QuickLogic (QUIK) 10-Q 17 May 23 2023 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Apr. 02, 2023	May 12, 2023
Document Information [Line Items]
Entity Central Index Key	0000882508
Entity Registrant Name	QUICKLOGIC Corp
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 02, 2023
Document Transition Report	false
Entity File Number	000-22671
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0188504
Entity Address, Address Line One	2220 Lundy Avenue
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95131-1816
City Area Code	408
Local Phone Number	990-4000
Title of 12(b) Security	Common Stock, par value $.001 per share
Trading Symbol	QUIK
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,689,509

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Current assets:
Cash, cash equivalents and restricted cash	$ 20,902	$ 19,201
Accounts receivable, net of allowance for doubtful accounts of $8 and $18, as of April 2, 2023 and January 1, 2023, respectively	2,090	2,689
Contract assets	2,328	1,987
Inventories	2,497	2,493
Prepaid expenses and other current assets	2,064	1,570
Total current assets	29,881	27,940
Property and equipment, net	442	465
Capitalized internal-use software, net	1,576	1,514
Total right-of-use assets	1,592	1,397
Intangible assets, net	618	645
Non-marketable equity investment	300	300
Goodwill	185	185
Other assets	142	140
TOTAL ASSETS	34,736	32,586
Current liabilities:
Revolving line of credit	15,000	15,000
Trade payables	2,265	2,391
Accrued liabilities	1,706	1,509
Deferred revenue	299	272
Lease liabilities, current	1,005	850
Total current liabilities	20,275	20,022
Long-term liabilities:
Lease liabilities, non-current	596	544
Other liabilities, non-current	190	125
Total liabilities	21,061	20,691
Commitments and contingencies (see Note 11)
Stockholders' equity:
Preferred stock, $0.001 par value; 10,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $0.001 par value; 200,000 authorized; 13,686 and 13,202 shares issued and outstanding as of April 2, 2023 and January 1, 2023, respectively	14	13
Additional paid-in capital	320,181	317,174
Accumulated deficit	(306,520)	(305,292)
Total stockholders' equity	13,675	11,895
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 34,736	$ 32,586

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Accounts Receivable, Allowance for Credit Loss	$ 8	$ 18
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	10,000	10,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	200,000	200,000
Common stock, shares issued (in shares)	13,686	13,202
Common stock, shares outstanding (in shares)	13,686	13,202

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Apr. 02, 2023	Apr. 03, 2022
Revenue		$ 4,133	$ 4,096
Cost of revenue		1,743	1,635
Gross profit		2,390	2,461
Operating expenses:
Research and development		1,629	1,333
Selling, general and administrative		1,861	2,137
Total operating expenses		3,490	3,470
Loss from operations		(1,100)	(1,009)
Interest expense		(58)	(33)
Interest income and other expense, net		(63)	(123)
Loss before income taxes		(1,221)	(1,165)
Provision for (benefit from) income tax		7	(1)
Net loss		$ (1,228)	$ (1,164)
Net loss per share:
Basic and diluted (in dollars per share)	[1]	$ (0.09)	$ (0.10)
Weighted average shares outstanding:
Basic and diluted (in shares)		13,215	12,126
[1]Net loss equals comprehensive loss for all periods presented.

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Cash flows from operating activities:
Net loss	$ (1,228)	$ (1,164)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	197	162
Stock-based compensation	715	383
Write-down of inventories and reclassifications	171	(26)
Bad debt recovery	(10)	0
Changes in operating assets and liabilities:
Accounts receivable	609	(393)
Contract assets	(341)	106
Inventories	(175)	(188)
Other assets	(495)	65
Trade payables	7	467
Accrued liabilities	196	298
Deferred revenue	27	(388)
Other long-term liabilities	65	(22)
Net cash used in operating activities	(262)	(700)
Cash flows from investing activities:
Capital expenditures for property and equipment	(3)	(10)
Capitalized internal-use software	(185)	(139)
Net cash used in investing activities	(188)	(149)
Cash flows from financing activities:
Payment of finance lease obligations	(142)	(98)
Proceeds from line of credit	15,000	15,000
Repayment of line of credit	(15,000)	(15,000)
Proceeds from issuance of common stock	2,313	1,482
Stock issuance cost	(20)	0
Net cash provided by financing activities	2,151	1,384
Net increase in cash, cash equivalents and restricted cash	1,701	535
Cash, cash equivalents and restricted cash at beginning of period	19,201	19,605
Cash, cash equivalents and restricted cash at end of period	20,902	20,140
Supplemental disclosures of cash flow information:
Interest paid	56	24
Income taxes paid	$ 2	$ 10

