0001558370-21-016885 | 10-Q | XBRL Viewer | Lulus Fashion Lounge Holdings INC

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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Oct. 03, 2021	Dec. 10, 2021
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Oct. 03, 2021
Entity File Number	001-41059
Entity Registrant Name	Lulu’s Fashion Lounge Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-8442468
Entity Address State Or Province	CA
Entity Address, Address Line One	195 Humboldt Avenue
Entity Address, City or Town	Chico
Entity Address, Postal Zip Code	95928
City Area Code	530
Local Phone Number	343-3545
Title of 12(b) Security	Common stock, $0.001 par value per share
Trading Symbol	LVLU
Security Exchange Name	NASDAQ
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		38,421,124
Entity Central Index Key	0001780201
Current Fiscal Year End Date	--01-02
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 03, 2021	Jan. 03, 2021
Current assets:
Cash and cash equivalents	$ 40,927	$ 15,554
Accounts receivable	6,389	3,832
Inventory, net	23,400	16,895
Asset for recovery	6,230	1,104
Income tax refund receivable		2,739
Prepaids and other current assets	4,644	2,675
Total current assets	81,590	42,799
Restricted cash	505	505
Property and equipment, net	2,754	3,090
Goodwill	35,430	35,430
Tradename	18,509	18,509
Intangible assets, net	2,023	2,290
Other noncurrent assets	4,441	2,453
Total assets	145,252	105,076
Current liabilities:
Accounts payable	6,732	7,161
Income taxes payable	1,004
Accrued expenses and other current liabilities	26,864	7,533
Returns reserve	18,344	2,895
Stored-value card liability	6,494	4,973
Revolving line of credit		8,580
Long-term debt, current portion	103,393	10,125
Total current liabilities	162,831	41,267
Long-term debt, net of current portion		96,856
Other noncurrent liabilities	2,357	2,504
Total liabilities	165,188	140,627
Commitments and Contingencies (Note 6)
Stockholder's deficit:
Common stock: $0.001 par value, 24,000,000 and 21,196,740 shares authorized as of October 3, 2021 and January 3, 2021, respectively; 17,462,283 shares issued and outstanding as of October 3, 2021 and January 3, 2021	18	18
Additional paid-in capital	12,510	10,622
Accumulated deficit	(168,822)	(179,641)
Total stockholder's deficit	(156,294)	(169,001)
Total liabilities, redeemable preferred stock, convertible preferred stock and stockholder's deficit	145,252	105,076
Redeemable Preferred Stock
Current liabilities:
Temporary equity, carrying amount	19,320	16,412
Convertible Preferred Stock
Current liabilities:
Temporary equity, carrying amount	$ 117,038	$ 117,038

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Oct. 03, 2021	Jan. 03, 2021
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	24,000,000	21,196,740
Common stock, shares issued	17,462,283	17,462,283
Common stock, shares outstanding	17,462,283	17,462,283
Redeemable Preferred Stock
Temporary equity, par value	$ 0.001	$ 0.001
Temporary equity, shares authorized	10,000,001	7,500,001
Temporary equity, shares issued	8,950,001	7,500,001
Temporary equity, shares outstanding	8,950,001	7,500,001
Aggregate liquidation preference	$ 17,900	$ 15,000
Convertible Preferred Stock
Temporary equity, par value	$ 0.001	$ 0.001
Temporary equity, shares authorized	3,129,635	3,129,635
Temporary equity, shares issued	3,129,634	3,129,634
Temporary equity, shares outstanding	3,129,634	3,129,634
Aggregate liquidation preference	$ 240,000	$ 240,000

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2021	Sep. 27, 2020	Oct. 03, 2021	Sep. 27, 2020
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
Net revenue	$ 106,320	$ 54,533	$ 278,861	$ 194,129
Cost of revenue	55,553	30,128	145,561	107,208
Gross profit	50,767	24,405	133,300	86,921
Selling and marketing expenses	20,509	9,481	49,008	35,894
General and administrative expenses	21,196	10,854	57,436	54,179
Income (loss) from operations	9,062	4,070	26,856	(3,152)
Other income (expense), net:
Interest Expense	(3,612)	(3,959)	(11,036)	(11,899)
Other Income, net	16	20	74	86
Total other expense, net	(3,596)	(3,939)	(10,962)	(11,813)
Income (loss) before (provision) benefit for income taxes	5,466	131	15,894	(14,965)
Income tax (provision) benefit	(1,616)	246	(5,075)	(187)
Net income (loss)	3,850	377	10,819	(15,152)
Comprehensive income (loss)	3,850	377	10,819	(15,152)
Deemed dividend to a preferred stockholder				(504)
Allocation of undistributed earnings to participating securities	(1,574)	(143)	(4,322)
Net income (loss) attributable to common stockholder	$ 2,276	$ 234	$ 6,497	$ (15,656)
Net income (loss) per share attributable to common stockholder - Basic	$ 0.13	$ 0.01	$ 0.37	$ (0.90)
Net income (loss) per share attributable to common stockholder - Diluted	$ 0.13	$ 0.01	$ 0.37	$ (0.90)
Shares used to compute net income (loss) per share attributable to common stockholder - Basic	17,462,283	17,462,283	17,462,283	17,462,283
Shares used to compute net income (loss) per share attributable to common stockholder - Diluted	17,462,283	17,462,283	17,462,283	17,462,283

Condensed Consolidated Statements of Redeemable Preferred Stock, Convertible Preferred Stock and Stockholder's Deficit - USD ($) $ in Thousands	Common Stock.	Additional Paid-In Capital	Accumulated Deficit	Redeemable Preferred Stock	Convertible Preferred Stock	Total
Balance at Dec. 29, 2019					$ 117,038
Balance (in shares) at Dec. 29, 2019					3,129,634
Balance at Mar. 29, 2020					$ 117,038
Balance (in shares) at Mar. 29, 2020					3,129,634
Balance at Dec. 29, 2019	$ 18	$ 2,040	$ (160,337)			$ (158,279)
Balance (in shares) at Dec. 29, 2019	17,462,283
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) and comprehensive income (loss)			(1,212)			(1,212)
Balance at Mar. 29, 2020	$ 18	2,040	(161,549)			(159,491)
Balance (in shares) at Mar. 29, 2020	17,462,283
Balance at Dec. 29, 2019					$ 117,038
Balance (in shares) at Dec. 29, 2019					3,129,634
Balance at Sep. 27, 2020				$ 16,412	$ 117,038
Balance (in shares) at Sep. 27, 2020				7,500,001	3,129,634
Balance at Dec. 29, 2019	$ 18	2,040	(160,337)			(158,279)
Balance (in shares) at Dec. 29, 2019	17,462,283
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) and comprehensive income (loss)						(15,152)
Balance at Sep. 27, 2020	$ 18	10,171	(175,489)			(165,300)
Balance (in shares) at Sep. 27, 2020	17,462,283
Balance at Mar. 29, 2020					$ 117,038
Balance (in shares) at Mar. 29, 2020					3,129,634
Increase (Decrease) in Temporary Equity [Roll Forward]
Series B\B-1 redeemable preferred stock issuance				$ 16,412
Series B\B-1 redeemable preferred stock issuance (in shares)				7,500,001
Balance at Jun. 28, 2020				$ 16,412	$ 117,038
Balance (in shares) at Jun. 28, 2020				7,500,001	3,129,634
Balance at Mar. 29, 2020	$ 18	2,040	(161,549)			(159,491)
Balance (in shares) at Mar. 29, 2020	17,462,283
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issuance		(504)				(504)
Equity-based compensation		8,428				8,428
Net income (loss) and comprehensive income (loss)			(14,317)			(14,317)
Balance at Jun. 28, 2020	$ 18	9,964	(175,866)			(165,884)
Balance (in shares) at Jun. 28, 2020	17,462,283
Balance at Sep. 27, 2020				$ 16,412	$ 117,038
Balance (in shares) at Sep. 27, 2020				7,500,001	3,129,634
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation		207				207
Net income (loss) and comprehensive income (loss)			377			377
Balance at Sep. 27, 2020	$ 18	10,171	(175,489)			(165,300)
Balance (in shares) at Sep. 27, 2020	17,462,283
Balance at Jan. 03, 2021				$ 16,412	$ 117,038
Balance (in shares) at Jan. 03, 2021				7,500,001	3,129,634
Increase (Decrease) in Temporary Equity [Roll Forward]
Series B\B-1 redeemable preferred stock issuance				$ 2,908
Series B\B-1 redeemable preferred stock issuance (in shares)				1,450,000
Balance at Apr. 04, 2021				$ 19,320	$ 117,038
Balance (in shares) at Apr. 04, 2021				8,950,001	3,129,634
Balance at Jan. 03, 2021	$ 18	10,622	(179,641)			(169,001)
Balance (in shares) at Jan. 03, 2021	17,462,283
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issuance		432				432
Net income (loss) and comprehensive income (loss)			(1,375)			(1,375)
Balance at Apr. 04, 2021	$ 18	11,054	(181,016)			(169,944)
Balance (in shares) at Apr. 04, 2021	17,462,283
Balance at Jan. 03, 2021				$ 16,412	$ 117,038
Balance (in shares) at Jan. 03, 2021				7,500,001	3,129,634
Balance at Oct. 03, 2021				$ 19,320	$ 117,038
Balance (in shares) at Oct. 03, 2021				8,950,001	3,129,634
Balance at Jan. 03, 2021	$ 18	10,622	(179,641)			(169,001)
Balance (in shares) at Jan. 03, 2021	17,462,283
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) and comprehensive income (loss)						10,819
Balance at Oct. 03, 2021	$ 18	12,510	(168,822)			(156,294)
Balance (in shares) at Oct. 03, 2021	17,462,283
Balance at Apr. 04, 2021				$ 19,320	$ 117,038
Balance (in shares) at Apr. 04, 2021				8,950,001	3,129,634
Balance at Jul. 04, 2021				$ 19,320	$ 117,038
Balance (in shares) at Jul. 04, 2021				8,950,001	3,129,634
Balance at Apr. 04, 2021	$ 18	11,054	(181,016)			(169,944)
Balance (in shares) at Apr. 04, 2021	17,462,283
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation		681				681
Net income (loss) and comprehensive income (loss)			8,344			8,344
Balance at Jul. 04, 2021	$ 18	11,735	(172,672)			(160,919)
Balance (in shares) at Jul. 04, 2021	17,462,283
Balance at Oct. 03, 2021				$ 19,320	$ 117,038
Balance (in shares) at Oct. 03, 2021				8,950,001	3,129,634
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation		775				775
Net income (loss) and comprehensive income (loss)			3,850			3,850
Balance at Oct. 03, 2021	$ 18	$ 12,510	$ (168,822)			$ (156,294)
Balance (in shares) at Oct. 03, 2021	17,462,283

Condensed Consolidated Statements of Redeemable Preferred Stock, Convertible Preferred Stock and Stockholder's Deficit (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2021	Jun. 28, 2020
Series B Redeemable Preferred Stock
Issuance costs		$ 163
Series B-1 Redeemable Preferred Stock
Issuance costs	$ 23

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2021	Sep. 27, 2020
Cash Flows from Operating Activities
Net income (loss)	$ 10,819	$ (15,152)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	2,116	2,449
Amortization of debt discount and debt issuance costs	2,041	1,809
Interest expense capitalized to principal of long-term debt and revolving line of credit	2,074	942
Equity-based compensation expense	1,888	8,635
Equity-based compensation expense related to redeemable preferred stock issuance	1,481	8,571
Equity-based compensation related to special compensation liability awards	2,153
Write-off of deferred offering costs		1,950
Deferred income taxes	(2,144)	1,053
Gain on disposal of assets		(2)
Changes in operating assets and liabilities:
Accounts receivable	(2,557)	782
Inventories	(6,505)	12,590
Assets for recovery	(5,126)	995
Income tax (receivable) payable	3,852	164
Prepaid and other current assets	(315)	394
Accounts payable	(1,989)	(2,447)
Accrued expenses and other current liabilities	34,836	(607)
Other noncurrent liabilities	(836)	(942)
Net cash provided by operating activities	41,788	21,184
Cash Flows from Investing Activities
Capitalized software development costs	(919)	(962)
Purchases of property and equipment	(668)	(645)
Proceeds from sale of property and equipment		2
Net cash used in investing activities	(1,587)	(1,605)
Cash Flows from Financing Activities
Proceeds from borrowings on revolving line of credit		5,300
Repayments on revolving line of credit	(8,580)
Repayment of long-term debt	(7,595)
Payment of debt issuance costs	(61)	(132)
Proceeds from the issuance of Series B Preferred Stock, net	1,427	7,337
Advance from the LP		37
Repayment of Advance from the LP		(2,040)
Other	(19)	(30)
Net cash provided by (used in) financing activities	(14,828)	10,472
Net increase in cash, cash equivalents and restricted cash	25,373	30,051
Cash, cash equivalents and restricted cash at beginning of period	16,059	6,361
Cash, cash equivalents and restricted cash at end of period	41,432	36,412
Supplemental Disclosure
Cash paid for income taxes, net of income tax refunds	3,631	(6)
Cash paid for interest	6,996	7,787
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Purchases of property and equipment included in accounts payable and accrued expenses	20
Debt issuance costs included in accrued expenses	917	1,222
Deemed dividend to a preferred stockholder		504
Paid-in-kind interest added to principal balance of long-term debt and revolving line of credit	2,074	$ 942
Deferred offering costs in accounts payable	$ 1,654

Description of Business, Organization and Liquidity

9 Months Ended

Oct. 03, 2021

Description of Business, Organization and Liquidity

Description of Business, Organization and Liquidity

1.Description of Business, Organization and Liquidity

Organization and Business

Pursuant to a reorganization, Lulu’s Fashion Lounge Holdings, Inc., a Delaware Corporation (“Lulus”, or the “Company”), was formed on August 25, 2017 as a holding company and its primary asset is an indirect membership interest in Lulu’s Fashion Lounge, LLC (“LFL”). Prior to the sale of the Company’s Series A convertible preferred stock, the Company was wholly-owned by Lulu’s Holdings, L.P. (the “LP”). Prior to the Company’s initial public offering, the Company is majority-owned by the LP.

