Note 4 - Balance Sheet Components

12 Months Ended

Dec. 29, 2024

Notes to Financial Statements

Supplemental Balance Sheet Disclosures [Text Block]

NOTE 4 — BALANCE SHEET COMPONENTS 

	December 29,			December 31,
	2024			2023
	(in thousands)
Inventories:
Work-in-process	$	710		$	1,602
Finished goods		230			427
	$	940		$	2,029
Prepaid expenses and other current assets:
Prepaid taxes	$	498		$	498
Deferred charges		792			290
Other prepaid taxes, royalties, and other prepaid expenses		242			629
Other		134			144
	$	1,666		$	1,561
Property and equipment:
Equipment	$	9,623		$	10,503
Software tools		3,402			2,163
Tooling		14,357			7,085
Software		1,776			1,803
Furniture and fixtures		58			65
Leasehold improvements		647			580
		29,863			22,199
Accumulated depreciation and amortization		(14,164	)		(13,251	)
	$	15,699		$	8,948
Capitalized internal-use software:
Capitalized software held for internal use	$	4,607		$	3,491
Accumulated amortization		(2,156	)		(1,422	)
	$	2,451		$	2,069
Accrued liabilities:
Accrued compensation	$	865		$	1,910
Accrued employee benefits		76			57
Accrued payroll tax		124			197
Other		546			509
	$	1,611		$	2,673

The majority of the Company's deferred charges balance as of December 29, 2024 relates to the Company's software tools and related subscriptions. The Company's deferred charges balance as of December 31, 2023 relates primarily to the Company's software subscriptions, as well as legal and revolving credit facility fee accruals. The Company amortizes its deferred charges over their estimated useful lives using the straight-line method.

As of December 29, 2024 and December 31, 2023, work-in-process ("WIP") inventories, net consist primarily of $0.5 million and $0.5 million, respectively, of die wafers and $1.0 million and $1.1 million, respectively, of tested, unmarked devices held for sale, which are completed upon customer orders. During its 2024 fiscal year, the Company reclassified certain of its work-in-process and finished goods inventory in the amount of $0.7 million and $28 thousand, respectively, from current to non-current to better reflect the business cycles of its certain customers for that family of inventory. Additionally, in conduction of its annual excess and obsolete (E&O) inventory analysis, the Company determined that none of said work-in-process inventory was subject to a reserve.

The Company capitalized $7.27 million in pre-production design and development costs as tooling to be utilized under its long-term professional services contracts for the fiscal year ended December 29, 2024. The capitalized assets recognized in the period are owned by the Company. $7.09 million in pre-production design and development costs were capitalized in the fiscal year ended December 31, 2023.

The Company recorded depreciation and amortization expense of $3.6 million, $1.8 million, and $1.1 million for the years ended December 29, 2024,  December 31, 2023, and January 1, 2023, respectively. No interest was capitalized for any period presented.

Depreciation and amortization expense included approximately $0.7 million, $0.6 million, and $0.4 million in amortization expense of capitalized internal-use software for the years ended December 29, 2024,  December 31, 2023, and January 1, 2023, respectively.

Accounts receivable, net of allowances for credit losses of $18 thousand, was $2.7 million as of January 1, 2023.