GSI TECHNOLOGY INC 10-Q

Item 1. Financial Statements (unaudited) ​ GSI TECHNOLOGY, INC. ​ CONDENSED CONSOLIDATED BALANCE SHEET S ​ (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ March 31, ​ ​ 2025 ​ 2025 ​ ​ (In thousands, except share and per share amounts) ASSETS ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ ​ $ 70,672 ​ ​ ​ $ 13,434 Accounts receivable, net ​ 2,832 ​ 3,169 Inventories ​ 3,876 ​ 3,891 Prepaid expenses and other current assets ($ 375 and $ 375 from a related party) ​ ​ 1,933 ​ 2,961 Total current assets ​ 79,313 ​ 23,455 Property and equipment, net ​ 903 ​ 808 Operating lease right-of-use assets ​ ​ 8,590 ​ ​ 9,547 Goodwill ​ ​ 7,978 ​ ​ 7,978 Intangible assets, net ​ ​ 1,147 ​ ​ 1,323 Other assets ​ 529 ​ 206 Total assets $ 98,460 $ 43,317 LIABILITIES AND STOCKHOLDERS’ EQUITY ​ ​ ​ ​ ​ ​ Accounts payable ($ 0 and $ 8 to a related party) $ 1,015 $ 991 Lease liabilities, current ​ ​ 1,562 ​ ​ 1,642 Accrued expenses and other liabilities ​ 5,036 ​ 4,441 Total current liabilities ​ 7,613 ​ 7,074 Deferred tax liability ​ 17 ​ 16 Lease liabilities, non-current ​ ​ 7,210 ​ ​ 8,001 Total liabilities ​ 14,840 ​ 15,091 Commitments and contingencies (Note 9) ​ ​ ​ ​ ​ ​ Stockholders’ equity: ​ ​ ​ ​ ​ ​ Preferred stock: $ 0.001 par value authorized: 5,000,000 shares; issued and outstanding: none ​ — ​ — Common Stock: $ 0.001 par value authorized: 150,000,000 shares; issued and outstanding : 36,186,203 and 25,605,973 shares, respectively ​ 36 ​ 26 Additional paid-in capital ​ 127,298 ​ 63,492 Accumulated other comprehensive loss ​ ( 87 ) ​ ( 87 ) Retained deficit ​ ( 43,627 ) ​ ( 35,205 ) Total stockholders’ equity ​ 83,620 ​ 28,226 Total liabilities and stockholders’ equity $ 98,460 $ 43,317 ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ 2 Table of Contents ​ GSI TECHNOLOGY, INC. ​ CONDENSED CONSOLIDATED STATEMENTS OF OPERATION S ​ (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended December 31, ​ Nine Months Ended December 31, ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 ​ ​ (In thousands, except per share amounts) ​ (In thousands, except per share amounts) Net revenues ​ ​ $ 6,076 ​ ​ ​ $ 5,414 ​ ​ ​ $ 18,803 ​ ​ ​ $ 14,635 Cost of revenues ($ 0 , $ 55 , $ 40 and $ 77 to a related party) ​ 2,876 ​ 2,491 ​ 8,419 ​ 7,794 Gross profit ​ 3,200 ​ 2,923 ​ 10,384 ​ 6,841 Operating expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Research and development ​ 7,457 ​ ​ 4,037 ​ ​ 14,322 ​ ​ 13,039 Selling, general and administrative ​ 2,649 ​ ​ 2,997 ​ ​ 8,331 ​ ​ 8,154 Gain from sale of assets ​ ​ — ​ ​ ( 56 ) ​ ​ — ​ ​ ( 5,793 ) Total operating expenses ​ 10,106 ​ 6,978 ​ 22,653 ​ 15,400 Loss from operations ​ ​ ( 6,906 ) ​ ​ ( 4,055 ) ​ ​ ( 12,269 ) ​ ​ ( 8,559 ) Interest income, net ​ 298 ​ ​ 132 ​ ​ 471 ​ ​ 381 Gain on change in fair value of warrants liability ​ ​ 6,209 ​ ​ — ​ ​ 6,209 ​ ​ — Issuance costs associated with warrants liability ​ ​ ( 2,830 ) ​ ​ — ​ ​ ( 2,830 ) ​ ​ — Other expense, net ​ ( 42 ) ​ ​ ( 62 ) ​ ​ ( 159 ) ​ ​ ( 107 ) Loss before income taxes ​ ( 3,271 ) ​ ( 3,985 ) ​ ( 8,578 ) ​ ( 8,285 ) Provision (benefit) for income taxes ​ ( 251 ) ​ ​ 44 ​ ​ ( 156 ) ​ ​ 124 Net loss $ ( 3,020 ) $ ( 4,029 ) $ ( 8,422 ) $ ( 8,409 ) Net loss per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic $ ( 0.09 ) $ ( 0.16 ) $ ( 0.28 ) $ ( 0.33 ) Diluted $ ( 0.09 ) $ ( 0.16 ) $ ( 0.28 ) $ ( 0.33 ) Weighted average shares used in per share calculations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ 34,510 ​ 25,546 ​ ​ 30,381 ​ ​ 25,463 Diluted ​ 34,510 ​ 25,546 ​ ​ 30,381 ​ ​ 25,463 ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ 3 Table of Contents ​ GSI TECHNOLOGY, INC. ​ CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ​ (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended December 31, ​ Nine Months Ended December 31, ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 ​ ​ (In thousands) ​ (In thousands) Net loss ​ ​ $ ( 3,020 ) ​ ​ ​ $ ( 4,029 ) ​ ​ ​ $ ( 8,422 ) ​ ​ ​ $ ( 8,409 ) Net unrealized gain on available-for-sale investments ​ — ​ — ​ — ​ — Total comprehensive loss $ ( 3,020 ) $ ( 4,029 ) $ ( 8,422 ) $ ( 8,409 ) ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ 4 Table of Contents ​ GSI TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ Other ​ ​ ​ Total ​ ​ Common Stock ​ Paid-in ​ Comprehensive ​ Retained ​ Stockholders' ​ ​ ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ Capital ​ ​ ​ Loss ​ ​ ​ Deficit ​ ​ ​ Equity Three months ended December 31, 2025 ​ (In thousands, except share amounts) Balance, September 30, 2025 ​ 30,229,703 ​ $ 30 ​ $ 79,216 ​ $ ( 87 ) ​ $ ( 40,607 ) ​ $ 38,552 Issuance of common stock under employee stock option plans ​ 956,500 ​ ​ 1 ​ ​ 3,828 ​ ​ — ​ ​ — ​ ​ 3,829 Issuance of common stock net of issuance costs of $ 314 ​ 1,508,462 ​ ​ 2 ​ ​ 4,678 ​ ​ — ​ ​ — ​ ​ 4,680 Warrants exercised ​ 3,491,538 ​ ​ 3 ​ ​ 38,794 ​ ​ ​ ​ ​ ​ ​ ​ 38,797 Stock-based compensation expense ​ — ​ ​ — ​ ​ 782 ​ ​ — ​ ​ — ​ ​ 782 Net loss ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 3,020 ) ​ ​ ( 3,020 ) Balance, December 31, 2025 ​ 36,186,203 ​ $ 36 ​ $ 127,298 ​ $ ( 87 ) ​ $ ( 43,627 ) ​ $ 83,620 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ Other ​ ​ ​ Total ​ ​ Common Stock ​ Paid-in ​ Comprehensive ​ Retained ​ Stockholders' ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ Capital ​ ​ ​ Loss ​ ​ ​ Deficit ​ ​ ​ Equity Three months ended December 31, 2024 ​ ​ Balance, September 30, 2024 ​ 25,485,510 ​ $ 25 ​ $ 62,292 ​ $ ( 87 ) ​ $ ( 28,946 ) ​ $ 33,284 Issuance of common stock under employee stock option plans ​ 114,787 ​ ​ — ​ ​ 249 ​ ​ — ​ ​ — ​ ​ 249 Stock-based compensation expense ​ — ​ ​ — ​ ​ 429 ​ ​ — ​ ​ — ​ ​ 429 Net loss ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 4,029 ) ​ ​ ( 4,029 ) Balance, December 31, 2024 ​ 25,600,297 ​ $ 25 ​ $ 62,970 ​ $ ( 87 ) ​ $ ( 32,975 ) ​ $ 29,933 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ Other ​ ​ ​ ​ Total ​ ​ Common Stock ​ Paid-in ​ Comprehensive ​ Retained ​ Stockholders' ​ ​ ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ Capital ​ ​ ​ Loss ​ ​ ​ Deficit ​ ​ ​ Equity Nine months ended December 31, 2025 ​ (In thousands, except share amounts) Balance, March 31, 2025 ​ 25,605,973 ​ $ 26 ​ $ 63,492 ​ $ ( 87 ) ​ $ ( 35,205 ) ​ $ 28,226 Issuance of common stock pursuant to an At-the-Market offering, net of issuance costs of $ 573 ​ 4,508,350 ​ ​ 4 ​ ​ 14,264 ​ ​ — ​ ​ — ​ ​ 14,268 Issuance of common stock under employee stock option plans ​ 1,071,880 ​ ​ 1 ​ ​ 4,090 ​ ​ — ​ ​ — ​ ​ 4,091 Issuance of common stock net of issuance costs of $ 314 ​ 1,508,462 ​ ​ 2 ​ ​ 4,678 ​ ​ ​ ​ ​ ​ ​ ​ 4,680 Warrants exercised ​ 3,491,538 ​ ​ 3 ​ ​ 38,794 ​ ​ ​ ​ ​ ​ ​ ​ 38,797 Stock-based compensation expense ​ — ​ ​ — ​ ​ 1,980 ​ ​ — ​ ​ — ​ ​ 1,980 Net loss ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 8,422 ) ​ ​ ( 8,422 ) Balance, December 31, 2025 ​ 36,186,203 ​ $ 36 ​ $ 127,298 ​ $ ( 87 ) ​ $ ( 43,627 ) ​ $ 83,620 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ Other ​ ​ ​ Total ​ ​ Common Stock ​ Paid-in ​ Comprehensive ​ Retained ​ Stockholders' ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ Capital ​ ​ ​ Loss ​ ​ ​ Deficit ​ ​ ​ Equity Nine months ended December 31, 2024 ​ ​ Balance, March 31, 2024 ​ 25,300,372 ​ $ 25 ​ $ 60,598 ​ $ ( 87 ) ​ $ ( 24,566 ) ​ $ 35,970 Issuance of common stock under employee stock option plans ​ 299,925 ​ ​ — ​ ​ 622 ​ ​ — ​ ​ — ​ ​ 622 Stock-based compensation expense ​ — ​ ​ — ​ ​ 1,750 ​ ​ — ​ ​ — ​ ​ 1,750 Net loss ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 8,409 ) ​ ​ ( 8,409 ) Balance, December 31, 2024 ​ 25,600,297 ​ $ 25 ​ $ 62,970 ​ $ ( 87 ) ​ $ ( 32,975 ) ​ $ 29,933 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ 5 Table of Contents GSI TECHNOLOGY, INC. ​ CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW S ​ (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended December 31, ​ ​ 2025 ​ 2024 ​ ​ (In thousands) Cash flows from operating activities: ​ ​ ​ ​ ​ ​ Net loss ​ ​ $ ( 8,422 ) ​ $ ( 8,409 ) Adjustments to reconcile net loss to net cash used in operating activities: ​ ​ ​ ​ ​ ​ Allowance for credit losses and (recoveries) ​ ( 1 ) ​ 22 Provision for excess and obsolete inventories ​ 232 ​ 245 Non-cash lease expense ​ ​ 957 ​ ​ 787 Change in fair value of contingent consideration ​ ​ — ​ ​ ( 160 ) Depreciation and amortization ​ 465 ​ 511 Gain from sale of assets ​ ​ — ​ ​ ( 5,793 ) Change in fair value of warrants liability ​ ​ ( 6,209 ) ​ ​ — Stock-based compensation ​ 1,980 ​ 1,750 Changes in assets and liabilities: ​ ​ ​ ​ ​ ​ Accounts receivable ​ 338 ​ ( 487 ) Inventories ​ ( 217 ) ​ 847 Prepaid expenses and other assets ​ 705 ​ 596 Accounts payable ​ ( 24 ) ​ 23 Accrued expenses and other liabilities ​ ( 275 ) ​ ( 1,249 ) Net cash used in operating activities ​ ( 10,471 ) ​ ( 11,317 ) Cash flows from investing activities: ​ ​ ​ ​ ​ ​ Proceeds from sale of assets ​ ​ — ​ ​ 11,392 Purchases of property and equipment ​ ( 336 ) ​ ​ ( 41 ) Net cash provided by (used in) investing activities ​ ( 336 ) ​ 11,351 Cash flows from financing activities: ​ ​ ​ ​ ​ ​ Proceeds from issuance of common stock under At-the-Market offering, net of issuance costs of $ 573 ​ ​ 14,268 ​ ​ — Proceeds from common stock, net of issuance costs of $ 314 ​ ​ 4,678 ​ ​ — Proceeds from issuance of warrants ​ ​ 44,973 ​ ​ — Proceeds from warrants exercised ​ ​ 35 ​ ​ — Proceeds from issuance of common stock under employee stock plans ​ 4,091 ​ ​ 622 Net cash provided by financing activities ​ 68,045 ​ 622 Net increase in cash and cash equivalents ​ 57,238 ​ 656 Cash and cash equivalents at beginning of the period ​ 13,434 ​ ​ 14,429 Cash and cash equivalents at end of the period $ 70,672 $ 15,085 Non-cash investing and financing activities: ​ ​ ​ ​ ​ ​ Operating lease right-of-use assets exchanged for lease obligations ​ $ — ​ $ 9,092 Supplemental cash flow information: ​ ​ ​ ​ ​ ​ Net cash paid for income taxes $ 141 $ 195 ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ 6 Table of Contents ​ GSI TECHNOLOGY, INC. ​ NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ​ (Unaudited) ​ NOTE 1—THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ​ Basis of presentation ​ The accompanying unaudited condensed consolidated financial statements of GSI Technology, Inc. and its subsidiaries (“GSI” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. These interim financial statements contain all adjustments (which consist of only normal, recurring adjustments) that are, in the opinion of management, necessary to state fairly the interim financial information included therein. The Company believes that the disclosures are adequate to make the information not misleading. However, these financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025. ​ The consolidated results of operations for the nine months ended December 31, 2025 are not necessarily indicative of the results to be expected for the entire fiscal year. ​ Significant accounting policies ​ There have been no material changes to our significant accounting policies that were disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025. ​ Government Agreements ​ From time to time, the Company may enter into agreements with federal government agencies. GAAP does not have specific accounting standards covering agreements between the government and business entities. The Company applies International Accounting Standards 20 (“IAS 20”), Accounting for Government Grants and Disclosure of Government Assistance, by analogy when accounting for agreements entered into with the government. Under IAS 20, government grants or awards are initially recognized when there is reasonable assurance the conditions of the grant or award will be met and the grant or award will be received. After initial recognition, government grants or awards are recognized on a systematic basis in a manner consistent with the manner in which the Company recognizes the underlying costs for which the grant or award is intended to compensate. The Company follows ASC 832, Disclosures by Business Entities about Government Assistance, with respect to the disclosures of government grants or awards. ​ Credit