SkyWater Technology (SKYT) 10-Q 10 May 24 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	May 08, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
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	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		47,349,929
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001819974
Current Fiscal Year End Date	--12-29
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 20,002	$ 18,382
Accounts receivable (net of allowance for credit losses of $96 and $180, respectively)	57,895	65,961
Contract assets (net of allowance for credit losses of $62 and $99, respectively)	24,922	29,666
Inventory	15,558	15,341
Prepaid expenses and other current assets	24,528	16,853
Income tax receivable	82	172
Total current assets	142,987	146,375
Property and equipment, net	157,281	159,367
Intangible assets, net	6,320	5,672
Other assets	5,693	5,342
Total assets	312,281	316,756
Current liabilities
Current portion of long-term debt	3,631	3,976
Accounts payable	25,919	19,614
Accrued expenses	30,512	48,291
Short-term financing, net of unamortized debt issuance costs	32,612	22,765
Contract liabilities	56,109	49,551
Total current liabilities	148,783	144,197
Long-term liabilities
Long-term debt, less current portion and net of unamortized debt issuance costs	35,665	36,098
Long-term contract liabilities	58,605	65,754
Deferred income tax liability, net	623	679
Other long-term liabilities	9,204	9,327
Total long-term liabilities	104,097	111,858
Total liabilities	252,880	256,055
Commitments and contingencies (Note 10)
Shareholders’ equity
Preferred stock, $0.01 par value per share (80,000,000 shares authorized; zero shares issued and outstanding as of March 31, 2024 and December 31, 2023)	0	0
Common stock, $0.01 par value per share (200,000,000 shares authorized; 47,338,069 and 47,028,159 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively)	473	470
Additional paid-in capital	181,802	178,473
Accumulated deficit	(130,932)	(125,203)
Total shareholders’ equity, SkyWater Technology, Inc.	51,343	53,740
Noncontrolling interests	8,058	6,961
Total shareholders’ equity	59,401	60,701
Total liabilities and shareholders’ equity	$ 312,281	$ 316,756

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss	$ 96	$ 180
Contract asset, allowance for credit loss	$ 62	$ 99
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)	47,338,069	47,028,159
Common stock, shares outstanding (in shares)	47,338,069	47,028,159

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Income Statement [Abstract]
Revenue	$ 79,636	$ 66,094
Cost of revenue	66,656	49,626
Gross profit	12,980	16,468
Research and development expense	4,012	2,668
Selling, general, and administrative expense	11,169	14,895
Operating loss	(2,201)	(1,095)
Interest expense	(2,390)	(2,471)
Loss before income taxes	(4,591)	(3,566)
Income tax expense	41	0
Net loss	(4,632)	(3,566)
Less: net income attributable to noncontrolling interests	1,097	707
Net loss attributable to SkyWater Technology, Inc.	$ (5,729)	$ (4,273)
Net loss per share attributable to common shareholders, basic (in USD per share)	$ (0.12)	$ (0.10)
Net loss per share attributable to common shareholders, diluted (in USD per share)	$ (0.12)	$ (0.10)
Weighted average shares used in computing net loss per common share, basic (in shares)	47,098,519	43,817,417
Weighted average shares used in computing net loss per common share, diluted (in shares)	47,098,519	43,817,417

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders’ Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Total Shareholders’ Equity, SkyWater Technology, Inc.	Total Shareholders’ Equity, SkyWater Technology, Inc. Cumulative Effect, Period of Adoption, Adjustment	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment	Noncontrolling Interests
Preferred stock, balance at the beginning (in shares) at Jan. 01, 2023					0
Common stock, balance at the beginning (in shares) at Jan. 01, 2023						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 under the ATM (in shares)						245,000
Issuance of common stock under the ATM	2,696		2,696			$ 3	2,693
Issuance of common stock pursuant to equity compensation plans (in shares)						330,000
Issuance of common stock pursuant to equity compensation plans	2,917		2,917			$ 3	2,914
Equity-based compensation	1,853		1,853				1,853
Net distribution to VIE member	(30)									(30)
Net (loss) income	(3,566)		(4,273)					(4,273)		707
Preferred stock, balance at the end (in shares) at Apr. 02, 2023					0
Common stock, balance at the end (in shares) at Apr. 02, 2023						44,280,000
Ending balance at Apr. 02, 2023	$ 57,472		56,487		$ 0	$ 443	154,764	(98,720)		985
Preferred stock, balance at the beginning (in shares) at Dec. 31, 2023	0				0
Common stock, balance at the beginning (in shares) at Dec. 31, 2023	47,028,159					47,028,000
Beginning balance at Dec. 31, 2023	$ 60,701		53,740		$ 0	$ 470	178,473	(125,203)		6,961
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to equity compensation plans (in shares)						310,000
Issuance of common stock pursuant to equity compensation plans	1,260		1,260			$ 3	1,257
Equity-based compensation	2,072		2,072				2,072
Net (loss) income	$ (4,632)		(5,729)					(5,729)		1,097
Preferred stock, balance at the end (in shares) at Mar. 31, 2024	0				0
Common stock, balance at the end (in shares) at Mar. 31, 2024	47,338,069					47,338,000
Ending balance at Mar. 31, 2024	$ 59,401		$ 51,343		$ 0	$ 473	$ 181,802	$ (130,932)		$ 8,058

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Cash flows from operating activities
Net loss	$ (4,632)	$ (3,566)
Adjustments to reconcile net loss to net cash flows used in operating activities
Depreciation and amortization	5,065	7,352
Amortization of debt issuance costs included in interest expense	440	357
Long-term incentive and equity-based compensation	2,072	1,853
Deferred income taxes	(56)	0
Provision for credit losses	(121)	2,154
Changes in operating assets and liabilities
Accounts receivable and contract assets	12,933	(6,875)
Inventories	(217)	(969)
Prepaid expenses and other assets	(8,025)	(2,653)
Accounts payable and accrued expenses	(10,883)	(3,494)
Contract liabilities, current and long-term	(590)	(5,245)
Income tax receivable and payable	90	0
Net cash used in operating activities	(3,924)	(11,086)
Cash flows from investing activities
Purchase of software and licenses	(811)	(213)
Purchases of property and equipment	(1,259)	(2,851)
Net cash used in investing activities	(2,070)	(3,064)
Cash flows from financing activities
Draws on revolving line of credit	90,500	59,350
Paydowns of revolving line of credit	(81,930)	(63,310)
Proceeds from tool financings	920	494
Principal payments on long-term debt	(862)	(317)
Cash paid for principal on finance leases	(274)	(343)
Proceeds from the issuance of common stock pursuant to equity compensation plans	1,260	1,275
Proceeds from the issuance of common stock under the ATM	0	2,696
Cash paid on licensed technology obligations	(2,000)	(1,850)
Net distributions to noncontrolling interest	0	(30)
Net cash provided by (used in) financing activities	7,614	(2,035)
Net increase (decrease) in cash and cash equivalents	1,620	(16,185)
Cash and cash equivalents - beginning of period	18,382	30,025
Cash and cash equivalents - end of period	20,002	13,840
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	1,372	1,286
Cash paid during the period for income taxes	7	0
Noncash investing and financing activity
Capital expenditures incurred, not yet paid	1,732	421
Equipment acquired through capital lease obligations	0	765
Intangible assets acquired, not yet paid	$ 713	$ 500

Nature of Business

Nature of Business	3 Months Ended
	Mar. 31, 2024
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 foundation of proprietary technology to co-develop process technology intellectual property with its customers that enables disruptive concepts through its Advanced Technology Services (“ATS”) for diverse microelectronics (integrated circuits (“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 (the “JOBS Act”).

