QuickLogic(QUIK) - 2026 Q2 - Quarterly Report

Part I - Financial Information This section provides QuickLogic's unaudited condensed consolidated financial statements and management's discussion and analysis for the period ended June 29, 2025 Item 1. Unaudited Condensed Consolidated Financial Statements This section presents QuickLogic's unaudited financial statements, including balance sheets, operations, and cash flows, with SensiML classified as a discontinued operation Unaudited Condensed Consolidated Balance Sheets Total assets decreased to $50.2 million, liabilities reduced to $22.6 million, and stockholders' equity increased to $27.7 million as of June 29, 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 29, 2025 | December 29, 2024 | | :--- | :--- | :--- | | Total Current Assets | $27,389 | $29,604 | | Cash, cash equivalents and restricted cash | $19,191 | $21,859 | | Total Assets | $50,214 | $51,933 | | Total Current Liabilities | $21,525 | $25,397 | | Revolving line of credit | $15,000 | $18,000 | | Total Liabilities | $22,557 | $27,046 | | Total Stockholders' Equity | $27,657 | $24,887 | Unaudited Condensed Consolidated Statements of Operations Revenue declined to $3.7 million in Q2 2025, gross profit decreased significantly, and the net loss from continuing operations widened to $2.7 million Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended June 29, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 29, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $3,687 | $4,096 | $8,012 | $9,765 | | Gross Profit | $954 | $2,242 | $2,831 | $6,046 | | Operating Loss | $(2,522) | $(1,200) | $(4,503) | $(1,068) | | Net Loss from Continuing Operations | $(2,661) | $(1,229) | $(4,751) | $(1,156) | | Net Loss | $(2,670) | $(1,550) | $(4,861) | $(1,442) | | Diluted EPS (Continuing Operations) | $(0.17) | $(0.09) | $(0.30) | $(0.08) | Unaudited Condensed Consolidated Statements of Cash Flows Net cash used in operating activities increased to $1.5 million, with a $2.7 million overall decrease in cash and equivalents for the six months ended June 29, 2025 Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 29, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,498) | $(73) | | Net cash used in investing activities | $(3,001) | $(4,473) | | Net cash provided by financing activities | $1,817 | $3,206 | | Net decrease in cash | $(2,682) | $(1,340) | Notes to Unaudited Condensed Consolidated Financial Statements Notes detail the company's fabless semiconductor business, SensiML discontinuation, liquidity, revenue concentration, debt, and equity financing - In Q1 2025, the company discontinued operations at its SensiML subsidiary to focus resources on its core eFPGA IP and ruggedized FPGA business, with SensiML now accounted for as held for sale[20][48] - The company's primary liquidity sources as of June 29, 2025, include $19.2 million in cash, a $15.0 million advance from its revolving credit facility, and $5.6 million in net proceeds from recent stock sales[23] - In Q2 2025, the company recorded a full impairment charge of $0.3 million on a non-marketable equity investment[44] - For the six months ended June 29, 2025, one customer, "Customer A", accounted for 64% of revenue from continuing operations[100] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial performance, strategic shift to core eFPGA IP, revenue decline, gross profit impact, and liquidity for the next twelve months Results of Operations Q2 2025 revenue decreased by 10% to $3.7 million, gross profit fell 57%, and operating loss widened to $2.5 million due to lower sales and higher costs Q2 Revenue from Continuing Operations (in thousands) | Product Category | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | New products | $2,918 | $3,026 | $(108) | (4)% | | Mature products | $769 | $1,070 | $(301) | (28)% | | Total revenue | $3,687 | $4,096 | $(409) | (10)% | Q2 Gross Profit from Continuing Operations (in thousands) | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $3,687 | $4,096 | $(409) | (10)% | | Cost of revenue | $2,733 | $1,854 | $879 | 47% | | Gross profit | $954 | $2,242 | $(1,288) | (57)% | - The decrease in R&D expenses by $0.2 million in Q2 2025 compared to Q2 2024 was primarily due to increased labor allocations to Cost of Revenue for fulfilling revenue contracts[140] - A $0.3 million impairment charge was recorded in Q2 2025 related to the company's non-marketable equity investment[142] Liquidity and Capital Resources Liquidity is supported by $19.2 million cash, a $15.0 million credit facility, and $5.6 million from recent equity offerings, deemed sufficient for the next twelve months - The company secured net proceeds of approximately $1.5 million from a registered direct offering in March 2025 and $4.1 million from an ATM offering as of June 29, 2025[167][168] - The revolving line of credit's maturity date extended to December 31, 2026, with $15.0 million outstanding at an interest rate of 8.00% as of June 29, 2025[170] Summary of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended June 29, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,498) | $(73) | | Net cash used in investing activities | $(3,001) | $(4,473) | | Net cash provided by financing activities | $1,817 | $3,206 | Item 3. Quantitative and Qualitative Disclosures About Market Risk This item is not applicable for the current reporting period - The company has determined that quantitative and qualitative disclosures about market risk are not applicable for this reporting period[187] Item 4. Controls and Procedures Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of the end of the period[188][189] - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[191] Part II - Other Information This section covers legal proceedings, risk factors, and other information, including trading arrangements of directors and officers Item 1. Legal Proceedings No legal proceedings are reported for the current period - The company reported no legal proceedings[194] Item 1A. Risk Factors No material changes to previously disclosed risk factors were reported - There have been no material changes to the risk factors disclosed in the company's 2024 Annual Report on Form 10-K[195] Item 5. Other Information No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers during Q2 2025 - No directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the second quarter of 2025[197]