0001558370-22-009114 | 10-Q | XBRL Viewer | Lulus Fashion Lounge Holdings INC

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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Apr. 03, 2022	May 13, 2022
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Apr. 03, 2022
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, Address Line One	195 Humboldt Avenue
Entity Address, City or Town	Chico
Entity Address State Or Province	CA
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	Yes
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		38,832,567
Entity Central Index Key	0001780201
Current Fiscal Year End Date	--01-02
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 03, 2022	Jan. 02, 2022
Current assets:
Cash and cash equivalents	$ 19,433	$ 11,402
Accounts receivable	7,861	5,649
Inventory, net	42,068	22,176
Asset for recovery	6,682	3,754
Income tax refund receivable		748
Prepaids and other current assets	5,095	5,364
Total current assets	81,139	49,093
Restricted cash	506	506
Property and equipment, net	3,885	3,231
Goodwill	35,430	35,430
Tradename	18,509	18,509
Intangible assets, net	2,452	2,244
Lease right-of-use assets	30,914
Other noncurrent assets	5,365	4,763
Total assets	178,200	113,776
Current liabilities:
Accounts payable	11,343	4,227
Accrued expenses and other current liabilities	38,724	21,948
Returns reserve	20,005	9,731
Stored-value card liability	7,292	7,240
Lease liabilities, current	3,521
Total current liabilities	80,885	43,146
Revolving line of credit	15,000	25,000
Lease liabilities, noncurrent	28,467
Other noncurrent liabilities	64	1,108
Total liabilities	124,416	69,254
Commitments and Contingencies (Note 6)
Stockholders' equity:
Preferred stock: $0.001 par value, 10,000,000 shares authorized and no shares issued or outstanding as of April 3, 2022 and January 2, 2022.
Common stock: $0.001 par value, 250,000,000 shares authorized and 38,830,130 and 38,421,124 shares issued and outstanding as of April 3, 2022 and January 2, 2022, respectively	39	38
Additional paid-in capital	229,298	222,080
Accumulated deficit	(175,553)	(177,596)
Total stockholders' equity	53,784	44,522
Total liabilities and stockholders' equity	$ 178,200	$ 113,776

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Apr. 03, 2022	Jan. 02, 2022
Condensed Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock issued	0	0
Preferred stock outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	38,830,130	38,421,124
Common stock, shares outstanding	38,830,130	38,421,124

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
Net revenue	$ 111,902	$ 68,967
Cost of revenue	58,924	37,854
Gross profit	52,978	31,113
Selling and marketing expenses	21,886	13,435
General and administrative expenses	27,834	15,089
Income from operations	3,258	2,589
Other income (expense), net:
Interest expense	(208)	(3,807)
Other income, net	54	6
Total other expense, net	(154)	(3,801)
Income (loss) before provision for income taxes	3,104	(1,212)
Income tax provision	(1,061)	(163)
Net income (loss)	2,043	(1,375)
Comprehensive income (loss)	2,043	(1,375)
Net income (loss) attributable to common stockholders	$ 2,043	$ (1,375)
Net income (loss) per share attributable to common stockholder - Basic	$ 0.05	$ (0.08)
Net income (loss) per share attributable to common stockholder - Diluted	$ 0.05	$ (0.08)
Weighted average shares used to compute net income (loss) per share attributable to common stockholder - Basic	38,098,073	17,462,283
Weighted average shares used to compute net income (loss) per share attributable to common stockholder - Diluted	38,385,765	17,462,283

Condensed Consolidated Statements of Redeemable Preferred Stock, Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Common Stock.	Additional Paid-In Capital	Accumulated Deficit	Redeemable Preferred Stock	Convertible Preferred Stock	Total
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]
Equity-based compensation		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. 02, 2022	$ 38	222,080	(177,596)			44,522
Balance (in shares) at Jan. 02, 2022	38,421,124
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for vesting of restricted stock units (RSUs)	$ 1	(1)
Issuance of common stock for vesting of restricted stock units (RSUs) (shares)	228,387
Issuance of common stock for special compensation award (shares)	208,914
Shares withheld for withholding tax on RSUs		(265)				(265)
Shares withheld for withholding tax on RSUs (in shares)	(28,295)
Offering costs related to Initial Public Offering		(290)				(290)
Settlement of distributions payable to former Class P unit holders		2,648				2,648
Equity-based compensation		5,126				5,126
Net income (loss) and comprehensive income (loss)			2,043			2,043
Balance at Apr. 03, 2022	$ 39	$ 229,298	$ (175,553)			$ 53,784
Balance (in shares) at Apr. 03, 2022	38,830,130

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

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Cash Flows from Operating Activities
Net income (loss)	$ 2,043	$ (1,375)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	841	725
Noncash lease expense	789
Amortization of debt discount and debt issuance costs	40	671
Interest expense capitalized to principal of long-term debt and revolving line of credit		703
Equity-based compensation expense	5,758	1,913
Deferred income taxes	(554)	(1,407)
Changes in operating assets and liabilities:
Accounts receivable	(2,213)	(2,907)
Inventories	(19,892)	(5,939)
Asset for recovery	(2,928)	(3,083)
Income tax (receivable) payable	1,636	3,557
Prepaid and other current assets	(499)	(643)
Accounts payable	7,136	7,364
Accrued expenses and other current liabilities	28,554	17,324
Operating lease liabilities	7
Other noncurrent liabilities	(470)	(249)
Net cash provided by operating activities	20,248	16,654
Cash Flows from Investing Activities
Capitalized software development costs	(600)	(254)
Purchases of property and equipment	(976)	(169)
Other	(78)
Net cash used in investing activities	(1,654)	(423)
Cash Flows from Financing Activities
Repayments on revolving line of credit	(10,000)	(8,580)
Repayment of long-term debt		(2,532)
Proceeds from the issuance of redeemable preferred stock, net of issuance costs		1,427
Payment of offering costs related to Initial Public Offering	(542)
Other	(21)	(7)
Net cash used in financing activities	(10,563)	(9,692)
Net increase in cash, cash equivalents and restricted cash	8,031	6,539
Cash, cash equivalents and restricted cash at beginning of period	11,908	16,059
Cash, cash equivalents and restricted cash at end of period	19,939	22,598
Supplemental Disclosure
Cash refunded for income taxes, net of income tax taxes paid	(20)	(1,949)
Cash paid for interest	164	2,480
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Addition of right-of-use assets, including prepaid rent, net of deferred rent recorded upon adoption of ASC 842	28,018
Addition of lease liabilities recorded upon adoption of ASC 842	28,599
Assets acquired under finance lease obligations	3,763
Purchases of property and equipment included in accounts payable and accrued expenses	99	32
Shares withheld for withholding tax on restricted stock units	265
Offering costs included in accrued expenses	$ 290
Debt issuance costs included in accrued expenses		917
Paid-in-kind interest added to principal balance of long-term debt and revolving line of credit		$ 703

Description of Business, Organization and Liquidity

3 Months Ended

Apr. 03, 2022

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 was 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 $82.0 million from the IPO, after deducting underwriting discounts and commissions of approximately $6.1 million and other issuance costs of approximately $3.9 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.

Impact of COVID-19

The COVID-19 pandemic has had a material impact on the global fashion apparel, accessories and footwear industry as a significant portion of in-person social, professional, and formal events were postponed or cancelled in 2020. The Company’s business rebounded from the initial impact of the pandemic on consumer behavior. During the quarter ended April 3, 2022, the Company’s net revenue grew by 62%, compared to the same period of the prior year.

