QuickLogic(QUIK) - 2026 Q1 - Quarterly Report

Part I Unaudited Condensed Consolidated Financial Statements Unaudited Q1 2025 financials reveal decreased assets, a $2.2 million net loss, negative operating cash flow, and SensiML as discontinued operations Unaudited Condensed Consolidated Balance Sheets Total assets decreased to $49.1 million by March 30, 2025, primarily due to reduced cash, while liabilities also fell and equity rose Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | March 30, 2025 | December 29, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash, cash equivalents and restricted cash | $17,546 | $21,859 | | Accounts receivable, net | $1,586 | $2,426 | | Total current assets | $25,337 | $29,604 | | TOTAL ASSETS | $49,077 | $51,933 | | Liabilities & Equity | | | | Revolving line of credit | $15,000 | $18,000 | | Total current liabilities | $21,482 | $25,397 | | Total liabilities | $22,760 | $27,046 | | Total stockholders' equity | $26,317 | $24,887 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $49,077 | $51,933 | Unaudited Condensed Consolidated Statements of Operations Q1 2025 saw a 24% revenue decline to $4.3 million, leading to a $2.1 million net loss from continuing operations and a diluted loss per share of $0.14 Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Mar 30, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Revenue | $4,325 | $5,669 | | Gross Profit | $1,877 | $3,804 | | Operating Income (Loss) | $(1,981) | $132 | | Net Income (Loss) from Continuing Operations | $(2,090) | $73 | | Net Income (Loss) | $(2,191) | $108 | | Diluted EPS (Continuing Operations) | $(0.14) | $0.01 | Unaudited Condensed Consolidated Statements of Cash Flows Q1 2025 experienced a $4.3 million net decrease in cash, driven by $2.1 million used in operations and $1.5 million in investing activities Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Three Months Ended Mar 30, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(2,126) | $147 | | Net cash provided by (used in) investing activities | $(1,492) | $(651) | | Net cash provided by (used in) financing activities | $(708) | $3,297 | | Net increase (decrease) in cash | $(4,326) | $2,793 | Notes to Unaudited Condensed Consolidated Financial Statements Notes detail SensiML's discontinuation, liquidity sources including $17.5 million cash and $2.7 million from equity, and high revenue concentration from a single customer - The company has discontinued operations at its wholly-owned subsidiary, SensiML Corporation, and is actively exploring its sale to focus resources on its core eFPGA Hard IP and ruggedized FPGA business[19][50] - In Q1 2025, the company raised approximately $2.7 million in net proceeds through a registered direct offering ($1.5 million) and an At Market Issuance (ATM) offering ($1.2 million)[24][25][78] - As of March 30, 2025, the company had $15.0 million outstanding on its revolving line of credit with Heritage Bank at an interest rate of 8.00%. The loan maturity was extended to December 31, 2026[23][71] Revenue from Continuing Operations by Product Family (in thousands) | Product Family | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | New products | $3,747 | $4,538 | | Mature products | $578 | $1,131 | | Total revenue | $4,325 | $5,669 | - Revenue concentration remains high, with 'Customer A' accounting for 78% of revenue from continuing operations in Q1 2025, up from 66% in Q1 2024[101] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses a 24% revenue decline, 51% gross profit drop, increased operating expenses, and the strategic focus on core eFPGA business after SensiML's discontinuation Overview QuickLogic, a fabless semiconductor company, is refocusing on its core eFPGA and ruggedized FPGA business after discontinuing SensiML operations - The company is focusing on its core business of eFPGA IP, SoCs, and discrete FPGAs after discontinuing operations at its SensiML subsidiary[109][110] - Business growth is expected to be driven mainly by eFPGA IP and silicon solutions[117] - Total revenue from continuing operations in Q1 2025 was $4.3 million, a 24% decrease YoY. New product revenue was $3.7 million, a 17% decrease YoY[127] Results of Operations - Continuing Operations Continuing operations revenue declined 24% to $4.3 million in Q1 2025, with gross profit falling 51% to $1.9 million and operating expenses increasing 5% Revenue Comparison (Continuing Operations, in thousands) | Product Category | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | New products | $3,747 | $4,538 | $(791) | (17)% | | Mature products | $578 | $1,131 | $(553) | (49)% | | Total revenue | $4,325 | $5,669 | $(1,344) | (24)% | Gross Profit Comparison (Continuing Operations, in thousands) | Metric | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | $1,877 | $3,804 | $(1,927) | (51)% | | Gross Margin | 43% | 67% | - | - | - The decrease in gross profit was caused by a 24% revenue decline and a 31% increase in cost of revenue, primarily from higher depreciation, amortization, and labor costs[137] - Total operating expenses increased by 5% YoY, driven by an $0.2 million increase in SG&A from higher compensation and consulting services[139][141] Results of Operations - Discontinued Operations Discontinued SensiML operations generated minimal revenue of $11 thousand in Q1 2025, a 97% decrease, with $109 thousand in operating expenses including restructuring costs Financials for Discontinued Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $11 | $338 | $(327) | (97)% | | Gross Profit | $8 | $179 | $(171) | (96)% | | Total Operating Expenses | $109 | $138 | $(29) | (21)% | - Operating expenses for discontinued operations in Q1 2025 included $87 thousand in restructuring costs and $13 thousand in SG&A[148][151] Liquidity and Capital Resources Liquidity as of March 30, 2025, includes $17.5 million cash, a $15.0 million drawn credit facility, and $2.7 million from stock sales, deemed sufficient for the next twelve months - Principal sources of liquidity as of March 30, 2025, include $17.5 million in cash, a $15.0 million drawn-down from its revolving credit facility, and $2.7 million in net proceeds from recent stock sales[156] - The company's revolving credit facility with Heritage Bank was amended to extend the maturity date to December 31, 2026[161] Consolidated Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $(2,126) | $147 | | Net cash from investing activities | $(1,492) | $(651) | | Net cash from financing activities | $(708) | $3,297 | - Management believes existing cash, revenues, and available financing will be sufficient to fund operations and capital expenditures for the next twelve months[162] Quantitative and Qualitative Disclosures About Market Risk This section is not applicable for the current reporting period - Not Applicable[177] Controls and Procedures Disclosure controls and procedures were effective as of March 30, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were effective as of March 30, 2025[178] - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[181] Part II Legal Proceedings No legal proceedings were reported for the period - None[184] Risk Factors No material changes to risk factors were reported from the 2024 Annual Report on Form 10-K - No material changes to the risk factors set forth in the 2024 Annual Report on Form 10-K[185] Other Information No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - During the first quarter of 2025, none of the company's directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements[187] Exhibits This section lists exhibits filed with or incorporated by reference into the Form 10-Q, including agreements and certifications