quicklo20230402b

quicklo20230402b_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 April 2, 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 May 12, 2023, there were 13,689,509 shares of registrant’s common stock, par value $0.001 per share, outstanding.

		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	19

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29

Item 4.	Controls and Procedures	29

Part II - Other Information		30

Item 1.	Legal Proceedings	30

Item 1A.	Risk Factors	30

Item 3.	Defaults Upon Senior Securities	30

Item 6.	Exhibits	30

Signatures		31

	*April 2,*			*January 1,*
	*2023*			*2023*
ASSETS
Current assets:
Cash, cash equivalents and restricted cash	$	20,902		$	19,201
Accounts receivable, net of allowance for doubtful accounts of $8 and $18, as of April 2, 2023 and January 1, 2023, respectively		2,090			2,689
Contract assets		2,328			1,987
Inventories		2,497			2,493
Prepaid expenses and other current assets		2,064			1,570
Total current assets		29,881			27,940
Property and equipment, net		442			465
Capitalized internal-use software, net		1,576			1,514
Right of use assets, net		1,592			1,397
Intangible assets, net		618			645
Non-marketable equity investment		300			300
Goodwill		185			185
Other assets		142			140
TOTAL ASSETS	$	34,736		$	32,586

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Revolving line of credit	$	15,000		$	15,000
Trade payables		2,265			2,391
Accrued liabilities		1,706			1,509
Deferred revenue		299			272
Lease liabilities, current		1,005			850
Total current liabilities		20,275			20,022
Long-term liabilities:
Lease liabilities, non-current		596			544
Other liabilities, non-current		190			125
Total liabilities		21,061			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; 13,686 and 13,202 shares issued and outstanding as of April 2, 2023 and January 1, 2023, respectively		14			13
Additional paid-in capital		320,181			317,174
Accumulated deficit		(306,520	)		(305,292	)
Total stockholders' equity		13,675			11,895
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	34,736		$	32,586

	*Three Months Ended*
	*April 2,*			*April 3,*
	*2023*			*2022*
Revenue	$	4,133		$	4,096
Cost of revenue		1,743			1,635
Gross profit		2,390			2,461
Operating expenses:
Research and development		1,629			1,333
Selling, general and administrative		1,861			2,137
Total operating expenses		3,490			3,470
Loss from operations		(1,100	)		(1,009	)
Interest expense		(58	)		(33	)
Interest income and other expense, net		(63	)		(123	)
Loss before income taxes		(1,221	)		(1,165	)
Provision for (benefit from) income tax		7			(1	)
Net loss	$	(1,228	)	$	(1,164	)
Net loss per share:
Basic and diluted	$	(0.09	)	$	(0.10	)
Weighted average shares outstanding:
Basic and diluted		13,215			12,126

					*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		—		715		—			715
Net loss								(1,228	)		(1,228	)
Balance at April 2, 2023		13,686	$	14	$	320,181	$	(306,520	)	$	13,675

	*Three Months Ended*
	*April 2, 2023*		*April 3, 2022*
Operating lease costs:
Fixed	$	100	$	100
Short term		4		6
Total	$	104	$	106
Finance lease costs:
Amortization of ROU asset	$	160	$	109
Interest		22		7
Total	$	182	$	116

	*April 2, 2023*		*January 1, 2023*
Right-of-use assets:
Operating leases	$	374	$	464
Finance leases		1,218		933
Total right-of-use assets	$	1,592	$	1,397
Lease liabilities:
Operating leases	$	411	$	507
Finance leases		1,190		887
Total lease liabilities	$	1,601	$	1,394

	*Operating Leases*			*Finance Leases*
2023 (remaining period)	$	319		$	494
2024		106			624
2025		—			169
Total lease payments		425			1,287
Less: Interest		(14	)		(97	)
Present value of lease liabilities	$	411		$	1,190

	April 2, 2023			January 1, 2023
Right-of-use assets:
Weighted-average remaining lease term (years)
Operating leases		1.00			1.25
Finance leases		2.29			1.91
Weighted-average discount rates:
Operating leases		6.00	%		6.00	%
Finance leases		6.67	%		5.95	%

	*Shares Available for Grants*
Balance at January 1, 2023		960
Authorized		—
RSUs granted		(17	)
RSUs forfeited or expired		9
Balance at April 2, 2023		952

			*Weighted*		*Weighted*
			*Average*		*Average*		*Aggregate*
	*Number of*		*Exercise*		*Remaining*		*Intrinsic*
	*Shares*		*Price*		*Term*		*Value*
	(in thousands)				(in years)		(in thousands)
Balance outstanding at January 1, 2023		75	$	24.50		2.80	$	—
Balance outstanding, exercisable, and vested at April 2, 2023		75	$	24.50		2.55	$	—

	*April 2,*			*January 1,*
	*2023*			*2023*
Accounts receivable:
Trade account receivables	$	2,098		$	2,707
Less: Allowance for doubtful accounts		(8	)		(18	)
		2,090			2,689
Inventories:
Work-in-process	$	1,858		$	1,826
Finished goods		639			667
	$	2,497		$	2,493
Other current assets:
Prepaid taxes, royalties, and other prepaid expenses	$	1,847		$	1,305
Other		217			265
	$	2,064		$	1,570
Property and equipment, net:
Equipment	$	10,161		$	10,133
Software		1,802			1,803
Furniture and fixtures		65			65
Leasehold improvements		466			466
		12,494			12,467
Less: Accumulated depreciation and amortization		(12,052	)		(12,002	)
	$	442		$	465
Capitalized internal-use software, net:
Capitalized internal-use software	$	2,555		$	2,370
Less: Accumulated amortization		(979	)		(856	)
	$	1,576		$	1,514
Accrued liabilities:
Accrued compensation	$	981		$	865
Accrued employee benefits		114			40
Accrued payroll tax		54			57
Other		557			547
	$	1,706		$	1,509

	*RSUs & PRSUs Outstanding*
				*Weighted*
				*Average*
	*Number of*			*Grant Date*
	*Shares*			*Fair Value*
	(in thousands)
Nonvested at January 1, 2023		630		$	6.05
Granted		17			6.06
Vested and released		(34	)		5.79
Forfeited		(9	)		7.25
Nonvested at April 2, 2023		604		$	6.05

	*Three Months Ended*
	*April 2, 2023*		*April 3, 2022*
Hardware products	$	162	$	1,835
eFPGA IP and professional services		2,810		1,581
SaaS & Other		83		34
New products revenue	$	3,055	$	3,450

	*Three Months Ended*
	*April 2, 2023*		*April 3, 2022*
Asia Pacific	$	713	$	1,491
North America		3,318		2,433
Europe		102		172
Total revenue	$	4,133	$	4,096

	Three Months Ended
	April 2, 2023			April 3, 2022
Revenue		100	%		100	%
Cost of revenue		42	%		40	%
Gross profit		58	%		60	%
Operating expenses:
Research and development		39	%		33	%
Selling, general and administrative		46	%		52	%
Loss from operations		(27	)%		(25	)%

Interest expense		(1	)%		—	%
Interest income and other income (expense), net		(2	)%		(3	)%
Loss before income taxes		(30	)%		(28	)%
Provision for (benefit from) income tax		—	%		—	%
Net loss		(30	)%		(28	)%

SEC Form 10-Q filed by QuickLogic Corporation