SkyWater Technology (SKYT) 10-Q 10 Aug 23 2023 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jul. 02, 2023	Aug. 07, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 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		46,283,552
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001819974
Current Fiscal Year End Date	--12-31
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Current assets:
Cash and cash equivalents	$ 16,178	$ 30,025
Accounts receivable, net	77,085	62,670
Inventories	16,024	13,397
Prepaid expenses and other current assets	9,069	10,290
Income tax receivable	107	169
Total current assets	118,463	116,551
Property and equipment, net	169,540	179,915
Intangible assets, net	5,216	5,608
Other assets	5,517	3,690
Total assets	298,736	305,764
Current liabilities:
Current portion of long-term debt	1,964	1,855
Accounts payable	14,182	21,102
Accrued expenses	32,112	25,212
Short-term financing, net of unamortized debt issuance costs	54,233	55,817
Deferred revenue - current	27,943	28,186
Total current liabilities	130,434	132,172
Long-term liabilities:
Long-term debt, less current portion and net of unamortized debt issuance costs	34,778	35,181
Long-term incentive plan	0	1,643
Deferred revenue - long-term	59,839	67,967
Deferred income tax liability, net	1,202	1,239
Other long-term liabilities	9,601	13,585
Total long-term liabilities	105,420	119,615
Total liabilities	235,854	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; 45,399,761 and 43,704,876 shares issued and outstanding)	454	437
Additional paid-in capital	166,179	147,304
Accumulated deficit	(107,310)	(94,072)
Total shareholders’ equity, SkyWater Technology, Inc.	59,323	53,669
Noncontrolling interests	3,559	308
Total shareholders’ equity	62,882	53,977
Total liabilities and shareholders’ equity	$ 298,736	$ 305,764

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jul. 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)	45,399,761	43,704,876
Common stock, shares outstanding (in shares)	45,399,761	43,704,876

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Income Statement [Abstract]
Revenue	$ 69,811	$ 47,407	$ 135,905	$ 95,528
Cost of revenue	53,144	45,327	102,770	94,388
Gross profit	16,667	2,080	33,135	1,140
Research and development	2,396	2,361	5,063	4,643
Selling, general and administrative expense	17,820	10,795	32,716	22,485
Operating income (loss)	(3,549)	(11,076)	(4,644)	(25,988)
Interest expense	(2,950)	(1,040)	(5,421)	(2,069)
Income (loss) before income taxes	(6,499)	(12,116)	(10,065)	(28,057)
Income tax expense (benefit)	25	63	25	(131)
Net income (loss)	(6,524)	(12,179)	(10,090)	(27,926)
Less: net income attributable to noncontrolling interests	2,066	826	2,773	1,685
Net income (loss) attributable to SkyWater Technology, Inc.	$ (8,590)	$ (13,005)	$ (12,863)	$ (29,611)
Net income (loss) per share attributable to common shareholders, basic (in USD per share)	$ (0.19)	$ (0.32)	$ (0.29)	$ (0.74)
Net income (loss) per share attributable to common shareholders, diluted (in USD per share)	$ (0.19)	$ (0.32)	$ (0.29)	$ (0.74)
Weighted average shares used in computing net income (loss) per common share, basic (in shares)	44,743,269	40,203,050	44,280,343	40,031,615
Weighted average shares used in computing net income (loss) per common share, diluted (in shares)	44,743,269	40,203,050	44,280,343	40,031,615

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders’ Equity (Deficit) - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	At The Market Offering	Total Shareholders’ Equity, SkyWater Technology, Inc.	Total Shareholders’ Equity, SkyWater Technology, Inc. Cumulative Effect, Period of Adoption, Adjustment	Total Shareholders’ Equity, SkyWater Technology, Inc. At The Market Offering	Preferred Stock	Common Stock	Common Stock At The Market Offering	Additional Paid-in Capital	Additional Paid-in Capital At The Market Offering	Retained Earnings (Accumulated Deficit)	Retained Earnings (Accumulated Deficit) Cumulative Effect, Period of Adoption, Adjustment	Noncontrolling 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	5,050			5,050						5,050
Issuance of common stock pursuant to equity compensation plans (in shares)								614,000
Issuance of common stock pursuant to equity compensation plans	1,445			1,445				$ 6		1,439
Net distribution to VIE member	(867)													(867)
Net income (loss)	(27,926)			(29,611)								(29,611)		1,685
Ending balance of preferred stock (in shares) at Jul. 03, 2022							0
Ending balance of common stock (in shares) at Jul. 03, 2022								40,450,000
Ending balance at Jul. 03, 2022	37,629			38,011			$ 0	$ 404		121,697		(84,090)		(382)
Beginning balance of preferred stock (in shares) at Apr. 03, 2022							0
Beginning balance of common stock (in shares) at Apr. 03, 2022								39,905,000
Beginning balance at Apr. 03, 2022	47,509			48,187			$ 0	$ 399		118,873		(71,085)		(678)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to equity compensation plans (in shares)								545,000
Issuance of common stock pursuant to equity compensation plans	786			786				$ 5		781
Stock-based compensation	2,043			2,043						2,043
Net distribution to VIE member	(530)													(530)
Net income (loss)	(12,179)			(13,005)								(13,005)		826
Ending balance of preferred stock (in shares) at Jul. 03, 2022							0
Ending balance of common stock (in shares) at Jul. 03, 2022								40,450,000
Ending balance at Jul. 03, 2022	$ 37,629			38,011			$ 0	$ 404		121,697		(84,090)		(382)
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)									1,156,000
Issuance of common stock			$ 12,153			$ 12,153			$ 12		$ 12,141
Issuance of common stock pursuant to equity compensation plans (in shares)								539,000
Issuance of common stock pursuant to equity compensation plans	2,919			2,919				$ 5		2,914
Stock-based compensation	3,820			3,820						3,820
Net contribution from VIE member	478													478
Net income (loss)	$ (10,090)			(12,863)								(12,863)		2,773
Ending balance of preferred stock (in shares) at Jul. 02, 2023	0						0
Ending balance of common stock (in shares) at Jul. 02, 2023	45,399,761							45,400,000
Ending balance at Jul. 02, 2023	$ 62,882			59,323			$ 0	$ 454		166,179		(107,310)		3,559
Beginning balance of preferred stock (in shares) at Apr. 02, 2023							0
Beginning balance of common stock (in shares) at Apr. 02, 2023								44,280,000
Beginning balance at Apr. 02, 2023	57,472			56,487			$ 0	$ 443		154,764		(98,720)		985
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)								911,000
Issuance of common stock	9,457			9,457				$ 9		9,448
Issuance of common stock pursuant to equity compensation plans (in shares)								209,000
Issuance of common stock pursuant to equity compensation plans	2			2				$ 2
Stock-based compensation	1,967			1,967						1,967
Net contribution from VIE member	508													508
Net income (loss)	$ (6,524)			(8,590)								(8,590)		2,066
Ending balance of preferred stock (in shares) at Jul. 02, 2023	0						0
Ending balance of common stock (in shares) at Jul. 02, 2023	45,399,761							45,400,000
Ending balance at Jul. 02, 2023	$ 62,882			$ 59,323			$ 0	$ 454		$ 166,179		$ (107,310)		$ 3,559

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022
Cash flows from operating activities:
Net income (loss)	$ (10,090)	$ (27,926)
Adjustments to reconcile net income (loss) to net cash flows used in operating activities:
Depreciation and amortization	14,559	13,657
Amortization of debt issuance costs included in interest expense	876	348
Long-term incentive and stock-based compensation	3,820	5,334
Cash paid for contingent consideration in excess of initial valuation	0	(375)
Deferred income taxes	(37)	(137)
Cash paid for operating leases	(12)	0
Cash paid for interest on finance leases	(415)	0
Provision for credit losses	3,602	0
Changes in operating assets and liabilities:
Accounts receivable	(17,425)	(1,024)
Inventories	(2,627)	(3,865)
Prepaid expenses and other assets	(606)	(751)
Accounts payable and accrued expenses	(1,344)	6,047
Deferred revenue	(8,371)	(5,170)
Income tax receivable and payable	62	0
Net cash used in operating activities	(18,008)	(13,862)
Cash flows from investing activities:
Purchase of software and licenses	(612)	(400)
Purchases of property and equipment	(2,608)	(5,463)
Net cash used in investing activities	(3,220)	(5,863)
Cash flows from financing activities:
Draws on revolving line of credit	121,350	0
Paydowns of revolving line of credit	(123,810)	0
Net proceeds on Revolver	0	18,946
Net proceeds from tool financing	496	0
Repayment of VIE financing	(791)	(509)
Cash paid for principal on finance leases	(456)	(416)
Proceeds from the issuance of common stock pursuant to the employee stock purchase plan	1,276	1,128
Proceeds from the issuance of common stock, net of commissions	12,144	0
Cash paid on license technology obligations	(2,350)	(500)
Net contributions (distributions) from (to) noncontrolling interest	(478)	(867)
Net cash provided by financing activities	7,381	17,782
Net uses of cash and cash equivalents	(13,847)	(1,943)
Cash and cash equivalents - beginning of period	30,025	12,917
Cash and cash equivalents - end of period	16,178	10,974
Supplemental disclosure of cash flow information:
Interest	3,825	1,857
Income taxes	0	3
Noncash investing and financing activity:
Capital expenditures incurred, not yet paid	2	6,972
Equipment acquired through capital lease obligations	1	9,008
Intangible assets acquired, not yet paid	$ 0	$ 2,562

