Stockholders' Equity

12 Months Ended

Jan. 01, 2012

Stockholders' Equity Attributable to Parent [Abstract]

Stockholders' Equity

STOCKHOLDERS' EQUITY

Common and Preferred Stock

The Company has authorized 100 million shares of common stock and has authorized, but not issued, ten million shares of undesignated preferred stock. Without any further vote or action by the Company's stockholders, the Board of Directors has the authority to determine the powers, preferences, rights, qualifications, limitations or restrictions granted to or imposed upon any wholly unissued shares of undesignated preferred stock.

Rights Plan

In November 2001, the Board of Directors adopted a Rights Agreement which provided for a dividend of one Preferred Stock Purchase Right (each a “Right” and collectively, the “Rights”) for each share of common stock of the Company. Under the Rights Plan, each Right entitled stockholders to buy one ten-thousandth of a share of Series A Junior Participating Preferred Stock of QuickLogic at an exercise price of $32.50, subject to adjustment. The Rights would become exercisable only if a person or group became the beneficial owner of 15% or more of the common stock, or commenced a tender or exchange offer which would have resulted in the offeror beneficially owning 15% or more of common stock, without the approval of the Board of Directors. The Rights Agreement lapsed and the Rights expired on November 27, 2011.

Issuance of Common Stock

On November 17, 2009, the Company issued 4,305,929 shares of common stock and warrants to purchase up to an aggregate of 3,229,446 shares of common stock in a registered direct offering. The common stock and warrants were issued in units (the “Units”), with each Unit consisting of (i) one share of common stock and (ii) a warrant to purchase 0.75 of a share of common stock, at a negotiated purchase price of $1.45 per Unit. The Company received net proceeds from the offering of $5.5 million, net of placement agent's fees and other offering expenses of $774,000.

The warrants are exercisable any time after the six month anniversary of the date of issuance until the 66 month anniversary of the date of issuance, and will be exercisable at a price of $2.15 per share. The Company allocated the proceeds between the common stock and the warrants based on the relative fair value of each on the date of issuance. The estimated grant date fair value was $0.63 per warrant and was calculated based on the following assumptions used in the Black-Scholes model: expected term of 5.5 years, risk-free interest rate of 2.47%, expected volatility of 57.79% and expected dividend of 0.