The Company expects the effects of the COVID-19 pandemic and related macro-economic trends, such as inflation, supply chain pressures and the emergence of new variants of COVID-19, to have a continued impact on its business, results of operations, and financial condition during fiscal 2022. The Company continues to take actions to adjust to the changing COVID-19 business environment and related inflationary and supply chain pressures, including placing orders earlier than pre-pandemic times, leveraging our “test, learn and reorder” approach to test small order quantities and then graduate successful styles to its re-order algorithms and diversifying our supply chain network to mitigate rising costs and service delays. Although the Company continues to face a challenging environment due to the COVID-19 pandemic, it has successfully implemented the aforementioned actions to help mitigate the impact on its business.

Significant Accounting Policies

3 Months Ended

Apr. 03, 2022

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 April 3, 2022 and its results of operations and cash flows for the quarters ended April 3, 2022 and April 4, 2021. The results of operations for the quarter ended April 3, 2022 are not necessarily indicative of the results to be expected for the fiscal year ending January 1, 2023 or for any other future annual or interim period.

The condensed consolidated balance sheet as of January 2, 2022 was derived from the Company’s audited consolidated financial statements, which are included in the Company’s Annual Report on Form 10-K filed with the SEC.

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 Company’s Annual Report on Form 10-K for the year ended January 2, 2022, except as noted below and within the "Adopted and Recently Issued Accounting Pronouncements" section.

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 asset for recovery, lease right-of-use assets and related lease liabilities, and income tax valuation allowance. 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.

Concentration of Credit Risks

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents and restricted cash. 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 April 3, 2022 and January 2, 2022, a single wholesale customer represented 15% and 24% respectively, of the Company’s accounts receivable balance. No customer accounted for greater than 10% of the Company’s net revenue during the quarters ended April 3, 2022 and April 4, 2021.

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):


	April 3,		January 2,
	2022		2022
Cash and cash equivalents	$	19,433	$	11,402
Restricted cash		506		506
Total cash and restricted cash	$	19,939	$	11,908

Leases

Prior to the adoption of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 842 on January 3, 2022

Leases were reviewed for classification as operating or capital leases. For operating leases, the Company recognized rent on a straight-line basis over the term of the lease. The Company recorded the difference between cash payments and rent expense recognized as a deferred rent liability included in other accrued and current liabilities and other noncurrent liabilities on the condensed consolidated balance sheets. Incentives granted under the Company’s facility leases, including allowances to fund leasehold improvements, were deferred and are recognized as adjustments to rental expense on a straight-line basis over the term of the lease. The Company changed its method of accounting for leases as of January 3, 2022 due to the adoption of FASB ASC 842, Leases (“ASC 842”).

Subsequent to the adoption of ASC 842 on January 3, 2022

Contracts that have been determined to convey the right to use an identified asset are evaluated for classification as an operating or finance lease. For the Company’s operating and finance leases, the Company records a lease liability based on the present value of the lease payments at lease inception. The present value of lease payments is determined by using the interest rate implicit in the lease, if that rate is readily determinable; otherwise, the Company uses its incremental borrowing rate (“IBR”). The determination of the IBR requires judgment and is primarily based on publicly-available information for companies within similar industries and with similar credit profiles. We adjust the rate for the impact of collateralization, the lease term and other specific terms included in each lease arrangement. The IBR is determined at the lease commencement and is subsequently reassessed upon a modification to the lease arrangement. The right-of-use asset is recorded based on the corresponding lease liability at lease inception, adjusted for payments made to the lessor at or before the commencement date, initial direct costs incurred and any tenant incentives allowed for under the lease. The Company does not include optional renewal terms or early termination provisions unless the Company is reasonably certain such options would be exercised at the inception of the lease. Lease right-of-use assets, current portion of lease liabilities, and lease liabilities, net of current portion are included on the condensed consolidated balance sheets.

Fixed lease expense for operating leases is recognized on a straight-line basis, unless the right-of-use assets have been impaired, over the reasonably assured lease term based on the total lease payments and is included in operating expenses in the condensed consolidated statements of operations and comprehensive income (loss). Fixed and variable lease expense on operating leases is recognized within operating expenses in the condensed consolidated statements of operations and comprehensive income (loss). Finance lease expenses are recognized on a straight-line basis. Fixed and variable expenses are captured within interest expense and depreciation expense, which has components within general and administrative

expenses and cost of revenue. The Company’s non-lease components are primarily related to maintenance, insurance and taxes, which varies based on future outcomes and is thus recognized in lease expense when incurred.

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 quarters ended April 3, 2022 and April 4, 2021 was not in either case 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 quarters ended April 3, 2022 and April 4, 2021 (in thousands):


	Deferred		Stored-Value
	Revenue		Cards
Balance as of January 2, 2022	$	145	$	7,240
Revenue recognized that was included in contract liability balance at the beginning of the period		(145)		(1,786)
Increase due to cash received, excluding amounts recognized as revenue during the period		315		1,838
Balance as of April 3, 2022	$	315	$	7,292


	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

Selling and Marketing Expenses

Advertising costs included in selling and marketing expenses were $16.9 and $9.9 million for the quarters ended April 3, 2022 and April 4, 2021 respectively.

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 considered its redeemable preferred stock and convertible preferred stock outstanding during fiscal 2021 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 quarters ended April 4, 2022 and April 3, 2021, basic net income (loss) per share attributable to common stockholders is computed using net income (loss) attributable to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share attributable to common stockholders represents net income (loss) attributable to common stockholders 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 stockholders are the same for the quarter ended April 4, 2021 since the inclusion of all potential shares of common stock outstanding would have been anti-dilutive.

The following table presents the calculation of basic and diluted weighted average shares used to compute net income (loss) per share attributable to common stockholders:


	Quarters Ended
	April 3, 2022	April 4, 2021
Weighted average shares used to compute net income (loss) per share attributable to common stockholders - Basic	38,098,073	17,462,283
Dilutive securities:
Unvested restricted stock awards	94,659	-
Restricted stock units	4,854	-
Special compensation awards	188,179	-
Weighted average shares used to compute net income (loss) per share attributable to common stockholders - Diluted	38,385,765	17,462,283

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


	Quarters Ended
	April 3, 2022	April 4, 2021
Series A convertible preferred stock	—	3,129,634
Stock options	322,793	—
Unvested restricted stock	234,169	—
Unvested restricted stock units	1,417,657	—
Total	1,974,619	3,129,634

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 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. Under the new lease standard, the Company determines if an arrangement is a lease at inception. Lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date if the rate implicit in the lease is not readily determinable. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record right-of-use assets and lease liabilities for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less may be accounted for similar to existing guidance for operating leases today and are not recorded on the Company’s

balance sheet. The Company adopted the new standard as of January 3, 2022 on a modified retrospective basis under the alternative transition method. The Company elected to take the practical expedient to not separate lease and non-lease components as part of the adoption. Lease agreements entered into after the adoption of Topic 842 that include lease and non-lease components are accounted for as a single lease component. Beginning on January 3, 2022, the Company’s operating leases, excluding those with terms less than 12 months, were discounted and recorded as assets and liabilities on the Company’s balance sheet. As of the effective date of adoption, the Company recognized lease right-of-use assets of $28.0 million, which included $0.4 million previously recorded as prepaid rent net of $1.0 million previously recorded as deferred rent, $2.2 million of current lease liabilities and $26.4 million in lease liabilities, net of current portion, related to its operating leases.

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 adopted this guidance on January 3, 2022, and it did not have a material impact on its condensed consolidated financial statements.

Recently Issued Accounting Pronouncements

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 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.

