QuickLogic : Quarterly Report for Quarter Ending March 29, 2026 (Form 10-Q)
QUIK
Published on 05/13/2026 at 04:33 pm EDT
Management's Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
The following Management's Discussion and Analysis of Financial Condition and Results of Operations, as well as information contained in "Risk Factors" in Part II, Item 1A and elsewhere in this Quarterly Report on Form 10-Q, contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend that these forward-looking statements be subject to the safe harbor created by those provisions. Forward-looking statements are generally written in the future tense and/or are preceded by words such as "will," "may," "should," "forecast," "could," "expect," "suggest," "believe," "anticipate," "intend," "plan," "future," "potential," "target," "seek," "continue," "if" or other similar words.
The forward-looking statements contained in the Quarterly Report include statements regarding our strategies as well as (1) our revenue levels, including the commercial success of our solutions and new products, (2) the conversion of our design opportunities into revenue, (3) our liquidity, (4) our gross profit and breakeven revenue level and factors that affect gross profit and the break-even revenue level, (5) our level of operating expenses, (6) our research and development efforts, (7) our partners and suppliers, (8) industry and market trends, (9) our manufacturing and product development strategies, and (10) our competitive position.
The following discussion should be read in conjunction with the attached unaudited condensed consolidated financial statements and notes thereto, and with our audited consolidated financial statements and notes thereto for the fiscal year ended December 28, 2025, found in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 27, 2026. Although we believe that the assumptions underlying the forward-looking statements contained in this Quarterly Report are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that such statements will be accurate. The risks, uncertainties, and assumptions referred to above that could cause our results to differ materially from the results expressed or implied by such forward-looking statements include, but are not limited to, those discussed under the heading "Risk Factors" in Part II, Item 1A hereto and the risks, uncertainties, and assumptions discussed from time to time in our other public filings and public announcements. All forward-looking statements included in this document are based on information available to us as of the date hereof. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements, or our objectives and plans will be achieved. Furthermore, past performance in operations and share price is not necessarily indicative of future performance. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, that may arise after the date of this Quarterly Report on Form 10-Q.
Overview
QuickLogic Corporation was founded in 1988 and completed its reincorporation in Delaware in 1999. We develop embedded Field Programmable Gate Array ("eFPGA") hard intellectual property ("IP"), Strategic Radiation Hardened and Antifuse FPGAs, and ruggedized programmable logic solutions used in a range of applications requiring adaptable hardware functionality. Our technologies enable customers to incorporate programmable logic into custom semiconductor devices or deploy standalone programmable devices to implement system control, hardware acceleration, and other configurable functions.
We are a fabless semiconductor company whose primary offerings include eFPGA IP licensing, discrete FPGA devices, and related development tools and software. In certain cases, our licensing arrangements may include royalty payments based on customer production volumes. Semiconductor companies license our eFPGA IP to integrate programmable logic blocks into their application-specific integrated circuits ("ASICs") and system-on-chip ("SoC") devices. Our discrete FPGA devices enable customers to implement custom hardware functionality in applications requiring flexibility, low power consumption, and long product life cycles.
Our programmable logic technologies are used in a variety of markets, including aerospace and defense, industrial and infrastructure systems, data processing and computing platforms, and certain embedded and edge computing applications. The combination of programmable silicon technologies, software tools, and design resources enables customers to efficiently incorporate field-programmable hardware capabilities into both custom silicon and system-level products.
Certain of our programmable logic technologies are designed for applications requiring deterministic hardware operation, security, and long operational lifetimes, including aerospace, defense, and industrial systems, where reliable electronics are critical to system performance.
We also support government-sponsored initiatives focused on strengthening trusted microelectronics capabilities and advancing radiation-tolerant programmable logic technologies used in aerospace, defense, and other mission-critical systems.
Our current product offerings include our eFPGA IP licensing business and associated professional services, which consist of development and integration of eFPGA technology into customer semiconductor devices, as well as a range of FPGA silicon products, including EOS™, ArcticLink® III, PolarPro®3, PolarPro II, PolarPro®, and Eclipse II products. Our mature products include FPGA families such as PASIC®3 and QuickRAM®, as well as programming hardware and design software tools that support the development and deployment of programmable logic designs. We currently have a total of six patent applications pending.
