equipment on our condensed consolidated balance sheets.

Basis of Presentation and Pri_2

Basis of Presentation and Principles of Consolidation (Policies)	3 Months Ended
	Apr. 02, 2023
Organization, Consolidation and Presentation of Financial Statements [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 the variable interest entity (“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 months ended April 2, 2023 and April 3, 2022.
Liquidity and Cash Requirements	Liquidity and Cash Requirements The accompanying condensed consolidated financial statements have been prepared on the basis of the realization of assets and the satisfaction of liabilities and commitments in the normal course of business and do not include any adjustments to the recoverability and classifications of recorded assets and liabilities as a result of uncertainties. For the three months ended April 2, 2023, we incurred losses of $4,273. As of April 2, 2023, we had cash and cash equivalents of $13,840. Our ability to execute our operating strategy is dependent on our ability to maintain liquidity and continue to access capital through our Revolver (as defined in Note 6 – Debt ) and other sources of financing. Our current business plans indicate that we may require additional liquidity to continue our operations for the next 12 months from the issuance of the condensed consolidated financial statements. We have identified specific actions we could take to reduce operating costs and improve cash flow, including reductions in spending and delays in hiring certain personnel. If such actions are taken, it may require us to decrease our level of investment in new products and technologies, or discontinue further expansion of our business. The Company also obtained a support letter from Oxbow Industries, LLC ("Oxbow Industries"), an affiliate of our principal stockholder CMI Oxbow Partners, LLC ("Oxbow"), to provide funding in an amount up to $12,500, if necessary, to enable the Company to meet its obligations as they become due through at least one year beyond the issuance of these financial statements. Management believes that based upon SkyWater's operating forecasts, cash and cash equivalents on hand, available borrowings on the Revolver, potential cost reduction measures, and the support letter from Oxbow Industries, as needed, will provide sufficient liquidity to fund its operations for the next twelve months from the issuance of the condensed consolidated financial statements. Additionally, we could raise additional capital through the ATM Program (as defined below) and seek additional equity or debt financing, including a refinancing and/or expansion of the Revolver, however we cannot provide any assurance that additional funds will be available when needed from any source or, if available, will be available on terms that are acceptable to us. See Note 8 – Shareholders’ Equity for information regarding the ATM Program. SkyWater has based this estimate on assumptions that may prove to be wrong, and its operating plan may change as a result of many factors currently unknown to it. To the extent that our current resources and plans to reduce expenses are insufficient to satisfy our cash requirements, we may need to seek additional equity or debt financing. Our ability to do so depends on prevailing economic conditions and other factors, many of which are beyond our control.
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.
Net Loss Per Share	Net Loss Per Share Basic net loss per common 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 common share is computed by dividing the net loss by the weighted-average number of shares and potentially dilutive securities outstanding for the period determined using the treasury-stock method. Because we reported a net loss for the three months ended April 2, 2023 and April 3, 2022, the number of shares used to calculate diluted net loss per common share is the same as the number of shares 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 April 2, 2023 and April 3, 2022, there were restricted stock units and stock options totaling 2,949,000 and 3,414,000, respectively, excluded from the computation of diluted weighted-average shares outstanding because their inclusion would have been anti-dilutive.
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. SkyWater operates and manages its business as a single operating segment.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), later codified in FASB Accounting Standards Codification ("ASC") Topic 842, Leases ("Topic 842"). Topic 842 was effective for public business entities for fiscal years beginning after December 15, 2018. As an emerging growth company, we adopted Topic 842 on January 3, 2022 for our year ending January 1, 2023. The guidance in Topic 842 supersedes the leasing guidance in Topic 840, Leases. Under Topic 842, lessees are required to recognize lease right of use assets and lease liabilities on the balance sheet. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. We adopted Topic 842, and all related amendments using the "Comparatives Under 840 Option" transition approach. Under this transition approach, we did not restate prior periods, nor restate prior lease disclosures. We also elected certain practical expedients allowed by Topic 842 which, among other things, allowed us to carry forward historical lease classification conclusions previously made under Topic 840 and to exclude from the scope of our application of Topic 842 lease arrangements with terms less than twelve months. The most significant impact of adopting Topic 842 was the recognition of lease right-of-use assets and lease liabilities for operating leases. The adoption of Topic 842 resulted in the recognition of an initial right-of-use asset of $184 and an initial lease liability of $184 for our operating leases. Our accounting for finance leases remained substantially unchanged.