Fair Value Measurements

3 Months Ended

Apr. 03, 2022

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 April 3, 2022 and January 2, 2022, 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 value of the Company’s New Revolving Facility that provides for borrowings up to $50.0 million (see Note 5, Debt) approximates its carrying value as the stated interest rates reset daily at the daily secured overnight financing rate (“SOFR”) plus an applicable margin 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

3 Months Ended

Apr. 03, 2022

Balance Sheet Components

Balance Sheet Components

4.Balance Sheet Components

Property and Equipment, net

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


	Estimated Useful Lives	April 3,		January 2,
	in Years	2022		2022
Leasehold improvements	3-8	$	3,773	$	3,502
Equipment	3-7		3,598		3,278
Furniture and fixtures	3-7		2,160		2,123
Construction in progress			499		107
Total property and equipment			10,030		9,010
Less: accumulated depreciation and amortization			(6,145)		(5,779)
Property and equipment, net		$	3,885	$	3,231

Depreciation and amortization of property and equipment for the quarters ended April 3, 2022 and April 4, 2021 was $0.4 million and $0.3 million, respectively.

Accrued Expenses and Other Current Liabilities

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


	April 3,		January 2,
	2022		2022
Accrued compensation and benefits	$	5,885	$	8,136
Accrued distributions payable to former Class P unit holders		—		2,648
Accrued marketing		9,486		3,621
Accrued freight		3,548		1,523
Accrued inventory		12,468		2,928
Other		7,337		3,092
Accrued expenses and other current liabilities	$	38,724	$	21,948

Debt

3 Months Ended

Apr. 03, 2022

Debt

Debt

5.Debt

New Revolving Facility

During November 2021, the Company entered into a Credit Agreement with Bank of America (the “Credit Agreement”) to provide the New Revolving Facility that provides for borrowings up to $50.0 million. During the term of the Credit Agreement, the Company can increase the aggregate amount of the New Revolving Facility up to an additional $25.0 million (for maximum aggregate lender commitments of up to $75.0 million), subject to the satisfaction of certain conditions under the Credit Agreement, including obtaining the consent of the administrative agent and an increased commitment from existing or new lenders. In addition, the Credit Agreement may be used to issue letters of credit up to $7.5 million (“Letter of Credit”). During the quarter ended April 3, 2022, the Company repaid $10.0 million of the outstanding balance. The New Revolving Facility matures on November 15, 2024, while the Letter of Credit matures on November 8, 2024. As of April 3, 2022, the Company had $15.0 million outstanding and $35.0 million available for borrowing under the New Revolving Facility and $7.25 million available to issue letters of credit.

All borrowings under the Credit Agreement accrue interest at a rate equal to, at the Company’s option, either (x) the term daily SOFR, plus the applicable SOFR adjustment 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, taking into account the sum of outstanding borrowings and letter of credit obligations. As of April 3, 2022, the interest rate for the New Revolving Facility was 1.92% and during the quarter ended April 3, 2022, the effective interest rate for the New Revolving Facility was 2.6%.

Amounts borrowed under the Credit Agreement are collateralized by all assets of the Company and contains various financial and non-financial covenants for reporting, protecting and obtaining adequate insurance coverage for assets collateralized and for coverage of business operations, and complying with requirements, including the payment of all necessary taxes and fees for all federal, state and local government entities. Immediately upon the occurrence and during the continuance of an event of default, including the noncompliance with the above covenants, the lender may increase the interest rate per annum by 2.0% above the rate that would be otherwise applicable. As of April 3, 2022, management has determined that the Company was in compliance with all financial covenants.

Term Loan

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

During April 2021, the Company entered into the sixth amendment to the Credit Facility (“Sixth Amendment”), which: 1) Amended the minimum liquidity covenant from $2.5 million to $10.0 million, 2) Extended the due date for the 2020 audited consolidated financial statements to September 30, 2021, and 3) Upon receipt of proceeds from an IPO, Special Purpose Acquisition Company transaction, or other liquidity transaction that involves the equity of Lulus or its affiliates, the Company was required to pay off the outstanding obligations under the Credit Facility before any proceeds were utilized by the Company. There was no gain or loss arising from the Sixth Amendment as it was considered to be a debt modification.

During November 2021, the Company utilized the proceeds from the IPO and the New Revolving Facility to repay the $105.8 million of outstanding principal and $1.4 million of accrued interest related to the Term Loan. The Credit Facility was terminated on November 15, 2021 and no prepayment penalties were incurred.

The effective interest rate on the Term Loan was 12.8% for the quarter ended April 4, 2021.

Revolving Facility

Outstanding amounts under the Revolving Facility bore interest at variable rates with a minimum of 7.00%. The Revolving Facility was terminated on November 15, 2021. The effective interest rate for the Revolving Facility was 9.6% for the quarter ended April 4, 2021.

Debt Discounts and Issuance Costs

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 New Revolving Facility, which are included in other non-current assets in the condensed consolidated balance sheets. As of April 3, 2022 and January 2, 2022, unamortized debt issuance costs recorded within other non-current assets were $0.4 million and $0.4 million, respectively.

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


Fiscal Year Ending	Amounts
2022 (remaining nine months)	$	—
2023		—
2024		15,000
Total principal amount	$	15,000

- 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

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+ Details

Leases

3 Months Ended

Apr. 03, 2022

Leases

Leases

6.Leases

Subsequent to the adoption of ASC 842

On January 3, 2022, the Company adopted ASC 842 using the alternative transition method and applied the standard only to leases that existed at that date. Under the alternative transition method, the Company did need to restate the comparative periods in transition and will continue to present financial information and disclosures for periods before January 3, 2022 in accordance with FASB ASC 840, Leases. The Company elected the practical expedient package, which among other practical expedients, includes the option to retain the historical classification of leases entered into prior to January 3, 2022 and allows entities to recognize lease payments on a straight-line basis over the lease term for leases with a term of 12 months or less. The Company also elected the practical expedient to combine lease and non-lease components.

The Company is a lessee under various lease agreements. The determination of whether an arrangement contains a lease and the lease classification is made at lease commencement (date upon which the Company takes possession of the asset). At lease commencement, the Company also measures and recognizes a right-of-use asset, representing the Company’s right to use the underlying asset, and a lease liability, representing the Company’s obligation to make lease payments under the terms of the arrangement. The lease term is defined as the noncancelable portion of the lease term plus any periods covered by an option to extend the lease if it is reasonably certain that the option will be exercised. For the purposes of recognizing right-of-use assets and lease liabilities associated with the Company’s leases, the Company has elected the practical expedient of not recognizing a right-of-use asset or lease liability for short-term leases, which are leases with a term of twelve months or less. The Company has one finance lease and multiple operating leases that are combined and included in the lease right-of-use assets, lease liabilities, current, and lease liabilities, noncurrent on the Company's condensed consolidated balance sheets.

The Company primarily leases its distribution facilities and corporate offices under operating lease agreements expiring on various dates through December 2031, most of which contain options to extend. As of January 3, 2022, the Company had various operating leases with a lease term of less than 12 months for its office spaces. In addition to payment of base rent, the Company is also required to pay property taxes, insurance, and common area maintenance expenses. The Company records lease expense on a straight-line basis over the term of the lease. As of April 3, 2022, the Company had a remaining obligation for the base rent related to the short-term leases in the amount of $0.5 million.

The Company also leases equipment under one finance lease agreement commencing in 2022 that expires in March 2026.

As of April 3, 2022, the future minimum lease payments for the Company’s operating and finance leases for each of the fiscal years were as follows (in thousands):


Fiscal Year Ending:		Operating Leases	Finance Leases		Total
2022 (Remaining 9 months)	$	3,900	$	555	$	4,455
2023		3,899		946		4,845
2024		4,389		946		5,335
2025		4,545		946		5,491
2026		5,051		195		5,246
Thereafter		15,133		—		15,133
Total undiscounted lease payment		36,917		3,588		40,505
Present value adjustment		(8,319)		(198)		(8,517)
Total lease liabilities		28,598		3,390		31,988
Less: lease liabilities, current		2,860		661		3,521
Lease liabilities, noncurrent	$	25,738	$	2,729	$	28,467

Under the terms of the remaining lease agreements, the Company is also responsible for certain variable lease payments that are not included in the measurement of the lease liability, including non-lease components such as common area maintenance fees, taxes, and insurance.

