Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1 THE COMPANY AND BASIS OF PRESENTATION QuickLogic Corporation ("QuickLogic" or, the "Company"), was founded in 1988 1999. 2021 QuickLogic’s Fiscal Year ends on the Sunday closest to December 31. 2022 , 2021 , and 2020 January 1, 2023 , January 2, 2022 and January 3, 2021 , respectively. Supply Chain Disruptions Global, supply chain constraints have not none January 1, 2023 not twelve may may The conflict between Russia and Ukraine has negatively impacted the global economy and led to various economic sanctions being imposed by the U.S., United Kingdom, European Union and other countries against Russia. While the impacts of the conflict have not not not may 2023 On January 20, 2023, not 15 Liquidity The Company has financed its operations and capital investments through the sale of common stock, finance and operating leases, a revolving line of credit and cash flows from operations. As of January 1, 2023 The Company's principal contractual commitments include purchase obligations, re-payments of draw downs from the revolving line of credit, and payments under operating and finance leases. Purchase obligations are largely comprised of open purchase order commitments to suppliers. The Company's risk associated with the purchase obligations is limited to the termination liability provisions within those contracts, and as such, the Company does not risk. See Note 6 Heritage Bank has a first 6 On September 14, 2022 February 9, 2022, September 14, 2022 February 9, 2022 On September 22, 2021, September 30, 2021, $45 thousand in issuance costs. See Note 10 The Company currently uses its cash to fund its working capital, to accelerate the development of next generation products and for general corporate purposes. Based on past performance and current expectations, the Company believes that its existing cash and cash equivalents, together with $3.2 million and $1.5 million gross cash proceeds from the September 14, 2022 February 9, 2022 twelve Various factors affect the Company’s liquidity, including, among others: the level of revenue and gross profit as a result of the cyclicality of the semiconductor industry; the conversion of design opportunities into revenue; market acceptance of existing and new products including solutions based on its, ArcticLink® and PolarPro® platforms, ArcticPro™, EOS S3 Over the longer term, the Company anticipates that sales generated from its new product offerings, existing cash and cash equivalents, together with financial resources from its Revolving Facility with Heritage Bank, assuming renewal of the Revolving Facility or the Company entering into a new debt agreement with an alternative lender prior to the expiration of the revolving line of credit in December 2024, Principles of Consolidation The consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles, in the United States of America or ("US GAAP"), and the applicable rules and regulations of the Securities and Exchange Commission, ("SEC"), and include the accounts of QuickLogic and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. Critical Accounting Policies and Use of Estimates The preparation of these consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities and the reported amounts of revenue and expenses during the period. Although these estimates are based on the Company’s knowledge of current events and actions it may may in regards to revenue recognition; and the valuation of inventories including identification of excess quantities, market value and obsolescence. The methods, estimates and judgments we use in applying our most critical accountin may Licensed Intellectual Property The Company licenses intellectual property that is incorporated into its products. Costs incurred under license agreements prior to the establishment of technological feasibility are included in research and development expense as incurred. Costs incurred for intellectual property once technological feasibility has been established and that can be used in multiple products are capitalized as a long-term asset. Once a product incorporating licensed intellectual property has production sales, the amount is amortized over the estimated useful life of the asset, generally up to five Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification ("ASC") Topic No. 606 The Company earns revenue from principal activities by delivering standard hardware products, eFPGA IP products, and software as a service to customers and other revenue. The Company applies a five • Identification of the contract, or contracts, with a customer, • Identification of the performance obligations in the contract, • Determination of the transaction price. T may • Allocation of the transaction price to the performance obligations in the contract, and • Recognition of revenue when, or as, we satisfy a performance obligation. As part of its assessment of each contract, the Company evaluates certain factors including the customer’s ability to pay, or credit risk. The following is a description the Company's revenue recognition policy by principal activity: Hardware Product Revenue The Company generates revenue by supplying standard hardware products, which must be programmed before they can be used in an application. Standard hardware products may third not one not eFPGA IP Revenue eFPGA IP revenue is comprised primarily of eFPGA intellectual property revenue, eFPGA-related professional services revenue, and eFPGA-related support and maintenance. The Company recognizes eFPGA intellectual property revenue from licensing its eFPGA intellectual property to customers and recognizes eFPGA-related professional services revenue from the fees associated with custom development and integration of the Company's technology solutions into hardware products. The Company recognizes eFPGA revenue from support and maintenance services for post-implementation customer support ratably over the service term. Renewals of support and maintenance contracts create new performance obligations which the Company recognizes as revenue ratably over the service term. e FPGA IP contractual arrangements often include promises to transfer intellectual property licenses, to customize hardware products, and to provide professional services and