Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Apr. 02, 2022 | May 03, 2022 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | NETLIST INC | |
Entity Central Index Key | 0001282631 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 2, 2022 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-33170 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4812784 | |
Entity Address, Address Line One | 111 Academy, Suite 100 | |
Entity Address, City or Town | Irvine | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92617 | |
City Area Code | 949 | |
Local Phone Number | 435-0025 | |
Title of 12(b) Security | None | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 231,028,600 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 02, 2022 | Jan. 01, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 37,530 | $ 47,679 |
Restricted cash | 20,800 | 10,800 |
Accounts receivable, net of allowances of $207 (2022) and $283 (2021) | 5,777 | 12,727 |
Inventories | 19,503 | 15,670 |
Prepaid expenses and other current assets | 1,167 | 1,126 |
Total current assets | 84,777 | 88,002 |
Property and equipment, net | 1,129 | 989 |
Operating lease right-of-use assets | 2,279 | 1,891 |
Other assets | 287 | 294 |
Total assets | 88,472 | 91,176 |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||
Accounts payable | 28,963 | 25,887 |
Revolving line of credit | 4,732 | 7,000 |
Accrued payroll and related liabilities | 1,345 | 1,308 |
Accrued expenses and other current liabilities | 709 | 632 |
Long-term debt due within one year | 376 | 562 |
Total current liabilities | 36,125 | 35,389 |
Operating lease liabilities | 1,994 | 1,593 |
Other liabilities | 187 | 152 |
Total liabilities | 38,306 | 37,134 |
Commitments and contingencies | ||
Stockholders' equity (deficit): | ||
Preferred stock, $0.001 par value-10,000 shares authorized: Series A preferred stock, $0.001 par value; 1,000 shares authorized; none issued and outstanding | ||
Common stock, $0.001 par value-450,000 shares authorized; 231,029 (2022) and 230,113 (2021) shares issued and outstanding | 232 | 231 |
Additional paid-in capital | 245,861 | 243,866 |
Accumulated deficit | (195,927) | (190,055) |
Total stockholders' equity | 50,166 | 54,042 |
Total liabilities and stockholders' equity | $ 88,472 | $ 91,176 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 02, 2022 | Jan. 01, 2022 |
Accounts receivable, allowance for doubtful accounts | $ 207 | $ 283 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 450,000,000 | 450,000,000 |
Common stock, shares issued | 231,029,000 | 230,113,000 |
Common stock, shares outstanding | 231,029,000 | 230,113,000 |
Series A Preferred Stock | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Condensed Consolidated Statements of Operations | ||
Net product sales | $ 50,200 | $ 14,897 |
Cost of sales | 46,837 | 13,396 |
Gross margin | 3,363 | 1,501 |
Operating expenses: | ||
Research and development | 2,457 | 1,124 |
Intellectual property legal fees | 2,826 | 2,287 |
Selling, general and administrative | 3,938 | 1,957 |
Total operating expenses | 9,221 | 5,368 |
Operating loss | (5,858) | (3,867) |
Other expense, net: | ||
Interest expense, net | (11) | (147) |
Other expense, net | (2) | (2) |
Total other expense, net | (13) | (149) |
Loss before provision for income taxes | (5,871) | (4,016) |
Provision for income taxes | 1 | 1 |
Net loss | $ (5,872) | $ (4,017) |
Earnings (loss) per share: | ||
Basic | $ (0.03) | $ (0.02) |
Diluted | $ (0.03) | $ (0.02) |
Weighted-average common shares outstanding: | ||
Basic | 230,546 | 205,680 |
Diluted | 230,546 | 205,680 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders Equity (Deficit) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Jan. 02, 2021 | $ 195 | $ 192,071 | $ (194,886) | $ (2,620) |
Balance, shares at Jan. 02, 2021 | 195,978 | |||
Net loss | (4,017) | (4,017) | ||
Issuance of common stock, net | $ 12 | 9,349 | 9,361 | |
Issuance of common stock, shares | 11,700 | |||
Exercise of stock options | 376 | 376 | ||
Exercise of stock options, shares | 476 | |||
Exercise of warrants | $ 7 | 3,975 | 3,982 | |
Exercise of warrants, shares | 6,508 | |||
Stock-based compensation | 338 | 338 | ||
Restricted stock units vested and distributed | $ 1 | (1) | ||
Restricted stock units vested and distributed, shares | 501 | |||
Tax withholdings related to net share settlements of equity awards | (276) | (276) | ||
Tax withholdings related to net share settlements of equity awards (in shares) | (150) | |||
Balance at Apr. 03, 2021 | $ 215 | 205,832 | (198,903) | 7,144 |
Balance, shares at Apr. 03, 2021 | 215,013 | |||
Balance at Jan. 01, 2022 | $ 231 | 243,866 | (190,055) | 54,042 |
Balance, shares at Jan. 01, 2022 | 230,113 | |||
Net loss | (5,872) | (5,872) | ||
Issuance of common stock, net | 1,767 | 1,767 | ||
Issuance of common stock, shares | 303 | |||
Exercise of stock options | 138 | $ 138 | ||
Exercise of stock options, shares | 197 | 197,000 | ||
Stock-based compensation | 682 | $ 682 | ||
Restricted stock units vested and distributed | $ 1 | (1) | ||
Restricted stock units vested and distributed, shares | 533 | |||
Tax withholdings related to net share settlements of equity awards | (591) | (591) | ||
Tax withholdings related to net share settlements of equity awards (in shares) | (117) | |||
Balance at Apr. 02, 2022 | $ 232 | $ 245,861 | $ (195,927) | $ 50,166 |
Balance, shares at Apr. 02, 2022 | 231,029 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (5,872) | $ (4,017) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 81 | 33 |
Interest accrued on convertible promissory notes | 76 | |
Amortization of debt discounts | 53 | |
Non-cash lease expense | 167 | 112 |
Stock-based compensation | 682 | 338 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 6,950 | (998) |
Inventories | (3,833) | (5,358) |
Prepaid expenses and other assets | (34) | (196) |
Accounts payable | 3,076 | 5,777 |
Accrued payroll and related liabilities | 37 | (13) |
Accrued expenses and other liabilities | (37) | (98) |
Net cash provided by (used in) operating activities | 1,217 | (4,291) |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (221) | (41) |
Net cash used in investing activities | (221) | (41) |
Cash flows from financing activities: | ||
Net (payments) borrowings under line of credit | (2,268) | 962 |
Principal repayments under finance lease | (5) | |
Repayments on notes payable | (186) | (83) |
Proceeds from issuance of common stock, net | 1,767 | 9,361 |
Proceeds from exercise of stock options and warrants | 138 | 4,358 |
Payments for taxes related to net share settlement of equity awards | (591) | (276) |
