QuickLogic(QUIK) - 2025 Q3 - Quarterly Report

Filing Information Provides general details about the regulatory filing, including company and report specifics General Filing Details This document is a Quarterly Report on Form 10-Q for QuickLogic Corporation, covering the period ended September 29, 2024. The company is a non-accelerated filer and a smaller reporting company, with 14,707,072 shares of common stock outstanding as of November 8, 2024 * QuickLogic Corporation filed a Quarterly Report on Form 10-Q for the period ended September 29, 2024[2] * The registrant is classified as a non-accelerated filer and a smaller reporting company[3] Common Stock Outstanding | Metric | Value | | :----- | :---- | | Shares Outstanding (as of Nov 8, 2024) | 14,707,072 | | Par Value per Share | $0.001 | Part I - Financial Information Presents the company's comprehensive financial statements and related disclosures Item 1. Unaudited Condensed Consolidated Financial Statements This section presents the unaudited condensed consolidated financial statements, including the Balance Sheets, Statements of Operations, Statements of Cash Flows, and Statements of Changes in Stockholders' Equity, along with comprehensive notes providing context and details on the company's financial position and performance for the reported interim periods Unaudited Condensed Consolidated Balance Sheets Presents the company's financial position with assets, liabilities, and equity at specific dates Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | September 29, 2024 | December 31, 2023 | Change (2024 vs 2023) | | :----------------------------------- | :------------------- | :------------------ | :-------------------- | | ASSETS | | | | | Cash, cash equivalents and restricted cash | $22,364 | $24,606 | ($2,242) | | Total current assets | $30,051 | $34,630 | ($4,579) | | Property and equipment, net | $14,137 | $8,948 | $5,189 | | TOTAL ASSETS | $49,713 | $47,792 | $1,921 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | Revolving line of credit | $20,000 | $20,000 | $0 | | Total current liabilities | $26,856 | $29,630 | ($2,774) | | Total liabilities | $28,824 | $30,897 | ($2,073) | | Total stockholders' equity | $20,889 | $16,895 | $3,994 | * Total assets increased by $1.9 million, primarily driven by an increase in property and equipment, net, partially offset by a decrease in cash and current assets[6][149] * Total liabilities decreased by $2.1 million, mainly due to payments of trade payables, accrued liabilities, and debt/lease obligations, despite an increase in notes payable[6][150] * Stockholders' equity increased by $4.0 million, attributed to a $7.5 million increase in additional paid-in capital from stock sales and stock-based compensation, partially offset by a $3.5 million net loss[6][150] Unaudited Condensed Consolidated Statements of Operations Details the company's revenues, expenses, and net income or loss over specific periods Condensed Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended Sep 29, 2024 | Three Months Ended Oct 1, 2023 | Change (YoY) | Nine Months Ended Sep 29, 2024 | Nine Months Ended Oct 1, 2023 | Change (YoY) | | :---------------------------------- | :------------------------------ | :----------------------------- | :----------- | :----------------------------- | :---------------------------- | :----------- | | Revenue | $4,273 | $6,665 | (36)% | $14,407 | $13,719 | 5% | | Gross profit | $2,385 | $5,128 | (53)% | $8,473 | $8,721 | (3)% | | Operating income (loss) | ($1,861) | $1,280 | (245)% | ($3,205) | ($2,046) | (57)% | | Net income (loss) | ($2,094) | $1,192 | (276)% | ($3,536) | ($2,305) | (53)% | | Basic Net income (loss) per share | ($0.14) | $0.09 | (256)% | ($0.25) | ($0.17) | (47)% | | Diluted Net income (loss) per share | ($0.14) | $0.08 | (275)% | ($0.25) | ($0.17) | (47)% | * Revenue for the three months ended September 29, 2024, decreased by 36% year-over-year, primarily due to decreases in professional services eFPGA revenues and new device sales[8][123][124] * For the nine months ended September 29, 2024, revenue increased by 5% year-over-year, driven by increases in SaaS IP revenues and revenue from devices and royalties[8][134][135] * The company reported a net loss of $2.1 million for the three months ended September 29, 2024, compared to a net income of $1.2 million in the prior year's comparable quarter[8][118] Unaudited Condensed Consolidated Statements of Cash Flows Summarizes cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Nine Months Ended Sep 29, 2024 | Nine Months Ended Oct 1, 2023 | Change (YoY) | | :---------------------------------------- | :----------------------------- | :---------------------------- | :----------- | | Net cash provided by (used in) operating activities | ($89) | ($191) | $102 | | Net cash provided by (used in) investing activities | ($4,961) | ($2,445) | ($2,516) | | Net cash provided by (used in) financing activities | $2,808 | $2,060 | $748 | | Net increase (decrease) in cash, cash