Basis of Presentation and Princ

Basis of Presentation and Principles of Consolidation	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The unaudited interim condensed consolidated financial statements as of March 31, 2024, and for the three-month periods ended March 31, 2024 and April 2, 2023, 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 annual consolidated financial statements. These interim condensed consolidated financial statements should be read in conjunction with SkyWater’s annual consolidated financial statements and the related notes thereto as of December 31, 2023 and for the fiscal year then ended. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, including normal and recurring adjustments, necessary for the fair presentation of the Company’s consolidated financial position as of March 31, 2024 and its consolidated results of operations, shareholders’ equity, and cash flows for the three-month periods ended March 31, 2024 and April 2, 2023. The consolidated results of operations for the three-month period ended March 31, 2024 are not necessarily indicative of the results of operations to be expected for the fiscal year ending December 29, 2024, or for any other interim period, or for any other future fiscal year. Principles of Consolidation The interim condensed consolidated financial statements include the Company’s assets, liabilities, revenues, and expenses, as well as the assets, liabilities, revenues, and expenses of 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. All intercompany accounts and transactions have been eliminated in consolidation. Liquidity and Cash Requirements The accompanying interim 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-month periods ended March 31, 2024 and April 2, 2023, the Company incurred net losses attributable to SkyWater Technology, Inc. of $5,729 and $4,273, respectively. As of March 31, 2024 and December 31, 2023, the Company had cash and cash equivalents of $20,002 and $18,382, respectively. 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 its operations and maintain compliance with financial covenants for the next twelve months from the date these interim condensed consolidated financial statements are issued. The Company has identified specific actions it could take to reduce operating costs to improve cash flow, including reductions in spending and delays in hiring 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 has also obtained a support letter from Oxbow Industries, LLC (“Oxbow Industries”), an affiliate of the Company’s principal stockholder, to provide funding in an amount up to $12,500, if necessary, to enable the Company to meet its obligations as they become due. The support letter expires March 18, 2026. 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 date these interim condensed consolidated financial statements are issued. Additionally, the Company could 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. The Company’s ability to access additional funds depends on prevailing economic conditions and other factors, many of which are beyond SkyWater’s control. 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. Use of Estimates The preparation of the interim 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 as of the date of the interim condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods then ended. 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 attributable to SkyWater Technology, Inc. by the weighted-average number of shares outstanding during the reporting periods, without consideration for potentially dilutive securities. Diluted net loss per common share is computed by dividing the net loss attributable to SkyWater Technology, Inc. by the weighted-average number of shares and potentially dilutive securities outstanding during the reporting periods determined using the treasury-stock method. Because the Company reported a net loss attributable to SkyWater Technology, Inc. for the three-month periods ended March 31, 2024 and April 2, 2023, 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 March 31, 2024 and April 2, 2023, there were restricted stock units and stock options totaling 996,726 and 2,949,000, 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-month periods ended March 31, 2024 and April 2, 2023: Three-Month Period Ended March 31, 2024 April 2, 2023 (in thousands, except per share data) Numerator: net loss attributable to SkyWater Technology, Inc. $ (5,729) $ (4,273) Denominator: weighted-average common shares outstanding, basic and diluted 47,099 43,817 Net loss per common share, basic and diluted $ (0.12) $ (0.10) Reportable 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 when making decisions regarding resource allocation and assessing performance. SkyWater operates and manages its business as one reportable segment.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Measurement of Credit Losses on Financial Instruments,” later codified in Topic 326, “Financial Instruments – Credit Losses” (“Topic 326”). Topic 326 replaces the preexisting U.S. GAAP guidance that only required the recognition of credit losses when losses were probable and estimable. Topic 326 now requires recognition of credit losses based on SkyWater’s expectation of losses to be incurred while the financial instrument is held. Topic 326 was effective for most public business entities for fiscal years beginning after December 15, 2019. As an emerging growth company, SkyWater adopted Topic 326 on January 2, 2023 using the modified retrospective approach. Upon adoption, the Company increased its accumulated deficit by $375 for the effects of increasing its allowance for credit losses as of January 2, 2023. All other impacts to SkyWater’s consolidated financial position, results of operations, and cash flows were immaterial. Recently Issued Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting.” The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. SkyWater will reflect the amended disclosure requirements of this update in its annual consolidated financial statements for its fiscal year ending December 29, 2024 and for the interim periods in its fiscal year ending December 28, 2025. Given that the Company reports as a single reportable segment, the impacts of adopting the provisions of this update will not be significant. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes.” The amendments in this update improve existing income tax disclosures, notably with respect to the income tax rate reconciliation and income taxes paid disclosures, and are effective for annual periods beginning after December 15, 2025. As an emerging growth company, SkyWater currently anticipates that it will adopt the amendments in this update for its fiscal year ending January 3, 2027. If the Company ceases to qualify as an emerging growth company before the end of its fiscal year ending December 29, 2024, the Company will adopt this ASU at an earlier date. The Company is evaluating the impacts of the amendments on its consolidated financial statements and the accompanying notes to the financial statements. Significant Accounting Policies

