Financial Performance - Record GAAP net income of $2.0 million and record non-GAAP net income of $2.6 million for fiscal Q4 2023[10] - US GAAP net income for Q4 2023 was $2,042 million, compared to a net loss of $1,232 million in Q4 2022, marking a significant turnaround[27] - Non-GAAP net income for Q4 2023 was $2,647 million, up from a loss of $544 million in Q4 2022[27] - The company reported a basic net income per share of $0.15 for Q4 2023, compared to a loss of $0.09 per share in Q4 2022[27] Revenue Growth - Total revenue for Q4 2023 was $7.5 million, an increase of 12.2% compared to Q3 2023, and an increase of 83.1% compared to Q4 2022[3] - Fiscal 2023 revenue growth was 31% compared to fiscal 2022[10] - New product revenue was approximately $6.8 million in Q4 2023, an increase of 12.0% compared to Q3 2023, and an increase of 140.2% compared to Q4 2022[4] - Revenue from new products constituted 91% of total revenue in Q4 2023, a substantial increase from 70% in Q4 2022, reflecting a 140% growth year-over-year[29] - Mature product revenue was $0.7 million in Q4 2023, an increase of 14.6% compared to Q3 2023, but a decrease of 47.5% compared to Q4 2022[5] - Mature products accounted for only 9% of revenue in Q4 2023, down from 30% in Q4 2022, indicating a decline of 48%[29] Profitability Metrics - Fourth quarter 2023 GAAP gross margin was 77.1%, compared to 76.9% in Q3 2023 and 51.9% in Q4 2022[5] - Fourth quarter 2023 non-GAAP gross margin was 78.3%, compared to 78.0% in Q3 2023 and 53.2% in Q4 2022[6] - Gross margin percentage under US GAAP improved to 77.1% in Q4 2023, compared to 51.9% in Q4 2022[27] - Non-GAAP operating leverage increased by 251% due to significant increase in gross profit and modest decrease in operating expenses[10] Assets and Liabilities - Total assets increased to $47,792 million as of December 31, 2023, up from $32,586 million on January 1, 2023, representing a growth of 46.5%[25] - Current assets rose to $34,630 million, a 24.0% increase from $27,940 million year-over-year[25] - Total current liabilities increased to $29,630 million, up from $20,022 million, reflecting a rise of 48.3%[25] - Stockholders' equity grew to $16,895 million as of December 31, 2023, compared to $11,895 million on January 1, 2023, an increase of 42.1%[25] Business Development - Sales funnel grew to a record $168 million, including a diverse range of new IP customers and end markets[10] - New IP contract targeting 12nm fabrication node announced[10]

Table of Contents 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 OR ☐ 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 (Sta ...

QuickLogic Corporation (NASDAQ:QUIK) Q3 2023 Earnings Conference Call November 14, 2023 5:30 PM ET Company Participants Alison Ziegler - Managing Director-Darrow Associates Brian Faith - President & Chief Executive Officer Elias Nader - Senior Vice President & Chief Financial Officer Conference Call Participants Richard Shannon - Craig-Hallum Capital Group Rick Neaton - Rivershore Investment Research Operator Ladies and gentlemen, good afternoon. At this time, I'd like to welcome everyone to QuickLogic Corp ...