LFL was founded in 1996, starting as a vintage boutique in Chico, CA that began selling online in 2005 and transitioned to a purely online business in 2008. The LP was formed in 2014 as a holding company and purchased 100% of LFL’s outstanding common stock in 2014. The Company, through LFL, is an online retailer of women’s clothing, shoes and accessories based in Chico, CA.

Initial Public Offering

On November 10, 2021, the Company’s registration statement on Form S-1 relating to its initial public offering (“IPO”) was declared effective by the Securities and Exchange Commission (“SEC”) and the shares of its common stock began trading on the Nasdaq Global Market on November 11, 2021. The IPO closed on November 15, 2021, pursuant to which the Company issued and sold 5,750,000 shares of its common stock at a public offering price of $16.00 per share. On November 15, 2021, the Company received net proceeds of approximately $85.6 million from the IPO, after deducting underwriting discounts and commissions of $6.4 million. Immediately prior to the completion of the IPO, all shares of the Series A Preferred Stock then outstanding were converted into 15,000,000 shares of common stock. Additionally, 215,702 shares of common stock were issued to the LP immediately prior to the completion of the IPO. All shares of the Series B Preferred Stock and the Series B-1 Preferred Stock were redeemed and extinguished for a total payment of approximately $17.9 million on November 15, 2021.

Liquidity and Going Concern

The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business within one year after the date the condensed consolidated financial statements are available to be issued. Management evaluates whether there are conditions or events, considered in aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date the condensed consolidated financial statements are available to be issued.

As described above, the Company completed its IPO on November 15, 2021 and received net proceeds of $85.6 million. In addition, as described in Note 12, Subsequent Events, in connection with the completion of the IPO, the Company entered into a new $50.0 million three-year revolving credit facility dated November 15, 2021 (the “New Revolving Facility”), under which it borrowed $25.0 million on November 15, 2021. Also, as described in Note 12, Subsequent Events, the proceeds from the IPO and the New Revolving Facility were used to repay the $105.8 million of outstanding principal and $1.4 million of accrued interest related to the Company’s existing term loan.

Based on management’s evaluation, the Company expects that, as of the date these condensed consolidated financial statements are available to be issued, its present financial resources, together with the net proceeds received from the IPO and the New Revolving Facility, will be sufficient to meet its obligations as they come due and to fund its operations for at least 12 months after the date the condensed consolidated financial statements are available to be issued. Accordingly,

the conditions that previously raised substantial doubt about the Company’s ability to continue as a going concern as of the date of issuance of the Company’s July 4, 2021 condensed consolidated financial statements have been alleviated.

Impact of COVID-19

On March 11, 2020, the World Health Organization declared the novel strain of coronavirus that causes the disease COVID-19 a global pandemic. The COVID-19 pandemic has had a significant impact on the broader economy and consumer behavior. As a result of these developments, the Company experienced an unfavorable impact on its revenue, results of operations and cash flows in 2020 and on its operations to date in 2021.

The Company may face longer term impacts from COVID-19 due to, among other factors, evolving federal, state and local restrictions and shelter-in-place orders, changes in consumer behavior and health concerns which may impact customer demand, as well as labor shortages, supply chain disruptions and higher shipping costs. The current events and economic conditions are significant in relation to the Company’s ability to fund its business operations. In response to the impact of COVID-19, the Company implemented a number of measures to minimize cash outlays, including reducing discretionary marketing and other expenses. Additionally, in June 2020, the Company modified its existing credit agreement to amend covenants and adjust certain payment terms. The Company also borrowed $5.3 million under its existing revolving line of credit facility (see Note 5, Debt). The Company repaid the entire outstanding balance under the revolving line of credit in March 2021 (see Note 5, Debt). The Company sold shares of Series B Preferred Stock in June 2020 for net cash proceeds of $7.3 million and sold shares of Series B-1 Preferred Stock in March 2021 for net cash proceeds of $1.4 million (see Note 7, Preferred Stock). In addition, as discussed above, the Company completed its IPO, borrowed $25.0 million against its New Revolving Facility, and repaid its term loan balance.

Significant Accounting Policies

9 Months Ended

Oct. 03, 2021

Significant Accounting Policies

Significant Accounting Policies

2.Significant Accounting Policies

Basis of Presentation and Fiscal Year

The Company’s fiscal year consists of a 52-week or 53-week period ending on the Sunday nearest December 31.

The condensed consolidated financial statements and accompanying notes include the accounts of the Company and its wholly owned subsidiaries, after elimination of all intercompany balances and transactions. The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the Unites States of America (“GAAP”) and the requirements of the SEC for interim reporting. As permitted under these rules, certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. The interim condensed consolidated financial statements are unaudited. 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, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position as of October 3, 2021 and its results of operations for the three- and nine-month periods ended October 3, 2021 and September 27, 2020 and its cash flows for the nine-month periods ended October 3, 2021 and September 27, 2020. The results of operations for the nine months ended October 3, 2021 are not necessarily indicative of the results to be expected for the fiscal year ending January 2, 2022 or for any other future annual or interim period.

The condensed consolidated balance sheet as of January 3, 2021 was derived from the Company’s audited consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements included in the prospectus dated November 10, 2021 that forms a part of the Company's Registration Statement on Form S-1 (File No. 333-260194), as filed with the SEC pursuant to Rule 424(b)(4) promulgated under the Securities Act of 1933, as amended (the “Registration Statement”).

Significant Accounting Policies

The significant accounting policies used in preparation of these condensed consolidated financial statements are consistent with those discussed in Note 2 to the audited consolidated financial statements included in the Registration Statement, except as noted below.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The significant estimates and assumptions made by management relate to sales return reserves and related assets for recovery, valuation of redeemable preferred stock, valuation of the LP’s Class P unit equity-based awards, valuation of stock options, and valuation of common stock. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods. As future events and their effects cannot be determined with precision, actual results could materially differ from those estimates and assumptions.

Segment Reporting

The Company manages its business on the basis of one operating and reportable segment, retail. The Company’s chief operating decision maker is its chief executive officer (“CEO”). All long-lived assets are located in the United States and substantially all revenue is attributable to customers based in the United States. International sales are not significant.

Concentration of Credit Risks

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents. At times, such amounts may exceed federally insured limits. The Company reduces credit risk by depositing its cash with major credit-worthy financial institutions within the United States. To date, the Company has not experienced any losses on its cash deposits. As of October 3, 2021 and January 3, 2021, a single wholesale customer represented 26% and 51% respectively, of the Company’s accounts receivable balance. No customer accounted for greater than 10% of the Company’s net revenue during the three and nine months ended October 3, 2021 and September 27, 2020.

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows (in thousands):


	October 3,		January 3,
	2021		2021
Cash and cash equivalents	$	40,927	$	15,554
Restricted cash		505		505
Total cash and restricted cash	$	41,432	$	16,059

Deferred Offering Costs

Deferred offering costs consist of expenses incurred in connection with an equity offering, including legal, accounting, printing, and other IPO-related costs. Deferred offering costs are written off to operating expenses in the condensed consolidated statements of operations and comprehensive income (loss) upon the termination or significant delay of a planned equity offering. During the nine months ended September 27, 2020, approximately $2.0 million of deferred offering costs from an offering that was postponed were written off to general and administrative expenses in the Company’s condensed consolidated statements of operations and comprehensive income (loss). Deferred offering costs of $1.7 million related to the IPO were capitalized within prepaid and other current assets in the condensed consolidated balance sheets as of October 3, 2021 (none as of January 3, 2021).

Revenue Recognition

The Company generates revenue primarily from the sale of merchandise products directly to end customers. The sale of products is a distinct performance obligation, and revenue is recognized at a point in time when control of the promised product is transferred to customers, which the Company determined occurs upon shipment based on its evaluation of the related shipping terms. Revenue is recognized in an amount that reflects the transaction price consideration that the Company expects to receive in exchange for those products. The Company’s payment terms are typically at the point of sale for merchandise product sales.

The Company elected to exclude from revenue taxes assessed by governmental authorities, including value-added and other sales-related taxes, that are imposed on and concurrent with revenue-producing activities. The Company has elected to apply the practical expedient, relative to e-commerce sales, which allows an entity to account for shipping and handling as fulfillment activities, and not a separate performance obligation. Accordingly, the Company recognizes revenue for only one performance obligation, the sale of the product, at shipping point (when the customer gains control). Shipping and handling costs associated with outbound freight are accounted for as fulfillment costs and are included in cost of goods sold. The Company has elected to apply the practical expedient to expense costs as incurred for incremental costs to obtain a contract when the amortization period would have been one year or less.

Revenue from merchandise product sales is reported net of sales returns, which includes an estimate of future returns based on historical return rates, with a corresponding reduction to cost of sales. There is judgment in utilizing historical trends for estimating future returns. The Company’s refund liability for sales returns is included in the returns reserve on its condensed consolidated balance sheets and represents the expected value of the refund that will be due to the Company’s customers. The Company also has a corresponding asset for recovery that represents the expected net realizable value of the merchandise inventory to be returned.

The Company sells stored-value gift cards to customers and offers merchandise credit stored-value cards for certain returns. Such stored-value cards do not have an expiration date. The Company recognizes revenue from stored-value cards when the card is redeemed by the customer. The Company has determined that sufficient evidence exists to support an estimate for stored-value card breakage. Subject to requirements to remit balances to governmental agencies, breakage is recognized as revenue in proportion to the pattern of rights exercised by the customer, which is substantially within thirty-six months from the date of issuance. The amount of breakage recognized in revenue during the three- and nine-month periods ended October 3, 2021 and September 27, 2020 was not material.

The Company has two types of contractual liabilities: (i) cash collections from its customers prior to delivery of products purchased (“deferred revenue”), which are initially recorded within accrued expenses and recognized as revenue when the products are shipped, (ii) unredeemed gift cards and online store credits, which are initially recorded as a stored-value card liability and are recognized as revenue in the period they are redeemed.

The following table summarizes the significant changes in the contract liabilities balances during the three- and nine-month periods ended October 3, 2021 and September 27, 2020 (in thousands):


	Deferred		Stored-Value
	Revenue		Cards
Balance as of January 3, 2021	$	792	$	4,973
Revenue recognized that was included in contract liability balance at the beginning of the period		(792)		(792)
Increase due to cash received, excluding amounts recognized as revenue during the period		5,949		741
Balance as of April 4 , 2021		5,949		4,922
Revenue recognized that was included in contract liability balance at the beginning of the period		(5,949)		(542)
Increase due to cash received, excluding amounts recognized as revenue during the period		1,259		1,307
Balance as of July 4, 2021		1,259		5,687
Revenue recognized that was included in contract liability balance at the beginning of the period		(1,259)		(117)
Increase due to cash received, excluding amounts recognized as revenue during the period		247		924
Balance as of October 3, 2021	$	247	$	6,494


	Deferred		Stored-Value
	Revenue		Cards
Balance as of December 30, 2019	$	547	$	4,605
Revenue recognized that was included in contract liability balance at the beginning of the period		(547)		(1,125)
Increase due to cash received, excluding amounts recognized as revenue during the period		2,717		1,195
Balance as of March 29, 2020		2,717		4,675
Revenue recognized that was included in contract liability balance at the beginning of the period		(2,717)		(501)
Increase due to cash received, excluding amounts recognized as revenue during the period		1,232		518
Balance as of June 28, 2020		1,232		4,692
Revenue recognized that was included in contract liability balance at the beginning of the period		(1,232)		(261)
Increase due to cash received, excluding amounts recognized as revenue during the period		1,300		407
Balance as of September 27, 2020	$	1,300	$	4,838

Selling and Marketing Expenses

Advertising costs included in selling and marketing expenses were $13.9 and $7.3 million for the three months ended October 3, 2021 and September 27, 2020 respectively, and $34.0 million and $28.4 million for the nine months ended October 3, 2021 and September 27, 2020, respectively.

Equity-Based Compensation

Stock Options

The Company grants stock option awards to certain employees, officers, directors, and other nonemployee service providers. The Company accounts for equity-based compensation expense by calculating the estimated fair value of each award at the grant date or modification date by applying the Black-Scholes option pricing model. The model utilizes the estimated per share fair value of the Company’s underlying common stock at the measurement date, the expected or contractual term of the option, the expected stock price volatility, risk-free interest rates, and the expected dividend yield of the common stock. Equity-based compensation expense is recognized on a straight-line basis over the period the employee or non-employee is required to provide service in exchange for the award, which is generally the vesting period. The Company classifies equity-based compensation expense as general and administrative expense in the Company’s condensed consolidated statements of operations and comprehensive income (loss).

The Company bases its estimate of expected volatility on the historical volatility of comparable companies from a representative peer group selected based on industry, financial, and market capitalization data. The Company recognizes forfeitures as they occur.

Determining the grant date fair value of options using the Black-Scholes option pricing model requires management to make assumptions and judgments. These estimates involve inherent uncertainties and, if different assumptions had been used, stock-based compensation expense could have been materially different from the amounts recorded.

Class P units

Certain of the Company’s employees participate in an equity incentive program (consisting of Class P units) offered by the LP. The LP’s Class P units are available to be issued as incentive compensation to employees, officers, directors, and other nonemployee service providers or consultants of the Company. Through mid-2020, the Company had concluded that the LP’s Class P units were not a substantive class of equity and any associated pre-vesting distributions allocated to the LP’s Class P units have been recorded as equity-based compensation under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic No. 710, Compensation – General (“ASC 710”), once the contingent payment becomes probable of payment, which is upon vesting of the Class P units. During mid-2020, all outstanding Class P units were modified to update forfeiture terms related to employment requirements and vesting conditions were added to some of the Class P units. Due to the modifications to the employment requirements, the Company concluded that the Class P units are a substantive class of equity to be accounted for under FASB ASC Topic No. 718, Compensation – Stock Compensation (“ASC 718”) and that the associated pre-vesting distributions related to outstanding Class P units for five employees are a separate award that are accounted for under ASC 710. Equity-based compensation related to the Class P unit awards and any pre-vesting distributions are recognized as general and administrative expense in the Company’s condensed consolidated statements of operations and comprehensive income (loss).

Equity-based compensation is measured at the grant date or modification date for all equity-based awards made to employees and nonemployees based on the fair value of the awards. The Company has elected to recognize forfeitures by reducing the equity-based compensation in the same period as the forfeitures occur. The method for how fair value is determined for the awards is described in Note 9, Equity-Based Compensation. The assumptions used to determine the fair value of the Class P units represent management’s best estimates. Awards with only service conditions are recognized as expense on a straight-line basis over the requisite service period, which is generally four years.