Unaudited Condensed Consolida_5

Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Jan. 02, 2022	11,863
Balance at Jan. 02, 2022	$ 12	$ 310,222	$ (301,025)	$ 9,209
Issuance of common stock under public stock offering, net of stock issuance cost (in shares)	310
Issuance of common stock under public stock offering, net of stock issuance cost	$ 0	1,482	0	1,482
Common stock issued under stock plans and employee stock purchase plans (in shares)	189
Common stock issued under stock plans and employee stock purchase plans	$ 0	383	0	383
Net loss	$ 0	0	(1,164)	(1,164)
Balance (in shares) at Apr. 03, 2022	12,362
Balance at Apr. 03, 2022	$ 12	312,087	(302,189)	9,910
Balance (in shares) at Jan. 01, 2023	13,202
Balance at Jan. 01, 2023	$ 13	317,174	(305,292)	11,895
Issuance of common stock under public stock offering, net of stock issuance cost (in shares)	450
Issuance of common stock under public stock offering, net of stock issuance cost	$ 1	2,292	0	2,293
Common stock issued under stock plans and employee stock purchase plans (in shares)	34
Common stock issued under stock plans and employee stock purchase plans	$ 0	715	0	715
Net loss			(1,228)	(1,228)
Balance (in shares) at Apr. 02, 2023	13,686
Balance at Apr. 02, 2023	$ 14	$ 320,181	$ (306,520)	$ 13,675

Note 1 - The Company and Basis

Note 1 - The Company and Basis of Presentation	3 Months Ended
	Apr. 02, 2023
Notes to Financial Statements
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]	Note 1 QuickLogic Corporation ("QuickLogic" or, the "Company"), was founded in 1988 1999. 2021, The accompanying interim condensed consolidated financial statements are unaudited. In the opinion of the Company’s management, these statements have been prepared in accordance with the United States generally accepted accounting principles (“U.S. GAAP”), and include all adjustments, consisting only of normal recurring adjustments, necessary to provide a fair statement of results for the interim periods presented. The Company recommends that these interim unaudited condensed consolidated financial statements be read in conjunction with the Company's Form 10 January 1, 2023, March 28, 2023. three April 2, 2023 not may QuickLogic's fiscal year ends on the Sunday closest to December 31 first 2023 2022 April 2, 2023 April 3, 2022 2023 On January 20, 2023, The Company continued its business operations during this incident and successfully restored all of its critical operational data. The Company has also taken steps to further secure its IT systems. Based on the ongoing investigation and information currently known at this time, the Company believes the incident has not 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 with Heritage Bank (the "Revolving Facility"), and cash flows from operations. As of April 2, 2023 three April 2, 2023 The Company was in compliance with all the Heritage Bank Revolving Facility loan covenants as of April 2, 2023 April 2, 2023 8.5%. On March 21, 2023, See Note 7 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 as of April 2, 2023, 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 unaudited condensed consolidated financial statements include the accounts of QuickLogic and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. Foreign Currency The functional currency of the Company's non-U.S. operations is the U.S. dollar. Accordingly, all monetary assets and liabilities of these foreign operations are translated into U.S. dollars at current period-end exchange rates and non-monetary assets and related elements of expense are translated using historical exchange rates. Income and expense elements are translated to U.S. dollars using the average exchange rates in effect during the period. Gains and losses from the foreign currency transactions of these subsidiaries are recorded as interest income and other expense, net in the unaudited condensed consolidated statements of operations, and are insignificant for all periods presented. Uses of Estimates The preparation of these unaudited condensed 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 The methods, estimates and judgments we use in applying our most critical accounting policies have a significant impact on the results we report in our consolidated financial statements. The SEC has defined critical accounting policies as those that are most important to the portrayal of our financial condition and results of operations and require us to make our most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. Based on this definition, our critical accounting policies include revenue recognition and determination of the standalone selling price for certain distinct performance obligations (such as for IP licensing and professional services contracts) and valuation of inventories. We believe that we apply judgments and estimates in a consistent manner and that such consistent application results in consolidated financial statements and accompanying notes that fairly represent all periods presented. However, any factual errors or errors in these judgments and estimates may 10 March 28, 2023. Concentration of Risk The Company's accounts receivable is denominated in U.S. dollars and are derived primarily from sales to customers located in North America, Asia Pacific, and Europe. The Company performs ongoing credit evaluations of its customers and generally does not 10, As of April 2, 2023 January 1, 2023, first December 31, 2024. April 2, 2023, one For instance, adverse developments affecting financial institutions, companies in the financial services industry or the financial services industry generally, such as actual events or concerns involving liquidity, defaults or non-performance, could adversely impact the stability of Heritage Bank, leading to additional financial risks for the Company. Any material decline in available funding or our ability to access our cash, cash equivalents, and liquidity resources, inclusive of those at Heritage Bank, could adversely impact our ability to meet our operating expenses, financial and contractual obligations, or result in breaches of our contractual obligations. Any of these impacts could have material adverse impacts on our operations and liquidity.

Note 2 - Significant Accounting

Note 2 - Significant Accounting Policies	3 Months Ended
	Apr. 02, 2023
Notes to Financial Statements
Significant Accounting Policies [Text Block]	Note 2 During the three April 2, 2023 no 10 January 1, 2023 10 January 1, 2023, March 28, 2023. Recent Accounting Standards Adopted In August 2020, No. 2020 06, Debt Debt with Conversion and Other Options (Subtopic 470 20 Contracts in Entity s Own Equity (Subtopic 815 40 No. 2020 06 January 1, 2024. no December 15, 2020, No. 2020 06 January 2, 2023 no Recent Accounting Standards Not In June 2022, No. 2022 03, Fair Value Measurement (Topic 820 Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions December 15, 2023, not not