Nature of Business

Nature of Business	6 Months Ended
	Jul. 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", “it”, or “its”), 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. SkyWater's technology-as-a-service model leverages a strong foundation of proprietary technology to co-develop process technology intellectual property with its customers that enables disruptive concepts through its Advanced Technology Services for diverse microelectronics (integrated circuits, or ICs) and related micro- and nanotechnology applications. In addition to these differentiated technology development services, SkyWater supports customers with volume production of ICs for high-growth markets through its 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	6 Months Ended
	Jul. 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 July 2, 2023, and for the three and six months ended July 2, 2023 and July 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 SkyWater's 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 and recurring adjustments that are, in the opinion of management, necessary for the fair presentation of the Company's financial position as of July 2, 2023 and results of operations, shareholders' equity, and cash flows for the three and six months ended July 2, 2023 and July 3, 2022. The results of operations for the three and six months ended July 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 The condensed consolidated financial statements include the Company's assets, liabilities, revenues, and expenses, as well as the assets, liabilities, revenues, and expenses of the Company's subsidiaries in which it has a controlling financial interest, SkyWater Technology Foundry, Inc. (“SkyWater Technology Foundry”), SkyWater Federal, LLC (“SkyWater Federal”), SkyWater Florida, Inc. (“SkyWater Florida”), and Oxbow Realty Partners, LLC ("Oxbow Realty"), a variable interest entity (“VIE”) for which SkyWater is the primary beneficiary and an affiliate of the Company's principal shareholder, CMI Oxbow Partners, LLC ("Oxbow"). All intercompany accounts and transactions have been eliminated in consolidation. 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 and six months ended July 2, 2023, the Company incurred losses of $8,590 and $12,863, respectively. As of July 2, 2023, the Company had cash and cash equivalents of $16,178. SkyWater's ability to execute its operating strategy is dependent on its ability to maintain liquidity and continue to access capital through the Revolver (as defined in Note 6 – Debt ) and other sources of financing. The current business plans indicate that the Company may require additional liquidity to continue to operate for the next 12 months from the issuance of the condensed consolidated financial statements. The Company has identified specific actions that can be taken 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 the Company to decrease its level of investment in new products and technologies, or discontinue further expansion of its business. The Company also obtained a support letter from Oxbow Industries, LLC ("Oxbow Industries"), an affiliate of 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. Based upon SkyWater's operating forecasts, its cash and cash equivalents on hand, available borrowings on the Revolver, potential cost reduction measures it could undertake, and the support letter from Oxbow Industries, as needed, management believes SkyWater will have sufficient liquidity to fund its operations for the next twelve months from the issuance of the condensed consolidated financial statements. Additionally, the Company 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 it cannot provide any assurance that additional funds will be available when needed or, if available, will be available on terms that are acceptable to the Company. 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 the Company's current resources and plans to potentially reduce expenses are insufficient to satisfy the Company's cash requirements, it may need to seek additional equity or debt financing. The Company's ability to do so depends on prevailing economic conditions and other factors, many of which are beyond SkyWater's control. Use of Estimates The preparation of the 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 the Company reported a net loss for the three and six months ended July 2, 2023 and July 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 July 2, 2023 and July 3, 2022, there were restricted stock units and stock options totaling 2,483,000 and 2,526,000, 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 and six months ended July 2, 2023 and July 3, 2022: Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 (in thousands, except per share data) Numerator: Net loss attributable to SkyWater Technology, Inc. $ (8,590) $ (13,005) $ (12,863) $ (29,611) Denominator: Weighted-average common shares outstanding, basic and diluted 44,743 40,203 44,280 40,032 Net loss per common share, basic and diluted $ (0.19) $ (0.32) $ (0.29) $ (0.74) 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	6 Months Ended
	Jul. 02, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies The audited consolidated financial statements included in the Company's 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. The Company made no material changes to its significant accounting policies and estimates during the three and six months ended July 2, 2023. However, the Company 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", 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, SkyWater adopted Topic 842 on January 3, 2022 for the year ending January 1, 2023. The guidance in Topic 842 supersedes the guidance in ASC 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. The Company adopted Topic 842, and all related amendments using the "Comparatives Under 840 Option" transition approach. Under this transition approach, the Company did not restate prior periods, nor restate prior lease disclosures. The Company also elected certain practical expedients allowed by Topic 842 which, among other things, allowed it to carry forward historical lease classification conclusions previously made under Topic 840 and to exclude from the scope of its 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 its operating leases. The Company's accounting for finance leases has remained substantially unchanged.