Certain of the outstanding Class P units which were modified in 2020 now vest upon the satisfaction of both a service condition (satisfied over four years) and a performance condition. When the performance-based vesting condition becomes

probable, which is upon the completion of a qualifying distribution event, the Company will immediately record cumulative stock-based compensation expense using the accelerated attribution method for the awards that have met the service-based vesting condition. The Company has not recognized any stock-based compensation expense for the performance-based Class P units as a qualifying distribution event has not occurred.

Net Income (Loss) Per Share Attributable to Common Stockholders

The Company calculates basic and diluted net income (loss) per share attributable to common stockholders in conformity with the two-class method required for participating securities as the application of the if converted method is not more dilutive. The two-class method requires income available to common stockholders for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed.

The Company considers its redeemable preferred stock and convertible preferred stock to be participating securities. In accordance with the two-class method, net income is adjusted for earnings allocated to these participating securities and the related number of outstanding shares of the participating securities, which include contractual participation rights in undistributed earnings, have been excluded from the computation of basic and diluted net income per share attributable to common stockholders. The redeemable preferred stock and convertible preferred stock contractually entitle the holders of such shares to participate in dividends but do not contractually require the holders of such shares to participate in the Company’s losses. As such, where applicable, net losses were not allocated to these securities.

During the three- and nine-month periods ended October 3, 2021 and September 27, 2020, basic net income (loss) per share attributable to common stockholder is computed using net income (loss) attributable to common stockholder divided by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share attributable to common stockholder represents net income (loss) attributable to common stockholder divided by the weighted average number of common shares outstanding during the period, including the effects of any dilutive securities outstanding. Basic and diluted net income (loss) per common share attributable to common stockholder are the same for each period presented since the inclusion of all potential shares of common stock outstanding would have been anti-dilutive.

The following securities were excluded from the computation of diluted net loss per share attributable to common stockholder for the three- and nine-month periods presented because including them would have been anti-dilutive (on an as-converted basis):


	October 3, 2021	September 27, 2020
Series A convertible preferred stock	3,129,634	3,129,634
Stock options	322,793	—
Total	3,452,427	3,129,634

Redeemable Preferred Stock

The Company has elected to record its redeemable preferred stock at the greater of its redemption value or the issuance date fair value, net of issuance costs, as it is probable of becoming redeemable due to the passage of time. Any change to the carrying value of redeemable preferred stock recognized in each period is recorded to additional paid-in capital, or in the absence of additional paid-in capital, recorded to accumulated deficit.

The issuance date fair value of the redeemable preferred stock shares purchased by executives and entities related to current employees, board members, and service providers was higher than the consideration paid and such excess was recorded as equity-based compensation. The excess of the fair value over consideration paid for redeemable preferred

stock shares purchased by an existing convertible preferred stockholder was accounted for as a deemed dividend and recorded in additional paid-in capital in the nine months ended September 27, 2020.

Recently Adopted Accounting Pronouncements

The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.

In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-15, Intangibles – Goodwill and Other - Internal-use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which clarifies the accounting for implementation costs in cloud computing arrangements. The update effectively aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for fiscal years beginning after December 15, 2020, including interim periods within fiscal years beginning after December 15, 2021. The Company adopted this standard on January 4, 2021 using the prospective transition method. The adoption of the new standard did not have a material impact on the Company’s condensed consolidated financial statements.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU. 2016-02, Leases (Topic 842), as amended, which requires lessees to recognize a right-of-use asset and lease liability on their condensed consolidated balance sheets for all leases with a term longer than twelve months. The guidance, as amended, is effective for fiscal years beginning after December 15, 2021, including interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted. The Company anticipates implementing the standard by taking advantage of the alternative transition method and will apply the transition approach as of the beginning of the period of adoption and will not be restating comparative periods. The Company also plans to apply other practical expedients provided by the standard. The Company has begun an implementation plan, including the identification of its lease population and the implementation of changes to existing processes that will be required to implement the new lease standard. The Company believes the most significant changes to the financial statements will relate to the recognition of right-of-use assets and offsetting lease liabilities in the condensed consolidated balance sheet for operating leases. The impact on the condensed consolidated balance sheet will be contingent upon the Company’s population of operating leases at adoption. However, the Company does not expect the standard to have a material impact on its condensed consolidated statements of operations and comprehensive income (loss) or cash flows.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended, which amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities from an incurred loss methodology to an expected loss methodology. For assets held at amortized cost basis, the guidance eliminates the probable initial recognition threshold and instead requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses are recorded through an allowance for credit losses, rather than a write-down, limited to the amount by which fair value is below amortized cost. Additional disclosures about

significant estimates and credit quality are also required. The guidance is effective for the Company for fiscal years beginning after December 15, 2022. The Company is currently assessing the potential impact of adopting ASU 2016-13 on its condensed consolidated financial statements and does not expect the adoption to have a material impact.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This standard is effective for fiscal periods beginning after December 15, 2021, including interim periods within fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the potential impact of adopting this guidance on its condensed consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Accounting, which, as amended, provides optional guidance for a limited period of time to ease the potential burden in accounting for (or reorganizing the effects of) reference rate reform on financial reporting. This standard can be adopted immediately, however, the guidance will only be available until December 31, 2022. The Company is currently evaluating the potential impact of adopting this guidance on its condensed consolidated financial statements.

In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40), which simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments. This guidance also eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. The guidance is effective for the Company for the fiscal year beginning after December 15, 2023 and interim periods within that fiscal year, with early adoption permitted. The Company is currently evaluating the potential impact of adopting this guidance on its condensed consolidated financial statements.

Fair Value Measurements

9 Months Ended

Oct. 03, 2021

Fair Value Measurements

Fair Value Measurements

3.Fair Value Measurements

The Company’s financial instruments consist of cash and cash equivalents, restricted cash, accounts payable, accrued expenses, revolving line of credit and long-term debt. As of October 3, 2021 and January 3, 2021, the carrying values of cash and cash equivalents, restricted cash, accounts payable and accrued expenses approximate fair value due to their short-term maturities. The fair values of long-term debt and revolving line of credit approximate their carrying value as the stated interest rates reset monthly at the London Interbank Offered Rate (“LIBOR”) plus an Applicable Margin (see Note 5, Debt) and, as such, approximate market rates currently available to the Company. The Company does not have any financial instruments that were determined to be Level 3.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Balance Sheet Components

9 Months Ended

Oct. 03, 2021

Balance Sheet Components

Balance Sheet Components

4.Balance Sheet Components

Prepaids and Other Current Assets

Prepaids and other current assets consisted of the following (in thousands):


	October 3,		January 3,
	2021		2021
Prepaid software subscriptions	$	1,168	$	897
Prepaid inventory and fulfillment supplies		540		483
Prepaid insurance		443		391
Prepaid rent		281		273
Deferred offering costs		1,653		—
Other		559		631
Prepaids and other current assets	$	4,644	$	2,675

Property and Equipment, net

Property and equipment, net consisted of the following (in thousands):


	October 3,		January 3,
	2021		2021
Leasehold improvements	$	3,774	$	3,647
Equipment		2,980		2,595
Furniture and fixtures		1,849		1,849
Construction in progress		110		28
Total property and equipment		8,713		8,119
Less: accumulated depreciation and amortization		(5,959)		(5,029)
Property and equipment, net	$	2,754	$	3,090

Depreciation of property and equipment for the three months ended October 3, 2021 and September 27, 2020 was $0.3 million and $0.4 million, respectively, and for the nine months ended October 3, 2021 and September 27, 2020 was $0.9 million and $1.2 million, respectively.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	October 3,		January 3,
	2021		2021
Accrued compensation and benefits	$	6,888	$	2,932
Accrued debt amendment fees		917		917
Accrued marketing		6,774		495
Accrued interest		94		169
Sales tax payable		2,985		563
Accrued inventory		3,554		90
Other		5,652		2,367
Accrued expenses and other current liabilities	$	26,864	$	7,533

The Company reclassified sales tax payable and accrued inventory from Other as of January 3, 2021 to conform to the current period presentation.

Debt

9 Months Ended

Oct. 03, 2021

Debt

Debt

5.Debt

In August 2017, the Company entered into a term loan with a principal amount of $135.0 million (“Term Loan”) and a revolving credit facility of $10.0 million (“Revolving Facility”) with certain financial institutions for which Credit Suisse is acting as an administrative agent (the “Credit Facility”).

The Company’s outstanding debt under the Term Loan consisted of the following (in thousands):


	October 3,		January 3,
	2021		2021
Principal amount of Term Loan	$	105,835	$	111,354
Less: Unamortized discount and debt issuance costs		(2,442)		(4,373)
Total carrying value of long-term debt		103,393		106,981
Less: Current portion of long-term debt		(103,393)		(10,125)
Long-term debt, net of current portion	$	—	$	96,856

The Company’s outstanding debt under the Revolving Facility consisted of the following (in thousands):


	October 3,		January 3,
	2021		2021
Principal amount of Revolving Facility	$	—	$	8,580
Less: Unamortized debt issuance costs ⁽¹⁾		(59)		(107)
Total carrying value of Revolving Facility	$	(59)	$	8,473

(1)	Debt issuance costs are included in other noncurrent assets in the condensed consolidated balance sheets.

During June 2020, the Company entered into a waiver and fifth amendment to the Credit Facility (the “Fifth Amendment”), which amended the following:

●

Waived the Company’s Existing Payment Default, Existing Covenant Default, and Existing Notice Defaults;

●

Amended interest payments on the Term Loan and Revolving Facility, resulting in a portion of interest from June 5, 2020 to the date that the Company provides evidence of compliance with the required Leverage Ratios (the “Compliance Date”, which was not met as of January 3, 2021) being payable in kind, with such interest being added to the outstanding principal balance of the Term Loan and Revolving Facility;

●

Deferred March, June, and September 2020 principal payments due of $7.5 million for the Term Loan to the maturity date;

●

Modified the Applicable Margin on the Term Loan from the Fifth Amendment Effective Date (June 5, 2020) to the first day of the month beginning after the Compliance Date, from an Applicable Margin of 9.00% to 9.50% for LIBOR Rate Term Loans and from an Applicable Margin of 8.00% to 8.50% for the Base Rate Term Loans; and

●

Modified the Applicable Margin on the Revolving Facility from the Fifth Amendment Effective Date (June 5, 2020) to the first day of the month beginning after the Compliance Date, from an Applicable Margin of 7.00% to 8.50% for LIBOR Rate Loans and from an Applicable Margin of 6.00% to 7.50% for Base Rate Loans.

For the Fifth Amendment, the Company incurred an amendment fee and other costs totaling $1.4 million that were treated as a debt issuance cost and will be amortized over the remaining term. As of October 3, 2021 and January 3, 2021, $0.9 million of the amendment fee was unpaid and included within accrued expenses and other current liabilities. There was no gain or loss arising from the Fifth Amendment as it was considered to be a debt modification.

During April 2021, the Company entered into the sixth amendment to the Credit Facility (“Sixth Amendment”), which amended the following:

●

Amended the minimum liquidity covenant from $2.5 million to $10.0 million

●

Extended the due date for the 2020 audited consolidated financial statements to September 30, 2021;

●

Upon receipt of proceeds from an IPO, Special Purpose Acquisition Company transaction, or other liquidity transaction that involves the equity of Lulu’s or its affiliates, the Company is required to pay off the outstanding obligations under the Credit Facility before any proceeds are utilized by the Company.

There was no gain or loss arising from the Sixth Amendment as it was considered to be a debt modification.

The Term Loan requires mandatory additional prepayments in May of each year if the Company’s Excess Cash Flow (“ECF”) for the preceding year exceeds the ECF as defined in the Term Loan agreement. There are no ECF payments due in the year ending January 2, 2022 related to 2020.

Amortization installment payments on the Term Loan are required to be made in quarterly installments of $2.5 million, with the remaining outstanding amount to be payable on August 28, 2022, the maturity date for the Term Loan. The effective interest rate on the Term Loan was 13.0% and 12.9% for the three months ended October 3, 2021 and September 27, 2020, respectively, and was 12.9% and 13.3% for the nine months ended October 3, 2021 and September 27, 2020, respectively.

Revolving Facility

Outstanding amounts under the Revolving Facility bear interest at variable rates with a minimum of 7.00%. Unused portions of the Revolving Facility bear a variable commitment fee of a minimum 0.375% to 0.50% per annum and are paid quarterly. The Revolving Facility matures on May 29, 2022. The Revolving Facility was amended with the Fifth Amendment, but there was no change to the commitment or the maturity date. In March 2021, the Company repaid $8.6 million of the outstanding principal amount of the Revolving Facility. The effective interest rate for the Revolving Facility was 10.3% for the three months ended September 27, 2020, and was 11.3% and 10.3% for the nine months ended October 3, 2021 and September 27, 2020, respectively. As of October 3, 2021, there was no outstanding balance on the Revolving Facility and the Company had $9.1 million remaining capacity under the Revolving Facility, net of outstanding letters of credit of $0.9 million.

The Term Loan and Revolving Facility are secured by all the assets of the Company and contain financial and reporting covenants, including restrictions on LFL with respect to the payment of dividends, which the Company was in compliance with as of October 3, 2021. Financial covenants include minimum liquidity amounts and are applicable if the Company’s overall liquidity is less than or equal to $10.0 million at the end of a reporting period. Substantially all of LFL’s assets are restricted from distribution to the Company. The Company does not have any material assets or liabilities,

other than its indirect investment in LFL. For the periods reported in these condensed consolidated financial statements, the Company has not and does not have any material operations on a standalone basis, and all of the operations of the Company are carried out by LFL.

Debt discounts and issuance costs are deferred and amortized over the life of the related loan using the effective interest method. The associated expense is included in interest expense in the condensed consolidated statements of operations and comprehensive income (loss). Debt discounts and issuance costs are presented as a reduction of long-term debt with the exception of debt issuance costs related to the revolving loan agreement which are included in other non-current assets in the condensed consolidated balance sheets.

Future minimum payments of principal on the Company’s outstanding debt were as follows (in thousands):


Fiscal Year Ending	Amounts
2021 (remaining three months)	$	2,531
2022		103,304
Total principal amount	$	105,835

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Section 50
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Commitments and Contingencies

9 Months Ended

Oct. 03, 2021

Commitments and Contingencies.