Revenue

Revenue	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Disaggregated Revenue The Company recognizes ATS development, tools, and Wafer Services revenues pursuant to our revenue recognition policies as described in Note 3 – Summary of Significant Accounting Policies to the annual consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The following tables disclose revenue by product type and the timing of recognition of revenue for transfer of goods and services to customers: Three-Month Period Ended March 31, 2024 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Per Topic 842 Total Revenue ATS development Time and materials contracts $ — $ 42,496 $ — $ 42,496 Fixed price contracts — 17,522 — 17,522 Other — — 1,167 1,167 Total ATS development — 60,018 1,167 61,185 Tools 8,459 — — 8,459 Wafer Services 1,145 8,847 — 9,992 Total $ 9,604 $ 68,865 $ 1,167 $ 79,636 Three-Month Period Ended April 2, 2023 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Per Topic 842 Total Revenue ATS development Time and materials contracts $ — $ 27,295 $ — $ 27,295 Fixed price contracts — 19,308 — 19,308 Other — — 1,167 1,167 Total ATS development — 46,603 1,167 47,770 Tools 536 — — 536 Wafer Services 3,950 13,838 — 17,788 Total $ 4,486 $ 60,441 $ 1,167 $ 66,094 The following table discloses revenue for the three-month periods ended March 31, 2024 and April 2, 2023 by country as determined based on customer address: Three-Month Period Ended March 31, 2024 April 2, 2023 United States $ 76,224 $ 58,202 Canada 2,233 2,388 Hong Kong 47 3,019 United Kingdom 285 104 All others 847 2,381 Total $ 79,636 $ 66,094 Three customers each accounted for 10% or more of revenue, and in aggregate accounted for 58% and 54% of revenue for the three-month periods ended March 31, 2024 and April 2, 2023, respectively. The loss of a major customer could adversely affect the Company’s operating results and financial condition. Deferred Contract Costs The Company recognizes an asset for the incremental cost of obtaining a contract with a customer (i.e., deferred contract costs) when costs are considered recoverable and the duration of the contract is in excess of one year. Deferred contract costs are amortized as the related revenue is recognized. The Company recognized amortization of deferred contract costs totaling $172 and $746 for the three-month periods ended March 31, 2024 and April 2, 2023, respectively. Contract Assets Contract assets represent SkyWater’s rights to payments for services it has transferred to its customers, but has not yet billed to its customers. Contract assets were $24,922 and $29,666 at March 31, 2024 and December 31, 2023, respectively, and are presented net of allowances for expected credit losses of $62 and $99, respectively, and net of accrued contract liabilities arising from certain contracts expected to generate losses over the remaining period of performance. As of March 31, 2024 and April 2, 2023, the Company maintained liabilities of $8,004 and $0, respectively, arising from contracts expected to generate losses. Contract Liabilities The Company’s contract liabilities principally consist of deferred revenue on customer contracts and deferred lease revenue representing customer prepayments on a leasing arrangement in which the Company serves as lessor. Deferred revenue on customer contracts represents payments from customers for which performance obligations have not yet been satisfied. In some instances, cash may be received, or payment may be contractually due by a customer before the related revenue is recognized. The contract liabilities and other significant components of contract liabilities at March 31, 2024 and December 31, 2023 are as follows: March 31, 2024 December 31, 2023 Contract Deferred Revenue (1) Lease Deferred Revenue Total Contract Liabilities Contract Deferred Revenue (1) Lease Deferred Revenue Total Contract Liabilities Current $ 51,441 $ 4,668 $ 56,109 $ 44,883 $ 4,668 $ 49,551 Long-term 57,828 777 58,605 63,810 1,944 65,754 Total $ 109,269 $ 5,445 $ 114,714 $ 108,693 $ 6,612 $ 115,305 __________________ (1) Contract deferred revenue includes $56,542 and $59,323 at March 31, 2024 and December 31, 2023, respectively, related to material rights provided to a significant customer in exchange for funding additional manufacturing capacity. Of these amounts, $11,123 and $11,123 were classified as current in the interim condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023, respectively. The change in contract liabilities during the three-month periods ended March 31, 2024 and April 2, 2023 are as follows: Three-Month Period Ended March 31, 2024 April 2, 2023 Balance at beginning of period $ 115,305 $ 96,153 Revenue recognized included in the balance at the beginning of the period (12,686) (6,020) Increase due to payments received, excluding amounts recognized as revenue 12,095 775 Balance at end of period $ 114,714 $ 90,908 Remaining Performance Obligations At March 31, 2024, the Company had $144,892 of remaining performance obligations that had not been fully satisfied on contracts with original expected durations of one year or more, which were primarily related to ATS development and tools revenue contracts. The Company expects to recognize those revenues as it satisfies its performance obligations, which is not expected to 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 a significant financing component 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	3 Months Ended
	Mar. 31, 2024
Balance Sheet Information [Abstract]
Balance Sheet Information	Balance Sheet Information Certain significant amounts included in the Company’s interim condensed consolidated balance sheets are summarized in the following tables: Three-Month Period Ended Allowance for credit losses - Accounts receivable March 31, 2024 April 2, 2023 Balance at beginning of period $ 180 $ 1,638 Add Adoption of Credit Loss Standard (Topic 326) — 168 Provision for credit losses (84) 2,102 Deduct Accounts written-off — — Less recoveries of accounts charged-off — — Net account charge-offs (recoveries) — — Balance at end of period $ 96 $ 3,908 Three-Month Period Ended Allowance for credit losses - Contract assets March 31, 2024 April 2, 2023 Balance at beginning of period $ 99 $ — Add Adoption of Credit Loss Standard (Topic 326) — 207 Provision for credit losses (37) 52 Deduct Accounts written-off — — Less recoveries of accounts charged-off — — Net account charge-offs (recoveries) — — Balance at end of period $ 62 $ 259 Inventory March 31, 2024 December 31, 2023 Raw materials $ 5,113 $ 4,775 Work-in-process 12 19 Supplies and spare parts 10,433 10,547 Total inventories, current 15,558 15,341 Inventory, non-current (1) 3,586 3,293 Total inventory $ 19,144 $ 18,634 __________________ (1) Inventory, non-current consists of spare parts that will not be used within twelve months following the date of the interim condensed consolidated balance sheets. Prepaid expenses and other current assets March 31, 2024 December 31, 2023 Prepaid expenses $ 4,534 $ 2,663 Equipment purchased for customers (1) 18,437 12,737 Deferred contract costs 1,557 1,453 Total prepaid assets and other current assets $ 24,528 $ 16,853 __________________ (1) The Company acquires equipment for its customers that will be installed and calibrated in SkyWater’s facility. Prior to the customer obtaining ownership and control of the equipment, the Company records costs, including equipment acquisition costs, incurred to date within prepaid expenses and other current assets. These deferred costs will be recognized as a cost of revenue when control of the equipment transfers to the customer. Property and equipment, net March 31, 2024 December 31, 2023 Land $ 5,396 $ 5,396 Buildings and improvements 88,979 88,782 Machinery and equipment 192,629 193,977 Property and equipment placed in service, at cost (1) 287,004 288,155 Less: accumulated depreciation (1) (141,095) (137,767) Property and equipment placed in service, net (1) 145,909 150,388 Property and equipment not yet in service 11,372 8,979 Total property and equipment, net $ 157,281 $ 159,367 __________________ (1) Includes $13,332 and $13,332 of cost and $4,137 and $3,976 of accumulated depreciation associated with capital assets subject to financing leases at March 31, 2024 and December 31, 2023, respectively. Depreciation expense was $4,690 and $6,856 for the three-month periods ended March 31, 2024 and April 2, 2023, respectively, substantially all of which was classified as cost of revenue. Intangible assets consist of (1) purchased software and license costs from the Company’s acquisition of the business in 2017; and (2) payments made under software and technology licensing agreements with third parties. During the three-month period ended March 31, 2024, the Company acquired third-party software and licensed technology placed in service of $399, which will be amortized over a weighted average estimated life of 8.0 years. Intangible assets are summarized as follows: Intangible assets, net March 31, 2024 December 31, 2023 Software and licensed technology $ 12,546 $ 12,148 Less: accumulated amortization (6,851) (6,476) Intangible assets placed in service, net 5,695 5,672 Intangible assets not yet in service 625 — Total intangible assets, net $ 6,320 $ 5,672 For the three-month periods ended March 31, 2024 and April 2, 2023, amortization of software and licenses was $375 and $496, respectively. Remaining estimated aggregate annual amortization expense for intangible assets placed in service is as follows for future fiscal years: Amortization Remainder of 2024 $ 903 2025 1,059 2026 777 2027 396 2028 396 Thereafter 2,164 Total $ 5,695 Other assets March 31, 2024 December 31, 2023 Inventory, non-current (1) $ 3,586 $ 3,293 Operating lease right-of-use assets 85 96 Other assets 2,022 1,953 Total other assets $ 5,693 $ 5,342 __________________ (1) Inventory, non-current consists of spare parts that will not be used within twelve months following the date of the interim condensed consolidated balance sheets. Accrued expenses March 31, 2024 December 31, 2023 Accrued compensation $ 7,214 $ 10,947 Accrued commissions 381 488 Accrued royalties 3,672 3,122 Current portion of operating lease liabilities 49 48 Current portion of finance lease liabilities 637 645 Accrued inventory 223 1,261 Accrued consulting fees — 9,345 Accrued restructuring costs (1) — 1,319 Other accrued expenses 18,336 21,116 Total accrued expenses $ 30,512 $ 48,291 __________________ (1) The Company incurred restructuring costs of $1,921 during the fiscal year ended December 31, 2023. The Company paid $602 during the fiscal year ended December 31, 2023, and the remainder was paid in the three-month period ended March 31, 2024. Other long-term liabilities March 31, 2024 December 31, 2023 Finance lease obligations $ 9,165 $ 9,275 Operating lease liability 39 52 Total other long-term liabilities $ 9,204 $ 9,327

Debt

Debt	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Debt	Debt The components of debt outstanding at March 31, 2024 and December 31, 2023 are as follows: March 31, 2024 December 31, 2023 Short-term financing Revolver $ 30,365 $ 21,794 Tool financing advance payments 4,742 3,822 Unamortized debt issuance costs (2,495) (2,851) Total short-term financing, net of unamortized debt issuance costs 32,612 22,765 Long-term debt VIE Financing 35,494 35,765 Tool financing loans 6,208 6,799 Unamortized debt issuance costs (2,406) (2,490) Total long-term debt, including current maturities 39,296 40,074 Less: Current portion of long-term debt (3,631) (3,976) Total long-term debt, excluding current portion $ 35,665 $ 36,098 Revolver The outstanding balance of the revolving line of credit under the Company’s Loan and Security Agreement with Siena Lending Group LLC (the “Revolver”) was $30,365 as of March 31, 2024 at an interest rate of 10.7% due in December 2025. The remaining availability under the Revolver was $62,708 as of March 31, 2024. As of March 31, 2024, the Company was in compliance with applicable financial covenants of the Revolver. VIE Financing On September 30, 2020, Oxbow Realty, the Company’s consolidated VIE (see Note 11 – Related Party Transactions and Note 12 – Variable Interest Entity ), entered into a loan agreement for $39,000 (the “VIE Financing”) to finance the acquisition of the land and building of the SkyWater Minnesota facility. 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 Industries, who is also the sole equity holder of Oxbow Realty. The VIE financing is not subject to financial covenants. 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 the Company’s occupancy of the SkyWater Minnesota facility and SkyWater’s financial performance. The triggering events are not financial covenants and 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, restructuring, and 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 March 31, 2024, Oxbow Realty maintained a $9,559 receivable for the cumulative amount of excess payments held by the lender in the restricted account. Tool Financing Loans The Company, from time to time, enters into financing arrangements with lenders to finance the purchase of manufacturing tools and other equipment. These 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 associated equipment recorded in property and equipment, net and the proceeds received, net of scheduled repayments of the financings, recorded as debt on the Company’s interim condensed consolidated balance sheets. Additionally, advance payments made to tool vendors by financing lenders on the Company’s behalf totaled $4,742 and $3,822 as of March 31, 2024 and December 31, 2023, respectively. When the financed tools are placed into service, the Company anticipates financing agreements will be executed to repay the lender the outstanding financial liability over a period of time. The advance payments are recorded as short-term financing on the Company’s interim condensed consolidated balance sheets. Maturities Future principal payments of the Company’s long-term debt, excluding unamortized debt issuance costs, are as follows: Remainder of 2024 $ 2,694 2025 3,879 2026 2,771 2027 1,219 2028 1,259 Thereafter 29,880 Total $ 41,702