Our EOS S3™ and ArcticLink® III silicon platforms combine mixed-signal physical functionality and fixed-function logic alongside programmable logic resources. Integrating these capabilities allows customers to implement cost-effective and energy-efficient system architectures while retaining the flexibility of programmable hardware. These platforms are designed to take advantage of semiconductor manufacturing nodes that enable reduced power consumption and smaller die sizes.
For cost-sensitive applications, we utilize small form-factor packaging options that reduce device cost and minimize printed circuit board space requirements for customers. For applications requiring enhanced environmental reliability, including certain aerospace and defense systems, we support packaging options designed for ruggedized operating environments.
We sell our products through a combination of direct sales personnel and sales channel partners in North America, Europe, and Asia. Our direct sales organization focuses on strategic customer engagements and technical support, while our channel partners and distributors support product availability and regional sales activities. In addition to our corporate headquarters in San Jose, California, we maintain international sales operations in Japan and the United Kingdom.
Customers typically purchase our FPGA devices through authorized distributors. We currently work with a network of distributors in North America, Europe, and Asia to support our global sales activities. Customers licensing our eFPGA IP generally enter into licensing agreements directly with QuickLogic.
We serve customers across several markets, including aerospace and defense, industrial systems, computing platforms, and semiconductor companies developing custom ASIC or SoC devices. Certain customers in aerospace, defense, and industrial markets continue to utilize our existing FPGA device platforms, while semiconductor companies increasingly license our eFPGA IP to integrate programmable logic into custom semiconductor designs.
We collaborate with a range of ecosystem partners on co-marketing, co-selling, and technology initiatives supporting our IP and silicon platforms. These partners include semiconductor IP providers, semiconductor design service companies, semiconductor foundries, semiconductor assembly and test providers, and other technology companies that support the development and deployment of programmable silicon solutions.
Our eFPGA IP is currently developed across a range of semiconductor manufacturing process technologies, including Intel 18A and process nodes such as 12nm, 16nm, 22nm, 28nm, 40nm, 65nm, 90nm, 130nm, 250nm, and 350nm with a roadmap targeting additional advanced semiconductor nodes. Our licensable IP is generated using our automated IP generator tool, Australis™, which enables the creation of customized eFPGA IP architectures that can be integrated into customer ASIC and SoC designs. This automated architecture generation capability allows customers to incorporate programmable logic into custom semiconductor devices with limited ongoing development involvement from QuickLogic, enabling a scalable IP licensing model.
As a fabless semiconductor company, we rely on third-party semiconductor foundries and manufacturing partners to fabricate, assemble, and test our silicon products. We work with multiple manufacturing partners to support a range of product volumes and applications, including the development of certain programmable logic technologies designed for use in semiconductor manufacturing environments operated within the United States. This approach allows us to leverage the manufacturing scale and process technologies of established semiconductor suppliers while focusing our internal resources on programmable logic architecture development, product design, and customer engagement.
For our commercial products, we outsource wafer fabrication primarily to GlobalFoundries and Taiwan Semiconductor Manufacturing Company Limited ("TSMC"). Packaging and assembly services for our commercial products are provided by third-party semiconductor assembly and test providers, including Amkor Technology, Inc., Integra Technologies, Inc., and Golden Altos Corporation.
GlobalFoundries manufactures several of our programmable silicon platforms, including EOS S3™, EOS S3 LV™, and EOS S3AI™ devices using a 40-nanometer complementary metal oxide semiconductor ("CMOS") process, and PolarPro® 3E, ArcticLink® III VX and BX products using a 65-nanometer CMOS process. We also have recently used GlobalFoundries 12nm process for a new FPGA device test chip. TSMC manufactures certain of our mature FPGA products, including PASIC® 3 and QuickRAM® devices, using 0.35-micron CMOS process, and Eclipse® devices using a 0.25-micron CMOS process. We purchase wafers from these suppliers primarily on a purchase order basis.
Outsourcing wafer fabrication allows us to benefit from the manufacturing scale, process technologies, and operational efficiencies of leading semiconductor foundries. We may establish additional foundry relationships in the future as required to support new product development, customer requirements, or supply chain diversification. For certain products used in aerospace, defense, and government-related applications, we may be required to source wafer fabrication, packaging, and testing services from suppliers that meet specific security, traceability, and quality standards. In these cases, we work with manufacturing partners that support trusted microelectronics programs and maintain appropriate certifications and operational controls required by U.S. government customers.