Basis of Presentation and Pri_3

Basis of Presentation and Principles of Consolidation (Tables)	3 Months Ended
	Apr. 02, 2023
Organization, Consolidation and Presentation of Financial Statements [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 months ended April 2, 2023 and April 3, 2022: Three Months Ended April 2, 2023 April 3, 2022 (in thousands, except per share data) Numerator: Net loss attributable to SkyWater Technology, Inc. $ (4,273) $ (16,606) Denominator: Weighted-average common shares outstanding, basic and diluted 43,817 39,862 Net loss per common share, basic and diluted $ (0.10) $ (0.42)

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Apr. 02, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregated Revenue	The following table discloses revenue by product type and the timing of recognition of revenue for transfer of goods and services to customers: Three Months Ended April 2, 2023 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Total Revenue Wafer Services $ 3,950 $ 13,838 $ — $ 17,788 Advanced Technology Services Time & materials contracts — 27,831 — 27,831 Fixed price contracts — 19,308 — 19,308 Other — — 1,167 1,167 Total Advanced Technology Services 1 — 47,139 1,167 48,306 Total revenue $ 3,950 $ 60,977 $ 1,167 $ 66,094 __________________ 1 Total Advanced Technology Services revenues include $536 of tool revenue. Three Months Ended April 3, 2022 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Total Revenue Wafer Services $ 13,205 $ 8,341 $ — $ 21,546 Advanced Technology Services Time & materials contracts — 18,908 — 18,908 Fixed price contracts — 6,500 — 6,500 Other — — 1,167 1,167 Total Advanced Technology Services 1 — 25,408 1,167 26,575 Total revenue $ 13,205 $ 33,749 $ 1,167 $ 48,121 __________________
Schedule of Revenue by Country	The following table discloses revenue by country as determined based on customer address: Three Months Ended April 2, 2023 April 3, 2022 United States $ 58,202 $ 42,359 Hong Kong 3,019 936 Canada 2,388 1,670 United Kingdom 104 1,781 All others 2,381 1,375 $ 66,094 $ 48,121
Schedule of Revenue by Major Customers by Reporting Segments	The following customers accounted for 10% or more of revenue for the three months ended April 2, 2023 and April 3, 2022: Three Months Ended April 2, 2023 April 3, 2022 Customer A 19 % 16 % Customer B 19 % 40 % Customer E 16 % * 54 % 56 % __________________ * Represents less than 10% of revenue.
Schedule of Contract Liabilities	The contract liabilities and other significant components of deferred revenue are as follows: April 2, 2023 January 1, 2023 Contract Deferred Total Contract Deferred Total Current $ 23,501 $ 4,667 $ 28,168 $ 23,519 $ 4,667 $ 28,186 Long-term 57,296 5,444 62,740 61,356 6,611 67,967 Total $ 80,797 $ 10,111 $ 90,908 $ 84,875 $ 11,278 $ 96,153

