What changed in this filing

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Item 1. Business

2025-03-26 compared with 2024-03-27 · 52 added, 44 removed, 241 unchanged (28% of the section changed)

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The Analytics Toolkit from SensiML Corporation ("SensiML"), our wholly-owned subsidiary, provides an end-to-end Artificial Intelligence / Machine Learning solution with accurate sensor algorithms using AI technology.

The full range of platforms, software tools, and eFPGA IP enables the practical and efficient adoption of AI, voice, and sensor processing across Aerospace, and Defense, Consumer/Industrial IoT, and Consumer Electronics markets.

The full range of products, software tools, and eFPGA IP enables the practical and efficient field programmability for our customers across Aerospace and Defense, Consumer/Industrial IoT, and Consumer Electronics markets.

Our new products include the following:

eFPGA IP Licensing business, associated professional services, consisting of development and integration of eFPGA technology into custom semiconductor solutions, our silicon products consisting of EOS™, QuickAI™, ArcticLink® III, PolarPro®3, PolarPro II, PolarPro, and Eclipse II products.

eFPGA IP Licensing business, associated professional services, consisting of development and integration of eFPGA technology into custom semiconductor solutions, and our silicon products consisting of EOS™, QuickAI™, ArcticLink® III, PolarPro®3, PolarPro II, PolarPro, and Eclipse II products.

In addition to delivering our own semiconductor solutions, our new products category includes our AI/ML Software Platform from our wholly-owned subsidiary company, SensiML, which includes Software as a Service (SaaS) subscriptions for development, per unit license fees when deployed in production, and proof-of-concept services, all of which are also included in the new products revenue category.

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For our AI/ML Software, SensiML collaborates with several microcontroller and sensor manufacturers to integrate the microcontroller and/or sensor manufacturers’ development kits with SensiML’s Analytics Toolkit in order to showcase combined solutions for AI/ML applications.

Currently, these collaborations include Infineon Technologies, On Semiconductor Corp., Microchip Technology Inc., Silicon Laboratories, Inc., STMicroelectronics N.V., Arduino, NXP Semiconductors N.V., Raspberry Pi, and Nordic Semiconductor.

Our eFPGA IP is currently developed on 12nm, 16nm, 22nm, 28nm, 40nm, 65nm, 90nm, 130nm, and 250nm process nodes with a roadmap to more advanced nodes.

Currently, these collaborations include On Semiconductor Corp., Microchip Technology Inc., Silicon Laboratories, Inc., Arduino, NXP Semiconductors N.V., Raspberry Pi, and Nordic Semiconductor.

Our eFPGA IP is currently developed on 12nm, 16nm, 22nm, 28nm, 40nm, 65nm, 90nm, 130nm, and 250nm process nodes with a roadmap to more advanced, sub-10nm nodes.

The licensable IP is generated by our automated compiler tool called Australis™, which enables our engineers to create an eFPGA IP for our licensees that they can then integrate into their SoC without significant involvement by QuickLogic.

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In order to grow our revenue from its current level, we depend upon increased revenue from our new products, including existing new product platforms and platforms currently in development.

We expect our business growth to be driven mainly by eFPGA IP and our silicon solutions, with additional contributions from SensiML AI Software.

We expect our business growth to be driven mainly by eFPGA IP and our silicon solutions.

Therefore, our revenue growth needs to be strong enough to enable us to sustain profitability while we continue to invest in the development, sale, and marketing of our new solution platforms, IP, and software.

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Our fiscal year ends on the Sunday closest to December 31.

References to Fiscal Years 2023, 2022, and 2021 refer to the Fiscal Years ended December 31, 2023 , January 1, 2023 , and January 2, 2022 , respectively.

References to Fiscal Years 2024, 2023, and 2022 refer to the Fiscal Years ended December 29, 2024 , December 31, 2023 , and January 1, 2023 , respectively.

Industry Background

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End market use includes Aerospace and Defense, Industrial, Computing, Communications, IoT, and Consumer.

According to a recent research report published by Grand View Research, the FPGA market is expected to grow at >10% Compound Annual Growth Rate ("CAGR") from 2023 to 2030.

Of that, the Aerospace and Defense segment is expected to expand at the fastest CAGR of 12.7% over the same forecast period.

According to a recent research report published by Markets and Markets, the FPGA market was valued at $12.1 billion in 2024 and is projected to reach $25.8 billion by 2029, growing at a CAGR of 16.4% during the forecast period from 2024 to 2029.