equivalents and restricted cash | ($2,242) | ($576) | ($1,666) | | Cash, cash equivalents and restricted cash at end of period | $22,364 | $18,625 | $3,739 | * Net cash used in operating activities decreased to $0.1 million for the nine months ended September 29, 2024, from $0.2 million in the prior year, primarily due to adjustments for non-cash charges despite a net loss[10][164][165] * Cash used in investing activities significantly increased to $5.0 million, mainly due to higher capital expenditures for licensed software, internal-use software, and specialized semiconductor tooling[10][166] * Cash provided by financing activities increased to $2.8 million, driven by net proceeds from common stock issuances, partially offset by payments related to financing arrangements[10][168][169] Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity Outlines changes in equity components, including common stock, paid-in capital, and accumulated deficit Changes in Stockholders' Equity (in thousands) | Metric | Balance at Dec 31, 2023 | Balance at Sep 29, 2024 | Change | | :------------------------------------ | :---------------------- | :---------------------- | :----- | | Common Stock (shares) | 14,118 | 14,697 | 579 | | Common Stock (amount) | $14 | $15 | $1 | | Additional Paid-In Capital | $322,436 | $329,965 | $7,529 | | Accumulated Deficit | ($305,555) | ($309,091) | ($3,536) | | Total Stockholders' Equity | $16,895 | $20,889 | $3,994 | * The increase in additional paid-in capital was primarily due to the issuance of common stock from private placement ($3.5 million) and stock-based compensation ($3.8 million for the nine months ended Sep 29, 2024)[12][73] * The accumulated deficit increased by $3.5 million, reflecting the net loss incurred during the nine months ended September 29, 2024[12][8] Notes to Unaudited Condensed Consolidated Financial Statements Provides detailed explanations and disclosures for the financial statements Note 1 — The Company and Basis of Presentation Describes the company's business, operations, and the basis for financial statement preparation * QuickLogic Corporation is a fabless semiconductor company providing eFPGA IP, low-power SoCs, discrete FPGAs, and AI software (via SensiML) for Aerospace and Defense, Consumer/Industrial IoT, and Consumer Electronics markets[15] * The company's liquidity sources include cash, cash equivalents ($22.4 million as of Sep 29, 2024), a $20.0 million revolving line of credit, and $3.5 million in net proceeds from a common stock sale in March 2024[18][151] * The company believes its current liquidity and expected revenues will be sufficient to fund operations and capital expenditures for the next twelve months[24][156] * A note receivable balance of $1.26 million (including $97 thousand in accrued interest) was outstanding as of September 29, 2024, with an interest rate of 10.0% per annum, revised from previous rates[22][23][152] Note 2 — Significant Accounting Policies Outlines the key accounting principles and methods used in financial reporting * There were no changes to the Company's significant accounting policies during the three and nine months ended September 29, 2024, from its disclosures in the Annual Report on Form 10-K for 2023[38] * The Company corrected immaterial errors in prior period financial statements, reclassifying certain licensed tooling software from leased assets to intangible assets and adjusting cash flow classifications[41][43] * The Company adopted ASU No. 2022-03 on January 1, 2024, with no material impact, and does not expect material impacts from ASU No. 2023-09 and ASU No. 2023-07, which are not yet adopted[44][45][46] Note 3 — Net Income (Loss) Per Share Explains the calculation of basic and diluted net income or loss per share * For periods with a net loss (e.g., three and nine months ended Sep 29, 2024), diluted net loss per share is the same as basic net loss per share because potentially dilutive common shares are considered anti-dilutive[48][49] * Approximately 892 thousand and 925 thousand shares associated with equity awards were excluded from diluted EPS calculations for the three and nine months ended September 29, 2024, respectively, due to their anti-dilutive effect[49] Note 4 — Balance Sheet Components Details the composition of various asset and liability accounts on the balance sheet Inventories, Net (in thousands) | Category | September 29, 2024 | December 31, 2023 | | :--------------- | :------------------- | :------------------ | | Work-in-process | $1,438 | $1,602 | | Finished goods | $342 | $427 | | Total | $1,780 | $2,029 | Prepaid Expenses and Other Current Assets (in thousands) | Category | September 29, 2024 | December 31, 2023 | | :--------------------------------------- | :------------------- | :------------------ | | Prepaid taxes | $522 | $498 | | Deferred charges | $999 | $290 | | Deferred cost of sales | $586 | $2 | | Other prepaid taxes, royalties, and other prepaid expenses | $632 | $627 | | Other | $180 | $144 | | Total | $2,919 | $1,561 | * The Company capitalized $5.35 million in pre-production design and development costs as tooling for long-term professional services contracts during the nine months ended September 29, 2024, an increase from $3.6 million in the prior year[54] * Depreciation and amortization expense for the nine months ended September 29, 2024, was $2.6 million, up from $1.2 million in the prior year, including $0.5 million related to capitalized internal-use software[55] Note 5 — Property, Plant, and Equipment Describes the company's fixed assets and their depreciation policies * Property, plant, and equipment are depreciated using the straight-line method over estimated useful lives ranging from 1-10 years for equipment, 1-2 years for software tools, 7 years for tooling, 1-7 years for software, 5-7 years for furniture and fixtures, and 3-5 years for leasehold improvements[56] Note 6 — Intangible Assets Provides information on acquired intangible assets and their amortization schedules Intangible Assets from SensiML Acquisition (in thousands) | Category | Remaining Useful Life (years) | Gross Carrying Amount (Sep 29, 2024) | Accumulated Amortization (Sep 29, 2024) | Net Carrying Amount (Sep 29, 2024) | | :------------------------------------ | :---------------------------- | :----------------------------------- | :-------------------------------------- | :--------------------------------- | | Developed technology | 4.25 | $959 | ($551) | $408 | | Customer relationships | — | $81 | ($81) | $0 | | Trade names and trademarks | 4.25 | $116 | ($67) | $49 | | Total acquired identifiable intangible assets | | $1,156 | ($699) | $457 | Future Annual Amortization of Intangible Assets (in thousands) | Annual Fiscal Years | Amount | | :------------------ | :----- | | 2024 (remaining) | $27 | | 2025 | $107 | | 2026 | $107 | | 2027 | $107 | | 2028 | $109 | | Total | $457 | Note 7 — Debt Obligations Details the company's outstanding debt, interest rates, and repayment schedules * As of September 29, 2024, the Company had $20.0 million outstanding on its revolving line of credit with Heritage Bank, at an interest rate of 8.50% per annum, and was in compliance with all loan covenants[59] * Assets purchased through financing arrangements totaled $3.2 million as of September 29, 2024, primarily tooling for revenue contracts, with corresponding notes payable of $3.1 million[61] * The weighted average interest rate for financing arrangements increased from 6.93% as of October 1, 2023, to 8.89% as of September 29, 2024[61] Future Payments for Financing Arrangements (in thousands) | Year | Amount | | :------------------ | :----- | | 2024 (remaining) | $528 | | 2025 | $1,852 | | 2026 | $680 | | 2027 | $340 | | Total payments | $3,400 | | Less: Interest | ($288) | | Present value | $3,112 | Note 8 — Leases Outlines the company's lease arrangements, right-of-use assets, and lease liabilities * The Company's principal facilities are operating leases, with total rent expenses of $0.1 million for the three months and $0.3 million for the nine months ended September 29, 2024[63][64] Operating Lease Details (in thousands) | Metric | September 29, 2024 | December 31, 2023 | | :------------------- | :------------------- | :------------------ | | Right-of-use assets | $828 | $981 | | Lease liabilities | $804 | $983 | | Weighted-average remaining lease term | 2.67 years | 3.25 years | | Weighted-average discount rates | 6.00% | 6.00% | Future Lease Payments for Operating Leases (in thousands) | Year | Amount | | :------------------ | :----- | | 2024 (remaining) | $91 | | 2025 | $339 | | 2026 | $349 | | 2027 | $128 | | Total lease payments | $907 | | Less: Interest | ($103) | | Present value | $804 | Note 9 — Capital Stock Describes the company's common stock issuances and related capital activities * On March 13, 2024, the Company sold 222,500 shares of common stock in a registered direct offering, generating approximately $3.5 million in net cash proceeds at a purchase price of $16.00 per share[70] * On March 21, 2023, the Company sold 450 thousand shares of common stock in a registered direct offering, resulting in approximately $2.3 million in net cash proceeds at $5.14 per share[71] Note 10 — Stock-Based Compensation Details the company's stock-based compensation plans and related expenses Stock-Based Compensation Expense (in thousands) | Category | Three Months Ended Sep 29, 2024 | Three Months Ended Oct 1, 2023 | Nine Months Ended Sep 29, 2024 | Nine Months Ended Oct 1, 2023 | | :---------------------------------- | :------------------------------ | :----------------------------- | :----------------------------- | :---------------------------- | | Cost of revenue | $180 | $73 | $505 | $239 | | Research and development | $323 | $171 | $877 | $513 | | Selling, general and administrative | $645 | $372 | $2,131 | $1,165 | | Total | $1,148 | $616 | $3,513 | $1,917 | * Total stock-based compensation expense increased significantly, from $616 thousand to $1,148 thousand for the