Balance Sheet Information (Tabl

Balance Sheet Information (Tables)	3 Months Ended
	Apr. 02, 2023
Balance Sheet Information [Abstract]
Schedule of Accounts Receivable, Net	April 2, 2023 January 1, 2023 Accounts receivable: Trade accounts receivable $ 35,578 $ 29,683 Unbilled revenue (contract assets) 35,605 34,625 Allowance for credit losses (4,167) (1,638) Total accounts receivable, net $ 67,016 $ 62,670
Schedule of Allowance for Credit Loss	April 2, 2023 April 3, 2022 Allowance for credit losses: Balance at beginning of period 1,638 — Add Adoption of Credit Loss Standard (Topic 326) 375 Provision for credit losses 2,154 — Deduct Accounts charged-off — Less recoveries of accounts charged-off — Net account charge-offs (recoveries) — — Balance at end of period $ 4,167 $ —
Schedule of Inventories	April 2, 2023 January 1, 2023 Inventories: Raw materials $ 4,096 $ 3,991 Work-in-process 122 359 Supplies and spare parts 10,148 9,047 Total inventories—current 14,366 13,397 Supplies and spare parts classified as other assets 2,696 2,605 Total inventories $ 17,062 $ 16,002
Schedule of Prepaid Expenses and Other Current Assets	April 2, 2023 January 1, 2023 Prepaid expenses and other current assets: Prepaid expenses $ 5,947 $ 2,395 Prepaid inventory — 129 Equipment purchased for customers 1 5,686 5,669 Deferred contract costs 824 2,097 Total prepaid assets and other current assets $ 12,457 $ 10,290 __________________ 1 We acquired equipment for a customer that is being 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	April 2, 2023 January 1, 2023 Property and equipment, net: Land $ 5,396 $ 5,396 Buildings and improvements 88,522 88,141 Machinery and equipment 188,735 187,276 Fixed assets not yet in service 10,215 9,746 Total property and equipment, at cost 1 292,868 290,559 Less: Accumulated depreciation 1 (117,500) (110,644) Total property and equipment, net 1 $ 175,368 $ 179,915 __________________
Schedule of Intangible Assets	April 2, 2023 January 1, 2023 Intangible assets, net: Software and licensed technology $ 10,489 $ 10,277 Less: Accumulated amortization (5,165) (4,669) Total intangible assets, net $ 5,324 $ 5,608
Schedule of Remaining Estimated Aggregate Annual Amortization Expense	Remaining estimated aggregate annual amortization expense is as follows for the years ending: Amortization Remainder of 2023 $ 1,289 2024 1,015 2025 814 2026 587 2027 306 Thereafter 1,313 Total $ 5,324
Schedule of Other Assets	April 2, 2023 January 1, 2023 Other assets: Supplies and spare parts $ 2,696 $ 2,605 Deferred contract costs 102 — Operating lease right-of-use assets 130 141 Other assets 1,358 944 Total other assets $ 4,286 $ 3,690
Schedule of Accrued Expenses	April 2, 2023 January 1, 2023 Accrued expenses: Accrued compensation $ 7,355 $ 5,705 Licensed technology 500 1,500 Accrued commissions 140 30 Accrued fixed asset expenditures — 20 Accrued royalties 4,574 4,734 Current portion of operating lease liabilities 45 44 Current portion of finance lease liabilities 598 786 Accrued inventory 1,180 1,294 Other accrued expenses 11,872 11,099 Total accrued expenses $ 26,264 $ 25,212
Schedule of Other Noncurrent Liabilities	April 2, 2023 January 1, 2023 Other long-term liabilities: Finance lease obligations $ 9,769 $ 9,257 Operating lease liability 88 100 Accrued customer payable 3,727 3,728 Licensed technology — 500 Total other long-term liabilities $ 13,584 $ 13,585

Debt (Tables)

Debt (Tables)	3 Months Ended
	Apr. 02, 2023
Debt Disclosure [Abstract]
Schedule of Debt Outstanding	The components of debt outstanding at April 2, 2023 and January 1, 2023 are as follows: April 2, 2023 January 1, 2023 Revolver $ 56,132 $ 60,093 Financing (by VIE) 36,558 36,826 Tool financing loan 3,385 3,037 Unamortized debt issuance costs 1 (6,647) (7,103) Total long-term debt, including current maturities 89,428 92,853 Less: Current portion of long-term debt (54,234) (57,672) Total long-term debt, excluding current portion $ 35,194 $ 35,181 __________________ 1 Unamortized debt issuance costs as of April 2, 2023 included $3,905 for the Revolver (as defined below) and $2,742 for the Financing (as defined below). Unamortized debt issuance costs as of January 1, 2023 included $4,277 for the Revolver and $2,826 for the Financing.
Schedule of Future Principal Payments	Future principal payments of our Revolver, consolidated VIE’s financing, and tool financing loan, excluding unamortized debt issuance costs, are as follows: Remainder of 2023 $ 57,696 2024 2,109 2025 2,248 2026 1,670 2027 1,219 Thereafter 31,133 Total $ 96,075