Losses — Marketable Securities ​ For marketable securities in an unrealized loss position, the Company periodically assesses its portfolio for impairment. The assessment first considers the intent or requirement to sell the marketable security. If either of these criteria are met, the amortized cost basis is written down to fair value through earnings. ​ If the criteria above are not met, the Company evaluates whether the decline resulted from credit losses or other factors by considering the extent to which fair value is less than amortized cost, any changes to the rating of the marketable security by a rating agency, and any adverse conditions specifically related to the marketable security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the marketable security is compared to the amortized cost basis of the marketable security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss 7 Table of Contents exists and an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any other impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive loss. ​ Credit Losses — Accounts Receivable ​ Accounts receivable are recorded at the amounts billed less estimated allowances for credit losses for any potential uncollectible amounts. At December 31, 2025, three customers accounted for 41 %, 34 % and 15 % of our accounts receivable, respectively. If any of these customers do not pay us, our financial position and operating results will be harmed. The Company continually monitors customer payments and maintains an allowance for estimated losses resulting from a customer’s inability to make required payments. The Company considers factors such as historical experience, credit quality, age of the accounts receivable balances, and economic conditions that may affect a customer’s ability to pay. Accounts receivable are written-off and charged against an allowance for credit losses when the Company has exhausted collection efforts without success. ​ Warrant Liabilities ​ The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging.” For derivative financial instruments that are accounted for as liabilities, including warrant liabilities, the derivative instrument is initially recorded at its fair value on the issuance date and is then re-valued upon exercise or at each reporting date for unexercised warrants, with changes in the fair value reported in the condensed consolidated statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative warrant liabilities are classified as non-current liabilities as their liquidation is not reasonably expected to require the use of current assets or require the creation of current liabilities. ​ Risk and uncertainties ​ The challenging global economic environment due to, among other things, increased or new tariffs, export controls and other trade barriers and trade disputes, worldwide inflationary pressures and increasing geopolitical tensions, has affected the business activities of the Company, its customers, suppliers, and other business partners in the fiscal year ended March 31, 2025 and into the nine months ended December 31, 2025. ​ The Company believes that during the next 12 months disruptions in the capital markets as a result of increased or new tariffs, export controls and other trade barriers, trade disputes and increasing geopolitical tensions, worldwide inflationary pressures and the challenging global economic environment could impact general economic activity and demand in the Company’s end markets. ​ Accounting pronouncements not yet adopted by the Company In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740).” ASU No. 2023-09 improves the transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. It also includes certain other amendments to improve the effectiveness of income tax disclosures regarding (a) income or loss from continuing operations disaggregated between domestic and foreign and (b) income tax expense or benefit from continuing operations disaggregated by federal, state and foreign. ASU No. 2023-09 is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the disclosure requirements and its effect on the condensed consolidated financial statements. 8 Table of Contents In November 2024, the FASB issued ASU No. 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40).” ASU No. 2024-03 does not change the expense captions an entity presents on the face of the income statement; rather it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU No. 2024-03 requires footnote disclosure about specific expenses to disaggregate, in a tabular presentation, each relevant expense caption on the face of the income statement that includes any of the following natural expenses: (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization and (5) depreciation, depletion and amortization recognized as part of oil- and gas-production activities or other types of depletion expenses. The tabular disclosure would also include certain other expenses, when applicable. ASU No. 2024-03 does not change or remove existing expense disclosure requirements; however, it may affect where that information appears in the footnotes to the financial statements. ASU No. 2024-03 is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective application. Early adoption is permitted. The Company is currently evaluating the disclosure requirements and its effect on the condensed consolidated financial statements. In July 2025, the FASB issued Accounting Standards Update 2025-05, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (ASU 2025-05).” ASU 2025-05 provides a practical expedient that all entities can use when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606, Revenue from Contracts with Customers. Under this practical expedient, an entity is allowed to assume that the current conditions it has applied in determining credit loss allowances for current accounts receivable and current contract assets remain unchanged for the remaining life of those assets. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, and interim reporting periods in those years. Entities that elect the practical expedient and, if applicable, make the accounting policy election are required to apply the amendments prospectively. We are currently evaluating the potential impact of adopting ASU 2025-05 on our condensed consolidated financial statements and disclosures. In December 2025, the FASB issued ASU No. 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities (“ASU 2025-10”) to establish authoritative guidance on how to recognize, measure, and present government grants received by business entities. This ASU defines a government grant, establishes when and how a grant related to an asset or income is recognized and measured, and includes presentation and disclosure requirements. ASU 2025-10 is effective for annual periods beginning after December 15, 2028, or our fiscal 2030, and interim reporting periods within those annual reporting periods. We are currently evaluating the potential impact of adopting ASU 2025-10 on our condensed consolidated financial statements and disclosures. ​ ​ ​ NOTE 2—REVENUE RECOGNITION The Company determines revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, the Company satisfies a performance obligation. The Company’s customer contracts, which may be in the form of purchase orders, contracts or purchase agreements, contain performance obligations for delivery of agreed upon products. Delivery of all performance obligations contained within a contract with a customer typically occurs at the same time (or within the same accounting period). Transfer of control occurs at the point at which delivery has occurred, title and the risks and rewards of ownership have passed to the customer, and the Company has a right to payment. The Company recognizes revenue upon shipment of the product. Because all of the Company’s performance obligations relate to contracts with a duration of less than one year, the Company has elected to apply the optional exemption practical expedient and, therefore, is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. 9 Table of Contents The Company adjusts the transaction price for variable consideration. Variable consideration is not typically significant and primarily results from stock rotation rights and quick pay discounts provided to certain distributors. As a practical expedient, the Company recognizes the incremental costs of obtaining a contract, specifically commission expenses that have a period of benefit of less than twelve months, as an expense when incurred. Additionally, the Company has adopted an accounting policy to recognize shipping costs that occur after control transfers to the customer as a fulfillment activity. The Company’s contracts with customers do not typically include extended payment terms. Payment terms vary by contract type and type of customer and generally range from 30 to 60 days from shipment. Additionally, the Company has right to payment upon shipment. The Company records revenue net of sales tax, value added tax, excise tax and other taxes collected concurrent with product sales. The impact of such taxes on product sales is immaterial. The Company warrants its products to be free of defects generally for a period of three years . The Company estimates its warranty costs based on historical warranty claim experience and includes such costs in cost of revenues. Warranty costs and the accrued warranty liability were not material in all periods presented. Substantially all of the Company’s revenue is derived from sales of SRAM products, which represent approximately 99 % and 99 % of total revenues in the nine months ended December 31, 2025 and 2024. Nokia, the Company’s largest end user customer in fiscal 2024 and 2023, purchases products directly from the Company and through contract manufacturers and distributors. Based on information provided to the Company by its contract manufacturers and distributors, purchases by Nokia represented approximately 11 % and 4 % of the Company’s net revenues in the three months ended December 31, 2025 and 2024, respectively and 8 % and 14 % of the Company’s net revenue in the nine months ended December 31, 2025 and 2024, respectively. Based on information provided to the Company by its contract manufacturers and distributors, purchases by KYEC, which was the Company’s largest end user customer in fiscal 2025, represented approximately 18 % and 23 % of the Company’s net revenues in the three months ended December 31, 2025 and 2024, respectively and 11 % and 20 % of the Company’s net revenue in the nine months ended December 31, 2025 and 2024, respectively. Based on information provided to the Company by its contract manufacturers and distributors, purchases by Cadence Design Systems represented approximately 4 % and 18 % of the Company’s net revenues in the three months ended December 31, 2025 and 2024, respectively and 17 % and 7 % of the Company’s net revenue in the nine months ended December 31, 2025 and 2024, respectively. See “Note 12 — Segment and Geographic Information” for revenue by shipment destination. The following table presents the Company’s revenue disaggregated by customer type. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended December 31, ​ Nine Months Ended December 31, ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 ​ ​ (In thousands) ​ (In thousands) Contract manufacturers ​ ​ $ 329 ​ ​ $ 333 ​ ​ $ 1,003 ​ ​ $ 1,403 Distribution ​ ​ 5,617 ​ ​ 5,055 ​ ​ 17,457 ​ ​ 13,161 OEMs ​ ​ 130 ​ ​ 26 ​ ​ 343 ​ ​ 71 ​ ​ $ 6,076 ​ $ 5,414 ​ $ 18,803 ​ $ 14,635 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 10 Table of Contents NOTE 3—NET LOSS PER COMMON SHARE ​ The Company uses the treasury stock method to calculate the weighted average shares used in computing diluted net loss per share. The following table sets forth the computation of basic and diluted net loss per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended December 31, ​ Nine Months Ended December 31, ​ ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands, except per share amounts) ​ (In thousands, except per share amounts) Net loss ​ $ ( 3,020 ) ​ ​ ​ $ ( 4,029 ) ​ ​ ​ $ ( 8,422 ) ​ ​ ​ $ ( 8,409 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominators: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares—Basic ​ 34,510 ​ ​ 25,546 ​ ​ 30,381 ​ ​ 25,463 Dilutive effect of employee stock options ​ ​ — ​ ​ — ​ ​ — ​ ​ — Dilutive effect of employee stock purchase plan options ​ — ​ ​ — ​ ​ — ​ ​ — Weighted average shares—Dilutive ​ 34,510 ​ 25,546 ​ 30,381 ​ 25,463 Net loss per common share—Basic $ ( 0.09 ) $ ( 0.16 ) $ ( 0.28 ) ​ $ ( 0.33 ) Net loss per common share—Diluted $ ( 0.09 ) $ ( 0.16 ) $ ( 0.28 ) ​ $ ( 0.33 ) ​ The following shares of common stock underlying outstanding stock options and unissued ESPP shares, determined on a weighted average basis, were excluded from the computation of diluted net loss per share as they had an anti-dilutive effect: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended December 31, ​ Nine Months Ended December 31, ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 ​ ​ (In thousands) ​ (In thousands) Shares underlying options and ESPP shares ​ ​ 3,428 ​ 7,429 ​ 5,898 ​ 7,725 ​ ​ NOTE 4—BALANCE SHEET DETAIL ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ March 31, 2025 ​ ​ (In thousands) Inventories: ​ ​ Work-in-progress ​ ​ $ 2,089 ​ ​ ​ $ 1,769 Finished goods ​ 1,785 ​ 2,122 Inventory at distributors ​ 2 ​ — ​ $ 3,876 $ 3,891 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ March 31, 2025 ​ ​ (In thousands) Accounts receivable, net: ​ ​ ​ ​ ​ ​ Accounts receivable ​ ​ $ 2,877 ​ ​ ​ $ 3,215 Less: Allowances for credit losses ​ ( 45 ) ​ ( 46 ) ​ $ 2,832 $ 3,169 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ March 31, 2025 ​ ​ (In thousands) Prepaid expenses and other current assets: ​ ​ ​ ​ ​ ​ Prepaid tooling and masks ​ $ 1,019 ​ $ 1,834 Other receivables ​ ​ 125 ​ ​ 695 Other prepaid expenses and other current assets ​ ​ 789 ​ ​ 432 ​ ​ $ 1,933 ​ $ 2,961 ​ ​ 11 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ March 31, 2025 ​ ​ (In thousands) Property and equipment, net: ​ ​ ​ ​ ​ ​ Computer and other equipment ​ $ 18,116 ​ $ 17,733 Software ​ ​ 4,426 ​ ​ 4,426 Furniture and fixtures ​ ​ 102 ​ ​ 102 Leasehold improvements ​ ​ 927 ​ ​ 927 ​ ​ ​ 23,571 ​ ​ 23,188 Less: Accumulated depreciation ​ ​ ( 22,668 ) ​ ​ ( 22,380 ) ​ ​ $ 903 ​ $ 808 ​ Depreciation expense was $ 104,000 and $ 100,000 for the three months ended December 31, 2025 and 2024, respectively and $ 289,000 and $ 336,000 for the nine months ended December 31, 2025 and 2024, respectively. ​ ​ The following tables summarize the components of intangible assets and related accumulated amortization balances at December 31, 2025 and March 31, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2025 ​ ​ ​ ​ Gross Carrying Amount ​ ​ ​ Accumulated Amortization ​ ​ ​ Net Carrying Amount Intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Product designs ​ $ 590 ​ $ ( 590 ) ​ $ — Patents ​ ​ 4,220 ​ ​ ( 3,073 ) ​ ​ 1,147 Software ​ ​ 80 ​ ​ ( 80 ) ​ ​ — Total ​ $ 4,890 ​ $ ( 3,743 ) ​ $ 1,147 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, 2025 ​ ​ ​ ​ Gross Carrying Amount ​ ​ ​ Accumulated Amortization ​ ​ ​ Net Carrying Amount Intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ Product designs ​ $ 590 ​ $ ( 590 ) ​ $ — Patents ​ ​ 4,220 ​ ​ ( 2,897 ) ​ ​ 1,323 Software ​ ​ 80 ​ ​ ( 80 ) ​ ​ — Total ​ $ 4,890 ​ $ ( 3,567 ) ​ $ 1,323 ​ Amortization of intangible assets included in cost of revenues was $ 59,000 and $ 59,000 for the three months ended December 31, 2025 and 2024, respectively and $ 176,000 and $ 175,000 for the nine months ended December 31, 2025 and 2024, respectively. ​ The Company reviews identifiable amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. There were no impairment indicators noted as of December 31, 2025. ​ 12 Table of Contents As of December 31, 2025, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands): ​ ​ ​ ​ ​ Fiscal year ending March 31, ​ ​ 2026 (remaining three months) ​ $ 58 2027 ​ ​ 233 2028 ​ ​ 233 2029 ​ ​ 233 2030 ​ ​ 233 Thereafter ​ ​ 157 Total ​ $ 1,147 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ March 31, 2025 ​ ​ (In thousands) Accrued expenses and other liabilities: ​ ​ ​ ​ ​ ​ Accrued compensation ​ $ 3,067 ​ $ 2,488 Accrued commissions ​ ​ 91 ​ ​ 85 Production mask set ​ ​ — ​ ​ 1,250 Purchased IP ​ ​ 1,529 ​ ​ — Miscellaneous accrued expenses ​ ​ 349 ​ ​ 618 ​ ​ $ 5,036 ​ $ 4,441 ​ In August 2024, the Company implemented strategic cost-cutting measures. These initiatives consisted of workforce reductions across all departments and enhanced operational efficiencies. The cost reduction initiatives included an approximate 16 % reduction in the Company’s global workforce. There were no severance related charges in the three and nine months ended December 31, 2025. The Company incurred $ 357,000 in severance related charges during the nine months ended December 31, 2024, including $ 204,000 recorded as cost of revenues, $ 128,000 recorded as research and development expense and $ 24,000 recorded as selling, general and administrative expense in the condensed consolidated statements of operations. The Company does not expect to incur any additional severance related charges resulting from these measures. There were no severance charges accrued as of December 31, 2025 and March 31, 2025 as severance payments to all impacted employees have been completed as of March 31, 2025. ​ ​ ​ NOTE 5—GOODWILL Goodwill represents the difference between the purchase price and the estimated fair value of the identifiable assets acquired and liabilities assumed in a business combination. The Company tests for goodwill impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset is more likely than not impaired. The Company assesses goodwill for impairment on an annual basis on the last day of February in the fourth quarter of its fiscal year. The Company has one reporting unit. The Company had a goodwill balance of $ 8.0 million as of both December 31, 2025 and March 31, 2025. The goodwill resulted from the acquisition of MikaMonu Group Ltd. in fiscal 2016. ​ The Company completed its annual impairment test during the fourth quarter of fiscal 2025 and concluded that there was no impairment, as it was more likely