Commitments and Contingencies

6.Commitments and Contingencies

Operating Leases

As of October 3, 2021, the Company had non-cancelable operating leases for its corporate offices and warehouses expiring at various dates through 2026, some of which have renewal provisions. Rental expense classified within general and administrative expenses in the condensed consolidated statements of operations and comprehensive income (loss) totaled $0.7 million and $0.8 million in the three months ended October 3, 2021 and September 27, 2020, respectively, and $2.2 million and $2.3 million in the nine months ended October 3, 2021 and September 27, 2020, respectively.

On September 3, 2021, the Company entered into a new lease agreement for warehousing and distribution of consumer goods for approximately $0.2 million per month or $15.7 million over the lease term. The lease will commence on December 1, 2021 with a lease term of 7.2 years and there is a security deposit of $0.4 million.

Future minimum lease payments under non-cancelable operating leases as of October 3, 2021 were as follows (in thousands):


Fiscal Year ending:	Amounts
2021 (remaining three months)	$	1,599
2022		4,733
2023		4,252
2024		3,879
2025		4,017
Thereafter		7,464
Total	$	25,944

Litigation and Other

From time to time, the Company may be a party to litigation and subject to claims incurred in the ordinary course of business, including personal injury and indemnification claims, labor and employment claims, threatened claims, breach of contract claims, and other matters. The Company accrues a liability when management believes information available prior to the issuance of the condensed consolidated financial statements indicates it is probable a loss has been incurred as

of the date of the condensed consolidated financial statements and the amount of loss can be reasonably estimated. The Company adjusts its accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Legal costs are expensed as incurred. Although the results of litigation and claims are inherently unpredictable, management concluded that it was not probable that it had incurred a material loss during the periods presented related to such loss contingencies. Therefore, the Company has not recorded a reserve for any contingencies.

During the normal course of business, the Company may be a party to claims that are not covered by insurance. While the ultimate liability, if any, arising from these claims cannot be predicted with certainty, management does not believe that the resolution of any such claims would have a material adverse effect on the Company’s condensed consolidated financial statements. As of October 3, 2021, January 3, 2021 and September 27, 2020, the Company was not aware of any currently pending legal matters or claims, individually or in the aggregate, that are expected to have a material adverse impact on its condensed consolidated financial statements.

Indemnification

The Company also maintains director and officer insurance, which may cover certain liabilities arising from its obligation to indemnify the Company’s directors. To date, the Company has not incurred any material costs and has not accrued any liabilities in the condensed consolidated financial statements as a result of these provisions.

Preferred Stock

9 Months Ended

Oct. 03, 2021

Preferred Stock

Preferred Stock

7.Preferred Stock

The Company had outstanding redeemable preferred stock and convertible preferred stock (collectively, “Preferred Stock”) as follows (in thousands, except share and per share amounts):


	October 3, 2021
		Shares	Issuance		Net
	Shares	Issued and	Price Per		Carrying		Liquidation
	Authorized	Outstanding	Share		Value		Preference
Convertible Preferred Stock (Series A)	3,129,635	3,129,634	$	38.34	$	117,038	$	240,000
Redeemable Preferred Stock (Series B and B-1)	10,000,001	8,950,001		1.00		19,320		17,900
Total	13,129,636	12,079,635			$	136,358	$	257,900


	January 3, 2021
		Shares	Issuance		Net
	Shares	Issued and	Price Per		Carrying		Liquidation
	Authorized	Outstanding	Share		Value		Preference
Convertible Preferred Stock (Series A)	3,129,635	3,129,634	$	38.34	$	117,038	$	240,000
Redeemable Preferred Stock (Series B and B-1)	7,500,001	7,500,001		1.00		16,412		15,000
Total	10,629,636	10,629,635			$	133,450	$	255,000

The Company classifies its Preferred Stock (Series A, Series B and Series B-1) outside of stockholder’s deficit because the shares contain a redemption feature that is not within the Company’s control. As of October 3, 2021, the Company did not adjust the carrying value of the Series A Preferred Stock to its redemption value as a qualifying redemption event was not probable. Subsequent adjustments to the carrying value to the ultimate redemption value will be made only when it becomes probable that such a redemption event will occur. The Series B and Series B-1 Preferred Stock are not currently redeemable but are probable of becoming redeemable based on the passage of time. The carrying value of the Series B and Series B-1 Preferred Stock is greater than its redemption value as of October 3, 2021 and January 3, 2021.

Series B and Series B-1 Redeemable Preferred Stock Issuance

During June 2020, the Company issued and sold 7,500,001 shares of Series B Preferred Stock at $1.00 per share to the general partner and a limited partner of the LP and the Series A preferred stockholders. The Company received gross cash proceeds of $7.5 million and incurred issuance costs associated with the Series B Preferred Stock issuance of $0.2 million. For accounting purposes, the Company determined the fair value of the Series B Preferred Stock to be $2.21 per share at issuance. The Series B Preferred Stock shares purchased by entities related to current employees, board members, and service providers were recorded at fair value and the excess of the fair value over the consideration paid was recorded as equity-based compensation of $8.6 million. The Series B Preferred Stock shares purchased by an existing Series A preferred stockholder was recorded at fair value and the excess of the fair value over consideration paid was recorded as a deemed dividend of $0.5 million in additional paid-in capital.

During February 2021, the Company amended its Second Amended and Restated Certificate of Incorporation to amend the liquidation preference of the Series B preferred stock to an amount per share equal to a) two times the original issue price of $1.00 per share until August 28, 2022, or b) two times the original issue price of $1.00 per share plus an amount equal to 15% per annum accruing on two times the original issue price from August 28, 2022 through and including the date of payment, plus any dividends declared but unpaid.

During March 2021, the Company issued and sold 1,450,000 shares of Series B-1 Preferred Stock at $1.00 per share to current executives of the Company. In connection with the offering, the Company filed an amended and restated certificate of incorporation which authorized the issuance of up to 2,500,000 shares of Series B-1 preferred stock with the same rights, preferences and privileges of the Series B redeemable preferred stock and increased the authorized shares of common stock to 24,000,000.

The Company received gross cash proceeds of $1.5 million and incurred nominal issuance costs associated with the Series B-1 Preferred Stock issuance. For accounting purposes, the Company determined the fair value of the Series B-1 Preferred Stock to be $2.02 per share at issuance. The Series B-1 Preferred Stock shares were recorded at fair value and the excess of the fair value over the consideration paid was recorded as equity-based compensation of $1.5 million.

The fair value of the Series B and Series B-1 Preferred Stock was estimated using a two-step process. First, the Company’s enterprise value was established using generally accepted valuation methodologies, including discounted cash flow analysis and comparable public company analysis. Second, the Company’s enterprise value was allocated among the various classes of outstanding securities using the Black-Scholes option-pricing method. The option-pricing method treats all levels of the capital structure as call options on the enterprise’s value, with the exercise price based on the “breakpoints” between each of the different claims on the securities. The inputs necessary for the Series B Preferred Stock option-pricing model include the Company’s then-current enterprise value, breakpoints (the various characteristics for each class of equity, including liquidation preferences and priority distributions), time to liquidity of 3 years, risk-free rate of 0.21%, and volatility of 72.0%.The inputs necessary for the Series B-1 Preferred Stock option-pricing model include the Company’s then-current enterprise value, breakpoints (the various characteristics for each class of equity, including liquidation preferences and priority distributions), time to liquidity ranging from 0.5 to 1.5 years depending on the scenario, risk-free rate of 0.11%, and volatility of 78.0%.

Preferred Stock Provisions

Dividends – Before any dividends on common stock shall be declared or paid, the holders of outstanding shares of Preferred Stock (Series A, B and B-1) shall be entitled to receive dividends on an as-converted basis. Dividends to Preferred stockholders will be determined by dividing the dividend payable on each class/series of capital stock by the original issuance price of $38.34 for Series A, $1.00 for Series B and $1.00 for Series B-1 (adjusted for stock split, stock

dividend, etc.) and multiplying such fraction by the Preferred Stock original issue price. As of October 3, 2021, no dividends have been declared or paid.

Liquidation – In the event of any voluntary or involuntary liquidation, dissolution, or winding up of the Company (a “liquidation event”), the holders of the Series B and Series B-1 Preferred Stock are entitled to receive out of the available assets of the corporation, prior and in preference to any distribution to the holders of Series A and common stock an amount per share equal to a) two times the original issue price of $1.00 per share until August 28, 2022 or b) two times the original issue price of $1.00 per share plus an amount equal to 15% per annum accruing on two times the original issue price from August 28, 2022 through and including the date of payment, plus any dividends declared but unpaid (the “Series B-1 Liquidation Amount” or “the Series B Liquidation Amount” as applicable).

In the event of any voluntary or involuntary liquidation, dissolution, or winding up of the Company, the holders of the Series A Preferred Stock are entitled to receive out of the available assets of the corporation, less the Series B and Series B-1 Liquidation Amount, prior and in preference to any distribution to the holders of common stock, an amount per share for each share of Series A Preferred Stock held by them equal to the greater of 1) the sum of original issue price multiplied by the applicable factor (2.0 as of October 3, 2021) plus any declared but unpaid dividends on the Series A Preferred Stock; and ii) the amount per share as would have been payable if all shares of Series A Preferred Stock had been converted to common stock (the “Series A Liquidation Amount”).

Voting – Each share of Series A Preferred Stock is entitled to voting rights equal to the number of shares of common stock it can be converted to. Series A stockholders are entitled to elect two directors of the Company and common stockholders are entitled to elect nine directors. Each share of Series B and Series B-1 Preferred Stock is not entitled to voting rights.

Conversion – At the option of the holder, each share of Series A Preferred Stock was convertible into shares of common stock. As of October 3, 2021, each share of Series A Preferred Stock was convertible into one share of common stock, adjusted for stock splits, combinations, dividends and distributions. All outstanding shares of Series A Preferred Stock were subject to be automatically converted into shares of common stock at the then effective conversion rate upon one of the following conversion events: (i) the closing of a firm commitment underwritten IPO, provided that the aggregate gross proceeds to the Company are not less than $100.0 million; or (ii) by vote or written consent for conversion from the holders of a majority of the outstanding Preferred Stock. Each share of Series B and Series B-1 Preferred Stock was not convertible at the option of the holder.

The Series A Preferred Stock conversion ratio shall be subject to appropriate adjustments for stock splits, stock dividends, combinations, subdivisions, or recapitalization events. In addition, if the Company should issue preferred stock or common stock without consideration or for a consideration per share less than the conversion price for the Series A Preferred Stock, the conversion price for each series shall automatically be adjusted in accordance with anti-dilution provisions contained in the Company’s amended and restated certificate of incorporation.

Redemption – On or after April 12, 2024, all outstanding shares of Series A Preferred Stock will be redeemable upon written notice of at least 50% of the then outstanding Series A shares requesting redemption of all or part of the stock held by such holders. The shares shall be redeemed in up to two installments, at a price equal to the then applicable Series A Liquidation Amount. The initial redemption date shall be within sixty days of receiving written notice and the Company shall redeem at least 50% of the shares at that time. The remaining shares to be redeemed shall accrue interest at a rate of 12.0% per annum and shall be redeemed no later than six months following the initial redemption date.

Upon written request from the holders of at least 50% of the then outstanding shares of Series B Preferred Stock and Series B-1 Preferred Stock voting together as a single class, the Company will redeem the Series B Preferred Stock and Series B-1 Preferred Stock in up to two installments at a price equal to the then applicable Series B and B-1 Liquidation

Amount. The Series B and Series B-1 redemption request may not be delivered prior to April 12, 2024. The initial redemption date shall be within sixty days of receiving written notice and the Company shall redeem at least 50% of the shares at that time. The remaining shares to be redeemed shall accrue interest at a rate of 12.0% per annum and shall be redeemed no later than six months following the initial redemption date. No redemption of any shares of Series B Preferred Stock or Series B-1 Preferred Stock shall occur prior to the earlier of (x) 91st day following the Latest Maturity Date, as defined in the Credit Facility, and (y) the termination of the Credit Facility.

Upon the sale of Common Stock in an IPO, all Series B and Series B-1 Preferred Stock will be redeemed by the Company at a price equal to the Series B and Series B-1 Liquidation Amount.

Common Stock

9 Months Ended

Oct. 03, 2021

Common Stock

Common Stock

8.Common Stock

The Company has authorized the issuance of 24,000,000 shares of common stock with a $0.001 par value as of October 3, 2021. As of October 3, 2021 and January 3, 2021, there were 17,462,283 shares of common stock issued and outstanding. Holders of common stock are entitled to one vote per share on all matters to be voted upon by the stockholders of the Company. Subject to the preferences that may be applicable to any outstanding share of preferred stock, the holders of common stock are entitled to receive dividends, if any, as may be declared by the board of directors. No dividends have been declared to date. As of October 3, 2021 and January 3, 2021, the Company has reserved 3,129,634 shares of common stock for issuance on an as-convertible basis related to convertible preferred stock outstanding. As of October 3, 2021, the Company has reserved 322,793 shares of common stock for issuance upon the exercise of stock options.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Equity-Based Compensation

9 Months Ended

Oct. 03, 2021

Equity-Based Compensation

Equity-Based Compensation

9.Equity-Based Compensation

2021 Equity Plan

During April 2021, the Company’s board of directors adopted the 2021 Equity Incentive Plan (“2021 Equity Plan”). The 2021 Equity Plan provides for the issuance of incentive stock options, restricted stock, restricted stock units and other stock-based and cash-based awards to the Company’s employees, directors, and consultants. The maximum aggregate number of shares reserved for issuance under the 2021 Equity Plan is 925,000 shares, with 602,207 shares available for grant as of October 3, 2021. The Company’s board of directors administers the 2021 Plan and determines to whom options will be granted, the exercise price of options, the rates at which awards vest and the other terms and conditions of the awards issued from the 2021 Equity Plan. Options generally vest over four years and are subject to the employee’s continued employment with us. Options granted to consultants or other nonemployees generally vest over the expected service period to the Company. The options expire ten years from the date of grant. The Company issues new shares to satisfy stock option exercises. In connection with the closing of the IPO, no further awards will be granted under the 2021 Equity Plan.