Net cash (used in) provided by financing activities | (1,145) | 14,322 |
Net change in cash, cash equivalents and restricted cash | (149) | 9,990 |
Cash, cash equivalents and restricted cash at beginning of period | 58,479 | 16,526 |
Cash, cash equivalents and restricted cash at end of period | $ 58,330 | $ 26,516 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 |
Reconciliation of cash, cash equivalents and restricted cash at end of period: | ||
Cash and cash equivalents | $ 37,530 | $ 21,616 |
Restricted cash | 20,800 | 4,900 |
Cash, cash equivalents and restricted cash at end of period | $ 58,330 | $ 26,516 |
Description of Business
Description of Business | 3 Months Ended |
Apr. 02, 2022 | |
Description of Business | |
Description of Business | Note 1—Description of Business Netlist, Inc. and its wholly-owned subsidiaries (collectively the “Company” or “Netlist”) provides high-performance solid state drives and modular memory solutions to enterprise customers in diverse industries. The Company's NVMe SSDs in various capacities and form factors and the line of custom and specialty memory products bring industry-leading performance to server and storage appliance customers and cloud service providers. Netlist licenses its portfolio of intellectual property including patents, in server memory, hybrid memory and storage class memory, to companies that implement Netlist’s technology. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 02, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2—Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain information and footnote disclosures normally included in the condensed consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements should be read in conjunction with the condensed consolidated financial statements and notes thereto as of and for the year ended January 1, 2022, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 1, 2022 (the “2021 Annual Report”). In the opinion of management, all adjustments for the fair presentation of the Company’s condensed consolidated financial statements have been made. The adjustments are of a normal recurring nature except as otherwise noted. The results of operations for the interim periods are not necessarily indicative of the results to be expected for other periods or the full fiscal year. The Company has evaluated events occurring subsequent to April 2, 2022 through the filing date of this Quarterly Report on Form 10-Q and concluded that there were no events that required recognition and disclosures other than those discussed elsewhere in the notes hereto. Principles of Consolidation Fiscal Year The Company’s fiscal year is the 52- or 53-week period that ends on the Saturday nearest to December 31. The Company’s fiscal year 2022 will include 52 weeks and ends on December 31, 2022. Each quarter of fiscal year 2022 will be comprised of 13 weeks. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in January and the associated quarters, months and periods of those fiscal years. Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results may differ materially from those estimates. Recently Issued Accounting Guidance In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity . This ASU amends the guidance on convertible instruments and the derivatives scope exception for contracts in an entity's own equity, and also improves and amends the related earnings per share guidance for both Subtopics. The ASU was effective for the three months ended April 2, 2022. The adoption of this ASU did not have an impact on the Company’s condensed consolidated financial statements as the Company paid off its convertible debt in December 2021. |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Apr. 02, 2022 | |
Supplemental Financial Information | |
Supplemental Financial Information | Note 3—Supplemental Financial Information Inventories Inventories consisted of the following (in thousands): April 2, January 1, 2022 2022 Raw materials $ 8,448 $ 4,208 Work in process 219 154 Finished goods 10,836 11,308 $ 19,503 $ 15,670 Loss Per Share The following table shows the computation of basic and diluted loss per share of common stock (in thousands, except per share data): Three Months Ended April 2, April 3, 2022 2021 Numerator: Net loss $ (5,872) $ (4,017) Denominator: Weighted-average common shares outstanding—basic and diluted 230,546 205,680 Net loss per share—basic and diluted $ (0.03) $ (0.02) The table below shows potentially dilutive weighted average common share equivalents, consisting of shares issuable upon the exercise of outstanding stock options and warrants using the treasury stock method, shares issuable upon conversion feature of a convertible note using the “if-converted” method, and the shares vesting of issuable upon the RSAs and RSUs. These potential weighted average common share equivalents have been excluded from the diluted net loss per share calculations above as their effect would be anti-dilutive (in thousands): Three Months Ended April 2, April 3, 2022 2021 Weighted average common share equivalents $ 6,369 $ 17,082 Disaggregation of Net Sales The following table shows disaggregated net sales by major source (in thousands): Three Months Ended April 2, April 3, 2022 2021 Resales of third-party products $ 45,585 $ 11,358 Sale of the Company's modular memory subsystems 4,615 3,539 Total net sales $ 50,200 $ 14,897 Major Customers and Products The Company’s net product sales have historically been concentrated in a small number of customers. The following table sets forth the percentage of net product sales made to customers that each comprise 10% or more of total product sales: Three Months Ended April 2, April 3, 2022 2021 Customer A * % 10 % Customer B * % 10 % Customer C 53 % * % * Less than 10% of net sales during the period. As of April 2, 2022, one customer represented 36% of aggregated gross receivables. As of January 1, 2022, four customers represented 26%, 16%, 13%, and 13% of aggregate gross receivables, respectively. The loss of a major customer or a reduction in sales to or difficulties collecting payments from these customers could significantly reduce the Company’s net sales and adversely affect its operating results. The Company mitigates risks associated with foreign and domestic receivables by purchasing comprehensive credit insurance. The Company resells certain component products to end-customers that are not reached in the distribution models of the component manufacturers, including storage customers, appliance customers, system builders and cloud and datacenter customers. For the three months ended April 2, 2022 and April 3, 2021, resales of these products represented approximately 91% and 76% of net product sales, respectively. |