We expect that future revenue growth will depend on the continued adoption of our eFPGA IP technologies, the introduction of new FPGA devices, and the ongoing demand for our existing programmable logic products. Our growth strategy includes expanding our eFPGA IP business, developing additional programmable logic devices and architectures, and supporting the integration of programmable logic technologies into a broad range of semiconductor and system-level applications.
In the first quarter of 2025, we announced our Board of Directors was actively exploring options for the sale of our wholly owned subsidiary, SensiML. SensiML's Analytics Toolkit provides an end-to-end Artificial Intelligence / Machine Learning development platform with accurate sensor algorithms using AI technology, spanning data collection, labeling, algorithm and firmware auto generation, and testing. This cutting-edge software enables ultra-low power IoT endpoints that implement AI to transform raw sensor data into meaningful insight at the device itself. Revenue streams from SensiML include Software as a Service (SaaS) subscriptions for development, per unit license fees when deployed in production, and proof-of-concept services.
This decision by us and our Board of Directors was influenced by recent events, including eFPGA IP design wins with strategic customers, expansion of large government ruggedized FPGA and eFPGA IP contracts, performance improvements of our eFPGA IP products, recent changes in the FPGA market competitor landscape, and an increase in inbound interest from customers of former eFPGA market competitors. With the success of QuickLogic's eFPGA IP and ruggedized FPGA business, we will focus all of our resources on leveraging and growing the cornerstones of our core business model.
As of January 7, 2025, we began accounting for the SensiML subsidiary in accordance with ASC 205-20, Discontinued Operations. During Fiscal Year 2025, we continued to evaluate strategic alternatives for SensiML, including a potential sale of the business or its underlying assets. As of December 28, 2025, we determined that the anticipated sale of SensiML had not occurred within the originally expected time frame and management reassessed the expected timing of a potential disposition. As run-off operations at the SensiML subsidiary concluded in Fiscal Year 2025, we determined that a classification of asset group held for disposal for the SensiML subsidiary, in accordance with ASC 360-10, was appropriate. As such, the following Management's Discussion and Analysis of Financial Condition and Results of Operations has been disaggregated as appropriate between continuing and discontinued operations.
During the first quarter of 2026, we generated total revenue from continuing operations of $5.1 million, an increase of 35% compared to the prior quarter, and an increase of 17% compared to the same quarter last year. Our new product revenue from continuing operations in the first quarter was $4.3 million, an increase of 51% from the prior quarter and an increase of 14% from the first quarter of 2025. Our mature product revenue from continuing operations was $0.8 million in the first quarter of 2026, a decrease of 14% compared to the prior quarter, and an increase of 32% compared to the first quarter of 2025. We expect our mature product revenue to continue to fluctuate over time.
During the first quarter of 2026, we generated total revenue from discontinued operations of $0, consistent with the prior quarter, and a decrease of 100% compared to the same quarter last year.
We devote substantially all of our development, sales, and marketing efforts to our new eFPGA IP licensing and professional services. Overall, we reported a net loss from continuing operations of $2.2 million for the first quarter of 2026, as compared to a net loss from continuing operations of $3.6 million in the prior quarter and a net loss from continuing operations of $2.1 million for the first quarter of 2025.
We reported a net loss from discontinued operations of $4 thousand for the first quarter of 2026, as compared to a net loss from discontinued operations of $2.4 million in the prior quarter and a net loss from discontinued operations of $0.1 million for the first quarter of 2025. The net loss from discontinued operations of $2.4 million recognized in the prior quarter was primarily attributable to the full impairment of the asset group of the SensiML subsidiary in the amount of $2.4 million.
As of March 29, 2026, we had one operating lease with a remaining lease term of 1.17 years. The operating lease relates to our company headquarters in San Jose, CA.
