What changed in this filing

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Item 1. Financial Statements

2023-08-16 compared with 2023-05-17 · 225 added, 116 removed, 449 unchanged (43% of the section changed)

7 unchanged sentences

$ 19,201  

Accounts receivable, net of allowance for doubtful accounts of $ 8 and $ 18 , as of April 2, 2023 and January 1, 2023, respectively

Accounts receivable, net of allowance for doubtful accounts of $ 14 and $ 18 , as of July 2, 2023 and January 1, 2023, respectively

Contract assets

35 unchanged sentences

200,000 authorized;

13,686 and 13,202 shares issued and outstanding as of April 2, 2023 and January 1, 2023, respectively

13,725 and 13,202 shares issued and outstanding as of July 2, 2023 and January 1, 2023, respectively

Additional paid-in capital

14 unchanged sentences

Three Months Ended

Six Months Ended

$ 2,921  

$ 4,541  

$ 7,054  

$ 8,637  

Cost of revenue

4 unchanged sentences

Loss from operations

( 2,226 )  

( 627 )  

( 3,326 )  

Interest expense

( 50 )  

( 22 )  

( 108 )  

Interest income and other expense, net

( 63 )  

Loss before income taxes

( 2,276 )  

( 507 )  

( 3,497 )  

Provision for (benefit from) income tax

$ ( 2,269 )  

$ ( 524 )  

$ ( 3,497 )  

Net loss per share:

Basic and diluted

$ ( 0.17 )  

$ ( 0.04 )  

$ ( 0.26 )  

Weighted average shares outstanding:

Basic and diluted

13,709  

12,412  

13,297  

12,269  

Net loss equals comprehensive loss for all periods presented.

3 unchanged sentences

(in thousands)

Three Months Ended

Six Months Ended

Cash flows from operating activities:

$ ( 3,497 )  

Adjustments to reconcile net loss to net cash used in operating activities:

2 unchanged sentences

Write-down of inventories and reclassifications

Bad debt recovery

Gain on disposal of equipment

Changes in operating assets and liabilities:

1 unchanged sentence

Contract assets

( 174 )  

( 1,475 )  

Trade payables

( 269 )  

Accrued liabilities

2 unchanged sentences

Net cash used in operating activities

( 232 )  

Cash flows from investing activities:

Capital expenditures for property and equipment

( 227 )  

Capitalized internal-use software

( 303 )  

Net cash used in investing activities

( 530 )  

Cash flows from financing activities:

Payment of finance lease obligations

( 288 )  

Proceeds from line of credit

30,000  

Repayment of line of credit

( 30,000 )  

Proceeds from issuance of common stock

Proceeds from issuance of common stock to investors

Stock issuance cost

( 20 )  

Net cash provided by financing activities

Net increase in cash, cash equivalents and restricted cash

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

Cash, cash equivalents and restricted cash at beginning of period

19,201  

19,605  

Cash, cash equivalents and restricted cash at end of period

$ 20,565  

$ 18,546  

Supplemental disclosures of cash flow information:

1 unchanged sentence

Income taxes paid

Supplemental disclosures of non-cash financing and investing items

Purchases of fixed assets with financing lease

Stock-based compensation capitalized as internal-use software

Stock-based compensation capitalized as tooling and fixed assets  

Purchases of property and equipment in accounts payable

$ 1,147  

See accompanying notes to unaudited condensed consolidated financial statements.

4 unchanged sentences

Balance at January 1, 2023

13,202  

$ 317,174  

$ ( 305,292 )  

$ 11,895  

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

Common stock issued under stock plans and employee stock purchase plans

Stock-based compensation

( 1,228 )  

Balance at April 2, 2023

13,686  

320,181  

( 306,520 )  

13,675  

Common stock issued under stock plans and employee stock purchase plan

Stock-based compensation

( 2,269 )  

Balance at July 2, 2023

13,725  

$ 320,950  

$ ( 308,789 )  

$ 12,175  

Stockholders'

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

Common stock issued under stock plans and employee stock purchase plans

( 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  

See accompanying notes to unaudited condensed consolidated financial statements.

4 unchanged sentences

1988  and reincorporated in Delaware in 

 The Company enables Original Equipment Manufacturers "(OEMs"), to maximize battery life for highly differentiated, immersive user experiences with Smartphone, Wearable, Hearable, Tablet and Internet-of-Things or IoT hardware products, Military, Aerospace and Defense products.