CEO Stock Options and Special Compensation Awards

During April 2021, the Company entered into an Employment Agreement (“Employment Agreement“) with the CEO and granted stock options to purchase 322,793 shares of common stock with an exercise price of $11.35 per share, which vest based on service and performance conditions. 275,133 of these stock options have only service vesting conditions, and 47,660 of these stock options have both service and performance vesting conditions. In addition, a portion of these stock options were subject to accelerated vesting conditions upon the occurrence of certain future events, which were satisfied upon the closing of the IPO.

Under the Employment Agreement and subject to ongoing employment, and in light of the closing of the IPO, the CEO will receive two bonuses which will be settled in fully-vested shares of the Company’s common stock equal to $3.0 million each ($6.0 million in aggregate) on March 31, 2022 and March 31, 2023. The Company concluded that the two

bonuses are subject to the guidance within ASC 718, are liability classified and recorded within accrued expense and other current liabilities and other noncurrent liabilities. The Company records the equity-based compensation expense on a straight-line basis over the requisite service periods through March 31, 2022 and March 31, 2023. During the three and nine months ended October 3, 2021, the Company recognized equity-based compensation related to the two bonuses of $1.2 million and $2.2 million, respectively. The unrecognized equity-based compensation of $3.8 million as of October 3, 2021 is expected to be recognized over 1.09 years. If the IPO would have occurred as of October 3, 2021, the Company would have recognized no additional equity-based compensation expense.

Stock Options

A summary of stock option activity is as follows (in thousands, except per share amounts and years):


		Weighted-		Weighted-
		Average		Average
		Exercise		Remaining	Aggregate
	Options	Price per		Contractual	Intrinsic
	Outstanding	Option		Life (years)	Value
Balance as of January 3, 2021	—	$	—	—	$	—
Authorized
Granted	322,793	$	11.35
Outstanding as of October 3, 2021	322,793	$	11.35	9.54	$	4,109
Vested and exercisable as of October 3, 2021	—	$	—	—	$	—
Expected to vest as of October 3, 2021	322,793	$	11.35	9.54	$	4,109

The weighted-average grant-date fair value of options granted during the nine months ended October 3, 2021 was $16.44.

The following table presents the range of assumptions used to estimate the fair value of options granted during the periods presented:


	Nine Months Ended
	October 3, 2021
Fair value of common stock	$	25.86
Expected term (in years)		6.48
Expected volatility		50.62	%
Risk-free rate		1.17	%
Dividend yield		0	%

Fair Value of Common Stock - As there is no public market for the Company’s common stock, the board of directors, with the assistance of a third-party valuation specialist, determined the fair value of the Company’s common stock at the time of the grant of stock options by considering a number of objective and subjective factors, including the Company’s actual operating and financial performance, market conditions and performance of comparable publicly-traded companies, developments and milestones in the Company, the likelihood of achieving a liquidity event and transactions involving the Company’s common stock, among other factors. The fair value of the underlying common stock was determined by the board of directors. The fair value of the Company’s common stock was determined in accordance with applicable elements of the American Institute of Certified Public Accountants guide, Valuation of Privately Held Company Equity Securities Issued as Compensation.

Risk-Free Interest Rate - The risk-free interest rate is based on the U.S. Treasury yield in effect at the time the options are granted for zero coupon U.S. Treasury notes with maturities approximately equal to the expected term of the option.

Expected Term - The expected term is based upon the Company’s consideration of the historical life of options, the vesting period of the option granted, and the contractual period of the option granted. The Company has a limited history of granting options, accordingly, the expected life was calculated using the simplified method.

Volatility - As the Company is not publicly traded, the expected volatility for the Company’s stock options was determined by using an average of historical volatilities of selected industry peers deemed to be comparable to the Company’s business corresponding to the expected term of the awards.

Dividend Yield - The expected dividend rate is zero as the Company currently has no history or expectation of declaring dividends on its common stock.

During the three months and nine months ended October 3, 2021, equity-based compensation expense of $0.3 and $0.6 million, respectively, was recorded to general and administrative expense related to the stock options, respectively. As of October 3, 2021, total unrecognized compensation cost related to unvested stock options was $4.4 million, which is expected to be recognized over a weighted average remaining service period of 3.49 years. If the IPO would have occurred as of October 3, 2021, the Company would have recognized an additional $1.3 million and $0.6 million of equity-based compensation expense related to the options only with service vesting conditions options and stock options with both performance and service vesting conditions, respectively.

Class P Units

During Q2 2020 and Q3 2020, all outstanding Class P units totaling 1,858,210 were modified ($7.22 weighted average modification date fair value per unit) to include a provision that if the employment with or service to the Company is terminated, then all outstanding Class P units that have satisfied the service-based vesting requirements will remain outstanding. 384,522 of the outstanding Class P units were also modified to include both a service condition and a performance condition. The performance-based vesting condition is satisfied upon the occurrence of a qualifying distribution event, which is generally defined as an issuance of a distribution to the LP’s partners. As of the modification dates, the Company measured the fair value of all modified Class P units. During Q4 2020, the LP granted an additional 1,094,861 Class P units which vest monthly over four years from the grant date and only include a service condition ($4.54 weighted average grant date fair value per unit). If the performance-based vesting condition had occurred on October 3, 2021, the Company would have recognized $2.4 million of equity-based compensation expense for Class P unit awards that had satisfied or partially satisfied the time-based vesting condition on that date and would have approximately $0.4 million of unrecognized compensation cost that represents the Class P unit awards which have not met the time-based condition as of October 3, 2021.

The Company recorded equity-based compensation expense of $0.4 million and $0.2 million during the three months ended October 3, 2021 and September 27, 2020, respectively, and $1.3 million and $8.6 million during the nine months ended October 3, 2021 and September 27, 2020, respectively, related to the outstanding and vested service-based Class P units. As of October 3, 2021, there were 326,338 performance-based Class P units outstanding with unrecognized equity-based compensation expense of $2.8 million, and the Company has concluded that the performance-based condition was not met and accordingly, no expense has been recognized during the three- and nine-month periods ended October 3, 2021 and September 27, 2020.

Pre-Vesting Distributions

During the nine months ended October 3, 2021, there was one employee that was terminated and $0.5 million of pre-vesting distributions were forfeited. Pre-vesting distributions totaling $2.9 million will be recognized when both the service-based condition and the performance-based vesting conditions of the underlying Class P units are met. As of October 3, 2021, the performance-based condition was not met and no compensation expense associated with the pre-

vesting distributions has been recognized. If the performance-based vesting condition had occurred on October 3, 2021, the Company would have recognized $2.6 million of equity-based compensation expense for pre-vesting distributions that had satisfied or partially satisfied the time-based vesting condition on that date and would have approximately $0.3 million of unrecognized compensation cost that represents the pre-vesting distributions which have not met the time-based condition as October 3, 2021.

The following table summarizes the rollforward of unvested Class P units for October 3, 2021:


		Weighted-
	Unvested Class	Average Fair
	P units	Value per Unit
Balance at January 3, 2021	1,729,938	$	5.33
Units granted	—		—
Units vested	(299,097)		4.43
Units forfeited	(58,184)		8.45
		$	5.39
Balance at October 3, 2021	1,372,657		5.33

As of October 3, 2021, the unrecognized equity-based compensation expense for all Class P units with a service condition of $4.6 million will be recognized over a weighted-average period of 2.8 years.

Income Taxes

9 Months Ended

Oct. 03, 2021

Income Taxes

Income Taxes

10.Income Taxes

The Company’s quarterly tax provision was calculated using a discrete approach, as allowed by FASB ASC 740, Income Taxes. The discrete method is applied when it is not possible to reliably estimate the annual effective tax rate. The Company believes the use of the discrete method is more appropriate than the annual effective rate method at this time because of the uncertainties that have resulted from the COVID-19 pandemic. All of the Company’s income (loss) before income taxes is from the United States. The following table presents the components of the provision for income taxes (in thousands):


	Three months ended
	October 3,			September 27,
	2021			2020
Income (loss) before (provision) benefit for income taxes	$	5,466		$	131
(Provision) benefit for income taxes		(1,616)			246
Effective tax rate		(29.6)	%		188	%


	Nine months ended
	October 3,			September 27,
	2021			2020
Income (loss) before provision for income taxes	$	15,894		$	(14,965)
Provision for income taxes		(5,075)			(187)
Effective tax rate		(31.9)	%		(1.2)	%

The Company’s effective tax rate for the three and nine months ended September 27, 2020 differs from the federal income tax rate of 21% primarily due to non-deductible equity-based compensation expenses.

The Company’s effective tax rate for the three and nine months ended October 3, 2021 differs from the federal income tax rate of 21% primarily due to state taxes and non-deductible equity-based compensation expenses.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Related Party Transactions

9 Months Ended

Oct. 03, 2021

Related Party Transactions

Related Party Transactions

11.Related Party Transactions

Transactions with the LP

Certain of the Company’s transactions with the LP are classified as a component within additional paid-in capital in the condensed consolidated statements of stockholder’s deficit as there are no defined payments or other terms associated with these transactions. Such transactions included equity-based compensation related to outstanding Class P units of $0.4 million and $1.3 million in the three months and nine months ended October 3, 2021, respectively, and $0.2 million and $8.6 million in the three months and nine months ended September 27, 2020, respectively.

Series B Redeemable Preferred Stock Issuance

The Series B Preferred Stock shares purchased by entities related to current employees, board members, and service providers were recorded at fair value and the excess of the fair value of $2.21 per share over the consideration paid of $1.00 per share was recorded as equity-based compensation of $8.6 million in the nine months ended September 27, 2020. The Series B Preferred Stock shares purchased by an existing Series A stockholder was recorded at fair value and excess of the fair value of $2.21 per share over the consideration paid of $1.00 per share was recorded as a deemed dividend of $0.5 million in additional paid-in capital in the nine months ended September 27, 2020.

Series B-1 Redeemable Preferred Stock Issuance

The Series B-1 Preferred Stock shares purchased by current executives were recorded at fair value and the excess of the fair value of $2.02 per share over the consideration paid of $1.00 per share was recorded as equity-based compensation of $1.5 million in the nine months ended October 3, 2021.

Advance to/from the LP

An additional $37,000 was advanced to the Company from the LP during the nine months ended September 27, 2020. During the nine months ended September 27, 2020, the Company repaid the $2.0 million of advances from the LP plus accrued interest of $0.1 million, which repayment was used by the LP to pay accrued Class P unit distributions to certain current employees of the Company.

Management & Consulting Fees

The Company has accrued for management and consulting fees to H.I.G. Capital, LLC (“H.I.G.”, the LP’s ultimate parent), Institutional Venture Partners (Series A Preferred Stockholder), and certain board members. Expenses for such services were $0.1 million to H.I.G and $0.1 million to other related parties for the three months ended October 3, 2021 and were $0.1 million to H.I.G. and $0.1 million to other related parties for the three months ended September 27, 2020. Such services were $0.4 million to H.I.G and $0.3 million to other related parties for the nine months ended October 3, 2021 and were $0.4 million to H.I.G. and $0.3 million to other related parties for the nine months ended September 27, 2020. There were $1.1 million of accrued liabilities and $0.3 million of accounts payable related to these services as of October 3, 2021 and $0.2 million of accrued liabilities and $0.8 million of accounts payable related to these services as of January 3, 2021. All outstanding management fees were settled at the time of our IPO and will cease to accrue beyond that date.

Operating Leases

The Company leases operations and warehouse spaces from a limited partner of the LP and a Series B Preferred Stockholder of the Company. Total rent expense to the related party was $12,115 and $18,557 for the three months ended

October 3, 2021 and September 27, 2020, respectively, and $36,345 and $93,351 for the nine months ended October 3, 2021 and September 27, 2020, respectively.

Subsequent Events

9 Months Ended

Oct. 03, 2021

Subsequent Events

Subsequent Events

12.Subsequent Events

IPO

As discussed in Note 1, Description of Business, Organization, and Liquidity, on November 15, 2021, the Company completed its IPO, all outstanding shares of Series A Preferred Stock converted into common stock, and each share of the Series B Preferred Stock and the Series B-1 Preferred Stock was redeemed and extinguished.

Additionally, immediately prior to the completion of the IPO, the Company filed an Amended and Restated Certificate of Incorporation, which authorized a total of 250,000,000 shares of Common Stock, $0.001 par value per share and 10,000,000 shares of Preferred Stock, par value $0.001 per share.

Line of Credit Arrangement

With the completion of the IPO, the Company entered into the $50.0 million New Revolving Facility and borrowed $25.0 million on November 15, 2021. The New Revolving Facility matures on November 15, 2024, and borrowings thereunder will accrue interest at a rate equal to, at our option, either (x) the term daily secured overnight financing (“SOFR”) rate, plus the applicable SOFR adjustment and plus a margin of 1.75% per annum or (y) the base rate plus a margin of 0.75% (with the base rate being the highest of the federal funds rate plus 0.50%, the prime rate and term SOFR for a period of one month plus 1.00%). Additionally, a commitment fee of 37.5 basis points will be assessed on unused commitments under the New Revolving Facility.

Term Loan Repayment

With the completion of the IPO, the Company repaid the existing Term Loan in the amount of $107.2 million on November 15, 2021, which was comprised of $105.8 million in principal and $1.4 million in interest. The Credit Facility was terminated on November 15, 2021 and no prepayment penalties were incurred. The Company wrote off $2.6 million in debt issuance costs and debt discounts, and accrued debt issuance costs of $0.9 million were forgiven in accordance with the Fifth Amendment and written off

Omnibus Equity Plan and Employee Stock Purchase Plan

In connection with the closing of the IPO, the Company adopted the Omnibus Equity Plan (the “Omnibus Equity Plan”) and the 2021 Employee Stock Purchase Plan (the “ESPP”).

Under the Omnibus Equity Plan, incentive awards may be granted to employees, directors, and consultants of the Company. The Company initially reserved 3,719,000 shares of common stock for future issuance under the Omnibus Equity Plan, including any shares subject to awards under the 2021 Equity Plan that are forfeited or lapse unexercised. The number of shares reserved for issuance under the Omnibus Equity Plan will automatically increase on January 1st of each year, starting on January 1, 2022 and continuing through January 1, 2031, equal to (a) 4% of the total number of shares of the Company’s common stock outstanding on the last day of the immediately preceding year or (b) such smaller number of shares as determined by the Company’s board of directors.

