0001437749-22-027278 | 10-Q | XBRL Viewer

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1.	Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies

Holley Inc., a Delaware corporation headquartered in Bowling Green, Kentucky (the “Company” or “Holley”), conducts operations through its wholly-owned subsidiaries. These operating subsidiaries are comprised of Holley Performance Products Inc. (“Holley Performance”), Hot Rod Brands, Inc. (“Hot Rod Brands”), Simpson Safety Solutions, Inc., B&M Racing and Performance Products, Inc., and Speedshop.com, Inc.

On July 16, 2021, (the “Closing” and such date, the “Closing Date”) the Company consummated the business combination (the “Business Combination”) pursuant to that certain Agreement and Plan of Merger dated March 11, 2021 (the “Merger Agreement”), by and among Empower Ltd., (“Empower”), Empower Merger Sub I Inc. (“Merger Sub I”), Empower Merger Sub II LLC (“Merger Sub II”), and Holley Intermediate Holdings, Inc. (“Holley Intermediate”). On the Closing Date, Empower changed its name to Holley Inc. See Note 2, “Business Combination and Acquisitions,” for more information.

Holley Intermediate, the predecessor to Holley, was incorporated on October 25, 2018 to effect the merger of Driven Performance Brands, Inc. (“Driven”) and the purchase of High Performance Industries, Inc. (“HPI”). The Company designs, manufactures and distributes performance automotive products to customers primarily in the United States, Canada and Europe. The Company is a leading manufacturer of a diversified line of performance automotive products, including carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners and automotive performance plumbing products. The Company is also a leading manufacturer of exhaust products as well as shifters, converters, transmission kits, transmissions, tuners and automotive software. The Company’s products are designed to enhance street, off-road, recreational and competitive vehicle performance through increased horsepower, torque and drivability. The Company has locations in North America, Canada, Italy and China.

Emerging Growth Company Status

Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company is an emerging growth company, and, as such, has elected to take advantage of the benefits of the extended transition period for new or revised financial accounting standards.

Risks and Uncertainties

COVID-19 has adversely impacted global supply chain and general economic conditions. The Company has continued to experience disruptions and higher costs in manufacturing, supply chain, logistical operations, and shortages of certain Company products in distribution channels. The full extent of COVID-19's effect on the Company's operational and financial performance in the future will depend on future developments, including but not limited to the duration, spread, intensity and phase of the pandemic in various countries; the emergence of COVID-19 variants and the utilization and effectiveness of treatments and vaccines against these variants; the further impact of COVID-19 on the global economy; and demand for the Company's products and services. Should the ongoing COVID-19 pandemic not improve, or worsen, or if the Company's attempt to mitigate its impact on its supply chain, operations and costs is not successful, the Company's business, results of operations, and financial condition may be adversely affected.

The Company's business and results of operations, financial condition, and liquidity are impacted by broad economic conditions including inflation, labor shortages, and disruption of the supply chain, as well as by geopolitical events, specifically the conflict in Ukraine. The Company's operations have been adversely impacted by inflationary pressures primarily related to transportation, labor and component costs. Sales growth in certain products has been constrained by continuing supply chain challenges and automotive electronic component shortages. In response to the global supply chain volatility and inflationary impacts, the Company has attempted to minimize potential adverse impacts on its business with cost savings initiatives, price increases to customers, and by increasing inventory levels of certain products and working closely with its suppliers and customers to minimize disruptions in delivering products to customers. Should the ongoing macroeconomic conditions not improve, or worsen, or if the Company's attempt to mitigate the impact on its supply chain, operations and costs is not successful, the Company’s business, results of operations and financial condition may be adversely affected.

9

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP" or “GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2021, as filed with the SEC on March 15, 2022 in the Company’s annual report on Form 10-K. In management’s opinion, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal and recurring nature, that are necessary for a fair presentation of financial results for the interim periods presented. Operating results for any quarter are not necessarily indicative of the results for the full fiscal year.

The Company operates on a calendar year that ends on December 31, 2022 and 2021. The three and nine month periods ended October 2, 2022 and September 26, 2021 each included 13 weeks and 39 weeks, respectively.

Principles of Consolidation

These unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and accounts have been eliminated in consolidation.

Summary of Significant Accounting Policies

The following are updates to the significant accounting policies described in our audited consolidated financial statements as of and for the year ended December 31, 2021.

Leases

Operating lease right of use ("ROU") assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. The Company's leases may include options to extend or terminate the lease. These options to extend are included in the lease term when it is reasonably certain that the Company will exercise that option. Some leases have variable payments, however, because they are not based on an index or rate, they are not included in the ROU assets and liabilities. Variable payments for real estate leases primarily relate to common area maintenance, insurance, taxes and utilities. Since the Company's leases generally do not provide an implicit rate, the Company applies a portfolio approach using an estimated incremental borrowing rate based on the lease term and other information available at the commencement date in determining the present value of lease payments. The rate applied is based on the currency of the lease. Leases having a lease term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the term of the lease. In addition, the Company has applied the practical expedient to account for the lease and non-lease components as a single lease component for all of the Company's leases. See Note 14, "Lease Commitments," for further details.

Warrants

The Company accounts for warrants to purchase its common stock as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

If a warrant does not meet the conditions for equity classification, it is carried in the consolidated balance sheet as a warrant liability measured at fair value, with subsequent changes in the fair value of the warrant recorded in the consolidated statements of comprehensive income as a non-operating expense. If a warrant meets both conditions for equity classification, the warrant is initially recorded in additional paid-in capital on the consolidated balance sheet, and the amount initially recorded is not subsequently re-measured at fair value. See Note 7, "Common Stock Warrants," and Note 8, "Fair Value Measurements," for further details.

Recent Accounting Pronouncements

Accounting Standards Recently Adopted

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) which requires lessees to recognize right-of-use assets, representing their right to use the underlying asset for the lease term, and lease liabilities on the balance sheet for all leases with terms greater than 12 months. The Company adopted the provisions of this guidance effective January 1, 2022, using the modified retrospective optional transition method. Therefore, the standard was applied beginning January 1, 2022 and prior periods were not restated. The adoption of the standard did not result in a cumulative-effect adjustment to the opening balance of retained earnings. The Company elected the package of practical expedients and implemented internal controls and executed changes to business processes to enable the preparation of financial information upon adoption. The adoption of the new standard resulted in the recognition of a right of use asset and short-term and long-term liabilities recorded on the Company's consolidated balance sheet related to operating leases. In addition, the adoption of the standard did not have a material impact on the Company's results of operations or cash flows. See Note 14, "Lease Commitments," for further details.

In August 2018, the FASB issued ASU 2018-14, Compensation – Retirements Benefits – Defined Benefit Plans – General (Subtopic 715-20). The ASU will update disclosure requirements for employers that sponsor defined benefit pension or other post retirement plans. The Company adopted ASU 2019-12 on a retrospective basis as of January 1, 2022. Adoption did not result in a significant change to the Company's consolidated financial statement disclosures.

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) which is intended to simplify various aspects related to accounting for income taxes. The ASU removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The Company adopted ASU 2019-12 on a prospective basis as of January 1, 2022. Adoption of the ASU did not have a material effect on the Company's consolidated financial statements.

In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (Subtopic 470-20). ASU 2020-06 eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. The new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. The Company adopted ASU 2020-06 on January 1, 2022. Adoption of the ASU did not impact the Company's consolidated financial statements.

Accounting Standards Not Yet Adopted

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU requires entities to apply the definition of a performance obligation under ASC Topic 606 to recognize and measure contract assets and contract liabilities (i.e., deferred revenue) relating to contracts with customers that are acquired in a business combination. Under current U.S. GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU No. 2021-08 will result in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under ASC Topic 606. Adoption of the provisions of ASU 2021-08 are effective for the Company's fiscal year beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the potential impact of adopting this guidance on its consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). The ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. Adoption of the provisions of ASU 2020-04 are optional and are effective from March 12, 2020 through December 31, 2022. As of October 2, 2022, the Company did not adopt any expedients or exceptions under ASU 2020-04. The Company will continue to evaluate the impact of ASU 2020-04 and whether it will apply the optional expedients and exceptions.

Note 2 - Business Combination and Acquisitions

9 Months Ended

Oct. 02, 2022

Business Combination Disclosure [Text Block]

2.	BUSINESS COMBINATION AND ACQUISITIONS

BUSINESS COMBINATION

On July 16, 2021, Holley consummated the Business Combination pursuant to the terms of the Merger Agreement, whereby (i) Merger Sub I, a direct wholly owned subsidiary of Empower, merged with and into Holley Intermediate, with Holley Intermediate surviving such merger as a wholly owned subsidiary of Holley (“Merger I”) and (ii) Merger Sub II, a direct wholly owned subsidiary of Empower, merged with and into Holley Intermediate, with Merger Sub II surviving such merger as a wholly owned subsidiary of Holley (“Merger II”).

Pursuant to the Merger Agreement, at the Closing, all outstanding shares of Holley Intermediate common stock as of immediately prior to the effective time of Merger I were cancelled and Holley Parent Holdings, LLC, the sole stockholder of Holley Intermediate (the “Holley Stockholder” or “Parent”), received $264,718 in cash and 67,673,884 shares of common stock (at a deemed value of $10.00 per share). The Company’s common stock is listed on the New York Stock Exchange (the "NYSE") under the symbol “HLLY.”

In connection with the Business Combination, a number of subscribers purchased from the Company an aggregate of 24,000,000 shares of common stock (the “PIPE”), for a purchase price of $10.00 per share, or $240,000 in the aggregate. Per the Merger Agreement, $100,000 of the PIPE proceeds were used to partially pay off Holley’s debt.

Pursuant to the Amended and Restated Forward Purchase Agreement (“A&R FPA”), at the Closing, 5,000,000 shares of the Company’s common stock and 1,666,667 warrants were issued to certain investors for an aggregate purchase price of $50,000. Pursuant to the A&R FPA, each warrant entitles the holder to purchase one share of the Company’s common stock at a price of $11.50 per share (the ”Public Warrants”), subject to certain conditions.

The Company also assumed 8,333,310 Public Warrants and 4,666,667 private placement warrants (the “Private Warrants”, and together with the Public Warrants, the “Warrants”) upon the Business Combination, all of which were issued in connection with Empower’s initial public offering. Each Warrant represents the right to purchase one share of the Company’s common stock at a price of $11.50 per share, subject to certain conditions. The Warrants became exercisable on October 9, 2021 (the one-year anniversary of Empower’s initial public offering) and expire on July 16, 2026 (five years after the Closing Date). The Public Warrants are listed on the NYSE under the symbol “HLLY WS.”

Additionally, Empower Sponsor Holdings LLC (the "Sponsor") received 2,187,500 shares of the Company’s common stock, which vest in two equal tranches upon achieving certain market share price milestones as outlined in the Merger Agreement during the earn-out period (“the “Earn-Out Shares”). The first tranche of Earn-Out Shares vested during the first quarter of 2022. Upon vesting, the first tranche of the Earn-Out Shares, or 1,093,750 shares, were issued and a liability of $14,689, representing the fair value of the shares on the date of vesting, was reclassified from liabilities to equity. The remaining tranche of Earn-Out Shares will be forfeited if the applicable conditions are not satisfied before July 16, 2028 (seven years after the Closing Date). The remaining Earn-Out Shares are classified as a liability on the condensed consolidated balance sheet and are remeasured at fair value with changes in the post-Business Combination fair value recognized in the Company’s condensed consolidated statement of comprehensive income as non-operating expense.

The Business Combination was accounted for as a reverse recapitalization in accordance with U.S. GAAP. This determination was primarily based on current shareholders of Holley having a relative majority of the voting power of the Company, the operations of Holley prior to the acquisition comprising the only ongoing operations of the Company, and senior management of Holley comprising the majority of the senior management of the Company. Under this method of accounting, Empower was treated as the acquired company for financial reporting. Accordingly, the Business Combination was accounted for as the equivalent of Holley issuing stock for the net assets of Empower, accompanied by a recapitalization. The net assets of Empower are stated at historical cost, with no goodwill or other intangible assets recorded. Reported amounts from operations included herein prior to the Business Combination are those of Holley Intermediate. The shares and corresponding capital amounts and earnings per share, prior to the Business Combination, have been retroactively restated based on shares received by the Holley Stockholder.

ACQUISITIONS

During the 39-week period ended October 2, 2022, the Company has completed three acquisitions, and during the year ended December 31, 2021, the Company completed eight acquisitions. These acquisitions are expected to enhance the Company's portfolio of products and services in the automotive aftermarket and automotive safety solutions market.