QuickLogic delivers these benefits through industry leading ultra-low power customer programmable System on Chip or SoC semiconductor solutions, embedded software, and algorithm solutions for always-on voice and sensor processing. The Company is a fabless semiconductor provider of comprehensive, flexible sensor processing solutions, ultra-low power display bridges, and ultra-low power Field Programmable Gate Arrays"(FPGAs").

 The Company enables Original Equipment Manufacturers ("OEMs"), to maximize battery life for highly differentiated, immersive user experiences with Smartphone, Wearable, Hearable, Tablet, and Internet-of-Things or IoT hardware products, Military, Aerospace and Defense products.

QuickLogic delivers these benefits through industry leading ultra-low power customer programmable System on Chip ("SoC") semiconductor solutions, embedded software, and algorithm solutions for always-on voice and sensor processing. The Company is a fabless semiconductor provider of comprehensive, flexible sensor processing solutions, ultra-low power display bridges, and ultra-low power Field Programmable Gate Arrays ("FPGAs").

Starting in late 

2021, the Company increased its professional engineering services business related to its eFPGA products for both civilian and military applications.

The Company’s wholly owned subsidiary, SensiML Corp.("SensiML"), provides Analytics Toolkit, which is used in many of the applications where the Company’s ArcticPro™, eFPGA intellectual property "(IP") plays a critical role.

The Company’s wholly owned subsidiary, SensiML Corp.

("SensiML"), provides Analytics Toolkit, which is used in many of the applications where the Company’s ArcticPro™, eFPGA intellectual property ("IP") plays a critical role.

SensiML Analytics toolkit is an end-to-end software suite that provides OEMs a straightforward process for developing pattern matching sensor algorithms using machine learning technology that are optimized for ultra-low power consumption.

4 unchanged sentences

10 -K for the year ended January 1, 2023, which was filed with the Securities and Exchange Commission (“SEC”) on March 28, 2023.

Operating results for the three months ended April 2, 2023 are not necessarily indicative of the results that may be expected for the full fiscal year.

Operating results for the three and six months ended July 2, 2023 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 first fiscal quarter for 2023 and 2022 ended on April 2, 2023  and April 3, 2022 , respectively.

QuickLogic's second fiscal quarter for 2023 and 2022 ended on July 2, 2023  and July 3, 2022 , respectively.

2023 Cybersecurity Incident

On January 20, 2023, the Company detected a ransomware infection affecting a limited number of IT systems, including systems that contained personal information of our employees. 

Upon detection of the incident, the Company promptly began an assessment of all Company IT system, notified law enforcement and engaged legal counsel and other incident response professionals.

On January 20, 2023, the Company detected a ransomware infection affecting a limited number of IT systems, including systems that contained personal information of our employees.

Upon detection of the incident, the Company promptly began an assessment of all Company IT systems, notified law enforcement, and engaged legal counsel and other incident response professionals.

Through counsel, the Company retained a leading cybersecurity forensics firm to review and investigate the incident.

The Company's investigation and assessment of the incident's impact is ongoing.

The Company continued its business operations during this incident and successfully restored all of its critical operational data.

The Company has also taken steps to further secure its IT systems.

Based on the ongoing investigation and information currently known at this time, the Company believes the incident has not had nor will have a material impact on its business operations, ability to serve its customers, or financial results.

We have completed our forensic work and have found no impact on our financial systems.

For potentially affected individuals or entities whose personally identifiable data may have been accessed, we are providing free credit monitoring services to them.

The Company is voluntarily taking steps to further secure its IT infrastructure, systems, and security.

The Company believes the incident has not had nor will have a material impact on its business operations, ability to service its customers, or financial results.

The Company carries insurance, including cyber insurance, commensurate with its size and the nature of its operations.

1 unchanged sentence

The Company has financed its operations and capital investments through the sale of common stock, finance and operating leases, a revolving line of credit with Heritage Bank (the "Revolving Facility"), and cash flows from operations.

As of  

April 2, 2023 , the Company's principal sources of liquidity consisted of cash, cash equivalents and restricted cash of $ 20.9  million, inclusive of a $ 15.0  million advance from its Revolving Facility, and $ 2.3 million in net proceeds from the Company's sale of common stock in the three months ended April 2, 2023 .