Critical Accounting Policies and Estimates
The methodologies, 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 the Company's financial condition and results of operations and requires 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, inventory valuation, including the identification of excess quantities, market value, and obsolescence, and valuation of long-lived and intangible assets. 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 have a material impact on our financial statements. During the three months ended March 29, 2026, there were no changes in our critical accounting policies from our disclosure in our Annual Report on Form 10-K for the fiscal year ended December 28, 2025, which was filed with the SEC on March 27, 2026.
Continuing Operations
Results of Operations
The following table sets forth the percentage of revenue from continuing operations for certain items in our unaudited condensed consolidated statements of operations for the periods indicated:
Three Months Ended
March 29, 2026
March 30, 2025
Revenue
Cost of revenue
Gross profit (loss)
Operating expenses:
Research and development
Selling, general and administrative
Restructuring costs
Income (loss) from continuing operations
Interest expense
Interest income and other income (expense), net
Income (loss) from continuing operations before income taxes
(Benefit from) provision for income taxes
Net income (loss) from continuing operations
Three Months Ended March 29, 2026 Compared to Three Months Ended March 30, 2025
Revenue
The table below sets forth the changes in revenue from continuing operations in the three months ended March 29, 2026 compared to the three months ended March 30, 2025 (in thousands, except percentage data):
Three Months Ended
March 29, 2026
March 30, 2025
Change
% of Total
% of Total
Amount
Revenues
Amount
Revenues
Amount
Percentage
New products
Mature products
Total revenue
Note: For all periods presented, new products consist of hardware products manufactured on 180 nanometer or smaller semiconductor processes and eFPGA IP licenses, as well as professional services. Mature products include all products produced on semiconductor processes larger than 180 nanometer. Associated royalty revenues are included within their respective device's classification.
Product revenue for the first quarter of 2026 compared to the first quarter of 2025 increased $0.7 million. The increase primarily resulted from increases in eFPGA IP and professional services revenues.
New Product Revenue
The table below sets forth the changes in new product revenue from continuing operations in the three months ended March 29, 2026 compared to the three months ended March 30, 2025 (in thousands, except percentage data):
Three Months Ended
March 29, 2026
March 30, 2025
Change
% of Total
% of Total
Amount
Revenues
Amount
Revenues
Amount
Percentage
Hardware products
eFPGA IP and professional services
Total new product revenue
eFPGA IP revenue for the three months ended March 29, 2026 and March 30, 2025 was $4.2 million and $3.6 million, respectively, which was primarily professional services revenue.
Gross Profit
The table below sets forth the changes in gross profit from continuing operations for the three months ended March 29, 2026 compared to the three months ended March 30, 2025 (in thousands, except percentage data):
Three Months Ended
March 29, 2026
March 30, 2025
Change
% of Total
% of Total
Amount
Revenues
Amount
Revenues
Amount
Percentage
Revenue
Cost of revenue
Gross profit (loss)
In the first quarter of 2026, gross profit decreased $35 thousand, or 2%, compared to the same quarter in the prior year. The net decrease in gross profit reflects a 31% increase in cost of revenue, partially offset by a 17% increase in revenues. Revenue increased from the same quarter in the prior year due to increased eFPGA IP and professional services revenues as the result of timing for related contracts. The net increase in cost of revenues was primarily due to increases in consulting services and increased depreciation, as well as additional inventory reserves.
Our semiconductor products have historically had long product life cycles and obsolescence has not been a significant factor in the valuation of inventories. However, some growth opportunities in non-Aerospace and Defense markets may experience shorter product life cycles, and the risk of obsolescence will increase. In general, our standard manufacturing lead times are longer than the binding forecasts we receive from customers.
Operating Expenses
The table below sets forth the changes in operating expenses from continuing operations for the three months ended March 29, 2026 compared to the three months ended March 30, 2025 (in thousands, except percentage data):
Three Months Ended
March 29, 2026
March 30, 2025
Change
% of Total
% of Total
Amount
Revenues
Amount
Revenues
Amount
Percentage
R&D expense
SG&A expense
Restructuring costs
Total operating expenses
Research and Development
Our R&D expenses consist primarily of personnel, overhead, and other costs associated with System on Chip ("SoC") and software development, programmable logic design, and eFPGA development. R&D expenses for the first quarter of 2026 as compared to the same quarter in 2025 increased $0.2 million, primarily due to increases in compensation and slight increases in software tooling expenditures.
