quicklo20221003

quicklo20221003_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 2, 2022

☐	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 11, 2022, there were 13,112,540 shares of registrant’s common stock, par value $0.001 per share, outstanding.

Table of Contents

QUICKLOGIC CORPORATION

FORM 10-Q

October 2, 2022

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	15

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 2,*			*January 2,*
	*2022*			*2022*
ASSETS
Current assets:
Cash, cash equivalents and restricted cash	$	20,036		$	19,605
Accounts receivable, net of allowance for doubtful accounts of $60 and $62, respectively⁽¹⁾		3,905			1,294
Inventories		2,201			2,078
Other current assets		1,357			1,181
Total current assets		27,499			24,158
Property and equipment, net		514			499
Capitalized internal-use software, net		1,451			1,241
Right of use assets		944			1,529
Intangible assets		672			752
Goodwill		185			185
Investment in privately-held non-affiliate		300			300
Other assets		191			309
TOTAL ASSETS	$	31,756		$	28,973

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Revolving line of credit	$	15,000		$	15,000
Trade payables		1,602			934
Accrued liabilities		1,513			1,665
Deferred revenue		216			455
Lease liabilities, current		646			819
Total current liabilities		18,977			18,873
Long-term liabilities:
Lease liabilities, non-current		346			744
Other liabilities, non-current		125			147
Total liabilities		19,448			19,764
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; 13,110 and 11,863 shares issued and outstanding as of October 2, 2022 and January 2, 2022, respectively		13			12
Additional paid-in capital		316,355			310,222
Accumulated deficit		(304,060	)		(301,025	)
Total stockholders' equity		12,308			9,209
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	31,756		$	28,973

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

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 2,*			*October 3,*			*October 2,*			*October 3,*
	*2022*			*2021*			*2022*			*2021*
Revenue	$	3,459		$	3,858		$	12,096		$	8,980
Cost of revenue		1,781			1,126			5,413			3,638
Gross profit		1,678			2,732			6,683			5,342
Operating expenses:
Research and development		1,018			1,807			3,541			5,346
Selling, general and administrative		1,900			2,186			6,018			5,927
Total operating expenses		2,918			3,993			9,559			11,273
Loss from operations		(1,240	)		(1,261	)		(2,876	)		(5,931	)
Interest expense		(44	)		(35	)		(98	)		(99	)
Gain on forgiveness of debt		—			—			—			1,192
Interest income and other expense, net		(60	)		(7	)		(42	)		(59	)
Loss before income taxes		(1,344	)		(1,303	)		(3,016	)		(4,897	)
Provision for (benefit from) income taxes		3			(21	)		19			136
Net loss	$	(1,347	)	$	(1,282	)	$	(3,035	)	$	(5,033	)
Net loss per share:
Basic and diluted	$	(0.11	)	$	(0.11	)	$	(0.24	)	$	(0.44	)
Weighted average shares outstanding:
Basic and diluted		12,664			11,573			12,401			11,441

Note: Net loss equals comprehensive 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 2,*			*October 3,*
	*2022*			*2021*
Cash flows from operating activities:
Net loss	$	(3,035	)	$	(5,033	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		516			471
Stock-based compensation		1,347			1,455
Write-down of inventories and reclassifications		72			225
Gain on disposal of equipment		(27	)		(5	)
Gain on forgiveness of debt		—			(1,192	)
Bad debt expense		—			62
Changes in operating assets and liabilities:
Accounts receivable		(2,611	)		(386	)
Inventories		(195	)		281
Other assets		(158	)		(90	)
Trade payables		981			699
Accrued liabilities		(52	)		251
Deferred revenue		(239	)		42
Other long-term liabilities		(22	)		167
Net cash used in operating activities		(3,423	)		(3,053	)
Cash flows from investing activities:
Capital expenditures for property and equipment		(139	)		(178	)
Capitalized internal-use software		(495	)		(402	)
Net cash used in investing activities		(634	)		(580	)
Cash flows from financing activities:
Payment of finance lease obligations		(299	)		(231	)
Proceeds from line of credit		45,000			45,000
Repayment of line of credit		(45,000	)		(45,000	)
Proceeds from issuance of common stock, net		4,787			1,182
Taxes paid related to settlement of equity awards		—			(485	)
Net cash provided by financing activities		4,488			466
Net increase (decrease) in cash, cash equivalents and restricted cash		431			(3,167	)
Cash, cash equivalents and restricted cash at beginning of period		19,605			22,748
Cash, cash equivalents and restricted cash at end of period	$	20,036		$	19,581

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 2, 2022		11,863	$	12	$	310,222	$	(301,025	)	$	9,209
Issuance of common stock under public stock offering, net of stock issuance cost		310		—		1,482		—			1,482
Common stock issued under stock plans and employee stock purchase plans		189		—		—		—			—
Stock-based compensation		—		—		383		—			383
Net loss		—		—		—		(1,164	)		(1,164	)
Balance at April 3, 2022		12,362		12		312,087		(302,189	)		9,910
Common stock issued under stock plans and employee stock purchase plan		66		—		122		—			122
Stock-based compensation		—		—		477		—			477
Net loss		—		—		—		(524	)		(524	)
Balance at July 3, 2022		12,428		12		312,686		(302,713	)		9,985
Common stock issued under stock plans and employee stock purchase plan		195		—		—		—			—
Common stock offering, net of issuance costs		487

SEC Form 10-Q filed by QuickLogic Corporation