The following information represents supplemental disclosure of lease costs, components of the statement of cash flows related to operating and finance leases and components of right-of-use assets (in thousands):


	Quarter Ended
	April 3,
	2022
Lease cost
Finance lease cost
Amortization of ROU assets	$	78
Interest on lease liabilities		8
Operating lease cost		1,107
Short-term lease cost		208
Variable lease cost		180
Total lease cost	$	1,581

Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	510
Operating cash flows from finance leases	$	—
Financing cash flows from finance leases	$	—

Weighted-average remaining lease term - finance leases		47 months
Weighted-average remaining lease term - operating leases		97 months
Weighted-average remaining discount rate - finance leases		3.00%
Weighted-average remaining discount rate - operating leases		6.50%

Prior to the adoption of ASC 842

Rent expense for non-cancelable operating leases was $0.7 million for the quarter ended April 4, 2021 and was included within general and administrative expenses in the condensed consolidated statements of operations and comprehensive income (loss).

Future minimum lease payments under non-cancelable operating leases as of January 2, 2022 were as follows (in

thousands):


Fiscal Year Ending:		Amounts
2022	$	4,899
2023		4,263
2024		3,879
2025		4,017
2026		2,427
Thereafter		5,037
Total	$	24,522

Commitments and Contingencies

3 Months Ended

Apr. 03, 2022

Commitments and Contingencies.

Commitments and Contingencies

7.Commitments and Contingencies

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 April 3, 2022, 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

3 Months Ended

Apr. 03, 2022

Preferred Stock

Preferred Stock

8.Preferred Stock

Pursuant to the Company’s amended and restated certificate of incorporation, the Company is authorized to issue 10,000,000 shares of preferred stock having a par value of $0.001 per share. The Company’s board of directors has the authority to issue preferred stock and to determine the rights, preferences, privileges, and restrictions, including voting rights, of those shares. As of April 3, 2022 and January 2, 2022, no shares of preferred stock were issued and outstanding. In connection with the Company’s IPO, all convertible preferred stock was converted to the Company’s common stock.

Series B-1 Redeemable Preferred Stock Issuance

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.

Common Stock

3 Months Ended

Apr. 03, 2022

Common Stock

Common Stock

9.Common Stock

The Company has authorized the issuance of 250,000,000 shares of common stock with a $0.001 par value as of April 3, 2022 and January 2, 2022. As of April 3, 2022 and January 2, 2022, there were 38,830,130 and 38,421,124 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 April 3, 2022, the Company has reserved 322,793 shares of common stock for issuance upon the exercise of stock options, 208,914 shares of common stock to settle the CEO Special Compensation Awards in March 2023, and 3,942,167 shares of common stock for future issuance under the equity plans described in Note 10, Equity-Based Compensation.

- 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.

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-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Equity-Based Compensation

3 Months Ended

Apr. 03, 2022

Equity-Based Compensation

Equity-Based Compensation

10.Equity-Based Compensation

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 Incentive Plan (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 the first day of each fiscal year, starting in 2022 and continuing through 2031, by a number of shares 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 fiscal year or (b) such smaller number of shares as determined by the Company’s board of directors.

On April 1, 2022, the Company filed a Registration Statement on Form S-8 (the “Form S-8”) with the SEC for the purpose of registering an aggregate of 5,921,056 shares of the Company’s common stock, consisting of 4,736,845 shares of common stock issuable pursuant to the Omnibus Equity Plan and 1,184,211 shares of common stock issuable pursuant to the ESPP. Under the Omnibus Equity Plan, the Company had 2,757,956 shares available for grant as of April 3, 2022. The compensation committee of the Company’s board of directors (the “compensation committee”) administers the Omnibus Equity Plan and determines to whom awards will be granted, the exercise price of any options, the rates at which awards vest and the other terms and conditions of the awards granted under the Omnibus Equity Plan. The compensation committee may or may not issue the full number of shares that are reserved for issuance.

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, which was subsequently increased to 1,184,211 per the Form S-8. The number of shares of common stock reserved for issuance under the ESPP will automatically increase on the first day of each fiscal year beginning in 2022 and ending in 2031, by a number of shares 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 fiscal year or (b) such smaller number of shares as determined by the Company’s board of directors. No offerings have commenced under the ESPP, nor have any shares been issued under it.

2021 Equity Plan

In April 2021, the Company’s board of directors adopted the 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 was 925,000 shares. The options outstanding under the 2021 Equity Plan expire ten years from the date of grant. The Company issues new common 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

In 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 initially concluded that the two bonuses are subject to the guidance within ASC 718 and, were liability-classified upon issuance. Upon the completion of the IPO, the two bonuses became equity-classified as they no longer met the criteria for liability classification. 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 quarter ended April 3, 2022, the Company recognized equity-based compensation related to the two bonuses of $1.1 million. During the quarter ended April 3, 2022, the Company issued 208,914 fully-vested shares upon satisfaction of the service performed through March 31, 2022. Upon completion of the service by the CEO, the Company will issue 208,914 fully-vested shares on March 31, 2023.

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 2, 2022	322,793	$	11.35	9.29		—
Granted	—		—	—
Outstanding as of April 3, 2022	322,793	$	11.35	9.04	$	—
Exercisable as of April 3, 2022	161,397	$	11.35	9.04	$	—
Vested and expected to vest as of April 3, 2022	322,793	$	11.35	9.04	$	—

There were no options granted during the quarters ended April 3, 2022 or April 4, 2021.

During the quarter ended April 3, 2022, equity-based compensation expense of $0.3 million, was recorded to general and administrative expense related to the stock options, respectively. As of April 3, 2022, total unrecognized compensation cost related to unvested stock options was $2.0 million, which is expected to be recognized over a weighted average remaining service period of 2.0 years.

Class P Units

384,522 of the outstanding Class P units included both a service condition and a performance condition, while the remainder of the Class P units only included a service condition. The performance-based vesting condition was satisfied upon completion of the IPO. Equity-based compensation expense of $0.4 million related to the Class P units was recorded to general and administrative expense in the condensed consolidated statements of operations and comprehensive income (loss) for the quarter ended April 4, 2021.

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 12-month period. The Company concluded that the amendment to the Class P units was a modification under ASC 718 and there was no incremental equity-based compensation expense to recognize. With the completion of the Company’s IPO, the remaining unrecognized expense associated with the restricted stock, received in exchange at the IPO for the modified Class P units, is being recognized over the subsequent 12-month period through November 2022.

Class P Distributions

With the completion of the IPO, the performance condition for the distributions related to the Class P units was met and the Company recognized a cumulative catch-up to equity-based compensation. Such amounts payable to the former Class P unit holders (“FCPUs”) were included in accrued expenses and other current liabilities as of January 2, 2022. The distributions payable to the FCPUs were determined to be settled in the quarter ended April 3, 2022 as a result of agreements reached with the FCPUs, and were recorded as an increase to additional paid-in capital as such amounts were related to the shares of common stock received by the FCPUs as part of the liquidation of the LP in November 2021. The agreements provide for payments to the FCPUs of up to $0.6 million (if future sales of shares of common stock held by the FCPUs during 2022 occur at a price less than the threshold stated in the agreements), which were recorded as equity-based compensation expense in the quarter ended April 3, 2022 and in accrued expenses and other current liabilities as of April 3, 2022.

Restricted Stock and Restricted Stock Units

Immediately before the completion of the IPO, the LP was liquidated and the Class P unit holders of the LP received shares of the Company’s common stock in exchange for their units of the LP. The Class P unit holders received 1,964,103 shares of common stock, comprised of 1,536,304 shares of vested common stock and 427,799 shares of unvested restricted stock. Any such shares of restricted 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. The Company recorded equity-based compensation expense of $0.8 million during the quarter ended April 3, 2022 related to the exchanged restricted stock. As of April 3, 2022, the unrecognized equity-based compensation expense for all restricted stock is $3.4 million and will be recognized over a weighted-average period of 1.44 years.