Credit Agreements
Credit Agreements | 3 Months Ended |
Apr. 02, 2022 | |
Credit Agreements | |
Credit Agreements | Note 4—Credit Agreement On October 31, 2009, the Company and Silicon Valley Bank (“SVB”) entered into a credit agreement (as the same may from time to time be amended, modified, supplemented or restated, (the “SVB Credit Agreement”), which provides for a revolving line of credit up to $5.0 million. The borrowing base is limited to 85% of the eligible accounts receivable, subject to certain adjustments. On April 9, 2021, we entered into an amendment to the SVB Credit Agreement to accrue interest on borrowings at a per annum rate equal to the greater of 2.25% above the Wall Street Journal prime rate (“Prime Rate”) or 5.50% from the Prime Rate plus 2.75% and to extend the maturity date to December 30, 2021. In December 2021, after meeting the conditions set forth in the amendment, the amount available for borrowing was increased to $7.0 million and the maturity date was extended to April 29, 2022, upon our request. On April 29, 2022, the Company entered into an amendment to the SVB Credit Agreement to accrue interest on advance at a per annum rate equal to the greater of 0.75% above the Prime Rate or 4.25 %. The borrowing base is limited to 85% of eligible accounts receivable, subject to certain adjustments, and 50% of eligible inventory. The maximum amount available for borrowing was increased to $10.0 million and the maturity date to April 28, 2023. The SVB Credit Agreement requires letters of credit to be secured by cash, which is classified as restricted cash in the accompanying condensed consolidated balance sheets. As of April 2, 2022 and January 1, 2022, (i) outstanding letters of credit were $20.8 million and $10.8 million, respectively, (ii) outstanding borrowings were $4.7 million and $7.0 million, respectively, and (iii) availability under the revolving line of credit was $0.1 million and none, respectively. |
Debt
Debt | 3 Months Ended |
Apr. 02, 2022 | |
Debt | |
Debt | Note 5—Debt The Company’s debt consisted of the following (in thousands): April 2, January 1, 2022 2022 Note payable 376 562 Less: amounts due within one year (376) (562) Long-term debt $ — $ — . |
Leases
Leases | 3 Months Ended |
Apr. 02, 2022 | |
Leases | |
Leases | Note 6—Leases The Company has operating and finance leases primarily associated with office and manufacturing facilities and certain equipment. The determination of which discount rate to use when measuring the lease obligation was deemed a significant judgment. Lease cost and supplemental cash flow information related to operating leases was as follows (in thousands): Three Months Ended April 2, April 3, 2022 2021 Lease cost: Operating lease cost $ 198 $ 119 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 149 $ 119 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 555 $ — Supplemental balance sheet information related to leases was as follows (in thousands): April 2, January 1, 2022 2022 Operating Leases Operating lease right-of-use assets $ 2,279 $ 1,891 Accrued expenses and other current liabilities $ 352 $ 318 Operating lease liabilities 1,994 1,593 Total operating lease liabilities $ 2,346 $ 1,911 Finance Leases Property and equipment, at cost $ 116 $ 116 Accumulated depreciation (60) (54) Property and equipment, net $ 56 $ 62 Accrued expenses and other current liabilities $ 24 $ 24 Other liabilities 35 41 Total finance lease liabilities $ 59 $ 65 The following table includes supplemental information: April 2, January 1, 2022 2022 Weighted Average Remaining Lease Term (in years) Operating lease 4.7 4.8 Finance lease 2.7 2.9 . Weighted Average Discount Rate Operating lease 5.5% 5.5% Finance lease 5.2% 5.2% Maturities of lease liabilities as of April 2, 2022, were as follows (in thousands): Operating Finance Fiscal Year Leases Leases 2022 (remainder of the year) $ 362 $ 20 2023 452 26 2024 601 10 2025 621 5 2026 639 3 2027 23 — Total lease payments 2,698 64 Less: imputed interest (352) (5) Total $ 2,346 $ 59 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 02, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 7 – Commitments and Contingencies Contingent Legal Expenses whereby such law firms are paid on a scaled percentage of any negotiated fee, settlements or judgments awarded based on how and when the fees, settlements or judgments are obtained. Litigation and Patent Reexaminations We own numerous patents and continue to seek to grow and strengthen our patent portfolio, which covers various aspects of our innovations and includes various claim scopes. We plan to pursue avenues to monetize our intellectual property portfolio, in which we would generate revenue by selling or licensing our technology, and we intend to vigorously enforce our patent rights against alleged infringers of such rights. We dedicate substantial resources to protecting and enforcing our intellectual property rights, including with patent infringement proceedings we file against third parties and defense of our patents against challenges made by way of reexamination and review proceedings at the U.S. Patent and Trademark Office (“USPTO”) Patent Trial and Appeal Board (“PTAB”). We expect these activities to continue for the foreseeable future, with no guarantee that any ongoing or future patent protection or litigation activities will be successful, or that we will be able to monetize our intellectual property portfolio. We are also subject to litigation based on claims that we have infringed on the intellectual property rights of others. Any litigation, regardless of its outcome, is inherently uncertain, involves a significant dedication of resources, including time and capital, and diverts management’s attention from our other activities. As a result, any current or future infringement claims or patent challenges by or against third parties, whether eventually decided in our favor or settled, could materially adversely affect our business, financial condition and results of operations. Additionally, the outcome of pending or future litigation and related patent reviews and reexaminations, as well as any delay in their resolution, could affect our ability to continue to sell our products, protect against competition in the current and expected markets for our products or license or otherwise monetize our intellectual property rights in the future. Google Litigation On December 4, 2009, Netlist filed a patent infringement lawsuit