than not that the fair value of its sole reporting unit exceeded its carrying value and the performance of a quantitative impairment test was not required. ​ ​ ​ ​ ​ NOTE 6—INCOME TAXES ​ Due to historical losses in the United States, the Company has a full valuation allowance on its United States federal and state deferred tax assets. Management continues to evaluate the realizability of deferred tax assets and the related valuation allowance. ​ 13 Table of Contents Management believes that within the next twelve months there will be no reduction in uncertain tax benefits as a result of the lapse of statutes of limitations. ​ The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the provision for income taxes in the Condensed Consolidated Statements of Operations. ​ The Company is subject to taxation in the United States and various state and foreign jurisdictions. Fiscal years 2013 through 2024 remain open to examination by federal tax authorities, and fiscal years 2011 through 2024 remain open to examination by California tax authorities. Fiscal years 2020 through 2024 are subject to audit by the Israeli tax authorities. ​ For the nine months ended December 31, 2025 and December 31, 2024, the Company incurred income tax expense (benefit) of ($ 156,000 ) and $ 124,000 on net losses before income taxes of ($ 8.6 million) and ($ 8.3 million), respectively. The provision was calculated using the annualized effective tax rate method. The Company’s estimated annual effective income tax rate, excluding discrete items, was approximately 0.84 % and ( 1.66 %) for the nine months ended December 31, 2025 and 2024, respectively. The annual effective tax rates for the nine months ended December 31, 2025 and 2024 vary from the United States statutory income tax rate primarily due to valuation allowances in the United States, whereby pre-tax losses do not result in the recognition of corresponding income tax benefits and foreign tax differential. ​ NOTE 7—FINANCIAL INSTRUMENTS ​ Fair value measurements ​ Authoritative accounting guidance for fair value measurements provides a framework for measuring fair value and related disclosures. The guidance applies to all financial assets and financial liabilities that are measured on a recurring basis. The guidance requires fair value measurement to be classified and disclosed in one of the following three categories: ​ Level 1: Valuations based on quoted prices in active markets for identical assets and liabilities. The fair value of available-for-sale securities included in the Level 1 category is based on quoted prices that are readily and regularly available in an active market. ​ Level 2: Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. The fair value of available-for-sale securities included in the Level 2 category is based on the market values obtained from an independent pricing service that were evaluated using pricing models that vary by asset class and may incorporate available trade, bid and other market information and price quotes from well-established independent pricing vendors and broker-dealers. ​ Level 3: Valuations based on inputs that are unobservable and involve management judgment and the reporting entity’s own assumptions about market participants and pricing. ​ The fair value of financial assets measured on a recurring basis is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at Reporting Date Using ​ ​ ​ ​ ​ Quoted Prices ​ Significant ​ ​ ​ ​ ​ ​ ​ in Active ​ Other ​ Significant ​ ​ ​ ​ ​ Markets for ​ Observable ​ Unobservable ​ ​ ​ ​ ​ Identical Assets ​ Inputs ​ Inputs ​ ​ ​ ​ December 31, 2025 ​ ​ ​ (Level 1) ​ ​ ​ (Level 2) ​ ​ ​ (Level 3) Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 52,278 ​ $ 52,278 ​ $ — ​ $ — Total ​ $ 52,278 ​ $ 52,278 ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 14 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at Reporting Date Using ​ ​ ​ ​ ​ Quoted Prices ​ Significant ​ ​ ​ ​ ​ ​ ​ in Active ​ Other ​ Significant ​ ​ ​ ​ ​ Markets for ​ Observable ​ Unobservable ​ ​ ​ ​ ​ Identical Assets ​ Inputs ​ Inputs ​ ​ ​ ​ March 31, 2025 ​ ​ ​ (Level 1) ​ ​ ​ (Level 2) ​ ​ ​ (Level 3) Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 4,836 ​ $ 4,836 ​ $ — ​ $ — Total ​ $ 4,836 ​ $ 4,836 ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ There were no unrealized gains or unrealized losses for money market funds as of December 31, 2025 or March 31, 2025. ​ The following table sets forth the changes in fair value of contingent consideration for the nine months ended December 31, 2025 and 2024, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (In thousands) Contingent consideration, beginning of period ​ $ — ​ $ 160 Change due to accretion ​ ​ — ​ ​ 8 Re-measurement of contingent consideration ​ ​ — ​ ​ ( 168 ) Contingent consideration, end of period ​ $ — ​ $ — ​ Short-term investments ​ The Company had money market funds of $ 52.3 million and $ 4.8 million at December 31, 2025 and March 31, 2025, respectively, included in cash and cash equivalents on the Condensed Consolidated Balance Sheets. The Company monitors its investments for impairment periodically and records appropriate reductions in carrying values when declines are determined to be other-than-temporary. There were no available-for-sale investments at December 31, 2025 or March 31, 2025, respectively. ​ ​ ​ NOTE 8—LEASES ​ The Company has operating leases for corporate offices and research and development facilities. The Company’s leases have remaining lease terms of 8 months to 101 months , some of which include options to extend for up to 10 years . ​ On June 6, 2024, the Company completed a sale and leaseback transaction pursuant to a previously executed purchase and sale agreement (the “Agreement”) with an unrelated party, as purchaser, for the sale of the Company’s 1213 Elko Drive property in Sunnyvale, California (the “Sunnyvale Property”) for a purchase price, net of closing and other expenses payable by the Company, of $ 11.3 million in cash. Concurrent with the sale, the Company entered into a lease agreement (the “Lease”) to lease all of the Sunnyvale Property