Additionally, according to SNS Insider, the military and aerospace segment is expected to grow at the fastest CAGR, fueled by the adoption of embedded FPGAs.

High-density FPGAs provide advanced levels of integration, reliability, and low-leakage power consumption required for high-performance aviation and defense applications.

The emergence of embedded field programmable gate array IP technology ("eFPGA IP") has particularly favored the aerospace and defense industry by offering even better integration, reliability, and low power options over the use of traditional discrete FPGAs.

The Aerospace and Defense and Industrial markets are well served by existing core silicon or custom ASIC development.

Although much of these market's uses are generally not as price, power, and size sensitive, there are use cases for reducing size, weight and power.

Although much of these markets' uses are generally not as price, power, and size sensitive, there are use cases for reducing size, weight, and power.

When there is a strong need for a custom solution to address specific functionality or operating environment (e.g., high radiation, extended temperature ranges, etc.), designers often turn to discrete FPGAs, or in some cases when standard FPGAs do not exist, an ASIC.

QuickLogic FPGAs have a loyal following in certain segments of these markets, particularly when instant-on, energy efficiency, high reliability, or intellectual property security is important.

In the past two years, QuickLogic has also entered into multiple, large eFPGA-related contracts with customers in the Aerospace and Defense market and expects to continue to do so in the future.

Since 2022, QuickLogic has also entered into multiple, large eFPGA-related contracts with customers in the Aerospace and Defense market and expects to continue to do so in the future.

Historically, the Defense market has followed QuickLogic’s mature products revenue trend, but recent advancements in QuickLogic’s Australis IP generator tool, the recent Strategic Radiation Hardened FPGA contract for the U.S.

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We market our programmable logic (FPGAs and eFPGA IP) solutions primarily to Defense Industrial Base contractors, U.S.

Government entities, and System OEMs, and fabless semiconductor companies.

Government entities, System OEMs, and fabless semiconductor companies.

These customers may value one or more of our product categories.

A solution can be based on our programmable technology, which enables customized designs, low power, flexibility, rapid time-to-market, longer time-in-market, and lower total cost of ownership.

We are capable of providing complete solutions because of our investment in developing the low power IP and software required to implement specific functions, along with sensor software algorithms optimized for our architecture.

We are capable of providing complete solutions because of our investment in developing the low power IP and software required to implement specific functions.

In some cases, we develop the IPs and either software or firmware ourselves and, in other cases, we utilize third parties to develop the mixed signal physical layers, logic, and/or software.

We market our SoC and SensiML solutions to OEMs and ODMs offering differentiated Consumer/IoT products, to processor vendors wishing to expand their served available market, and to sensor manufacturers and sensor processing software companies wishing to expand their ecosystems.

Our target markets for our SoC and SensiML products include Consumer/Industrial IoT and Consumer Electronics.

By using our silicon platforms, our IPs, our software, and our in-depth architecture knowledge, we can deliver energy efficient custom solutions that blend the benefits of traditional ASSPs with the flexibility, product proliferation, differentiation, and low total cost of ownership advantages of programmable logic.

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An example of the unique process combination is when we use foundry-provided CMOS with MRAM in the Strategic Radiation Hardened FPGA program for which we are the prime contractor.

The second type of is our programmable logic is our ViaLink® OTP technology.

ViaLink is our proprietary and patented technology and possesses the characteristics of non-volatility and instant-on, very low standby power, low dynamic power, small form factor, power cycles easily and quickly are required.

The second type of programmable logic is our ViaLink® OTP technology.

ViaLink is our proprietary and patented technology and possesses the characteristics of non-volatility and instant-on, very low standby power, low dynamic power, and small form factor.

Semiconductor Intellectual Property

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For our Mature products, we continue to support a 100% proprietary FPGA User Tool.

For our new products and eFPGA IP, we support a 100% open-source version, as well as a hybrid FPGA User Tool called Aurora that combines open-source and proprietary technology.

For our new products and eFPGA IP, we support a 100% open-source version, as well as a hybrid FPGA User Tool called Aurora that combines open-source and proprietary technology, including logic synthesis via Synopsys's Synplify® product.

Silicon Platforms

We have two types of silicon platforms, discrete FPGAs and SoCs that embed FPGA technology.

We have a variety of discrete FPGAs – historically based on our ViaLink technology, more recently based on our Reprogrammable technology (either SRAM- or MRAM-based configuration).

We also have multiple silicon platforms that fall under the SoC category - ArcticLink and EOS S3, EOS S3 LV, and EOS S3AI.