against Google, Inc. (“Google”) in the U.S. District Court for the Northern District of California (the “NDCA”), seeking damages and injunctive relief based on Google’s alleged infringement of our U.S. Patent No. 7,619,912 (the “‘912 patent”) which relates generally to technologies to implement rank multiplication. The NDCA case was stayed, pending challenges to the ‘912 patent before the United States Patent and Trademark Office. Eventually, the United States Court of Appeals for the Federal Circuit confirmed the ‘912 patent’s validity on June 15, 2020, and the NDCA case stay was lifted. the case proceeded before Senior Judge Armstrong, where the parties entered cross motions for summary judgment. Of the issues in play, the parties contested the application of the defense of intervening rights to the claims at issue in the case. Afterward, the NDCA case was re-assigned to Chief Judge Seeborg of the NDCA, and the hearing for the parties’ cross motions took place on March 3, 2022. On May 5, 2022, Chief Judge Seeborg entered an Order granting Netlist, Inc.’s Motion for Summary Judgement that Claim 16 of the ‘912 patent is not subject to Google’s pleaded defense of Intervening Rights, while also entering orders on other issues, including setting a remote case management conference for June 23, 2022 at 10:00am pacific time. Micron Litigation On April 28, 2021, Netlist filed a complaint for patent infringement against Micron Technology, Inc. (“Micron”) in the United States District Court for the Western District of Texas, Waco Division (Case No. 6:21-cv00431 & Case No. 6:21-cv-00430) These proceedings are based on the alleged infringement by Micron’s load reduced dual in line memory modules (“LRDIMM”) and Micron’s non-volatile dual in line memory modules (“NVDIMM”) enterprise memory modules under four U.S. patents – US Pat. No. 10,489,314; US Pat. No. 9,824,035; US Pat. No. 10,268,608; & US Pat. No. 8,301,833. As of the reporting date, the case has been assigned to Hon. Judge Lee Yeakel, and the parties completed briefing on their claim construction arguments. The matter is set for a Claim Construction hearing on May 12, 2022. In parallel, Micron filed requests to bring Inter Partes Review (“IPR”) proceedings against all four asserted patents: U.S. Patents 8,301,833, 9,854,035, 10,268,608, and 10,489,314. As of the reporting date, the PTAB has not made a decision with respect any of these IPR requests. Samsung Litigations On May 28, 2020, Netlist filed a complaint against Samsung in the United States District Court for the Central District of California for Samsung’s breach of the parties’ JDLA. On July 22, 2020, Netlist amended its complaint to seek a Declaratory Judgment that it properly terminated the JDLA in light of Samsung’s material breaches. On October 14, 2021, the Court entered summary judgment in Netlist’s favor and confirmed Netlist properly terminated the JDLA as of July 15, 2020. On February 15, 2022, the Court entered a Final Judgment in favor of Netlist on each of its three claims and confirmed conclusively that all licenses granted under the JDLA were terminated. On February 25, 2022, Samsung filed a Notice of Appeal, and the Federal Court of Appeals for the Ninth Circuit issued a Time Schedule Order on February 28, 2022, setting Samsung’s deadline to file an opening appeal brief as June 6, 2022. Netlist noticed its intention to file a cross-appeal and the Ninth Circuit confirmed a contemporaneous briefing deadline of June 6, 2022, for the same. On October 15, 2021, Samsung filed a declaratory judgement action against Netlist in the United States District Court for the District of Delaware (“DDE”), requesting in relevant part that the Delaware District Court declare that Samsung does not infringe Netlist’s U.S. Patent Nos. 7,619,912, 9,858,218, 10,217,523, 10,474,595, 10,860,506, 10,949,339, and 11,016,918. As of the reporting date, Samsung seeks leave to add U.S. Pat. 11,232,054 (issued Jan. 25, 2022) to the action. Netlist believes Samsung’s claims levied in the DDE action meritless, and the relief Samsung requests unjustified. As of the reporting date, Netlist filed a motion seeking dismissal of Samsung’s DDE complaint, and an opposition contesting the inclusion of U.S. Pat. 11,232,054 as part of a second amended complaint filing. The matter is fully briefed, and Netlist awaits an order from the Court. On November 19, 2021, Samsung filed IPR proceedings contesting the validity of U.S. Patents 9,858,218 (the “’218 patent”), 10,474,595 (the “’595 patent”), and 10,217,523 (the “’523 patent”). Netlist filed its initial responses to Samsung’s petitions on February 18, 2022, contesting the institution of any IPR on the grounds propounded. As of the reporting date, the PTAB has not yet made decision with respect to the IPR requests related to the ‘218 or ‘595 patents, but did enter an order instituting IPR proceedings for the ‘523 patent on May 5, 2022. On February 17, 2022, Samsung filed a separate IPR request contesting the validity of only claim 16 within Netlist’s U.S. Patent 7,619,912. The PTAB issued a filing date for this challenge of the ‘912 patent, making Netlist’s Patent Owner Preliminary Response due on July 21, 2022. As of the reporting date, Samsung has filed two additional IPR proceedings contesting the validity of Netlist’s U.S. Patents 10,860,506 and 10,949,339. The PTAB issued filing dates for both, making Netlist’s deadline to file its Preliminary Responses to each on July 21, 2022 and July 28, 2022, respectively, On December 20, 2021, Netlist filed for a complaint for patent infringement against Samsung in the United States Court for the Eastern District of Texas (Case No. 2:21-cv-463) under US Pat. No. 10,860,506; US Pat. No. 10,949,339; & US Pat. No. 11,016,918. Samsung responded to Netlist’s complaint on April 12, 2022, and Judge Gilstrap ordered a scheduling conference be set for May 18, 2022. On May 3, 2022, Netlist entered a First Amended Complaint pursuant to FRCP Rule 15, adding claims for infringement under three additional patents: U.S. Patents 8,787,060, 9,318,160, and 11,232,054. On May 4, 2022, Netlist complied with the EDTX local patent rules and served its preliminary infringement contentions on Samsung. As of the reporting date, Netlist awaits its opportunity to appear in Judge Gilstrap’s ordered case management conference. Other Contingent Obligations In the ordinary course of our business, we have made certain indemnities, commitments and guarantees pursuant to which we may be required to make payments in relation to certain transactions. These include, among others: (i) intellectual