The Company accounts for acquisitions using the acquisition method, and accordingly, the purchase price has been allocated based upon the fair value of the assets acquired and liabilities assumed. The valuation of the assets acquired and liabilities assumed is subject to revision. If additional information becomes available, the Company may further revise the purchase price allocation as soon as practical, but no later than one year from the acquisition date; however, material changes are not expected. Goodwill generated by the acquisitions is primarily attributable to the strong market position of the entities acquired.

Purchase price consideration for all acquisitions was paid primarily in cash. All acquisitions were for 100 percent of the acquired business and are reported in the Consolidated Statements of Cash Flows, net of acquired cash and cash equivalents. Acquisition-related costs, including advisory, legal, accounting, valuation and other costs, are typically expensed in the periods in which the costs are incurred and are recorded in acquisition and restructuring costs. The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date.

During the 39-week period ended October 2, 2022, the Company acquired substantially all the assets of John's Ind., Inc. ("John's"), Southern Kentucky Classics ("SKC"), and Vesta Motorsports USA, Inc., doing business as RaceQuip ("RaceQuip"). These acquisitions were immaterial business combinations. Cash paid for the three acquisitions, net of cash acquired, was $13,778, and was funded with borrowings from the Company's credit facility and cash on hand. The acquisitions resulted in both amortizable and nonamortizable intangibles and goodwill totaling $9,018. The goodwill and intangibles generated as a result of these acquisitions are deductible for income tax purposes. The final allocation of the purchase price to specific assets acquired and liabilities assumed may change in future periods as the fair value estimates of inventory and intangibles are completed.

The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:

	2022 (as initially reported)			Measurement Period Adjustments			2022 (as adjusted)
Accounts receivable	$	959		$	(397	)	$	562
Inventory		3,481			1,681			5,162
Property, plant and equipment		275			—			275
Other assets		1,132			(1,108	)		24
Tradenames		1,689			—			1,689
Customer relationships		1,512			—			1,512
Goodwill		5,858			(41	)		5,817
Accounts payable		(25	)		(133	)		(158	)
Accrued liabilities		(1,103	)		(2	)		(1,105	)
	$	13,778		$	—		$	13,778

The fair value of the acquired customer relationship intangible asset was estimated using the excess earnings approach. The customer relationship intangible asset is being amortized based on the attrition rate of customers which was determined to be 20 years. The fair value of the acquired tradenames intangible asset was estimated using the relief from royalty method, a form of the income approach. The tradenames were determined to have an indefinite life.

In 2021, the Company acquired substantially all the assets of Finspeed, LLC ("Finspeed"), Classic Instruments LLC ("Classic Instruments"), ADS Precision Machining, Inc., doing business as Arizona Desert Shocks ("ADS"), Rocket Performance Machine, Inc., doing business as Rocket Racing Wheels ("Rocket"), and Speartech Fuel Injections Systems, Inc ("Speartech"). These five acquisitions were individually immaterial business combinations that are material in the aggregate. Cash paid for the five immaterial acquisitions, net of cash acquired, was $19,685, and was funded with borrowings from the Company's credit facility and cash on hand. The acquisitions resulted in both amortizable and nonamortizable intangibles and goodwill totaling $13,023. The goodwill and intangibles generated as a result of these acquisitions are deductible for income tax purposes. The final allocation of the purchase price to specific assets acquired and liabilities assumed may change in future periods as the fair value estimates of inventory and intangibles are completed for Speartech and ADS. The measurement period has ended and the final fair value estimates of acquired assets and liabilities are reflected below for Finspeed, Classic Instruments and Rocket.

The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:

	2021 (as initially reported)			Measurement Period Adjustments			2021 (as adjusted)
Cash	$	122		$	—		$	122
Accounts receivable		618			—			618
Inventory		3,975			—			3,975
Property, plant and equipment		2,274			—			2,274
Other assets		23			—			23
Tradenames		2,608			—			2,608
Customer relationships		2,450			—			2,450
Goodwill		8,087			(122	)		7,965
Accounts payable		(343	)		—			(343	)
Accrued liabilities		(129	)		122			(7	)
	$	19,685		$	—		$	19,685

The fair value of the acquired customer relationship intangible assets were estimated using the excess earnings approach. The customer relationship intangible assets are being amortized based on the attrition rate of customers which have an estimated weighted average life of 18 years. The fair value of the acquired tradenames intangible asset was estimated using the relief from royalty method, a form of the income approach. The tradenames were determined to have an indefinite life.

The remaining three acquisitions completed during 2021 are described below.

Baer, Inc.

On December 23, 2021, the Company acquired substantially all the assets and liabilities of Baer, Inc., doing business as Baer Brakes. Consideration for the assets acquired was cash payments of $22,170. The acquisition resulted in both amortizable and non-amortizable intangibles and goodwill totaling $18,989. The goodwill and intangibles generated as a result of this acquisition are deductible for income tax purposes. The purchase price was funded with borrowings from the Company's credit facility and cash on hand. The determination of the final purchase price allocation to specific assets acquired and liabilities assumed may change in future periods as the fair value estimates of inventory and intangibles are completed.

The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:

	December 23, 2021 (as initially reported)			Measurement Period Adjustments			December 23, 2021 (as adjusted)
Accounts receivable	$	627		$	—		$	627
Inventory		1,813			—			1,813
Property, plant and equipment		695			—			695
Other assets		76			—			76
Tradenames		4,630			—			4,630
Customer relationships		6,075			—			6,075
Goodwill		8,363			(79	)		8,284
Accounts payable		(81	)		79			(2	)
Accrued liabilities		(28	)		—			(28	)
	$	22,170		$	—		$	22,170

The contractual value of the accounts receivable acquired was $800.

Brothers Mail Order Industries, Inc.

On December 16, 2021, the Company acquired substantially all the assets and liabilities of Brothers Mail Order Industries, Inc., doing business as Brothers Trucks. Consideration for the assets acquired was cash payments of $26,135. The acquisition resulted in non-amortizable intangibles and goodwill totaling $24,835. The goodwill and intangibles generated as a result of this acquisition are deductible for income tax purposes. The purchase price was funded with borrowings from the Company's credit facility and cash on hand. The determination of the final purchase price allocation to specific assets acquired and liabilities assumed may change in future periods as the fair value estimates of inventory and intangibles are completed.

The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:

	December 16, 2021 (as initially reported)			Measurement Period Adjustments		December 16, 2021 (as adjusted)
Accounts receivable	$	22		$	—	$	22
Inventory		1,682			—		1,682
Property, plant and equipment		20			—		20
Other assets		13			—		13
Tradenames		4,975			—		4,975
Goodwill		19,561			299		19,860
Accounts payable		(34	)		—		(34	)
Accrued liabilities		(403	)		—		(403	)
	$	25,836		$	299	$	26,135

The fair value of the acquired tradenames intangible asset was estimated using the relief from royalty method, a form of the income approach. The tradenames were determined to have an indefinite life.

The contractual value of the accounts receivable acquired was $22.

Advance Engine Management Inc.

On April 14, 2021, the Company acquired substantially all the assets and liabilities of Advance Engine Management Inc. doing business as AEM Performance Electronics. Consideration for the assets acquired was cash payments of $51,243. The acquisition resulted in both amortizable and non-amortizable intangibles and goodwill, totaling $44,486. The goodwill and intangibles generated as a result of this acquisition are deductible for income tax purposes. The purchase price was funded from cash on hand.

The determination of the final purchase price allocation to specific assets acquired and liabilities assumed was adjusted to reflect the final fair value estimate of acquired assets and liabilities, as noted below. The allocation of the purchase price to the assets acquired and liabilities assumed was based on estimates of the fair value of the net assets as follows:

	April 14, 2021 (as initially reported)			Measurement Period Adjustments			April 14, 2021 (as adjusted)
Accounts receivable	$	3,454		$	(61	)	$	3,393
Inventory		3,892			—			3,892
Property, plant and equipment		1,342			—			1,342
Other assets		493			(91	)		402
Tradenames		10,760			—			10,760
Customer relationships		14,640			—			14,640
Patents		1,970			—			1,970
Technology intangibles		110			—			110
Goodwill		17,426			(420	)		17,006
Accounts payable		(2,032	)		110			(1,922	)
Accrued liabilities		(489	)		139			(350	)
	$	51,566		$	(323	)	$	51,243

The fair value of the acquired customer relationship intangible asset was estimated using the excess earnings approach. The customer relationship intangible asset is being amortized based on the attrition rate of customers which was determined to be 20 years. The fair value of the acquired tradenames and patents intangible assets were estimated using the relief from royalty method, a form of the income approach. The tradenames were determined to have an indefinite life. The patents are being amortized over 13 years based on the weighted average remaining life of the patent portfolio.

The contractual value of the accounts receivable acquired was $3,454.

Note 3 - Inventory

9 Months Ended

Oct. 02, 2022

Inventory Disclosure [Text Block]

3.	INVENTORY

Inventories of the Company consisted of the following:

	October 2, 2022		December 31, 2021
Raw materials	$	70,902	$	54,818
Work-in-process		24,588		21,728
Finished goods		135,019		108,494
	$	230,509	$	185,040

Note 4 - Property, Plant and Equipment, Net

9 Months Ended

Oct. 02, 2022

Property, Plant and Equipment Disclosure [Text Block]

4.	PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment of the Company consisted of the following:

	October 2, 2022		December 31, 2021
Land	$	3,426	$	1,330
Buildings and improvements		10,932		10,623
Machinery and equipment		65,826		56,824
Construction in process		10,933		12,859
Total property, plant and equipment		91,117		81,636
Less: accumulated depreciation		36,349		30,141
Property, plant and equipment, net	$	54,768	$	51,495

The Company’s long-lived assets by geographic locations are as follows:

	October 2, 2022		December 31, 2021
United States	$	53,134	$	49,547
International		1,634		1,948
Total property, plant and equipment, net	$	54,768	$	51,495

Note 5 - Goodwill and Other Intangible Assets

9 Months Ended

Oct. 02, 2022

Goodwill and Intangible Assets Disclosure [Text Block]

5.	GOODWILL AND OTHER INTANGIBLE ASSETS

The following presents changes to goodwill for the period indicated:

	For the thirty-nine weeks ended October 2, 2022
Balance at December 31, 2021	$	411,383
John's acquisition		240
SKC acquisition		1,270
RaceQuip acquisition		4,348
Measurement period adjustments*		57
Balance at October 2, 2022	$	417,298

* See Note 2, "Business Combination and Acquisitions - Acquisitions," for further details."

Goodwill represents the premium paid over the fair value of the net tangible and identifiable intangible assets acquired in the Company's business combinations. The measurement period for the valuation of assets acquired and liabilities assumed ends as soon as information on the facts and circumstances that existed as of the acquisition date becomes available, not to exceed 12 months. Adjustments in purchase price allocations may require a change in the amounts allocated to goodwill during the periods in which the adjustments are determined.

Intangible assets consisted of the following:

	October 2, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
Finite-lived intangible assets:
Customer relationships	$	269,950	$	(41,271	)	$	228,679
Tradenames		13,775		(4,663	)		9,112
Technology		26,676		(10,912	)		15,764
Total finite-lived intangible assets	$	310,401	$	(56,846	)	$	253,555

Indefinite-lived intangible assets:
Tradenames	$	174,849		—		$	174,849

	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
Finite-lived intangible assets:
Customer relationships	$	268,438	$	(32,662	)	$	235,776
Tradenames		13,775		(4,119	)		9,656
Technology		26,675		(9,080	)		17,595
Total finite-lived intangible assets	$	308,888	$	(45,861	)	$	263,027

Indefinite-lived intangible assets:
Tradenames	$	175,434		—		$	175,434

The following outlines the estimated future amortization expense related to intangible assets held as of October 2, 2022:

2022 (excluding the thirty-nine weeks ended October 2, 2022)	$	3,697
2023		14,557
2024		13,744
2025		13,714
2026		13,608
Thereafter		194,235
Total	$	253,555

During the third quarter of 2022, management concluded it was necessary to reevaluate goodwill and indefinite-lived intangible assets for impairment due to the supply chain challenges that have prevented us from building and shipping many of our most popular products, which resulted in the Company revising its earnings estimates for 2022. As a result of this evaluation, a pre-tax impairment of $2.4 million was recognized on certain indefinite-lived tradenames.