We have a variety of discrete FPGAs – historically based on our ViaLink technology and more recently based on our Reprogrammable technology (either SRAM- or MRAM-based configuration).

We also have multiple silicon platforms that fall under the SoC category - ArcticLink, EOS S3, EOS S3 LV, and EOS S3AI.

Our SoC platforms combine mixed signal physical functions, hard-wired logic, and programmable logic on one device.

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We monetize our technology through hardware product sales and eFPGA IP licenses, with any necessary corresponding work delivered via professional engineering services, SensiML Analytics Toolkit subscriptions, and per unit royalties.

We specialize in enhancing the user experience in leading edge IoT hardware products.

For our customers, we enable hardware and sensor algorithmic differentiation quickly, cost-effectively, and at low power.

For our partners, we expand their reach into new segments and new use cases, thereby expanding the served available market for their existing hardware products.

Our embedded FPGA technology gives ASIC and SoC developers the benefit of flexibility to make design changes post-manufacturing changes at very fast time-to- and time-in-market, while keeping power consumption low.

We specialize in enabling field programmability of our customers' systems - ether via our discrete Field Programmable Gate Array devices or our eFPGA IP.

For our customers, we enable hardware programmability cost-effectively and at low power.

Our embedded FPGA technology gives ASIC and SoC developers the benefit of flexibility to make post-manufacturing design changes at very fast time-to- and time-in-market, while keeping power consumption low.

Our multi-core sensor processing products such as ArcticLink 3 S1, ArcticLink 3 S2, EOS 3, EOS S3 LV, and EOS S3AI provide an extremely power-efficient approach for real-time multi-modal (vision, motion, voice, location, biometric, and environmental) sensor processing independently of the cloud.

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We believe our solutions are resonating with our target customers who value lower power consumption, platform design flexibility, rapid time-to-market, longer time-in-market, and low total cost of ownership available through the use of our solutions.

We sell our products through a network of sales managers in North America, Europe, and Asia.

We sell our products through a network of sales channel partners and direct sales executives in North America, Europe, and Asia.

In addition to our corporate headquarters in San Jose, California, we have international sales operations in Japan and the United Kingdom.

Our sales personnel and independent sales representatives are responsible for sales and application support for a given region, focusing on major strategic accounts, and managing our channel sales partners, such as distributors.

Customers typically order our products through our distributor s.

Currently, we have eight active distributors in North America and a network of seventeen active distributors and sales representatives throughout Eu rope and Asia to support our international business.

Customers typically order our FPGA products through our distributor s.

Currently, we have fourteen active distributors in North America and a network of nineteen active distributors and sales representatives throughout Eu rope and Asia to support our international business.

eFPGA IP customers and SensiML SaaS subscribers typically enter into licensing agreements directly with QuickLogic and SensiML, respectively.

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One customer represented approximately 54% of our total revenue for the year ended December 29, 2024 .

Three customers represented 20%, 16%, and 12% of our total revenue f or the year ended January 1, 2023 .

One customer represented 70% of our total revenue f or the year ended December 31, 2023 .

In addition, a noteworthy portion of our revenue comes from sales to customers located outside of the United States.

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Competitors of our eFPGA semiconductor IP include small, venture-backed startup companies.

In 2024, Analog Devices acquired the assets and technology of our most noteworthy eFPGA competitor, FlexLogix.

Competitors of our low power discrete FPGA devices include suppliers of low-density FPGAs such as Lattice Semiconductor Corp.

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Competitors for our Aerospace and Defense discrete FPGAs include conventional FPGAs suppliers such as Xilinx Inc.

(a subsidiary of Advanced Micro Devices, Inc.), Altera (a subsidiary of Intel Corp.), and Microsemi Corp.

(a subsidiary of Advanced Micro Devices, Inc.), Altera (a recent spin-off of Intel Corp.), and Microsemi Corp.

Competitors of our SensiML AI/ML Software business include several small, venture-backed startup companies.

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We have made and expect to continue to make substantial investments in R&D.

Our R&D expenses were $6.4 million, or 30% of revenue, $5.0 million, or 31% of revenue, and $6.9 million, or 55% of revenue for the years ended December 31, 2023, January 1, 2023, and January 2, 2022, respectively.

Research and development expenses for the year ended December 31, 2023 reflect increases in employee salary, software maintenance, and financing arrangement expenses and reductions in the allocation of R&D expenses to cost of revenues.