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective tax rates for the three-month periods ended March 31, 2024 and April 2, 2023 differ from its 21% U.S. statutory corporate tax rate due to the impact of state income taxes, permanent tax differences, the tax impact of the vesting of restricted stock units, and changes in the Company’s 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 rates for the three-month periods ended March 31, 2024 and April 2, 2023 were (0.9)% and 0.0%, 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 $29,012 and $26,111 was recorded at March 31, 2024 and December 31, 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 interim condensed consolidated statement of operations. There were no interest or penalties incurred during the three-month periods ended March 31, 2024 and April 2, 2023. 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 U.S., 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	3 Months Ended
	Mar. 31, 2024
Stockholders' Equity Note [Abstract]
Shareholders' Equity	Shareholders’ Equity On September 2, 2022, SkyWater entered into an Open Market Sale Agreement with Jefferies LLC with respect to an at the market offering program (the “ATM Program”). Pursuant to the agreement, the Company may, from time to time, offer and sell up to $100,000 in shares of the Company’s common stock. During the three-month period ended March 31, 2024, the Company did not sell shares under the ATM Program. During the three-month period ended April 2, 2023, the Company sold 245,289 shares under the ATM Program. From the date of the ATM program through March 31, 2024, the Company has cumulatively sold 2,516,586 shares at an average sale price of $9.96 per share, resulting in gross proceeds of approximately $25,070 before deducting sales commissions and fees of approximately $1,212. The Company used the net proceeds to pay down the Revolver and fund its operations. As of March 31, 2024, the Company was authorized to sell an additional $74,930 in shares under the ATM Program.

Equity-Based Compensation

Equity-Based Compensation	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Equity-Based Compensation	Equity-Based Compensation Equity-based compensation expense was recorded in the interim condensed consolidated statements of operations as follows: Three-Month Period Ended March 31, 2024 April 2, 2023 Cost of revenue $ 455 $ 513 Research and development expense 107 162 Selling, general and administrative expense 1,510 1,178 $ 2,072 $ 1,853

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Fair value represents the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. To determine fair value, the Company uses a fair value hierarchy categorized into three levels based on inputs used. Generally, the three levels are as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities; • Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The carrying values of accounts receivable, accounts payable, accrued liabilities, and other financial working capital items approximate fair values at March 31, 2024 and December 31, 2023 due to the short maturity of these items. The carrying amount of the borrowing under the Revolver approximates its fair value due to the frequency of the floating interest rate resets on the debt. The fair value of the Revolver was determined based on inputs that are classified as Level 2 in the fair value hierarchy. The Company’s non-financial assets, such as property and equipment and intangible assets, are recorded at fair value upon acquisition and are remeasured at fair value only if an impairment charge is recognized. As of March 31, 2024 and December 31, 2023, the Company did not have any assets or liabilities measured at fair value on a non-recurring basis.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
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 business. Although the results of litigation and claims cannot be predicted with certainty, the resolution of these ordinary-course matters are not expected to have a material adverse effect on its business, consolidated operating results, financial condition, or cash flows. Even if any particular litigation is resolved in a manner that is favorable to the Company, such litigation can have a negative impact on the Company 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, primarily related to the purchase of tools. The Company had $8,370 and $7,910 of contractual commitments outstanding as of March 31, 2024 and December 31, 2023, respectively, that it expects to pay in the next twelve months using cash on hand and operating cash flows. 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 (also known as “BRIDG”), to lease and operate the Center for NeoVation (the “CfN”), a semiconductor research and development and manufacturing facility in Florida. Under the CfN Lease, the Company agrees to bring the plant to full production capacity within five 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 the facility to its full production capacity. Investments and costs required to bring the facility to its 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, the Company must continue to operate the CfN until either a replacement operator for the CfN is identified, or the 18-month termination notice period expires. The Company may be required to make a payment of up to $15,000 to Osceola upon termination. Build Back Better Grant In third quarter 2022, the U.S. Department of Commerce Economic Development Administration granted funds to Osceola and BRIDG for continued development of Central Florida’s Semiconductor Cluster for Broad-Based Prosperity through the Build Back Better Regional Challenge, a portion of which is committed to the expansion of the CfN and purchase, installation, and qualification of equipment in the CfN. In February 2023, SkyWater committed to a 20% matching share contribution of the project costs to Osceola totaling approximately $9,100. SkyWater’s commitment to fund this matching contribution is limited to $1,000 in any single calendar quarter. As of March 31, 2024, SkyWater has not been obligated to pay any portion of the matching contribution to which it has committed.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2024
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 2024, the agreement was amended to extend the term through March 18, 2026. No amounts have been provided to the Company under this agreement. Oxbow Realty, the Company’s consolidated VIE, maintains arrangements with other Oxbow affiliated entities that it recognizes in its financial statements. The Company’s interim condensed consolidated financial statements include $1,204 of accounts payable in relation to these arrangements. Sale-Leaseback Transaction On September 29, 2020, SkyWater entered into an agreement to sell the land and building of its Minnesota facility 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 lease 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. In the most recent month, the rental payment to Oxbow Realty was $418. 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 March 31, 2024 were as follows (such amounts are eliminated from the Company’s interim condensed consolidated financial statements due to the consolidation of Oxbow Realty, see Note 12 – Variable Interest Entity ): Remainder of 2024 $ 3,794 2025 5,149 2026 5,252 2027 5,357 2028 5,464 Thereafter 72,408 Total lease payments 97,424 Less: imputed interest (69,508) Total $ 27,916

Variable Interest Entity

Variable Interest Entity	3 Months Ended
	Mar. 31, 2024
Condensed Financial Information Disclosure [Abstract]
Variable Interest Entity	Variable Interest Entity Oxbow Realty was established for the purpose of holding real estate and facilitating real estate transactions on behalf of Oxbow Industries. This included facilitating the purchase of the land and building of SkyWater’s Minnesota facility with proceeds from a bank loan (see Note 6 – Debt ) and managing the leaseback of the land and building to SkyWater (see Note 11 – Related Party Transactions ). Management determined that Oxbow Realty meets the definition of a VIE under Accounting Standards Codification Topic 810, “Consolidations” (“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 over those activities that most significantly affect Oxbow Realty’s economic performance, mainly activities focused on the operation and maintenance of the Minnesota facility. 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 attributable to parties other than the Company’s common stock shareholders. 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 March 31, 2024 and December 31, 2023. The assets and liabilities are presented prior to the elimination of intercompany balances. March 31, 2024 December 31, 2023 Cash and cash equivalents $ 202 $ 9 Accounts receivable 10,567 8,807 Finance receivable 40,821 40,707 Other assets 744 744 Total assets $ 52,334 $ 50,267 Accounts payable $ 7,290 $ 6,053 Accrued expenses 302 248 Contract liabilities 1,232 1,283 Debt 35,452 35,722 Total liabilities $ 44,276 $ 43,306 The following table shows the revenue and expenses of Oxbow Realty for the three-month periods ended March 31, 2024 and April 2, 2023. These results of Oxbow Realty are presented prior to the elimination of intercompany transactions. Three-Month Period Ended March 31, 2024 April 2, 2023 Revenue $ 1,419 $ 1,318 General and administrative expenses 16 293 Interest expense 306 318 Total expenses 322 611 Net income $ 1,097 $ 707