Under the ESPP, certain Company employees may purchase shares of the Company’s common stock at a 15% discount in future offerings. The Company initially reserved 743,803 shares of common stock for future issuance under the ESPP. The number of shares of common stock reserved for issuance under the ESPP will automatically increase on

January 1st of each year, starting on January 1, 2022 and continuing through January 1, 2031, equal to (a) 1% of the total number of shares of the Company’s common stock outstanding on the last day of the immediately preceding year or (b) such smaller number of shares as determined by the Company’s board of directors.

Class P Unit Modifications and Liquidation of the LP

The Board of Directors of the LP previously granted incentive awards of Class P Units to certain eligible employees and non-employee directors pursuant to award agreements entered into with each individual. These Class P Units vest over time, subject to the holder’s continued service to the Company through each applicable vesting date. During October 2021, the LP modified the vesting schedule related to 763,178 outstanding Class P Units for two senior executives to accelerate vesting if the two senior executives perform service after the completion of the IPO over the subsequent twelve-month period. Immediately before the completion of the IPO, the LP liquidated and the unit holders of the LP received 17,677,985 shares of the Company’s common stock in exchange for their units of the LP. Any such shares of common stock received in respect of unvested Class P Units of the LP are subject to vesting and a risk of forfeiture to the same extent as the corresponding Class P Units.

Stock Based Awards

Immediately following the completion of the IPO, 51,747 restricted stock units (“RSUs”), each of which represents the right to receive one share of the Company’s common stock, were granted to the CEO. Of these RSUs, 25,874 accelerated and became fully vested and exercisable upon completion of the IPO, with any shares acquired upon vesting of such restricted stock units subject to a holding period of 12 months following the completion of the IPO.

Significant Accounting Policies (Policies)

9 Months Ended

Oct. 03, 2021

Significant Accounting Policies

Basis of Presentation and Fiscal Year

The Company’s fiscal year consists of a 52-week or 53-week period ending on the Sunday nearest December 31.

Use of Estimates

Segment Reporting

Concentration of Credit Risks

Cash, Cash Equivalents and Restricted Cash


	October 3,		January 3,
	2021		2021
Cash and cash equivalents	$	40,927	$	15,554
Restricted cash		505		505
Total cash and restricted cash	$	41,432	$	16,059

Deferred Offering Costs

Revenue Recognition

The following table summarizes the significant changes in the contract liabilities balances during the three- and nine-month periods ended October 3, 2021 and September 27, 2020 (in thousands):


	Deferred		Stored-Value
	Revenue		Cards
Balance as of January 3, 2021	$	792	$	4,973
Revenue recognized that was included in contract liability balance at the beginning of the period		(792)		(792)
Increase due to cash received, excluding amounts recognized as revenue during the period		5,949		741
Balance as of April 4 , 2021		5,949		4,922
Revenue recognized that was included in contract liability balance at the beginning of the period		(5,949)		(542)
Increase due to cash received, excluding amounts recognized as revenue during the period		1,259		1,307
Balance as of July 4, 2021		1,259		5,687
Revenue recognized that was included in contract liability balance at the beginning of the period		(1,259)		(117)
Increase due to cash received, excluding amounts recognized as revenue during the period		247		924
Balance as of October 3, 2021	$	247	$	6,494


	Deferred		Stored-Value
	Revenue		Cards
Balance as of December 30, 2019	$	547	$	4,605
Revenue recognized that was included in contract liability balance at the beginning of the period		(547)		(1,125)
Increase due to cash received, excluding amounts recognized as revenue during the period		2,717		1,195
Balance as of March 29, 2020		2,717		4,675
Revenue recognized that was included in contract liability balance at the beginning of the period		(2,717)		(501)
Increase due to cash received, excluding amounts recognized as revenue during the period		1,232		518
Balance as of June 28, 2020		1,232		4,692
Revenue recognized that was included in contract liability balance at the beginning of the period		(1,232)		(261)
Increase due to cash received, excluding amounts recognized as revenue during the period		1,300		407
Balance as of September 27, 2020	$	1,300	$	4,838

Selling and Marketing Expenses

Equity-based Compensation

Equity-Based Compensation

Stock Options

Class P units

Net Income (Loss) Per Share Attributable to Common Stockholders


	October 3, 2021	September 27, 2020
Series A convertible preferred stock	3,129,634	3,129,634
Stock options	322,793	—
Total	3,452,427	3,129,634

Redeemable Preferred Stock

stock shares purchased by an existing convertible preferred stockholder was accounted for as a deemed dividend and recorded in additional paid-in capital in the nine months ended September 27, 2020.

Recently Adopted and Issued Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

Significant Accounting Policies (Tables)

9 Months Ended

Oct. 03, 2021

Significant Accounting Policies

Reconciliation of cash, cash equivalents and restricted cash


	October 3,		January 3,
	2021		2021
Cash and cash equivalents	$	40,927	$	15,554
Restricted cash		505		505
Total cash and restricted cash	$	41,432	$	16,059

Summary of significant changes in contract liabilities balances

The following table summarizes the significant changes in the contract liabilities balances during the three- and nine-month periods ended October 3, 2021 and September 27, 2020 (in thousands):


	Deferred		Stored-Value
	Revenue		Cards
Balance as of January 3, 2021	$	792	$	4,973
Revenue recognized that was included in contract liability balance at the beginning of the period		(792)		(792)
Increase due to cash received, excluding amounts recognized as revenue during the period		5,949		741
Balance as of April 4 , 2021		5,949		4,922
Revenue recognized that was included in contract liability balance at the beginning of the period		(5,949)		(542)
Increase due to cash received, excluding amounts recognized as revenue during the period		1,259		1,307
Balance as of July 4, 2021		1,259		5,687
Revenue recognized that was included in contract liability balance at the beginning of the period		(1,259)		(117)
Increase due to cash received, excluding amounts recognized as revenue during the period		247		924
Balance as of October 3, 2021	$	247	$	6,494


	Deferred		Stored-Value
	Revenue		Cards
Balance as of December 30, 2019	$	547	$	4,605
Revenue recognized that was included in contract liability balance at the beginning of the period		(547)		(1,125)
Increase due to cash received, excluding amounts recognized as revenue during the period		2,717		1,195
Balance as of March 29, 2020		2,717		4,675
Revenue recognized that was included in contract liability balance at the beginning of the period		(2,717)		(501)
Increase due to cash received, excluding amounts recognized as revenue during the period		1,232		518
Balance as of June 28, 2020		1,232		4,692
Revenue recognized that was included in contract liability balance at the beginning of the period		(1,232)		(261)
Increase due to cash received, excluding amounts recognized as revenue during the period		1,300		407
Balance as of September 27, 2020	$	1,300	$	4,838

Schedule of securities that were excluded from computation of diluted net loss per share


	October 3, 2021	September 27, 2020
Series A convertible preferred stock	3,129,634	3,129,634
Stock options	322,793	—
Total	3,452,427	3,129,634

Balance Sheet Components (Tables)

9 Months Ended

Oct. 03, 2021

Balance Sheet Components

Schedule of prepaids and other current assets

Prepaids and other current assets consisted of the following (in thousands):


	October 3,		January 3,
	2021		2021
Prepaid software subscriptions	$	1,168	$	897
Prepaid inventory and fulfillment supplies		540		483
Prepaid insurance		443		391
Prepaid rent		281		273
Deferred offering costs		1,653		—
Other		559		631
Prepaids and other current assets	$	4,644	$	2,675

Schedule of property and equipment, net

Property and equipment, net consisted of the following (in thousands):


	October 3,		January 3,
	2021		2021
Leasehold improvements	$	3,774	$	3,647
Equipment		2,980		2,595
Furniture and fixtures		1,849		1,849
Construction in progress		110		28
Total property and equipment		8,713		8,119
Less: accumulated depreciation and amortization		(5,959)		(5,029)
Property and equipment, net	$	2,754	$	3,090

Schedule of accrued expenses and other current liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	October 3,		January 3,
	2021		2021
Accrued compensation and benefits	$	6,888	$	2,932
Accrued debt amendment fees		917		917
Accrued marketing		6,774		495
Accrued interest		94		169
Sales tax payable		2,985		563
Accrued inventory		3,554		90
Other		5,652		2,367
Accrued expenses and other current liabilities	$	26,864	$	7,533

Debt (Tables)

9 Months Ended

Oct. 03, 2021

Debt

Summary of outstanding debt under the Term Loan

The Company’s outstanding debt under the Term Loan consisted of the following (in thousands):


	October 3,		January 3,
	2021		2021
Principal amount of Term Loan	$	105,835	$	111,354
Less: Unamortized discount and debt issuance costs		(2,442)		(4,373)
Total carrying value of long-term debt		103,393		106,981
Less: Current portion of long-term debt		(103,393)		(10,125)
Long-term debt, net of current portion	$	—	$	96,856

Summary of outstanding debt under the Revolving LOC

The Company’s outstanding debt under the Revolving Facility consisted of the following (in thousands):


	October 3,		January 3,
	2021		2021
Principal amount of Revolving Facility	$	—	$	8,580
Less: Unamortized debt issuance costs ⁽¹⁾		(59)		(107)
Total carrying value of Revolving Facility	$	(59)	$	8,473

(1)	Debt issuance costs are included in other noncurrent assets in the condensed consolidated balance sheets.

Summary of future minimum payments of principal on the Company's outstanding debt

Future minimum payments of principal on the Company’s outstanding debt were as follows (in thousands):


Fiscal Year Ending	Amounts
2021 (remaining three months)	$	2,531
2022		103,304
Total principal amount	$	105,835

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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-Topic 210
-SubTopic 10
-Section S99
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

Commitments and Contingencies (Tables)

9 Months Ended

Oct. 03, 2021

Commitments and Contingencies.

Future minimum lease payments under non-cancelable operating leases

Future minimum lease payments under non-cancelable operating leases as of October 3, 2021 were as follows (in thousands):


Fiscal Year ending:	Amounts
2021 (remaining three months)	$	1,599
2022		4,733
2023		4,252
2024		3,879
2025		4,017
Thereafter		7,464
Total	$	25,944

Preferred Stock (Tables)

9 Months Ended

Oct. 03, 2021

Preferred Stock

Summary of outstanding redeemable preferred stock and convertible preferred stock


	October 3, 2021
		Shares	Issuance		Net
	Shares	Issued and	Price Per		Carrying		Liquidation
	Authorized	Outstanding	Share		Value		Preference
Convertible Preferred Stock (Series A)	3,129,635	3,129,634	$	38.34	$	117,038	$	240,000
Redeemable Preferred Stock (Series B and B-1)	10,000,001	8,950,001		1.00		19,320		17,900
Total	13,129,636	12,079,635			$	136,358	$	257,900


	January 3, 2021
		Shares	Issuance		Net
	Shares	Issued and	Price Per		Carrying		Liquidation
	Authorized	Outstanding	Share		Value		Preference
Convertible Preferred Stock (Series A)	3,129,635	3,129,634	$	38.34	$	117,038	$	240,000
Redeemable Preferred Stock (Series B and B-1)	7,500,001	7,500,001		1.00		16,412		15,000
Total	10,629,636	10,629,635			$	133,450	$	255,000

Equity-Based Compensation (Tables)

9 Months Ended

Oct. 03, 2021

Equity-Based Compensation

Summary of stock option activity

A summary of stock option activity is as follows (in thousands, except per share amounts and years):


		Weighted-		Weighted-
		Average		Average
		Exercise		Remaining	Aggregate
	Options	Price per		Contractual	Intrinsic
	Outstanding	Option		Life (years)	Value
Balance as of January 3, 2021	—	$	—	—	$	—
Authorized
Granted	322,793	$	11.35
Outstanding as of October 3, 2021	322,793	$	11.35	9.54	$	4,109
Vested and exercisable as of October 3, 2021	—	$	—	—	$	—
Expected to vest as of October 3, 2021	322,793	$	11.35	9.54	$	4,109

Summary of assumptions used to estimate the fair value of options granted


	Nine Months Ended
	October 3, 2021
Fair value of common stock	$	25.86
Expected term (in years)		6.48
Expected volatility		50.62	%
Risk-free rate		1.17	%
Dividend yield		0	%

Summary of rollforward of unvested units

The following table summarizes the rollforward of unvested Class P units for October 3, 2021:


		Weighted-
	Unvested Class	Average Fair
	P units	Value per Unit
Balance at January 3, 2021	1,729,938	$	5.33
Units granted	—		—
Units vested	(299,097)		4.43
Units forfeited	(58,184)		8.45
		$	5.39
Balance at October 3, 2021	1,372,657		5.33

Income Taxes (Tables)

9 Months Ended

Oct. 03, 2021

Income Taxes

Components of the provision for income taxes


	Three months ended
	October 3,			September 27,
	2021			2020
Income (loss) before (provision) benefit for income taxes	$	5,466		$	131
(Provision) benefit for income taxes		(1,616)			246
Effective tax rate		(29.6)	%		188	%


	Nine months ended
	October 3,			September 27,
	2021			2020
Income (loss) before provision for income taxes	$	15,894		$	(14,965)
Provision for income taxes		(5,075)			(187)
Effective tax rate		(31.9)	%		(1.2)	%

Description of Business, Organization and Liquidity (Details) - USD ($) $ / shares in Units, $ in Thousands				1 Months Ended		9 Months Ended
	Nov. 15, 2021	Nov. 14, 2021	Jun. 30, 2020	Mar. 31, 2021	Jun. 30, 2020	Oct. 03, 2021	Sep. 27, 2020	Aug. 31, 2017	Dec. 31, 2014
Subsidiary, Sale of Stock [Line Items]
Acquired percentage of outstanding common stock of subsidiary by LP									100.00%
Net proceeds	$ 85,600
Number of shares of common stock upon conversion of convertible preferred stock		15,000,000
Redeemable preferred stock were redeemed for liquidation preference	17,900
Revolving line of credit	$ 50,000
Proceeds from issuance of preferred stock						$ 1,427	$ 7,337
Debt term	3 years
Borrowed amount	$ 25,000
Repayment of principal	105,800
Repayment of interest	$ 1,400
LP
Subsidiary, Sale of Stock [Line Items]
Issuance of common stock (in shares)		215,702
Subsequent event \| LP
Subsidiary, Sale of Stock [Line Items]
Issuance of common stock (in shares)	17,677,985
Series B Redeemable Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Underwriting discounts and commissions			$ 200
Proceeds from issuance of preferred stock					$ 7,300
Series B-1 Redeemable Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Proceeds from issuance of preferred stock				$ 1,400
Revolving credit facility
Subsidiary, Sale of Stock [Line Items]
Revolving line of credit			$ 5,300		$ 5,300			$ 10,000
New revolving facility \| Subsequent event
Subsidiary, Sale of Stock [Line Items]
Revolving line of credit	$ 50,000
Borrowed amount	$ 25,000
IPO
Subsidiary, Sale of Stock [Line Items]
Issuance of common stock (in shares)	5,750,000
Share price	$ 16.00
Net proceeds	$ 85,600
Underwriting discounts and commissions	$ 6,400