property indemnities to our customers and licensees in connection with the use, sale and/or license of our products; (ii) indemnities to vendors and service providers pertaining to claims based on our negligence or willful misconduct; (iii) indemnities involving the accuracy of representations and warranties in certain contracts; (iv) indemnities to our directors and officers to the maximum extent permitted under the laws of the State of Delaware; (v) indemnities to SVB pertaining to all obligations, demands, claims, and liabilities claimed or asserted by any other party in connection with transactions contemplated by the applicable investment or loan documents, as applicable; and (vi) indemnities or other claims related to certain real estate leases, under which we may be required to indemnify property owners for environmental and other liabilities or may face other claims arising from our use of the applicable premises. The duration of these indemnities, commitments and guarantees varies and, in certain cases, may be indefinite. The majority of these indemnities, commitments and guarantees do not provide for any limitation of the maximum potential for future payments we could be obligated to make. Historically, we have not been obligated to make significant payments as a result of these obligations, and no liabilities have been recorded for these indemnities, commitments and guarantees in the accompanying consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Apr. 02, 2022 | |
Stockholders' Equity | |
Stockholders' Equity | Note 8—Stockholders’ Equity Serial Preferred Stock The Company’s authorized capital stock includes 10,000,000 shares of serial preferred stock, with a par value of $0.001 per share. No shares of preferred stock were outstanding as of April 2, 2022 or January 2, 2022. On April 17, 2017, the Company entered into a rights agreement (as amended from time to time, the “Rights Agreement”) with Computershare Trust Company, N.A., as rights agent. In connection with the adoption of the Rights Agreement and pursuant to its terms, the Company’s board of directors authorized and declared a dividend of one right (each, a “Right”) for each outstanding share of the Company’s common stock to stockholders of record at the close of business on May 18, 2017 (the “Record Date”), and authorized the issuance of one Right for each share of the Company’s common stock issued by the Company (except as otherwise provided in the Rights Agreement) between the Record Date and the Distribution Date (as defined below). Each Right entitles the registered holder, subject to the terms of the Rights Agreement, to purchase from the Company, when exercisable and subject to adjustment, one unit consisting of one one 10 In connection with the adoption of the Rights Agreement, the Company’s board of directors approved a Certificate of Designation of the Series A Preferred Stock (the “Certificate of Designation”) designating 1,000,000 shares of its serial preferred stock as Series A Preferred Stock and setting forth the rights, preferences and limitations of the Preferred Stock. The Company filed the Certificate of Designation with the Secretary of State of the State of Delaware on April 17, 2017. Common Stock September 2021 Lincoln Park Purchase Agreement On September 28, 2021, the Company entered into a purchase agreement (the “September 2021 Purchase Agreement”) with Lincoln Park, pursuant to which the Company has the right to sell to Lincoln Park up to an aggregate of $75 million in shares of its common stock subject to the conditions and limitations set forth in the September 2021 Purchase Agreement. Concurrent with the execution of the September 2021 Purchase Agreement, the Company also entered into a registration rights agreement with Lincoln Park relating to the Company’s common stock to be sold to Lincoln Park. As consideration for entering into the September 2021 Purchase Agreement, the Company issued to Lincoln Park 218,750 shares of its common stock as initial commitment shares in a noncash transaction on September 28, 2021 and will issue up to 143,750 additional shares of its common stock as additional commitment shares on a pro rata basis in connection with any additional purchases. The Company will not receive any cash proceeds from the issuance of these additional commitment shares. Pursuant to the September 2021 Purchase Agreement, on any business day and as often as every other business day over the 36-month The Company controls the timing and amount of any sales of its common stock to Lincoln Park. There is no upper limit on the price per share that Lincoln Park must pay for the Company’s common stock under the September 2021 Purchase Agreement, but in no event will shares be sold to Lincoln Park on a day the closing price is less than the floor price specified in the September 2021 Purchase Agreement. In all instances, the Company may not sell shares of its common stock to Lincoln Park under the September 2021 Purchase Agreement if that would result in Lincoln Park beneficially owning more than 9.99% of its common stock. The September 2021 Purchase Agreement does not limit the Company’s ability to raise capital from other sources at the Company’s sole discretion, except that, subject to certain exceptions, the Company may not enter into any Variable Rate Transaction (as defined in the September 2021 Purchase Agreement, including the issuance of any floating conversion rate or variable priced equity-like securities) during the 36 months after the date of the September 2021 Purchase Agreement. The Company has the right to terminate the September 2021 Purchase Agreement at any time, at no cost to the Company. During 2021, Lincoln Park purchased an aggregate of 1,550,000 shares of our common stock for a net purchase price of $10.9 million under the September 2021 Purchase Agreement. In connection with the purchases, we issued to Lincoln Park an aggregate of 20,809 shares of our common stock as additional commitment shares in noncash transactions. During the first quarter of 2022, Lincoln Park purchased an aggregate of 300,000 shares of our common stock for a net purchase price of $1.8 million under the September 2021 Purchase Agreement. In connection with the purchases, we issued to Lincoln Park an aggregate of 3,387 shares of our common stock as additional commitment shares in noncash transactions. |
Stock-Based Awards
Stock-Based Awards | 3 Months Ended |
Apr. 02, 2022 | |
Stock-Based Awards | |