Part I - Financial Information [Item 1. Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Q2 2023 unaudited financials reflect decreased revenue, increased net loss, and improved operating cash flow [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $34.4M, liabilities to $22.2M, and equity to $12.2M as of July 2, 2023 Balance Sheet Items (in thousands) | Balance Sheet Items (in thousands) | July 2, 2023 | January 1, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash, cash equivalents and restricted cash | $20,565 | $19,201 | | Accounts receivable, net | $937 | $2,689 | | Total current assets | $28,015 | $27,940 | | Total Assets | $34,376 | $32,586 | | **Liabilities & Equity** | | | | Revolving line of credit | $15,000 | $15,000 | | Total current liabilities | $21,579 | $20,022 | | Total Liabilities | $22,201 | $20,691 | | Total stockholders' equity | $12,175 | $11,895 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2023 revenue decreased 35.7% to $2.9M, with net loss widening to $2.3M Statement of Operations (in thousands, except per share) | Statement of Operations (in thousands, except per share) | Q2 2023 | Q2 2022 | Six Months 2023 | Six Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $2,921 | $4,541 | $7,054 | $8,637 | | Gross Profit | $1,203 | $2,544 | $3,593 | $5,005 | | Loss from operations | $(2,226) | $(627) | $(3,326) | $(1,636) | | Net loss | $(2,269) | $(524) | $(3,497) | $(1,688) | | Net loss per share (Basic and diluted) | $(0.17) | $(0.04) | $(0.26) | $(0.14) | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operations improved to $0.2M, with financing providing $2.1M from stock issuance Cash Flows (in thousands) | Cash Flows (in thousands) | Six Months Ended July 2, 2023 | Six Months Ended July 3, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(232) | $(2,063) | | Net cash used in investing activities | $(530) | $(402) | | Net cash provided by financing activities | $2,126 | $1,406 | | Net increase (decrease) in cash | $1,364 | $(1,059) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes cover semiconductor/eFPGA IP, a non-material cyber incident, $2.3M stock offering, and a $15M contract extension - The company's business focuses on **ultra-low power customer programmable System on Chip (SoC) semiconductor solutions**, embedded software, and **eFPGA intellectual property (IP)** for markets including IoT, Military, Aerospace, and Defense[19](index=19&type=chunk) - A ransomware infection was detected on January 20, 2023, but the company believes it has not had and will not have a **material impact** on business operations or financial results[22](index=22&type=chunk)[23](index=23&type=chunk) - On March 21, 2023, the company raised approximately **$2.3 million** in net cash proceeds from a registered direct offering of **450,000 shares of common stock**[27](index=27&type=chunk)[56](index=56&type=chunk) - For the three months ended July 2, 2023, revenue was highly concentrated, with Customer 'A' accounting for **47%**, Customer 'B' for **12%**, and Customer 'C' for **11%** of total revenue[74](index=74&type=chunk) - Subsequent to the quarter end, on August 11, 2023, the company signed an extension to an existing eFPGA IP and Design Services contract for approximately **$15 million**, with work extending into 2024[82](index=82&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2023 revenue decrease of 36% to $2.9M and a $2.3M net loss, with sufficient liquidity [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q2 2023 revenue decreased 36% to $2.9M, gross margin contracted to 41%, and operating expenses increased 8% Revenue Breakdown (in thousands) | Revenue Breakdown (in thousands) | Q2 2023 | Q2 2022 | % Change | | :--- | :--- | :--- | :--- | | New products | $2,233 | $3,131 | (29)% | | Mature products | $688 | $1,410 | (51)% | | **Total revenue** | **$2,921** | **$4,541** | **(36)%** | New Product Revenue Detail (in thousands) | New Product Revenue Detail (in thousands) | Q2 2023 | Q2 2022 | % Change | | :--- | :--- | :--- | :--- | | Hardware products | $366 | $1,464 | (75)% | | eFPGA IP and professional services | $1,857 | $1,617 | 15% | | SaaS & Other | $10 | $50 | (80)% | - Gross profit in Q2 2023 decreased **53%** to **$1.2 million (41% margin)** from **$2.5 million (56% margin)** in Q2 2022, reflecting lower revenues and higher tooling/software costs on eFPGA projects[109](index=109&type=chunk) - R&D expenses increased by **26%** year-over-year to **$1.5 million** in Q2 