During the quarter ended April 3, 2022, the Company granted 1,897,644 RSUs to certain executives and employees which vest over a two- or three- year service period, and 81,245 RSUs to certain directors which vest over a six-month to three-year service period. The Company recognized equity-based compensation expense of $2.1 million during the quarter ended April 3, 2022 related to the RSUs. The unrecognized equity-based compensation expense is $16.0 million and will be recognized over a weighted-average period of 1.83 years.


		Weighted-
	Restricted	Average Fair
	Stock	Value per Share
Balance at January 2, 2022	381,612	$	5.39
Restricted stock granted	—		—
Restricted stock vested	(58,830)		5.44
Restricted stock forfeited	—		—
Balance at April 3, 2022	322,782	$	5.38

	Unvested	Weighted-
	Restricted	Average Fair
	Stock Units	Value per Share
Balance at January 2, 2022	—
Restricted stock units granted	1,978,889	$	9.55
Restricted stock units vested	(228,387)		10.09
Restricted stock units forfeited	—		—
Balance at April 3, 2022	1,750,502	$	9.48

Income Taxes

3 Months Ended

Apr. 03, 2022

Income Taxes

Income Taxes

11.Income Taxes

Beginning in fiscal 2022, the Company’s quarterly tax provision is calculated using an estimated annual effective tax rate (“ETR”), adjusted for discrete items arising in the period. In each quarter, this estimated annual ETR is updated, and a year-to-date calculation of the provision is made. Prior to fiscal 2022, the Company’s quarterly tax provision was calculated using a discrete approach, as allowed by FASB ASC 740, Income Taxes. The discrete method was previously applied when it was not possible to reliably estimate the annual effective tax rate.

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):


	Quarters ended
	April 3,			April 4,
	2022			2021
Income (loss) before provision for income taxes	$	3,104		$	(1,212)
Income tax provision		(1,061)			(163)
Effective tax rate		(34.18)	%		13.45	%

The Company’s effective tax rate for the quarter ended April 3, 2022 differs from the federal income tax rate of 21% primarily due to state taxes, non-deductible executive compensation, and non-deductible equity-based compensation expenses.

The Company’s effective tax rate for the quarter ended April 4, 2021 differs from the federal income tax rate of 21% primarily due to 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Related Party Transactions

3 Months Ended

Apr. 03, 2022

Related Party Transactions

Related Party Transactions

12.Related Party Transactions

Significant Shareholders

The Company identified three shareholders with aggregate ownership interest in the Company greater than 10%. The Company reviewed the respective investment portfolio holdings of these shareholders and identified investments in other entities that the Company engages in business with. All of these business relationships were obtained without the support of these shareholders, and as such, are believed to be at terms comparable to those that would be obtained through arm’s length dealings with unrelated third parties.

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 redeemable preferred stock, convertible preferred stock and stockholders’ equity (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 during the quarter ended April 4, 2021.

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 quarter ended April 4, 2021.

Significant Accounting Policies (Policies)

3 Months Ended

Apr. 03, 2022

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

Concentration of Credit Risks

Cash, Cash Equivalents and Restricted Cash


	April 3,		January 2,
	2022		2022
Cash and cash equivalents	$	19,433	$	11,402
Restricted cash		506		506
Total cash and restricted cash	$	19,939	$	11,908

Leases

Prior to the adoption of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 842 on January 3, 2022

Subsequent to the adoption of ASC 842 on January 3, 2022

Revenue Recognition

The following table summarizes the significant changes in the contract liabilities balances during the quarters ended April 3, 2022 and April 4, 2021 (in thousands):


	Deferred		Stored-Value
	Revenue		Cards
Balance as of January 2, 2022	$	145	$	7,240
Revenue recognized that was included in contract liability balance at the beginning of the period		(145)		(1,786)
Increase due to cash received, excluding amounts recognized as revenue during the period		315		1,838
Balance as of April 3, 2022	$	315	$	7,292


	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

Selling and Marketing Expenses

Advertising costs included in selling and marketing expenses were $16.9 and $9.9 million for the quarters ended April 3, 2022 and April 4, 2021 respectively.

Net Income (Loss) Per Share Attributable to Common Stockholders

The following table presents the calculation of basic and diluted weighted average shares used to compute net income (loss) per share attributable to common stockholders:


	Quarters Ended
	April 3, 2022	April 4, 2021
Weighted average shares used to compute net income (loss) per share attributable to common stockholders - Basic	38,098,073	17,462,283
Dilutive securities:
Unvested restricted stock awards	94,659	-
Restricted stock units	4,854	-
Special compensation awards	188,179	-
Weighted average shares used to compute net income (loss) per share attributable to common stockholders - Diluted	38,385,765	17,462,283


	Quarters Ended
	April 3, 2022	April 4, 2021
Series A convertible preferred stock	—	3,129,634
Stock options	322,793	—
Unvested restricted stock	234,169	—
Unvested restricted stock units	1,417,657	—
Total	1,974,619	3,129,634

Recently Adopted and Issued Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

Significant Accounting Policies (Tables)

3 Months Ended

Apr. 03, 2022

Significant Accounting Policies

Reconciliation of cash, cash equivalents and restricted cash


	April 3,		January 2,
	2022		2022
Cash and cash equivalents	$	19,433	$	11,402
Restricted cash		506		506
Total cash and restricted cash	$	19,939	$	11,908

Summary of significant changes in contract liabilities balances

The following table summarizes the significant changes in the contract liabilities balances during the quarters ended April 3, 2022 and April 4, 2021 (in thousands):


	Deferred		Stored-Value
	Revenue		Cards
Balance as of January 2, 2022	$	145	$	7,240
Revenue recognized that was included in contract liability balance at the beginning of the period		(145)		(1,786)
Increase due to cash received, excluding amounts recognized as revenue during the period		315		1,838
Balance as of April 3, 2022	$	315	$	7,292


	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

Schedule of basic and diluted weighted average shares used to compute net income (loss) per share


	Quarters Ended
	April 3, 2022	April 4, 2021
Weighted average shares used to compute net income (loss) per share attributable to common stockholders - Basic	38,098,073	17,462,283
Dilutive securities:
Unvested restricted stock awards	94,659	-
Restricted stock units	4,854	-
Special compensation awards	188,179	-
Weighted average shares used to compute net income (loss) per share attributable to common stockholders - Diluted	38,385,765	17,462,283

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


	Quarters Ended
	April 3, 2022	April 4, 2021
Series A convertible preferred stock	—	3,129,634
Stock options	322,793	—
Unvested restricted stock	234,169	—
Unvested restricted stock units	1,417,657	—
Total	1,974,619	3,129,634

Balance Sheet Components (Tables)

3 Months Ended

Apr. 03, 2022

Balance Sheet Components

Schedule of property and equipment, net

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


	Estimated Useful Lives	April 3,		January 2,
	in Years	2022		2022
Leasehold improvements	3-8	$	3,773	$	3,502
Equipment	3-7		3,598		3,278
Furniture and fixtures	3-7		2,160		2,123
Construction in progress			499		107
Total property and equipment			10,030		9,010
Less: accumulated depreciation and amortization			(6,145)		(5,779)
Property and equipment, net		$	3,885	$	3,231

Schedule of accrued expenses and other current liabilities

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


	April 3,		January 2,
	2022		2022
Accrued compensation and benefits	$	5,885	$	8,136
Accrued distributions payable to former Class P unit holders		—		2,648
Accrued marketing		9,486		3,621
Accrued freight		3,548		1,523
Accrued inventory		12,468		2,928
Other		7,337		3,092
Accrued expenses and other current liabilities	$	38,724	$	21,948