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

April 2, 2023 .

As of April 2, 2023 , the Company had $ 15.0  million outstanding on the Revolving Facility with an interest rate of 8.5 %.

As of July 2, 2023 , the Company's principal sources of liquidity consisted of cash, cash equivalents and restricted cash of $ 20.6  million, inclusive of a $ 15.0  million advance from its Revolving Facility, and $ 2.3 million in net proceeds from the Company's sale of common stock in the six months ended July 2, 2023 .

The Company's restricted cash balance as of July 2, 2023 was $ 0.1 million and relates to amounts pledged as cash security for the use of credit cards.

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

July 2, 2023 .

As of July 2, 2023 , the Company had $ 15.0  million outstanding on the Revolving Facility with an interest rate of 8.75 %.

On April 28, 2023, the Company converted accounts receivable for a customer in the amount of approximately $ 1.16 million to notes receivable (the "Note").

At the time, the Note bore an interest rate of 3.0 % compounded monthly.

On June 28, 2023, the Company cancelled the original note and entered into a revised promissory note with the customer, where the interest rate changed to 4.69 % compounded monthly, or a 4.8 % effective annual interest rate, accruing from the date of the prior note.

If not prepaid prior to the Note maturity date of June 28, 2024, the principal and all accrued and unpaid interest will be due and payable to the Company.

If an event of default occurs, the interest rate will increase to 10.0 %.

All other terms of the note remained the same.

On March 21, 2023, 

4 unchanged sentences

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

Based on past performance and current expectations, the Company believes that its existing cash and cash equivalents as of April 2, 2023, together with its revenues from operations, and the available financial resources from the Revolving Facility with Heritage Bank will be sufficient to fund its operations and capital expenditures and provide adequate working capital for the next 

Based on past performance and current expectations, the Company believes that its existing cash and cash equivalents as of July 2, 2023, together with its revenues from operations, and the available financial resources from the Revolving Facility with Heritage Bank will be sufficient to fund its operations and capital expenditures and provide adequate working capital for the next 

twelve  months. 

45 unchanged sentences

undertake in the future, actual results 

ultimately materially differ from these estimates and assumptions in regard to revenue recognition;

may materially differ from these estimates and assumptions in regard to revenue recognition;

and the valuation of inventories including identification of excess quantities, market value and obsolescence.

9 unchanged sentences

dollars and are derived primarily from sales to customers located in North America, Asia Pacific, and Europe.

The Company performs ongoing credit evaluations of its customers and generally does 

The Company performs ongoing credit evaluations of its customers and does 

not  require collateral.

See Note 10,  Information Concerning Product Lines, Geographic Information and Revenue Concentration, for information regarding concentrations associated with accounts receivable.

As of April 2, 2023 and January 1, 2023, the Company had $ 15.0 million of revolving debt outstanding 

with Heritage Bank;

As of July 2, 2023 and January 1, 2023, the Company had $ 15.0 million of revolving debt outstanding with Heritage Bank;

the revolving debt carried an interest rate of 8.75 % and 8.00 % 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. 

The maturity date for advances under the revolving debt agreement is December 31, 2024.

At April 2, 2023, the Company had utilized a significant portion of the revolving debt, and as a result, it maintains a substantial amount of cash deposits with Heritage Bank. 

At July 2, 2023, the Company had utilized a significant portion of the revolving debt, and as a result, it maintains a substantial amount of cash deposits with Heritage Bank.

The concentration of cash with one financial institution poses certain risks.

For instance, adverse developments affecting financial institutions, companies in the financial services industry or the financial services industry generally, such as actual events or concerns involving liquidity, defaults or non-performance, could adversely impact the stability of Heritage Bank, leading to additional financial risks for the Company.

Any material decline in available funding or our ability to access our cash, cash equivalents, and liquidity resources, inclusive of those at Heritage Bank, 

could adversely impact our ability to meet our operating expenses, financial and contractual obligations, or result in breaches of our contractual obligations.

For instance, adverse developments affecting financial institutions, companies in the financial services industry or the financial services industry, such as actual events or concerns involving liquidity, defaults, or non-performance, could adversely impact the stability of Heritage Bank, leading to additional financial risks for the Company.

