quicklo20231001

quicklo20231001_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended October 1, 2023

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From To

COMMISSION FILE NUMBER: 000-22671

QUICKLOGIC CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

77-0188504

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

2220 Lundy Avenue, San Jose, CA 95131-1816

(Address of principal executive offices including zip code))

(408) 990-4000

(Registrant's telephone number, including area code)

Securities registered pursuant Section 12(b) of the act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.001 per share	QUIK	The Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated Filer	☐
Non-accelerated filer	☒	Smaller Reporting Company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act). Yes ☐ No ☒

As of November 10, 2023, there were 13,910,127 shares of registrant’s common stock, par value $0.001 per share, outstanding.

Table of Contents

QUICKLOGIC CORPORATION

FORM 10-Q

October 1, 2023

TABLE OF CONTENTS

		Page
Part I - Financial Information		3

Item 1.	Unaudited Condensed Consolidated Financial Statements	3

	Consolidated Balance Sheets	3

	Consolidated Statements of Operations	4

	Consolidated Statements of Cash Flows	5

	Consolidated Statements of Changes in Stockholders’ Equity	6

	Notes to Unaudited Condensed Consolidated Financial Statements	7

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	16

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24

Item 4.	Controls and Procedures	24

Part II - Other Information		24

Item 1.	Legal Proceedings	24

Item 1A.	Risk Factors	24

Item 3.	Defaults Upon Senior Securities	24

Item 6.	Exhibits	24

Signatures		25

Table of Contents

PART I. Financial Information

Item 1. Financial Statements

QUICKLOGIC CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value amount)

	*October 1,*			*January 1,*
	*2023*			*2023*
ASSETS
Current assets:
Cash, cash equivalents and restricted cash	$	18,625		$	19,201
Accounts receivable, net of allowance for doubtful accounts of $16 and $18, as of October 1, 2023 and January 1, 2023, respectively		481			2,689
Contract assets		4,015			1,987
Note receivable		1,186			—
Inventories		2,030			2,493
Prepaid expenses and other current assets		1,726			1,570
Total current assets		28,063			27,940
Property and equipment, net		4,547			465
Capitalized internal-use software, net		1,666			1,514
Right of use assets, net		1,082			1,397
Intangible assets, net		564			645
Non-marketable equity investment		300			300
Goodwill		185			185
Other assets		142			140
TOTAL ASSETS	$	36,549		$	32,586

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Revolving line of credit	$	15,000		$	15,000
Trade payables		3,851			2,391
Accrued liabilities		2,047			1,509
Deferred revenue		333			272
Lease liabilities, current		821			850
Total current liabilities		22,052			20,022
Long-term liabilities:
Lease liabilities, non-current		284			544
Other liabilities, non-current		173			125
Total liabilities		22,509			20,691
Commitments and contingencies (see Note 11)
Stockholders' equity:
Preferred stock, $0.001 par value; 10,000 shares authorized; no shares issued and outstanding		—			—
Common stock, $0.001 par value; 200,000 authorized; 13,906 and 13,202 shares issued and outstanding as of October 1, 2023 and January 1, 2023, respectively		14			13
Additional paid-in capital		321,623			317,174
Accumulated deficit		(307,597	)		(305,292	)
Total stockholders' equity		14,040			11,895
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	36,549		$	32,586

See accompanying notes to unaudited condensed consolidated financial statements.