Debt (Tables)

3 Months Ended

Apr. 03, 2022

Debt

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
2022 (remaining nine months)	$	—
2023		—
2024		15,000
Total principal amount	$	15,000

Leases (Tables)

3 Months Ended

Apr. 03, 2022

Leases

Schedule of future minimum lease payments for the Company's operating and financing lease


Fiscal Year Ending:		Operating Leases	Finance Leases		Total
2022 (Remaining 9 months)	$	3,900	$	555	$	4,455
2023		3,899		946		4,845
2024		4,389		946		5,335
2025		4,545		946		5,491
2026		5,051		195		5,246
Thereafter		15,133		—		15,133
Total undiscounted lease payment		36,917		3,588		40,505
Present value adjustment		(8,319)		(198)		(8,517)
Total lease liabilities		28,598		3,390		31,988
Less: lease liabilities, current		2,860		661		3,521
Lease liabilities, noncurrent	$	25,738	$	2,729	$	28,467

Schedule of supplemental disclosure of lease costs and other information


	Quarter Ended
	April 3,
	2022
Lease cost
Finance lease cost
Amortization of ROU assets	$	78
Interest on lease liabilities		8
Operating lease cost		1,107
Short-term lease cost		208
Variable lease cost		180
Total lease cost	$	1,581

Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	510
Operating cash flows from finance leases	$	—
Financing cash flows from finance leases	$	—

Weighted-average remaining lease term - finance leases		47 months
Weighted-average remaining lease term - operating leases		97 months
Weighted-average remaining discount rate - finance leases		3.00%
Weighted-average remaining discount rate - operating leases		6.50%

Schedule of future minimum lease payments under non-cancelable operating leases

Future minimum lease payments under non-cancelable operating leases as of January 2, 2022 were as follows (in

thousands):


Fiscal Year Ending:		Amounts
2022	$	4,899
2023		4,263
2024		3,879
2025		4,017
2026		2,427
Thereafter		5,037
Total	$	24,522

Equity-Based Compensation (Tables)

3 Months Ended

Apr. 03, 2022

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 2, 2022	322,793	$	11.35	9.29		—
Granted	—		—	—
Outstanding as of April 3, 2022	322,793	$	11.35	9.04	$	—
Exercisable as of April 3, 2022	161,397	$	11.35	9.04	$	—
Vested and expected to vest as of April 3, 2022	322,793	$	11.35	9.04	$	—

Summary of restricted stock and restricted stock units


		Weighted-
	Restricted	Average Fair
	Stock	Value per Share
Balance at January 2, 2022	381,612	$	5.39
Restricted stock granted	—		—
Restricted stock vested	(58,830)		5.44
Restricted stock forfeited	—		—
Balance at April 3, 2022	322,782	$	5.38

	Unvested	Weighted-
	Restricted	Average Fair
	Stock Units	Value per Share
Balance at January 2, 2022	—
Restricted stock units granted	1,978,889	$	9.55
Restricted stock units vested	(228,387)		10.09
Restricted stock units forfeited	—		—
Balance at April 3, 2022	1,750,502	$	9.48

Income Taxes (Tables)

3 Months Ended

Apr. 03, 2022

Income Taxes

Schedule of components of the provision for income taxes


	Quarters ended
	April 3,			April 4,
	2022			2021
Income (loss) before provision for income taxes	$	3,104		$	(1,212)
Income tax provision		(1,061)			(163)
Effective tax rate		(34.18)	%		13.45	%

Description of Business, Organization and Liquidity (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended
	Nov. 15, 2021	Nov. 14, 2021	Apr. 03, 2022	Dec. 31, 2014
Subsidiary, Sale of Stock [Line Items]
Acquired percentage of outstanding common stock of subsidiary by LP				100.00%
Underwriting discounts and commissions			$ 542
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
COVID-19
Subsidiary, Sale of Stock [Line Items]
Percentage of increase in revenue			62.00%
LP
Subsidiary, Sale of Stock [Line Items]
Issuance of common stock (in shares)		215,702
IPO
Subsidiary, Sale of Stock [Line Items]
Issuance of common stock (in shares)	5,750,000
Share price	$ 16.00
Net proceeds	$ 82,000
Underwriting discounts and commissions	6,100
Other issuance costs	$ 3,900

Significant Accounting Policies - Concentration of Credit Risks (Details) - Customer concentration risk - customer	3 Months Ended	12 Months Ended
	Apr. 03, 2022	Jan. 02, 2022	Apr. 04, 2021
Accounts receivable \| Single wholesale customer
Concentration Risk [Line Items]
Concentration risk percentage	15.00%	24.00%
Revenue \| Maximum
Concentration Risk [Line Items]
Number of customers	0		0

Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash And Accounts Receivable (Details) - USD ($) $ in Thousands	Apr. 03, 2022	Jan. 02, 2022	Apr. 04, 2021	Jan. 03, 2021
Significant Accounting Policies
Cash and cash equivalents	$ 19,433	$ 11,402
Restricted cash	506	506
Total cash and restricted cash	$ 19,939	$ 11,908	$ 22,598	$ 16,059

Significant Accounting Policies - Revenue Recognition (Details) $ in Thousands	3 Months Ended
	Apr. 03, 2022 USD ($) item	Apr. 04, 2021 USD ($)
Disaggregation of Revenue [Line Items]
Number of performance obligation \| item	1
Practical expedient	true
Number of contractual liabilities \| item	2
Maximum
Disaggregation of Revenue [Line Items]
Revenue duration period	36 months
Deferred Revenue
Significant changes in the contract liabilities balances
Beginning Balance	$ 145	$ 792
Revenue recognized that was included in contract liability balance at the beginning of the period	(145)	(792)
Increase due to cash received, excluding amounts recognized as revenue during the period	315	5,949
Ending Balance	315	5,949
Stored-Value Cards
Significant changes in the contract liabilities balances
Beginning Balance	7,240	4,973
Revenue recognized that was included in contract liability balance at the beginning of the period	(1,786)	(792)
Increase due to cash received, excluding amounts recognized as revenue during the period	1,838	741
Ending Balance	$ 7,292	$ 4,922

Significant Accounting Policies - Selling and Marketing Expenses (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Selling and Marketing Expense.
Accounting Policies [Line Items]
Advertising costs	$ 16.9	$ 9.9

Significant Accounting Policies - Basic and diluted weighted average shares (Details) - shares	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted average shares used to compute net income (loss) per share attributable to common stockholder - Basic	38,098,073	17,462,283
Dilutive securities:
Weighted average shares used to compute net income (loss) per share attributable to common stockholder - Diluted	38,385,765	17,462,283
Unvested restricted stock
Dilutive securities:
Dilutive securities	94,659
Restricted stock units
Dilutive securities:
Dilutive securities	4,854
Special compensation awards
Dilutive securities:
Dilutive securities	188,179

Significant Accounting Policies - Anti-dilutive securities (Details) - shares	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	1,974,619	3,129,634
Series A convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total		3,129,634
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	322,793
Unvested restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	234,169
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	1,417,657

Significant Accounting Policies - Recent Pronouncements (Details) - USD ($) $ in Thousands	Apr. 03, 2022	Jan. 03, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Operating lease liability current	$ 2,860
Operating lease liability non-current	$ 25,738
Accounting Standards Update 2016-02
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Right-of-use assets		$ 28,000
Prepaid rent		400
Deferred rent		1,000
Operating lease liability current		2,200
Operating lease liability non-current		$ 26,400

Fair Value Measurements (Details) - USD ($) $ in Millions	Apr. 03, 2022	Jan. 02, 2022	Aug. 17, 2017
Revolving credit facility
Fair Value Measurements
Revolving line of credit	$ 50.0	$ 50.0	$ 10.0