The fair value of the indefinite-lived tradenames was estimated using the relief from royalty method, a form of the income approach. Significant judgement is required in estimating the fair value of a reporting unit and in performing impairment tests. The most significant assumptions utilized in the determination of the estimated fair values of the indefinite-lived tradenames were the sales projections and long-term earnings growth rates, the royalty rate and the discount rate. The long-term earnings growth rate represents the expected rate at which the brands are expected to grow beyond the shorter-term business planning period. The royalty rate is based on observed market royalty rates for various industrial, consumer and commercial trademarks. The discount rate is based on the Company's weighted average cost of capital adjusted for risk. Due to the inherent uncertainty in forecasting future sales, actual results in the future may vary significantly from the forecasts. Disruptions arising from supply chain issues and other factors outside our control, such as ongoing or escalated international conflict and the U.S. response thereto, political unrest, terrorist attacks, and war (including the ongoing conflict in Ukraine) will likely continue to evolve and the effects on our business may differ from what we currently estimate. If the effects prove to be worse than is reflected in our current estimates, additional indefinite-lived intangible asset impairment and / or goodwill impairment charges could be required.

Note 6 - Debt

9 Months Ended

Oct. 02, 2022

Debt Disclosure [Text Block]

DEBT

Debt of the Company consisted of the following:

	October 2, 2022			December 31, 2021
First lien term loan due November 17, 2028	$	650,850		$	630,000
Revolver		—			25,000
Other		2,764			3,812
Less unamortized debt issuance costs		(11,987	)		(13,264	)
		641,627			645,548
Less current portion of long-term debt		(6,000	)		(7,875	)
	$	635,627		$	637,673

On November 18, 2021, the Company entered into a new credit facility with a syndicate of lenders and Wells Fargo Bank, N.A., as administrative agent for the lenders, letter of credit issuer and swing line lender (the "Credit Agreement"). The financing consisted of a seven-year $600,000 first lien term loan, a five-year $125,000 revolving credit facility, and a $100,000 delayed draw term loan.

The proceeds of any delayed draw loans made after closing were available to the Company to finance acquisitions. As of October 2, 2022, the Company had drawn $57,000 under the delayed draw term loan. Availability under the delayed draw term loan expired in May 2022.

The revolving credit facility includes a letter of credit facility in the amount of $10,000, pursuant to which letters of credit may be issued as long as revolving loans may be advanced and subject to availability under the revolving credit facility. The Company had $1,200 in outstanding letters of credit at October 2, 2022.

Proceeds from the new credit facility were used to repay in full the Company’s obligations under its existing first lien and second lien notes and to pay $13,413 in original issue discount and issuance costs related to the refinancing.

The first lien term loan is to be repaid in quarterly payments of$1,500 through September 30, 2028 with the balance due upon maturity on November 17, 2028. Beginning with the fiscal year ending on December 31, 2022, the Company is required to make a payment based on its available free cash flow (as defined in the Credit Agreement). Any such payments offset future mandatory quarterly payments.

Amounts outstanding under the new credit facility will accrue interest at a rate equal to either the London Interbank Offering Rate ("LIBOR") or base rate, at the Company's election, plus a specified margin. In the case of revolving credit loans and letter of credit fees, the specified margin is based on the Company's Total Leverage Ratio, as defined in the Credit Agreement. Commitment fees payable under the revolving credit facility are based on the Company's Total Leverage Ratio. At October 2, 2022, the weighted average interest rate on the Company's borrowings under the credit facility was 6.8%.

Obligations under the Credit Agreement are secured by substantially all of the Company’s assets. The Credit Agreement includes representations and warranties and affirmative and negative covenants customary for financings of this type, including, but not limited to, limitations on restricted payments, additional borrowings, additional investments, and asset sales. The Credit Agreement also requires that Holley maintain on the last day of each quarter, a Total Leverage Ratio not to exceed a maximum amount. At October 2, 2022, the Company was in compliance with all financial covenants.

Some of the lenders that are parties to the Credit Agreement, and their respective affiliates, have various relationships with the Company in the ordinary course of business involving the provision of financial services, including cash management, commercial banking, investment banking or other services.

Future maturities of long-term debt and amortization of debt issuance costs as of October 2, 2022 are as follows:

2022 (excluding the thirty-nine weeks ended October 2, 2022)	$	1,695	$	436
2023		6,783		1,782
2024		6,790		1,847
2025		6,996		1,915
2026		6,000		1,987
Thereafter		625,350		4,020
	$	653,614	$	11,987

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.

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Note 7 - Common Stock Warrants

9 Months Ended

Oct. 02, 2022

Warrant Liability [Text Block]

7.	COMMON STOCK WARRANTS

Upon the Closing, there were 14,666,644 Warrants, consisting of 9,999,977 Public Warrants and 4,666,667 Private Warrants, outstanding to purchase shares of the Company's common stock that were issued by Empower prior to the Business Combination. Each warrant entitles the registered holder to purchase one share of the Company's common stock at a price of $11.50 per share, subject to adjustments, commencing on October 9, 2021 (the one-year anniversary of Empower’s initial public offering), provided that the Company has an effective registration statement under the Securities Act covering the shares of common stock issuable upon exercise of the warrants and a current prospectus relating to them is available and such shares are registered, qualified or exempt from registration under the securities laws of the state of residence of the holder. The Warrants may be exercised only for a whole number of shares of the Company’s common stock. The Warrants expire on July 16, 2026, the date that is five years after the Closing date, or earlier upon redemption or liquidation. Additionally, the Private Warrants will be non-redeemable and are exercisable on a cashless basis so long as they are held by the Sponsor or any of its permitted transferees. If the Private Warrants are held by someone other than the Sponsor or its permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.

The Company may redeem the Public Warrants at a price of $0.01 per warrant upon 30 days' notice if the closing price of the Company’s common stock equals or exceeds $18.00 per share, subject to adjustments, on the trading day prior to the date on which notice of redemption is given, provided there is an effective registration statement and current prospectus in effect with respect to the ordinary shares underlying such Warrants throughout the 30-day redemption period. If the foregoing conditions are satisfied and the Company issues a notice of redemption of the Warrants, the Warrant holder is entitled to exercise his, her or its Warrant prior to the scheduled redemption date. Any such exercise requires the Warrant holder to pay the exercise price for each Warrant being exercised.

Further, the Company may redeem the Public Warrants at a price of $0.10 per warrant upon 30 days' notice if the closing price of the Company’s common stock equals or exceeds $10.00 per share, subject to adjustments, on the trading day prior to the date on which notice of redemption is given. Beginning on the date the notice of redemption is given until the Warrants are redeemed or exercised, holders may elect to exercise their Warrants on a cashless basis and receive that number of shares of the Company’s common stock as determined by reference to a table in the warrant agreement.

During any period when the Company has failed to maintain an effective registration statement, warrant holders may exercise warrants on a cashless basis in accordance with Section 3(a)(9) of the Securities Act or another exemption, but the Company will use its commercially reasonable best efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.

In April 2022, the Company issued 33,333 shares of common stock in connection with the exercise of Public Warrants assumed in the Business Combination.

The Company’s Warrants are accounted for as a liability in accordance with ASC 815-40 and are presented as a warrant liability on the balance sheet. The warrant liability was measured at fair value at inception and on a recurring basis, with changes in fair value recognized as non-operating expense. As of October 2, 2022 and December 31, 2021, a warrant liability with a fair value of $10,180 and $61,293, respectively, was reflected as a long-term liability in the condensed consolidated balance sheet. A $30,171 and $51,112 decrease in the fair value of the warrant liability was reflected as change in fair value of warrant liability in the condensed consolidated statements of comprehensive income for the 13-week and 39-week periods ended October 2, 2022, respectively. A $17,273 increase was reflected as change in fair value of warrant liability in the condensed consolidated statements of comprehensive income for both the 13-week and 39-week periods ended September 26, 2021.

Note 8 - Fair Value Measurements

9 Months Ended

Oct. 02, 2022

Fair Value Disclosures [Text Block]

8.	FAIR VALUE MEASUREMENTS

The Company’s financial liabilities subject to fair value measurement on a recurring basis and the level of inputs used for such measurements were as follows:

	Fair Value Measured as of October 2, 2022
	Level 1		Level 2		Level 3		Total
Liabilities included in:
Warrant liability (Public)	$	6,428	$	—	$	—	$	6,428
Warrant liability (Private)		—		—		3,752		3,752
Earn-out liability		—		—		2,626		2,626
Total fair value	$	6,428	$	—	$	6,378	$	12,806

	Fair Value Measured as of December 31, 2021
	Level 1		Level 2		Level 3		Total
Liabilities included in:
Warrant liability (Public)	$	39,500	$	—	$	—	$	39,500
Warrant liability (Private)		—		—		21,793		21,793
Earn-out liability		—		—		26,596		26,596
Total fair value	$	39,500	$	—	$	48,389	$	87,889

As of October 2, 2022, the Company's derivative liabilities for its private and public warrants and the earn-out liability (see Note 2, “Business Combination and Acquisitions,” for more details) are measured at fair value on a recurring basis. The fair value for the private warrants and earn-out liability are determined based on significant inputs not observable in the market (Level 3). The valuation of the Level 3 liabilities uses assumptions and estimates the Company believes would be made by a market participant in making the same valuation. The Company assesses these assumptions and estimates on an on-going basis as additional data impacting the assumptions and estimates are obtained. The Company uses a Monte Carlo simulation model to estimate the fair value of its private warrants and earn-out liability. The fair value of the public warrants is determined using publicly traded prices (Level 1). Changes in the fair value of the derivative liabilities related to warrants and the earn-out liability are recognized as non-operating expense in the condensed consolidated statements of comprehensive income.

The fair value of private warrants was estimated as of the measurement date using the Monte Carlo simulation model with the following assumptions:

	October 2, 2022			December 31, 2021
Valuation date price	$	4.05		$	12.99
Strike price	$	11.50		$	11.50
Remaining life (in years)		3.79			4.54
Expected dividend	$	—		$	—
Risk-free interest rate		4.09	%		1.19	%
Price threshold	$	18.00		$	18.00

The fair value of the earn-out liability was estimated as of the measurement date using the Monte Carlo simulation model with the following assumptions:

	October 2, 2022			December 31, 2021
Valuation date price	$	4.05		$	12.99
Expected term (in years)		5.79			6.54
Expected volatility		58.22	%		40.59	%
Risk-free interest rate		3.93	%		1.40	%
Price hurdle 1	not applicable			$	13.00
Price hurdle 2	$	15.00		$	15.00

As of October 2, 2022 and December 31, 2021, the Company has accounts receivable, accounts payable and accrued expenses for which the carrying value approximates fair value due to the short-term nature of these instruments. The carrying value of the Company’s long-term debt approximates fair value as the rates used approximate the market rates currently available to the Company. Fair value measurements used in the impairment reviews of goodwill and intangible assets are Level 3 measurements.

The reconciliation of changes in Level 3 during the 39-week period ended October 2, 2022 is as follows:

	For the thirty-nine weeks ended October 2, 2022
	Private Warrants			Earn-Out Liability			Total
Balance at December 31, 2021	$	21,793		$	26,596		$	48,389
Liabilities reclassed to equity		—			(14,689	)		(14,689	)
Losses included in earnings		(18,041	)		(9,281	)		(27,322	)
Balance at October 2, 2022	$	3,752		$	2,626		$	6,378

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.

Note 9 - Revenue

9 Months Ended

Oct. 02, 2022

Revenue from Contract with Customer [Text Block]

9.	REVENUE

The principal activity from which the Company generates its revenue is the manufacturing and distribution of after-market automotive parts for its customers, comprised of resellers and end users. The Company recognizes revenue at a point in time, rather than over time, as the performance obligation is satisfied when customer obtains control of the product upon title transfer and not as the product is manufactured or developed. The amount of revenue recognized is based on the purchase order price and adjusted for revenue allocated to variable consideration (i.e., estimated rebates, co-op advertising, etc.).

The Company collects sales tax and other taxes concurrent with revenue-producing activities which are excluded from revenue. Shipping and handling costs incurred after control of the product is transferred to our customers are treated as fulfillment costs and not a separate performance obligation.

The Company allows customers to return products when certain Company-established criteria are met. These sales returns are recorded as a charge against gross sales in the period in which the related sales are recognized, net of returns to stock. Returned products, which are recorded as inventories, are valued at the lower of cost or net realizable value. The physical condition and marketability of the returned products are the major factors considered in estimating realizable value. The Company also estimates expected sales returns and records the necessary adjustment as a charge against gross sales.

