What changed in this filing

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Item 1. Financial Statements

2022-11-16 compared with 2022-08-17 · 155 added, 130 removed, 453 unchanged (39% of the section changed)

7 unchanged sentences

$ 19,605  

Accounts receivable, net of allowances for doubtful accounts of $ 62

Accounts receivable, net of allowance for doubtful accounts of $ 60 and $ 62 , respectively (1)

Other current assets

34 unchanged sentences

200,000 authorized;

12,428 and 11,863 shares issued and outstanding as of July 3, 2022 and January 2, 2022, respectively

13,110 and 11,863 shares issued and outstanding as of October 2, 2022 and January 2, 2022, respectively

Additional paid-in capital

4 unchanged sentences

Total stockholders' equity

12,308  

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

1 unchanged sentence

$ 28,973  

(1) Accounts receivables includes contract assets of $1,459 and $243, respectively  

See accompanying notes to unaudited condensed consolidated financial statements.

3 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Cost of revenue

6 unchanged sentences

Gain on forgiveness of debt

Interest income and other income (expense), net

Interest income and other expense, net

Loss before income taxes

Provision for income taxes

Provision for (benefit from) income taxes

Net loss per share:

7 unchanged sentences

(in thousands)

Six Months Ended

Nine Months Ended

Cash flows from operating activities:

21 unchanged sentences

Repayment of line of credit

Proceeds from issuance of common stock

Proceeds from issuance of common stock, net

Taxes paid related to settlement of equity awards

Net cash provided by (used in) financing activities

Net (decrease) increase in cash, cash equivalents and restricted cash

Net cash provided by financing activities

Net increase (decrease) in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash at beginning of period

6 unchanged sentences

Balance at January 2, 2022

11,863  

$ 310,222  

$ ( 301,025 )  

$ 9,209  

Issuance of common stock under public stock offering, net of stock issuance cost

1 unchanged sentence

Stock-based compensation

( 1,164 )  

Balance at April 3, 2022

12,362  

312,087  

( 302,189 )  

Common stock issued under stock plans and employee stock purchase plan

Stock-based compensation

( 524 )  

Balance at July 3, 2022

12,428  

$ 312,686  

$ ( 302,713 )  

$ 9,985  

Common stock issued under stock plans and employee stock purchase plan

Common stock offering, net of issuance costs

Stock-based compensation

Balance at October 2, 2022

Stockholders'

20 unchanged sentences

( 298,160 )  

Common stock issued under stock plans and employee stock purchase plan

Common stock offering, net of issuance costs of $45

Stock-based compensation

( 1,282 )  

Balance at October 3, 2021

11,790  

$ 309,036  

$ ( 299,442 )  

$ 9,606  

See accompanying notes to unaudited condensed consolidated financial statements

13 unchanged sentences

10 -K for the year ended January 2, 2022, which was filed with the Securities and Exchange Commission (“SEC”) on March 22, 2022.

Operating results for the three and six months ended July 3, 2022 are not necessarily indicative of the results that may be expected for the full fiscal year.

Operating results for the three and nine months ended October 2, 2022 are not necessarily indicative of the results that may be expected for the full fiscal year.

QuickLogic's fiscal year ends on the Sunday closest to December 

31 and each fiscal quarter ends on the Sunday closest to the end of each calendar quarter.

QuickLogic's second fiscal quarter for 2022 and 2021 ended on July 3, 2022  and July 4, 2021 , respectively.

QuickLogic's third fiscal quarter for 2022 and 2021 ended on October 2, 2022  and October 3, 2021 , respectively.

COVID- 19 - Impact on Business 

10 unchanged sentences

In addition to the Company's $ 20.0  million of cash, cash equivalents and restricted cash, as of 

July 3, 2022  other sources of liquidity included a $ 15.0  million drawn down from the Revolving Facility and $ 1.6  million in net proceeds from the Company's sale of common stock in 

six months ended July 3, 2022 .

October 2, 2022 other sources of liquidity included $ 45 million drawn down from the Revolving Facility and $ 4.8 million in net proceeds from the Company's sale of common stock in 

nine months ended October 2, 2022 .

The Company was in compliance with all the Heritage Bank Revolving Facility loan covenants as of 

July 3, 2022 .

As of July 3, 2022 , the Company had $ 15.0  million outstanding on the Revolving Facility with an interest rate of 5.25 %.