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Apr. 02, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Share-based Compensation Expense	Share-based compensation expense was allocated in the condensed consolidated statements of operations as follows: Three Months Ended April 2, 2023 April 3, 2022 Cost of revenue $ 513 $ 1,040 Research and development 162 207 Selling, general and administrative expenses 1,178 1,760 $ 1,853 $ 3,007

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Apr. 02, 2023
Fair Value Disclosures [Abstract]
Schedule of Change in Level 3 Assets Measured at Fair Value On a Recurring Basis	Level 3 inputs were 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 Consideration Balance at April 4, 2021 $ 7,600 Payments (4,018) Change in fair value (2,766) Balance at April 3, 2022 816 Payments (816) Change in fair value — Balance at April 2, 2023 $ —

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Apr. 02, 2023
Related Party Transactions [Abstract]
Schedule of Future Minimum Lease Commitments	Future minimum lease commitments to Oxbow Realty as of April 2, 2023 were as follows (such amounts are eliminated from our condensed consolidated financial statements due to the consolidation of Oxbow Realty, see Note 13 – Variable Interest Entity ): Remainder of 2023 3,703 2024 5,031 2025 5,132 2026 5,234 2027 5,339 Thereafter 78,776 Total lease payments 103,215 Less: imputed interest (75,533) Total $ 27,682

Variable Interest Entity (Table

Variable Interest Entity (Tables)	3 Months Ended
	Apr. 02, 2023
Condensed Financial Information Disclosure [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 April 2, 2023 and January 1, 2023. The assets and liabilities are presented prior to consolidation, and thus a portion of these assets and liabilities are eliminated in consolidation. April 2, 2023 January 1, 2023 Cash and cash equivalents $ 40 $ 16 Prepaid expenses 3,315 860 Finance receivable 37,690 37,652 Other assets 256 256 Total assets $ 41,301 $ 38,784 Accounts payable $ 1,655 $ 117 Accrued expenses 2,321 1,581 Debt 36,340 36,778 Total liabilities $ 40,316 $ 38,476
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 months ended April 2, 2023 and April 3, 2022. We have included these amounts, net of eliminations, in the corresponding tables in the notes to our condensed consolidated financial statements. Three Months Ended April 2, 2023 Three Months Ended April 3, 2022 Revenue $ 1,318 $ 1,260 General and administrative expenses 293 77 Interest expense 318 324 Total expenses 611 401 Net income $ 707 $ 859

Basis of Presentation and Pri_4

Basis of Presentation and Principles of Consolidation - Narrative (Details) $ in Thousands				3 Months Ended
	Apr. 02, 2023 USD ($) shares	Aug. 17, 2022 USD ($)	Apr. 03, 2022 shares	Apr. 02, 2023 USD ($) segment	Apr. 03, 2022 USD ($)	Jan. 01, 2023 USD ($)
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Net income (loss) attributable to SkyWater Technology, Inc.				$ (4,273)	$ (16,606)
Cash and cash equivalents	$ 13,840			$ 13,840		$ 30,025
Number of operating segments | segment				1
Restricted Stock Units and Stock Options
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Units excluded from computation (in shares) | shares	2,949,000		3,414,000
Funding to Meet Obligations as they Become Due | Oxbow
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Funding agreement with related party (up to)		$ 12,500

Basis of Presentation and Pri_5

Basis of Presentation and Principles of Consolidation - Schedule of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Numerator:
Net loss attributable to SkyWater Technology, Inc.	$ (4,273)	$ (16,606)
Denominator:
Weighted-average common shares outstanding, basic (in shares)	43,817,417	39,861,688
Weighted-average common shares outstanding, diluted (in shares)	43,817,417	39,861,688
Net loss per common share, basic (in USD per share)	$ (0.10)	$ (0.42)
Net loss per common share, diluted (in USD per share)	$ (0.10)	$ (0.42)

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 02, 2023	Jan. 01, 2023	Apr. 03, 2022	Jan. 03, 2022	Jan. 02, 2022
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Operating lease right-of-use assets	$ 130		$ 141		$ 184
Operating Lease, Liability					$ 184
Stockholders' equity, including portion attributable to noncontrolling interest	57,472		53,977	$ 47,509		$ 59,927
Retained Earnings (Accumulated Deficit)
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Stockholders' equity, including portion attributable to noncontrolling interest	$ (98,720)		(94,072)	$ (71,085)		$ (54,479)
Cumulative Effect, Period of Adoption, Adjustment
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Stockholders' equity, including portion attributable to noncontrolling interest			(375)
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings (Accumulated Deficit)
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Stockholders' equity, including portion attributable to noncontrolling interest		$ 375	$ (375)