Note 3 - Net Loss Per Share

Note 3 - Net Loss Per Share	3 Months Ended
	Apr. 02, 2023
Notes to Financial Statements
Earnings Per Share [Text Block]	Note 3 Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share was computed using the weighted average number of common shares outstanding during the period plus potentially dilutive common shares outstanding during the period under the treasury stock method. In computing diluted net loss per share, the weighted average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options and warrants. For the three April 2, 2023 April 3, 2022 , 740 thousand and 578 thousand shares of common stoc 2009 not May 29, 2018, not May 29, 2023

Note 4 - Balance Sheet Componen

Note 4 - Balance Sheet Components	3 Months Ended
	Apr. 02, 2023
Notes to Financial Statements
Supplemental Balance Sheet Disclosures [Text Block]	Note 4 The following table provides details relating to certain balance sheet line items as of April 2, 2023 January 1, 2023 April 2, January 1, 2023 2023 Accounts receivable: Trade account receivables $ 2,098 $ 2,707 Less: Allowance for doubtful accounts (8 ) (18 ) 2,090 2,689 Inventories: Work-in-process $ 1,858 $ 1,826 Finished goods 639 667 $ 2,497 $ 2,493 Other current assets: Prepaid taxes, royalties, and other prepaid expenses $ 1,847 $ 1,305 Other 217 265 $ 2,064 $ 1,570 Property and equipment, net: Equipment $ 10,161 $ 10,133 Software 1,802 1,803 Furniture and fixtures 65 65 Leasehold improvements 466 466 12,494 12,467 Less: Accumulated depreciation and amortization (12,052 ) (12,002 ) $ 442 $ 465 Capitalized internal-use software, net: Capitalized internal-use software $ 2,555 $ 2,370 Less: Accumulated amortization (979 ) (856 ) $ 1,576 $ 1,514 Accrued liabilities: Accrued compensation $ 981 $ 865 Accrued employee benefits 114 40 Accrued payroll tax 54 57 Other 557 547 $ 1,706 $ 1,509

Note 5 - Debt Obligations

Note 5 - Debt Obligations	3 Months Ended
	Apr. 02, 2023
Notes to Financial Statements
Debt Disclosure [Text Block]	Note 5 Revolving Line of Credit As of April 2, 2023 January 1, 2023 8.5% a first $33 tho e three April 2, 2023 a nd April 3, 2022

Note 6 - Leases

Note 6 - Leases	3 Months Ended
	Apr. 02, 2023
Notes to Financial Statements
Lessee, Operating and Finance Leases [Text Block]	Note 6 The Company's principal research and development and corporate facilities are leased office buildings located in the United States. These lease facilities are classified as operating leases and have lease terms of one five two three for each of t three April 2, 2023 and April 3, 2022 Right-of-use assets were approximately $1.6 million and $1.4 million as of April 2, 2023 January 1, 2023 April 2, 2023 January 1, 2023 The following table provides the expenses related to operating and finance leases (in thousands): Three Months Ended April 2, 2023 April 3, 2022 Operating lease costs: Fixed $ 100 $ 100 Short term 4 6 Total $ 104 $ 106 Finance lease costs: Amortization of ROU asset $ 160 $ 109 Interest 22 7 Total $ 182 $ 116 Right-of-use assets obtained in exchange for new finance and operating lease liabilities represent the new operating and finance leases entered into during the three April 2, 2023 April 3, 2022 $445 thousand The following table provides the details of supplemental cash flow information (in thousands): Three Months Ended April 2, 2023 April 3, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 103 $ 100 Operating cash flows used for finance leases 22 7 Financing cash flows used for finance leases 142 98 Total $ 267 $ 205 Non-cash ROU assets included in the operating cash flows for the three April 2, 2023 April 3, 2022 The following table provides the details of right-of-use assets and lease liabilities as of April 2, 2023 January 1, 2023 April 2, 2023 January 1, 2023 Right-of-use assets: Operating leases $ 374 $ 464 Finance leases 1,218 933 Total right-of-use assets $ 1,592 $ 1,397 Lease liabilities: Operating leases $ 411 $ 507 Finance leases 1,190 887 Total lease liabilities $ 1,601 $ 1,394 The following table provided the details of future lease payments for operating and finance leases as of April 2, 2023 Operating Leases Finance Leases 2023 (remaining period) $ 319 $ 494 2024 106 624 2025 — 169 Total lease payments 425 1,287 Less: Interest (14 ) (97 ) Present value of lease liabilities $ 411 $ 1,190 The following table provides the details of lease terms and discount rates as of April 2, 2023 January 1, 2023 April 2, 2023 January 1, 2023 Right-of-use assets: Weighted-average remaining lease term (years) Operating leases 1.00 1.25 Finance leases 2.29 1.91 Weighted-average discount rates: Operating leases 6.00 % 6.00 % Finance leases 6.67 % 5.95 %

Note 7 - Capital Stock

Note 7 - Capital Stock	3 Months Ended
	Apr. 02, 2023
Notes to Financial Statements
Disclosure of Employee Stock Ownership Plans [Text Block]	Note 7 Capital Stock Issuance of Common Stock On March 21, 2023, 3 No. 333 266942 On August 17, 2022, 3 No. 333 266942 may one August 26, 2022.