Leases

Leases	3 Months Ended
	Mar. 31, 2024
Leases [Abstract]
Leases	Leases SkyWater 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 Minnesota facility 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

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Pay vs Performance Disclosure
Net income	$ (5,729)	$ (4,273)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The interim condensed consolidated financial statements include the Company’s assets, liabilities, revenues, and expenses, as well as the assets, liabilities, revenues, and expenses of 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. All intercompany accounts and transactions have been eliminated in consolidation.
Liquidity and Cash Requirements	Liquidity and Cash Requirements The accompanying interim 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-month periods ended March 31, 2024 and April 2, 2023, the Company incurred net losses attributable to SkyWater Technology, Inc. of $5,729 and $4,273, respectively. As of March 31, 2024 and December 31, 2023, the Company had cash and cash equivalents of $20,002 and $18,382, respectively. 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 its operations and maintain compliance with financial covenants for the next twelve months from the date these interim condensed consolidated financial statements are issued. The Company has identified specific actions it could take to reduce operating costs to improve cash flow, including reductions in spending and delays in hiring 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 has also obtained a support letter from Oxbow Industries, LLC (“Oxbow Industries”), an affiliate of the Company’s principal stockholder, to provide funding in an amount up to $12,500, if necessary, to enable the Company to meet its obligations as they become due. The support letter expires March 18, 2026. 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 date these interim condensed consolidated financial statements are issued. Additionally, the Company could 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. The Company’s ability to access additional funds depends on prevailing economic conditions and other factors, many of which are beyond SkyWater’s control. 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.
Use of Estimates	Use of Estimates The preparation of the interim 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 as of the date of the interim condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods then ended. 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 attributable to SkyWater Technology, Inc. by the weighted-average number of shares outstanding during the reporting periods, without consideration for potentially dilutive securities. Diluted net loss per common share is computed by dividing the net loss attributable to SkyWater Technology, Inc. by the weighted-average number of shares and potentially dilutive securities outstanding during the reporting periods determined using the treasury-stock method. Because the Company reported a net loss attributable to SkyWater Technology, Inc. for the three-month periods ended March 31, 2024 and April 2, 2023, 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 March 31, 2024 and April 2, 2023, there were restricted stock units and stock options totaling 996,726 and 2,949,000, respectively, excluded from the computation of diluted weighted-average shares outstanding because their inclusion would have been anti-dilutive.
Reportable Segment Information	Reportable 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 when making decisions regarding resource allocation and assessing performance. SkyWater operates and manages its business as one reportable segment.
Recently Adopted Accounting Standards And Recently Issued Accounting Standards Not Yet Adopted	Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Measurement of Credit Losses on Financial Instruments,” later codified in Topic 326, “Financial Instruments – Credit Losses” (“Topic 326”). Topic 326 replaces the preexisting U.S. GAAP guidance that only required the recognition of credit losses when losses were probable and estimable. Topic 326 now requires recognition of credit losses based on SkyWater’s expectation of losses to be incurred while the financial instrument is held. Topic 326 was effective for most public business entities for fiscal years beginning after December 15, 2019. As an emerging growth company, SkyWater adopted Topic 326 on January 2, 2023 using the modified retrospective approach. Upon adoption, the Company increased its accumulated deficit by $375 for the effects of increasing its allowance for credit losses as of January 2, 2023. All other impacts to SkyWater’s consolidated financial position, results of operations, and cash flows were immaterial. Recently Issued Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting.” The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. SkyWater will reflect the amended disclosure requirements of this update in its annual consolidated financial statements for its fiscal year ending December 29, 2024 and for the interim periods in its fiscal year ending December 28, 2025. Given that the Company reports as a single reportable segment, the impacts of adopting the provisions of this update will not be significant.

Basis of Presentation and Pri_2

Basis of Presentation and Principles of Consolidation (Tables)	3 Months Ended
	Mar. 31, 2024
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-month periods ended March 31, 2024 and April 2, 2023: Three-Month Period Ended March 31, 2024 April 2, 2023 (in thousands, except per share data) Numerator: net loss attributable to SkyWater Technology, Inc. $ (5,729) $ (4,273) Denominator: weighted-average common shares outstanding, basic and diluted 47,099 43,817 Net loss per common share, basic and diluted $ (0.12) $ (0.10)

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregated Revenue	The following tables disclose revenue by product type and the timing of recognition of revenue for transfer of goods and services to customers: Three-Month Period Ended March 31, 2024 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Per Topic 842 Total Revenue ATS development Time and materials contracts $ — $ 42,496 $ — $ 42,496 Fixed price contracts — 17,522 — 17,522 Other — — 1,167 1,167 Total ATS development — 60,018 1,167 61,185 Tools 8,459 — — 8,459 Wafer Services 1,145 8,847 — 9,992 Total $ 9,604 $ 68,865 $ 1,167 $ 79,636 Three-Month Period Ended April 2, 2023 Topic 606 Revenue Point-in-Time Over Time Lease Revenue Per Topic 842 Total Revenue ATS development Time and materials contracts $ — $ 27,295 $ — $ 27,295 Fixed price contracts — 19,308 — 19,308 Other — — 1,167 1,167 Total ATS development — 46,603 1,167 47,770 Tools 536 — — 536 Wafer Services 3,950 13,838 — 17,788 Total $ 4,486 $ 60,441 $ 1,167 $ 66,094
Schedule of Revenue by Country	The following table discloses revenue for the three-month periods ended March 31, 2024 and April 2, 2023 by country as determined based on customer address: Three-Month Period Ended March 31, 2024 April 2, 2023 United States $ 76,224 $ 58,202 Canada 2,233 2,388 Hong Kong 47 3,019 United Kingdom 285 104 All others 847 2,381 Total $ 79,636 $ 66,094
Schedule of Contract Liabilities	The contract liabilities and other significant components of contract liabilities at March 31, 2024 and December 31, 2023 are as follows: March 31, 2024 December 31, 2023 Contract Deferred Revenue (1) Lease Deferred Revenue Total Contract Liabilities Contract Deferred Revenue (1) Lease Deferred Revenue Total Contract Liabilities Current $ 51,441 $ 4,668 $ 56,109 $ 44,883 $ 4,668 $ 49,551 Long-term 57,828 777 58,605 63,810 1,944 65,754 Total $ 109,269 $ 5,445 $ 114,714 $ 108,693 $ 6,612 $ 115,305 __________________ (1) Contract deferred revenue includes $56,542 and $59,323 at March 31, 2024 and December 31, 2023, respectively, related to material rights provided to a significant customer in exchange for funding additional manufacturing capacity. Of these amounts, $11,123 and $11,123 were classified as current in the interim condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023, respectively. The change in contract liabilities during the three-month periods ended March 31, 2024 and April 2, 2023 are as follows: Three-Month Period Ended March 31, 2024 April 2, 2023 Balance at beginning of period $ 115,305 $ 96,153 Revenue recognized included in the balance at the beginning of the period (12,686) (6,020) Increase due to payments received, excluding amounts recognized as revenue 12,095 775 Balance at end of period $ 114,714 $ 90,908

