quicklo20240611

quicklo20240611_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 June 30, 2024

☐	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 August 9, 2024, there were 14,465,609 shares of registrant’s common stock, par value $0.001 per share, outstanding.

Table of Contents

QUICKLOGIC CORPORATION

FORM 10-Q

June 30, 2024

TABLE OF CONTENTS

		Page
Part I - Financial Information		3

Item 1.	Unaudited Condensed Consolidated Financial Statements	3

	Unaudited Condensed Consolidated Balance Sheets	3

	Unaudited Condensed Consolidated Statements of Operations	4

	Unaudited Condensed Consolidated Statements of Cash Flows	5

	Unaudited Condensed 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	25

Item 4.	Controls and Procedures	25

Part II - Other Information		25

Item 1.	Legal Proceedings	25

Item 1A.	Risk Factors	25

Item 3.	Defaults Upon Senior Securities	25

Item 5.	Other Information	25

Item 6.	Exhibits	25

Signatures		26

Table of Contents

PART I. Financial Information

Item 1. Unaudited Condensed Consolidated Financial Statements

QUICKLOGIC CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value amount)

	*June 30,*			*December 31,*
	*2024*			*2023*
ASSETS
Current assets:
Cash, cash equivalents and restricted cash	$	23,266		$	24,606
Accounts receivable, net of allowance for doubtful accounts of $24 and $34, as of June 30, 2024 and December 31, 2023, respectively		928			1,625
Contract assets		2,254			3,609
Inventories, net		1,751			2,029
Prepaid expenses and other current assets		1,686			1,561
Total current assets		29,885			33,430
Property and equipment, net		12,043			8,948
Capitalized internal-use software, net		2,287			2,069
Right of use assets, net		896			981
Intangible assets, net		484			537
Non-marketable equity investment		300			300
Goodwill		185			185
Note receivable		1,229			1,200
Other assets		142			142
TOTAL ASSETS	$	47,451		$	47,792

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Revolving line of credit	$	20,000		$	20,000
Trade payables		1,449			4,657
Accrued liabilities		1,277			2,673
Deferred revenue		756			1,052
Note payable, current		890			946
Lease liabilities, current		266			302
Total current liabilities		24,638			29,630
Long-term liabilities:
Lease liabilities, non-current		609			681
Notes payable, non-current		274			461
Other liabilities, non-current		125			125
Total liabilities		25,646			30,897
Commitments and contingencies (see Note 13)
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; 14,458 and 14,118 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively		14			14
Additional paid-in capital		328,788			322,436
Accumulated deficit		(306,997	)		(305,555	)
Total stockholders' equity		21,805			16,895
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	47,451		$	47,792

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*						*Six Months Ended*
	*June 30,*			*July 2,*			*June 30,*			*July 2,*
	*2024*			*2023*			*2024*			*2023*
Revenue	$	4,127		$	2,921		$	10,134		$	7,054
Cost of revenue		2,022			1,718			4,046			3,461
Gross profit		2,105			1,203			6,088			3,593
Operating expenses:
Research and development		1,527			1,505			2,986			3,134
Selling, general and administrative		2,095			1,924			4,446			3,785
Total operating expenses		3,622			3,429			7,432			6,919
Operating income (loss)		(1,517	)		(2,226	)		(1,344	)		(3,326	)
Interest expense		(40	)		(50	)		(109	)		(108	)
Interest income and other income (expense), net		1			—			12			(63	)
Income (loss) before income taxes		(1,556	)		(2,276	)		(1,441	)		(3,497	)
(Benefit from) provision for income taxes		(6	)		(7	)		1			—
Net income (loss)	$	(1,550	)	$	(2,269	)	$	(1,442	)	$	(3,497	)
Net income (loss) per share:
Basic	$	(0.11	)	$	(0.17	)	$	(0.10	)	$	(0.26	)
Diluted	$	(0.11	)	$	(0.17	)	$	(0.10	)	$	(0.26	)
Weighted average shares outstanding:
Basic		14,439			13,709			14,308			13,297
Diluted		14,439			13,709			14,308			13,297

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)

	*Six Months Ended*
	*June 30,*			*July 2,*
	*2024*			*2023*
Cash flows provided by (used in) operating activities:
Net income (loss)	$	(1,442	)	$	(3,497	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		1,674			734
ROU asset amortization		131			181
Stock-based compensation		2,477			1,302
Write-down of inventories and reclassifications		47			212
Other		(10	)		5
Changes in operating assets and liabilities:
Accounts receivable		706			1,747
Contract assets		1,355			974
Inventories		231			(174	)
Other assets		262			(1,162	)
Trade payables		(3,657	)		(840	)
Accrued liabilities		(1,397	)		371
Deferred revenue		(296	)		22
Lease liabilities		(154	)		(196	)
Net cash provided by (used in) operating activities		(73	)		(321	)
Cash flows provided by (used in) investing activities:
Capital expenditures for property and equipment		(4,053	)		(87	)
Capitalized internal-use software		(420	)		(442	)
Net cash provided by (used in) investing activities		(4,473	)		(529	)
Cash flows provided by (used in) financing activities:
Payment of notes payable

SEC Form 10-Q filed by QuickLogic Corporation