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022	Jan. 01, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Amortization of deferred contract costs	$ 746	$ 195
Contract assets	$ 35,605		$ 34,625
Contract liabilities recognized in revenue (as a percent)	6,000%	3,000%
Wafer Services
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue recognized	$ 8,230

Revenue - Schedule of Disaggreg

Revenue - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Disaggregation of Revenue [Line Items]
Lease Revenue	$ 1,167	$ 1,167
Total Revenue	66,094	48,121
Wafer Services
Disaggregation of Revenue [Line Items]
Lease Revenue	0	0
Total Revenue	17,788	21,546
Time & materials contracts
Disaggregation of Revenue [Line Items]
Lease Revenue	0	0
Total Revenue	27,831	18,908
Fixed price contracts
Disaggregation of Revenue [Line Items]
Lease Revenue	0	0
Total Revenue	19,308	6,500
Other
Disaggregation of Revenue [Line Items]
Lease Revenue	1,167	1,167
Total Revenue	1,167	1,167
Advanced Technology Services
Disaggregation of Revenue [Line Items]
Lease Revenue	1,167	1,167
Total Revenue	48,306	26,575
Tool
Disaggregation of Revenue [Line Items]
Total Revenue	536	984
Point-in-Time
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	3,950	13,205
Point-in-Time | Wafer Services
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	3,950	13,205
Point-in-Time | Time & materials contracts
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	0	0
Point-in-Time | Fixed price contracts
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	0	0
Point-in-Time | Other
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	0	0
Point-in-Time | Advanced Technology Services
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	0	0
Over Time
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	60,977	33,749
Over Time | Wafer Services
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	13,838	8,341
Over Time | Time & materials contracts
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	27,831	18,908
Over Time | Fixed price contracts
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	19,308	6,500
Over Time | Other
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	0	0
Over Time | Advanced Technology Services
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	$ 47,139	$ 25,408

Revenue - Schedule of Revenue b

Revenue - Schedule of Revenue by Country (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 66,094	$ 48,121
United States
Disaggregation of Revenue [Line Items]
Revenues	58,202	42,359
Hong Kong
Disaggregation of Revenue [Line Items]
Revenues	3,019	936
Canada
Disaggregation of Revenue [Line Items]
Revenues	2,388	1,670
United Kingdom
Disaggregation of Revenue [Line Items]
Revenues	104	1,781
All others
Disaggregation of Revenue [Line Items]
Revenues	$ 2,381	$ 1,375

Revenue - Schedule of Revenue_2

Revenue - Schedule of Revenue by Major Customers (Details) - Revenue Benchmark - Customer Concentration Risk	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Customer A
Disaggregation of Revenue [Line Items]
Customer percentage of revenue (as a percent)	19%	16%
Customer B
Disaggregation of Revenue [Line Items]
Customer percentage of revenue (as a percent)	19%	40%
Customer E
Disaggregation of Revenue [Line Items]
Customer percentage of revenue (as a percent)	16%
Major Customers
Disaggregation of Revenue [Line Items]
Customer percentage of revenue (as a percent)	54%	56%

Revenue - Schedule of Contract

Revenue - Schedule of Contract Liabilities (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Revenue from Contract with Customer [Abstract]
Current contract liabilities	$ 23,501	$ 23,519
Long-term contract liabilities	57,296	61,356
Total contract liabilities	80,797	84,875
Current deferred lease revenue	4,667	4,667
Long-term deferred lease revenue	5,444	6,611
Total deferred revenue	10,111	11,278
Total current deferred revenue	28,168	28,186
Total long-term deferred revenue	62,740	67,967
Total deferred revenue	$ 90,908	$ 96,153

Revenue - Schedule of Performan

Revenue - Schedule of Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-03 $ in Thousands	Apr. 02, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue obligation amount	$ 139,152
Revenue recognition period	6 years 6 months