February 9, 2022, 

the Company entered into common stock purchase agreements with certain investors for the sale of an aggregate of 

310,000  shares of common stock, par value $ 0.001 , in a registered direct offering. These share placements resulted in net cash proceeds of approximately 

$1.5  million.

Issuance costs related to this offering were negligible.

The purchase price for each share of common stock in this placement was $ 4.78 .

The Company currently intends to use the net proceeds from the financing for working capital, the development of next generation eFPGA-based products, including AI and open-source hardware or software, and general corporate purposes.

October 2, 2022 .

As of October 2, 2022 , the Company had $ 15.0  million outstanding on the Revolving Facility with an interest rate of 6.75 %.

On September 14, 2022 and February 9, 2022, 

the Company entered into common stock purchase agreements with certain investors for the sale of an aggregate of 487,279 and 310,000  shares of common stock, respectively, par value $ 0.001 , in registered direct offerings, resulting in net cash proceeds of approximately $ 3.2 million and $1.5  million, respectively.

Issuance costs related to September 14, 2022 and the February 9, 2022 offering were immaterial.

The purchase price for each share of common stock in the September 14, 2022 and in the February 9, 2022 

placements were $ 6.57 and $ 4.78 , respectively.

The Company currently intends to use the net proceeds from financings for working capital, the development of next generation eFPGA-based products, including AI and open source hardware or software, and general corporate purposes, and 

may also use a portion of the net proceeds to acquire and/or license technologies and acquire and/or invest in businesses when the opportunity arises;

however, the Company currently has 

no commitments or agreements and is 

not involved in any negotiations with respect to any such transactions. 

The Company currently uses its cash to fund its working capital to accelerate the development of next generation products and for general corporate purposes.

37 unchanged sentences

During the 

three and six months ended July 3, 2022  there were no changes in the Company's significant accounting policies from its disclosures in the Annual Report on Form 10 -K for the year ended January 2, 2022 .

three and nine months ended October 2, 2022  there were no changes in the Company's significant accounting policies from its disclosures in the Annual Report on Form 10 -K for the year ended January 2, 2022 .

For a discussion of the significant accounting policies, please see the Annual Report on Form 

9 unchanged sentences

2022 - 03, Fair Value Measurement (Topic 820 ) Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions to clarify the measurement of the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and requires disclosures related to these types of equity securities.

This ASU 2022 - 03 becomes effective for the Company on January 2, 2023 and is not expected to have an impact on the Company's consolidated financial statements or disclosures.

2022 - 03 becomes effective for the Company on January 2, 2023 and is not expected to have an impact on the Company's consolidated financial statements or disclosures.

In August 2020, the FASB issued ASU No.

2020 - 06, Debt —

Debt with Conversion and Other Options (Subtopic 470 - 20 ) and Derivatives and Hedging —

Contracts in Entity ’

s Own Equity (Subtopic 815 - 40 ):

Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity.

2020 - 06 becomes effective for the Company on January 1, 2024.

Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years.

The Board specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. 

The ASU is not expected to have an impact on the Company's financial statements.

Net Loss Per Share

2 unchanged sentences

In computing diluted net loss per share, the weighted average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options and warrants.

For the three and six months ended July 3, 2022  

July 4, 2021 , 536  thousand and 255  thousand shares of common stock, respectively, associated with equity awards and the estimated number of shares to be purchased under the current offering period of the 2009 Employee Stock Purchase Plan were outstanding.

For the three and nine months ended October 2, 2022  

October 3, 2021 , 398 thousand and 691 thousand shares of common stoc k, respectively, associated with equity awards and the estimated number of shares to be purchased under the current offering period of the 2009 Employee Stock Purchase Plan were outstanding.

These shares were not included in the computation of diluted net loss per share, as they were considered anti-dilutive due to the net losses the Company experienced during these periods.

Warrants to purchase up to 386 thousand shares were issued in connection with May 29, 2018, stock offering were not included in the diluted loss per share calculation of the periods presented as they were also considered anti-dilutive due to the net loss the Company experienced during these periods. 