Significant Accounting Policies - Segment Reporting (Details)	9 Months Ended
	Oct. 03, 2021 segment
Significant Accounting Policies
Number of operating segments	1
Number of reporting segments	1

Significant Accounting Policies - Concentration of Credit Risks (Details)	9 Months Ended	12 Months Ended
	Oct. 03, 2021	Jan. 03, 2021
Accounts receivable \| Customer concentration risk \| Single wholesale customer
Concentration Risk [Line Items]
Concentration risk percentage	26.00%	51.00%

Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Oct. 03, 2021	Jan. 03, 2021	Sep. 27, 2020	Dec. 29, 2019
Significant Accounting Policies
Cash and cash equivalents	$ 40,927	$ 15,554
Restricted cash	505	505
Total cash and restricted cash	$ 41,432	$ 16,059	$ 36,412	$ 6,361

Significant Accounting Policies - Deferred Offering Costs (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 27, 2020	Oct. 03, 2021	Jan. 03, 2021
Write-off of deferred offering costs	$ 1,950
Deferred offering costs		$ 1,653
General and administrative expenses
Write-off of deferred offering costs	$ 2,000
Prepaid and other current assets
Deferred offering costs		$ 1,700	$ 0

Significant Accounting Policies - Revenue Recognition (Details) $ in Thousands	3 Months Ended						9 Months Ended
	Oct. 03, 2021 USD ($) item	Jul. 04, 2021 USD ($)	Apr. 04, 2021 USD ($)	Sep. 27, 2020 USD ($)	Jun. 28, 2020 USD ($)	Mar. 29, 2020 USD ($)	Oct. 03, 2021 USD ($) item
Disaggregation of Revenue [Line Items]
Number of performance obligation \| item	1						1
Practical expedient							true
Number of contractual liabilities \| item	2						2
Maximum
Disaggregation of Revenue [Line Items]
Revenue duration period							36 months
Deferred Revenue
Significant changes in the contract liabilities balances
Beginning Balance	$ 1,259	$ 5,949	$ 792	$ 1,232	$ 2,717	$ 547	$ 792
Revenue recognized that was included in contract liability balance at the beginning of the period	(1,259)	(5,949)	(792)	(1,232)	(2,717)	(547)
Increase due to cash received, excluding amounts recognized as revenue during the period	247	1,259	5,949	1,300	1,232	2,717
Ending Balance	247	1,259	5,949	1,300	1,232	2,717	247
Stored-Value Cards
Significant changes in the contract liabilities balances
Beginning Balance	5,687	4,922	4,973	4,692	4,675	4,605	4,973
Revenue recognized that was included in contract liability balance at the beginning of the period	(117)	(542)	(792)	(261)	(501)	(1,125)
Increase due to cash received, excluding amounts recognized as revenue during the period	924	1,307	741	407	518	1,195
Ending Balance	$ 6,494	$ 5,687	$ 4,922	$ 4,838	$ 4,692	$ 4,675	$ 6,494

Significant Accounting Policies - Selling and Marketing Expenses (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 03, 2021	Sep. 27, 2020	Oct. 03, 2021	Sep. 27, 2020
Selling and Marketing Expense.
Accounting Policies [Line Items]
Advertising costs	$ 13.9	$ 7.3	$ 34.0	$ 28.4

Significant Accounting Policies - Equity-Based Compensation (Details)	9 Months Ended
	Oct. 03, 2021 employee
Significant Accounting Policies
Number of employees	5
Vesting period	4 years

Significant Accounting Policies - Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - shares	9 Months Ended
	Oct. 03, 2021	Sep. 27, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	3,452,427	3,129,634
Series A convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	3,129,634	3,129,634
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	322,793

Balance Sheet Components - Prepaids and Other Current Assets (Details) - USD ($) $ in Thousands	Oct. 03, 2021	Jan. 03, 2021
Prepaids and Other Current Assets
Prepaid software subscriptions	$ 1,168	$ 897
Prepaid inventory and fulfillment supplies	540	483
Prepaid insurance	443	391
Prepaid rent	281	273
Deferred offering costs	1,653
Other	559	631
Prepaids and other current assets	$ 4,644	$ 2,675

Balance Sheet Components - Property and Equipment, net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2021	Sep. 27, 2020	Oct. 03, 2021	Sep. 27, 2020	Jan. 03, 2021
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 8,713		$ 8,713		$ 8,119
Less: accumulated depreciation and amortization	(5,959)		(5,959)		(5,029)
Property and equipment, net	2,754		2,754		3,090
Depreciation of property and equipment	300	$ 400	900	$ 1,200
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	3,774		3,774		3,647
Equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	2,980		2,980		2,595
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	1,849		1,849		1,849
Construction in progress
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 110		$ 110		$ 28

Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Oct. 03, 2021	Jan. 03, 2021
Accrued Expenses and Other Current Liabilities
Accrued compensation and benefits	$ 6,888	$ 2,932
Accrued debt amendment fees	917	917
Accrued marketing	6,774	495
Accrued interest	94	169
Sales tax payable	2,985	563
Accrued inventory	3,554	90
Other	5,652	2,367
Accrued expenses and other current liabilities	$ 26,864	$ 7,533

Debt - Outstanding Debt Under the Term Loan (Details) - USD ($) $ in Thousands	Oct. 03, 2021	Jan. 03, 2021
Debt Instrument [Line Items]
Total carrying value of long-term debt	$ 105,835
Less: Current portion of long-term debt	(103,393)	$ (10,125)
Long-term debt, net of current portion		96,856
Term Loan
Debt Instrument [Line Items]
Principal amount of debt	105,835	111,354
Less: Unamortized discount and debt issuance costs	(2,442)	(4,373)
Total carrying value of long-term debt	103,393	106,981
Less: Current portion of long-term debt	$ (103,393)	(10,125)
Long-term debt, net of current portion		$ 96,856

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Debt - Outstanding Debt under the Revolving Facility (Details) - Revolving credit facility - USD ($) $ in Thousands	Oct. 03, 2021	Jan. 03, 2021
Line of Credit Facility [Line Items]
Principal amount of debt		$ 8,580
Less: Unamortized debt issuance costs	$ (59)	(107)
Total carrying value of Revolving Facility		$ 8,473

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Debt - Future Minimum Payments of Principal on Outstanding Debt (Details) $ in Thousands	Oct. 03, 2021 USD ($)
Future minimum payments of principal on outstanding debt
2021 (remaining three months)	$ 2,531
2022	103,304
Total carrying value of long-term debt	$ 105,835

- Definition

+ References + Details

Debt - Additional Information (Details) - USD ($) $ in Thousands			1 Months Ended	3 Months Ended		9 Months Ended
	Apr. 30, 2021	Jun. 05, 2020	Mar. 31, 2021	Oct. 03, 2021	Sep. 27, 2020	Oct. 03, 2021	Sep. 27, 2020	Nov. 15, 2021	Jan. 03, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Aug. 31, 2017
Debt Instrument [Line Items]
Principal amount of credit facility								$ 50,000
Debt instrument amendment fee and other costs		$ 1,400
Line of credit repaid						$ 8,580
Effective interest rate						12.90%	13.30%
Accrued expenses and other current liabilities
Debt Instrument [Line Items]
Amendment fee payable				$ 900		$ 900			$ 900
Revolving credit facility
Debt Instrument [Line Items]
Principal amount of credit facility											$ 5,300		$ 10,000
Gain (loss) on debt modification	$ 0	$ 0
Variable rates				7.00%		7.00%
Line of credit repaid			$ 8,600
Effective interest rate				10.30%	10.30%	11.30%	10.30%
Credit facility outstanding				$ 0		$ 0
Line of credit remaining borrowing capacity				9,100		9,100
Minimum liquidity amounts				10,000		$ 10,000
Revolving credit facility \| Minimum
Debt Instrument [Line Items]
Amount of minimum liquidity covenant	2,500
Variable commitment fee percent						0.375%
Revolving credit facility \| Maximum
Debt Instrument [Line Items]
Amount of minimum liquidity covenant	$ 10,000
Variable commitment fee percent						0.50%
Revolving credit facility \| LIBOR \| Minimum
Debt Instrument [Line Items]
Debt instrument applicable margin percent		7.00%
Revolving credit facility \| LIBOR \| Maximum
Debt Instrument [Line Items]
Debt instrument applicable margin percent		8.50%
Revolving credit facility \| Base Rate \| Minimum
Debt Instrument [Line Items]
Debt instrument applicable margin percent		6.00%
Revolving credit facility \| Base Rate \| Maximum
Debt Instrument [Line Items]
Debt instrument applicable margin percent		7.50%
Letters of credit
Debt Instrument [Line Items]
Credit facility outstanding				900		$ 900
Term Loan
Debt Instrument [Line Items]
Principal amount													$ 135,000
Deferred debt principal payments										$ 7,500	$ 7,500	$ 7,500
ECF payments				$ 0		0
Debt instrument quarterly installment payments						$ 2,500
Effective interest rate				13.00%	12.90%
Term Loan \| LIBOR \| Minimum
Debt Instrument [Line Items]
Debt instrument applicable margin percent		9.00%
Term Loan \| LIBOR \| Maximum
Debt Instrument [Line Items]
Debt instrument applicable margin percent		9.50%
Term Loan \| Base Rate \| Minimum
Debt Instrument [Line Items]
Debt instrument applicable margin percent		8.00%
Term Loan \| Base Rate \| Maximum
Debt Instrument [Line Items]
Debt instrument applicable margin percent		8.50%

Commitments and Contingencies - Operating Leases (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Sep. 03, 2021	Oct. 03, 2021	Sep. 27, 2020	Oct. 03, 2021	Sep. 27, 2020	Dec. 01, 2021
Lease [Line Items]
Rental expense		$ 0.7	$ 0.8	$ 2.2	$ 2.3
Operating lease cost per month	$ 0.2
Operating Lease cost for the term	$ 15.7
Forecast
Lease [Line Items]
Lease term						7 years 2 months 12 days
Security deposit						$ 0.4

Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands	Oct. 03, 2021 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2021 (remaining three months)	$ 1,599
2022	4,733
2023	4,252
2024	3,879
2025	4,017
Thereafter	7,464
Total	$ 25,944

Preferred Stock - Outstanding Redeemable Preferred Stock and Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	Nov. 15, 2021	Oct. 03, 2021	Jan. 03, 2021
Temporary Equity [Line Items]
Liquidation Preference	$ 17,900
Preferred Stock.
Temporary Equity [Line Items]
Shares Authorized		13,129,636	10,629,636
Shares Issued		12,079,635	10,629,635
Shares Outstanding		12,079,635	10,629,635
Net Carrying Value		$ 136,358	$ 133,450
Liquidation Preference		$ 257,900	$ 255,000
Series A convertible preferred stock
Temporary Equity [Line Items]
Shares Authorized		3,129,635	3,129,635
Shares Issued		3,129,634	3,129,634
Shares Outstanding		3,129,634	3,129,634
Issuance Price Per Share		$ 38.34	$ 38.34
Net Carrying Value		$ 117,038	$ 117,038
Liquidation Preference		$ 240,000	$ 240,000
Redeemable Preferred Stock (Series B and B-1)
Temporary Equity [Line Items]
Shares Authorized		10,000,001	7,500,001
Shares Issued		8,950,001	7,500,001
Shares Outstanding		8,950,001	7,500,001
Issuance Price Per Share		$ 1.00	$ 1.00
Net Carrying Value		$ 19,320	$ 16,412
Liquidation Preference		$ 17,900	$ 15,000

Preferred Stock - Additional Information (Details) $ / shares in Units, $ in Thousands				9 Months Ended
	Mar. 31, 2021 USD ($) $ / shares shares	Feb. 28, 2021 item $ / shares	Jun. 30, 2020 USD ($) $ / shares shares	Oct. 03, 2021 USD ($) item installment $ / shares shares	Jan. 03, 2021 $ / shares shares
Temporary Equity [Line Items]
Common stock, shares authorized \| shares				24,000,000	21,196,740
Dividend declared \| $				$ 0
Dividend paid \| $				$ 0
Series A convertible preferred stock
Temporary Equity [Line Items]
Issuance price per share				$ 38.34	$ 38.34
Shares authorized \| shares				3,129,635	3,129,635
Number of directors entitled to be elected by common stockholders \| item				9
Number of directors entitled to be elected by preferred stockholders \| item				2
Stock conversion ratio				1
Minimum amount of gross proceeds required from IPO for automatic conversion convertible preferred stock \| $				$ 100,000
Series A convertible preferred stock \| On or after April 12, 2024
Temporary Equity [Line Items]
Percentage of share holders requesting redemption				50.00%
Temporary equity redemption maximum number of installments \| installment				2
Redemption Term				60 days
Redemption of temporary equity (as a percent)				50.00%
Interest rate of remaining shares to be redeemed				12.00%
Series A convertible preferred stock \| Maximum
Temporary Equity [Line Items]
Redemption Term				6 months
Redeemable Preferred Stock (Series B and B-1)
Temporary Equity [Line Items]
Issuance price per share				$ 1.00	$ 1.00
Shares authorized \| shares				10,000,001	7,500,001
Liquidation preference applicable factor				2.0
Redeemable Preferred Stock (Series B and B-1) \| Until August 28, 2022
Temporary Equity [Line Items]
Ratio of liquidation preference to original share price \| item				2
Original share price				$ 1.00
Redeemable Preferred Stock (Series B and B-1) \| From August 28, 2022
Temporary Equity [Line Items]
Ratio of liquidation preference to original share price \| item				2
Original share price				$ 1.00
Percentage of liquidation preference on original issue price				15.00%
Redeemable Preferred Stock (Series B and B-1) \| On or after April 12, 2024
Temporary Equity [Line Items]
Percentage of share holders requesting redemption				50.00%
Temporary equity redemption maximum number of installments \| installment				2
Redemption Term				60 days
Redemption of temporary equity (as a percent)				50.00%
Interest rate of remaining shares to be redeemed				12.00%
Redemption shares \| shares				0
Series B Redeemable Preferred Stock
Temporary Equity [Line Items]
Preferred stock issued and sold \| shares			7,500,001
Issuance price per share			$ 1.00	$ 1.00
Gross cash proceeds from issuance of preferred stock \| $			$ 7,500
Preferred stock issuance cost \| $			$ 200
Fair value of preferred stock			$ 2.21
Equity based compensation \| $			$ 8,600
Deemed dividend \| $			$ 500
Common stock, shares authorized \| shares	24,000,000
Liquidity term	3 years
Risk-free rate	0.21%
Expected volatility	72.00%
Series B Redeemable Preferred Stock \| Until August 28, 2022
Temporary Equity [Line Items]
Ratio of liquidation preference to original share price \| item		2
Original share price		$ 1.00
Series B Redeemable Preferred Stock \| From August 28, 2022
Temporary Equity [Line Items]
Ratio of liquidation preference to original share price \| item		2
Original share price		$ 1.00
Percentage of liquidation preference on original issue price		15.00%
Series B-1 Redeemable Preferred Stock
Temporary Equity [Line Items]
Preferred stock issued and sold \| shares	1,450,000
Issuance price per share	$ 1.00			$ 1.00
Gross cash proceeds from issuance of preferred stock \| $	$ 1,500
Fair value of preferred stock	$ 2.02
Equity based compensation \| $	$ 1,500
Shares authorized \| shares	2,500,000
Risk-free rate	0.11%
Expected volatility	78.00%
Series B-1 Redeemable Preferred Stock \| Minimum
Temporary Equity [Line Items]
Liquidity term	6 months
Series B-1 Redeemable Preferred Stock \| Maximum
Temporary Equity [Line Items]
Liquidity term	1 year 6 months