Any material decline in available funding or our ability to access our cash, cash equivalents, and liquidity resources, inclusive of those at Heritage Bank, could adversely impact our ability to meet our operating expenses, financial and contractual obligations, or result in breaches of our contractual obligations.

Any of these impacts could have material adverse impacts on our operations and liquidity.

1 unchanged sentence

During the 

three months ended April 2, 2023  there were no changes to the Company's significant accounting policies from its disclosures in the Annual Report on Form 10 -K for the year ended January 1, 2023 .

three and six months ended July 2, 2023  there were no changes to the Company's significant accounting policies from its disclosures in the Annual Report on Form 10 -K for the year ended January 1, 2023 .

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

10 unchanged sentences

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 Company early adopted ASU No.

2 unchanged sentences

In June 2022, the FASB issued ASU No.

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.

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.

For public business entities, the amendments in this Update are effective for fiscal years beginning after 

9 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 months ended April 2, 2023  

April 3, 2022 , 740 thousand and 578  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.

For the three and six months ended July 2, 2023  

July 3, 2022 , 739 thousand and 536 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 was 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. The warrants are exercisable through May 29, 2023 at a price of $ 19.32 per share.

Warrants to purchase up to 386 thousand shares were issued in connection with the 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. The warrants were exercisable through May 29, 2023 at a price of $ 19.32 per share.

The warrants expired unexercised on May 29, 2023.

Balance Sheet Components

The following table provides details relating to certain balance sheet line items as of April 2, 2023 , and January 1, 2023 (in thousands):

The following table provides details relating to certain balance sheet line items as of July 2, 2023 , and January 1, 2023 (in thousands):

Accounts receivable:

1 unchanged sentence

$ 2,707  

Allowance for doubtful accounts

( 14 )  

Work-in-process

5 unchanged sentences

Other current assets:

Prepaid taxes, royalties, and other prepaid expenses

$ 1,847  

$ 1,305  

Prepaid taxes

Deferred charges

Other prepaid taxes, royalties, and other prepaid expenses

Note receivable (1)

$ 3,045  

9 unchanged sentences

( 12,106 )  

$ 2,183  

Capitalized internal-use software, net:

8 unchanged sentences

Accrued compensation

$ 1,307  

Accrued employee benefits

2 unchanged sentences

$ 1,509  

( 1 ) On April 28, 2023, the Company converted accounts receivable for a customer in the amount of approximately $ 1.16 million to notes receivable (the "Note").

At the time, the Note bore an interest rate of 3.0 % compounded monthly.

If not prepaid prior to the Note maturity date of June 28, 2024, the principal and all accrued and unpaid interest will be due and payable to the Company.

If an event of default occurs, the interest rate will increase to 10.0 %.

All other terms of the note remained the same.

( 2 ) In Q2 2023, the Company capitalized $ 1.67 million related to tooling to be utilized under its long-term professional services contracts.

The tooling will be depreciated over an estimated useful life of seven years.

Note 5  —

1 unchanged sentence

Revolving Line of Credit

As of April 2, 2023 and January 1, 2023 , the Company had $ 15.0 million of revolving debt outstanding with an interest rate of 8.5 % a nd 8.00 % per annum, respectively.

As of July 2, 2023 and January 1, 2023 , the Company had $ 15.0 million of revolving debt outstanding with an interest rate of 8.75 % a nd 8.00 % 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 expenses recognized were $ 33 tho usand and $ 24  thousand for th e  

three months ended April 2, 2023 a nd April 3, 2022 , respectively.

Related interest expenses and annual facility fees recognized were $ 29 tho usand and $ 62 thousand for th e  

three and six months ended July 2, 2023 a nd $ 14 thousand and $ 39 thousand for the three and six months ended July 3, 2022 , respectively.

Note 6  —

7 unchanged sentences

three  years.

Total rent expenses were $ 0.1 million 

for each of t he 

three months ended April 2, 2023  and April 3, 2022 .

Right-of-use assets were approximately $ 1.6 million and $ 1.4 million as of April 2, 2023  and 

Total rent expenses were $ 0.1 million and $ 0.2 million for t he 

three and six months ended July 2, 2023 and 

$ 0.1 million and $ 0.2 million for t he 

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

Right-of-use assets were approximately $ 1.3 million and $ 1.4 million as of July 2, 2023  and 

January 1, 2023 , respectively.