Stock-Based Awards | Note 9—Stock-Based Awards As of April 2, 2022, the Company had 487,512 shares of common stock reserved for future issuance under its Amended and Restated 2006 Incentive Plan (“Amended 2006 Plan”). Stock options granted under the Amended 2006 Plan generally vest at a rate of at least 25% per year over four years and expire 10 years from the grant date. RSUs granted for employees and consultants generally vest in equal installments annually and fully vest over a four-year term from the grant date. Stock Options The following table summarizes the activity related to stock options during the three months ended April 2, 2022: Weighted- Number of Average Shares Exercise (in thousands) Price Outstanding as of January 1, 2022 5,899 $ 0.88 Granted — — Exercised (197) 0.70 Expired or forfeited (372) 0.76 Outstanding as of April 2, 2022 5,330 $ 0.90 Restricted Stock Units The following table summarizes the activity related to RSUs during the three months ended April 2, 2022: Weighted- Average Number of Grant-Date Shares Fair Value (in thousands) per Share Outstanding as of January 1, 2022 2,228 $ 1.36 Granted 1,446 3.65 Vested (533) 0.76 Forfeited (2) 0.54 Outstanding as of April 2, 2022 3,139 $ 2.52 Stock-Based Compensation The following table summarizes the stock-based compensation expense by line item in the condensed consolidated statements of operations (in thousands): Three Months Ended April 2, April 3, 2022 2021 Cost of sales $ 3 $ 3 Research and development 176 110 Selling, general and administrative 503 225 Total $ 682 $ 338 As of April 2, 2022, the Company had approximately $8.0 million, net of estimated forfeitures, of unearned stock-based compensation, which it expects to recognize over a weighted-average period of approximately 3.4 years. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 02, 2022 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain information and footnote disclosures normally included in the condensed consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements should be read in conjunction with the condensed consolidated financial statements and notes thereto as of and for the year ended January 1, 2022, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 1, 2022 (the “2021 Annual Report”). In the opinion of management, all adjustments for the fair presentation of the Company’s condensed consolidated financial statements have been made. The adjustments are of a normal recurring nature except as otherwise noted. The results of operations for the interim periods are not necessarily indicative of the results to be expected for other periods or the full fiscal year. The Company has evaluated events occurring subsequent to April 2, 2022 through the filing date of this Quarterly Report on Form 10-Q and concluded that there were no events that required recognition and disclosures other than those discussed elsewhere in the notes hereto. |
Principles of Consolidation | Principles of Consolidation |
Fiscal Year | Fiscal Year The Company’s fiscal year is the 52- or 53-week period that ends on the Saturday nearest to December 31. The Company’s fiscal year 2022 will include 52 weeks and ends on December 31, 2022. Each quarter of fiscal year 2022 will be comprised of 13 weeks. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in January and the associated quarters, months and periods of those fiscal years. |
Use of Estimates | Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results may differ materially from those estimates. |
Recently Issued Accounting Standards | Recently Issued Accounting Guidance In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity . This ASU amends the guidance on convertible instruments and the derivatives scope exception for contracts in an entity's own equity, and also improves and amends the related earnings per share guidance for both Subtopics. The ASU was effective for the three months ended April 2, 2022. The adoption of this ASU did not have an impact on the Company’s condensed consolidated financial statements as the Company paid off its convertible debt in December 2021. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Apr. 02, 2022 | |
Supplemental Financial Information | |
Schedule Of Inventories | April 2, January 1, 2022 2022 Raw materials $ 8,448 $ 4,208 Work in process 219 154 Finished goods 10,836 11,308 $ 19,503 $ 15,670 |
Schedule of computation of basic and diluted earnings (loss) per share | The following table shows the computation of basic and diluted loss per share of common stock (in thousands, except per share data): Three Months Ended April 2, April 3, 2022 2021 Numerator: Net loss $ (5,872) $ (4,017) Denominator: Weighted-average common shares outstanding—basic and diluted 230,546 205,680 Net loss per share—basic and diluted $ (0.03) $ (0.02) |
Schedule of disaggregation of sales by major source | The following table shows disaggregated net sales by major source (in thousands): Three Months Ended April 2, April 3, 2022 2021 Resales of third-party products $ 45,585 $ 11,358 Sale of the Company's modular memory subsystems 4,615 3,539 Total net sales $ 50,200 $ 14,897 |
Schedule of sales from external customers | Three Months Ended April 2, April 3, 2022 2021 Customer A * % 10 % Customer B * % 10 % Customer C 53 % * % * Less than 10% of net sales during the period. |
Schedule of potential common shares excluded from diluted net loss per share calculations | Three Months Ended April 2, April 3, 2022 2021 Weighted average common share equivalents $ 6,369 $ 17,082 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Apr. 02, 2022 | |
Debt | |
Schedule of long-term debt | April 2, January 1, 2022 2022 Note payable 376 562 Less: amounts due within one year (376) (562) Long-term debt $ — $ — |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 02, 2022 | |
Leases | |
Schedule of lease cost and supplemental cash flow information relating to operating leases | Lease cost and supplemental cash flow information related to operating leases was as follows (in thousands): Three Months Ended April 2, April 3, 2022 2021 Lease cost: Operating lease cost $ 198 $ 119 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 149 $ 119 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 555 $ — |
Schedule of supplemental balance sheet information | April 2, January 1, 2022 2022 Operating Leases Operating lease right-of-use assets $ 2,279 $ 1,891 Accrued expenses and other current liabilities $ 352 $ 318 Operating lease liabilities 1,994 1,593 Total operating lease liabilities $ 2,346 $ 1,911 Finance Leases Property and equipment, at cost $ 116 $ 116 Accumulated depreciation (60) (54) Property and equipment, net $ 56 $ 62 Accrued expenses and other current liabilities $ 24 $ 24 Other liabilities 35 41 Total finance lease liabilities $ 59 $ 65 The following table includes supplemental information: April 2, January 1, 2022 2022 Weighted Average Remaining Lease Term (in years) Operating lease 4.7 4.8 Finance lease 2.7 2.9 . Weighted Average Discount Rate Operating lease 5.5% 5.5% Finance lease 5.2% 5.2% |