Note 8 - Stock-based Compensati

Note 8 - Stock-based Compensation	3 Months Ended
	Apr. 02, 2023
Notes to Financial Statements
Share-Based Payment Arrangement [Text Block]	Note 8 Stock-based compensation expense included in the Company's consolidated financial statements for the three April 2, 2023 April 3, 2022 Three Months Ended April 2, 2023 April 3, 2022 Cost of revenue $ 78 $ 56 Research and development 184 85 Selling, general and administrative 453 242 Total $ 715 $ 383 The Company capitalized stock-based compensation amounts were $18 thousand and $0 for the three April 2, 2023 April 3, 2022 Stock-Based Compensation Award Activity The following table summarizes the activity in the shares available for grant under the 2019 three April 2, 2023 Shares Available for Grants Balance at January 1, 2023 960 Authorized — RSUs granted (17 ) RSUs forfeited or expired 9 Balance at April 2, 2023 952 Stock Options The following table summarizes stock options outstanding and stock option activity under the 2009 2019 three April 2, 2023 Weighted Weighted Average Average Aggregate Number of Exercise Remaining Intrinsic Shares Price Term Value (in thousands) (in years) (in thousands) Balance outstanding at January 1, 2023 75 $ 24.50 2.80 $ — Balance outstanding, exercisable, and vested at April 2, 2023 75 $ 24.50 2.55 $ — No stock options were granted, exercised, forfeited, or expired during the three April 2, 2023 April 3, 2022 Total stock-based compensation related to stock options was $0 during the three April 2, 2023 April 3, 2022 Restricted Stock Units The Company grants restricted stock units (“RSUs”) and performance restricted stock units ("PRSUs") to employees and directors with various vesting terms. RSUs entitle the holder to receive, at no one approximately and for three April 2, 2023 April 3, 2022, As of April 2, 2023 April 3, 2022 , there was approximately and , respectively, in unrecognized compensation expense related to RSUs. The remaining unrecognized stock-based compensation expense as of April 2, 2023 is expected to be recorded over a weighted average period of years. A summary of activity for the Company's RSUs and PRSUs for the three April 2, 2023 RSUs & PRSUs Outstanding Weighted Average Number of Grant Date Shares Fair Value (in thousands) Nonvested at January 1, 2023 630 $ 6.05 Granted 17 6.06 Vested and released (34 ) 5.79 Forfeited (9 ) 7.25 Nonvested at April 2, 2023 604 $ 6.05 Employee Stock Purchase Plan Total stock-based compensation related to the Company's Employee Stock Purchase Plan was approximately $30 thousand and $23 thousand for the three April 2, 2023 , and April 3, 2022,

Note 9 - Income Taxes

Note 9 - Income Taxes	3 Months Ended
	Apr. 02, 2023
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 9 The Company recorded a net income tax expense of $7 thousand for the three April 2, 2023 three April 3, 2022 three March 31, 2022 2021, not not April 2, 2023. April 2, 2023.

Note 10 - Information Concernin

Note 10 - Information Concerning Product Lines, Geographic Information, and Revenue Concentration	3 Months Ended
	Apr. 02, 2023
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	Note 10 The Company identifies its business segment based on business activities, management responsibility and geographic location. For all periods presented, the Company operated in a single reportable business segment. The following is a breakdown of revenue by product family (in thousands): Three Months Ended April 2, 2023 April 3, 2022 New products $ 3,055 $ 3,450 Mature products 1,078 646 Total revenue $ 4,133 $ 4,096 New products revenue consists of revenues from the sale of hardware products manufactured on 180 180 The following is a breakdown of new product revenue (in thousands): Three Months Ended April 2, 2023 April 3, 2022 Hardware products $ 162 $ 1,835 eFPGA IP and professional services 2,810 1,581 SaaS & Other 83 34 New products revenue $ 3,055 $ 3,450 eFPGA IP revenue for the three April 3, 2023 three April 3, 2022 Contract assets related to professional services revenue were $2.3 million and $0.1 million for the three April 2, 2023 April 3, 2022, three April 2, 2023 April 3, 2022, The tables below present disaggregated revenues by geographical location. Revenue attributed to geographic location is based on the destination of the product or service. Substantially all revenues in North America were in the United States. Revenue in the United States was $3.3 million, or 80% of total revenue, for the three April 2, 2023 three April 3, 2022 The following is a breakdown of revenue by destination (in thousands): Three Months Ended April 2, 2023 April 3, 2022 Asia Pacific $ 713 $ 1,491 North America 3,318 2,433 Europe 102 172 Total revenue $ 4,133 $ 4,096 The following distributors and customers accounted for 10% or more of the Company's revenue for the periods presented: Three Months Ended April 2, April 3, 2023 2022 Distributor "A" 16 % 11 % Distributor "C" * 10 % Distributor "E" * 30 % Customer "A" 54 % * Customer "N" * 17 % Customer "O" * 27 % Customer "P" * 23 % * Represents less than 10% The following distributors and customers accounted for 10% April 2, January 1, 2023 2023 Distributor "A" 18 % 14 % Customer "C" 11 % 22 % Customer "F" 56 % 44 %