2023, while SG&A expenses decreased by **3%** to **$1.9 million**[111](index=111&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity includes $20.6M cash and $2.3M from stock sale, deemed sufficient for the next twelve months - The company's primary liquidity sources as of July 2, 2023, included **$20.6 million** in cash, cash equivalents, and restricted cash, which incorporates a **$15.0 million** advance from its Revolving Facility[131](index=131&type=chunk) - The company was in compliance with all loan covenants for its Revolving Facility, which had **$15.0 million** outstanding at an interest rate of **8.75%** as of July 2, 2023[134](index=134&type=chunk) - Management believes that existing cash, revenues from operations, and the Revolving Facility will be **sufficient to fund operations and capital expenditures for the next twelve months**[135](index=135&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable for the current reporting period - Not Applicable[151](index=151&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were effective as of July 2, 2023, with no material changes in internal control - Management, including the CEO and CFO, concluded that disclosure controls and procedures were **effective at a reasonable assurance level** as of July 2, 2023[152](index=152&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have **materially affected**, or are reasonably likely to materially affect, the company's internal controls[154](index=154&type=chunk) Part II - Other Information [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the period - None[157](index=157&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the 2022 Annual Report on Form 10-K - There have been **no material changes** to the risk factors set forth in the 2022 Annual Report on Form 10-K[158](index=158&type=chunk) [Item 3. Defaults Upon Senior Securities](index=37&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[159](index=159&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed, including CEO and CFO certifications per Sarbanes-Oxley Act - The report includes **certifications from the Chief Executive Officer and Chief Financial Officer** pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[160](index=160&type=chunk)

QuickLogic Corporation (NASDAQ:QUIK) Q2 2023 Earnings Conference Call August 14, 2023 5:30 PM ET Company Participants Alison Ziegler - Managing Director-Darrow Associates Brian Faith - President and Chief Executive Officer Elias Nader - Senior Vice President and Chief Financial Officer Conference Call Participants Martin Yang - Oppenheimer Rick Neaton - Rivershore Investment Research Richard Shannon - Craig-Hallum Capital Group Operator Ladies and gentlemen, good afternoon. At this time, I would like to we ...

[Part I - Financial Information](index=4&type=section&id=Part%20I%20-%20Financial%20Information) This section provides a comprehensive overview of the company's financial performance and position, including statements, notes, and management's analysis [Item 1. Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including the balance sheets, statements of operations, cash flows, and changes in stockholders' equity, along with detailed notes explaining the company's accounting policies, financial position, and operational results for the quarter ended April 2, 2023 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and equity at specific points in time | Metric (in thousands) | April 2, 2023 | January 1, 2023 | Change | % Change | | :-------------------- | :------------ | :-------------- | :----- | :------- | | Cash, cash equivalents and restricted cash | $20,902 | $19,201 | $1,701 | 8.86% | | Total current assets | $29,881 | $27,940 | $1,941 | 6.95% | | TOTAL ASSETS | $34,736 | $32,586 | $2,150 | 6.60% | | Revolving line of credit | $15,000 | $15,000 | $0 | 0.00% | | Total current liabilities | $20,275 | $20,022 | $253 | 1.26% | | Total liabilities | $21,061 | $20,691 | $370 | 1.79% | | Total stockholders' equity | $13,675 | $11,895 | $1,780 | 14.96% | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) This statement details the company's revenues, expenses, and net loss over a specific reporting period | Metric (in thousands) | Three Months Ended April 2, 2023 | Three Months Ended April 3, 2022 | Change | % Change | | :-------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Revenue | $4,133 | $4,096 | $37 | 0.90% | | Cost of revenue | $1,743 | $1,635 | $108 | 6.61% | | Gross profit | $2,390 | $2,461 | $(71) | -2.89% | | Research and development | $1,629 | $1,333 | $296 | 22.21% | | Selling, general and administrative | $1,861 | $2,137 | $(276) | -12.91% | | Total operating expenses | $3,490 | $3,470 | $20 | 0.58% | | Loss from operations | $(1,100) | $(1,009) | $(91) | 9.02% | | Net loss | $(1,228) | $(1,164) | $(64) | 5.50% | | Net loss per share (Basic and diluted) | $(0.09) | $(0.10) | $0.01 | -10.00% | | Weighted average shares outstanding (Basic and diluted) | 13,215 | 12,126 | 1,089 | 8.98% | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement reports the cash generated and used by operating, investing, and financing activities | Metric (in thousands) | Three Months Ended April 2, 2023 | Three Months Ended April 3, 2022 | Change | % Change | | :-------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Net cash used in operating activities | $(262) | $(700) | $438 | -62.57% | | Net cash used in investing activities | $(188) | $(149) | $(39) | 26.17% | | Net cash provided by financing activities | $2,151 | $1,384 | $767 | 55.42% | | Net increase in cash, cash equivalents and restricted cash | $1,701 | $535 | $1,166 | 217.94% | | Cash, cash equivalents and restricted cash at end of period | $20,902 | $20,140 | $762 | 3.78% | [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This statement outlines the changes in the company's equity accounts over the reporting period | Metric (in thousands) | January 1, 2023 | April 2, 2023 | Change | | :-------------------- | :-------------- | :------------ | :----- | | Common Stock (Shares) | 13,202 | 13,686 | 484 | | Common Stock (Amount) | $13 | $14 | $1 | | Additional Paid-In Capital | $317,174 | $320,181 | $3,007 | | Accumulated Deficit | $(305,292) | $(306,520) | $(1,228) | | Total Stockholders' Equity | $11,895 | $13,675 | $1,780 | - The increase in stockholders' equity was primarily driven by the issuance of common stock under a public offering, net of issuance costs, contributing **$2.29 million**, and common stock issued under stock plans and employee stock purchase plans, adding **$0.715 million**, partially offset by a net loss of **$1.228 million**[17](index=17&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes provide additional details and explanations for the figures presented in the financial statements [Note 1 — The Company and Basis of Presentation](index=8&type=section&id=Note%201%20%E2%80%94%20The%20Company%20and%20Basis%20of%20Presentation) This note describes the company's business, operations, and the foundational principles of financial statement preparation - QuickLogic Corporation, founded in 1988, is a fabless semiconductor provider specializing in ultra-low power SoC solutions, embedded software, and algorithm solutions for always-on voice and sensor processing. The company's offerings include eFPGA IP, display bridges, and FPGAs, with an increased focus on professional engineering services since late 2021. Its subsidiary, SensiML Corp., provides an Analytics Toolkit for developing machine learning-based sensor algorithms optimized for ultra-low power consumption[20](index=20&type=chunk) - On January 20, 2023, the Company detected a ransomware infection affecting a limited number of IT systems. The company believes the incident has not had, nor will have, a material impact on its business operations, ability to serve customers, or financial results, and has restored critical operational data and enhanced IT security[23](index=23&type=chunk)[24](index=24&type=chunk) - As of April 2, 2023, the Company's liquidity included **$20.9 million** in cash, cash equivalents, and restricted cash, a **$15.0 million** advance from its Revolving Facility, and **$2.3 million** in net proceeds from a common stock sale. The company believes these resources, along with operational revenues, will be sufficient to fund operations and capital expenditures for the next twelve months[25](index=25&type=chunk)[28](index=28&type=chunk) [Note 2 — Significant Accounting Policies](index=10&type=section&id=Note%202%20%E2%80%94%20Significant%20Accounting%20Policies) This note outlines the key accounting principles and methods used in preparing the financial statements - There were no changes to the Company's significant accounting policies during the three months ended April 2, 2023, from those disclosed in its Annual Report on Form 10-K for the year ended January 1, 2023. The Company early adopted ASU No. 2020-06 on January 2, 2023, which had no material impact on its