Balance Sheet Components

The following table provides details relating to certain balance sheet line items as of July 3, 2022 , and January 2, 2022 (in thousands):

The following table provides details relating to certain balance sheet line items as of October 2, 2022 , and January 2, 2022 (in thousands):

Accounts receivable:

5 unchanged sentences

Trade account receivables, net

Unbilled account receivables

Contract assets

34 unchanged sentences

$ 1,665  

(1) Accrued liabilities-Other is partially comprised of a $100 non-cash lease adjustment offsetting Other Assets in the six months ended July 3, 2022.

Note 5  —

1 unchanged sentence

Revolving Line of Credit

As of July 3, 2022 and January 2, 2022 , the Company had $ 15.0 million of revolving debt outstanding with an interest rate of 5.25 % and 3.75 % per annum, respectively.

As of October 2, 2022 and January 2, 2022 , the Company had $ 15.0 million of revolving debt outstanding with an interest rate of 6.75 % and 3.75 % per annum, respectively.

Heritage Bank has a first priority security interest in substantially all of the Company's tangible and intangible assets to secure any outstanding amounts under the agreement.

The Company was in compliance with all loan covenants under the agreement as of the end of the current reporting period.

Interest expense recognized were $ 14  tho usand and $ 39  thousand for th e  

three and six months ended July 3, 2022 , r espectively, an d $ 22  thousand and $ 46  thou sand for the 

three and six months ended July 4, 2021 , respectively.

Interest expense recognized were $ 11 tho usand and $ 50 thousand for th e  

three and nine months ended October 2, 2022 , r espectively, an d $ 22 thousand and $ 68 thou sand for the 

three and nine months ended October 3, 2021 , respectively.

April 4, 2022, 

22 unchanged sentences

three  years.

July 3, 2022  and 

October 2, 2022  and 

January 2, 2022 , the balance of right-of-use assets was approximately $ 0.9 million and $ 1.5 million, respectively, and the lease liability was approximately $ 1 million and $ 1.6 million, respectively, for operating and finance leases for the headquarters in San Jose and for the operating subsidiaries of SensiML in Oregon and the Company's subsidiary in India.

Total rent expense was $ 0.1 million and $ 0.3 million for the 

three and six months ended July 3, 2022  and July 4, 2021 , respectively.

three and nine months ended October 2, 2022  and October 3, 2021 , respectively.

The following table provides the expenses related to operating and finance leases (in thousands):

Three Months Ended

Six Months Ended

Nine Months Ended

October 2, 2022

October 3, 2021

October 2, 2022

October 3, 2021

Operating lease costs:

3 unchanged sentences

Right-of-use assets obtained in exchange for new finance and operating lease liabilities represent the new operating and finance leases entered into during the 

six months ended July 3, 2022  and the 

six months ended July 4, 2021  were $ 0 (in thousands):

Six Months Ended

July 3, 2022  

July 4, 2021  

nine months ended October 2, 2022  and the 

nine months ended October 3, 2021  were $ 0 and $ 0.4 million, respectively (in thousands):

Nine Months Ended

October 2, 2022  

October 3, 2021  

Cash paid for amounts included in the measurement of lease liabilities:

1 unchanged sentence

Operating cash flows used for finance leases

Financing cash flows used for financing leases

The following table provides the details of right-of-use assets and lease liabilities as of July 3, 2022 and January 2, 2022 (in thousands):

July 3, 2022  

Financing cash flows used for finance leases

Right-of-use assets obtained in exchange for finance lease obligations

The following table provides the details of right-of-use assets and lease liabilities as of October 2, 2022 and January 2, 2022 (in thousands):

October 2, 2022  

January 2, 2022  

4 unchanged sentences

$ 1,529  

Lease liabilities:

3 unchanged sentences

$ 1,563  

The following table provided the details of future lease payments for operating and finance leases as of July 3, 2022 (in thousands):

The following table provided the details of future lease payments for operating and finance leases as of October 2, 2022 (in thousands):

Operating Leases

4 unchanged sentences

Present value of lease liabilities

The following table provides the details of lease terms and discount rates as of July 3, 2022 and January 2, 2022 :

The following table provides the details of lease terms and discount rates as of October 2, 2022 and January 2, 2022 :

October 2, 2022

January 2, 2022

9 unchanged sentences

7  —

Employee Stock Plans

 Capital Stock

Employee Stock Plan

On May 10, 2022 

1 unchanged sentence

The approval of an additional 900 thousand shares of common stock increased the total number of available shares to 1.4 million under the 2019 Stock Plan, as amended.