Revenue

Revenue	6 Months Ended
	Jul. 02, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Wafer Services Contract In March 2022, the Company signed a contract with a significant wafer services customer. Per the terms of the contract, orders placed by the customer are non-cancellable and SkyWater has 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. The Company 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 the Company believes 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 the Company's 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. The Company measures 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 and first quarter of 2023, the Company signed contracts with a significant Advanced Technology Services customer for which revenue is recognized based upon the input method using a cost-based measure of progress. Disaggregated Revenue The following tables disclose revenue for the three and six months ended July 2, 2023 and July 3, 2022 by product type and the timing of recognition of revenue for transfer of goods and services to customers: Three Months Ended July 2, 2023 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Total Revenue Wafer Services $ 3,238 $ 13,564 $ — $ 16,802 Advanced Technology Services Time & materials contracts — 27,914 — 27,914 Fixed price contracts — 23,928 — 23,928 Other — — 1,167 1,167 Total Advanced Technology Services 1 — 51,842 1,167 53,009 Total revenue $ 3,238 $ 65,406 $ 1,167 $ 69,811 __________________ 1 Total Advanced Technology Services revenue includes $936 of tool revenue. Three Months Ended July 3, 2022 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Total Revenue Wafer Services $ 3,519 $ 14,065 $ — $ 17,584 Advanced Technology Services Time & materials contracts — 20,000 — 20,000 Fixed price contracts — 8,656 — 8,656 Other — — 1,167 1,167 Total Advanced Technology Services 1 — 28,656 1,167 29,823 Total revenue $ 3,519 $ 42,721 $ 1,167 $ 47,407 __________________ 1 Total Advanced Technology Services revenue includes $313 of tool revenue. Six Months Ended July 2, 2023 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Total Revenue Wafer Services $ 7,188 $ 27,401 $ — $ 34,589 Advanced Technology Services Time & materials contracts — 55,746 — 55,746 Fixed price contracts — 43,236 — 43,236 Other — — 2,334 2,334 Total Advanced Technology Services 1 — 98,982 2,334 101,316 Total revenue $ 7,188 $ 126,383 $ 2,334 $ 135,905 __________________ 1 Total Advanced Technology Services revenue includes $1,472 of tool revenue. Six Months Ended July 3, 2022 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Total Revenue Wafer Services $ 16,724 $ 22,406 $ — $ 39,130 Advanced Technology Services Time & materials contracts — 38,908 — 38,908 Fixed price contracts — 15,156 — 15,156 Other — — 2,334 2,334 Total Advanced Technology Services 1 — 54,064 2,334 56,398 Total revenue $ 16,724 $ 76,470 $ 2,334 $ 95,528 __________________ 1 Total Advanced Technology Services revenue includes $1,297 of tool revenue. The following table discloses revenue for the three and six months ended July 2, 2023 and July 3, 2022 by country as determined based on customer address: Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 United States $ 59,920 $ 38,550 $ 118,122 $ 80,908 Hong Kong 2,983 2,104 6,002 $ 3,040 Canada 2,117 1,864 4,506 3,534 United Kingdom 3,770 1,443 3,874 $ 3,224 All others 1,021 3,446 3,401 4,822 $ 69,811 $ 47,407 $ 135,905 $ 95,528 The following customers accounted for 10% or more of revenue for the three and six months ended July 2, 2023 and July 3, 2022: Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Customer A 21 % 21 % 20 % 20 % Customer B 18 % 28 % 19 % 34 % Customer E 13 % * 14 % * 52 % 49 % 53 % 54 % __________________ * Represents less than 10% of revenue. The loss of a major customer could adversely affect the Company's operating results and financial condition. Deferred Contract Costs The Company recognized accretion of deferred contract costs in its condensed consolidated statements of operations totaling $32 for the three months ended July 2, 2023. The Company recognized amortization of deferred contract costs of $399 for the three months ended July 3, 2022, and $715 and $594 for the six months ended July 2, 2023 and July 3, 2022, respectively. Contract Assets Contract assets were $28,572 and $34,625 at July 2, 2023 and January 1, 2023, respectively, and are included in accounts receivable, net in the Company's condensed consolidated balance sheets. Contract Liabilities The contract liabilities and other significant components of deferred revenue are as follows: July 2, 2023 January 1, 2023 Contract Deferred Total Contract Deferred Total Current $ 23,276 $ 4,667 $ 27,943 $ 23,519 $ 4,667 $ 28,186 Long-term 55,561 4,278 59,839 61,356 6,611 67,967 Total $ 78,837 $ 8,945 $ 87,782 $ 84,875 $ 11,278 $ 96,153 The decrease in contract liabilities from January 1, 2023 to July 2, 2023 was primarily the result of completion of specific performance obligations for the Company's customers. Of the Company's total contract liabilities at January 1, 2023, 12% have been recognized in revenue during the six months ended July 2, 2023. Of the Company's total contract liabilities at January 2, 2022, 8% were recognized in revenue during the six months ended July 3, 2022. Remaining Performance Obligations As of July 2, 2023, the Company had approximately $130,707 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. The Company expects to recognize those revenues as it satisfies its performance obligations, which do not exceed 6.5 years. The Company does not disclose the value of remaining performance obligations for contracts with an original expected duration of one year or less. Further, the Company does not adjust the promised amount of consideration for the effects of financing if it expects, at contract inception, that the period between when it transfers 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. 02, 2023
Balance Sheet Information [Abstract]
Balance Sheet Information	Balance Sheet Information Certain significant amounts included in the Company's condensed consolidated balance sheets are summarized in the following tables: July 2, 2023 January 1, 2023 Accounts receivable: Trade accounts receivable $ 52,908 $ 29,683 Unbilled revenue (contract assets) 28,572 34,625 Allowance for credit losses (4,395) (1,638) Total accounts receivable, net $ 77,085 $ 62,670 Three Months Ended Six Months Ended Allowance for credit losses: July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Balance at beginning of period 4,167 — 1,638 — Add Adoption of Credit Loss Standard (Topic 326) — — 375 — Provision for credit losses 1,448 — 3,602 — Deduct Accounts written-off 1,220 — 1,220 — Less recoveries of accounts charged-off — — — — Net account charge-offs (recoveries) 1,220 — 1,220 — Balance at end of period $ 4,395 $ — $ 4,395 $ — July 2, 2023 January 1, 2023 Inventories: Raw materials $ 4,352 $ 3,991 Work-in-process 59 359 Supplies and spare parts 11,613 9,047 Total inventories—current 16,024 13,397 Supplies and spare parts classified as other assets 3,042 2,605 Total inventories $ 19,066 $ 16,002 July 2, 2023 January 1, 2023 Prepaid expenses and other current assets: Prepaid expenses $ 1,828 $ 2,395 Prepaid inventory 374 129 Equipment purchased for customers 1 5,669 5,669 Deferred contract costs 748 2,097 Other 450 — Total prepaid assets and other current assets $ 9,069 $ 10,290 __________________ 1 The Company acquired equipment for a customer that is being installed and calibrated in its facility. Prior to the customer obtaining ownership and control of the equipment, the Company recorded costs incurred to date within prepaid expenses and other current assets. July 2, 2023 January 1, 2023 Property and equipment, net: Land $ 5,396 $ 5,396 Buildings and improvements 88,182 88,141 Machinery and equipment 193,074 187,276 Fixed assets not yet in service 7,089 9,746 Total property and equipment, at cost 1 293,741 290,559 Less: Accumulated depreciation 1 (124,201) (110,644) Total property and equipment, net 1 $ 169,540 $ 179,915 __________________ 1 Includes $13,332 and $12,521 of cost and $(3,519) and $(2,781) of accumulated depreciation associated with capital assets subject to financing leases as of July 2, 2023 and January 1, 2023, respectively. Depreciation expense was $6,700 and $6,683 for the three months ended July 2, 2023 and July 3, 2022, respectively, and $13,556 and $12,714 for the six months ended July 2, 2023 and July 3, 2022, respectively, substantially all of which was classified as cost of revenue. July 2, 2023 January 1, 2023 Intangible assets, net: Software and licensed technology $ 10,889 $ 10,277 Less: Accumulated amortization (5,673) (4,669) Total intangible assets, net $ 5,216 $ 5,608 Intangible assets consist of purchased software and license costs from the acquisition of Cypress Semiconductor Corporation in 2017. Additionally, the Company has entered into license agreements for third-party software and licensed technology, which also comprise intangible assets. During the six months ended July 2, 2023, the Company acquired third-party software and licensed technology of $612, which will be amortized over a weighted average estimated life of 3 years. For the three months ended July 2, 2023 and July 3, 2022, amortization of software and licensed technology was $507 and $518, respectively, and $1,003 and $943 for the six months ended July 2, 2023 and July 3, 2022, respectively. Remaining estimated aggregate annual amortization expense is as follows for the years ending: Amortization Remainder of 2023 $ 728 2024 1,018 2025 816 2026 590 2027 308 Thereafter 1,756 Total $ 5,216 July 2, 2023 January 1, 2023 Other assets: Supplies and spare parts $ 3,042 $ 2,605 Deferred contract costs 352 — Operating lease right-of-use assets 119 141 Other assets 2,004 944 Total other assets $ 5,517 $ 3,690 July 2, 2023 January 1, 2023 Accrued expenses: Accrued compensation $ 8,172 $ 5,705 Licensed technology 1,000 1,500 Accrued commissions 267 30 Accrued fixed asset expenditures — 20 Accrued royalties 4,162 4,734 Current portion of operating lease liabilities 46 44 Current portion of finance lease liabilities 627 786 Accrued inventory 1,782 1,294 Accrued consulting fees 3,820 — Other accrued expenses 12,236 11,099 Total accrued expenses $ 32,112 $ 25,212 July 2, 2023 January 1, 2023 Other long-term liabilities: Finance lease obligations $ 9,525 $ 9,257 Operating lease liability 76 100 Accrued customer payable — 3,728 Licensed technology — 500 Total other long-term liabilities $ 9,601 $ 13,585