Note 11 - Commitments and Conti

Note 11 - Commitments and Contingencies	3 Months Ended
	Apr. 02, 2023
Notes to Financial Statements
Commitments Disclosure [Text Block]	Note 11 Commitments 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 and to subcontractors under professional services agreements. Our risk associated with the purchase obligations under professional services agreements is limited to the termination liability provisions within those contracts, and as such, we do not Certain wafer manufacturers require the Company to forecast wafer starts several months in advance. The Company is committed to take delivery of and to pay for a portion of forecasted wafer volume. As of April 2, 2023 no Purchase Obligations Purchase obligations represent contractual agreements to purchase goods or services entered into in the ordinary course of business. Purchase obligations are legally binding and amongst other things specify a minimum or a range of quantities, pricing and approximate timing of the transaction. Purchase obligations include amounts that are recorded on the Company's consolidated balance sheets as well as amounts that are not April 2, 2023 twelve Contingencies Contingent commitments are not not April 2, 2023 $3.8 million twelve $8.7 million d two three Litigation From time to time, the Company may not third not may

Note 12 - Subsequent Events

Note 12 - Subsequent Events	3 Months Ended
	Apr. 02, 2023
Notes to Financial Statements
Subsequent Events [Text Block]	Note 12 On April 28, 2023, not April 28, 2024,

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 02, 2023
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Standards Adopted In August 2020, No. 2020 06, Debt Debt with Conversion and Other Options (Subtopic 470 20 Contracts in Entity s Own Equity (Subtopic 815 40 No. 2020 06 January 1, 2024. no December 15, 2020, No. 2020 06 January 2, 2023 no Recent Accounting Standards Not In June 2022, No. 2022 03, Fair Value Measurement (Topic 820 Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions December 15, 2023, not not

Note 4 - Balance Sheet Compon_2

Note 4 - Balance Sheet Components (Tables)	3 Months Ended
	Apr. 02, 2023
Notes Tables
Condensed Balance Sheet [Table Text Block]	April 2, January 1, 2023 2023 Accounts receivable: Trade account receivables $ 2,098 $ 2,707 Less: Allowance for doubtful accounts (8 ) (18 ) 2,090 2,689 Inventories: Work-in-process $ 1,858 $ 1,826 Finished goods 639 667 $ 2,497 $ 2,493 Other current assets: Prepaid taxes, royalties, and other prepaid expenses $ 1,847 $ 1,305 Other 217 265 $ 2,064 $ 1,570 Property and equipment, net: Equipment $ 10,161 $ 10,133 Software 1,802 1,803 Furniture and fixtures 65 65 Leasehold improvements 466 466 12,494 12,467 Less: Accumulated depreciation and amortization (12,052 ) (12,002 ) $ 442 $ 465 Capitalized internal-use software, net: Capitalized internal-use software $ 2,555 $ 2,370 Less: Accumulated amortization (979 ) (856 ) $ 1,576 $ 1,514 Accrued liabilities: Accrued compensation $ 981 $ 865 Accrued employee benefits 114 40 Accrued payroll tax 54 57 Other 557 547 $ 1,706 $ 1,509

Note 6 - Leases (Tables)

Note 6 - Leases (Tables)	3 Months Ended
	Apr. 02, 2023
Notes Tables
Lease, Cost [Table Text Block]	Three Months Ended April 2, 2023 April 3, 2022 Operating lease costs: Fixed $ 100 $ 100 Short term 4 6 Total $ 104 $ 106 Finance lease costs: Amortization of ROU asset $ 160 $ 109 Interest 22 7 Total $ 182 $ 116
Lessee, Leases, Supplemental Cash Flow Information [Table Text Block]	Three Months Ended April 2, 2023 April 3, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 103 $ 100 Operating cash flows used for finance leases 22 7 Financing cash flows used for finance leases 142 98 Total $ 267 $ 205
Schedule of Right of Use Assets and Lease Liabilities [Table Text Block]	April 2, 2023 January 1, 2023 Right-of-use assets: Operating leases $ 374 $ 464 Finance leases 1,218 933 Total right-of-use assets $ 1,592 $ 1,397 Lease liabilities: Operating leases $ 411 $ 507 Finance leases 1,190 887 Total lease liabilities $ 1,601 $ 1,394
Schedule of Future Lease Payments for Leases [Table Text Block]	Operating Leases Finance Leases 2023 (remaining period) $ 319 $ 494 2024 106 624 2025 — 169 Total lease payments 425 1,287 Less: Interest (14 ) (97 ) Present value of lease liabilities $ 411 $ 1,190
Schedule of Lease Terms and Weighted Average Discount Rate [Table Text Block]	April 2, 2023 January 1, 2023 Right-of-use assets: Weighted-average remaining lease term (years) Operating leases 1.00 1.25 Finance leases 2.29 1.91 Weighted-average discount rates: Operating leases 6.00 % 6.00 % Finance leases 6.67 % 5.95 %

Note 8 - Stock-based Compensa_2

Note 8 - Stock-based Compensation (Tables)	3 Months Ended
	Apr. 02, 2023
Notes Tables
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]	Three Months Ended April 2, 2023 April 3, 2022 Cost of revenue $ 78 $ 56 Research and development 184 85 Selling, general and administrative 453 242 Total $ 715 $ 383
Share-Based Payment Arrangement, Activity [Table Text Block]	Shares Available for Grants Balance at January 1, 2023 960 Authorized — RSUs granted (17 ) RSUs forfeited or expired 9 Balance at April 2, 2023 952
Share-Based Payment Arrangement, Option, Activity [Table Text Block]	Weighted Weighted Average Average Aggregate Number of Exercise Remaining Intrinsic Shares Price Term Value (in thousands) (in years) (in thousands) Balance outstanding at January 1, 2023 75 $ 24.50 2.80 $ — Balance outstanding, exercisable, and vested at April 2, 2023 75 $ 24.50 2.55 $ —
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block]	RSUs & PRSUs Outstanding Weighted Average Number of Grant Date Shares Fair Value (in thousands) Nonvested at January 1, 2023 630 $ 6.05 Granted 17 6.06 Vested and released (34 ) 5.79 Forfeited (9 ) 7.25 Nonvested at April 2, 2023 604 $ 6.05