Schedule of maturities of operating lease liabilities | Operating Finance Fiscal Year Leases Leases 2022 (remainder of the year) $ 362 $ 20 2023 452 26 2024 601 10 2025 621 5 2026 639 3 2027 23 — Total lease payments 2,698 64 Less: imputed interest (352) (5) Total $ 2,346 $ 59 |
Schedule of maturities of finance lease liabilities | Maturities of lease liabilities as of April 2, 2022, were as follows (in thousands): Operating Finance Fiscal Year Leases Leases 2022 (remainder of the year) $ 362 $ 20 2023 452 26 2024 601 10 2025 621 5 2026 639 3 2027 23 — Total lease payments 2,698 64 Less: imputed interest (352) (5) Total $ 2,346 $ 59 |
Stock-Based Awards (Tables)
Stock-Based Awards (Tables) | 3 Months Ended |
Apr. 02, 2022 | |
Stock-Based Awards | |
Schedule of common stock options activity | Weighted- Number of Average Shares Exercise (in thousands) Price Outstanding as of January 1, 2022 5,899 $ 0.88 Granted — — Exercised (197) 0.70 Expired or forfeited (372) 0.76 Outstanding as of April 2, 2022 5,330 $ 0.90 |
Schedule of restricted stock Awards | Weighted- Average Number of Grant-Date Shares Fair Value (in thousands) per Share Outstanding as of January 1, 2022 2,228 $ 1.36 Granted 1,446 3.65 Vested (533) 0.76 Forfeited (2) 0.54 Outstanding as of April 2, 2022 3,139 $ 2.52 |
Schedule of stock-based compensation Expense | Three Months Ended April 2, April 3, 2022 2021 Cost of sales $ 3 $ 3 Research and development 176 110 Selling, general and administrative 503 225 Total $ 682 $ 338 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - item | Apr. 02, 2022 | Jan. 01, 2022 |
Number of weeks in a fiscal year | 52 | |
Number of weeks in first three quarters | 13 | |
Minimum [Member] | ||
Number of weeks in a fiscal year | 52 | |
Maximum [Member] | ||
Number of weeks in a fiscal year | 53 |
Supplemental Financial Inform_3
Supplemental Financial Information (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Jan. 01, 2022 |
Supplemental Financial Information | ||
Raw materials | $ 8,448 | $ 4,208 |
Work in process | 219 | 154 |
Finished goods | 10,836 | 11,308 |
Inventories | $ 19,503 | $ 15,670 |
Supplemental Financial Inform_4
Supplemental Financial Information (Schedule Of Computation Of (Loss) Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | Jan. 01, 2022 | |
Basic and diluted (loss) earnings per share: | |||
Net loss | $ (5,872) | $ (4,017) | |
Weighted-average basic shares outstanding | 230,546 | 205,680 | |
Weighted-average diluted shares | 230,546 | 205,680 | |
Basic (loss) earnings per share | $ (0.03) | $ (0.02) | |
Diluted (loss) earnings per share | $ (0.03) | $ (0.02) | |
Weighted average common share equivalents | 6,369 | 17,082 |
Supplemental Financial Inform_5
Supplemental Financial Information (Disaggregation of Net Sales by Major Source) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | Jan. 01, 2022 | |
Total net sales | $ 50,200 | $ 14,897 | $ 14,897 |
Resales Of Third Party Products | |||
Total net sales | 45,585 | 11,358 | |
Sale of the Company's modular memory subsystems | |||
Total net sales | $ 4,615 | $ 3,539 |
Supplemental Financial Inform_6
Supplemental Financial Information (Major Customers and Products) (Details) - Customer Concentration Risk [Member] - customer | 3 Months Ended | 12 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | Jan. 01, 2022 | |
Sales Revenue, Resale of Products | Customer A, B and C | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 0.91% | 0.76% | |
Sales Revenue, Resale of Products | Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 0.10% | ||
Sales Revenue, Resale of Products | Customer B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 0.10% | ||
Sales Revenue, Resale of Products | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 0.53% | ||
Gross Receivables [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Number of Customers | 1 | 4 | |
Gross Receivables [Member] | Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 36.00% | ||
Gross Receivables [Member] | Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 26.00% | ||
Gross Receivables [Member] | Customer B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 16.00% | ||
Gross Receivables [Member] | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13.00% | ||
Gross Receivables [Member] | Customer D | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13.00% |
Credit Agreement (Details)
Credit Agreement (Details) - Silicon Valley Bank [Member] - USD ($) $ in Millions | Apr. 29, 2022 | Dec. 31, 2021 | Apr. 02, 2022 | Jan. 01, 2022 |
Line of Credit Facility | ||||
Maximum borrowing capacity | $ 5 | |||
Borrowing capacity as a percentage of eligible accounts receivable | 85.00% | |||
Interest rate (as a percent) | 5.50% | |||
Outstanding borrowings | $ 4.7 | $ 7 | ||
Availability remaining | $ 0.1 | 0 | ||
Line Of Credit Potential Available For Borrowing | $ 7 | |||
Subsequent Event | ||||
Line of Credit Facility | ||||
Borrowing capacity as a percentage of eligible accounts receivable | 85.00% | |||
Interest rate (as a percent) | 4.25% | |||
Line Of Credit Potential Available For Borrowing | $ 10 | |||
Prime Rate | ||||
Line of Credit Facility | ||||
Rate plus "prime rate" | 2.75% | |||
Prime Rate | Minimum [Member] | ||||
Line of Credit Facility | ||||
Rate plus "prime rate" | 2.25% | |||
Prime Rate | Subsequent Event | ||||
Line of Credit Facility | ||||
Rate plus "prime rate" | 0.75% | |||
Letter of Credit | ||||
Line of Credit Facility | ||||
Outstanding borrowings | $ 20.8 | $ 10.8 |
Debt (Schedule Of Long-Term Deb
Debt (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Jan. 01, 2022 |
Debt | ||
Notes Payable | $ 376 | $ 562 |
Less: current portion | $ (376) | $ (562) |
Leases - Lease Cost and Supplem
Leases - Lease Cost and Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Lease cost: | ||
Operating lease cost | $ 198 | $ 119 |
Operating cash flows from operating leases | 149 | $ 119 |
Operating leases | $ 555 |
Leases - Leases Supplemental Ba
Leases - Leases Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Jan. 01, 2022 |
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use assets | $ 2,279 | $ 1,891 |
Accrued expenses and other current liabilities | $ 352 | $ 318 |