three-month period and from $1,917 thousand to $3,513 thousand for the nine-month period year-over-year[73] * As of September 29, 2024, there was approximately $3.8 million in unrecognized stock-based compensation expense related to RSUs, expected to be recorded over a weighted average period of 1.19 years[78] Restricted Stock Units (RSUs) and Performance Restricted Stock Units (PRSUs) Activity (in thousands) | Activity | Number of Shares | | :-------------------------- | :--------------- | | Nonvested at December 31, 2023 | 589 | | Granted | 596 | | Vested and released | (332) | | Forfeited | (51) | | Nonvested at September 29, 2024 | 802 | Note 11 — Income Taxes Explains the company's income tax provisions, deferred taxes, and valuation allowances * The Company recorded a net income tax expense of $13 thousand for the three months and $14 thousand for the nine months ended September 29, 2024[80] * The difference between the estimated annual effective tax expense of 0% and the U.S. federal statutory tax rate of 21% is primarily due to the Company's valuation allowance movement[80][146] * The Company maintains a full valuation allowance against all of its US and certain foreign net deferred tax assets, as it is more likely than not that these assets will not be realized[80][146] Note 12 — Information Concerning Product Lines, Geographic Information and Revenue Concentration Provides segment information, revenue breakdown by product, geography, and customer concentration * The Company operates in a single reportable business segment[81] Revenue by Product Family (in thousands) | Product Family | Three Months Ended Sep 29, 2024 | Three Months Ended Oct 1, 2023 | Nine Months Ended Sep 29, 2024 | Nine Months Ended Oct 1, 2023 | | :--------------- | :------------------------------ | :----------------------------- | :----------------------------- | :---------------------------- | | New products | $3,537 | $6,096 | $11,470 | $11,384 | | Mature products | $736 | $569 | $2,937 | $2,335 | | Total revenue | $4,273 | $6,665 | $14,407 | $13,719 | New Product Revenue Breakdown (in thousands) | Category | Three Months Ended Sep 29, 2024 | Three Months Ended Oct 1, 2023 | Nine Months Ended Sep 29, 2024 | Nine Months Ended Oct 1, 2023 | | :-------------------------- | :------------------------------ | :----------------------------- | :----------------------------- | :---------------------------- | | Hardware products | $28 | $248 | $1,028 | $776 | | eFPGA IP and professional services | $3,445 | $5,838 | $10,009 | $10,505 | | SaaS & Other | $64 | $10 | $433 | $103 | | Total new product revenue | $3,537 | $6,096 | $11,470 | $11,384 | * New product revenue decreased by 42% for the three months ended September 29, 2024, primarily due to a decline in eFPGA IP and professional services revenue, but increased by 1% for the nine-month period, driven by SaaS & Other revenue growth[86][125][136] Revenue by Destination (in thousands) | Region | Three Months Ended Sep 29, 2024 | Three Months Ended Oct 1, 2023 | Nine Months Ended Sep 29, 2024 | Nine Months Ended Oct 1, 2023 | | :-------------- | :------------------------------ | :----------------------------- | :----------------------------- | :---------------------------- | | Asia Pacific | $518 | $371 | $1,656 | $1,540 | | North America | $3,663 | $6,051 | $12,317 | $11,739 | | Europe | $92 | $243 | $434 | $440 | | Total revenue | $4,273 | $6,665 | $14,407 | $13,719 | * North America accounted for 85% of total revenue for the three months and 83% for the nine months ended September 29, 2024[88] Revenue Concentration by Customer (Percentage of Total Revenue) | Customer | Three Months Ended Sep 29, 2024 | Three Months Ended Oct 1, 2023 | Nine Months Ended Sep 29, 2024 | Nine Months Ended Oct 1, 2023 | | :--------------- | :------------------------------ | :----------------------------- | :----------------------------- | :---------------------------- | | Distributor "A" | 11% | * | 10% | 11% | | Customer "A" | 53% | 84% | 57% | 67% | | Customer "B" | 10% | * | * | * | | Customer "J" | 18% | * | * | * | Accounts Receivable Concentration by Customer (Percentage of Total Accounts Receivable) | Customer | September 29, 2024 | December 31, 2023 | | :--------------- | :------------------- | :------------------ | | Customer "A" | 69% | 86% | | Customer "J" | 16% | * | Note 13 — Commitments and Contingencies Details the company's contractual obligations, purchase commitments, and potential legal liabilities * The Company's contractual commitments include purchase obligations, revolving line of credit repayments, and payments under operating and financing arrangements[92] * As of September 29, 2024, the Company had $89 thousand in outstanding commitments for wafer inventory purchases and $2.4 million in outstanding purchase obligations for other goods and services due within the next twelve months, not recorded on the balance sheet[93][94] * The Company may be involved in legal actions, including intellectual property infringement and collection