that it occupied from the purchaser for an initial term of ten years from the closing of the sale of the Sunnyvale Property. The Company has the option to renew the term of the Lease for two additional five-year periods. Pursuant to the Lease, the Company is responsible for base rent initially at a rate of approximately $ 90,768 per month and the monthly operational expenses, such as maintenance, insurance, property taxes and utilities. The rental rate increases three percent (3%) per year beginning on June 30, 2025. The transaction was accounted for as a sale and leaseback and operating lease accounting classification. The Company recorded a gain of $ 5.7 million that was recorded in the gain from sale of assets in the Condensed Consolidated Statements of Operations in the quarter ended June 30, 2024. ​ 15 Table of Contents Supplemental balance sheet information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of ​ As of ​ ​ December 31, 2025 ​ ​ ​ March 31, 2025 ​ ​ (In thousands) Operating Leases ​ ​ ​ ​ ​ ​ Operating lease right-of-use assets ​ $ 8,590 ​ $ 9,547 ​ ​ ​ ​ ​ ​ ​ Lease liabilities-current ​ $ 1,562 ​ $ 1,642 Lease liabilities-non-current ​ ​ 7,210 ​ ​ 8,001 Total operating lease liabilities ​ $ 8,772 ​ $ 9,643 ​ The following table provides the details of lease costs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended December 31, ​ Nine Months Ended December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (In thousands) ​ (In thousands) Operating lease cost ​ $ 469 ​ $ 458 ​ $ 1,402 ​ $ 1,149 Short-term lease cost ​ ​ 7 ​ ​ 10 ​ ​ 20 ​ ​ 27 ​ ​ $ 476 ​ $ 468 ​ $ 1,422 ​ $ 1,176 ​ The following table provides other information related to leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended December 31, ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (In thousands) Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 1,305 ​ $ 1,053 ​ ​ ​ ​ ​ ​ ​ Right-of-use assets obtained in exchange for lease obligations ​ ​ ​ ​ ​ ​ Operating leases ​ $ — ​ $ 9,092 ​ ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term (years): ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 8.00 ​ ​ 8.75 ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate: ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 6.29 % ​ ​ 6.21 % ​ 16 Table of Contents The following table provides the maturities of the Company’s operating lease liabilities as of December 31, 2025: ​ ​ ​ ​ ​ ​ ​ Operating Lease ​ ​ Liabilities Fiscal Year ​ (In thousands) 2026 (remaining three months) ​ $ 339 2027 ​ ​ 1,631 2028 ​ ​ 1,192 2029 ​ ​ 1,220 2030 ​ ​ 1,257 Thereafter ​ ​ 5,651 Total undiscounted future cash flows ​ ​ 11,290 Less: Imputed interest ​ ​ ( 2,518 ) Present value of undiscounted future cash flows ​ $ 8,772 ​ ​ ​ ​ Presentation on statement of financial position ​ ​ ​ Current ​ $ 1,562 Non-current ​ $ 7,210 ​ ​ ​ NOTE 9—COMMITMENTS AND CONTINGENCIES ​ Indemnification obligations ​ The Company is a party to a variety of agreements pursuant to which it may be obligated to indemnify the other party with respect to certain matters. Typically, these obligations arise in the context of contracts entered into by the Company, under which the Company agrees to hold the other party harmless against losses arising from a breach of representations and covenants related to such matters as title to assets sold and certain intellectual property rights. In each of these circumstances, payment by the Company is conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party’s claims. Further, the Company’s obligations under these agreements may be limited in terms of time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments made by it under these agreements. ​ It is not possible to predict the maximum potential amount of future payments that may be required under these or similar agreements due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material effect on its business, financial condition, cash flows or results of operations. ​ ​ NOTE 10—STOCK-BASED COMPENSATION ​ As of December 31, 2025, 2,280,755 shares of common stock were available for grant under the Company’s Amended and Restated 2016 Equity Incentive Plan. ​ 17 Table of Contents The following table summarizes the Company’s stock option activities for the nine months ended December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Shares ​ Average ​ Weighted ​ ​ Weighted ​ ​ Shares ​ Underlying ​ Remaining ​ Average ​ ​ Average Grant ​ ​ Available for ​ Options ​ Contractual ​ Exercise ​ Date Fair ​ ​ ​ ​ Grant ​ ​ ​ Outstanding ​ ​ ​ Life (Years) ​ ​ ​ Price ​ ​ ​ Value Per Share Balance at March 31, 2025 ​ 3,095,976 ​ 7,636,716 ​ ​ ​ $ 5.03 ​ $ 2.11 Granted ​ ( 954,499 ) ​ 954,499 ​ ​ ​ $ 4.74 ​ $ 3.76 Exercised ​ — ​ ( 893,963 ) ​ ​ ​ $ 4.08 ​ $ 1.66 Forfeited ​ 139,278 ​ ( 509,641 ) ​ ​ ​ $ 4.60 ​ $ 1.89 Balance at December 31, 2025 ​ 2,280,755 ​ 7,187,611 ​ 5.60 ​ $ 5.13 ​ $ 2.40 Options vested and exercisable ​ ​ ​ 5,055,394 ​ 4.44 ​ $ 5.58 ​ $ 2.24 Options vested and expected to vest ​ ​ ​ 7,137,697 ​ 5.58 ​ $ 5.14 ​ $ 2.40 Options unvested ​ ​ ​ 2,132,217 ​ 8.33 ​ $ 4.08 ​ $ 2.80 ​ The aggregate intrinsic value of options exercised during the nine month period ended December 31, 2025 was $ 3,983,345 . ​ The following table summarizes stock-based compensation expense by line item in the Condensed Consolidated Statements of Operations, all relating to employee stock plans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended December 31, ​ Nine Months Ended December 31, ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 ​ ​ (In thousands) ​ (In thousands) Cost of revenues ​ $ 61 ​ $ 50 ​ $ 163 ​ $ 157 Research and development ​ ​ 358 ​ ​ 121 ​ ​ 599 ​ ​ 747 Selling, general and administrative ​ ​ 363 ​ ​ 258 ​ ​ 1,218 ​ ​ 846 ​ ​ $ 782 ​ $ 429 ​ $ 1,980 ​ $ 1,750 ​ ​ NOTE 11—RELATED PARTY TRANSACTIONS ​ The Company incurred manufacturing services of approximately $ 0 and $ 55,000 during the three months ended December 31, 2025 and 2024, respectively, and $ 40,000 and $ 77,000 for the nine months ended December 31, 2025 and 2024, respectively, from Wistron Neweb Corp (“WNC”) in connection with the manufacturing of single-APU PCIe boards, to be used in the Company’s in-place associative computing product. Haydn Hsieh, a member of the Company’s board of directors, is the Chairman and Chief Strategy Officer of WNC. The amount owed to WNC, $ 0 and $ 8,000 at December 31, 2025 and March 31, 2025, respectively, is included in accounts payable in the Condensed Consolidated Balance Sheets. ​ NOTE 12—SEGMENT AND GEOGRAPHIC INFORMATION ​ Based on its operating management and financial reporting structure, the Company has determined that it has one reportable business segment: the design, development and sale of integrated circuits. ​ The key measure of segment profit or loss utilized by the CODM to assess performance of and allocate resources to the Company’s operating segment is consolidated net income (loss). Net income (loss) is used in monitoring budget versus actual results. This measure is presented on the condensed consolidated statements of operations and comprehensive loss. Significant segment expenses included in net income (loss) include cost of revenue, research and development, selling, general and administrative expense, interest income, other income (expense), net, and income tax provision, which are presented on the condensed consolidated statements of operations and comprehensive loss. The measure of segment assets is reported on the condensed consolidated balance sheets as total consolidated assets. 18 Table of Contents The following is a summary of net revenues by geographic area based on the location to which product is shipped: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended December 31, ​ Nine Months Ended December 31, ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 ​ ​ (In thousands) ​ (In thousands) United States ​ ​ $ 2,462 ​ ​ $ 2,469 ​ ​ $ 10,348 ​ ​ $ 5,919 China ​ ​ 1,301 ​ ​ 1,547 ​ ​ 2,700 ​ ​ 3,442 Singapore ​ ​ 816 ​ ​ 291 ​ ​ 1,924 ​ ​ 1,571 Netherlands ​ ​ 159 ​ ​ 185 ​ ​ 368 ​ ​ 458 Germany ​ ​ 1,001 ​ ​ 784 ​ ​ 2,624 ​ ​ 2,692 Rest of the world ​ ​ 337 ​ ​ 138 ​ ​ 839 ​ ​ 553 ​ ​ $ 6,076 ​ $ 5,414 ​ $ 18,803 ​ $ 14,635 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ All sales are denominated in United States dollars. ​ NOTE 13—GOVERNMENT AGREEMENTS ​ In June 2023, the Company entered into a prototype agreement with the Space Development Agency for the development of a Next-Generation Associative Processing Unit-2 for Enhanced Space-Based Capabilities (“SDA Agreement”). Under the SDA Agreement, the Company will receive an award funded by the Small Business Innovation Research program. Pursuant to an agreed-upon schedule, the Company will receive milestone payments which total an estimated $ 1.25 million upon successful completion of each milestone, all of the original milestones were completed at December 31, 2025. In September 2025, the prototype agreement was amended to increase the total award amount to $ 2.0 million by adding milestones related to determining the radiation hardened capability of the APU2 device. ​ In November 2023, the Company entered into a second prototype agreement with the U.S. Air Force Research Laboratory (“AFRL”) for the development of specialized algorithms for a Next-Generation Compute-In-Memory Associative Processing Unit (APU2) to Enable High-Performance Computing in Space. Pursuant to an agreed-upon schedule, the Company will receive milestone payments which total an estimated $ 1.1 million upon successful completion of each milestone, of which $ 48,000 remains at December 31, 2025. In October 2024, the Company was selected by the U.S. Army for a potential contract award of up to $ 250,000 under the DoD SBIR program to develop advanced, Army-specific edge computing AI solutions using its groundbreaking Gemini-II technology. The prototype agreements are unrelated to the Company’s ordinary business activities. The Company has discretion in managing the activities under the prototype agreements and retains all developed intellectual property. The Company applies IAS 20, by analogy, and recognizes the award as a reduction of research and development expenses based on a cost incurred method. During the three and nine months ended December 31, 2025, the Company recognized $ 180,000 and $ 1.0 million, respectively, as a reduction to research and development expense in the Condensed Consolidated Statements of Operations compared to $ 0 and $ 318,000 , respectively, in the three and nine months ended December 31, 2024. During the nine months ended December 31, 2025 and 2024, the Company received total milestone payments of $ 1.6 million and $ 281,000 , respectively. ​ NOTE 14—WARRANTS ​ On October 21, 2025, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with an institutional investor (the “Purchaser”) pursuant to which the Company agreed to issue and sell, in a registered direct offering (the “Registered Direct Offering”) an aggregate of (i) 1,508,462 shares (the “Shares”) of the Company’s common stock, $ 0.001 par value per share (the “Common Stock”) at a price of $ 10.00 per Share and (ii) pre-funded warrants to purchase 3,491,538 shares of Common Stock (the “Pre-Funded Warrants” 19 Table of Contents and, collectively with the Shares, the “Offered Securities”). Each of the Pre-Funded Warrants is exercisable for one share of Common Stock at the exercise price of $ 0.01 per Pre-Funded Warrant, immediately exercisable, and may be exercised at any time. The Purchaser’s ability to exercise its Pre-Funded Warrants in exchange for shares of Common Stock is subject to certain beneficial ownership limitations set forth therein. The Pre-Funded Warrants were classified as a liability upon issuance. All of the Pre-Funded Warrants were exercised during the quarter ended December 31, 2025 resulting in a gain of $ 6.2 million on the change in the fair value of the Pre-Funded Warrants. ​ The gross proceeds to the Company from the Registered Direct Offering were $ 50.0 million, before deducting the placement agents’ fees and other offering expenses payable by the Company of $ 3.1 million. The Registered Direct Offering closed on October 22, 2025. ​ ​ ​