The Company’s payment terms with customers are customary and vary by customer and geography but typically range from 30 to 365 days. The Company elected the practical expedient to disregard the possible existence of a significant financing component related to payment on contracts, as the Company expects that customers will pay for the products within one year. The Company has evaluated the terms of our arrangements and determined that they do not contain significant financing components. Additionally, as all contracts with customers have an expected duration of one year or less, the Company has elected the practical expedient to exclude disclosure of information regarding the aggregate amount and future timing of performance obligations that are unsatisfied or partially satisfied as of the end of the reporting period. The Company provides limited warranties on most of its products against certain manufacturing and other defects. Provisions for estimated expenses related to product warranty are made at the time products are sold. Refer to Note 16 for more information.

The following table summarizes total revenue by product category. The Company's product category definitions have been revised by management in 2022. The prior-year period has been revised to conform with the current presentation. There is no change to total sales.

	For the thirteen weeks ended				For the thirty-nine weeks ended
	October 2, 2022		September 26, 2021		October 2, 2022		September 26, 2021
Electronic systems	$	62,174	$	73,256	$	219,380	$	231,190
Mechanical systems		37,317		34,783		127,365		112,914
Exhaust		15,183		17,023		52,552		60,365
Accessories		24,561		20,651		81,660		60,592
Safety		15,540		13,960		53,293		47,985
Total sales	$	154,775	$	159,673	$	534,250	$	513,046

The following table summarizes total revenue based on geographic location from which the product is shipped:

	For the thirteen weeks ended				For the thirty-nine weeks ended
	October 2, 2022		September 26, 2021		October 2, 2022		September 26, 2021
United States	$	150,155	$	155,626	$	519,728	$	501,196
Italy		4,620		4,047		14,522		11,850
Total sales	$	154,775	$	159,673	$	534,250	$	513,046

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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Note 10 - Income Taxes

9 Months Ended

Oct. 02, 2022

Income Tax Disclosure [Text Block]

10.

INCOME TAXES

The Company's effective income tax rate is based on expected income, statutory rates and tax planning opportunities available in the various jurisdictions in which it operates. For interim financial reporting, the Company estimates the annual income tax rate based on projected taxable income for the full year and records a quarterly income tax provision or benefit in accordance with the anticipated annual rate. The Company refines the estimates of the year's taxable income as new information becomes available, including actual year-to-date financial results. This continual estimation process often results in a change to the expected effective income tax rate for the year. When this occurs, the Company adjusts the income tax provision during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the expected income tax rate. Significant judgment is required in determining the effective tax rate and in evaluating tax positions.

	For the thirteen weeks ended						For the thirty-nine weeks ended
	October 2, 2022			September 26, 2021			October 2, 2022			September 26, 2021
Income tax expense (benefit)	$	(1,345	)	$	(3,301	)	$	8,866		$	7,255
Effective tax rates		nm			9.9	%		9.1	%		nm
nm - not meaningful

For the 13-week period ended October 2, 2022, the Company's effective tax rate differed from the 21% federal statutory rate primarily due to permanent differences related to changes in fair value of the Private Warrants and the earn-out liability recognized during the period. For the 13-week period ended September 26, 2021, the Company’s effective tax rate of 9.9% differed from the 21% federal statutory rate primarily due to permanent differences related to changes in the fair value of the warrant and earn-out liabilities recognized during the period.

For the 39-week period ended October 2, 2022, the Company's effective tax rate of 9.1% differed from the 21% federal statutory rate primarily due to permanent differences related to changes in fair value of the warrant and earn-out liabilities recognized during the period. For the 39-week period ended September 26, 2021, the Company’s effective tax rate differed from the 21% federal statutory rate primarily due to permanent differences resulting from the adjustment to the earn-out liability related to the 2020 acquisition of Simpson Performance Products ("Simpson") and changes in the fair value of the warrant and earn-out liabilities recognized during the period.

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.

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-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
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-Paragraph 1
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Note 11 - Earnings Per Share

9 Months Ended

Oct. 02, 2022

Earnings Per Share [Text Block]

11.

EARNINGS (LOSS) PER SHARE

The following table sets forth the calculation of basic and diluted earnings (loss) per share:

	For the thirteen weeks ended					For the thirty-nine weeks ended
	October 2, 2022		September 26, 2021			October 2, 2022			September 26, 2021
Numerator:
Net income (loss) - basic	$	31,579	$	(30,200	)	$	89,000		$	(9,158	)
Less: fair value adjustment for warrants		—		—			(51,112	)		—
Net income (loss) - diluted	$	31,579	$	(30,200	)	$	37,888		$	(9,158	)
Denominator:
Weighted average common shares outstanding - basic		117,119,609		106,285,072			116,636,906			80,735,661
Dilutive effect of potential common shares from RSUs		18,525		—			124,603			—
Dilutive effect of potential common shares from warrants		—		—			512,104			—
Weighted average common shares outstanding - diluted		117,138,134		106,285,072			117,273,613			80,735,661
Earnings (loss) per share:
Basic	$	0.27	$	(0.28	)	$	0.76		$	(0.11	)
Diluted	$	0.27	$	(0.28	)	$	0.32		$	(0.11	)

The following outstanding shares of common stock equivalents were excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive. Warrants to purchase shares of common stock having an exercise price greater than the average share market price for the thirteen weeks ended October 2, 2022 are excluded from the calculation of diluted earnings per share.

	For the thirteen weeks ended				For the thirty-nine weeks ended
	October 2, 2022		September 26, 2021		October 2, 2022		September 26, 2021
Anti-dilutive shares excluded from calculation of diluted EPS:
Warrants		14,633,311		14,666,644		—		14,666,644
Stock options		1,769,614		1,394,008		1,769,614		1,394,008
Restricted stock units		220,051		658,891		220,051		658,891
Earn-out shares		1,093,750		2,187,500		1,093,750		2,187,500
Total anti-dilutive shares		17,716,726		18,907,043		3,083,415		18,907,043

Note 12 - Benefit Plans

9 Months Ended

Oct. 02, 2022

Defined Benefit Plan [Text Block]

12.

BENEFIT PLANS

The Company has a defined benefit pension plan (the “Plan”) for its employees. On January 28, 2022, the Company approved the termination of the Plan, effective March 31, 2022. Distribution of the Plan's assets, pursuant to the termination, will not be made until the Plan termination satisfies all regulatory requirements, which is expected to be completed by the fourth quarter of 2022. Plan participants will receive their full accrued benefits from the Plan's assets by electing either lump sum distributions or annuity contracts with a qualifying third-party annuity provider. The resulting settlement effect of the Plan termination will be determined based on prevailing market conditions, the lump sum offer participation rate of eligible participants, the actual lump sum distributions, and annuity purchase rates at the date of distribution. The Company estimates that the settlement charge will be in the range of $400 - $550.

The following summarizes the components of net periodic benefit cost for the Plan:

	For the thirteen weeks ended						For the thirty-nine weeks ended
	October 2, 2022			September 26, 2021			October 2, 2022			September 26, 2021
Components of expense:
Service cost	$	27		$	35		$	81		$	107
Interest cost		32			38			96			114
Expected return on plan assets		(52	)		(58	)		(156	)		(180	)
Amortization of net loss		—			9			—			19
Net periodic benefit cost	$	7		$	24		$	21		$	60

The Company made matching contributions totaling $587 and $1,019 to our 401(k) plan during the 13-week periods ended October 2, 2022 and September 26, 2021, respectively. The Company made matching contributions totaling $2,431 and $2,020 to our 401(k) plan during the 39-week periods ended October 2, 2022 and September 26, 2021, respectively.

The Company made no contributions and contributions of $300 to the Plan during the 13-week periods ended October 2, 2022 and September 26, 2021, respectively. The Company made contributions of $150 and $417 to the Plan during the 39-week periods ended October 2, 2022 and September 26, 2021, respectively.

Note 13 - Equity-based Compensation Plans

9 Months Ended

Oct. 02, 2022

Shareholders' Equity and Share-Based Payments [Text Block]

13.

EQUITY-BASED COMPENSATION PLANS

In 2021, the Company adopted the 2021 Omnibus Incentive Plan (the “2021 Plan”), which provides for the grant of restricted stock awards, incentive and nonqualified stock options, and other share based awards to employees, directors and non-employees. The 2021 Plan authorized 8,850,000 shares of the Company’s common stock to be available for award grants. As of October 2, 2022, 6,324,768 shares of common stock remained available for future issuance under the 2021 Plan.

Equity-based compensation expense included the following components:

	For the thirteen weeks ended				For the thirty-nine weeks ended
	October 2, 2022		September 26, 2021		October 2, 2022		September 26, 2021
Stock options	$	559	$	376	$	1,764	$	376
Restricted stock units		876		—		3,409		—
Profit interest units		1,438		2,110		4,345		2,372

All equity-based compensation expense is recorded in selling, general and administrative costs in the condensed consolidated statements of comprehensive income.

Stock Options

Stock option grants have an exercise price at least equal to the market value of the underlying common stock on the date of grant, have ten-year terms, and vest ratably over three years of continued employment. In general, vested options expire if not exercised at termination of service. On February 15, 2022 and May 6, 2022, the Company granted 548,001 and 44,055 options to purchase shares of the Company’s common stock to key employees, respectively. These stock options had weighted-average grant date fair values of $4.68 per share and $4.32 per share, respectively, which values were estimated as of their respective grant dates using a Black-Scholes option pricing model with the following assumptions:

	Granted Feb. 15, 2022			Granted May 6, 2022
Weighted-average expected term		6.0			6.0
Expected volatility		36.0	%		40.0	%
Expected dividend	$	—		$	—
Risk-free interest rate		1.98	%		3.06	%

The expected term has been estimated using a simplified method, which calculates the expected term as the mid-point between the vesting date and the contractual life of the awards since the Company does not have an extended history of actual exercises. The expected dividend yield is assumed to be zero since the Company has never paid dividends and does not have current plans to pay any dividends. The risk-free interest rate is based on yields of U.S. Treasury securities with maturities similar to the expected term of the options. Expected volatility is based on an evenly weighted blend of implied volatility and historical volatility of publicly-traded peer companies since the Company has limited historical volatility.

Compensation expense for stock options is recorded based on straight-line amortization of the grant date fair value over the requisite service period. As of October 2, 2022, there was $4,671 of unrecognized compensation cost related to unvested stock options that is expected to be recognized over a remaining weighted-average period of 2.0 years.

Restricted Stock Units

Restricted stock units (“RSUs”) vest ratably over one to three years of continued employment. The fair value of a RSU at the grant date is equal to the market price of the Company’s common stock on the grant date. On February 15, 2022 and May 6, 2022, the Company granted 228,180 and 16,767 RSUs, respectively to key employees with grant date fair values of $12.29 per unit and $9.95 per unit, respectively. Additionally, on May 11, 2022, 55,920 RSUs were granted to members of Holley's Board of Directors with a grant date fair value of $8.53 per unit. Compensation expense for RSUs is recorded based on amortization of the grant date fair market value over the period the restrictions lapse. As of October 2, 2022, there was $5,506 of unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a remaining weighted average period of 2.0 years.

Profit Interest Units

The Holley Stockholder has authorized an incentive pool of 41.4 million units of Parent, which are designated as PIUs, that its management has the right to grant to certain employees of the Company. As of October 2, 2022, no units are available for grant. The PIU's are a special type of limited liability company equity unit that allows the recipient to potentially participate in a future increase in the value of the Company. PIUs are issued for no consideration and generally provide for vesting over the requisite service period, subject to the recipient remaining an employee of the Company through each vesting date.

As of October 2, 2022, there was $5,072 of unrecognized compensation cost related to time-based PIUs that is expected to be recognized over a remaining weighted-average period of 0.9 years.

Note 14 - Lease Commitments

9 Months Ended

Oct. 02, 2022

Lessee, Operating Leases [Text Block]

14.

LEASE COMMITMENTS

On January 1, 2022, the Company adopted ASC 842 using the modified retrospective optional transition method provided by ASU 2018-11. The effect of applying this guidance resulted in an increase in noncurrent assets for right-of-use assets of $33.9 million and an increase in liabilities for associated lease obligations of $34.6 million, most of which were classified as noncurrent. The adoption of the standard did not result in a cumulative-effect adjustment to the opening balance of retained earnings.

Under the transition option elected by the Company, ASC 842 is applied only to the most current period and reporting for comparative periods presented in the financial statements continues to be in accordance with Topic 840, including disclosures. Upon adoption, the Company elected the following practical expedients related to ASC 842:

•

not reassess whether any expired or existing contracts are or contain leases, not reassess the lease classification for any expired or existing leases, and not reassess initial direct costs for any existing leases;

•

to account for the lease and non-lease components as a single lease component for all of the Company's leases; and

•

to apply accounting similar to Topic 840 to leases that meet the definition of short-term leases.