Note 10 - Information Concern_2

Note 10 - Information Concerning Product Lines, Geographic Information, and Revenue Concentration (Tables)	3 Months Ended
	Apr. 02, 2023
Notes Tables
Disaggregation of Revenue [Table Text Block]	Three Months Ended April 2, 2023 April 3, 2022 New products $ 3,055 $ 3,450 Mature products 1,078 646 Total revenue $ 4,133 $ 4,096 Three Months Ended April 2, 2023 April 3, 2022 Hardware products $ 162 $ 1,835 eFPGA IP and professional services 2,810 1,581 SaaS & Other 83 34 New products revenue $ 3,055 $ 3,450
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	Three Months Ended April 2, 2023 April 3, 2022 Asia Pacific $ 713 $ 1,491 North America 3,318 2,433 Europe 102 172 Total revenue $ 4,133 $ 4,096
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]	Three Months Ended April 2, April 3, 2023 2022 Distributor "A" 16 % 11 % Distributor "C" * 10 % Distributor "E" * 30 % Customer "A" 54 % * Customer "N" * 17 % Customer "O" * 27 % Customer "P" * 23 %
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]	April 2, January 1, 2023 2023 Distributor "A" 18 % 14 % Customer "C" 11 % 22 % Customer "F" 56 % 44 %

Note 1 - The Company and Basi_2

Note 1 - The Company and Basis of Presentation (Details Textual) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended
	Mar. 21, 2023	Apr. 02, 2023	Apr. 03, 2022	Jan. 01, 2023	Jan. 02, 2022
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents		$ 20,902	$ 20,140	$ 19,201	$ 19,605
Proceeds from Issuance of Common Stock		2,313	$ 1,482
Line of Credit, Current		$ 15,000		$ 15,000
Common Stock, Par or Stated Value Per Share (in dollars per share)		$ 0.001		$ 0.001
Registered Direct Offering [Member]
Proceeds from Issuance of Common Stock	$ 2,300
Stock Issued During Period, Shares, New Issues (in shares)	450
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.001
Shares Issued, Price Per Share (in dollars per share)	$ 5.14
Heritage Bank of Commerce [Member] | Paycheck Protection Program [Member]
Debt Instrument, Interest Rate, Stated Percentage		8.50%		8%
Heritage Bank of Commerce [Member] | Revolving Credit Facility [Member]
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents		$ 20,900
Line of Credit Facility, Maximum Borrowing Capacity				$ 15,000
Line of Credit, Current		$ 15,000		$ 15,000
Debt Instrument, Interest Rate, Effective Percentage		8.50%		8%

Note 3 - Net Loss Per Share (De

Note 3 - Net Loss Per Share (Details Textual) - $ / shares shares in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022	May 29, 2018
Common Stock [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)			$ 19.32
Warrants and Rights Outstanding, Maturity Date			May 29, 2023
Common Stock [Member] | Maximum [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)			386
Share-Based Payment Arrangement [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	740	578

Note 4 - Balance Sheet Compon_3

Note 4 - Balance Sheet Components - Balance Sheet Components (Details) - USD ($) $ in Thousands		Apr. 02, 2023	Jan. 01, 2023
Trade account receivables		$ 2,098	$ 2,707
Less: Allowance for doubtful accounts		(8)	(18)
Accounts Receivable, after Allowance for Credit Loss		2,090	2,689
Inventories:
Work-in-process		1,858	1,826
Finished goods		639	667
Inventory, Net		2,497	2,493
Other current assets:
Prepaid taxes, royalties, and other prepaid expenses		1,847	1,305
Other		217	265
Prepaid Expense and Other Assets, Current		2,064	1,570
Property and equipment, net:
Property and equipment, gross		12,494	12,467
Less: Accumulated depreciation and amortization		(12,052)	(12,002)
Property, Plant and Equipment, Net		442	465
Capitalized internal-use software, net:
Capitalized internal-use software		2,555	2,370
Less: Accumulated amortization		(979)	(856)
Capitalized Computer Software, Net		1,576	1,514
Accrued liabilities:
Accrued compensation		981	865
Accrued employee benefits		114	40
Accrued payroll tax		54	57
Other	[1]	557	547
Accrued Liabilities, Current		1,706	1,509
Equipment [Member]
Property and equipment, net:
Property and equipment, gross		10,161	10,133
Software and Software Development Costs [Member]
Property and equipment, net:
Property and equipment, gross		1,802	1,803
Furniture and Fixtures [Member]
Property and equipment, net:
Property and equipment, gross		65	65
Leasehold Improvements [Member]
Property and equipment, net:
Property and equipment, gross		$ 466	$ 466
[1]Accrued liabilities-Other is partially comprised of a $100 non-cash lease adjustment offseting Other Assets in the six months ended July 3, 2022.

