Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.22.1
Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Apr. 02, 2022
Accounting Policies [Abstract]  
Schedule of Property and Equipment
The estimated useful lives for each major depreciable classification of property and equipment are as follows
Manufacturing machinery and equipment
3-7 years
Office furniture and equipment
3-7 years
Vehicles
3-10 years
Leasehold improvements
3-20 years
Property, equipment, and other fixed assets as of April 2, 2022 and January 1, 2022 are as follows:
April 2, January 1,
2022 2022
Land $ 4,501  $ 4,501 
Manufacturing machinery and equipment
 36,099  35,688 
Leasehold improvements
 4,873  4,599 
Construction in progress
 4,974  3,571 
Other 13,939  13,287 
$ 64,386  $ 61,646 
Less accumulated depreciation
 (21,802) (20,039)
$ 42,584  $ 41,607 
Schedule of Allowance for Credit Loss
The summary of activity in the allowance for credit losses for the three months ended April 2, 2022 and March 27, 2021 are as follows:

Three Months Ended April 2, 2022
Beginning Balance ASC 326 Impact Write-offs
Provision (Reversal)
 Ending Balance
Allowance for credit losses
 5,449  366  (1,017) 975  5,773 

Three Months Ended March 27, 2021
Beginning Balance Recoveries Write-offs
Provision (Reversal)
 Ending Balance
Allowance for credit losses
 4,485  —  —  (597) 3,888 

(1) On January 2, 2022, the Company adopted the provisions of ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326), which introduced a new model known as CECL.
Accounting Standards Update and Change in Accounting Principle The Company adopted this standard effective January 2, 2022 using the modified retrospective method and recognized a cumulative-effect adjustment increasing accumulated deficit and increasing the allowance for credit losses by $366.
January 2, 2022
Pre-ASC 326
Adoption		  Impact of ASC
326 Adoption 		As Reported
Under ASC 326
Accounts Receivable, net 107,372  (366) 107,006 
Cost in Excess of Billings 23,121  —  23,121 
Accumulated Deficit (8,578) (366) (8,944)