Debt

Debt	6 Months Ended
	Jul. 02, 2023
Debt Disclosure [Abstract]
Debt	Debt The components of debt outstanding at July 2, 2023 and January 1, 2023 are as follows: July 2, 2023 January 1, 2023 Revolver $ 57,796 $ 60,093 VIE Financing 36,299 36,826 Tool financing loan 3,102 3,037 Unamortized debt issuance costs 1 (6,222) (7,103) Total long-term debt, including current maturities 90,975 92,853 Less: Current portion of long-term debt (56,197) (57,672) Total long-term debt, excluding current portion $ 34,778 $ 35,181 __________________ 1 Unamortized debt issuance costs as of July 2, 2023 included $3,563 for the Revolver (as defined below) and $2,659 for the VIE Financing (as defined below). Unamortized debt issuance costs as of January 1, 2023 included $4,277 for the Revolver and $2,826 for the VIE Financing. Revolver The outstanding balance of the revolving line of credit (the “Revolver”) under the Company's Loan and Security Agreement with Siena Lending Group LLC was $57,796 as of July 2, 2023 at an interest rate of 11.6% due in December 2025. The remaining availability under the Revolver was $34,635 as of July 2, 2023. As of July 2, 2023, the Company was 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, our consolidated VIE (see Note 12 – Related Party Transactions and Note 13 – Variable Interest Entity ), entered into a loan agreement for $39,000 (the “VIE Financing”) to finance the acquisition of the building and land associated with SkyWater's primary operating location in Bloomington, Minnesota. The VIE Financing is repayable in equal monthly installments of $194 over 10 years, with the remaining balance payable at the maturity date of October 6, 2030. The interest rate under the VIE Financing is fixed at 3.44%. The VIE Financing is guaranteed by Oxbow, who is also the sole equity holder of Oxbow Realty. The terms of the VIE Financing include provisions that grant the lender several protective rights when certain triggering events defined in the loan agreement occur, including events tied to SkyWater’s occupancy of the Bloomington, Minnesota facility and SkyWater’s financial performance. The occurrence of these triggering events do not represent events of default, nor do they result in the VIE Financing becoming callable, rather the protective rights become enforceable by the lender. Based on the level of SkyWater’s earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs relative to gross rents paid from SkyWater to Oxbow Realty, as defined in the loan agreement, a trigger event exists and the lender’s protective rights are currently enforceable. Pursuant to its protective rights, the lender has retained in a restricted account amounts paid by SkyWater to Oxbow Realty pursuant to the Company’s related party lease agreement that are in excess of the scheduled debt payments paid by Oxbow Realty to the lender. The funds held in the restricted accounts become remittable back to Oxbow Realty once the trigger event is cured. As of July 2, 2023, Oxbow Realty maintained a $4,542 receivable for the cumulative amount of excess payments held by the lender in the restricted account. Tool Financing Loan Between fourth quarter 2022 and first quarter 2023, SkyWater entered into an arrangement to sell a manufacturing tool to an equipment financing lender for $3,596. The agreements include bargain purchase options at the end of the lease terms which the Company intends to exercise. These transactions represent failed sale leasebacks with the manufacturing tool retained on the Company's balance sheet and the proceeds received recorded as financial obligations. Maturities Future principal payments of the Revolver, the VIE Financing, and tool financing loan, excluding unamortized debt issuance costs, are as follows: Remainder of 2023 $ 58,801 2024 2,103 2025 2,185 2026 1,752 2027 1,219 Thereafter 31,137 Total $ 97,197

Income Taxes

Income Taxes	6 Months Ended
	Jul. 02, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company's effective tax rates for each of the three and six months ended July 2, 2023 and July 3, 2022 differ from its 21% statutory tax rates due to state income taxes, permanent tax differences, the tax impact of the vesting of restricted stock units and changes in the deferred tax asset valuation allowance. The effective 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 July 2, 2023 and July 3, 2022 was (0.4)% and (0.5)%, respectively, and the effective income tax rate for the six months ended July 2, 2023 and July 3, 2022 was (0.2)% and 0.5% respectively. 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 $20,734 and $19,855 was recorded as of July 2, 2023 and January 1, 2023, respectively, to reduce the 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. If applicable, the Company would accrue income tax related interest and penalties in income tax expense in its condensed consolidated statement of operations. There were no interest or penalties incurred during the three and six months ended July 2, 2023 and July 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, management is evaluating the impact of the CHIPS Act on its business.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jul. 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 six months ended July 2, 2023, the Company sold approximately 1,301,470 shares at an average sale price of $10.34 per share, resulting in gross proceeds of approximately $13,454 before deducting sales commissions and fees of approximately $404. The Company used the net proceeds to pay down the Revolver and fund its operations. Subsequent to July 2, 2023, the Company sold approximately 779,697 shares under the Open Market Sale Agreement at an average sale price of $9.72 per share, resulting in gross proceeds of approximately $7,575 before deducting sales commissions and fees of approximately $227. As of July 2, 2023, approximately $82,506 in shares were available for issuance under the Open Market Sale Agreement. Taking into account the sales that settled subsequent to July 2, 2023, approximately $74,930 in shares are available for issuance under the ATM Program as of the date of this report.

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Jul. 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 Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Cost of revenue $ 291 $ 534 $ 804 $ 1,574 Research and development 217 127 379 333 Selling, general and administrative expense 1,459 1,382 2,637 3,143 $ 1,967 $ 2,043 $ 3,820 $ 5,050

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jul. 02, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements ASC Topic 820, "Fair Value Measurement and Disclosure" (Topic 820), 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. The Company uses the fair value hierarchy defined in Topic 820 to categorize assets and liabilities subject to fair value reporting into three levels, as follows, based on the inputs used to derive the fair value of these balances. • 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 the Company's contingent consideration obligation. The change in level 3 assets measured at fair value on a recurring basis is summarized as follows: Six Months Ended July 2, 2023 July 3, 2022 Beginning balance $ — $ 816 Payments — (375) Change in fair value — — Ending balance $ — $ 441 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	6 Months Ended
	Jul. 02, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation From time to time, the Company is involved in legal proceedings and subject to claims arising in the ordinary course of its business. Although the results of litigation and claims cannot be predicted with certainty, the Company currently believes that the resolution of these ordinary-course matters will not have a material adverse effect on its business, operating results, financial condition or cash flows. Even if any particular litigation is resolved in a manner that is favorable to the Company's interests, such litigation can have a negative impact on its results because of defense and settlement costs, diversion of management resources from its business and other factors. Capital Expenditures The Company has various contracts outstanding with third parties which primarily relate to the completion of a building expansion project to increase manufacturing capacity at its Minnesota facility. The Company has approximately $8.6 million of contractual commitments outstanding as of July 2, 2023. Center for NeoVation On January 25, 2021, the Company 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 its primary operating location in Kissimmee, Florida. Under the CfN Lease, the Company agrees 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, SkyWater will take ownership of the facility. The Company is 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. The Company may terminate the TED Agreement and CfN Lease with 18 months' notice. In the event the Company terminates the agreements, it is required to continue to operate the CfN until the earlier of either a replacement operator is found, or the 18-month notice period expires, and it may be required to make a payment of up to $15,000 to Osceola. Build Back Better Grant

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jul. 02, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions In August 2022, SkyWater entered into an agreement with Oxbow Industries 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, SkyWater entered into an agreement to sell the land and building representing its primary operating location in Bloomington, Minnesota to Oxbow Realty. In the fourth quarter of 2020, SkyWater 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. The Company is 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 July 2, 2023 were as follows (such amounts are eliminated from the Company's condensed consolidated financial statements due to the consolidation of Oxbow Realty, see Note 13 – Variable Interest Entity ): Remainder of 2023 2,474 2024 5,031 2025 5,132 2026 5,234 2027 5,339 Thereafter 78,776 Total lease payments 101,986 Less: imputed interest (74,246) Total $ 27,740

Variable Interest Entity

Variable Interest Entity	6 Months Ended
	Jul. 02, 2023
Condensed Financial Information Disclosure [Abstract]
Variable Interest Entity	Variable Interest Entity Oxbow Realty was established by Oxbow for the purpose of holding real estate and facilitating real estate transactions. This included the purchase of the land and building of SkyWater's primary operating location in Bloomington, Minnesota with proceeds from a bank loan (see Note 6 – Debt ) and managing the leaseback of the land and building to SkyWater (see Note 12 – Related Party Transactions ). Management determined that Oxbow Realty meets the definition of a VIE under FASB Topic 810, "Consolidation" ("Topic 810"), because it lacks sufficient equity to finance its activities. Furthermore, the Company is the primary beneficiary of Oxbow Realty as it has the power to direct operating and maintenance decisions of its Bloomington, Minnesota facility during the lease term, which would most significantly affect the VIE’s economic performance. As the primary beneficiary, the Company consolidates the assets, liabilities and results of operations of Oxbow Realty pursuant to Topic 810, eliminating any transactions between the Company and Oxbow Realty, and recording a noncontrolling interest for the economic interest in Oxbow Realty not owned by the Company because the owners of SkyWater's common stock do not legally have rights or obligations to the profits or losses of Oxbow Realty. 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 the Company as of July 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. July 2, 2023 January 1, 2023 Cash and cash equivalents $ 20 $ 16 Accounts receivable 4,545 — Prepaid expenses 21 860 Finance receivable 40,388 37,652 Other assets 746 256 Total assets $ 45,720 $ 38,784 Accounts payable $ 4,280 $ 117 Accrued expenses 243 1,581 Deferred revenue 1,386 — Debt 36,252 36,778 Total liabilities $ 42,161 $ 38,476 The following table shows the revenue and expenses of Oxbow Realty for the three and six months ended July 2, 2023 and July 3, 2022. These amounts have been included, net of eliminations, in the notes to the condensed consolidated financial statements. Three Months Ended Six Months Ended July 2, 2023 Three Months Ended July 3, 2022 July 2, 2023 July 3, 2022 Revenue $ 2,631 $ 1,262 $ 3,949 $ 2,522 General and administrative expenses 252 102 545 179 Interest expense 313 334 631 658 Total expenses 565 436 1,176 837 Net income $ 2,066 $ 826 $ 2,773 $ 1,685