Note 5 - Debt Obligations (Deta

Note 5 - Debt Obligations (Details Textual) - Heritage Bank of Commerce [Member] - Revolving Credit Facility [Member] - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 02, 2023	Apr. 03, 2022	Jan. 01, 2023
Line of Credit Facility, Maximum Month-end Outstanding Amount			$ 15,000
Debt Instrument, Interest Rate, Effective Percentage	8.50%		8%
Interest Expense, Debt	$ 33	$ 24

Note 6 - Leases (Details Textua

Note 6 - Leases (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022	Jan. 01, 2023
Operating Lease, Expense	$ 100	$ 100
Operating and Finance Lease, Right of Use Asset	1,592		$ 1,397
Operating and Finance Lease Liability	1,601		$ 1,394
Right of Use Asset Obtained in Exchange for Finance and Operating Lease Liability	445	0
Operating Lease, Right-of-Use Asset, Periodic Reduction	155	193
Approximate [Member]
Operating and Finance Lease, Right of Use Asset	1,600	1,400
Operating and Finance Lease Liability	$ 1,600	$ 1,400
Minimum [Member]
Lessee, Operating Lease, Term of Contract (Year)			1 year
Lessee, Finance Lease, Term of Contract (Year)			2 years
Maximum [Member]
Lessee, Operating Lease, Term of Contract (Year)			5 years
Lessee, Finance Lease, Term of Contract (Year)			3 years

Note 6 - Leases - Summary of Op

Note 6 - Leases - Summary of Operating and Finance Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Fixed	$ 100	$ 100
Short term	4	6
Total	104	106
Amortization of ROU asset	160	109
Interest	22	7
Total	$ 182	$ 116

Note 6 - Leases - Summary of Su

Note 6 - Leases - Summary of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Operating cash flows used for operating leases	$ 103	$ 100
Operating cash flows used for finance leases	22	7
Financing cash flows used for finance leases	142	98
Total	$ 267	$ 205

Note 6 - Leases - Details of Ri

Note 6 - Leases - Details of Right-of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Total right-of-use assets	$ 1,592	$ 1,397
Total lease liabilities	1,601	1,394
Right of Use Assets, Net [Member]
Operating leases	374	464
Finance leases	1,218	933
Current and Lease Liabilities - Non-current [Member]
Operating leases	411	507
Finance leases	$ 1,190	$ 887

Note 6 - Leases - Schedule of F

Note 6 - Leases - Schedule of Future Lease Payments for Leases (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
2023, operating	$ 319
2023, finance	494
2024, operating	106
2024, finance	624
2025, operating	0
2025, finance	169
Total lease payments, operating	425
Total lease payments, finance	1,287
Less: Interest, operating	(14)
Less: Interest, finance	(97)
Current and Lease Liabilities - Non-current [Member]
Present value of lease liabilities, operating	411	$ 507
Present value of lease liabilities, finance	$ 1,190	$ 887

Note 6 - Leases - Schedule of L

Note 6 - Leases - Schedule of Lease Terms and Weighted Average Discount Rate (Details)	Apr. 02, 2023	Jan. 01, 2023
Operating leases (Year)	1 year	1 year 3 months
Finance leases (Year)	2 years 3 months 14 days	1 year 10 months 28 days
Operating leases	6%	6%
Finance leases	6.67%	5.95%

Note 7 - Capital Stock (Details

Note 7 - Capital Stock (Details Textual) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended
	Mar. 21, 2023	Apr. 02, 2023	Apr. 03, 2022
Proceeds from Issuance of Common Stock		$ 2,313	$ 1,482
Registered Direct Offering [Member]
Stock Issued During Period, Shares, New Issues (in shares)	450
Proceeds from Issuance of Common Stock	$ 2,300
Shares Issued, Price Per Share (in dollars per share)	$ 5.14

Note 8 - Stock-based Compensa_3

Note 8 - Stock-based Compensation (Details Textual) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Share-Based Payment Arrangement, Amount Capitalized	$ 18	$ 0
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures and Expirations in Period (in shares)	0	0
Share-Based Payment Arrangement, Expense	$ 715	$ 383
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)	0	0
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in shares)	0	0
Share-Based Payment Arrangement, Option [Member]
Share-Based Payment Arrangement, Expense	$ 0	$ 0
RSU and PRSU [Member]
Share-Based Payment Arrangement, Expense	700	400
Restricted Stock Units (RSUs) [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 2,200	1,300
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)	1 year 4 months 17 days
Employee Stock Purchase Plan [Member]
Employee Stock Ownership Plan (ESOP), Compensation Expense	$ 30	$ 23

Note 8 - Stock-based Compensa_4

Note 8 - Stock-based Compensation - Schedule of Allocation of Recognized Period Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Total costs and expenses	$ 715	$ 383
Cost of Sales [Member]
Total costs and expenses	78	56
Research and Development Expense [Member]
Total costs and expenses	184	85
Selling, General and Administrative Expenses [Member]
Total costs and expenses	$ 453	$ 242

Note 8 - Stock-based Compensa_5

Note 8 - Stock-based Compensation - Schedule of Stock Based Compensation Award Activity (Details) shares in Thousands	3 Months Ended
	Apr. 02, 2023 shares
Balance (in shares)	75
RSUs forfeited or expired (in shares)	9
Balance (in shares)	75
Stock Plan 2019 [Member]
Balance (in shares)	960
Options authorized (in shares)	0
RSUs granted (in shares)	(17)
Balance (in shares)	952