matters, which could result in costly litigation or adverse financial impacts[96] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Provides management's perspective on the company's financial condition and results of operations, including an overview of the business, detailed analysis of revenue, gross profit, operating expenses, and liquidity, along with forward-looking statements and critical accounting policies Forward-Looking Statements Highlights statements about future expectations, subject to risks and uncertainties that may cause actual results to differ * The report contains forward-looking statements regarding revenue levels, design opportunity conversion, liquidity, gross profit, operating expenses, R&D efforts, partnerships, industry trends, manufacturing strategies, and competitive position[98] * These statements are subject to risks, uncertainties, and assumptions, and actual results may differ materially from expectations[99] Overview Provides a general description of the company's business, products, and strategic focus for growth * QuickLogic is a fabless semiconductor company offering eFPGA IP, SoCs, discrete FPGAs, and AI software (SensiML Analytics Toolkit) for hardware acceleration and AI/ML solutions across various markets[100] * New products, including eFPGA IP licensing, professional services, silicon products (EOS™, QuickAI™, ArcticLink® III, etc.), and SensiML AI/ML Software Platform (SaaS subscriptions, per unit license fees), are expected to drive business growth[101][106] * The company's manufacturing strategies focus on reducing silicon solution costs, utilizing smaller die sizes, lower power consumption, and small form factor packages, with in-system reprogrammability for customers[104] * For the third quarter of 2024, total revenue was $4.3 million (down 36% YoY), new product revenue was $3.5 million (down 42% YoY), and mature product revenue was $0.7 million (up 29% YoY). The company reported a net loss of $2.1 million[117][118] Critical Accounting Policies and Estimates Identifies key accounting policies and estimates that require significant judgment and can materially impact financial results * Critical accounting policies include revenue recognition, inventory valuation (excess quantities, market value, obsolescence), and valuation of goodwill and long-lived and intangible assets[121] * There were no changes in critical accounting policies during the three and nine months ended September 29, 2024[121] Results of Operations Analyzes the company's financial performance, including revenue, gross profit, and operating expenses over specific periods Key Financial Ratios (Percentage of Revenue) | Metric | Three Months Ended Sep 29, 2024 | Three Months Ended Oct 1, 2023 | Nine Months Ended Sep 29, 2024 | Nine Months Ended Oct 1, 2023 | | :------------------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | :---------------------------- | | Revenue | 100% | 100% | 100% | 100% | | Cost of revenue | 44% | 23% | 41% | 36% | | Gross profit | 56% | 77% | 59% | 64% | | Research and development | 46% | 29% | 34% | 37% | | Selling, general and administrative | 54% | 29% | 47% | 42% | | Income (loss) from operations | (44)% | 19% | (22)% | (15)% | | Net income (loss) | (49)% | 18% | (25)% | (17)% | * Gross profit decreased by 53% for the three months ended September 29, 2024, due to a 36% revenue decrease and a 23% increase in cost of revenue, primarily from increased professional services activity, labor, and depreciation[127] * For the nine months ended September 29, 2024, gross profit decreased by 3%, reflecting a 19% increase in cost of revenue (due to contract manufacturing and outside services) partially offset by a 5% revenue increase[138] * Selling, General and Administrative (SG&A) expenses increased by $0.4 million (20%) for the three-month period and $1.0 million (18%) for the nine-month period, primarily due to increases in compensation and equity expenses[130][143] * Interest expense increased by 288% for the three-month period and 89% for the nine-month period, mainly due to higher interest rates on the revolving line of credit and notes payable[131][144] Balance Sheet Activities Examines changes in the company's assets, liabilities, and equity, highlighting key drivers of these movements * Total assets increased by $1.9 million, driven by $7.8 million in capitalized property, plant, equipment, and internal-use software, and a $1.4 million increase in other current assets, partially offset by depreciation, reduced cash, accounts receivable, contract assets, and inventory[149] * Liabilities decreased by $2.1 million due to payments of trade payables, accrued liabilities, and debt/lease obligations, and deferred revenue recognition, partially offset by a $2.6 million increase in notes payable for software asset purchases[150] * Equity increased by $4.0 million, primarily from a $7.5 million increase in additional paid-in capital (stock sales, stock-based compensation) offset by a $3.5 million net