Our R&D expenses were $6.5 million, or 33% of revenue, $6.4 million, or 30% of revenue, and $5.0 million, or 31% of revenue for the years ended December 29, 2024, December 31, 2023, and January 1, 2023, respectively.

Research and development expenses for the year ended December 29, 2024 reflect increases in employee salaries, depreciation, and financing arrangement expenses.

Manufacturing

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Employees and Human Capital

As of December 31, 2023, we had 49 employees worldwide, of which 45 employees were located in the United States.

As of December 29, 2024, we had fifty-nine employees worldwide, of which fifty-one employees were located in the United States.

We believe o ur future success depends in part on our continued ability to attract, hire, and retain qualified personnel.

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December 29, 2024, our research and development staff consisted of

20 employees located in California, Oregon, Texas, Utah, and Taiwan.

twenty-eight employees located in California, Oregon, Texas, Utah, New Jersey, Missouri, Canada, and Taiwan.

These employees constitute the following groups:

Our silicon engineering group develops our eFPGA IP and FPGA products.

Our electronic design and automation software group collaborates with the open-source software community to ensure the design libraries, interface routines, and place and route software that allow our customer to take their own designs and target them to programmable hardware products are optimized.

Our electronic design and automation software group collaborates with the open-source software community to ensure the design libraries, interface routines, and place and route software that allow our customers to take their own designs and target them to programmable hardware products are optimized.

Our system software group creates the drivers and other system code required to connect our silicon hardware products to Application Processors, drivers, and microcode to support our sensor hubs.

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We believe that it is important to maintain a large patent portfolio to protect our innovations.

We currently hold 21 active U.S.

patents and have five pending applications for additional U.S.

We currently hold twenty-one active U.S.

patents and have four pending applications for additional U.S.

Our patents contain claims covering various aspects of programmable integrated circuits, programmable interconnect structures, and programmable metal hardware products.

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Vice President, Worldwide Sales

Vice President, Intellectual Property Sales

Chairman of the Board

Radhika Krishnan

Christine Russell

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degree in Chemical Engineering from the University of Illinois, Champaign/Urbana.

Owen Bateman joined QuickLogic in February 1997.

Bateman has served as our Vice President of Worldwide Sales since April 2022.

Prior to this role, Mr.

Bateman served as QuickLogic’s Senior Director of Sales EMEA and USA from 2013 to 2022, and Strategic Accounts, Direct Sales and Channel Sales from 1997 to 2013.

Prior to joining QuickLogic, Mr.

Bateman held sales and field application engineering positions at Intel and Abacus Polar.

Bateman has designed FPGAs and completed several successful FPGAs and custom ASIC designs.

Bateman holds a Higher National Certificate in Electronic and Microelectronic Engineering from Brooklands College, England.

Timothy Saxe (Ph.D.) joined QuickLogic in May 2001.

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in Electrical Engineering from Stanford University.

Owen Bateman joined QuickLogic in February 1997.

Bateman has served as our Vice President of Worldwide Sales since April 2022.

Prior to this role, Mr.

Bateman served as QuickLogic’s Senior Director of Sales EMEA and USA from 2013 to 2022, and Strategic Accounts, Direct Sales and Channel Sales from 1997 to 2013.

Prior to joining QuickLogic, Mr.

Bateman held sales and field application engineering positions at Intel and Abacus Polar.

Bateman has designed FPGAs and completed several successful FPGAs and custom ASIC designs.

Bateman holds a Higher National Certificate in Electronic and Microelectronic Engineering from Brooklands College, England.

Andrew Jaros joined QuickLogic in December 2024 as Vice President of IP Sales, bringing over 20 years of leadership experience in semiconductor IP, embedded systems, and business development.

Prior to joining QuickLogic, Mr.

Jaros most recently served as FlexLogix's World-Wide Vice President of Sales, Marketing, and Solutions Architecture.

Prior to joining FlexLogix, Mr.

Jaros served eleven years in various management and leadership roles licensing ARC processor IP at Synopsys, Virage Logic, and ARC International.

Prior to that, Mr.

Jaros managed a sales team covering North America strategic accounts for ARM.

Jaros started his career as a territory manager for Motorola Semiconductor and holds a B.S.

degree in Chemical Engineering from Arizona State University.

Information regarding the backgrounds of our directors is hereby incorporated by reference from our definitive Proxy Statement relating to the 2025 Annual Meeting of Stockholders, which Proxy Statement is anticipated to be filed within 120 days after the end of the Fiscal Year covered by this Annual Report.

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-K

Item 1. Business