Accrued expenses and other current liabilities - extensible list | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Operating lease liabilities | $ 1,994 | $ 1,593 |
Total operating lease liabilities | 2,346 | 1,911 |
Property and equipment, net | 1,129 | 989 |
Accrued expenses and other current liabilities | $ 24 | $ 24 |
Accrued expenses and other current liabilities - extensible list | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Other liabilities | $ 35 | $ 41 |
Other liabilities - extensible list | Other liabilities | Other liabilities |
Total finance lease liabilities | $ 59 | $ 65 |
Total finance lease liabilities - extensible list | Accrued expenses and other current liabilities, Other liabilities | Accrued expenses and other current liabilities, Other liabilities |
Finance Lease Assets [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Property and equipment, at cost | $ 116 | $ 116 |
Accumulated depreciation | (60) | (54) |
Property and equipment, net | $ 56 | $ 62 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term (Details) | Apr. 02, 2022 | Jan. 01, 2022 |
Leases | ||
Weighted Average Remaining Lease Term - Operating lease | 4 years 8 months 12 days | 4 years 9 months 18 days |
Weighted Average Remaining Lease Term - Finance lease | 2 years 8 months 12 days | 2 years 10 months 24 days |
Weighted Average Discount Rate - Operating lease | 5.50% | 5.50% |
Weighted Average Discount Rate - Finance lease | 5.20% | 5.20% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Jan. 01, 2022 |
Operating Leases | ||
2022 (remainder of the year) | $ 362 | |
2023 | 452 | |
2024 | 601 | |
2025 | 621 | |
2026 | 639 | |
2027 | 23 | |
Total lease payments | 2,698 | |
Less: imputed interest | (352) | |
Total operating lease liabilities | 2,346 | $ 1,911 |
Finance Leases | ||
2022 (remainder of the year) | 20 | |
2023 | 26 | |
2024 | 10 | |
2025 | 5 | |
2026 | 3 | |
Total lease payments | 64 | |
Less: imputed interest | (5) | |
Total finance lease liabilities | $ 59 | $ 65 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - $ / shares | Apr. 17, 2017 | Apr. 02, 2022 | Jan. 01, 2022 |
Serial Preferred Stock | |||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred stock, par value | $ 0.001 | $ 0.001 | |
Preferred stock, shares outstanding | 0 | 0 | |
Number of rights authorized for each outstanding share of stock | 1 | ||
Number of shares issued when right is exercised | 0.001 | ||
Purchase price per share | $ 6.56 | ||
Number of days rights are to be distributed | 10 days | ||
Minimum beneficial ownership percentage for rights to be distributed | 15.00% | ||
Series A Preferred Stock | |||
Serial Preferred Stock | |||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | |
Preferred stock, par value | $ 0.001 | $ 0.001 | |
Preferred stock, shares outstanding | 0 | 0 | |
Stock-Based Compensation | |||
Shares available for issuance | 1,000,000 |
Stockholders' Equity (Common St
Stockholders' Equity (Common Stock Purchase Agreement) (Details) - USD ($) $ in Thousands | Sep. 28, 2021 | Apr. 02, 2022 | Apr. 03, 2021 | Jan. 01, 2022 |
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Net purchase price | $ 1,767 | $ 9,361 | ||
Second First 2021 Lincoln Park Purchase Agreement | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Commitment shares | 218,750 | |||
Purchase agreement term | 36 months | |||
Threshold percentage of common stock to be sold | 9.99% | |||
Period after purchase agreement not to enter into variable rate transaction | 36 months | |||
Terminate agreement cost | $ 0 | |||
Repurchased shares | 300,000 | 1,550,000 | ||
Repurchase of common stock price | $ 1,800 | $ 10,900 | ||
Stock issued common stock | 3,387 | 20,809 | ||
Maximum [Member] | Second First 2021 Lincoln Park Purchase Agreement | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Aggregate amount | $ 75,000 | |||
Additional commitment shares | 143,750 | |||
Threshold number of shares of common stock to be issued | 750,000 | |||
Threshold value of shares of common stock to be issued under single purchase | $ 4,000 | |||
Threshold percentage of number of shares issued under regular purchase to purchase additional amount of common stock | 300.00% | |||
Threshold percentage of number of shares of common stock to purchase additional amount of common stock | 30.00% |
Stock-Based Awards (Narrative)
Stock-Based Awards (Narrative) (Details) | 3 Months Ended |
Apr. 02, 2022shares | |
Amended 2006 Plan | |
Stock-Based Compensation | |
Shares available for issuance | 487,512 |
Rate of vesting of options granted | 25.00% |
Vesting period of options granted, in years | 4 years |
Expiration of vested options, period from date of grant | 10 years |
Vest semi-annually | Restricted Stock [Member] | 2006 Plan | |
Stock-Based Compensation | |
Vesting period of options granted, in years | 4 years |
Stock-Based Awards (Schedule Of
Stock-Based Awards (Schedule Of Stock Option Activity) (Details) shares in Thousands | 3 Months Ended |
Apr. 02, 2022$ / sharesshares | |
Number of Shares | |
Outstanding, Beginning Balance | shares | 5,899 |
Exercised | shares | (197) |
Expired or forfeited | shares | (372) |
Outstanding, Ending Balance | shares | 5,330 |
Weighted-Average Grant - Date Fair Value (Per Share) | |
Outstanding, Beginning Balance | $ / shares | $ 0.88 |
Exercised | $ / shares | 0.70 |
Expired or Forfeited | $ / shares | 0.76 |
Outstanding, Ending Balance | $ / shares | $ 0.90 |
Stock-Based Awards (Schedule _2
Stock-Based Awards (Schedule of Restricted Stock Awards) (Details) shares in Thousands | 3 Months Ended |
Apr. 02, 2022$ / sharesshares | |
Number of Shares | |
Outstanding, Beginning Balance | shares | 2,228 |
Granted | shares | 1,446 |
Vested | shares | (533) |
Forfeited | shares | (2) |
Outstanding, Ending Balance | shares | 3,139 |
Weighted-Average Grant - Date Fair Value (Per Share) | |
Outstanding, Beginning Balance | $ / shares | $ 1.36 |
Granted | $ / shares | 3.65 |
Vested | $ / shares | 0.76 |
Forfeited | $ / shares | 0.54 |
Outstanding, Ending Balance | $ / shares | $ 2.52 |
Stock-Based Awards (Schedule _3
Stock-Based Awards (Schedule of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-Based Compensation, Total | $ 682 | $ 338 |
Unearned stock-based compensation | $ 8,000 | |
Expects to recognize over a weighted-average period | 3 years 4 months 24 days | |
Cost Of Sales [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-Based Compensation, Total | $ 3 | 3 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-Based Compensation, Total | 176 | 110 |
Selling, General and Administrative Expenses [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-Based Compensation, Total | $ 503 | $ 225 |