financial statements[40](index=40&type=chunk)[41](index=41&type=chunk) [Note 3 — Net Loss Per Share](index=11&type=section&id=Note%203%20%E2%80%94%20Net%20Loss%20Per%20Share) This note details the calculation of basic and diluted net loss per share for the reporting period - For the three months ended April 2, 2023, **740 thousand shares** associated with equity awards and the Employee Stock Purchase Plan, along with warrants for **386 thousand shares**, were excluded from diluted net loss per share calculations as they were anti-dilutive due to the Company's net losses[44](index=44&type=chunk) [Note 4 — Balance Sheet Components](index=12&type=section&id=Note%204%20%E2%80%94%20Balance%20Sheet%20Components) This note provides disaggregated information on various assets and liabilities presented on the balance sheet | Balance Sheet Item (in thousands) | April 2, 2023 | January 1, 2023 | | :-------------------------------- | :------------ | :-------------- | | Accounts receivable, net | $2,090 | $2,689 | | Inventories | $2,497 | $2,493 | | Prepaid expenses and other current assets | $2,064 | $1,570 | | Property and equipment, net | $442 | $465 | | Capitalized internal-use software, net | $1,576 | $1,514 | | Accrued liabilities | $1,706 | $1,509 | [Note 5 — Debt Obligations](index=13&type=section&id=Note%205%20%E2%80%94%20Debt%20Obligations) This note describes the company's outstanding debt, including terms, interest rates, and compliance with covenants - As of April 2, 2023, the Company had **$15.0 million** outstanding on its revolving debt with Heritage Bank, carrying an interest rate of **8.5% per annum**, up from **8.00%** on January 1, 2023. The Company was in compliance with all loan covenants[46](index=46&type=chunk) | Metric (in thousands) | Three Months Ended April 2, 2023 | Three Months Ended April 3, 2022 | Change | % Change | | :-------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Interest expense | $33 | $24 | $9 | 37.50% | [Note 6 — Leases](index=13&type=section&id=Note%206%20%E2%80%94%20Leases) This note provides details on the company's operating and finance lease arrangements and associated costs | Lease Costs (in thousands) | Three Months Ended April 2, 2023 | Three Months Ended April 3, 2022 | Change | % Change | | :------------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Operating lease costs | $104 | $106 | $(2) | -1.89% | | Finance lease costs | $182 | $116 | $66 | 56.90% | | Total cash paid for lease liabilities | $267 | $205 | $62 | 30.24% | | Lease Liabilities (in thousands) | April 2, 2023 | January 1, 2023 | Change | % Change | | :------------------------------- | :------------ | :-------------- | :----- | :------- | | Total right-of-use assets | $1,592 | $1,397 | $195 | 13.96% | | Total lease liabilities | $1,601 | $1,394 | $207 | 14.85% | [Note 7 — Capital Stock](index=14&type=section&id=Note%207%20%E2%80%94%20Capital%20Stock) This note outlines changes in the company's capital stock, including issuances and related proceeds - On March 21, 2023, the Company completed a registered direct offering, selling **450 thousand shares** of common stock at **$5.14 per share**, generating approximately **$2.3 million** in net cash proceeds[53](index=53&type=chunk) [Note 8 — Stock-Based Compensation](index=15&type=section&id=Note%208%20%E2%80%94%20Stock-Based%20Compensation) This note details the expense recognized for stock options, restricted stock units, and other equity awards | Stock-Based Compensation (in thousands) | Three Months Ended April 2, 2023 | Three Months Ended April 3, 2022 | Change | % Change | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Cost of revenue | $78 | $56 | $22 | 39.29% | | Research and development | $184 | $85 | $99 | 116.47% | | Selling, general and administrative | $453 | $242 | $211 | 87.27% | | Total | $715 | $383 | $332 | 86.68% | - Total stock-based compensation expense increased by **86.68%** year-over-year, from **$383 thousand** in Q1 2022 to **$715 thousand** in Q1 2023. Unrecognized compensation expense related to RSUs was approximately **$2.2 million** as of April 2, 2023, expected to be recorded over **1.38 years**[56](index=56&type=chunk)[61](index=61&type=chunk) [Note 9 — Income Taxes](index=17&type=section&id=Note%209%20%E2%80%94%20Income%20Taxes) This note provides information on the company's income tax expense, effective tax rates, and deferred tax assets/liabilities | Income Tax (in thousands) | Three Months Ended April 2, 2023 | Three Months