Balance Sheet Information - Sum

Balance Sheet Information - Summary of Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023	Apr. 03, 2022	Jan. 02, 2022
Balance Sheet Information [Abstract]
Trade accounts receivable	$ 35,578	$ 29,683
Unbilled revenue (contract assets)	35,605	34,625
Allowance for credit losses	(4,167)	(1,638)	$ 0	$ 0
Total accounts receivable, net	$ 67,016	$ 62,670

Balance Sheet Information - S_2

Balance Sheet Information - Summary of Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Allowance for credit losses:
Balance at beginning of period	$ 1,638	$ 0
Provision for credit losses	2,154	0
Accounts charged-off	0
Less recoveries of accounts charged-off	0
Net account charge-offs (recoveries)	0	0
Balance at end of period	4,167	$ 0
Cumulative Effect, Period of Adoption, Adjustment
Allowance for credit losses:
Balance at beginning of period	$ 375

Balance Sheet Information - S_3

Balance Sheet Information - Summary of Inventories (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Balance Sheet Information [Abstract]
Raw materials	$ 4,096	$ 3,991
Work-in-process	122	359
Supplies and spare parts	10,148	9,047
Total inventories—current	14,366	13,397
Supplies and spare parts classified as other assets	2,696	2,605
Total inventories	$ 17,062	$ 16,002

Balance Sheet Information - S_4

Balance Sheet Information - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Balance Sheet Information [Abstract]
Prepaid expenses	$ 5,947	$ 2,395
Prepaid inventory	0	129
Equipment purchased for customers	5,686	5,669
Deferred contract costs	824	2,097
Prepaid expenses and other current assets	$ 12,457	$ 10,290

Balance Sheet Information - S_5

Balance Sheet Information - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Property, Plant and Equipment [Line Items]
Total property and equipment, at cost	$ 292,868	$ 290,559
Less: Accumulated depreciation	(117,500)	(110,644)
Total property and equipment, net	175,368	179,915
Finance lease, right-of-use asset, before accumulated amortization	13,287	12,521
Finance lease, right-of-use asset, accumulated amortization	(3,287)	(2,781)
Land
Property, Plant and Equipment [Line Items]
Total property and equipment, at cost	5,396	5,396
Buildings and improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, at cost	88,522	88,141
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, at cost	188,735	187,276
Fixed assets not yet in service
Property, Plant and Equipment [Line Items]
Total property and equipment, at cost	$ 10,215	$ 9,746

Balance Sheet Information - Nar

Balance Sheet Information - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 6,856	$ 6,031
Software and licensed technology
Property, Plant and Equipment [Line Items]
Acquired third-party intangible assets	$ 213
Weighted average estimated life of acquired intangibles (in years)	3 years
Amortization of intangible assets	$ 496	$ 425

Balance Sheet Information - S_6

Balance Sheet Information - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, net	$ 5,324	$ 5,608
Software and licensed technology
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, at cost	10,489	10,277
Less: Accumulated amortization	(5,165)	(4,669)
Total intangible assets, net	$ 5,324	$ 5,608

Balance Sheet Information - S_7

Balance Sheet Information - Summary of Remaining Estimated Aggregate Annual Amortization Expense (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Balance Sheet Information [Abstract]
Remainder of 2023	$ 1,289
2024	1,015
2025	814
2026	587
2027	306
Thereafter	1,313
Total intangible assets, net	$ 5,324	$ 5,608

Balance Sheet Information - S_8

Balance Sheet Information - Summary of Other Assets (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023	Jan. 03, 2022
Balance Sheet Information [Abstract]
Supplies and spare parts	$ 2,696	$ 2,605
Deferred contract costs	102	0
Operating lease right-of-use assets	130	141	$ 184
Other assets	1,358	944
Total other assets	$ 4,286	$ 3,690

Balance Sheet Information - S_9

Balance Sheet Information - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Balance Sheet Information [Abstract]
Accrued compensation	$ 7,355	$ 5,705
Licensed technology	500	1,500
Accrued commissions	140	30
Accrued fixed asset expenditures	0	20
Accrued royalties	4,574	4,734
Current portion of operating lease liabilities	45	44
Current portion of finance lease liabilities	598	786
Accrued inventory	1,180	1,294
Other accrued expenses	11,872	11,099
Total accrued expenses	$ 26,264	$ 25,212