Table of Contents

QUICKLOGIC CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

	*Three Months Ended*						*Nine Months Ended*
	*October 1,*			*October 2,*			*October 1,*			*October 2,*
	*2023*			*2022*			*2023*			*2022*
Revenue	$	6,665		$	3,459		$	13,719		$	12,096
Cost of revenue		1,537			1,781			4,998			5,413
Gross profit		5,128			1,678			8,721			6,683
Operating expenses:
Research and development		1,933			1,018			5,067			3,541
Selling, general and administrative		1,915			1,900			5,700			6,018
Total operating expenses		3,848			2,918			10,767			9,559
Operating income (loss)		1,280			(1,240	)		(2,046	)		(2,876	)
Interest expense		(48	)		(44	)		(156	)		(98	)
Interest income and other (expense) income, net		(36	)		(60	)		(99	)		(42	)
Income (loss) before income taxes		1,196			(1,344	)		(2,301	)		(3,016	)
Provision for income taxes		4			3			4			19
Net income (loss)	$	1,192		$	(1,347	)	$	(2,305	)	$	(3,035	)
Net income (loss) per share:
Basic EPS	$	0.09		$	(0.11	)	$	(0.17	)	$	(0.24	)
Diluted EPS	$	0.08		$	(0.11	)	$	(0.17	)	$	(0.24	)
Weighted average shares outstanding:
Basic		13,859			12,664			13,377			12,401
Diluted		14,131			12,664			13,377			12,401

Note: Net income (loss) equals comprehensive income (loss) for all periods presented.

See accompanying notes to unaudited condensed consolidated financial statements.

Table of Contents

QUICKLOGIC CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	*Nine Months Ended*
	*October 1,*			*October 2,*
	*2023*			*2022*
Cash flows from operating activities:
Net loss	$	(2,305	)	$	(3,035	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		697			516
ROU asset amortization		760			585
Stock-based compensation		1,917			1,347
Write-down of inventories and reclassifications		605			72
Gain on disposal of equipment		—			(27	)
Other		4			—
Changes in operating assets and liabilities:
Accounts receivable		2,205			(2,611	)
Contract assets		(2,028	)		—
Inventories		(142	)		(195	)
Other assets		(1,343	)		(158	)
Trade payables		(836	)		668
Accrued liabilities		537			(52	)
Deferred revenue		61			(239	)
Lease Liabilities		(298	)		(272	)
Other long-term liabilities		48			(22	)
Net cash used in operating activities		(118	)		(3,423	)
Cash flows from investing activities:
Capital expenditures for property and equipment		(2,015	)		(139	)
Capitalized internal-use software		(422	)		(495	)
Net cash used in investing activities		(2,437	)		(634	)
Cash flows from financing activities:
Payment of finance lease obligations		(435	)		(299	)
Proceeds from line of credit		45,000			45,000
Repayment of line of credit		(45,000	)		(45,000	)
Proceeds from issuance of common stock		121			4,787
Proceeds from issuance of common stock to investors		2,313			—
Stock issuance cost		(20	)		—
Net cash provided by financing activities		1,979			4,488
Net increase (decrease) in cash, cash equivalents and restricted cash		(576	)		431
Cash, cash equivalents and restricted cash at beginning of period		19,201			19,605
Cash, cash equivalents and restricted cash at end of period	$	18,625		$	20,036

Supplemental disclosures of cash flow information:
Interest paid	$	59		$	18
Income taxes paid	$	11		$	14

Supplemental disclosures of noncash financing and investing items
Purchases of fixed assets with financing lease	$	445		$	—
Stock-based compensation capitalized as internal-use software	$	119		$	—
Purchases of property and equipment in accounts payable	$	2,296		$	—

See accompanying notes to unaudited condensed consolidated financial statements.

Table of Contents

QUICKLOGIC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(In thousands)

					*Additional*					*Total*
	*Common Stock*				*Paid-In*		*Accumulated*			*Stockholders'*
	*Shares*		*Amount*		*Capital*		*Deficit*			*Equity*
Balance at January 1, 2023		13,202	$	13	$	317,174	$	(305,292	)	$	11,895
Issuance of common stock under public stock offering, net of stock issuance cost		450		1		2,292		—			2,293
Common stock issued under stock plans and employee stock purchase plans		34		—		—		—			—
Stock-based compensation		—		—		715		—			715
Net loss		—		—		—		(1,228	)		(1,228	)
Balance at April 2, 2023		13,686		14		320,181		(306,520	)		13,675
Common stock issued under stock plans and employee stock purchase plan		39		—		122		—			122
Stock-based compensation		—		—		647		—			647
Net loss		—		—		—		(2,269	)		(2,269	)
Balance at July 2, 2023		13,725		14		320,950		(308,789	)		12,175
Common stock issued under stock plans and employee stock purchase plan		181