Selling, General and Administrative
Our selling, general and administrative ("SG&A") expenses consist primarily of personnel and related overhead costs for sales, marketing, finance, administration, human resources, and general management. The $0.1 million decrease in SG&A expenses in the first quarter of 2026, as compared to the first quarter of 2025, was attributable primarily to decreased compensation costs, partially offset by an increase in benefits allocations.
Interest Expense, Interest Income and Other Income (Expense), Net
The table below sets forth the changes in interest expense and interest income and other income (expense), net from continuing operations for the three months ended March 29, 2026 compared to the three months ended March 30, 2025 (in thousands, except percentage data):
Three Months Ended
Change
March 29,
March 30,
2026
2025
Amount
Percentage
Interest expense
Interest income and other income (expense), net
Total interest (expense), interest income and other income (expense), net
Interest expense relates primarily to our revolving line of credit facility and notes payable. Interest income and other income (expense), net, relates to net foreign exchange losses recorded, partially offset by interest earned in our money market accounts. Changes in interest expense are related to varying levels of utilization of our revolving loan. Interest expense for the first quarter of this year as compared to the same period in the prior year decreased approximately $43 thousand. We did not utilize our revolving loan in the three months ended March 29, 2026. Interest income and other income (expense), which is mostly comprised of bank fees, net foreign exchange losses, and refunds, increased approximately $26 thousand.
Provision for Income Taxes
The table below sets forth the changes in the provisions for income taxes in the three months ended March 29, 2026, compared to the three months ended March 30, 2025 (in thousands, except percentage data):
Three Months Ended
Change
March 29,
March 30,
2026
2025
Amount
Percentage
(Benefit from) provision for income taxes
The Company recorded a net income tax benefit of approximately $3 thousand for the three months ended March 29, 2026 and a net income tax expense of $5 thousand for the three months ended March 30, 2025. The effective tax rate for the first quarter ended March 29, 2026 was 0.14% as compared to (0.24)% for the same period in the prior year.
Discontinued Operations
Results of Operations
The following table sets forth the percentage of revenue from discontinued operations for certain items in our unaudited condensed consolidated statements of operations for the periods indicated:
Three Months Ended
March 29, 2026
March 30, 2025
Revenue
Cost of revenue
Gross profit (loss)
Operating expenses:
Research and development
Selling, general and administrative
Restructuring costs
Income (loss) from discontinued operations before income taxes
Balance Sheet Activities
Balance sheet amounts from continuing operations at March 29, 2026 compared to December 28, 2025 resulted from typical and usual activities in the normal course of business.
Total assets decreased by approximately $12.4 million, primarily due to a $12.8 million reduction in cash and cash equivalents due to greater payments than borrowings on our revolving line of credit, a $0.2 million reduction in prepaid expenses and other current assets, a $0.1 million reduction in accounts receivable and contract assets due to the collection of outstanding receivables, a $0.1 million in amortization expense of our right-of-use assets, and a $0.1 million reduction in our inventory balances, partially offset by a $0.5 million net increase in equipment and internal-use software assets and a $0.4 million net increase in other assets.
Liabilities decreased by approximately $14.2 million due to greater payments than borrowings in the amount of $15.0 million on our revolving line of credit and payments on operating leases of $0.1 million, partially offset by net borrowings on notes payable of $0.3 million, increases in accrued liabilities and deferred revenues of $0.3 million, and a $0.2 million increase in trade payables.
Equity increased $1.8 million due to a $4.0 million increase in additional paid in capital arising from the sale of shares of common stock and recognition of stock-based compensation, partially offset by a $2.2 million net loss for the three months ended March 29, 2026.
Liquidity and Capital Resources
We have financed our operations and capital investments through the sale of our common stock, financing arrangements, operating leases, and cash flows from operations. As of March 29, 2026, our principal sources of liquidity consisted of cash and cash equivalents from continuing operations of $6.0 million and $3.1 million in net proceeds from the sale of our common stock in the three months ended March 29, 2026. We did not utilize our $20.0 million revolving line of credit with Heritage Bank of Commerce in the three months ended March 29, 2026.