Balance Sheet Information - Sch

Balance Sheet Information - Schedule of Other Long-term Liabilities (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Balance Sheet Information [Abstract]
Finance lease obligations	$ 9,769	$ 9,257
Operating lease liability	88	100
Accrued customer payable	3,727	3,728
Licensed technology	0	500
Other long-term liabilities	$ 13,584	$ 13,585

Debt - Summary of Debt Outstand

Debt - Summary of Debt Outstanding (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023	Dec. 28, 2022
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ (6,647)	$ (7,103)
Total long-term debt, including current maturities	89,428	92,853
Less: Current portion of long-term debt	(54,234)	(57,672)
Total long-term debt, excluding current portion	35,194	35,181
VIEs
Debt Instrument [Line Items]
Total long-term debt, including current maturities	36,340	36,778
Revolver
Debt Instrument [Line Items]
Long-term debt		60,093
Unamortized debt issuance costs		4,277	$ 3,905
Financing loan
Debt Instrument [Line Items]
Long-term debt	3,385	3,037
Financing loan | VIEs
Debt Instrument [Line Items]
Long-term debt	36,558	36,826
Unamortized debt issuance costs	$ 2,742	$ 2,826

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Jan. 01, 2023	Sep. 30, 2020
Debt Instrument [Line Items]
Proceeds from sale of other productive assets	$ 496	$ 3,100
Sale leaseback transaction, monthly payments	$ 101
Sale leaseback transaction, lease terms	42 months
Revolver
Debt Instrument [Line Items]
Outstanding balance of loan		60,093
Revolver | Wells Fargo Bank
Debt Instrument [Line Items]
Outstanding balance of loan	$ 56,132
Debt instrument, interest rate (as a percent)	11.10%
Remaining balance of revolver	$ 19,700
Term Loan
Debt Instrument [Line Items]
Outstanding balance of loan	3,385	3,037
Term Loan | VIEs
Debt Instrument [Line Items]
Outstanding balance of loan	36,558	$ 36,826
Debt instrument, interest rate (as a percent)			3.44%
Principal amount of debt			$ 39,000
Periodic payment installments	$ 194
Debt instrument, term (in years)	10 years

Debt - Summary of Future Princi

Debt - Summary of Future Principal Payments (Details) $ in Thousands	Apr. 02, 2023 USD ($)
Debt Instruments [Abstract]
2023	$ 57,696
2024	2,109
2025	2,248
2026	1,670
2027	1,219
Thereafter	31,133
Total	$ 96,075

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022	Jan. 01, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate (as a percent)	0%	1.20%
Federal statutory income tax rate (as a percent)	21%	21%
Valuation allowance		$ (19,855,000)	$ (19,855,000)
Penalties and interest expense	$ 0	$ 0

Shareholders' Equity (Details)

Shareholders' Equity (Details) - Jefferies LLC - Open Market Sales - USD ($)		1 Months Ended		3 Months Ended
	Sep. 02, 2022	May 12, 2023	May 10, 2023	Apr. 02, 2023
Class of Stock [Line Items]
Sale of stock, ATM authorized amount	$ 100,000,000
Shares issued in public offering (in shares)				245,289
Public offering price per share (in USD per share)				$ 11.33
Gross proceeds from issuance or sale of equity				$ 2,779,000
Net proceeds from issuance or sale of equity				2,695,000
Stock offering costs				$ 83,000
Sale of stock, remaining authorized shares (in shares)				93,181,000
Subsequent Event
Class of Stock [Line Items]
Shares issued in public offering (in shares)		177,065
Public offering price per share (in USD per share)		$ 10.80
Gross proceeds from issuance or sale of equity		$ 1,912,000
Stock offering costs		$ 57,000
Sale of stock, remaining authorized shares (in shares)			91,268,000

Share-Based Compensation - Sche

Share-Based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	$ 1,853	$ 3,007
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	513	1,040
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	162	207
Selling, general and administrative expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	$ 1,178	$ 1,760