The Company leases retail stores, manufacturing, distribution, engineering, and research and development facilities, office space, equipment, and automobiles under operating lease agreements. Leases have remaining lease terms of one to 14 years, inclusive of renewal options that the Company is reasonably certain to exercise.

The following table summarizes operating lease assets and obligations:

	October 2, 2022
Assets:
Operating right of use assets	$	31,274
Liabilities:
Current operating lease liabilities	$	4,866
Long-term lease liabilities		26,950
Total lease liabilities	$	31,816

The following summarizes the components of operating lease expense and provides supplemental cash flow information for operating leases:

	For the thirteen weeks ended		For the thirty-nine weeks ended
	October 2, 2022		October 2, 2022
Components of lease expense:
Operating lease expense	$	1,753	$	5,654
Short-term lease expense		599		1,849
Variable lease expense		195		609
Total lease expense	$	2,547	$	8,112
Supplemental cash flow information related to leases:
Cash paid for amounts included in measurement of operating lease liabilities	$	1,843	$	5,424
Right of use assets obtained in exchange for new operating lease liabilities		—		13,769
Decapitalization of right-of-use assets upon lease termination and/or modification		—		12,178

Information associated with the measurement of operating lease obligations as of October 2, 2022 is as follows:

Weighted average remaining lease term (in years)			7.9
Weighted average discount rate			5.72	%

The following table summarizes the maturities of the Company's operating lease liabilities as of October 2, 2022:

2022 (excluding the thirty-nine weeks ended October 2, 2022)	$	1,847
2023		6,830
2024		5,583
2025		3,867
2026		3,660
Thereafter		18,318
Total lease payments		40,105
Less imputed interest		(8,289	)
Present value of lease liabilities	$	31,816

For the 13-week and 39-week periods ended September 26, 2021, total rent expense under operating leases approximated $1,992 and $5,665.

In accordance with ASC 840, Leases, the aggregate minimum non-cancelable annual lease payments under operating leases in effect on December 31, 2021 were as follows:

2022	$	8,517
2023		6,320
2024		4,766
2025		2,995
2026		2,813
Thereafter		8,546
Total minimum lease commitments	$	33,957

Note 15 - Acquisition, Restructuring and Management Fee Costs

9 Months Ended

Oct. 02, 2022

Restructuring, Impairment, and Other Activities Disclosure [Text Block]

15.

ACQUISITION, RESTRUCTURING AND MANAGEMENT FEE COSTS

The following table summarizes the Company's total acquisition, restructuring and management fee costs:

	For the thirteen weeks ended				For the thirty-nine weeks ended
	October 2, 2022		September 26, 2021		October 2, 2022		September 26, 2021
Acquisitions ⁽¹⁾	$	4	$	228	$	1,625	$	3,439
Restructuring ⁽²⁾		1,262		140		1,622		1,265
Management fees ⁽³⁾		—		23,250		—		25,789
Earn out adjustment ⁽⁴⁾		—		—		—		17,173
Total acquisition, restructuring and management fees	$	1,266	$	23,618	$	3,247	$	47,666

(1)

Includes professional fees for legal, accounting, consulting, administrative, and other professional services directly attributable to potential acquisitions.

(2)

Includes costs incurred as part of the restructuring of operations including professional and consulting services.

(3)

Includes acquisition costs and management fees paid to Sentinel Capital Partners.

(4)

A fair value adjustment to the contingent consideration payable from the Simpson acquisition.

Note 16 - Commitments and Contingencies

9 Months Ended

Oct. 02, 2022

Commitments and Contingencies Disclosure [Text Block]

16.

COMMITMENTS AND CONTINGENCIES

The Company is a party to various lawsuits and claims in the normal course of business. While the lawsuits and claims against the Company cannot be predicted with certainty, management believes that the ultimate resolution of the matters will not have a material effect on the consolidated financial position or results of operations of the Company.

The Company generally warrants its products against certain manufacturing and other defects. These product warranties are provided for specific periods of time depending on the nature of the product. The accrued product warranty costs are based primarily on historical experience of actual warranty claims and are recorded at the time of the sale.

The following table provides the changes in the Company's accrual for product warranties, which is classified as a component of accrued liabilities in the condensed consolidated balance sheets.

	For the thirteen weeks ended						For the thirty-nine weeks ended
	October 2, 2022			September 26, 2021			October 2, 2022			September 26, 2021
Beginning balance	$	2,325		$	2,928		$	3,994		$	3,989
Accrued for current year warranty claims		6,535			2,027			9,569			5,461
Settlement of warranty claims		(5,216	)		(2,310	)		(9,919	)		(6,805	)
Ending balance	$	3,644		$	2,645		$	3,644		$	2,645

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Oct. 02, 2022
Accounting Policies [Abstract]
Emerging Growth Company [Policy Text Block]	Emerging Growth Company Status Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company is an emerging growth company, and, as such, has elected to take advantage of the benefits of the extended transition period for new or revised financial accounting standards.
Risks And Uncertainties [Policy Text Block]	Risks and Uncertainties COVID-19 has adversely impacted global supply chain and general economic conditions. The Company has continued to experience disruptions and higher costs in manufacturing, supply chain, logistical operations, and shortages of certain Company products in distribution channels. The full extent of COVID-19's effect on the Company's operational and financial performance in the future will depend on future developments, including but not limited to the duration, spread, intensity and phase of the pandemic in various countries; the emergence of COVID-19 variants and the utilization and effectiveness of treatments and vaccines against these variants; the further impact of COVID-19 on the global economy; and demand for the Company's products and services. Should the ongoing COVID-19 pandemic not improve, or worsen, or if the Company's attempt to mitigate its impact on its supply chain, operations and costs is not successful, the Company's business, results of operations, and financial condition may be adversely affected. The Company's business and results of operations, financial condition, and liquidity are impacted by broad economic conditions including inflation, labor shortages, and disruption of the supply chain, as well as by geopolitical events, specifically the conflict in Ukraine. The Company's operations have been adversely impacted by inflationary pressures primarily related to transportation, labor and component costs. Sales growth in certain products has been constrained by continuing supply chain challenges and automotive electronic component shortages. In response to the global supply chain volatility and inflationary impacts, the Company has attempted to minimize potential adverse impacts on its business with cost savings initiatives, price increases to customers, and by increasing inventory levels of certain products and working closely with its suppliers and customers to minimize disruptions in delivering products to customers. Should the ongoing macroeconomic conditions not improve, or worsen, or if the Company's attempt to mitigate the impact on its supply chain, operations and costs is not successful, the Company’s business, results of operations and financial condition may be adversely affected.
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP" or “GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2021, as filed with the SEC on March 15, 2022 in the Company’s annual report on Form 10-K. In management’s opinion, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal and recurring nature, that are necessary for a fair presentation of financial results for the interim periods presented. Operating results for any quarter are not necessarily indicative of the results for the full fiscal year. The Company operates on a calendar year that ends on December 31, 2022 and 2021. The three and nine month periods ended October 2, 2022 and September 26, 2021 each included 13 weeks and 39 weeks, respectively.
Consolidation, Policy [Policy Text Block]	Principles of Consolidation These unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and accounts have been eliminated in consolidation.
Lessee, Leases [Policy Text Block]	*Leases* Operating lease right of use ("ROU") assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. The Company's leases may include options to extend or terminate the lease. These options to extend are included in the lease term when it is reasonably certain that the Company will exercise that option. Some leases have variable payments, however, because they are not based on an index or rate, they are not included in the ROU assets and liabilities. Variable payments for real estate leases primarily relate to common area maintenance, insurance, taxes and utilities. Since the Company's leases generally do not provide an implicit rate, the Company applies a portfolio approach using an estimated incremental borrowing rate based on the lease term and other information available at the commencement date in determining the present value of lease payments. The rate applied is based on the currency of the lease. Leases having a lease term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the term of the lease. In addition, the Company has applied the practical expedient to account for the lease and non-lease components as a single lease component for all of the Company's leases. See Note 14, "Lease Commitments," for further details.
Warrant and Forward Purchase Agreement Liabilities [Policy Text Block]	*Warrants* The Company accounts for warrants to purchase its common stock as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding. If a warrant does not meet the conditions for equity classification, it is carried in the consolidated balance sheet as a warrant liability measured at fair value, with subsequent changes in the fair value of the warrant recorded in the consolidated statements of comprehensive income as a non-operating expense. If a warrant meets both conditions for equity classification, the warrant is initially recorded in additional paid-in capital on the consolidated balance sheet, and the amount initially recorded is not subsequently re-measured at fair value. See Note 7, "Common Stock Warrants," and Note 8, "Fair Value Measurements," for further details.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements *Accounting Standards Recently Adopted* In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) which requires lessees to recognize right-of-use assets, representing their right to use the underlying asset for the lease term, and lease liabilities on the balance sheet for all leases with terms greater than 12 months. The Company adopted the provisions of this guidance effective January 1, 2022, using the modified retrospective optional transition method. Therefore, the standard was applied beginning January 1, 2022 and prior periods were not restated. The adoption of the standard did not result in a cumulative-effect adjustment to the opening balance of retained earnings. The Company elected the package of practical expedients and implemented internal controls and executed changes to business processes to enable the preparation of financial information upon adoption. The adoption of the new standard resulted in the recognition of a right of use asset and short-term and long-term liabilities recorded on the Company's consolidated balance sheet related to operating leases. In addition, the adoption of the standard did not have a material impact on the Company's results of operations or cash flows. See Note 14, "Lease Commitments," for further details. In August 2018, the FASB issued ASU 2018-14, Compensation – Retirements Benefits – Defined Benefit Plans – General (Subtopic 715-20). The ASU will update disclosure requirements for employers that sponsor defined benefit pension or other post retirement plans. The Company adopted ASU 2019-12 on a retrospective basis as of January 1, 2022. Adoption did not result in a significant change to the Company's consolidated financial statement disclosures. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) which is intended to simplify various aspects related to accounting for income taxes. The ASU removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The Company adopted ASU 2019-12 on a prospective basis as of January 1, 2022. Adoption of the ASU did not have a material effect on the Company's consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (Subtopic 470-20). ASU 2020-06 eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. The new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. The Company adopted ASU 2020-06 on January 1, 2022. Adoption of the ASU did not impact the Company's consolidated financial statements. **Accounting Standards Not* Yet Adopted*** In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU requires entities to apply the definition of a performance obligation under ASC Topic 606 to recognize and measure contract assets and contract liabilities (i.e., deferred revenue) relating to contracts with customers that are acquired in a business combination. Under current U.S. GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU No. 2021-08 will result in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under ASC Topic 606. Adoption of the provisions of ASU 2021-08 are effective for the Company's fiscal year beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the potential impact of adopting this guidance on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). The ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. Adoption of the provisions of ASU 2020-04 are optional and are effective from March 12, 2020 through December 31, 2022. As of October 2, 2022, the Company did not adopt any expedients or exceptions under ASU 2020-04. The Company will continue to evaluate the impact of ASU 2020-04 and whether it will apply the optional expedients and exceptions.