Leases

Leases	6 Months Ended
	Jul. 02, 2023
Leases [Abstract]
Lesses	LeasesSkyWater as the Lessor In March 2020, SkyWater executed a contract with a customer that includes an operating lease for the right to use a specified portion of the Company's 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

Basis of Presentation and Pri_2

Basis of Presentation and Principles of Consolidation (Policies)	6 Months Ended
	Jul. 02, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the Company's assets, liabilities, revenues, and expenses, as well as the assets, liabilities, revenues, and expenses of the Company's subsidiaries in which it has a controlling financial interest, SkyWater Technology Foundry, Inc. (“SkyWater Technology Foundry”), SkyWater Federal, LLC (“SkyWater Federal”), SkyWater Florida, Inc. (“SkyWater Florida”), and Oxbow Realty Partners, LLC ("Oxbow Realty"), a variable interest entity (“VIE”) for which SkyWater is the primary beneficiary and an affiliate of the Company's principal shareholder, CMI Oxbow Partners, LLC ("Oxbow"). All intercompany accounts and transactions have been eliminated in consolidation.
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 and six months ended July 2, 2023, the Company incurred losses of $8,590 and $12,863, respectively. As of July 2, 2023, the Company had cash and cash equivalents of $16,178. SkyWater's ability to execute its operating strategy is dependent on its ability to maintain liquidity and continue to access capital through the Revolver (as defined in Note 6 – Debt ) and other sources of financing. The current business plans indicate that the Company may require additional liquidity to continue to operate for the next 12 months from the issuance of the condensed consolidated financial statements. The Company has identified specific actions that can be taken 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 the Company to decrease its level of investment in new products and technologies, or discontinue further expansion of its business. The Company also obtained a support letter from Oxbow Industries, LLC ("Oxbow Industries"), an affiliate of 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. Based upon SkyWater's operating forecasts, its cash and cash equivalents on hand, available borrowings on the Revolver, potential cost reduction measures it could undertake, and the support letter from Oxbow Industries, as needed, management believes SkyWater will have sufficient liquidity to fund its operations for the next twelve months from the issuance of the condensed consolidated financial statements. Additionally, the Company 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 it cannot provide any assurance that additional funds will be available when needed or, if available, will be available on terms that are acceptable to the Company. 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 the Company's current resources and plans to potentially reduce expenses are insufficient to satisfy the Company's cash requirements, it may need to seek additional equity or debt financing. The Company's ability to do so depends on prevailing economic conditions and other factors, many of which are beyond SkyWater's control.
Use of Estimates	Use of Estimates The preparation of the 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 the Company reported a net loss for the three and six months ended July 2, 2023 and July 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 July 2, 2023 and July 3, 2022, there were restricted stock units and stock options totaling 2,483,000 and 2,526,000, 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", 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, SkyWater adopted Topic 842 on January 3, 2022 for the year ending January 1, 2023. The guidance in Topic 842 supersedes the guidance in ASC 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. The Company adopted Topic 842, and all related amendments using the "Comparatives Under 840 Option" transition approach. Under this transition approach, the Company did not restate prior periods, nor restate prior lease disclosures. The Company also elected certain practical expedients allowed by Topic 842 which, among other things, allowed it to carry forward historical lease classification conclusions previously made under Topic 840 and to exclude from the scope of its 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 its operating leases. The Company's accounting for finance leases has remained substantially unchanged.

Basis of Presentation and Pri_3

Basis of Presentation and Principles of Consolidation (Tables)	6 Months Ended
	Jul. 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 and six months ended July 2, 2023 and July 3, 2022: Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 (in thousands, except per share data) Numerator: Net loss attributable to SkyWater Technology, Inc. $ (8,590) $ (13,005) $ (12,863) $ (29,611) Denominator: Weighted-average common shares outstanding, basic and diluted 44,743 40,203 44,280 40,032 Net loss per common share, basic and diluted $ (0.19) $ (0.32) $ (0.29) $ (0.74)

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jul. 02, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregated Revenue	The following tables disclose revenue for the three and six months ended July 2, 2023 and July 3, 2022 by product type and the timing of recognition of revenue for transfer of goods and services to customers: Three Months Ended July 2, 2023 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Total Revenue Wafer Services $ 3,238 $ 13,564 $ — $ 16,802 Advanced Technology Services Time & materials contracts — 27,914 — 27,914 Fixed price contracts — 23,928 — 23,928 Other — — 1,167 1,167 Total Advanced Technology Services 1 — 51,842 1,167 53,009 Total revenue $ 3,238 $ 65,406 $ 1,167 $ 69,811 __________________ 1 Total Advanced Technology Services revenue includes $936 of tool revenue. Three Months Ended July 3, 2022 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Total Revenue Wafer Services $ 3,519 $ 14,065 $ — $ 17,584 Advanced Technology Services Time & materials contracts — 20,000 — 20,000 Fixed price contracts — 8,656 — 8,656 Other — — 1,167 1,167 Total Advanced Technology Services 1 — 28,656 1,167 29,823 Total revenue $ 3,519 $ 42,721 $ 1,167 $ 47,407 __________________ 1 Total Advanced Technology Services revenue includes $313 of tool revenue. Six Months Ended July 2, 2023 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Total Revenue Wafer Services $ 7,188 $ 27,401 $ — $ 34,589 Advanced Technology Services Time & materials contracts — 55,746 — 55,746 Fixed price contracts — 43,236 — 43,236 Other — — 2,334 2,334 Total Advanced Technology Services 1 — 98,982 2,334 101,316 Total revenue $ 7,188 $ 126,383 $ 2,334 $ 135,905 __________________ 1 Total Advanced Technology Services revenue includes $1,472 of tool revenue. Six Months Ended July 3, 2022 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Total Revenue Wafer Services $ 16,724 $ 22,406 $ — $ 39,130 Advanced Technology Services Time & materials contracts — 38,908 — 38,908 Fixed price contracts — 15,156 — 15,156 Other — — 2,334 2,334 Total Advanced Technology Services 1 — 54,064 2,334 56,398 Total revenue $ 16,724 $ 76,470 $ 2,334 $ 95,528 __________________ 1 Total Advanced Technology Services revenue includes $1,297 of tool revenue.
Schedule of Revenue by Country	The following table discloses revenue for the three and six months ended July 2, 2023 and July 3, 2022 by country as determined based on customer address: Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 United States $ 59,920 $ 38,550 $ 118,122 $ 80,908 Hong Kong 2,983 2,104 6,002 $ 3,040 Canada 2,117 1,864 4,506 3,534 United Kingdom 3,770 1,443 3,874 $ 3,224 All others 1,021 3,446 3,401 4,822 $ 69,811 $ 47,407 $ 135,905 $ 95,528
Schedule of Revenue by Major Customers by Reporting Segments	The following customers accounted for 10% or more of revenue for the three and six months ended July 2, 2023 and July 3, 2022: Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Customer A 21 % 21 % 20 % 20 % Customer B 18 % 28 % 19 % 34 % Customer E 13 % * 14 % * 52 % 49 % 53 % 54 % __________________ * Represents less than 10% of revenue.
Schedule of Contract Liabilities	The contract liabilities and other significant components of deferred revenue are as follows: July 2, 2023 January 1, 2023 Contract Deferred Total Contract Deferred Total Current $ 23,276 $ 4,667 $ 27,943 $ 23,519 $ 4,667 $ 28,186 Long-term 55,561 4,278 59,839 61,356 6,611 67,967 Total $ 78,837 $ 8,945 $ 87,782 $ 84,875 $ 11,278 $ 96,153

