−Removed: Netlist provides high-performance memory solutions to enterprise customers in diverse industries.
−Removed: Our products, in various capacities and form factors, including our line of custom and specialty memory products, bring leading performance to customers in a variety of industries globally.
−Removed: Netlist also licenses its intellectual property.
+Added: We are a leading innovator in advanced memory and storage solutions, pushing the boundaries of technology to deliver unparalleled performance and reliability.
+Added: With a rich portfolio of patented technologies, we have consistently driven innovation in the field of cutting-edge enterprise memory and storage, advancing artificial intelligence (“AI”) and empowering businesses and industries to thrive in the digital age.
The global high-performance memory market is driven by increasing demand from data center and enterprise storage applications for improved input/output performance, lower latency, and increased redundant persistent data storage capacities.
16 unchanged sentences
Early in our company’s history of research and development efforts, we developed innovative solutions for improving memory performance by increasing the precision of voltage regulation.
−Removed: Netlist rethought the way power management is handled for each memory module within a system, by moving power management capabilities away from the host system and onto the modules themselves.
−Removed: The result was improved granularity of system power loading,
−Removed: which could translate to improved efficiency and higher data transfer speed.
+Added: We rethought the way
+Added: power management is handled for each memory module within a system, by moving power management capabilities away from the host system and onto the modules themselves.
+Added: The result was improved granularity of system power loading, which could translate to improved efficiency and higher data transfer speed.
Relocating power management functionality onto modules allows multiple distinct devices on a single module to receive power and operate harmoniously.
−Removed: While many in the memory industry have now adopted Netlist’s approach for their DDR5-based DIMMs, our NVvault products have incorporated localized power management for many years.
+Added: While many in the memory industry have now adopted our approach for their DDR5-based DIMMs, our NVvault products have incorporated localized power management for many years.
Design Expertise
20 unchanged sentences
Traditional memory channel bandwidth and capacities can no longer keep up with host central processing unit needs.
−Removed: As this space matures, we believe that CXL technology will allow larger memory pools to be placed further away from the host central processing unit and still be seamlessly utilized with the traditional channel memory.
+Added: this space matures, we believe that CXL technology will allow larger memory pools to be placed further away from the host central processing unit and still be seamlessly utilized with the traditional channel memory.
Our commercially available memory subsystem products and other products that we sell include:
20 unchanged sentences
Customers are generally allowed limited rights of return for up to 30 days, except for sales of excess inventories, which contain no right-of-return privileges.
−Removed: Additionally, we offer warranties on our memory subsystems generally ranging from one to five years, depending on the product and negotiated terms of purchase orders from our customers.
+Added: Additionally, warranties are passed through from the manufacturers to customers for resale products.
+Added: We offer warranties on our Netlist branded memory subsystems generally ranging from one to five years, depending on the product and negotiated terms of purchase orders from our customers.
These warranties require us to repair or replace defective products returned to us during such warranty period at no cost to the customer.
7 unchanged sentences
Manufacturing
−Removed: We manufacture memory subsystem products at our facility in the People’s Republic of China (“PRC”), which is certified in International Organization for Standardization (“ISO”) 9001:2008 Quality Management Systems and ISO 14001:2004 Environmental Management Standards.
−Removed: Our in-house manufacturing function, combined with our engineering and design capabilities, allows us to assemble our memory subsystems quickly and in high volume.
−Removed: Our manufacturing facility is capable of surface mount assembly, subsystem testing, system-level burn-in testing, programming, marking, labeling and packaging.
+Added: We utilize third-party manufacturing facilities in the People’s Republic of China (“PRC”), Taiwan and Korea where we produce our products.
+Added: Our manufacturing expertise, combined with our engineering and design capabilities, allows us to support our customers quickly and in high volume.
+Added: Our products are produced on surface mount assemblies and undergo subsystem testing, system-level burn-in testing, programming, marking, labeling and packaging.
Manufacturing cycle times for our memory subsystem products, from receipt of order, are typically one week or less and in some cases as short as two days.
−Removed: We schedule production based on purchase order commitments and anticipated orders.
−Removed: We release raw materials to the manufacturing floor by means of an online shop floor control system, which allows for internal quality analysis, direct access to inventory information and production floor material tracking.
−Removed: We have a flexible manufacturing workforce, which allows us to manage unforecasted demand.
We perform ongoing reliability testing on our memory subsystems and share the results of that testing with our customers.