The number of shares available for future awards as of the date of the Annual Meeting are the sum of ( 1 ) 900 thousand, ( 2 ) the number of shares available for future awards under the plan immediately before such approval which were 522 thousand shares and ( 3 ) any shares subject to outstanding awards under the 2019 Plan or the 2009 Plan, that are terminated, canceled, surrendered, or forfeited which was zero at the Date. On May 19, 2022, the Company filed a Registration Statement on Form S- 8  with the SEC to register an additional 

On May 19, 2022, the Company filed a Registration Statement on Form S- 8  with the SEC to register an additional 

900 thousand shares of its common stock that may be issued under the Company’s 2019 Stock Plan, as amended.

Registration Statement

On August 17, 2022, the Company filed a Registration Statement on Form S- 3 with the SEC, under which we may sell, from time-to-time common stock, preferred stock, depositary shares, warrants, debt securities, and units, individually or as units comprised of one or more of the other securities or a combination thereof. The Company's registration statement became effective on August 26, 2022.

Note 8  —

1 unchanged sentence

Stock-based compensation expense included in the Company's consolidated financial statements for the three and 

six months ended July 3, 2022  and July 4, 2021  was as follows (in thousands):

nine months ended October 2, 2022  and October 3, 2021  was as follows (in thousands):

Three Months Ended

Six Months Ended

Nine Months Ended

October 2, 2022

October 3, 2021

October 2, 2022

October 3, 2021

Cost of revenue

1 unchanged sentence

Selling, general and administrative

$ 1,347  

$ 1,455  

There was 

no  stock -based compensation expense reversal related to the cancellation of certain unvested performance-based RSUs for the 

three and six months ended July 3, 2022  and 

July 4, 2021 .

three and nine months ended October 2, 2022  and 

October 3, 2021 .

No stock-based compensation was capitalized during any period presented above.

No stock options were granted during the three and six months ended July 3, 2022  and 

July 4, 2021 .

No stock options were granted during the three and nine months ended October 2, 2022  and 

October 3, 2021 .

Stock-Based Compensation Award Activity

The following table summarizes the activity in the shares available for grant under the 2019 Plan during the 

six months ended July 3, 2022  (in thousands):

nine months ended October 2, 2022  (in thousands):

Shares Available for Grants

1 unchanged sentence

RSUs forfeited or expired

Balance at July 3, 2022

Balance at October 2, 2022

Stock Options

The following table summarizes stock options outstanding and stock option activity under the 2009 Plan and the 2019 Plan, and the related weighted average exercise price for the 

six months ended July 3, 2022 :

nine months ended October 2, 2022 :

(in thousands)

3 unchanged sentences

( 13 )  

Balance outstanding at July 3, 2022

$ 42.90  

Exercisable at July 3, 2022

$ 25.42  

Vested and expected to vest at July 3, 2022

Balance outstanding at October 2, 2022 *

$ 24.95  

*Exercisable and fully vested.

No stock options were granted, exercised, forfeited, or expired during the 

six months ended July 3, 2022 and July 4, 2021 .

nine months ended October 2, 2022 and October 3, 2021 .

Total stock-based compensation related to stock options was $ 0 during the 

six months ended July 3, 2022 and July 4, 2021 . 

As of July 3, 2022 , the fair value of unvested stock options, net of forfeitures, was $ 0 . 

nine months ended October 2, 2022 and October 3, 2021 . 

As of October 2, 2022 , the fair value of unvested stock options, net of forfeitures, was $ 0 . 

Restricted Stock Units

5 unchanged sentences

The stock-based compensation expense related to RSUs and PRSUs was approximately $ 0.5 million and $ 1.3 million for the 

three and six months ended July 3, 2022 , respectively, and approximately $ 0.2 million and $ 0.6 million for the 

three and six months ended July 4, 2021 , respectively.

July 3, 2022 and July 4, 2021 , there was approximately $ 1.1 million and $ 0.2 million, respectively, in unrecognized compensation expense related to RSUs. The remaining unrecognized stock-based compensation expense as of July 3, 2022  is expected to be recorded over a weighted average period of 1.47  years.

three and nine months ended October 2, 2022 , respectively, and approximately $ 0.9 million and $ 1.4 million for the 

three and nine months ended October 3, 2021 , respectively.