Balance Sheet Components - Property and Equipment, net (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021	Jan. 02, 2022
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 10,030		$ 9,010
Less: accumulated depreciation and amortization	(6,145)		(5,779)
Property and equipment, net	3,885		3,231
Depreciation of property and equipment	400	$ 300
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 3,773		3,502
Leasehold improvements \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (in years)	3 years
Leasehold improvements \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (in years)	8 years
Equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 3,598		3,278
Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (in years)	3 years
Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (in years)	7 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 2,160		2,123
Furniture and fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (in years)	3 years
Furniture and fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (in years)	7 years
Construction in progress
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 499		$ 107

Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Apr. 03, 2022	Jan. 02, 2022
Accrued Expenses and Other Current Liabilities
Accrued compensation and benefits	$ 5,885	$ 8,136
Accrued distributions payable to former Class P unit holders		2,648
Accrued marketing	9,486	3,621
Accrued freight	3,548	1,523
Accrued inventory	12,468	2,928
Other	7,337	3,092
Accrued expenses and other current liabilities	$ 38,724	$ 21,948

Debt - Outstanding Debt under the New Revolving Facility (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended
	Nov. 15, 2021	Nov. 30, 2021	Apr. 03, 2022	Apr. 04, 2021
Line of Credit Facility [Line Items]
Repaid outstanding balance			$ 10,000	$ 8,580
Effective interest rate				9.60%
New Revolving Credit Facility
Line of Credit Facility [Line Items]
Revolving line of credit		$ 50,000	35,000
Increase in maximum borrowing capacity amount		25,000
Credit facility outstanding			15,000
Repaid outstanding balance			$ 10,000
Variable commitment fee percent	0.375%
Interest rate at period end			1.92%
Effective interest rate			2.60%
Expected increase in interest rate per annum			2.00%
New Revolving Credit Facility \| Maximum
Line of Credit Facility [Line Items]
Revolving line of credit		75,000
New Revolving Credit Facility \| Secured overnight financing ("SOFR") rate
Line of Credit Facility [Line Items]
Debt instrument applicable margin percent	1.75%
New Revolving Credit Facility \| Base Rate
Line of Credit Facility [Line Items]
Debt instrument applicable margin percent	0.75%
New Revolving Credit Facility \| Federal funds rate
Line of Credit Facility [Line Items]
Debt instrument applicable margin percent	0.50%
New Revolving Credit Facility \| One month SOFR
Line of Credit Facility [Line Items]
Debt instrument applicable margin percent	1.00%
Letters of credit
Line of Credit Facility [Line Items]
Revolving line of credit		$ 7,500	$ 7,250

Debt - Outstanding Debt Under the Term Loan (Details) - USD ($) $ in Thousands		1 Months Ended
	Nov. 15, 2021	Apr. 30, 2021	Apr. 03, 2022	Jan. 02, 2022	Apr. 04, 2021	Aug. 17, 2017
Debt Instrument [Line Items]
Total carrying value of long-term debt			$ 15,000
Revolving credit facility
Debt Instrument [Line Items]
Revolving line of credit			$ 50,000	$ 50,000		$ 10,000
Gain (loss) on debt modification		$ 0
Revolving credit facility \| Minimum
Debt Instrument [Line Items]
Amount of minimum liquidity covenant		2,500
Revolving credit facility \| Maximum
Debt Instrument [Line Items]
Amount of minimum liquidity covenant		$ 10,000
Term Loan
Debt Instrument [Line Items]
Principal amount						$ 135,000
Repayment of principal	$ 105,800
Repayment of interest	1,400
Prepayment penalties	$ 0
Debt instrument effective interest rate					12.80%

Debt - Outstanding Debt under the Revolving Facility (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Line of Credit Facility [Line Items]
Line of credit repaid	$ 10,000	$ 8,580
Effective interest rate		9.60%
Revolving credit facility \| Minimum
Line of Credit Facility [Line Items]
Variable rates	7.00%

Debt - Debt Discounts and Issuance Costs (Details) - USD ($) $ in Millions	Apr. 03, 2022	Jan. 02, 2022
Other noncurrent assets
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ 0.4	$ 0.4

Debt - Future Minimum Payments of Principal on Outstanding Debt (Details) $ in Thousands	Apr. 03, 2022 USD ($)
Future minimum payments of principal on outstanding debt
2024	$ 15,000
Total carrying value of long-term debt	$ 15,000

- 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

Leases (Details) $ in Millions	3 Months Ended
Leases (Details) $ in Millions	Apr. 03, 2022 USD ($) lease
Leases
Number of finance leases \| lease	1
Operating lease weighted average remaining lease term	97 months
Operating lease weighted average incremental borrowing rate	6.50%
Remaining obligations for short-term leases \| $	$ 0.5
Finance lease weighted average remaining lease term	47 months
Finance lease weighted average incremental borrowing rate	3.00%

Leases - Future Minimum Lease Payments (Details) $ in Thousands	Apr. 03, 2022 USD ($)
Operating Leases
2022 (Remaining 9 months)	$ 3,900
2023	3,899
2024	4,389
2025	4,545
2026	5,051
Thereafter	15,133
Total undiscounted lease payment	36,917
Present value adjustment	(8,319)
Total lease liabilities	28,598
Less: lease liabilities, current	$ 2,860
Operating lease liability current balance sheet position	Lease liabilities, current
Lease liabilities, noncurrent	$ 25,738
Operating lease liability non-current balance sheet position	Lease liabilities, noncurrent
Finance Leases
2022 (Remaining 9 months)	$ 555
2023	946
2024	946
2025	946
2026	195
Total undiscounted lease payment	3,588
Present value adjustment	(198)
Total lease liabilities	3,390
Less: lease liabilities, current	$ 661
Finance lease liability current balance sheet position	Lease liabilities, current
Lease liabilities, noncurrent	$ 2,729
Finance lease liability non-current balance sheet position	Lease liabilities, noncurrent
Total operating and finance lease liabilities
2022 (Remaining 9 months)	$ 4,455
2023	4,845
2024	5,335
2025	5,491
2026	5,246
Thereafter	15,133
Total undiscounted lease payment	40,505
Present value adjustment	(8,517)
Total lease liabilities	31,988
Less: lease liabilities, current	3,521
Lease liabilities, noncurrent	$ 28,467

Leases - Lease Cost and Other Information (Details) $ in Thousands	3 Months Ended
	Apr. 03, 2022 USD ($)
Lease cost
Amortization of ROU assets	$ 78
Interest on lease liabilities	8
Operating lease cost	1,107
Short-term lease cost	208
Variable lease cost	180
Total lease cost	1,581
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	510
Right-of-use assets obtained in exchange for new finance lease liabilities	$ 3,763
Finance lease weighted average remaining lease term	47 months
Operating lease weighted average remaining lease term	97 months
Finance lease weighted average remaining discount rate	3.00%
Operating lease weighted average remaining discount rate	6.50%

Leases - Prior to the adoption of ASC 842 (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2021	Jan. 02, 2022
Leases
Rent expenses	$ 700
Future minimum lease payments
2022		$ 4,899
2023		4,263
2024		3,879
2025		4,017
2026		2,427
Thereafter		5,037
Total		$ 24,522

Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Mar. 31, 2021	Apr. 03, 2022	Jan. 02, 2022
Temporary Equity [Line Items]
Preferred stock, shares authorized		10,000,000	10,000,000
Preferred stock, par value (in dollars per share)		$ 0.001	$ 0.001
Preferred stock issued		0	0
Preferred stock outstanding		0	0
Common stock, shares authorized		250,000,000	250,000,000
Series B Redeemable Preferred Stock
Temporary Equity [Line Items]
Common stock, shares authorized	24,000,000
Series B-1 Redeemable Preferred Stock
Temporary Equity [Line Items]
Preferred stock issued and sold	1,450,000
Issuance price per share	$ 1.00
Gross cash proceeds from issuance of preferred stock	$ 1.5
Fair value of preferred stock	$ 2.02
Equity based compensation	$ 1.5
Shares authorized	2,500,000