Lease liabilities were approximately $ 1.4 million and $ 1.4 million as of 

April 2, 2023  and 

July 2, 2023  and 

January 1, 2023 , respectively.

1 unchanged sentence

Three Months Ended

April 2, 2023

April 3, 2022

Six Months Ended

Operating lease costs:

2 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 

three months ended April 2, 2023  and  

April 3, 2022  was 

$ 445 thousand and $ 0 , respectively. 

six months ended July 2, 2023  and  

July 3, 2022  was $ 445 thousand and $ 0 , respectively. 

The following table provides the details of supplemental cash flow information (in thousands):

Three Months Ended

April 2, 2023  

April 3, 2022  

Six Months Ended

July 2, 2023  

July 3, 2022  

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

2 unchanged sentences

Financing cash flows used for finance leases

Non-cash ROU assets included in the operating cash flows for the three months ended April 2, 2023 and April 3, 2022 were $ 155 thousand and $ 193 thousand, respectively.

The following table provides the details of right-of-use assets and lease liabilities as of April 2, 2023 and January 1, 2023 (in thousands):

April 2, 2023  

Non-cash ROU assets related to operating leases included in the operating cash flows for the three months ended July 2, 2023 and July 3, 2022 were $ 91 thousand and $ 86 thousand, respectively.

Non-cash ROU assets related to finance leases included in the financing cash flows for the three months ended July 2, 2023 and July 3, 2022 were $ 163 thousand and $ 109 thousand, respectively.

The following table provides the details of right-of-use assets and lease liabilities as of July 2, 2023 and January 1, 2023 (in thousands):

July 2, 2023  

January 1, 2023  

11 unchanged sentences

$ 1,394  

The following table provided the details of future lease payments for operating and finance leases as of April 2, 2023 (in thousands):

The following table provided the details of future lease payments for operating and finance leases as of July 2, 2023 (in thousands):

Operating Leases

2 unchanged sentences

Total lease payments

( 14 )  

Present value of lease liabilities

$ 1,045  

The following table provides the details of lease terms and discount rates as of April 2, 2023 and January 1, 2023 :

April 2, 2023

The following table provides the details of lease terms and discount rates as of July 2, 2023 and January 1, 2023 :

January 1, 2023

8 unchanged sentences

6.71 %  

( 1 ) The operating lease relates to the Company's headquarters in San Jose, CA.

The Company fully intends to renew its lease upon its expiration in Q1'24 and continue at its current location.

7  —

2 unchanged sentences

On March 21, 2023, 

the Company entered into common stock purchase agreements with certain investors for the sale of an aggregate of 450  thousand shares of common stock in registered direct offering direct offerings pursuant to our effective shelf registration statement on Form S- 3  (File 

the Company entered into common stock purchase agreements with certain investors for the sale of an aggregate of 450  thousand shares of common stock in registered direct offerings pursuant to our effective shelf registration statement on Form S- 3  (File 

333 - 266942 ), resulting in net cash proceeds of approximately $ 2.3 million.

5 unchanged sentences

Stock-Based Compensation

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

three months ended April 2, 2023  and April 3, 2022  was as follows (in thousands):

Stock-based compensation expense included in the Company's consolidated financial statements for the three and six months ended July 2, 2023  and July 3, 2022  was as follows (in thousands):

Three Months Ended

April 2, 2023

April 3, 2022

Six Months Ended

Cost of revenue

1 unchanged sentence

Selling, general and administrative

The Company capitalized stock-based compensation amounts were $ 18 thousand and $ 0 for the  

three months ended April 2, 2023  and April 3, 2022 , respectively.

$ 1,301  

The Company capitalized stock-based compensation amounts to capitalized internal-use software and tooling, net of $ 61 thousand and $ 0 for the  

six months ended July 2, 2023  and July 3, 2022 , respectively.

Stock-Based Compensation Award Activity

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

three months ended April 2, 2023  (in thousands):

six months ended July 2, 2023  (in thousands):

Shares Available for Grants

1 unchanged sentence

RSUs forfeited or expired

Balance at April 2, 2023

Options expired

Balance at July 2, 2023

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 

three months ended April 2, 2023 :

six months ended July 2, 2023 :

(in thousands)

2 unchanged sentences

$ 24.50  

Balance outstanding, exercisable, and vested at April 2, 2023

Forfeited or expired

$ 32.93  

Balance outstanding, exercisable, and vested at July 2, 2023

$ 24.24  

No stock options were granted, exercised, or forfeited during the six months ended July 2, 2023.