loss[150] Liquidity and Capital Resources Assesses the company's ability to meet short-term and long-term financial obligations and fund operations * The Company's liquidity sources include $22.4 million in cash, cash equivalents, and restricted cash, a $20.0 million revolving line of credit, and $3.5 million in net proceeds from a March 2024 common stock sale[151] * Management believes existing cash, financing proceeds, revenues, and the revolving facility will be sufficient to fund operations and capital expenditures for the next twelve months[156] * Longer-term liquidity relies on new product sales, existing cash, renewal of the revolving facility (or new debt), and ability to raise additional capital, with no assurance of securing additional capital on acceptable terms[159] * As of September 29, 2024, interest-bearing debt included $3.1 million in notes payable and $20.0 million outstanding under the Revolving Facility[160] Cash Flow Summary Summarizes the sources and uses of cash from operating, investing, and financing activities Cash Flow Summary (in thousands) | Cash Flow Activity | Nine Months Ended Sep 29, 2024 | Nine Months Ended Oct 1, 2023 | | :---------------------------------------- | :----------------------------- | :---------------------------- | | Net cash provided by (used in) operating activities | ($89) | ($191) | | Net cash provided by (used in) investing activities | ($4,961) | ($2,445) | | Net cash provided by (used in) financing activities | $2,808 | $2,060 | * Net cash used in operating activities decreased to $0.1 million, primarily due to non-cash adjustments offsetting the net loss, with cash outflow from changes in operating assets and liabilities of $3.1 million[164] * Investing activities used $5.0 million, mainly for capital expenditures on licensed software, internal-use software, and specialized semiconductor tooling[166] * Financing activities provided $2.8 million, primarily from $3.7 million in net proceeds from common stock issuance, partially offset by $0.9 million in payments for financing arrangements[168] Off-Balance Sheet Arrangements Discloses any financial arrangements not recorded on the balance sheet that could impact the company's financial position * The Company does not maintain any off-balance sheet partnerships, arrangements, or other relationships with unconsolidated entities[170] Item 3. Quantitative and Qualitative Disclosures About Market Risk States that there are no quantitative and qualitative disclosures about market risk applicable to the company for the reported period * The company has no applicable quantitative and qualitative disclosures about market risk for this reporting period[170] Item 4. Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of September 29, 2024, 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 September 29, 2024[171] * Management acknowledges that control systems provide only reasonable, not absolute, assurance and are subject to inherent limitations[172] * There were no changes in internal control over financial reporting that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting during the period[173] Part II - Other Information Contains additional disclosures not covered in the financial statements, such as legal and risk factors Item 1. Legal Proceedings This section indicates that there have been no material changes to the legal proceedings previously disclosed in the company's 2023 Annual Report on Form 10-K * There have been no material changes to the legal proceedings set forth in the company's 2023 Annual Report on Form 10-K[174] Item 1A. Risk Factors This section states that there have been no material changes to the risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K * There have been no material changes to the risk factors set forth in the company's 2023 Annual Report on Form 10-K[174] Item 3. Defaults Upon Senior Securities This section reports that there were no defaults upon senior securities during the period * There were no defaults upon senior securities during the period[177] Item 5. Other Information This section confirms that none of the company's directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended September 29, 2024 * None of the company's directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the three months ended September 29, 2024[174] Item 6. Exhibits This section lists the exhibits filed or incorporated by reference into the report, including certifications and Inline XBRL documents * Exhibits include certifications from the CEO and CFO (pursuant to Sections 302 and 906 of Sarbanes-Oxley Act) and Inline XBRL documents[176][178] Signatures Authenticates the report with official signatures from company executives Report Signatures The report was duly signed on behalf of QuickLogic Corporation by Elias Nader, Chief Financial Officer and Senior Vice President, Finance, on November 13, 2024 * The report was signed by Elias Nader, Chief Financial Officer, and Senior Vice President, Finance, on November 13, 2024[179]