Ended April 3, 2022 | Change | % Change | | :------------------------ | :------------------------------- | :------------------------------- | :----- | :------- | | Net income tax expense (benefit) | $7 | $(1) | $8 | -800.00% | - The Company recorded a net income tax expense of **$7 thousand** for Q1 2023, compared to a net benefit of **$1 thousand** for Q1 2022. The effective tax rates were **(0.6%)** and **0.1%** respectively, differing from the statutory rate primarily due to a full valuation allowance against US and certain foreign net deferred tax assets[64](index=64&type=chunk) [Note 10 — Information Concerning Product Lines, Geographic Information and Revenue Concentration](index=17&type=section&id=Note%2010%20%E2%80%94%20Information%20Concerning%20Product%20Lines%2C%20Geographic%20Information%20and%20Revenue%20Concentration) This note disaggregates revenue by product family, geographic region, and significant customer concentration | Revenue by Product Family (in thousands) | Three Months Ended April 2, 2023 | Three Months Ended April 3, 2022 | Change | % Change | | :------------------------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | New products | $3,055 | $3,450 | $(395) | -11.45% | | Mature products | $1,078 | $646 | $432 | 66.87% | | Total revenue | $4,133 | $4,096 | $37 | 0.90% | | New Product Revenue Breakdown (in thousands) | Three Months Ended April 2, 2023 | Three Months Ended April 3, 2022 | Change | % Change | | :------------------------------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Hardware products | $162 | $1,835 | $(1,673) | -91.17% | | eFPGA IP and professional services | $2,810 | $1,581 | $1,229 | 77.73% | | SaaS & Other | $83 | $34 | $49 | 144.12% | | Total new product revenue | $3,055 | $3,450 | $(395) | -11.45% | | Revenue by Destination (in thousands) | Three Months Ended April 2, 2023 | Three Months Ended April 3, 2022 | Change | % Change | | :------------------------------------ | :------------------------------- | :------------------------------- | :----- | :------- | | Asia Pacific | $713 | $1,491 | $(778) | -52.18% | | North America | $3,318 | $2,433 | $885 | 36.37% | | Europe | $102 | $172 | $(70) | -40.70% | | Total revenue | $4,133 | $4,096 | $37 | 0.90% | | Major Customers/Distributors (Revenue Concentration) | April 2, 2023 | April 3, 2022 | | :------------------------------------------------- | :------------ | :------------ | | Customer "A" | 54% | * | | Distributor "A" | 16% | 11% | | Customer "O" | * | 27% | | Customer "P" | * | 23% | | Distributor "E" | * | 30% | [Note 11 — Commitments and Contingencies](index=20&type=section&id=Note%2011%20%E2%80%94%20Commitments%20and%20Contingencies) This note discloses the company's contractual obligations, legal matters, and other potential future liabilities - As of April 2, 2023, the Company had **$1.3 million** in outstanding purchase obligations for other goods and services due within the next twelve months. Contingent commitments were approximately **$3.8 million** due within the next twelve months and **$8.7 million** due within two to three years[77](index=77&type=chunk)[78](index=78&type=chunk) [Note 12 — Subsequent Events](index=20&type=section&id=Note%2012%20%E2%80%94%20Subsequent%20Events) This note reports significant events that occurred after the balance sheet date but before the financial statements were issued - On April 28, 2023, the Company converted approximately **$1.16 million** in accounts receivable from a customer into a notes receivable, bearing a **3.0% monthly compounded interest rate** and maturing on April 28, 2024[80](index=80&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations for the three months ended April 2, 2023, discussing revenue trends, gross profit, operating expenses, liquidity, and capital resources, and highlighting key factors influencing performance [Overview](index=21&type=section&id=Overview) This section provides a general introduction to the company's business model, strategic focus, and recent financial highlights - QuickLogic develops low-power, multi-core semiconductor platforms and IP for AI, voice, and sensor processing, including eFPGA for hardware acceleration and the SensiML Analytics Toolkit for AI software development. The company's growth is expected to be driven by silicon solutions, eFPGA IP, and SensiML AI Software, with anticipated revenue growth from EOS S3, SensiML AI SaaS, and eFPGA IP licensing in fiscal year 2023[85](index=85&type=chunk)[94](index=94&type=chunk) - Total