Balance Sheet Information (Tabl

Balance Sheet Information (Tables)	6 Months Ended
	Jul. 02, 2023
Balance Sheet Information [Abstract]
Schedule of Accounts Receivable, Net	July 2, 2023 January 1, 2023 Accounts receivable: Trade accounts receivable $ 52,908 $ 29,683 Unbilled revenue (contract assets) 28,572 34,625 Allowance for credit losses (4,395) (1,638) Total accounts receivable, net $ 77,085 $ 62,670
Schedule of Allowance for Credit Loss	Three Months Ended Six Months Ended Allowance for credit losses: July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Balance at beginning of period 4,167 — 1,638 — Add Adoption of Credit Loss Standard (Topic 326) — — 375 — Provision for credit losses 1,448 — 3,602 — Deduct Accounts written-off 1,220 — 1,220 — Less recoveries of accounts charged-off — — — — Net account charge-offs (recoveries) 1,220 — 1,220 — Balance at end of period $ 4,395 $ — $ 4,395 $ —
Schedule of Inventories	July 2, 2023 January 1, 2023 Inventories: Raw materials $ 4,352 $ 3,991 Work-in-process 59 359 Supplies and spare parts 11,613 9,047 Total inventories—current 16,024 13,397 Supplies and spare parts classified as other assets 3,042 2,605 Total inventories $ 19,066 $ 16,002
Schedule of Prepaid Expenses and Other Current Assets	July 2, 2023 January 1, 2023 Prepaid expenses and other current assets: Prepaid expenses $ 1,828 $ 2,395 Prepaid inventory 374 129 Equipment purchased for customers 1 5,669 5,669 Deferred contract costs 748 2,097 Other 450 — Total prepaid assets and other current assets $ 9,069 $ 10,290 __________________ 1 The Company acquired equipment for a customer that is being installed and calibrated in its facility. Prior to the customer obtaining ownership and control of the equipment, the Company recorded costs incurred to date within prepaid expenses and other current assets.
Schedule of Property and Equipment, Net	July 2, 2023 January 1, 2023 Property and equipment, net: Land $ 5,396 $ 5,396 Buildings and improvements 88,182 88,141 Machinery and equipment 193,074 187,276 Fixed assets not yet in service 7,089 9,746 Total property and equipment, at cost 1 293,741 290,559 Less: Accumulated depreciation 1 (124,201) (110,644) Total property and equipment, net 1 $ 169,540 $ 179,915 __________________
Schedule of Intangible Assets	July 2, 2023 January 1, 2023 Intangible assets, net: Software and licensed technology $ 10,889 $ 10,277 Less: Accumulated amortization (5,673) (4,669) Total intangible assets, net $ 5,216 $ 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 $ 728 2024 1,018 2025 816 2026 590 2027 308 Thereafter 1,756 Total $ 5,216
Schedule of Other Assets	July 2, 2023 January 1, 2023 Other assets: Supplies and spare parts $ 3,042 $ 2,605 Deferred contract costs 352 — Operating lease right-of-use assets 119 141 Other assets 2,004 944 Total other assets $ 5,517 $ 3,690
Schedule of Accrued Expenses	July 2, 2023 January 1, 2023 Accrued expenses: Accrued compensation $ 8,172 $ 5,705 Licensed technology 1,000 1,500 Accrued commissions 267 30 Accrued fixed asset expenditures — 20 Accrued royalties 4,162 4,734 Current portion of operating lease liabilities 46 44 Current portion of finance lease liabilities 627 786 Accrued inventory 1,782 1,294 Accrued consulting fees 3,820 — Other accrued expenses 12,236 11,099 Total accrued expenses $ 32,112 $ 25,212
Schedule of Other Noncurrent Liabilities	July 2, 2023 January 1, 2023 Other long-term liabilities: Finance lease obligations $ 9,525 $ 9,257 Operating lease liability 76 100 Accrued customer payable — 3,728 Licensed technology — 500 Total other long-term liabilities $ 9,601 $ 13,585

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jul. 02, 2023
Debt Disclosure [Abstract]
Schedule of Debt Outstanding	The components of debt outstanding at July 2, 2023 and January 1, 2023 are as follows: July 2, 2023 January 1, 2023 Revolver $ 57,796 $ 60,093 VIE Financing 36,299 36,826 Tool financing loan 3,102 3,037 Unamortized debt issuance costs 1 (6,222) (7,103) Total long-term debt, including current maturities 90,975 92,853 Less: Current portion of long-term debt (56,197) (57,672) Total long-term debt, excluding current portion $ 34,778 $ 35,181 __________________ 1 Unamortized debt issuance costs as of July 2, 2023 included $3,563 for the Revolver (as defined below) and $2,659 for the VIE Financing (as defined below). Unamortized debt issuance costs as of January 1, 2023 included $4,277 for the Revolver and $2,826 for the VIE Financing.
Schedule of Future Principal Payments	Future principal payments of the Revolver, the VIE Financing, and tool financing loan, excluding unamortized debt issuance costs, are as follows: Remainder of 2023 $ 58,801 2024 2,103 2025 2,185 2026 1,752 2027 1,219 Thereafter 31,137 Total $ 97,197

Share-Based Compensation (Table

Share-Based Compensation (Tables)	6 Months Ended
	Jul. 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 Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Cost of revenue $ 291 $ 534 $ 804 $ 1,574 Research and development 217 127 379 333 Selling, general and administrative expense 1,459 1,382 2,637 3,143 $ 1,967 $ 2,043 $ 3,820 $ 5,050

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jul. 02, 2023
Fair Value Disclosures [Abstract]
Schedule of Change in Level 3 Assets Measured at Fair Value On a Recurring Basis	The change in level 3 assets measured at fair value on a recurring basis is summarized as follows: Six Months Ended July 2, 2023 July 3, 2022 Beginning balance $ — $ 816 Payments — (375) Change in fair value — — Ending balance $ — $ 441

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jul. 02, 2023
Related Party Transactions [Abstract]
Schedule of Future Minimum Lease Commitments	Future minimum lease commitments to Oxbow Realty as of July 2, 2023 were as follows (such amounts are eliminated from the Company's condensed consolidated financial statements due to the consolidation of Oxbow Realty, see Note 13 – Variable Interest Entity ): Remainder of 2023 2,474 2024 5,031 2025 5,132 2026 5,234 2027 5,339 Thereafter 78,776 Total lease payments 101,986 Less: imputed interest (74,246) Total $ 27,740

Variable Interest Entity (Table

Variable Interest Entity (Tables)	6 Months Ended
	Jul. 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 the Company as of July 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. July 2, 2023 January 1, 2023 Cash and cash equivalents $ 20 $ 16 Accounts receivable 4,545 — Prepaid expenses 21 860 Finance receivable 40,388 37,652 Other assets 746 256 Total assets $ 45,720 $ 38,784 Accounts payable $ 4,280 $ 117 Accrued expenses 243 1,581 Deferred revenue 1,386 — Debt 36,252 36,778 Total liabilities $ 42,161 $ 38,476
Schedule of VIE Condensed Income Statements	The following table shows the revenue and expenses of Oxbow Realty for the three and six months ended July 2, 2023 and July 3, 2022. These amounts have been included, net of eliminations, in the notes to the condensed consolidated financial statements. Three Months Ended Six Months Ended July 2, 2023 Three Months Ended July 3, 2022 July 2, 2023 July 3, 2022 Revenue $ 2,631 $ 1,262 $ 3,949 $ 2,522 General and administrative expenses 252 102 545 179 Interest expense 313 334 631 658 Total expenses 565 436 1,176 837 Net income $ 2,066 $ 826 $ 2,773 $ 1,685

Basis of Presentation and Pri_4

Basis of Presentation and Principles of Consolidation - Narrative (Details) $ in Thousands				3 Months Ended		6 Months Ended
	Jul. 02, 2023 USD ($) shares	Aug. 17, 2022 USD ($)	Jul. 03, 2022 shares	Jul. 02, 2023 USD ($)	Jul. 03, 2022 USD ($)	Jul. 02, 2023 USD ($) segment	Jul. 03, 2022 USD ($)	Jan. 01, 2023 USD ($)
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Net loss attributable to SkyWater Technology, Inc.				$ (8,590)	$ (13,005)	$ (12,863)	$ (29,611)
Cash and cash equivalents	$ 16,178			$ 16,178		$ 16,178		$ 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	2,483,000		2,526,000
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		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Numerator:
Net loss attributable to SkyWater Technology, Inc.	$ (8,590)	$ (13,005)	$ (12,863)	$ (29,611)
Denominator:
Weighted-average common shares outstanding, basic (in shares)	44,743,269	40,203,050	44,280,343	40,031,615
Weighted-average common shares outstanding, diluted (in shares)	44,743,269	40,203,050	44,280,343	40,031,615
Net loss per common share, basic (in USD per share)	$ (0.19)	$ (0.32)	$ (0.29)	$ (0.74)
Net loss per common share, diluted (in USD per share)	$ (0.19)	$ (0.32)	$ (0.29)	$ (0.74)