Balance Sheet Information (Tabl

Balance Sheet Information (Tables)	3 Months Ended
	Mar. 31, 2024
Balance Sheet Information [Abstract]
Schedule of Allowance for Credit Loss on Accounts Receivable	Three-Month Period Ended Allowance for credit losses - Accounts receivable March 31, 2024 April 2, 2023 Balance at beginning of period $ 180 $ 1,638 Add Adoption of Credit Loss Standard (Topic 326) — 168 Provision for credit losses (84) 2,102 Deduct Accounts written-off — — Less recoveries of accounts charged-off — — Net account charge-offs (recoveries) — — Balance at end of period $ 96 $ 3,908
Schedule of Contract Assets, Allowance for Credit Loss	Three-Month Period Ended Allowance for credit losses - Contract assets March 31, 2024 April 2, 2023 Balance at beginning of period $ 99 $ — Add Adoption of Credit Loss Standard (Topic 326) — 207 Provision for credit losses (37) 52 Deduct Accounts written-off — — Less recoveries of accounts charged-off — — Net account charge-offs (recoveries) — — Balance at end of period $ 62 $ 259
Schedule of Inventory	Inventory March 31, 2024 December 31, 2023 Raw materials $ 5,113 $ 4,775 Work-in-process 12 19 Supplies and spare parts 10,433 10,547 Total inventories, current 15,558 15,341 Inventory, non-current (1) 3,586 3,293 Total inventory $ 19,144 $ 18,634 __________________ (1) Inventory, non-current consists of spare parts that will not be used within twelve months following the date of the interim condensed consolidated balance sheets.
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets March 31, 2024 December 31, 2023 Prepaid expenses $ 4,534 $ 2,663 Equipment purchased for customers (1) 18,437 12,737 Deferred contract costs 1,557 1,453 Total prepaid assets and other current assets $ 24,528 $ 16,853 __________________ (1) The Company acquires equipment for its customers that will be installed and calibrated in SkyWater’s facility. Prior to the customer obtaining ownership and control of the equipment, the Company records costs, including equipment acquisition costs, incurred to date within prepaid expenses and other current assets. These deferred costs will be recognized as a cost of revenue when control of the equipment transfers to the customer.
Schedule of Property and Equipment, Net	Property and equipment, net March 31, 2024 December 31, 2023 Land $ 5,396 $ 5,396 Buildings and improvements 88,979 88,782 Machinery and equipment 192,629 193,977 Property and equipment placed in service, at cost (1) 287,004 288,155 Less: accumulated depreciation (1) (141,095) (137,767) Property and equipment placed in service, net (1) 145,909 150,388 Property and equipment not yet in service 11,372 8,979 Total property and equipment, net $ 157,281 $ 159,367 __________________ (1)
Schedule of Intangible Assets	Intangible assets are summarized as follows: Intangible assets, net March 31, 2024 December 31, 2023 Software and licensed technology $ 12,546 $ 12,148 Less: accumulated amortization (6,851) (6,476) Intangible assets placed in service, net 5,695 5,672 Intangible assets not yet in service 625 — Total intangible assets, net $ 6,320 $ 5,672
Schedule of Remaining Estimated Aggregate Annual Amortization Expense	Remaining estimated aggregate annual amortization expense for intangible assets placed in service is as follows for future fiscal years: Amortization Remainder of 2024 $ 903 2025 1,059 2026 777 2027 396 2028 396 Thereafter 2,164 Total $ 5,695
Schedule of Other Assets	Other assets March 31, 2024 December 31, 2023 Inventory, non-current (1) $ 3,586 $ 3,293 Operating lease right-of-use assets 85 96 Other assets 2,022 1,953 Total other assets $ 5,693 $ 5,342 __________________ (1) Inventory, non-current consists of spare parts that will not be used within twelve months following the date of the interim condensed consolidated balance sheets.
Schedule of Accrued Expenses	Accrued expenses March 31, 2024 December 31, 2023 Accrued compensation $ 7,214 $ 10,947 Accrued commissions 381 488 Accrued royalties 3,672 3,122 Current portion of operating lease liabilities 49 48 Current portion of finance lease liabilities 637 645 Accrued inventory 223 1,261 Accrued consulting fees — 9,345 Accrued restructuring costs (1) — 1,319 Other accrued expenses 18,336 21,116 Total accrued expenses $ 30,512 $ 48,291 __________________ (1) The Company incurred restructuring costs of $1,921 during the fiscal year ended December 31, 2023. The Company paid $602 during the fiscal year ended December 31, 2023, and the remainder was paid in the three-month period ended March 31, 2024.
Schedule of Other Noncurrent Liabilities	Other long-term liabilities March 31, 2024 December 31, 2023 Finance lease obligations $ 9,165 $ 9,275 Operating lease liability 39 52 Total other long-term liabilities $ 9,204 $ 9,327

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Schedule of Debt Outstanding	The components of debt outstanding at March 31, 2024 and December 31, 2023 are as follows: March 31, 2024 December 31, 2023 Short-term financing Revolver $ 30,365 $ 21,794 Tool financing advance payments 4,742 3,822 Unamortized debt issuance costs (2,495) (2,851) Total short-term financing, net of unamortized debt issuance costs 32,612 22,765 Long-term debt VIE Financing 35,494 35,765 Tool financing loans 6,208 6,799 Unamortized debt issuance costs (2,406) (2,490) Total long-term debt, including current maturities 39,296 40,074 Less: Current portion of long-term debt (3,631) (3,976) Total long-term debt, excluding current portion $ 35,665 $ 36,098
Schedule of Future Principal Payments	Future principal payments of the Company’s long-term debt, excluding unamortized debt issuance costs, are as follows: Remainder of 2024 $ 2,694 2025 3,879 2026 2,771 2027 1,219 2028 1,259 Thereafter 29,880 Total $ 41,702

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Equity-Based Compensation Expense	Equity-based compensation expense was recorded in the interim condensed consolidated statements of operations as follows: Three-Month Period Ended March 31, 2024 April 2, 2023 Cost of revenue $ 455 $ 513 Research and development expense 107 162 Selling, general and administrative expense 1,510 1,178 $ 2,072 $ 1,853

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2024
Related Party Transactions [Abstract]
Schedule of Future Minimum Lease Commitments	Future minimum lease commitments to Oxbow Realty as of March 31, 2024 were as follows (such amounts are eliminated from the Company’s interim condensed consolidated financial statements due to the consolidation of Oxbow Realty, see Note 12 – Variable Interest Entity ): Remainder of 2024 $ 3,794 2025 5,149 2026 5,252 2027 5,357 2028 5,464 Thereafter 72,408 Total lease payments 97,424 Less: imputed interest (69,508) Total $ 27,916

Variable Interest Entity (Table

Variable Interest Entity (Tables)	3 Months Ended
	Mar. 31, 2024
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 March 31, 2024 and December 31, 2023. The assets and liabilities are presented prior to the elimination of intercompany balances. March 31, 2024 December 31, 2023 Cash and cash equivalents $ 202 $ 9 Accounts receivable 10,567 8,807 Finance receivable 40,821 40,707 Other assets 744 744 Total assets $ 52,334 $ 50,267 Accounts payable $ 7,290 $ 6,053 Accrued expenses 302 248 Contract liabilities 1,232 1,283 Debt 35,452 35,722 Total liabilities $ 44,276 $ 43,306
Schedule of VIE Condensed Income Statements	The following table shows the revenue and expenses of Oxbow Realty for the three-month periods ended March 31, 2024 and April 2, 2023. These results of Oxbow Realty are presented prior to the elimination of intercompany transactions. Three-Month Period Ended March 31, 2024 April 2, 2023 Revenue $ 1,419 $ 1,318 General and administrative expenses 16 293 Interest expense 306 318 Total expenses 322 611 Net income $ 1,097 $ 707

Basis of Presentation and Pri_3

Basis of Presentation and Principles of Consolidation - Narrative (Details) $ in Thousands	1 Months Ended	3 Months Ended
	Aug. 31, 2022 USD ($)	Mar. 31, 2024 USD ($) segment shares	Apr. 02, 2023 USD ($) shares	Dec. 31, 2023 USD ($)
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Net income		$ (5,729)	$ (4,273)
Cash and cash equivalents		$ 20,002		$ 18,382
Number of reportable 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		996,726	2,949,000
Provide Funding | Affiliated Entity | Oxbow Industries LLC
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Funding agreement with related party (up to)	$ 12,500	$ 12,500