Note 2 - Business Combination and Acquisitions (Tables)

9 Months Ended

Oct. 02, 2022

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

	2022 (as initially reported)			Measurement Period Adjustments			2022 (as adjusted)
Accounts receivable	$	959		$	(397	)	$	562
Inventory		3,481			1,681			5,162
Property, plant and equipment		275			—			275
Other assets		1,132			(1,108	)		24
Tradenames		1,689			—			1,689
Customer relationships		1,512			—			1,512
Goodwill		5,858			(41	)		5,817
Accounts payable		(25	)		(133	)		(158	)
Accrued liabilities		(1,103	)		(2	)		(1,105	)
	$	13,778		$	—		$	13,778

	2021 (as initially reported)			Measurement Period Adjustments			2021 (as adjusted)
Cash	$	122		$	—		$	122
Accounts receivable		618			—			618
Inventory		3,975			—			3,975
Property, plant and equipment		2,274			—			2,274
Other assets		23			—			23
Tradenames		2,608			—			2,608
Customer relationships		2,450			—			2,450
Goodwill		8,087			(122	)		7,965
Accounts payable		(343	)		—			(343	)
Accrued liabilities		(129	)		122			(7	)
	$	19,685		$	—		$	19,685

	December 23, 2021 (as initially reported)			Measurement Period Adjustments			December 23, 2021 (as adjusted)
Accounts receivable	$	627		$	—		$	627
Inventory		1,813			—			1,813
Property, plant and equipment		695			—			695
Other assets		76			—			76
Tradenames		4,630			—			4,630
Customer relationships		6,075			—			6,075
Goodwill		8,363			(79	)		8,284
Accounts payable		(81	)		79			(2	)
Accrued liabilities		(28	)		—			(28	)
	$	22,170		$	—		$	22,170

	December 16, 2021 (as initially reported)			Measurement Period Adjustments		December 16, 2021 (as adjusted)
Accounts receivable	$	22		$	—	$	22
Inventory		1,682			—		1,682
Property, plant and equipment		20			—		20
Other assets		13			—		13
Tradenames		4,975			—		4,975
Goodwill		19,561			299		19,860
Accounts payable		(34	)		—		(34	)
Accrued liabilities		(403	)		—		(403	)
	$	25,836		$	299	$	26,135

	April 14, 2021 (as initially reported)			Measurement Period Adjustments			April 14, 2021 (as adjusted)
Accounts receivable	$	3,454		$	(61	)	$	3,393
Inventory		3,892			—			3,892
Property, plant and equipment		1,342			—			1,342
Other assets		493			(91	)		402
Tradenames		10,760			—			10,760
Customer relationships		14,640			—			14,640
Patents		1,970			—			1,970
Technology intangibles		110			—			110
Goodwill		17,426			(420	)		17,006
Accounts payable		(2,032	)		110			(1,922	)
Accrued liabilities		(489	)		139			(350	)
	$	51,566		$	(323	)	$	51,243

Note 3 - Inventory (Tables)

9 Months Ended

Oct. 02, 2022

Schedule of Inventory, Current [Table Text Block]

	October 2, 2022		December 31, 2021
Raw materials	$	70,902	$	54,818
Work-in-process		24,588		21,728
Finished goods		135,019		108,494
	$	230,509	$	185,040

Note 4 - Property, Plant and Equipment, Net (Tables)

9 Months Ended

Oct. 02, 2022

Property, Plant and Equipment [Table Text Block]

	October 2, 2022		December 31, 2021
Land	$	3,426	$	1,330
Buildings and improvements		10,932		10,623
Machinery and equipment		65,826		56,824
Construction in process		10,933		12,859
Total property, plant and equipment		91,117		81,636
Less: accumulated depreciation		36,349		30,141
Property, plant and equipment, net	$	54,768	$	51,495

Long-Lived Assets by Geographic Areas [Table Text Block]

	October 2, 2022		December 31, 2021
United States	$	53,134	$	49,547
International		1,634		1,948
Total property, plant and equipment, net	$	54,768	$	51,495

Note 5 - Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Oct. 02, 2022

Schedule of Goodwill [Table Text Block]

	For the thirty-nine weeks ended October 2, 2022
Balance at December 31, 2021	$	411,383
John's acquisition		240
SKC acquisition		1,270
RaceQuip acquisition		4,348
Measurement period adjustments*		57
Balance at October 2, 2022	$	417,298

Schedule of Intangible Assets [Table Text Block]

	October 2, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
Finite-lived intangible assets:
Customer relationships	$	269,950	$	(41,271	)	$	228,679
Tradenames		13,775		(4,663	)		9,112
Technology		26,676		(10,912	)		15,764
Total finite-lived intangible assets	$	310,401	$	(56,846	)	$	253,555

Indefinite-lived intangible assets:
Tradenames	$	174,849		—		$	174,849

	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
Finite-lived intangible assets:
Customer relationships	$	268,438	$	(32,662	)	$	235,776
Tradenames		13,775		(4,119	)		9,656
Technology		26,675		(9,080	)		17,595
Total finite-lived intangible assets	$	308,888	$	(45,861	)	$	263,027

Indefinite-lived intangible assets:
Tradenames	$	175,434		—		$	175,434

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

2022 (excluding the thirty-nine weeks ended October 2, 2022)	$	3,697
2023		14,557
2024		13,744
2025		13,714
2026		13,608
Thereafter		194,235
Total	$	253,555

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
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Note 6 - Debt (Tables)

9 Months Ended

Oct. 02, 2022

Schedule of Debt [Table Text Block]

	October 2, 2022			December 31, 2021
First lien term loan due November 17, 2028	$	650,850		$	630,000
Revolver		—			25,000
Other		2,764			3,812
Less unamortized debt issuance costs		(11,987	)		(13,264	)
		641,627			645,548
Less current portion of long-term debt		(6,000	)		(7,875	)
	$	635,627		$	637,673

Schedule of Maturities of Long-Term Debt [Table Text Block]

2022 (excluding the thirty-nine weeks ended October 2, 2022)	$	1,695	$	436
2023		6,783		1,782
2024		6,790		1,847
2025		6,996		1,915
2026		6,000		1,987
Thereafter		625,350		4,020
	$	653,614	$	11,987

Note 8 - Fair Value Measurements (Tables)

9 Months Ended

Oct. 02, 2022

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

	Fair Value Measured as of October 2, 2022
	Level 1		Level 2		Level 3		Total
Liabilities included in:
Warrant liability (Public)	$	6,428	$	—	$	—	$	6,428
Warrant liability (Private)		—		—		3,752		3,752
Earn-out liability		—		—		2,626		2,626
Total fair value	$	6,428	$	—	$	6,378	$	12,806

	Fair Value Measured as of December 31, 2021
	Level 1		Level 2		Level 3		Total
Liabilities included in:
Warrant liability (Public)	$	39,500	$	—	$	—	$	39,500
Warrant liability (Private)		—		—		21,793		21,793
Earn-out liability		—		—		26,596		26,596
Total fair value	$	39,500	$	—	$	48,389	$	87,889

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

	October 2, 2022			December 31, 2021
Valuation date price	$	4.05		$	12.99
Strike price	$	11.50		$	11.50
Remaining life (in years)		3.79			4.54
Expected dividend	$	—		$	—
Risk-free interest rate		4.09	%		1.19	%
Price threshold	$	18.00		$	18.00

	October 2, 2022			December 31, 2021
Valuation date price	$	4.05		$	12.99
Expected term (in years)		5.79			6.54
Expected volatility		58.22	%		40.59	%
Risk-free interest rate		3.93	%		1.40	%
Price hurdle 1	not applicable			$	13.00
Price hurdle 2	$	15.00		$	15.00

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

	For the thirty-nine weeks ended October 2, 2022
	Private Warrants			Earn-Out Liability			Total
Balance at December 31, 2021	$	21,793		$	26,596		$	48,389
Liabilities reclassed to equity		—			(14,689	)		(14,689	)
Losses included in earnings		(18,041	)		(9,281	)		(27,322	)
Balance at October 2, 2022	$	3,752		$	2,626		$	6,378

Note 9 - Revenue (Tables)

9 Months Ended

Oct. 02, 2022

Revenue from External Customers by Products and Services [Table Text Block]

	For the thirteen weeks ended				For the thirty-nine weeks ended
	October 2, 2022		September 26, 2021		October 2, 2022		September 26, 2021
Electronic systems	$	62,174	$	73,256	$	219,380	$	231,190
Mechanical systems		37,317		34,783		127,365		112,914
Exhaust		15,183		17,023		52,552		60,365
Accessories		24,561		20,651		81,660		60,592
Safety		15,540		13,960		53,293		47,985
Total sales	$	154,775	$	159,673	$	534,250	$	513,046

Revenue from External Customers by Geographic Areas [Table Text Block]

	For the thirteen weeks ended				For the thirty-nine weeks ended
	October 2, 2022		September 26, 2021		October 2, 2022		September 26, 2021
United States	$	150,155	$	155,626	$	519,728	$	501,196
Italy		4,620		4,047		14,522		11,850
Total sales	$	154,775	$	159,673	$	534,250	$	513,046

Note 10 - Income Taxes (Tables)

9 Months Ended

Oct. 02, 2022

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	For the thirteen weeks ended						For the thirty-nine weeks ended
	October 2, 2022			September 26, 2021			October 2, 2022			September 26, 2021
Income tax expense (benefit)	$	(1,345	)	$	(3,301	)	$	8,866		$	7,255
Effective tax rates		nm			9.9	%		9.1	%		nm
nm - not meaningful

Note 11 - Earnings Per Share (Tables)

9 Months Ended

Oct. 02, 2022

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	For the thirteen weeks ended					For the thirty-nine weeks ended
	October 2, 2022		September 26, 2021			October 2, 2022			September 26, 2021
Numerator:
Net income (loss) - basic	$	31,579	$	(30,200	)	$	89,000		$	(9,158	)
Less: fair value adjustment for warrants		—		—			(51,112	)		—
Net income (loss) - diluted	$	31,579	$	(30,200	)	$	37,888		$	(9,158	)
Denominator:
Weighted average common shares outstanding - basic		117,119,609		106,285,072			116,636,906			80,735,661
Dilutive effect of potential common shares from RSUs		18,525		—			124,603			—
Dilutive effect of potential common shares from warrants		—		—			512,104			—
Weighted average common shares outstanding - diluted		117,138,134		106,285,072			117,273,613			80,735,661
Earnings (loss) per share:
Basic	$	0.27	$	(0.28	)	$	0.76		$	(0.11	)
Diluted	$	0.27	$	(0.28	)	$	0.32		$	(0.11	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

	For the thirteen weeks ended				For the thirty-nine weeks ended
	October 2, 2022		September 26, 2021		October 2, 2022		September 26, 2021
Anti-dilutive shares excluded from calculation of diluted EPS:
Warrants		14,633,311		14,666,644		—		14,666,644
Stock options		1,769,614		1,394,008		1,769,614		1,394,008
Restricted stock units		220,051		658,891		220,051		658,891
Earn-out shares		1,093,750		2,187,500		1,093,750		2,187,500
Total anti-dilutive shares		17,716,726		18,907,043		3,083,415		18,907,043

Note 12 - Benefit Plans (Tables)

9 Months Ended

Oct. 02, 2022

Schedule of Net Benefit Costs [Table Text Block]

	For the thirteen weeks ended						For the thirty-nine weeks ended
	October 2, 2022			September 26, 2021			October 2, 2022			September 26, 2021
Components of expense:
Service cost	$	27		$	35		$	81		$	107
Interest cost		32			38			96			114
Expected return on plan assets		(52	)		(58	)		(156	)		(180	)
Amortization of net loss		—			9			—			19
Net periodic benefit cost	$	7		$	24		$	21		$	60

Note 13 - Equity-based Compensation Plans (Tables)

9 Months Ended

Oct. 02, 2022

Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

	For the thirteen weeks ended				For the thirty-nine weeks ended
	October 2, 2022		September 26, 2021		October 2, 2022		September 26, 2021
Stock options	$	559	$	376	$	1,764	$	376
Restricted stock units		876		—		3,409		—
Profit interest units		1,438		2,110		4,345		2,372

Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Granted Feb. 15, 2022			Granted May 6, 2022
Weighted-average expected term		6.0			6.0
Expected volatility		36.0	%		40.0	%
Expected dividend	$	—		$	—
Risk-free interest rate		1.98	%		3.06	%

Note 14 - Lease Commitments (Tables)

9 Months Ended

Oct. 02, 2022

Schedule of Operating Lease Assets and Obligations [Table Text Block]

	October 2, 2022
Assets:
Operating right of use assets	$	31,274
Liabilities:
Current operating lease liabilities	$	4,866
Long-term lease liabilities		26,950
Total lease liabilities	$	31,816

Lease, Cost [Table Text Block]

	For the thirteen weeks ended		For the thirty-nine weeks ended
	October 2, 2022		October 2, 2022
Components of lease expense:
Operating lease expense	$	1,753	$	5,654
Short-term lease expense		599		1,849
Variable lease expense		195		609
Total lease expense	$	2,547	$	8,112
Supplemental cash flow information related to leases:
Cash paid for amounts included in measurement of operating lease liabilities	$	1,843	$	5,424
Right of use assets obtained in exchange for new operating lease liabilities		—		13,769
Decapitalization of right-of-use assets upon lease termination and/or modification		—		12,178

Schedule of Information Associated with the Measurement of Operating Lease Obligations [Table Text Block]

Weighted average remaining lease term (in years)			7.9
Weighted average discount rate			5.72	%

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

2022 (excluding the thirty-nine weeks ended October 2, 2022)	$	1,847
2023		6,830
2024		5,583
2025		3,867
2026		3,660
Thereafter		18,318
Total lease payments		40,105
Less imputed interest		(8,289	)
Present value of lease liabilities	$	31,816