Note 8 - Stock-Based Compensa_6

Note 8 - Stock-Based Compensation - Stock Options Activity (Details) - $ / shares shares in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Balance (in shares)	75
Weighted average price balance (in dollars per share)	$ 24.50
Weighted average remaining, balance (Year)	2 years 6 months 18 days	2 years 9 months 18 days
Balance (in shares)	75
Weighted average price balance (in dollars per share)	$ 24.50

Note 8 - Stock-Based Compensa_7

Note 8 - Stock-Based Compensation - Summary of Restricted Stock Units Activity (Details) shares in Thousands	3 Months Ended
	Apr. 02, 2023 $ / shares shares
Forfeited (in shares)	(9)
Restricted Stock Units (RSUs) [Member]
Balance (in shares)	630
Balance (in dollars per share) | $ / shares	$ 6.05
Granted (in shares)	17
Granted (in dollars per share) | $ / shares	$ 6.06
Vested and released (in shares)	(34)
Vested and released (in dollars per share) | $ / shares	$ 5.79
Forfeited (in shares)	(9)
Forfeited (in dollars per share) | $ / shares	$ 7.25
Balance (in shares)	604
Balance (in dollars per share) | $ / shares	$ 6.05

Note 9 - Income Taxes (Details

Note 9 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022	Mar. 31, 2022	Mar. 31, 2021
Income Tax Expense (Benefit)	$ 7	$ (1)
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent			0.60%	0.10%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21%

Note 10 - Information Concern_3

Note 10 - Information Concerning Product Lines, Geographic Information, and Revenue Concentration (Details Textual) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 02, 2023	Apr. 03, 2022	Jan. 01, 2023
Revenue from Contract with Customer, Excluding Assessed Tax	$ 4,133	$ 4,096
Contract with Customer, Liability, Current	299		$ 272
UNITED STATES
Revenue from Contract with Customer, Excluding Assessed Tax	$ 3,300	$ 2,400
Percentage of Revenue	80%	59%
UNITED KINGDOM | Geographic Concentration Risk [Member] | Revenue Benchmark [Member]
Concentration Risk, Percentage			10%
eFPGA Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 2,800	$ 1,600
New Products Related to Engineering Services [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	2,600
SaaS Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	200
Engineering Services [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	2,300	100
Professional Services [Member]
Contract with Customer, Liability, Current	$ 300	$ 0

Note 10 - Information Concern_4

Note 10 - Information Concerning Product Lines, Geographic Information and Revenue Concentration - Schedule of Revenue by Product Line (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Revenue	$ 4,133	$ 4,096
New Products [Member]
Revenue	3,055	3,450
Hardware Products [Member]
Revenue	162	1,835
Mature Products [Member]
Revenue	1,078	646
eFPGA IP [Member]
Revenue	2,810	1,581
SaaS and Other [Member]
Revenue	$ 83	$ 34

Note 10 - Information Concern_5

Note 10 - Information Concerning Product Lines, Geographic Information and Revenue Concentration - Schedule of Revenue by Shipment Destination (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Revenue	$ 4,133	$ 4,096
Asia Pacific [Member]
Revenue	713	1,491
North America [Member]
Revenue	3,318	2,433
Europe [Member]
Revenue	$ 102	$ 172

Note 10 - Information Concern_6

Note 10 - Information Concerning Product Lines, Geographic Information and Revenue Concentration - Customer and Distributor Concentration of Revenue (Details) - Customer Concentration Risk [Member] - Revenue Benchmark [Member]	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Distributor "A" [Member]
Concentration risk percentage	16%	11%
Distributor "C" [Member]
Concentration risk percentage		10%
Distributor "E" [Member]
Concentration risk percentage		30%
Customer "A" [Member]
Concentration risk percentage	54%
Customer "N" [Member]
Concentration risk percentage		17%
Customer "O" [Member]
Concentration risk percentage		27%
Customer P [Member]
Concentration risk percentage		23%

Note 10 - Information Concern_7

Note 10 - Information Concerning Product Lines, Geographic Information and Revenue Concentration - Customer and Distributor Concentration of Accounts Receivable (Details) - Customer Concentration Risk [Member] - Accounts Receivable [Member]	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Distributor "A" [Member]
Concentration risk percentage	18%	14%
Customer "C" [Member]
Concentration risk percentage	11%	22%
Customer "F" [Member]
Concentration risk percentage	56%	44%

Note 11 - Commitments and Con_2

Note 11 - Commitments and Contingencies (Details Textual) $ in Millions	Apr. 02, 2023 USD ($)
Goods and Services [Member]
Recorded Unconditional Purchase Obligation, to be Paid, Year One	$ 1.3
eFPGA IP Procurement Contracts [Member]
Other Commitment, to be Paid, Year One	3.8
Other Commitment, to be Paid, Year Two and Three, Total	$ 8.7

Note 12 - Subsequent Events (De

Note 12 - Subsequent Events (Details Textual) - Receivable with Customer [Member] - Subsequent Event [Member]	Apr. 28, 2023 USD ($)
Notes Receivable, Interest Rate	3%
Notes Receivable, Default Interest Rate	10%
Maximum [Member]
Financing Receivable, before Allowance for Credit Loss	$ 1.16