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Apr. 02, 2023	Jan. 02, 2023	Jan. 01, 2023	Jul. 03, 2022	Apr. 03, 2022	Jan. 03, 2022	Jan. 02, 2022
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Operating lease right-of-use assets	$ 119			$ 141			$ 184
Operating lease liability							$ 184
Stockholders' equity, including portion attributable to noncontrolling interest	62,882	$ 57,472		53,977	$ 37,629	$ 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	$ (107,310)	$ (98,720)		(94,072)	$ (84,090)	$ (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			6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Apr. 03, 2022	Jul. 02, 2023	Jul. 03, 2022	Jan. 01, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Accretion of deferred contract costs	$ 32
Amortization of deferred contract costs		$ 399		$ 715	$ 594
Contract assets	$ 28,572			$ 28,572		$ 34,625
Contract liabilities recognized in revenue (as a percent)				12,000%	8,000%
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		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Disaggregation of Revenue [Line Items]
Lease Revenue	$ 1,167	$ 1,167	$ 2,334	$ 2,334
Total Revenue	69,811	47,407	135,905	95,528
Wafer Services
Disaggregation of Revenue [Line Items]
Lease Revenue	0	0	0	0
Total Revenue	16,802	17,584	34,589	39,130
Advanced Technology Services
Disaggregation of Revenue [Line Items]
Lease Revenue	1,167	1,167	2,334	2,334
Total Revenue	53,009	29,823	101,316	56,398
Time & materials contracts
Disaggregation of Revenue [Line Items]
Lease Revenue	0	0	0	0
Total Revenue	27,914	20,000	55,746	38,908
Fixed price contracts
Disaggregation of Revenue [Line Items]
Lease Revenue	0	0	0	0
Total Revenue	23,928	8,656	43,236	15,156
Other
Disaggregation of Revenue [Line Items]
Lease Revenue	1,167	1,167	2,334	2,334
Total Revenue	1,167	1,167	2,334	2,334
Tool
Disaggregation of Revenue [Line Items]
Total Revenue	936	313	1,472	1,297
Point-in-Time
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	3,238	3,519	7,188	16,724
Point-in-Time | Wafer Services
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	3,238	3,519	7,188	16,724
Point-in-Time | Advanced Technology Services
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	0	0	0	0
Point-in-Time | Time & materials contracts
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	0	0	0	0
Point-in-Time | Fixed price contracts
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	0	0	0	0
Point-in-Time | Other
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	0	0	0	0
Over Time
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	65,406	42,721	126,383	76,470
Over Time | Wafer Services
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	13,564	14,065	27,401	22,406
Over Time | Advanced Technology Services
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	51,842	28,656	98,982	54,064
Over Time | Time & materials contracts
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	27,914	20,000	55,746	38,908
Over Time | Fixed price contracts
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	23,928	8,656	43,236	15,156
Over Time | Other
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	$ 0	$ 0	$ 0	$ 0

Revenue - Schedule of Revenue b

Revenue - Schedule of Revenue by Country (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 69,811	$ 47,407	$ 135,905	$ 95,528
United States
Disaggregation of Revenue [Line Items]
Revenues	59,920	38,550	118,122	80,908
Hong Kong
Disaggregation of Revenue [Line Items]
Revenues	2,983	2,104	6,002	3,040
Canada
Disaggregation of Revenue [Line Items]
Revenues	2,117	1,864	4,506	3,534
United Kingdom
Disaggregation of Revenue [Line Items]
Revenues	3,770	1,443	3,874	3,224
All others
Disaggregation of Revenue [Line Items]
Revenues	$ 1,021	$ 3,446	$ 3,401	$ 4,822

Revenue - Schedule of Revenue_2

Revenue - Schedule of Revenue by Major Customers (Details) - Revenue Benchmark - Customer Concentration Risk	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Customer A
Disaggregation of Revenue [Line Items]
Customer percentage of revenue (as a percent)	21%	21%	20%	20%
Customer B
Disaggregation of Revenue [Line Items]
Customer percentage of revenue (as a percent)	18%	28%	19%	34%
Customer E
Disaggregation of Revenue [Line Items]
Customer percentage of revenue (as a percent)	13%		14%
Major Customers
Disaggregation of Revenue [Line Items]
Customer percentage of revenue (as a percent)	52%	49%	53%	54%

Revenue - Schedule of Contract

Revenue - Schedule of Contract Liabilities (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Revenue from Contract with Customer [Abstract]
Current contract liabilities	$ 23,276	$ 23,519
Long-term contract liabilities	55,561	61,356
Total contract liabilities	78,837	84,875
Current deferred lease revenue	4,667	4,667
Long-term deferred lease revenue	4,278	6,611
Total deferred revenue	8,945	11,278
Total current deferred revenue	27,943	28,186
Total long-term deferred revenue	59,839	67,967
Total deferred revenue	$ 87,782	$ 96,153

Revenue - Schedule of Performan

Revenue - Schedule of Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-03 $ in Thousands	Jul. 02, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue obligation amount	$ 130,707
Revenue recognition period	6 years 6 months

Balance Sheet Information - Sum

Balance Sheet Information - Summary of Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Apr. 02, 2023	Jan. 01, 2023	Jul. 03, 2022	Apr. 03, 2022	Jan. 02, 2022
Balance Sheet Information [Abstract]
Trade accounts receivable	$ 52,908		$ 29,683
Unbilled revenue (contract assets)	28,572		34,625
Allowance for credit losses	(4,395)	$ (4,167)	(1,638)	$ 0	$ 0	$ 0
Total accounts receivable, net	$ 77,085		$ 62,670

Balance Sheet Information - S_2

Balance Sheet Information - Summary of Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Allowance for credit losses:
Balance at beginning of period	$ 4,167	$ 0	$ 1,638	$ 0
Provision for credit losses	1,448	0	3,602	0
Accounts written-off	1,220	0	1,220	0
Less recoveries of accounts charged-off	0	0	0	0
Net account charge-offs (recoveries)	1,220	0	1,220	0
Balance at end of period	4,395	0	4,395	0
Cumulative Effect, Period of Adoption, Adjustment
Allowance for credit losses:
Balance at beginning of period	$ 0	$ 0	$ 375	$ 0

Balance Sheet Information - S_3

Balance Sheet Information - Summary of Inventories (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Balance Sheet Information [Abstract]
Raw materials	$ 4,352	$ 3,991
Work-in-process	59	359
Supplies and spare parts	11,613	9,047
Total inventories—current	16,024	13,397
Supplies and spare parts classified as other assets	3,042	2,605
Total inventories	$ 19,066	$ 16,002

Balance Sheet Information - S_4

Balance Sheet Information - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Balance Sheet Information [Abstract]
Prepaid expenses	$ 1,828	$ 2,395
Prepaid inventory	374	129
Equipment purchased for customers	5,669	5,669
Deferred contract costs	748	2,097
Other	450	0
Prepaid expenses and other current assets	$ 9,069	$ 10,290

Balance Sheet Information - S_5

Balance Sheet Information - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Property, Plant and Equipment [Line Items]
Total property and equipment, at cost	$ 293,741	$ 290,559
Less: Accumulated depreciation	(124,201)	(110,644)
Total property and equipment, net	169,540	179,915
Finance lease, right-of-use asset, before accumulated amortization	13,332	12,521
Finance lease, right-of-use asset, accumulated amortization	(3,519)	(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	88,182	88,141
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, at cost	193,074	187,276
Fixed assets not yet in service
Property, Plant and Equipment [Line Items]
Total property and equipment, at cost	$ 7,089	$ 9,746

Balance Sheet Information - Nar

Balance Sheet Information - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 6,700	$ 6,683	$ 13,556	$ 12,714
Software and licensed technology
Property, Plant and Equipment [Line Items]
Acquired third-party intangible assets			$ 612
Weighted average estimated life of acquired intangibles (in years)			3 years
Amortization of intangible assets	$ 507	$ 518	$ 1,003	$ 943