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

2022	$	8,517
2023		6,320
2024		4,766
2025		2,995
2026		2,813
Thereafter		8,546
Total minimum lease commitments	$	33,957

Note 15 - Acquisition, Restructuring and Management Fee Costs (Tables)

9 Months Ended

Oct. 02, 2022

Schedule of Acquisition, Restructuring and Management Fee Costs [Table Text Block]

	For the thirteen weeks ended				For the thirty-nine weeks ended
	October 2, 2022		September 26, 2021		October 2, 2022		September 26, 2021
Acquisitions ⁽¹⁾	$	4	$	228	$	1,625	$	3,439
Restructuring ⁽²⁾		1,262		140		1,622		1,265
Management fees ⁽³⁾		—		23,250		—		25,789
Earn out adjustment ⁽⁴⁾		—		—		—		17,173
Total acquisition, restructuring and management fees	$	1,266	$	23,618	$	3,247	$	47,666

Note 16 - Commitments and Contingencies (Tables)

9 Months Ended

Oct. 02, 2022

Schedule of Product Warranty Liability [Table Text Block]

	For the thirteen weeks ended						For the thirty-nine weeks ended
	October 2, 2022			September 26, 2021			October 2, 2022			September 26, 2021
Beginning balance	$	2,325		$	2,928		$	3,994		$	3,989
Accrued for current year warranty claims		6,535			2,027			9,569			5,461
Settlement of warranty claims		(5,216	)		(2,310	)		(9,919	)		(6,805	)
Ending balance	$	3,644		$	2,645		$	3,644		$	2,645

Note 2 - Business Combination and Acquisitions (Details Textual) - USD ($) $ / shares in Units, $ in Thousands					3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 23, 2021	Dec. 16, 2021	Jul. 16, 2021	Apr. 14, 2021	Apr. 03, 2022	Oct. 02, 2022	Dec. 31, 2021	Oct. 09, 2021
Common Stock, Shares, Issued (in shares)						117,147,997	115,805,639
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right (in shares)								1
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)								$ 11.50
Warrants and Rights Outstanding, Term (Year)								5 years
IPO [Member]
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right (in shares)			1
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)			$ 11.50
Warrants and Rights Outstanding, Term (Year)			5 years
IPO [Member] \| Public Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)			8,333,310
IPO [Member] \| Private Placement Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)			4,666,667
Merger Agreement [Member] \| Pipe Investors [Member]
Repayments of Long-Term Debt, Total			$ 100,000
Subscription Agreement [Member] \| Pipe Investors [Member]
Common Stock, Shares, Issued (in shares)			24,000,000
Shares Issued, Price Per Share (in dollars per share)			$ 10.00
Common Stock, Value, Subscriptions			$ 240,000
Amended And Restated Forward Purchase Agreement [Member]
Stock Issued During Period, Shares, New Issues (in shares)			5,000,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)			1,666,667
Proceeds from Issuance of Common Stock			$ 50,000
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right (in shares)			1
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)			$ 11.50
Empower Sponsor Holdings LLC [Member] \| Tranche One [Member]
Business Combination Consideration Earn Out Shares (in shares)					1,093,750
Business Combination Consideration Earn Out Value					$ 14,689
Empower Sponsor Holdings LLC [Member] \| Merger Agreement [Member]
Business Combination Contingent Consideration Shares Issuable, Shares (in shares)			2,187,500
Empower Sponsor Holdings LLC [Member] \| Merger Agreement [Member] \| Holley Parent Holdings Llc [Member]
Payments to Acquire Businesses, Gross			$ 264,718
Common Stock, Shares, Issued (in shares)			67,673,884
Shares Issued, Price Per Share (in dollars per share)			$ 10.00
John's, Southern Kentucky Classics, and Vesta Motorsports [Member]
Payments to Acquire Businesses, Gross						$ 13,778
Business Combination Intangible Assets Including Goodwill Acquired						$ 9,018
John's, Southern Kentucky Classics, and Vesta Motorsports [Member] \| Customer Relationships [Member]
Finite-Lived Intangible Asset, Useful Life (Year)						20 years
Finspeed, Classic Instruments, ADS, Rocket and Speartech [Member]
Payments to Acquire Businesses, Gross						$ 19,685
Business Combination Intangible Assets Including Goodwill Acquired						$ 13,023
Finspeed Llc [Member] \| Customer Relationships [Member]
Finite-Lived Intangible Asset, Useful Life (Year)							18 years
Baer Inc [Member]
Payments to Acquire Businesses, Gross	$ 22,170
Business Combination Intangible Assets Including Goodwill Acquired	18,989
Accounts Receivable, Purchase	$ 800
Baer Inc [Member] \| Customer Relationships [Member]
Finite-Lived Intangible Asset, Useful Life (Year)	20 years
Brothers Mail Order Industries Inc [Member]
Payments to Acquire Businesses, Gross		$ 26,135
Business Combination Intangible Assets Including Goodwill Acquired		24,835
Accounts Receivable, Purchase		$ 22
Advance Engine Management Inc [Member]
Payments to Acquire Businesses, Gross				$ 51,243
Business Combination Intangible Assets Including Goodwill Acquired				44,486
Accounts Receivable, Purchase				$ 3,454
Advance Engine Management Inc [Member] \| Customer Relationships [Member]
Finite-Lived Intangible Asset, Useful Life (Year)				20 years
Advance Engine Management Inc [Member] \| Patents [Member]
Finite-Lived Intangible Asset, Useful Life (Year)				13 years

Note 2 - Business Combination and Acquisitions - Allocation of the Purchase Price to the Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($)	Oct. 02, 2022	Dec. 31, 2021	Dec. 23, 2021	Dec. 16, 2021	Apr. 14, 2021
Goodwill	$ 417,298,000	$ 411,383,000
John's, Southern Kentucky Classics, and Vesta Motorsports [Member]
Accounts receivable	562,000
Inventory	5,162,000
Property, plant and equipment	275,000
Other assets	24,000
Tradenames	1,689,000
Customer relationships	1,512,000
Goodwill	5,817,000
Accounts payable	(158,000)
Accrued liabilities	(1,105,000)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net, Total	13,778,000
Property, plant and equipment	275,000
John's, Southern Kentucky Classics, and Vesta Motorsports [Member] \| Previously Reported [Member]
Accounts receivable	959,000
Inventory	3,481,000
Property, plant and equipment	275,000
Other assets	1,132,000
Tradenames	1,689,000
Customer relationships	1,512,000
Goodwill	5,858,000
Accounts payable	(25,000)
Accrued liabilities	(1,103,000)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net, Total	13,778,000
Property, plant and equipment	275,000
John's, Southern Kentucky Classics, and Vesta Motorsports [Member] \| Revision of Prior Period, Adjustment [Member]
Accounts receivable	(397,000)
Inventory	1,681,000
Other assets	(1,108,000)
Goodwill	(41,000)
Accounts payable	(133,000)
Accrued liabilities	$ (2,000)
Finspeed Llc [Member]
Accounts receivable		618,000
Inventory		3,975,000
Property, plant and equipment		2,274,000
Other assets		23,000
Goodwill		7,965,000
Accounts payable		(343,000)
Accrued liabilities		(7,000)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net, Total		19,685
Cash		122,000
Property, plant and equipment		2,274,000
Finspeed Llc [Member] \| Trade Names [Member]
Tradenames		2,608,000
Finspeed Llc [Member] \| Customer Relationships [Member]
Tradenames		2,450,000
Finspeed Llc [Member] \| Previously Reported [Member]
Accounts receivable		618,000
Inventory		3,975,000
Property, plant and equipment		2,274,000
Other assets		23,000
Goodwill		8,087,000
Accounts payable		(343,000)
Accrued liabilities		(129,000)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net, Total		19,685
Cash		122,000
Property, plant and equipment		2,274,000
Finspeed Llc [Member] \| Previously Reported [Member] \| Trade Names [Member]
Tradenames		2,608,000
Finspeed Llc [Member] \| Previously Reported [Member] \| Customer Relationships [Member]
Tradenames		2,450,000
Finspeed Llc [Member] \| Revision of Prior Period, Adjustment [Member]
Goodwill		(122,000)
Accrued liabilities		$ 122,000			$ 139,000
Baer Inc [Member]
Accounts receivable			$ 627,000
Inventory			1,813,000
Property, plant and equipment			695,000
Other assets			76,000
Goodwill			8,284,000
Accounts payable			(2,000)
Accrued liabilities			(28,000)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net, Total			22,170,000
Property, plant and equipment			695,000
Baer Inc [Member] \| Trade Names [Member]
Tradenames			4,630,000
Baer Inc [Member] \| Customer Relationships [Member]
Customer relationships			6,075,000
Baer Inc [Member] \| Previously Reported [Member]
Accounts receivable			627,000
Inventory			1,813,000
Property, plant and equipment			695,000
Other assets			76,000
Goodwill			8,363,000
Accounts payable			(81,000)
Accrued liabilities			(28,000)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net, Total			22,170,000
Property, plant and equipment			695,000
Baer Inc [Member] \| Previously Reported [Member] \| Trade Names [Member]
Tradenames			4,630,000
Baer Inc [Member] \| Previously Reported [Member] \| Customer Relationships [Member]
Customer relationships			6,075,000
Baer Inc [Member] \| Revision of Prior Period, Adjustment [Member]
Goodwill			(79,000)
Accounts payable			$ 79,000
Brothers Mail Order Industries Inc [Member]
Accounts receivable				$ 22,000
Inventory				1,682,000
Property, plant and equipment				20,000
Other assets				13,000
Goodwill				19,860,000
Accounts payable				(34,000)
Accrued liabilities				(403,000)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net, Total				26,135,000
Property, plant and equipment				20,000
Brothers Mail Order Industries Inc [Member] \| Trade Names [Member]
Tradenames				4,975,000
Brothers Mail Order Industries Inc [Member] \| Previously Reported [Member]
Accounts receivable				22,000
Inventory				1,682,000
Property, plant and equipment				20,000
Other assets				13,000
Goodwill				19,561,000
Accounts payable				(34,000)
Accrued liabilities				(403,000)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net, Total				25,836,000
Property, plant and equipment				20,000
Brothers Mail Order Industries Inc [Member] \| Previously Reported [Member] \| Trade Names [Member]
Tradenames				4,975,000
Brothers Mail Order Industries Inc [Member] \| Revision of Prior Period, Adjustment [Member]
Goodwill				299,000
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net, Total				$ 299,000
Advance Engine Management Inc [Member]
Accounts receivable					3,393,000
Inventory					3,892,000
Property, plant and equipment					1,342,000
Other assets					402,000
Goodwill					17,006,000
Accounts payable					(1,922,000)
Accrued liabilities					(350,000)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net, Total					51,243,000
Property, plant and equipment					1,342,000
Advance Engine Management Inc [Member] \| Trade Names [Member]
Tradenames					10,760,000
Advance Engine Management Inc [Member] \| Customer Relationships [Member]
Tradenames					14,640,000
Advance Engine Management Inc [Member] \| Patents [Member]
Tradenames					1,970,000
Advance Engine Management Inc [Member] \| Technology-Based Intangible Assets [Member]
Tradenames					110,000
Advance Engine Management Inc [Member] \| Previously Reported [Member]
Accounts receivable					3,454,000
Inventory					3,892,000
Property, plant and equipment					1,342,000
Other assets					493,000
Goodwill					17,426,000
Accounts payable					(2,032,000)
Accrued liabilities					(489,000)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net, Total					51,566,000
Property, plant and equipment					1,342,000
Advance Engine Management Inc [Member] \| Previously Reported [Member] \| Trade Names [Member]
Tradenames					10,760,000
Advance Engine Management Inc [Member] \| Previously Reported [Member] \| Customer Relationships [Member]
Tradenames					14,640,000
Advance Engine Management Inc [Member] \| Previously Reported [Member] \| Patents [Member]
Tradenames					1,970,000
Advance Engine Management Inc [Member] \| Previously Reported [Member] \| Technology-Based Intangible Assets [Member]
Tradenames					110,000
Advance Engine Management Inc [Member] \| Revision of Prior Period, Adjustment [Member]
Accounts receivable					(61,000)
Other assets					(91,000)
Goodwill					(420,000)
Accounts payable					110,000
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net, Total					$ (323,000)

Note 3 - Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Oct. 02, 2022	Dec. 31, 2021
Raw materials	$ 70,902	$ 54,818
Work-in-process	24,588	21,728
Finished goods	135,019	108,494
Inventory, Net, Total	$ 230,509	$ 185,040