revenue for Q1 2023 was **$4.1 million**, a **1% increase** year-over-year. New product revenue decreased by **11%** to **$3.1 million**, primarily due to a **$1.7 million** reduction in hardware product revenue, offset by a **$1.2 million** increase in eFPGA IP revenue. Mature product revenue increased by **67%** to **$1.1 million**[96](index=96&type=chunk) - The company reported a net loss of **$1.2 million** for Q1 2023, an increase of **5%** compared to Q1 2022, and expects losses to continue through at least fiscal year 2023 due to ongoing investments in new products and technologies[97](index=97&type=chunk)[98](index=98&type=chunk) [Critical Accounting Policies and Estimates](index=24&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section discusses the accounting policies and estimates that require significant judgment and can materially impact financial results - The Company's critical accounting policies include revenue recognition, determination of Stand-Alone Selling Price (SSP) for IP licensing and professional services, and valuation of inventories. No changes to these policies occurred during the three months ended April 2, 2023[101](index=101&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) This section analyzes the company's revenues, costs, and expenses, explaining the factors driving changes in financial performance | Metric | Three Months Ended April 2, 2023 (% of Revenue) | Three Months Ended April 3, 2022 (% of Revenue) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Revenue | 100% | 100% | | Cost of revenue | 42% | 40% | | Gross profit | 58% | 60% | | Research and development | 39% | 33% | | Selling, general and administrative | 46% | 52% | | Loss from operations | (27)% | (25)% | | Net loss | (30)% | (28)% | - Gross profit decreased by **$71 thousand (3%)** year-over-year, reflecting a **7% increase** in cost of revenue primarily due to higher eFPGA IP tooling costs and increased outside costs and material price variances[107](index=107&type=chunk) - Research and Development (R&D) expenses increased by **$0.3 million (22%)** year-over-year, mainly due to decreased R&D costs allocated to Cost of Goods Sold for eFPGA professional services, and increases in stock-based compensation and software costs. Selling, General and Administrative (SG&A) expenses decreased by **$0.3 million (13%)** year-over-year, driven by reductions in consulting, salary, and accounting/audit expenses, partially offset by higher stock-based compensation, insurance, and sales commissions[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) | Interest & Other Income/Expense (in thousands) | Three Months Ended April 2, 2023 | Three Months Ended April 3, 2022 | Change | % Change | | :--------------------------------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Interest expense | $(58) | $(33) | $25 | 75.76% | | Interest income and other income (expense), net | $(63) | $(123) | $60 | -48.78% | | Total interest expense, interest income and other income (expense), net | $(121) | $(156) | $35 | -22.44% | [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet its short-term and long-term financial obligations and fund its operations - The Company's liquidity sources as of April 2, 2023, included **$20.9 million** in cash, cash equivalents, and restricted cash, a **$15.0 million** draw from its revolving line of credit, and **$2.3 million** in net proceeds from a common stock sale. Management believes these resources are sufficient to fund operations and capital expenditures for the next twelve months[115](index=115&type=chunk)[118](index=118&type=chunk) | Cash Flows (in thousands) | Three Months Ended April 2, 2023 | Three Months Ended April 3, 2022 | Change | % Change | | :------------------------ | :------------------------------- | :------------------------------- | :----- | :------- | | Net cash used in operating activities | $(262) | $(700) | $438 | -62.57% | | Net cash used in investing activities | $(188) | $(149) | $(39) | 26.17% | | Net cash provided by financing activities | $2,151 | $1,384 | $767 | 55.42% | - Net cash used in operating activities decreased significantly to **$0.3 million** in Q1 2023 from **$0.7 million** in Q1 2022, primarily due to a decrease in accounts receivable and increases in accrued liabilities. Net cash provided by financing activities increased to **$2.2 million**, mainly from stock issuances[126](index=126&type=chunk)[129](index=129&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there