technical support services. T may not considered individual performance obligations. not Judgment is required to determine the SSP for each performance obligation. The Company rarely sell eFPGA IP on a standalone basis. Generally, the Company provides eFPGA-related professional services to customers based on unique contractual arrangement terms and conditions, with unique deliverables, often in conjunction with other performance obligations. not may may one may overall pricing objectives, taking into consideration market conditions and other factors, including the value of its contracts, type of the customer, customer tier, type of the technology used, customer demographics, geographic locations, and other factors. eparately if they are distinct. The Company allocates the transaction price to the separate performance obligations based on their relative SSP. The Company also provides eFPGA-related professional services on a time-and-material basis. The Company recognizes revenue on contracts with a customer with a single performance obligation to transfer eFPGA intellectual property when the Company transfers control to the customer, which is generally upon product delivery to the customer assuming all other criteria for revenue recognition have been met. Generally, the Company satisfies contractual performance obligations over time. When the Company satisfies performance obligations over time, it recognizes revenue by applying an over-time methodology that provides a faithful depiction of the transfer of the contractual arrangement's deliverables to the customer. These over-time methodologies may • Model measured using the input method such as units of labor, • Model measured using the input method reflecting a generally consistent effort • Model measured using the output method such as the specific deliverables produced, • Model measured using the input method such as time and material for professional engineering services provided. Due to the nature of the work performed under contractual arrangements, the estimation of the over-time model is complex and involves significant judgment. In the case of the input methods, the key factors reviewed by management to estimate costs to complete each contract is the estimated labor days-effort necessary to complete the project, budgeted hours, hourly cost to the Company, profit margins, and engineering hours at cut-off when projects extend beyond a reporting period. In the case of the output method, key factors reviewed by the Company are the specific deliverables specified in the contracts with customers. The Company has methods and controls in place for tracking labor-days incurred in completing customization and other professional services as well as quantifying changes in estimates. In the Fiscal Year ended January 2, 2022, not This deferred revenue was recognized to revenue during the year ended January 1, 2023. 8 SaaS & Other Revenue SaaS & Other revenue is comprised primarily of software as a s ervice ("SaaS") revenue, software-related professional services revenue, and royalties from licensing the Company's technology. SaaS revenue is generated when the Company licenses its software to customers and allows customers to access the software over a short-term subscription basis. The Company grants the customer the right to access and use software at the outset of the arrangement and throughout the entire term of the arrangement. The Company recognizes revenue from software-related professional services as services are provided to the customer. The Company recognizes royalty revenue on the later of (i) the subsequent sale or usage, or (ii) satisfaction of a performance obligation to which some or all of the sales-based royalty has been allocated. Practical Expedients, Elections, and Exemptions • Taxes collected from customers and remitted to government authorities and that are related to the sales of our products are excluded from revenues. • Sales commissions are expensed when incurred because the amortization period would have been one • The Company does not one Contract Balances Due to the terms in contractual agreements with customers, the timing of revenue recognition may The Company records a contract asset when revenue is recognized prior to invoicing if the Company does not not not not The Company had contract asset s of approximately $2.0 million and $0.3 million and contract liabilities (reflected as deferred revenue) of $0 and $0.3 million on the consolidated balance sheets at January 1, 2023 January 2, 2022, Assets Recognized from Costs to Obtain a Contract with a Customer The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one none 606 January 1, 2023 January 2, 2022 no January 1, 2023, January 2, 2022. Hardware Product Sales Return Allowance The Company records an allowance for hardware product sales returns. The allowance for sales returns is based on a historical returns analysis performed on a quarterly basis. Amounts recorded for hardware product sales returns were a $13 thousand sales return reversal, and $30 thousand for the years ended January 1, 2023 January 2, 2022 January 3, 2021 on the Company's consolidated statements of operations. Cost of Revenues The Company records costs of revenue associated with hardware product revenues, eFPGA IP revenue and SaaS revenue. Hardware product costs include the cost of materials, contract manufacturing fees, shipping costs, and quality assurance. Hardware product costs also includes indirect costs such as warranty, excess and obsolete inventory charges, general overhead costs, depreciation and amortization of certain capitalized software. eFPGA IP and SaaS costs includes costs related to services under contractual agreements over the term of their respective agreements. These costs are primarily comprised of employee salary and benefits and other employee-related costs to perform work on revenue-generating contracts with customers, software tool utilization costs and contract engineering costs. Valuation of Inventories Hardware product inventories are stated at the lower of standard cost or net realizable value. Standard cost approximates actual cost on a first first may The Company's hardware products have historically had an unusually long product life cycle and obsolescence has not may |