Stock options for approximately 2 thousand shares expired during the six months ended July 2, 2023.

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

three months ended April 2, 2023 and April 3, 2022 .

six months ended July 3, 2022.

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

three months ended April 2, 2023 and April 3, 2022 . 

six months ended July 2, 2023 and July 3, 2022 . 

Restricted Stock Units

6 unchanged sentences

$ 0.6 million  and $ 1.2 million for the 

three months ended April 2, 2023 and April 3, 2022, respectively.

April 2, 2023 and April 3, 2022 , there was approximately $ 2.2 million  and $ 1.3 million , respectively, in unrecognized compensation expense related to RSUs. The remaining unrecognized stock-based compensation expense as of April 2, 2023  is expected to be recorded over a weighted average period of 1.38  years.

three and six months ended July 2, 2023 and approximately 

$ 0.5 million  and $ 0.9 million for the 

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

July 2, 2023 and July 3, 2022 , there was approximately $ 1.8 million  and $ 1.1 million , respectively, in unrecognized compensation expense related to RSUs. The remaining unrecognized stock-based compensation expense as of July 2, 2023  is expected to be recorded over a weighted average period of 1.18  years.

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

three months ended April 2, 2023  is as follows:

six months ended July 2, 2023  is as follows:

RSUs & PRSUs Outstanding

3 unchanged sentences

( 45 )  

Nonvested at April 2, 2023

Nonvested at July 2, 2023

Employee Stock Purchase Plan

Total stock-based compensation related to the Company's Employee Stock Purchase Plan was approximately $ 16 thousand and $ 75 thousand for the 

three months ended April 2, 2023 , and April 3, 2022, respectively.

three and six months ended July 2, 2023 , respectively, and $ 11 thousand and $ 34 thousand for the 

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

Note 9 —

The Company recorded a net income tax expense of $ 7 thousand for the 

three months ended April 2, 2023  and a net income tax benefit of $ 1 thousand for the 

three months ended April 3, 2022 .

The effective tax rate was ( 0.6 %) and 0.1 % for the three months ended March 31, 2022 and 2021, respectively.

The effective tax rates differ from the statutory tax rate of 21 %, primarily due to the Company's valuation allowance movement in each period presented.

It is more likely than not that the Company will not realize the federal, state, and certain foreign deferred tax assets as of April 2, 2023.

As such, the Company continues to maintain a full valuation allowance against all of its US and certain foreign net deferred tax assets as of April 2, 2023.

The Company recorded a net income tax benefit of $ 7 thousand and $ 0 for the 

three and six months ended July 2, 2023 , respectively, and a net income tax expense of $ 17 thousand and $ 16 thousand for the 

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

The difference between the estimated annual effective income benefit of 3.04 % and the U.S.

federal statutory tax rate of 21 % is primarily due to the Company's valuation allowance movement in each period presented.

It is more likely than not that the Company will not realize the federal, state, and certain foreign deferred tax assets as of July 2, 2023.

As such, the Company continues to maintain a full valuation allowance against all of its US and certain foreign net deferred tax assets as of July 2, 2023.

Note 10 —

4 unchanged sentences

Three Months Ended

April 2, 2023

April 3, 2022

Six Months Ended

$ 2,233  

$ 3,131  

$ 5,288  

$ 6,581  

Mature products

2 unchanged sentences

$ 4,541  

$ 7,054  

$ 8,637  

New products revenue consists of revenues from the sale of hardware products manufactured on 

4 unchanged sentences

Three Months Ended

April 2, 2023

April 3, 2022

Six Months Ended

Hardware products

$ 1,464  

$ 3,299  

eFPGA IP and professional services

2 unchanged sentences

$ 3,131  

eFPGA IP revenue for the three months ended April 3, 2023 was $ 2.8 million which was comprised of approximately $ 2.6 professional services revenue and $ 0.2 million in eFPGA intellectual property license revenue.

eFPGA IP revenue for the three months ended April 3, 2022 of $ 1.6 million was primarily professional service revenue.

Contract assets related to professional services revenue were $ 2.3 million and $ 0.1 million for the three months ended April 2, 2023 and April 3, 2022, respectively.