Note 4 - Property, Plant and Equipment, Net - Schedule of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands	Oct. 02, 2022	Dec. 31, 2021
Property, Plant, and Equipment, Gross	$ 91,117	$ 81,636
Less: accumulated depreciation	(36,349)	(30,141)
Property, plant and equipment, net	54,768	51,495
Land [Member]
Property, Plant, and Equipment, Gross	3,426	1,330
Building and Building Improvements [Member]
Property, Plant, and Equipment, Gross	10,932	10,623
Machinery and Equipment [Member]
Property, Plant, and Equipment, Gross	65,826	56,824
Construction in Progress [Member]
Property, Plant, and Equipment, Gross	$ 10,933	$ 12,859

Note 4 - Property, Plant and Equipment, Net - Schedule of Long-Lived Assets by Geographic Locations (Details) - USD ($) $ in Thousands	Oct. 02, 2022	Dec. 31, 2021
Property, Plant and Equipment, Net	$ 54,768	$ 51,495
UNITED STATES
Property, Plant and Equipment, Net	53,134	49,547
Non-US [Member]
Property, Plant and Equipment, Net	$ 1,634	$ 1,948

Note 5 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Sep. 26, 2021	Oct. 02, 2022	Sep. 26, 2021
Impairment of Intangible Assets, Indefinite-Lived (Excluding Goodwill)	$ 2,395	$ 0	$ 2,395	$ 0
Trade Names [Member]
Impairment of Intangible Assets, Indefinite-Lived (Excluding Goodwill)	$ 2,400

Note 5 - Goodwill and Other Intangible Assets - Schedule of Goodwill (Details)
$ in Thousands

9 Months Ended

Oct. 02, 2022

USD ($)

Balance at December 31, 2021

$ 411,383

Measurement period adjustments*

^[1]

Balance at October 2, 2022

417,298

Johns Acquisition [Member]

acquisition

240

Southern Kentucky Classics [Member]

acquisition

1,270

RaceQuip [Member]

acquisition

$ 4,348

[1]	See Note 2, "Business Combination and Acquisitions - Acquisitions," for further details.

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

Note 5 - Goodwill and Other Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	Oct. 02, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets, Gross	$ 310,401	$ 308,888
Finite-Lived Intangible Assets, Accumulated Amortization	(56,846)	(45,861)
Finite-Lived Intangible Assets, Net	253,555	263,027
Customer Relationships [Member]
Finite-Lived Intangible Assets, Gross	269,950	268,438
Finite-Lived Intangible Assets, Accumulated Amortization	(41,271)	(32,662)
Finite-Lived Intangible Assets, Net	228,679	235,776
Trade Names [Member]
Finite-Lived Intangible Assets, Gross	13,775	13,775
Finite-Lived Intangible Assets, Accumulated Amortization	(4,663)	(4,119)
Finite-Lived Intangible Assets, Net	9,112	9,656
Tradenames	174,849	175,434
Tradenames	174,849	175,434
Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Assets, Gross	26,676	26,675
Finite-Lived Intangible Assets, Accumulated Amortization	(10,912)	(9,080)
Finite-Lived Intangible Assets, Net	$ 15,764	$ 17,595

Note 5 - Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands	Oct. 02, 2022	Dec. 31, 2021
2022 (excluding the thirty-nine weeks ended October 2, 2022)	$ 3,697
2023	14,557
2024	13,744
2025	13,714
2026	13,608
Thereafter	194,235
Total	$ 253,555	$ 263,027

Note 6 - Debt (Details Textual) - USD ($) $ in Thousands		9 Months Ended
Note 6 - Debt (Details Textual) - USD ($) $ in Thousands	Nov. 18, 2021	Oct. 02, 2022
Revolving Credit Facility [Member]
Debt Instrument, Term (Year)	5 years
Line of Credit Facility, Maximum Borrowing Capacity	$ 125,000
Letter of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 10,000
Letters of Credit Outstanding, Amount		1,200
Delayed Draw Term Loan [Member]
Debt Instrument, Face Amount	100,000
Debt Instrument, Withdrawn Amount		57,000
First Lien Note Due November 17, 2028 [Member]
Debt Issuance Costs, Gross	$ 13,413
First Lien Note Due November 17, 2028 [Member] \| Term Loan [Member]
Debt Instrument, Term (Year)	7 years
Debt Instrument, Face Amount	$ 600,000
First Lien Note Due November 17, 2028 [Member] \| Delayed Draw Term Loan [Member]
Debt Instrument, Periodic Payment, Principal		$ 1,500
The Credit Agreement [Member]
Debt, Weighted Average Interest Rate		6.80%

Note 6 - Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Oct. 02, 2022	Dec. 31, 2021
Long-Term Debt, Gross	$ 653,614
Other	2,764	$ 3,812
Less unamortized debt issuance costs	(11,987)	(13,264)
Long-Term Debt, Total	641,627	645,548
Less current portion of long-term debt	(6,000)	(7,875)
Long-Term Debt, Excluding Current Maturities, Total	635,627	637,673
Revolving Credit Facility [Member]
Long-Term Debt, Gross	0	25,000
First Lien Note Due November 17, 2028 [Member]
Long-Term Debt, Gross	$ 650,850	$ 630,000

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

Note 6 - Debt - Future Maturities of Long-Term Debt and Amortization of Debt Issuance Cost (Details) - USD ($) $ in Thousands	Oct. 02, 2022	Dec. 31, 2021
2022 (excluding the thirty-nine weeks ended October 2, 2022), Future Maturities	$ 1,695
2022 (excluding the thirty-nine weeks ended October 2, 2022), Debt Issuance Cost Amortization	436
2023, Future Maturities	6,783
2023, Debt Issuance Cost Amortization	1,782
2024, Future Maturities	6,790
2024, Debt Issuance Cost Amortization	1,847
2025, Future Maturities	6,996
2025, Debt Issuance Cost Amortization	1,915
2026, Future Maturities	6,000
2026, Debt Issuance Cost Amortization	1,987
Thereafter, Future Maturities	625,350
Thereafter, Debt Issuance Cost Amortization	4,020
Future Maturities	653,614
Debt Issuance Cost Amortization	$ 11,987	$ 13,264

Note 7 - Common Stock Warrants (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Apr. 30, 2022	Oct. 02, 2022	Sep. 26, 2021	Oct. 02, 2022	Sep. 26, 2021	Dec. 31, 2021	Oct. 09, 2021
Class of Warrant or Right, Outstanding (in shares)							14,666,644
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right (in shares)							1
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)							$ 11.50
Warrants and Rights Outstanding, Term (Year)							5 years
Warrant Liability		$ 10,180		$ 10,180		$ 61,293
Fair Value Adjustment of Warrants		$ (30,171)	$ 17,273	$ (51,112)	$ 17,273
Public Warrants [Member]
Class of Warrant or Right, Outstanding (in shares)							9,999,977
Stock Issued During Period, Shares, Warrants Exercised (in shares)	33,333
Public Warrants [Member] \| Measurement Input, Share Price [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)		$ 0.01		$ 0.01
Share Price (in dollars per share)		18.00		18.00
Public Warrants [Member] \| Measurement Input Share Price1 [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)		0.10		0.10
Share Price (in dollars per share)		$ 10.00		$ 10.00
Private Placement Warrants [Member]
Class of Warrant or Right, Outstanding (in shares)							4,666,667

Note 8 - Fair Value Measurements - Schedule of Value Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Oct. 02, 2022	Dec. 31, 2021
Liability	$ 12,806	$ 87,889
Warrant Liability Public Warrants [Member]
Liability	6,428	39,500
Warrant Liability Private Placement Warrants [Member]
Liability	3,752	21,793
Earn Out Liability [Member]
Liability	2,626	26,596
Fair Value, Inputs, Level 1 [Member]
Liability	6,428	39,500
Fair Value, Inputs, Level 1 [Member] \| Warrant Liability Public Warrants [Member]
Liability	6,428	39,500
Fair Value, Inputs, Level 3 [Member]
Liability	6,378	48,389
Fair Value, Inputs, Level 3 [Member] \| Warrant Liability Private Placement Warrants [Member]
Liability	3,752	21,793
Fair Value, Inputs, Level 3 [Member] \| Earn Out Liability [Member]
Liability	$ 2,626	$ 26,596

Note 8 - Fair Value Measurements - Summary of Assumptions for Estimated Fair Value Using Monte Carlo Simulation Model (Details) - Monte Carlo Simulation Model [Member]	Oct. 02, 2022	Dec. 31, 2021
Measurement Input, Share Price [Member] \| Earn Out Liability [Member]
Alternative Investment, Measurement Input	4,050.00	12,990
Measurement Input, Share Price [Member] \| Warrant Liability Private Placement Warrants [Member]
Alternative Investment, Measurement Input	4,050.00	12,990
Measurement Input Strike Price [Member] \| Warrant Liability Private Placement Warrants [Member]
Alternative Investment, Measurement Input	11,500	11,500
Measurement Input, Expected Term [Member] \| Earn Out Liability [Member]
Alternative Investment, Measurement Input	5,790	6,540
Measurement Input, Expected Term [Member] \| Warrant Liability Private Placement Warrants [Member]
Alternative Investment, Measurement Input	3,790	4,540
Measurement Input, Price Volatility [Member] \| Earn Out Liability [Member]
Alternative Investment, Measurement Input	58,220	40,590
Measurement Input, Risk Free Interest Rate [Member] \| Earn Out Liability [Member]
Alternative Investment, Measurement Input	3,930	1,400
Measurement Input, Risk Free Interest Rate [Member] \| Warrant Liability Private Placement Warrants [Member]
Alternative Investment, Measurement Input	4,090.00	1,190
Measurement Input Price Hurdle One [Member] \| Earn Out Liability [Member]
Alternative Investment, Measurement Input		13,000.00
Measurement Input Price Threshold [Member] \| Warrant Liability Private Placement Warrants [Member]
Alternative Investment, Measurement Input	18,000.00	18,000.00
Measurement Input Price Hurdle Two [Member] \| Earn Out Liability [Member]
Alternative Investment, Measurement Input	15,000.00	15,000.00

Note 8 - Fair Value Measurements - Reconciliation of Changes (Details) - Fair Value, Inputs, Level 3 [Member] $ in Thousands	9 Months Ended
	Oct. 02, 2022 USD ($)
Balance at December 31, 2021	$ 48,389
Liabilities reclassed to equity	(14,689)
Losses included in earnings	(27,322)
Balance at October 2, 2022	6,378
Private Placement Warrants [Member]
Balance at December 31, 2021	21,793
Liabilities reclassed to equity	0
Losses included in earnings	(18,041)
Balance at October 2, 2022	3,752
Earn Out Liability [Member]
Balance at December 31, 2021	26,596
Liabilities reclassed to equity	(14,689)
Losses included in earnings	(9,281)
Balance at October 2, 2022	$ 2,626

Note 9 - Revenue - Summary of Revenue by Product Category (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Sep. 26, 2021	Oct. 02, 2022	Sep. 26, 2021
Net sales	$ 154,775	$ 159,673	$ 534,250	$ 513,046
Electronic Systems [Member]
Net sales	62,174	73,256	219,380	231,190
Mechanical System [Member]
Net sales	37,317	34,783	127,365	112,914
Exhaust [Member]
Net sales	15,183	17,023	52,552	60,365
Accessories [Member]
Net sales	24,561	20,651	81,660	60,592
Safety [Member]
Net sales	$ 15,540	$ 13,960	$ 53,293	$ 47,985

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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Note 9 - Revenue - Summary of Revenue Based on Geographic Location (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Sep. 26, 2021	Oct. 02, 2022	Sep. 26, 2021
Net sales	$ 154,775	$ 159,673	$ 534,250	$ 513,046
UNITED STATES
Net sales	150,155	155,626	519,728	501,196
ITALY
Net sales	$ 4,620	$ 4,047	$ 14,522	$ 11,850

Note 10 - Income Taxes (Details Textual)	3 Months Ended		9 Months Ended
Note 10 - Income Taxes (Details Textual)	Oct. 02, 2022	Sep. 26, 2021	Oct. 02, 2022	Sep. 26, 2021
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%	21.00%	21.00%
Effective Income Tax Rate Reconciliation, Percent, Total		9.90%	9.10%

Note 10 - Income Taxes - Schedule of Provision and Effective Tax rates (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Sep. 26, 2021	Oct. 02, 2022	Sep. 26, 2021
Income tax expense	$ (1,345)	$ (3,301)	$ 8,866	$ 7,255
Effective tax rates		9.90%	9.10%

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