On February 25, 2025, we entered into an At Market Issuance Sales Agreement (the "Sales Agreement") with Needham & Company, LLC, as sales agent (the "Agent"). Pursuant to the Sales Agreement, we may offer and sell, from time to time, through the Agent, shares of our common stock, par value of $0.001 per share, having an aggregate offering price of up to $20,000,000 (the "ATM Offering"). In the three months ended March 30, 2025, we sold 182 thousand shares under the ATM offering, resulting in net cash proceeds of approximately $1.2 million. Issuance costs related to the ATM Offering were $89 thousand.
On August 14, 2025, we filed a new Registration Statement on Form S-3 (File No 333-289610) ("New Registration Statement") with the SEC to replace our expiring Registration Statement on Form S-3, under which we may sell, from time-to-time, common stock, preferred stock, depositary shares, warrants, debt securities, and units, individually or as units comprised of one or more of the other securities or a combination thereof in an aggregate amount of up to $125,000,000. Our registration statement became effective August 22, 2025.
In connection with the New Registration Statement, we filed a sales prospectus whereby we amended, restated, and renewed our ATM program, allowing us to sell an aggregate offering price of up to $20,000,000 (the "Amended ATM Offering"). We also amended and restated our At Market Sales Agreement with the Agent on August 14, 2025. The $20,000,000 shares of our common stock that may be sold under the Amended ATM Offering are included in the $125,000,000 of our securities that may be sold under the New Registration Statement.
During the three months ended March 29, 2026, we sold 403 thousand shares under the Amended ATM Offering, resulting in net cash proceeds of approximately $3.1 million. Issuance costs related to the amended ATM Offering were $94 thousand.
On March 6, 2025, we entered into Common Stock Purchase Agreements with certain institutional investors and their affiliated entities for the sale of an aggregate of 256 thousand shares of common stock, par value $0.001, in a registered direct offering, resulting in net cash proceeds of approximately $1.5 million. Issuance costs related to the offering were $20 thousand. The purchase price for each share of common stock was $5.93.
As disclosed in our most recent Annual Report on Form 10-K, which was filed with the SEC on March 27, 2026, we evaluated, in accordance with ASC 205-40, Presentation of Financial Statements - Going Concern, whether conditions or events as of December 28, 2025, considered in the aggregate, raise concerns about our ability to meet our obligations as they become due within one year after the date that the consolidated financial statements were issued. As part of this evaluation, we identified conditions and events related primarily to the maturity of our revolving credit facility with Heritage Bank of Commerce ("Heritage Bank"), which had a maturity date of December 31, 2026. In anticipation of the maturity of the revolving credit facility with Heritage Bank, we entered into a Loan and Security Agreement with Sunflower Bank, N.A. and a Promissory Note, providing a $10 million secured revolving credit facility with a maturity date of April 24, 2029. Refer to Note 15 for additional information. As a result of the new revolving credit facility with Sunflower Bank, N.A., we do not have any concerns on our ability to meet our obligations as they become due within one year after the date that the unaudited condensed consolidated financial statements are issued.
We currently use our cash to fund our working capital, to accelerate the development of next-generation products, and for general corporate purposes. Based on past performance and current expectations, we believe that our existing cash and cash equivalents, together with $3.1 million in net cash proceeds from the Amended ATM Offering and sales thereby, our revenues from operations, and the available financial resources from our new revolving facility with Sunflower Bank, N.A. will be sufficient to fund our operations and capital expenditures and provide adequate working capital for the next twelve months.
Various factors affect our 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 our ArcticLink® and PolarPro® platforms, ArcticPro™, EOS S3 SoC, Eclipse II products, and eFPGA IP license and professional services; the timing, milestones, and payments related to our government contracts; fluctuations in revenue as a result of product end-of-life; fluctuations in revenue as a result of the stage in the product life cycle of our customers' products; costs of securing access to and availability of adequate manufacturing capacity; levels of inventories; wafer purchase commitments; customer credit terms; the amount and timing of research and development expenditures; the timing of new product introductions; production volumes; product quality; sales and marketing efforts; the value and liquidity of our investment portfolio; changes in operating assets and liabilities; the ability to obtain or renew debt financing and to remain in compliance with the terms of existing credit facilities; the ability to raise funds from the sale of equity in the company; the issuance and exercise of stock options and participation in our employee stock purchase plan; and other factors related to the uncertainties of the industry and global economics.