October 2, 2022 and October 3, 2021 , there was approximately $ 1.1 million  and $ 2.1 million , respectively, in unrecognized compensation expense related to RSUs. The remaining unrecognized stock-based compensation expense as of October 2, 2022  is expected to be recorded over a weighted average period of 1.51  years.

A summary of activity for the Company's RSUs and PRSUs for the 

six months ended July 3, 2022  is as follows:

nine months ended October 2, 2022  is as follows:

RSUs & PRSUs Outstanding

3 unchanged sentences

( 22 )  

Nonvested at July 3, 2022

Nonvested at October 2, 2022

Employee Stock Purchase Plan

Total stock-based compensation related to the Company's Employee Stock Purchase Plan was approximately $ 11 thousand and $ 34 thousand for the 

three and six months ended July 3, 2022 , respectively, and $ 36 thousand and $ 66 thousand for the 

three and six months ended July 4, 2021 , respectively.

Note 8  —

Total stock-based compensation related to the Company's Employee Stock Purchase Plan was approximately $ 20 thousand and $ 54 thousand for the 

three and nine months ended October 2, 2022 , respectively, and $ 31 thousand and $ 97 thousand for the 

three and nine months ended October 3, 2021 , respectively.

Note 9 —

The Company recorded a net income tax expense of $ 3 thousand and $ 19 thousand for the 

three and six months ended July 3, 2022 , respectively, and $ 5 thousand and $ 0.2 million for the 

three and six months ended July 4, 2021 , respectively.

three and nine months ended October 2, 2022 , respectively, and a net income tax benefit of $ 21 thousand and a net income tax expense of $ 0.1 million for the 

three and nine months ended October 3, 2021 , respectively.

A majority of the income tax expense for the three months ended 

July 3, 2022  was related to the Company's foreign subsidiaries, which are cost-plus entities, and state minimum income taxes. A majority of the income tax expense for the 

six months ended July 3, 2022  was related to income tax expense of the Company's foreign subsidiaries and state minimum income taxes, partially offset by tax benefits from foreign income tax returns related to the Company's foreign subsidiaries.

October 2, 2022  was related to the Company's foreign subsidiaries, which are cost-plus entities, and state minimum income taxes. A majority of the income tax expense for the 

nine months ended October 2, 2022  was related to income tax expense of the Company's foreign subsidiaries and state minimum income taxes, partially offset by tax benefits from foreign income tax returns related to the Company's foreign subsidiaries.

The difference between the estimated annual effective income tax benefit rate of 1.2 % and the 21 % U.S.

6 unchanged sentences

Accordingly, the Company continues to maintain a full valuation allowance against all of U.S.

and certain foreign net deferred tax assets as of July 3, 2022 .

The Company had no unrecognized tax benefits as of July 3, 2022  and January 2, 2022 

and certain foreign net deferred tax assets as of October 2, 2022 .

The Company had no unrecognized tax benefits as of October 2, 2022  and January 2, 2022 

which would affect the Company's effective tax rate.

5 unchanged sentences

tax years from 1999 forward remain effectively open to examination due to the carryover of unused net operating losses and tax credits.

Note 9  —

Note 10 —

Information Concerning Product Lines, Geographic Information and Revenue Concentration

1 unchanged sentence

For all periods presented, the Company operated in a single reportable business segment.

We derive revenue from sales to customers located in North America, Europe and Asia Pacific.

The following is a breakdown of revenue by product family (in thousands):

Three Months Ended

Six Months Ended

Nine Months Ended

October 2, 2022

October 3, 2021

October 2, 2022

October 3, 2021

$ 2,252  

14 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

October 2, 2022

October 3, 2021

October 2, 2022

October 3, 2021

Hardware products

2 unchanged sentences

$ 3,794  

$ 2,074  

New products revenue

3 unchanged sentences

$ 5,095  

eFPGA IP revenue was $ 1.6 million and $ 3.2 million for the  

three and six months ended July 3, 2022 . eFPGA IP revenue, consisting of intellectual property license revenue and professional services revenue, was $ 1.5 million and $ 3.1 million for the 

three and six months ended July 3, 2022 , respectively, and $ 23 thousand for the 

three and six months ended July 4, 2021 , and IP revenue was $ 0.1 million for the 

three and six months ended July 3, 2022  and $ 125  thousand for the 

three and six months ended July 4, 2021 . Contract liabilities related to professional services revenue of $ 0 and $ 0.3  million and were included in deferred revenue on the consolidated balance sheets as of July 3, 2022 and 

eFPGA IP revenue is comprised primarily of eFGPA intellectual property license revenue and eFGPA-related professional services revenue, eFPGA IP revenue was $ 1.7 million and $ 4.9 million for the 

three and nine months ended October 2, 2022 , respectively, and $ 1 million and $ 1.2 million for the 

three and nine months ended October 3, 2021 , respectively.