8 unchanged sentences
Our quality assurance engineers work with our suppliers to ensure that the raw materials we receive meet our quality standards.
−Removed: These engineers also perform on-site supplier factory audits and use our internal test and inspection systems to verify that purchased components and materials meet
−Removed: our specifications.
+Added: These engineers also perform on-site supplier factory audits and use our internal test and inspection systems to verify that purchased components and materials meet our specifications.
Our supplier quality program and incoming material quality control program are important aspects of our manufacturing and sale processes.
−Removed: As of December 30, 2023, we had over 100 patents.
+Added: As of December 28, 2024, we had over 100 issued and pending patents.
Our issued patents cover various aspects of our innovations and include various claim scopes and, as a result, we believe our business is not materially dependent on any one claim in any of our existing patents or pending patent applications.
32 unchanged sentences
Our customers typically do not separately compensate us for design and engineering work involved in developing application-specific products for them.
−Removed: Human Capital
−Removed: As of December 30, 2023, we had approximately 96 full-time and part-time employees globally.
−Removed: Our future success will depend in part on our ability to attract, retain and motivate highly qualified technical, managerial and other personnel for whom competition is intense.
−Removed: We are not party to any collective bargaining agreements with any of our employees.
−Removed: We have never experienced a work stoppage, and we believe our employee relations are good.
−Removed: We promote an atmosphere of mutual respect and recognize that diversity creates differences in perspective that strengthens our business.
−Removed: It is our practice to hire, motivate and retain people solely on the basis of ability, experience, training and future potential.
−Removed: We invest in our workforce by offering competitive salaries, incentives, and benefits.
−Removed: Our incentives are meritocracy-based and we have a strong pay for performance culture that we believe drives superior results.
−Removed: We offer our employees opportunities to advance their careers at Netlist.
−Removed: We are focused on leadership progression and encourage our employees to take advantage of new opportunities.
+Added: As of December 28, 2024, we had a total of 66 employees globally, of which 60 were full-time employees.
+Added: Segment and Geographic Areas Information
+Added: We operate under one reportable segment which is comprised of one operating segment.
+Added: See Note 1—Summary of Significant Accounting Policies of this Form 10-K for segment information and Note 2—Supplemental Financial Information for geographic information.
Government Regulations
8 unchanged sentences
Foreign Corrupt Practices Act and applicable foreign anti-bribery laws), data protection, public reporting and taxation, among others.
−Removed: It is difficult and costly to manage the requirements of every authority having jurisdiction over our various activities and to comply with
−Removed: their varying standards.
+Added: It is difficult and costly to manage the requirements of every authority having jurisdiction over our various activities and to comply with their varying standards.
Any changes to existing regulations or adoption of new regulations may result in significant additional expense to us or our customers.
−Removed: Further, our failure to comply with any applicable laws and regulations may result in a variety of administrative, civil and criminal enforcement measures, including monetary penalties or imposition of sanctions or other corrective requirements.
+Added: Further, our failure to comply with any applicable laws and regulations may result in a variety of administrative, civil and criminal
+Added: enforcement measures, including monetary penalties or imposition of sanctions or other corrective requirements.
+Added: Corporate Information
+Added: We were incorporated under the laws of the state of Delaware in June 2000 and commenced operations in September 2000.
+Added: Our principal executive offices are located at 111 Academy, Suite 100, Irvine, California 92617 and our telephone number at that address is (949) 435-0025.
+Added: Our corporate website address is www.netlist.com .
+Added: The information contained in, or accessible through, our website is not part of, and is not incorporated by reference into, this Form 10-K.
+Added: Investors should not rely on any such information in deciding whether to purchase our common stock.
Available Information
−Removed: Information about us is available at our website, www.netlist.com, to which we regularly post copies of our press releases as well as additional information about us.
−Removed: Our filings are available free of charge on our website as soon as reasonably practicable after they are electronically filed with, or furnished to, the Securities and Exchange Commission (“SEC”), including our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy and information statements and amendments to these reports or statements filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
−Removed: The SEC maintains an internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at www.sec.gov.
+Added: We file annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy and information statements and other information with the SEC.
+Added: Our filings with the SEC are available free of charge on the SEC’s website and on the "Investors" section of our website as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.
Our website also contains copies of our corporate governance guidelines, code of business conduct and ethics, insider trading policy and whistleblower policy.
−Removed: The information contained on the websites referenced in this Form 10-K is not incorporated by reference into this filing.
−Removed: Further, our references to website URLs are intended to be inactive textual references only.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.