Basis of Presentation and Pri_4

Basis of Presentation and Principles of Consolidation - Schedule of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Numerator: net loss attributable to SkyWater Technology, Inc.	$ (5,729)	$ (4,273)
Denominator: weighted-average common shares outstanding, basic (in shares)	47,098,519	43,817,417
Denominator: weighted-average common shares outstanding, diluted (in shares)	47,098,519	43,817,417
Net loss per common share, basic (in USD per share)	$ (0.12)	$ (0.10)
Net loss per common share, diluted (in USD per share)	$ (0.12)	$ (0.10)

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Apr. 02, 2023	Jan. 02, 2023	Jan. 01, 2023
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Stockholders' equity, including portion attributable to noncontrolling interest	$ 59,401	$ 60,701	$ 57,472		$ 53,977
Accumulated Deficit
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Stockholders' equity, including portion attributable to noncontrolling interest	$ (130,932)	$ (125,203)	$ (98,720)		(94,072)
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 | 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
	Mar. 31, 2024	Apr. 02, 2023	Dec. 31, 2023	Jan. 01, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Amortization of deferred contract costs	$ 172	$ 746
Contract assets	24,922		$ 29,666
Contract asset, allowance for credit loss	62	259	$ 99	$ 0
Contract with customer, loss reserve	$ 8,004	$ 0
Major Customers | Revenue Benchmark | Customer Concentration Risk
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Customer percentage of revenue	58%	54%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue obligation amount	$ 144,892
Revenue recognition period	6 years 6 months

Revenue - Schedule of Disaggreg

Revenue - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Disaggregation of Revenue [Line Items]
Lease Revenue Per Topic 842	$ 1,167	$ 1,167
Revenue	79,636	66,094
Point-in-Time
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	9,604	4,486
Over Time
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	68,865	60,441
Advanced Technology Services (ATS) Development
Disaggregation of Revenue [Line Items]
Lease Revenue Per Topic 842	1,167	1,167
Revenue	61,185	47,770
Advanced Technology Services (ATS) Development | Point-in-Time
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	0	0
Advanced Technology Services (ATS) Development | Over Time
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	60,018	46,603
Time and materials contracts
Disaggregation of Revenue [Line Items]
Lease Revenue Per Topic 842	0	0
Revenue	42,496	27,295
Time and materials contracts | Point-in-Time
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	0	0
Time and materials contracts | Over Time
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	42,496	27,295
Fixed price contracts
Disaggregation of Revenue [Line Items]
Lease Revenue Per Topic 842	0	0
Revenue	17,522	19,308
Fixed price contracts | Point-in-Time
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	0	0
Fixed price contracts | Over Time
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	17,522	19,308
Other
Disaggregation of Revenue [Line Items]
Lease Revenue Per Topic 842	1,167	1,167
Revenue	1,167	1,167
Other | Point-in-Time
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	0	0
Other | Over Time
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	0	0
Tool
Disaggregation of Revenue [Line Items]
Lease Revenue Per Topic 842	0	0
Revenue	8,459	536
Tool | Point-in-Time
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	8,459	536
Tool | Over Time
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	0	0
Wafer Services
Disaggregation of Revenue [Line Items]
Lease Revenue Per Topic 842	0	0
Revenue	9,992	17,788
Wafer Services | Point-in-Time
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	1,145	3,950
Wafer Services | Over Time
Disaggregation of Revenue [Line Items]
Topic 606 Revenue	$ 8,847	$ 13,838

Revenue - Schedule of Revenue b

Revenue - Schedule of Revenue by Country (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Disaggregation of Revenue [Line Items]
Revenues	$ 79,636	$ 66,094
United States
Disaggregation of Revenue [Line Items]
Revenues	76,224	58,202
Canada
Disaggregation of Revenue [Line Items]
Revenues	2,233	2,388
Hong Kong
Disaggregation of Revenue [Line Items]
Revenues	47	3,019
United Kingdom
Disaggregation of Revenue [Line Items]
Revenues	285	104
All others
Disaggregation of Revenue [Line Items]
Revenues	$ 847	$ 2,381

Revenue - Schedule of Contract

Revenue - Schedule of Contract Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Apr. 02, 2023	Jan. 01, 2023
Disaggregation of Revenue [Line Items]
Current contract deferred revenue	$ 51,441	$ 44,883
Long-term contract deferred revenue	57,828	63,810
Total contract deferred revenue	109,269	108,693
Current lease deferred revenue	4,668	4,668
Long-term lease deferred revenue	777	1,944
Total lease deferred revenue	5,445	6,612
Total current contract liabilities	56,109	49,551
Total long-term contract liabilities	58,605	65,754
Total contract liabilities	114,714	115,305	$ 90,908	$ 96,153
Customer Contract Including Funding Assistance For Facility Expansion
Disaggregation of Revenue [Line Items]
Current contract deferred revenue	11,123	11,123
Total contract deferred revenue	$ 56,542	$ 59,323

Revenue - Schedule of Performan

Revenue - Schedule of Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 $ in Thousands	Mar. 31, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue obligation amount	$ 144,892
Revenue recognition period	6 years 6 months

Revenue - Changes in Contract R

Revenue - Changes in Contract Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Contract Liabilities [Roll Forward]
Balance at beginning of period	$ 115,305	$ 96,153
Revenue recognized included in the balance at the beginning of the period	(12,686)	(6,020)
Increase due to payments received, excluding amounts recognized as revenue	12,095	775
Balance at end of period	$ 114,714	$ 90,908

Balance Sheet Information - Sum

Balance Sheet Information - Summary of Credit Losses, Accounts Receivable (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Allowance for credit losses - Accounts receivable
Balance at beginning of period	$ 180	$ 1,638
Provision for credit losses	(84)	2,102
Accounts written-off	0	0
Less recoveries of accounts charged-off	0	0
Net account charge-offs (recoveries)	0	0
Balance at end of period	96	3,908
Cumulative Effect, Period of Adoption, Adjustment
Allowance for credit losses - Accounts receivable
Balance at beginning of period	$ 0	$ 168

Balance Sheet Information - Sch

Balance Sheet Information - Schedule of Contract Assets, Allowance for Credit Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Contract with Customer, Asset, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 99	$ 0
Provision for credit losses	(37)	52
Accounts written-off	0	0
Less recoveries of accounts charged-off	0	0
Net account charge-offs (recoveries)	0	0
Balance at end of period	62	259
Cumulative Effect, Period of Adoption, Adjustment
Contract with Customer, Asset, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 0	$ 207

Balance Sheet Information - S_2

Balance Sheet Information - Summary of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Balance Sheet Information [Abstract]
Raw materials	$ 5,113	$ 4,775
Work-in-process	12	19
Supplies and spare parts	10,433	10,547
Total inventories, current	15,558	15,341
Inventory, non-current	3,586	3,293
Total inventory	$ 19,144	$ 18,634

Balance Sheet Information - S_3

Balance Sheet Information - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Balance Sheet Information [Abstract]
Prepaid expenses	$ 4,534	$ 2,663
Equipment purchased for customers	18,437	12,737
Deferred contract costs	1,557	1,453
Prepaid expenses and other current assets	$ 24,528	$ 16,853

Balance Sheet Information - S_4

Balance Sheet Information - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total property and equipment, net	$ 157,281	$ 159,367
Finance lease, right-of-use asset, before accumulated amortization	13,332	13,332
Finance lease, right-of-use asset, accumulated amortization	(4,137)	(3,976)
Property and equipment placed in service
Property, Plant and Equipment [Line Items]
Total property and equipment, at cost	287,004	288,155
Less: accumulated depreciation	(141,095)	(137,767)
Total property and equipment, net	145,909	150,388
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	88,979	88,782
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, at cost	192,629	193,977
Property and equipment not yet in service
Property, Plant and Equipment [Line Items]
Total property and equipment, at cost	$ 11,372	$ 8,979

Balance Sheet Information - Nar

Balance Sheet Information - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 4,690	$ 6,856
Software and licensed technology
Property, Plant and Equipment [Line Items]
Acquired third-party intangible assets	$ 399
Weighted average estimated life of acquired intangibles (in years)	8 years
Intangible assets placed in service, net	$ 375	$ 496