SaaS & Other revenue is comprised primarily of software as a service revenue and software-related professional services revenue.

SaaS & Other revenue was $ 0.2 million and $ 0.3 million for the three and nine months ended October 2, 2022 , respectively, and $ 38 thousand and $ 0.2 million for the 

three and nine months ended October 3, 2021 , respectively.

Contract liabilities related to professional services revenue of $ 0 and $ 0.3  million and were included in deferred revenue on the consolidated balance sheets as of October 2, 2022 and 

January 2, 2022, respectively. 

We derive revenue from sales to customers located in North America, Europe and Asia Pacific.

North America revenue from the United States was $ 3.0 million, or 

67 % of total revenue, and $ 5.5 million, or 63 % of total revenue for the 

three and six months ended July 3, 2022 , respectively.

North America revenue from the United States was $ 0.6 million, or 

19 % of total revenue, and $ 1.8 million, or 

35 % of total revenue for the 

three and six months ended July 4, 2021 , respectively. 

The following is a breakdown of revenue by shipment destination (in thousands): 

The tables below present disaggregated revenues by geographical location.

Revenue attributed to geographic location is based on the destination of the product or service.

Substantially all revenues in North America were in the United States.

Revenue in the United States was $ 2.3 million, or 67 % of total revenue, and $ 7.8 million, or 64 % of total revenue for the 

three and nine months ended October 2, 2022 , respectively, and $ 2.6 million, or 67 % of total revenue, and $ 4.4 million, or 49 % of total revenue for the 

three and nine months ended October 3, 2021 , respectively. 

The following is a breakdown of revenue by destination (in thousands): 

Three Months Ended

Six Months Ended

$ 1,075  

Nine Months Ended

October 2, 2022

October 3, 2021

October 2, 2022

October 3, 2021

$ 3,114  

8 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Distributor "A"

Distributor "B"

Distributor "C"

Distributor "E"

Customer "E"  

* Represents less than 10% of revenue as of the dates presented.

1 unchanged sentence

Distributor "A"

Distributor "B"

Distributor "C"

Distributor "E"

Distributor "J"

* Represents less than 10% of accounts receivable as of the dates presented.

10  —

Commitments and Contingencies

The Company's manufacturing suppliers require the forecast of wafer starts several months in advance.

The Company is required to take delivery of and pay for a portion of this forecasted wafer volume. As of July 3, 2022 , the Company had $ 0.6 million of outstanding commitments for the purchase of wafer inventory.

The Company is required to take delivery of and pay for a portion of this forecasted wafer volume. As of October 2, 2022 , the Company had $ 0.5 million of outstanding commitments for the purchase of wafer inventory.

The Company has purchase obligations with certain suppliers for the purchase of other goods and services entered into in the ordinary course of business.

As of July 3, 2022 , total outstanding purchase obligations for other goods and services were $ 1.2 million due within the next twelve months.

As of October 2, 2022 , total outstanding purchase obligations for other goods and services were $ 0.8 million due within the next twelve months.

From time to time, the Company may become involved in legal actions arising in the ordinary course of business including, but not limited to, intellectual property infringement and collection matters.

2 unchanged sentences

or without requiring royalty or other payments which may adversely impact gross profit.

11  —

Subsequent Events

eFPGA Project Agreement

On August 8, 2022, we executed an Agreement (the “Agreement”) with a new customer to develop an eFPGA product in accordance with the customer’s specifications.

Under the terms of the Agreement, we will be paid fees of $ 6.9 million for performing the work over an approximately 12 -month period from the execution date of the Agreement.

Upon successful performance, the Agreement allows for the customer to extend the scope of work to tens of millions of dollars over the span of multiple years.

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.

What changed 10-Q

Item 1. Financial Statements