Common Stock (Details)	9 Months Ended
Common Stock (Details)	Oct. 03, 2021 Vote $ / shares shares	Jan. 03, 2021 $ / shares shares
Common stock, shares authorized	24,000,000	21,196,740
Common stock, par value \| $ / shares	$ 0.001	$ 0.001
Common stock, shares issued	17,462,283	17,462,283
Common stock, shares outstanding	17,462,283	17,462,283
Number of votes per common stock \| Vote	1
Dividends declared \| $ / shares	$ 0
Stock options
Common stock for issuance upon the exercise of stock options	322,793
Convertible Preferred Stock
Common stock for issuance upon the exercise of stock options	3,129,634	3,129,634

Equity-Based Compensation - 2021 Equity Plan (Details)	9 Months Ended
Equity-Based Compensation - 2021 Equity Plan (Details)	Oct. 03, 2021 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vesting period	4 years
2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant	602,207
Options vesting period	4 years
Options expiration period	10 years
2021 Equity Incentive Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum aggregate number of shares reserved for issuance	925,000

Equity-Based Compensation - CEO Stock Options and Special Compensation Awards (Details) - CEO $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Apr. 30, 2021 item $ / shares shares	Oct. 03, 2021 USD ($) item	Oct. 03, 2021 USD ($) item
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options grants in period \| shares	322,793
Stock option exercise price \| $ / shares	$ 11.35
Number of bonus available \| item	2	2	2
Value of each bonus available			$ 3.0
Aggregate value of bonus available			6.0
Equity based compensation		$ 1.2	2.2
Unrecognized equity-based compensation		$ 3.8	$ 3.8
Unrecognized equity-based compensation expected to be recognized period			1 year 1 month 2 days
Service vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options grants in period \| shares	275,133
Service and performance vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options grants in period \| shares	47,660

Equity-Based Compensation - Stock Option Activity (Details) - Stock options $ / shares in Units, $ in Thousands	9 Months Ended
	Oct. 03, 2021 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options Outstanding, Granted \| shares	322,793
Options Outstanding, Ending balance \| shares	322,793
Options Outstanding, Expected to vest \| shares	322,793
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted-Average Exercise Price per Option, Granted (in dollars per share)	$ 11.35
Weighted-Average Exercise Price per Option, Ending balance (in dollars per share)	11.35
Weighted-Average Exercise Price per Option, Expected to vest (in dollars per share)	$ 11.35
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted-Average Remaining Contractual Life (years)	9 years 6 months 14 days
Weighted-Average Remaining Contractual Life (years), Expected to vest	9 years 6 months 14 days
Aggregate Intrinsic Value \| $	$ 4,109
Aggregate Intrinsic Value, Expected to vest \| $	$ 4,109
Weighted-average grant-date fair value of options granted	$ 16.44

Equity-Based Compensation - Assumptions Used to Estimate the Fair Value of Options Granted (Details) - Stock options	9 Months Ended
	Oct. 03, 2021 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of common stock	$ 25.86
Expected term (in years)	6 years 5 months 23 days
Expected volatility	50.62%
Risk-free rate	1.17%
Dividend yield	0.00%

Equity-Based Compensation - Stock Options (Details) - Stock options $ in Millions	3 Months Ended	9 Months Ended
	Oct. 03, 2021 USD ($)	Oct. 03, 2021 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized equity-based compensation	$ 4.4	$ 4.4
Unrecognized equity-based compensation expected to be recognized period		3 years 5 months 26 days
Service vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation		$ 1.3
Service and performance vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation		0.6
General and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation	$ 0.3	$ 0.6

Equity-Based Compensation - Class P Units (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				9 Months Ended
	Oct. 03, 2021	Jul. 04, 2021	Jan. 03, 2021	Sep. 27, 2020	Oct. 03, 2021	Sep. 27, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vesting period					4 years
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized equity-based compensation	$ 4.4				$ 4.4
Weighted-average grant-date fair value of options granted					$ 16.44
Service vesting \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation					$ 1.3
Class P Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units outstanding	326,338				326,338
Unit grants in period			1,094,861
Options vesting period					4 years
Equity based compensation	$ 0.4			$ 0.2	$ 1.3	$ 8.6
Unrecognized equity-based compensation	$ 4.6				4.6
Weighted-average grant-date fair value of units granted	$ 7.22	$ 7.22	$ 4.54
Class P Units \| Performance Condition Not Met
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized equity-based compensation	$ 0.0			$ 0.0	0.0	$ 0.0
Class P Units \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized equity-based compensation	2.8				2.8
Class P Units \| Service vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units outstanding				1,858,210		1,858,210
Class P Units \| Performance vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units outstanding				384,522		384,522
Equity based compensation					2.4
Unrecognized equity-based compensation	$ 0.4				$ 0.4

Equity-Based Compensation - Pre-Vesting Distributions (Details) $ in Millions	9 Months Ended
	Oct. 03, 2021 USD ($) employee
Service vesting \| Performance Condition Not Met
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense for pre-vesting distributions	$ 0.0
Class P Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of employees terminated \| employee	1
Pre-vesting distributions forfeited	$ 0.5
Unrecognized compensation cost of pre-vesting distributions	0.3
Class P Units \| Service and performance vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-vesting distributions	2.9
Class P Units \| Performance vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense for pre-vesting distributions	$ 2.6

Equity-Based Compensation - Rollforward of Unvested Units (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Oct. 03, 2021 USD ($) $ / shares shares
Class P Units
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Unvested Units, Beginning balance \| shares	1,729,938
Unvested Units, Vested \| shares	(299,097)
Unvested Units, Forfeited \| shares	(58,184)
Unvested Units, Ending balance \| shares	1,372,657
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted-Average Fair Value per Unit, Beginning balance \| $ / shares	$ 5.33
Weighted-Average Fair Value per Unit, Vested \| $ / shares	4.43
Weighted-Average Fair Value per Unit, Forfeited \| $ / shares	8.45
Weighted-Average Fair Value per Unit, Ending balance \| $ / shares	$ 5.33
Unrecognized equity-based compensation \| $	$ 4.6
Unrecognized equity-based compensation expected to be recognized period	2 years 9 months 18 days
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Unrecognized equity-based compensation \| $	$ 4.4
Unrecognized equity-based compensation expected to be recognized period	3 years 5 months 26 days
Stock options \| Class P Units
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Unrecognized equity-based compensation \| $	$ 2.8

Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2021	Sep. 27, 2020	Oct. 03, 2021	Sep. 27, 2020
Income Taxes
Income (loss) before (provision) benefit for income taxes	$ 5,466	$ 131	$ 15,894	$ (14,965)
(Provision) benefit for income taxes	$ (1,616)	$ 246	$ (5,075)	$ (187)
Effective tax rate	(29.60%)	188.00%	(31.90%)	(1.20%)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=123384075&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Federal Income Tax Rate (Details)	3 Months Ended		9 Months Ended
Income Taxes - Federal Income Tax Rate (Details)	Oct. 03, 2021	Sep. 27, 2020	Oct. 03, 2021	Sep. 27, 2020
Income Taxes
Federal income tax rate	21.00%	21.00%	21.00%	21.00%

Related Party Transactions (Details) - USD ($)	3 Months Ended		9 Months Ended
Related Party Transactions (Details) - USD ($)	Oct. 03, 2021	Sep. 27, 2020	Oct. 03, 2021	Sep. 27, 2020	Jan. 03, 2021
Related Party Transaction [Line Items]
Advance from the LP				$ 37,000
Repayment of advance received				2,040,000
Rental expense	$ 700,000	$ 800,000	$ 2,200,000	2,300,000
Series B Redeemable Preferred Stock
Related Party Transaction [Line Items]
Equity based compensation				$ 500,000
Fair value per share				$ 2.21
Consideration per share				$ 1.00
Management and consulting fees
Related Party Transaction [Line Items]
Accrued liabilities, related party	1,100,000		1,100,000		$ 200,000
Accounts payable, related party	300,000		300,000		$ 800,000
LP
Related Party Transaction [Line Items]
Equity based compensation	400,000	200,000	1,300,000	$ 8,600,000
Advance from the LP				37,000
LP \| Class P Units
Related Party Transaction [Line Items]
Repayment of advance received				2,000,000.0
Payment of accrued interest				100,000
Entities related to current employees, board members and service providers \| Series B Redeemable Preferred Stock
Related Party Transaction [Line Items]
Equity based compensation				$ 8,600,000
Fair value per share				$ 2.21
Consideration per share				$ 1.00
Executives \| Series B-1 Redeemable Preferred Stock
Related Party Transaction [Line Items]
Equity based compensation			$ 1,500,000
Fair value per share			$ 2.02
Consideration per share			$ 1.00
HIG \| Management and consulting fees
Related Party Transaction [Line Items]
Expenses from transactions with related party	100,000	100,000	$ 400,000	$ 400,000
Other related parties \| Management and consulting fees
Related Party Transaction [Line Items]
Expenses from transactions with related party	100,000	100,000	300,000	300,000
Limited Partner and Series B Preferred Stockholder
Related Party Transaction [Line Items]
Rental expense	$ 12,115	$ 18,557	$ 36,345	$ 93,351

Subsequent Events (Details) $ / shares in Units, $ in Thousands			9 Months Ended
	Nov. 15, 2021 USD ($) item $ / shares shares	Nov. 14, 2021 shares	Oct. 03, 2021 USD ($) $ / shares shares	Sep. 27, 2020 USD ($)	Jan. 03, 2021 $ / shares shares	Jun. 05, 2020 USD ($)
Subsequent Event [Line Items]
Common stock, shares authorized \| shares			24,000,000		21,196,740
Common stock, par value \| $ / shares			$ 0.001		$ 0.001
Revolving line of credit	$ 50,000
Borrowed amount	25,000
Proceeds from issuance of preferred stock			$ 1,427	$ 7,337
Repayment of term loan			$ 7,595
Repayment of principal	105,800
Repayment of interest	$ 1,400
Debt issuance costs and debt discounts						$ 1,400
LP
Subsequent Event [Line Items]
Shares issued \| shares		215,702
Subsequent event
Subsequent Event [Line Items]
Common stock, shares authorized \| shares	250,000,000
Common stock, par value \| $ / shares	$ 0.001
Preferred stock, shares authorized \| shares	10,000,000
Preferred stock, par value \| $ / shares	$ 0.001
Subsequent event \| LP
Subsequent Event [Line Items]
Shares issued \| shares	17,677,985
Subsequent event \| Class P Units
Subsequent Event [Line Items]
Accelerate vesting shares \| shares	763,178
Number of senior executives, shares accelerated vesting \| item	2
Required service period after completion of IPO	12 months
Subsequent event \| Employee Stock Purchase Plan
Subsequent Event [Line Items]
Maximum aggregate number of shares reserved for issuance \| shares	743,803
Percentage of increase in shares reserved for issuance	1.00%
Discount in future offerings	15.00%
Subsequent event \| Restricted stock units \| CEO
Subsequent Event [Line Items]
Accelerate vesting shares \| shares	25,874
Number of shares granted \| shares	51,747
Number of common stock for each unit \| shares	1
Holding period after completion of IPO	12 months
Subsequent event \| Omnibus Equity Plan
Subsequent Event [Line Items]
Maximum aggregate number of shares reserved for issuance \| shares	3,719,000
Percentage of increase in shares reserved for issuance	4.00%
Subsequent event \| Term Loan
Subsequent Event [Line Items]
Repayment of term loan	$ 107,200
Repayment of principal	105,800
Repayment of interest	1,400
Prepayment penalties	0
Debt issuance costs and debt discounts	2,600
Debt costs forgiven	900
Subsequent event \| New revolving facility
Subsequent Event [Line Items]
Revolving line of credit	50,000
Borrowed amount	$ 25,000
Commitment fee percent	0.375%
Subsequent event \| New revolving facility \| Secured overnight financing ("SOFR") rate
Subsequent Event [Line Items]
Debt instrument applicable margin percent	1.75%
Subsequent event \| New revolving facility \| Base Rate
Subsequent Event [Line Items]
Debt instrument applicable margin percent	0.75%
Subsequent event \| New revolving facility \| Federal funds rate
Subsequent Event [Line Items]
Debt instrument applicable margin percent	0.50%
Subsequent event \| New revolving facility \| One month SOFR
Subsequent Event [Line Items]
Debt instrument applicable margin percent	1.00%