Common Stock (Details)	3 Months Ended
Common Stock (Details)	Apr. 03, 2022 Vote $ / shares shares	Jan. 02, 2022 $ / shares shares
Common stock, shares authorized	250,000,000	250,000,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001
Common stock, shares issued	38,830,130	38,421,124
Common stock, shares outstanding	38,830,130	38,421,124
Number of votes per common stock \| Vote	1
Dividends declared \| $ / shares	$ 0
Common stock for issuance upon the exercise of stock options	3,942,167
CEO
Common stock for issuance upon the exercise of stock options	208,914
Convertible Preferred Stock
Common stock for issuance upon the exercise of stock options	322,793

Equity-Based Compensation - Omnibus Equity Plan and ESPP (Details) - shares	Nov. 15, 2021	Apr. 03, 2022	Apr. 01, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate shares registered			5,921,056
Maximum aggregate number of shares reserved for issuance		3,942,167
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum aggregate number of shares reserved for issuance	743,803		1,184,211
Percentage of increase in shares reserved for issuance	1.00%
Discount in future offerings	15.00%
Omnibus Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum aggregate number of shares reserved for issuance	3,719,000		4,736,845
Percentage of increase in shares reserved for issuance	4.00%
Shares available for grant		2,757,956

Equity-Based Compensation - 2021 Equity Plan (Details)	3 Months Ended
Equity-Based Compensation - 2021 Equity Plan (Details)	Apr. 03, 2022 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum aggregate number of shares reserved for issuance	3,942,167
2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum aggregate number of shares reserved for issuance	925,000
Options expiration period	10 years

Equity-Based Compensation - CEO Stock Options and Special Compensation Awards (Details) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended
	Apr. 30, 2021 $ / shares shares	Apr. 03, 2022 USD ($) item shares	Apr. 04, 2021 shares	Nov. 15, 2021 item
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options grants in period		0	0
Unrecognized equity-based compensation \| $		$ 2.0
Unrecognized equity-based compensation expected to be recognized period		2 years
CEO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options grants in period	322,793
Stock option exercise price \| $ / shares	$ 11.35
Number of bonus available \| item		2
Value of each bonus available \| $		$ 3.0
Aggregate value of bonus available \| $		6.0
Equity based compensation \| $		$ 1.1
Equity-based compensation (in shares)		208,914
CEO \| IPO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of bonus available \| item				2
CEO \| Service vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options grants in period	275,133
CEO \| Service and performance vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options grants in period	47,660

Equity-Based Compensation - Stock Option Activity (Details) - Stock options - $ / shares	3 Months Ended		12 Months Ended
	Apr. 03, 2022	Apr. 04, 2021	Jan. 02, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options Outstanding, Beginning balance	322,793
Options Outstanding, Granted	0	0
Options Outstanding, Ending balance	322,793		322,793
Options Outstanding, Vested and exercisable	161,397
Options Outstanding, Expected to vest	322,793
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted-Average Exercise Price per Option, Beginning balance (in dollars per share)	$ 11.35
Weighted-Average Exercise Price per Option, Ending balance (in dollars per share)	11.35		$ 11.35
Weighted-Average Exercise Price per Option, Vested and exercisable (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 14 days		9 years 3 months 14 days
Weighted-Average Remaining Contractual Life (years), Vested and exercisable	9 years 14 days
Weighted-Average Remaining Contractual Life (years), Expected to vest	9 years 14 days

Equity-Based Compensation - Stock Options (Details) - Stock options $ in Millions	3 Months Ended
	Apr. 03, 2022 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized equity-based compensation	$ 2.0
Unrecognized equity-based compensation expected to be recognized period	2 years
General and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation	$ 0.3

Equity-Based Compensation - Class P Units (Details) $ in Millions	1 Months Ended	3 Months Ended	6 Months Ended
	Oct. 31, 2021 employee shares	Apr. 04, 2021 USD ($) shares	Sep. 30, 2020	Apr. 03, 2022 USD ($)
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized equity-based compensation \| $				$ 2.0
Class P Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units outstanding \| shares		384,522
Equity based compensation \| $		$ 0.4
Accelerate vesting shares \| shares	763,178
Number of senior executives, shares accelerated vesting \| employee	2
Required service period after completion of IPO			12 months

Equity-Based Compensation - Class P Distributions (Details) $ in Millions	3 Months Ended
	Apr. 03, 2022 USD ($)
Distribution Class P Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 0.6

Equity-Based Compensation - Restricted Stock (Details) - USD ($) $ in Millions		3 Months Ended
	Nov. 15, 2021	Apr. 03, 2022	Jan. 02, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Converted from class P units of the Company upon LP liquidation	1,964,103
Vested common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Converted from class P units of the Company upon LP liquidation	1,536,304
Unvested restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Converted from class P units of the Company upon LP liquidation	427,799
Equity based compensation		$ 0.8
Restricted shares outstanding		322,782	381,612
Unvested restricted stock \| Service vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized equity based compensation		$ 3.4
Unrecognized equity-based compensation expected to be recognized period		1 year 5 months 8 days
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation		$ 2.1
Unrecognized equity-based compensation expense		$ 16.0
Unrecognized equity-based compensation expected to be recognized period		1 year 9 months 29 days
Restricted stock units \| Executives and Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted		1,897,644
Restricted stock units \| Executives and Employees \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		2 years
Restricted stock units \| Executives and Employees \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
Restricted stock units \| Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted		81,245
Restricted stock units \| Directors \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		6 months
Restricted stock units \| Directors \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years

Equity-Based Compensation - Summary of Restricted Stock and Restricted Stock Units (Details) - $ / shares		3 Months Ended
	Nov. 15, 2021	Apr. 03, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Converted from class P units of the Company upon LP liquidation	1,964,103
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Balance at the beginning of period		381,612
Converted from class P units of the Company upon LP liquidation	427,799
Restricted stock vested		(58,830)
Balance at the end of period		322,782
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted average fair value, beginning		$ 5.39
Weighted average fair value, vested		5.44
Weighted average fair value, end		$ 5.38
Unvested Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Restricted stock granted		1,978,889
Restricted stock vested		(228,387)
Balance at the end of period		1,750,502
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted average fair value, granted		$ 9.55
Weighted average fair value, vested		10.09
Weighted average fair value, end		$ 9.48

Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2022	Apr. 04, 2021
Income Taxes
Income (loss) before provision for income taxes	$ 3,104	$ (1,212)
Income tax provision	$ (1,061)	$ (163)
Effective tax rate	(34.18%)	13.45%

- 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
Income Taxes - Federal Income Tax Rate (Details)	Apr. 03, 2022	Apr. 04, 2021
Income Taxes
Federal income tax rate	21.00%	21.00%

Related Party Transactions (Details) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended
	Mar. 31, 2021 USD ($)	Apr. 03, 2022 item	Apr. 04, 2021 USD ($) $ / shares
Related Party Transaction [Line Items]
Shareholders with ownership interest greater than 10% \| item		3
Aggregate ownership interest		10.00%
Series B-1 Redeemable Preferred Stock
Related Party Transaction [Line Items]
Equity based compensation	$ 1.5
Class P Units
Related Party Transaction [Line Items]
Equity based compensation			$ 0.4
Transaction with LP
Related Party Transaction [Line Items]
Equity based compensation			0.4
Executives \| Series B-1 Redeemable Preferred Stock
Related Party Transaction [Line Items]
Equity based compensation			$ 1.5
Fair value per share \| $ / shares			$ 2.02
Consideration per share \| $ / shares			$ 1.00