Contract liabilities related to professional services revenue were $ 0.3 million and $ 0 for the three months ended April 2, 2023 and April 3, 2022, respectively.

$ 5,288  

$ 6,581  

eFPGA IP revenue for the three months ended July 2, 2023 was $ 1.9 million, which was primarily professional services revenue.

eFPGA IP revenue for the three months ended July 3, 2022 was $ 1.6 million, which was comprised of approximately $ 1.5 million in professional services revenue and $ 0.1 million in eFPGA intellectual property license revenue.

Contract assets related to professional services revenue were $ 1.0 million and $ 0.3 million as of July 2, 2023 and July 3, 2022, respectively.

Contract liabilities related to professional services revenue were $ 294 thousand as of July 2, 2023 and $ 0 as of July 3, 2022.

The tables below present disaggregated revenues by geographical location.

1 unchanged sentence

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

Revenue in the United States was $ 3.3 million, or 80 % of total revenue, for the 

three months ended April 2, 2023 , and $ 2.4 million, or 59 % of total revenue for the 

three months ended April 3, 2022 .

Revenue in the United States was $ 2.3 million, or 80 % of total revenue, and $ 5.6 million, or 80 % of total revenue for the 

three and six months ended July 2, 2023 , respectively, and $ 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.

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

Three Months Ended

April 2, 2023

April 3, 2022

Six Months Ended

$ 1,169  

$ 2,331  

North America

2 unchanged sentences

$ 4,541  

$ 7,054  

$ 8,637  

The following distributors and customers accounted for 10 % or more of the Company's revenue for the periods presented:

Three Months Ended

Six Months Ended

Distributor "A"

Distributor "C"

Distributor "E"

2 unchanged sentences

Distributor "A"

Distributor "C"

Commitments and Contingencies

4 unchanged sentences

Certain wafer manufacturers require the Company to forecast wafer starts several months in advance.

The Company is committed to take delivery of and to pay for a portion of forecasted wafer volume. As of April 2, 2023 , the Company had no significant outstanding commitments for the purchase of wafer inventory.

The Company is committed to taking delivery of and paying for a portion of forecasted wafer volume. As of July 2, 2023 , the Company had no significant outstanding commitments for the purchase of wafer inventory.

Purchase Obligations

3 unchanged sentences

not  recorded on the Company's consolidated balance sheets.

As of April 2, 2023 , total outstanding purchase obligations for other goods and services were $ 1.3 million due within the next twelve months.

As of July 2, 2023 , total outstanding purchase obligations for other goods and services were $ 2.7 million due within the next twelve months.

Contingencies

1 unchanged sentence

not  recorded on the Company’s consolidated balance sheets and represent significant contractual obligations on procurement contracts with determinable prices and quantities, but where the timing and probability of incurring the obligation is dependent on numerous variables which are 

not  reasonably predictable. These obligations require our suppliers to build and deliver certain products in sufficient time to meet the Company’s planning horizon. The actual amounts we pay to our suppliers and the timing of payments for these future obligations could differ materially from our current estimates.

As of April 2, 2023 , contingent commitments were approximately $ 3.8 million due within the next 

twelve  months and $ 8.7 million d ue within 

two  to 

three  years.

not predictable. These obligations require our suppliers to build and deliver certain products in sufficient time to meet the Company’s planning horizon. The actual amounts we pay to our suppliers and the timing of payments for these future obligations could differ materially from our current estimates.

As of July 2, 2023 , contingent commitments were approximately $ 1.4 million due within FY'23 and an additional $ 8.7 million due from FY'24 to FY'26.

These amounts represent the Company’s best estimates for contingent commitments which are expected to be delivered at some time in the future but for which delivery is currently undefined. 

6 unchanged sentences

On April 28, 2023, the Company converted accounts receivable for a customer in the amount of approximately $ 1.16 million to notes receivable (the "Note").

If not prepaid prior to the Note maturity date of April 28, 2024, the principal and all accrued and unpaid interest will be due and payable to the Company.

The Note will bear an interest rate of 3.0 % compounded monthly.

If an event of default occurs, the interest will increase to 10.0 %.

On August 11, 2023, QuickLogic Corporation ("the Company") signed an extension to an existing eFPGA IP and Design Services contract for approximately $ 15 million.

The Company's deliverables will extend into 2024.

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