Over the longer term, we anticipate that sales generated from our new product offerings, existing cash and cash equivalents, together with financial resources from our new revolving facility with Sunflower Bank, N.A., and our ability to raise additional capital in the public capital markets will be sufficient to satisfy our operations and capital expenditures. However, we cannot provide any assurance that we will be able to raise additional capital, if required, or that such capital will be available on terms acceptable to us. The inability to generate sufficient sales from our new product offerings and/or raise additional capital if needed could have a material adverse effect on our operations and financial condition, including our ability to maintain compliance with our lender's financial covenants.
As of March 29, 2026, most of our cash and cash equivalents were invested in a money market account at Heritage Bank. As of March 29, 2026, our interest-bearing debt consisted of $3.1 million outstanding under notes payable. See Note 8 - Debt Obligations, to the unaudited condensed consolidated financial statements for more details.
Cash balances held at our foreign subsidiaries were approximately $0.1 million as of March 29, 2026 and December 28, 2025. Earnings from our foreign subsidiaries are currently deemed to be indefinitely reinvested. We do not expect such reinvestment to affect our liquidity and capital resources, and we continually evaluate our liquidity needs and ability to meet global cash requirements as a part of our overall capital deployment strategy. Factors that affect our global capital deployment strategy include anticipated cash flows, the ability to repatriate cash in a tax-efficient manner, funding requirements for operations and investment activities, acquisitions and divestitures, and capital market conditions.
In summary, our cash flows were as follows (in thousands):
Three Months Ended
March 29,
March 30,
2026
2025
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net cash provided by (used in) operating activities
For the three months ended March 29, 2026, net cash provided by operating activities was $0.7 million, which was primarily due to net non-cash charges of $2.8 million, which included $1.6 million in depreciation and amortization expenses, $0.9 million of stock-based compensation, $0.3 million in inventory write-downs, and $0.1 million in ROU asset amortization expenses, partially offset by a net loss of $2.2 million. Cash inflow from changes in operating assets and liabilities was approximately $0.2 million and was primarily due to decreases in accounts receivable and other assets and increases in accrued liabilities and deferred revenues, partially offset by increases in contract assets and inventories and decreases in trade payables and lease liabilities.
For the three months ended March 30, 2025, net cash used in operating activities was $2.1 million, which was primarily due to the net loss of $2.2 million, adjusted for net non-cash charges of $2.3 million, which included $1.3 million in depreciation and amortization expenses, $0.9 million of stock-based compensation, and $0.1 million in ROU asset amortization expenses. Cash outflow from changes in operating assets and liabilities was approximately $2.2 million and was primarily due to decreases in accounts payable, accrued liabilities and lease liabilities and an increase in contract assets, partially offset by a decrease in accounts receivable and other assets and an increase in deferred revenues.
Net cash provided by (used in) investing activities
For the three months ended March 29, 2026 and March 30, 2025 cash used in investing activities was $0.8 million and $1.5 million, respectively, which were primarily attributable to the capital expenditures relating to licensed software, capitalized internal-use software, and purchase of specialized semiconductor tooling, which was capitalized.
Net cash provided by (used in) financing activities
Cash flows from financing activities include the drawdowns and repayments of our line of credit. For three months ended March 29, 2026, repayments were greater than drawdowns by $15.0 million. For three months ended March 30, 2025, repayments were greater than drawdowns by $3.0 million.
For the three months ended March 29, 2026, cash used in financing activities was $12.7 million, which was primarily due to greater repayments of $15.0 million on our line of credit and $0.8 million in payments related to financing arrangements, partially offset by net proceeds of $3.1 million from sale of our common stock.
For the three months ended March 30, 2025, cash used in financing activities was $0.7 million and was primarily due to greater repayments of $3.0 million on our line of credit and $0.5 million in payments related to financing arrangements, partially offset by net proceeds of $2.8 million from sale of our common stock.
Part I. Financial Information (continued)
Off-Balance Sheet Arrangements
We do not maintain any off-balance sheet partnerships, arrangements, or other relationships with unconsolidated entities or others, often referred to as structured finance or special purpose entities, which are established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.
Disclaimer
QuickLogic Corporation published this content on May 13, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 13, 2026 at 20:28 UTC.