Balance Sheet Information - S_5

Balance Sheet Information - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, net	$ 6,320	$ 5,672
Software and licensed technology
Finite-Lived Intangible Assets [Line Items]
Software and licensed technology	12,546	12,148
Less: accumulated amortization	(6,851)	(6,476)
Total intangible assets, net	5,695	5,672
Intangible assets not yet in service
Finite-Lived Intangible Assets [Line Items]
Software and licensed technology	$ 625	$ 0

Balance Sheet Information - S_6

Balance Sheet Information - Summary of Remaining Estimated Aggregate Annual Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, net	$ 6,320	$ 5,672
Software and licensed technology
Finite-Lived Intangible Assets [Line Items]
Remainder of 2024	903
2025	1,059
2026	777
2027	396
2028	396
Thereafter	2,164
Total intangible assets, net	$ 5,695	$ 5,672

Balance Sheet Information - S_7

Balance Sheet Information - Summary of Other Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Balance Sheet Information [Abstract]
Inventory, non-current	$ 3,586	$ 3,293
Operating lease right-of-use assets	$ 85	$ 96
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Total other assets	Total other assets
Other assets	$ 2,022	$ 1,953
Total other assets	$ 5,693	$ 5,342

Balance Sheet Information - S_8

Balance Sheet Information - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Mar. 31, 2024
Balance Sheet Information [Abstract]
Accrued compensation	$ 10,947	$ 7,214
Accrued commissions	488	381
Accrued royalties	3,122	3,672
Current portion of operating lease liabilities	$ 48	$ 49
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Total accrued expenses	Total accrued expenses
Current portion of finance lease liabilities	$ 645	$ 637
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Total accrued expenses	Total accrued expenses
Accrued inventory	$ 1,261	$ 223
Accrued consulting fees	9,345	0
Accrued restructuring costs	1,319	0
Other accrued expenses	21,116	18,336
Total accrued expenses	48,291	$ 30,512
Restructuring costs	1,921
Payments for restructuring	$ 602

Balance Sheet Information - S_9

Balance Sheet Information - Schedule of Other Long-term Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Balance Sheet Information [Abstract]
Finance lease obligations	$ 9,165	$ 9,275
Operating lease liability	39	52
Other long-term liabilities	$ 9,204	$ 9,327
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other long-term liabilities	Other long-term liabilities

Debt - Summary of Debt Outstand

Debt - Summary of Debt Outstanding (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Short-term financing	$ 32,612	$ 22,765
Unamortized debt issuance costs	(2,495)	(2,851)
Total	41,702
Unamortized debt issuance costs	(2,406)	(2,490)
Total	39,296	40,074
Less: Current portion of long-term debt	(3,631)	(3,976)
Total long-term debt, excluding current portion	35,665	36,098
Financing loan
Debt Instrument [Line Items]
Total	6,208	6,799
VIE Financing | Financing loan
Debt Instrument [Line Items]
Total	35,494	35,765
Financing loan
Debt Instrument [Line Items]
Short-term financing	4,742	3,822
Revolver | Line of Credit
Debt Instrument [Line Items]
Short-term financing	$ 30,365	$ 21,794

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Short-term financing		$ 32,612	$ 22,765
VIE Financing
Debt Instrument [Line Items]
Accumulated excess payment receivable		9,559
Term Loan | VIE Financing
Debt Instrument [Line Items]
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
Revolver
Debt Instrument [Line Items]
Remaining balance of revolver		62,708
Line of Credit | Revolver
Debt Instrument [Line Items]
Short-term financing		$ 30,365	21,794
Debt instrument, interest rate (as a percent)		10.70%
Term Loan
Debt Instrument [Line Items]
Short-term financing		$ 4,742	$ 3,822

Debt - Summary of Future Princi

Debt - Summary of Future Principal Payments (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Debt Disclosure [Abstract]
Remainder of 2024	$ 2,694
2025	3,879
2026	2,771
2027	1,219
2028	1,259
Thereafter	29,880
Total	$ 41,702

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Federal statutory income tax rate (as a percent)	21%	21%
Effective income tax rate (as a percent)	(0.90%)	0%
Valuation allowance	$ 29,012,000		$ 26,111,000
Liability for uncertain tax positions	0
Penalties and interest expense	$ 0	$ 0

Shareholders' Equity (Details)

Shareholders' Equity (Details) - Jefferies LLC - ATM Program - USD ($)		3 Months Ended	19 Months Ended
	Sep. 02, 2022	Apr. 02, 2023	Mar. 31, 2024
Class of Stock [Line Items]
Sale of stock, ATM authorized amount	$ 100,000,000
Shares issued in offering (in shares)		245,289	2,516,586
Offering price per share (in USD per share)			$ 9.96
Proceeds from offering			$ 25,070,000
Stock offering costs			1,212,000
Remaining authorized shares, value			$ 74,930,000

Equity-Based Compensation (Deta

Equity-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Equity-based compensation expense	$ 2,072	$ 1,853
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Equity-based compensation expense	455	513
Research and development expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Equity-based compensation expense	107	162
Selling, general and administrative expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Equity-based compensation expense	$ 1,510	$ 1,178

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands		3 Months Ended
	Jan. 25, 2021	Mar. 31, 2024	Dec. 31, 2023	Feb. 28, 2023
Commitments And Contingencies [Line Items]
Contractual commitments outstanding		$ 8,370	$ 7,910
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
Center For NeoVation | Term To Bring The Plant To Full Production Capacity
Commitments And Contingencies [Line Items]
Lease term	5 years
Center For NeoVation | Term To Operate The Plant At Full Capacity
Commitments And Contingencies [Line Items]
Lease term	15 years

Related Party Transactions - Na

Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended
	Mar. 31, 2024	Aug. 31, 2022	Mar. 31, 2024	Jan. 03, 2021	Dec. 31, 2023
Related Party Transaction [Line Items]
Accounts payable	$ 25,919		$ 25,919		$ 19,614
Oxbow Industries LLC | Provide Funding | Affiliated Entity
Related Party Transaction [Line Items]
Funding agreement with related party (up to)		$ 12,500	12,500
Oxbow Realty | Affiliated Entity
Related Party Transaction [Line Items]
Accounts payable	1,204		$ 1,204
Monthly rental payment				$ 394
Sale leaseback, lease term				20 years
Annual percentage increase in monthly lease payments				2%
Lease payment	$ 418

Related Party Transactions - Su

Related Party Transactions - Summary of Minimum Lease Payments Sale Lease back Transactions (Details) - Affiliated Entity - Oxbow Realty $ in Thousands	Mar. 31, 2024 USD ($)
Related Party Transaction [Line Items]
Remainder of 2024	$ 3,794
2025	5,149
2026	5,252
2027	5,357
2028	5,464
Thereafter	72,408
Total lease payments	97,424
Less: imputed interest	(69,508)
Total	$ 27,916

Variable Interest Entity - Summ

Variable Interest Entity - Summary of Condensed Balance Sheet Statements (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Apr. 02, 2023	Jan. 01, 2023
Condensed Balance Sheet Statements, Captions [Line Items]
Cash and cash equivalents	$ 20,002	$ 18,382
Total assets	312,281	316,756
Contract liabilities	114,714	115,305	$ 90,908	$ 96,153
Total liabilities	252,880	256,055
VIE Financing
Condensed Balance Sheet Statements, Captions [Line Items]
Cash and cash equivalents	202	9
Accounts receivable	10,567	8,807
Finance receivable	40,821	40,707
Other assets	744	744
Total assets	52,334	50,267
Accounts payable	7,290	6,053
Accrued expenses	302	248
Contract liabilities	1,232	1,283
Debt	35,452	35,722
Total liabilities	$ 44,276	$ 43,306

Variable Interest Entity - Su_2

Variable Interest Entity - Summary of Condensed Income Statements (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 02, 2023
Condensed Income Statements, Captions [Line Items]
Interest expense	$ 2,390	$ 2,471
Net income	(5,729)	(4,273)
VIE Financing
Condensed Income Statements, Captions [Line Items]
Revenue	1,419	1,318
General and administrative expenses	16	293
Interest expense	306	318
Total expenses	322	611
Net income	$ 1,097	$ 707

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