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Contingent Consideration - USD ($) $ in Thousands	12 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Contingent consideration balance at beginning of period	$ 816	$ 7,600
Payments	(816)	(4,018)
Change in fair value	0	(2,766)
Contingent consideration balance at end of period	$ 0	$ 816

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Jan. 25, 2021	Apr. 02, 2023	Feb. 28, 2023
Commitments And Contingencies [Line Items]
Contractual commitments outstanding		$ 4,400
Matching Share of Osceola Project Costs
Commitments And Contingencies [Line Items]
Total amount committed			$ 9,100
Matching share commitment (as a percent)			20%
Maximum | Matching Share of Osceola Project Costs
Commitments And Contingencies [Line Items]
Funding commitment per single calendar quarter			$ 1,000
Center For NeoVation
Commitments And Contingencies [Line Items]
Contract, termination period	18 months
Center For NeoVation | Maximum
Commitments And Contingencies [Line Items]
Contract termination fee	$ 15,000
Term To Bring The Plant To Full Production Capacity | Center For NeoVation
Commitments And Contingencies [Line Items]
Lease term	5 years
Term To Operate The Plant At Full Capacity | Center For NeoVation
Commitments And Contingencies [Line Items]
Lease term	15 years

Related Party Transactions - Na

Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands			3 Months Ended
	Aug. 17, 2022	Sep. 29, 2020	Apr. 02, 2023	Apr. 03, 2022
Related Party Transaction [Line Items]
Lease payment per month			$ 12	$ 12
Oxbow Realty
Related Party Transaction [Line Items]
Lease payment per month		$ 394
Lease term		20 years
Annual percentage increase in monthly lease payments (as a percent)		2%
Funding to Meet Obligations as they Become Due | Oxbow
Related Party Transaction [Line Items]
Funding agreement with related party (up to)	$ 12,500

Related Party Transactions - Su

Related Party Transactions - Summary of Minimum Lease Payments Sale Lease back Transactions (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 03, 2022
Related Party Transaction [Line Items]
Total		$ 184
Oxbow Realty
Related Party Transaction [Line Items]
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year	$ 3,703
Lessee, Operating Lease, Liability, to be Paid, Year One	5,031
Lessee, Operating Lease, Liability, to be Paid, Year Two	5,132
Lessee, Operating Lease, Liability, to be Paid, Year Three	5,234
Lessee, Operating Lease, Liability, to be Paid, Year Four	5,339
Lessee, Operating Lease, Liability, To Be Paid, After Year Four	78,776
Lessee, Operating Lease, Liability, to be Paid	103,215
Less: imputed interest	(75,533)
Total	$ 27,682

Variable Interest Entity - Summ

Variable Interest Entity - Summary of Condensed Balance Sheet Statements (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Condensed Balance Sheet Statements, Captions [Line Items]
Cash and cash equivalents	$ 13,840	$ 30,025
Total assets	292,826	305,764
Debt	89,428	92,853
Total liabilities	235,354	251,787
VIEs
Condensed Balance Sheet Statements, Captions [Line Items]
Cash and cash equivalents	40	16
Prepaid expenses	3,315	860
Finance receivable	37,690	37,652
Other assets	256	256
Total assets	41,301	38,784
Accounts payable	1,655	117
Accrued expenses	2,321	1,581
Debt	36,340	36,778
Total liabilities	$ 40,316	$ 38,476

Variable Interest Entity - Su_2

Variable Interest Entity - Summary of Condensed Income Statements (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Condensed Income Statements, Captions [Line Items]
Interest expense	$ 2,471	$ 1,029
Net income (loss) attributable to SkyWater Technology, Inc.	(4,273)	(16,606)
VIEs
Condensed Income Statements, Captions [Line Items]
Revenue	1,318	1,260
General and administrative expenses	293	77
Interest expense	318	324
Total expenses	611	401
Net income (loss) attributable to SkyWater Technology, Inc.	$ 707	$ 859

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023	Mar. 31, 2020
Leases [Abstract]
Revenue from operating lease			$ 21,000
Estimated lease term (in years)			4 years 6 months
Carrying value, net of lease	$ 27,000	$ 27,000
Accumulated depreciation of carrying value of lease	$ 3,230	$ 2,902