Balance Sheet Information - S_6

Balance Sheet Information - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, net	$ 5,216	$ 5,608
Software and licensed technology
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, at cost	10,889	10,277
Less: Accumulated amortization	(5,673)	(4,669)
Total intangible assets, net	$ 5,216	$ 5,608

Balance Sheet Information - S_7

Balance Sheet Information - Summary of Remaining Estimated Aggregate Annual Amortization Expense (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Balance Sheet Information [Abstract]
Remainder of 2023	$ 728
2024	1,018
2025	816
2026	590
2027	308
Thereafter	1,756
Total intangible assets, net	$ 5,216	$ 5,608

Balance Sheet Information - S_8

Balance Sheet Information - Summary of Other Assets (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023	Jan. 03, 2022
Balance Sheet Information [Abstract]
Supplies and spare parts	$ 3,042	$ 2,605
Deferred contract costs	352	0
Operating lease right-of-use assets	119	141	$ 184
Other assets	2,004	944
Total other assets	$ 5,517	$ 3,690

Balance Sheet Information - S_9

Balance Sheet Information - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Balance Sheet Information [Abstract]
Accrued compensation	$ 8,172	$ 5,705
Licensed technology	1,000	1,500
Accrued commissions	267	30
Accrued fixed asset expenditures	0	20
Accrued royalties	4,162	4,734
Current portion of operating lease liabilities	46	44
Current portion of finance lease liabilities	627	786
Accrued inventory	1,782	1,294
Accrued consulting fees	3,820	0
Other accrued expenses	12,236	11,099
Total accrued expenses	$ 32,112	$ 25,212

Balance Sheet Information - Sch

Balance Sheet Information - Schedule of Other Long-term Liabilities (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Balance Sheet Information [Abstract]
Finance lease obligations	$ 9,525	$ 9,257
Operating lease liability	76	100
Accrued customer payable	0	3,728
Licensed technology	0	500
Other long-term liabilities	$ 9,601	$ 13,585

Debt - Summary of Debt Outstand

Debt - Summary of Debt Outstanding (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ (6,222)	$ (7,103)
Total long-term debt, including current maturities	90,975	92,853
Less: Current portion of long-term debt	(56,197)	(57,672)
Total long-term debt, excluding current portion	34,778	35,181
VIE Financing
Debt Instrument [Line Items]
Total long-term debt, including current maturities	36,252	36,778
Revolver
Debt Instrument [Line Items]
Long-term debt		60,093
Unamortized debt issuance costs	3,563	4,277
Financing loan
Debt Instrument [Line Items]
Long-term debt	3,102	3,037
Financing loan | VIE Financing
Debt Instrument [Line Items]
Long-term debt	36,299	36,826
Unamortized debt issuance costs	$ 2,659	$ 2,826

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2023	Apr. 02, 2023	Jan. 01, 2023	Sep. 30, 2020
Debt Instrument [Line Items]
Sale of manufacturing tool, aggregate consideration		$ 3,596
VIE Financing
Debt Instrument [Line Items]
Accumulated excess payment receivable	$ 4,542
Revolver
Debt Instrument [Line Items]
Outstanding balance of loan			$ 60,093
Revolver | Wells Fargo Bank
Debt Instrument [Line Items]
Outstanding balance of loan	$ 57,796
Debt instrument, interest rate (as a percent)	11.60%
Remaining balance of revolver	$ 34,635
Term Loan
Debt Instrument [Line Items]
Outstanding balance of loan	3,102		3,037
Term Loan | VIE Financing
Debt Instrument [Line Items]
Outstanding balance of loan	36,299		$ 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	Jul. 02, 2023 USD ($)
Debt Instruments [Abstract]
Remainder of 2023	$ 58,801
2024	2,103
2025	2,185
2026	1,752
2027	1,219
Thereafter	31,137
Total	$ 97,197

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022	Jan. 01, 2023
Income Tax Disclosure [Abstract]
Federal statutory income tax rate (as a percent)	21%	21%	21%	21%
Effective income tax rate (as a percent)	(0.40%)	(0.50%)	(0.20%)	0.50%
Valuation allowance	$ 20,734,000		$ 20,734,000		$ 19,855,000
Penalties and interest expense	$ 0	$ 0	$ 0	$ 0

Shareholders' Equity (Details)

Shareholders' Equity (Details) - Jefferies LLC - Open Market Sales - USD ($)		1 Months Ended	6 Months Ended
	Sep. 02, 2022	Aug. 09, 2023	Jul. 02, 2023
Class of Stock [Line Items]
Sale of stock, ATM authorized amount	$ 100,000,000
Shares issued in offering (in shares)			1,301,470
Offering price per share (in USD per share)			$ 10.34
Proceeds from offering			$ 13,454,000
Stock offering costs			$ 404,000
Sale of stock, remaining authorized shares (in shares)			82,506,000
Subsequent Event
Class of Stock [Line Items]
Shares issued in offering (in shares)		779,697
Offering price per share (in USD per share)		$ 9.72
Stock offering costs		$ 227,000
Gross proceeds from issuance or sale of equity		$ 7,575,000
Sale of stock, remaining authorized shares (in shares)		74,930,000

Share-Based Compensation - Sche

Share-Based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	$ 1,967	$ 2,043	$ 3,820	$ 5,050
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	291	534	804	1,574
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	217	127	379	333
Selling, general and administrative expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	$ 1,459	$ 1,382	$ 2,637	$ 3,143

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Contingent Consideration - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 0	$ 816
Payments	0	(375)
Change in fair value	0	0
Ending balance	$ 0	$ 441

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands		6 Months Ended
	Jan. 25, 2021	Jul. 02, 2023	Feb. 28, 2023
Commitments And Contingencies [Line Items]
Contractual commitments outstanding		$ 8,600
Matching Share of Osceola Project Costs
Commitments And Contingencies [Line Items]
Matching share commitment (as a percent)			20%
Total amount committed			$ 9,100
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	18 months
Center For NeoVation | Maximum
Commitments And Contingencies [Line Items]
Contract termination fee	$ 15
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) - Affiliated Entity - USD ($) $ in Thousands	1 Months Ended
	Aug. 31, 2022	Jan. 03, 2021
Oxbow
Related Party Transaction [Line Items]
Funding agreement with related party (up to)	$ 12,500
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%

Related Party Transactions - Su

Related Party Transactions - Summary of Minimum Lease Payments Sale Lease back Transactions (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 03, 2022
Related Party Transaction [Line Items]
Total		$ 184
Affiliated Entity | Oxbow Realty
Related Party Transaction [Line Items]
Remainder of 2023	$ 2,474
2024	5,031
2025	5,132
2026	5,234
2027	5,339
Thereafter	78,776
Total lease payments	101,986
Less: imputed interest	(74,246)
Total	$ 27,740

Variable Interest Entity - Summ

Variable Interest Entity - Summary of Condensed Balance Sheet Statements (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Condensed Balance Sheet Statements, Captions [Line Items]
Cash and cash equivalents	$ 16,178	$ 30,025
Total assets	298,736	305,764
Deferred revenue	87,782	96,153
Debt	90,975	92,853
Total liabilities	235,854	251,787
VIE Financing
Condensed Balance Sheet Statements, Captions [Line Items]
Cash and cash equivalents	20	16
Accounts receivable	4,545	0
Prepaid expenses	21	860
Finance receivable	40,388	37,652
Other assets	746	256
Total assets	45,720	38,784
Accounts payable	4,280	117
Accrued expenses	243	1,581
Deferred revenue	1,386	0
Debt	36,252	36,778
Total liabilities	$ 42,161	$ 38,476

Variable Interest Entity - Su_2

Variable Interest Entity - Summary of Condensed Income Statements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Condensed Income Statements, Captions [Line Items]
Interest expense	$ 2,950	$ 1,040	$ 5,421	$ 2,069
Net income	(8,590)	(13,005)	(12,863)	(29,611)
VIE Financing
Condensed Income Statements, Captions [Line Items]
Revenue	2,631	1,262	3,949	2,522
General and administrative expenses	252	102	545	179
Interest expense	313	334	631	658
Total expenses	565	436	1,176	837
Net income	$ 2,066	$ 826	$ 2,773	$ 1,685

Leases - Narrative (Details)

Leases - Narrative (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Leases [Abstract]
Revenue from operating lease	$ 21,000
Estimated lease term (in years)	4 years 6 months