are no material quantitative and qualitative disclosures about market risk applicable to the Company for the reported period - Not Applicable[134](index=134&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the Company's disclosure controls and procedures were effective at a reasonable assurance level as of April 2, 2023, and reported no material changes in internal control over financial reporting during the period - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective at the reasonable assurance level as of April 2, 2023[135](index=135&type=chunk) - There were no changes in the Company's internal control over financial reporting that materially affected, or are reasonably likely to materially affect, internal control over financial reporting during the period[137](index=137&type=chunk) [Part II - Other Information](index=32&type=section&id=Part%20II%20-%20Other%20Information) This section covers non-financial information, including legal proceedings, risk factors, defaults, exhibits, and signatures [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) This section indicates that there are no material legal proceedings to report for the period - None[140](index=140&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the Company's 2022 Annual Report on Form 10-K - There have been no material changes to the risk factors set forth in the Company's 2022 Annual Report on Form 10-K for the year ended January 1, 2023[141](index=141&type=chunk) [Item 3. Defaults Upon Senior Securities](index=32&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section reports that there were no defaults upon senior securities during the period - None[142](index=142&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed or incorporated by reference into the report, including certifications from the CEO and CFO, and Inline XBRL documents | Exhibit Number | Description | | :------------- | :---------- | | 31.1 | Certification of Brian C. Faith, CEO, pursuant to Section 302 of Sarbanes-Oxley Act of 2002 | | 31.2 | Certification of Elias Nadar, CFO, pursuant to Section 302 of Sarbanes-Oxley Act of 2002 | | 32.1 | Certification of Brian C. Faith, CEO, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002 | | 32.2 | Certification of Elias Nadar, CFO, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002 | | 101.INS | Inline XBRL Instance Document | | 104 | The cover page from the Company's quarterly report on Form 10-Q for the quarter ended April 2, 2023, has been formatted in Inline XBRL and contained in exhibit 101 | [Signatures](index=33&type=section&id=Signatures) This section contains the required signatures for the Form 10-Q filing - The report was signed on behalf of QuickLogic Corporation by Elias Nader, Chief Financial Officer and Senior Vice-President, Finance, on May 17, 2023[146](index=146&type=chunk)

QuickLogic Corporation (NASDAQ:QUIK) Q1 2023 Earnings Conference Call May 16, 2023 5:30 PM ET Company Participants Alison Ziegler – Managing Director-Darrow Associates Brian Faith – President and Chief Executive Officer Elias Nader – Senior Vice President and Chief Financial Officer Conference Call Participants Richard Shannon – Craig-Hallum Martin Yang – Oppenheimer Rick Neaton – Rivershore Investment Research Jon Gruber – Gruber & McBaine Operator Ladies and gentlemen, good afternoon. At this time, I’d li ...

QuickLogic Corporation (NASDAQ:QUIK) Q4 2022 Earnings Conference Call February 27, 2023 5:30 PM ET Company Participants Alison Ziegler – Managing Director-Darrow Associates Brian Faith – President and Chief Executive Officer Elias Nader – Senior Vice President and Chief Financial Officer Conference Call Participants Suji Desilva – ROTH MKM Martin Yang – Oppenheimer Richard Shannon – Craig-Hallum Rick Neaton – Rivershore Investment Research Operator Ladies and gentlemen, good afternoon. At this time, I’d lik ...

Investor Presentation Corporate Summary November 2022 Safe Harbor Statement This presentation contains forward-looking statements regarding our future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally written in the future tense and/or are preceded by words such as "will", "may", "should", "forecast", "could", "expect", "suggest", "believe", "anticipate", "intend", "plan", "future", "potent ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Table of Contents (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 (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 includ ...