Note 7 - Debt Obligations

12 Months Ended

Dec. 29, 2024

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE 7 — DEBT OBLIGATIONS

Revolving Line of Credit

On December 21, 2018 , the Company entered into a loan agreement, the QuickLogic Corporation Heritage Bank of Commerce Amended and Restated Loan and Security Agreement (as amended, the "Loan Agreement") with Heritage Bank which among other things, provided a revolving line of credit facility ("Revolving Facility") allowing the Company to draw advances up to $15 million. The Revolving Facility, as amended, includes a number of customary and restrictive financial covenants including maintaining certain minimum cash levels with the lender. On December 8, 2023, the Company entered into the Seventh Amendment to the Loan Agreement, which increased the line of credit to $20 million, extended the maturity date from  December 31, 2024 to December 31, 2025, and increased the annual facility fee to  $60 thousand from $45 thousand, payable each December 31st. Advances under the Revolving Facility bear a variable annual interest rate equal to  one half of one percentage point (0.50%) above the prime rate. On December 29, 2024, the Company had an $18 million outstanding balance on the Revolving Facility with an interest rate of 8.00%. On December 31, 2023, the Company had a  $20 million outstanding balance on the Revolving Facility with an interest rate of 9.00%.

The Company was in compliance with all loan covenants under the Loan Agreement, as of the end of the current reporting period. Additionally, the Company fully expects to renew the Revolving Facility prior to its maturity date of December 31, 2025.

Heritage Bank has a first-priority security interest in substantially all of the Company’s tangible and intangible assets to secure any outstanding amounts under the Loan Agreement.

Financing Arrangements

The amount of net assets purchased through financing arrangements on the consolidated balance sheets were $3.3 million and $1.4 million as of  December 29, 2024 and December 31, 2023, respectively. The corresponding note payable amount for these financing arrangements was $3.1 million and $1.4 million as of  December 29, 2024 and December 31, 2023, respectively. Payments related to financing arrangements were $1.4 million, $0.7 million, and $0.5 million for the years ended December 29, 2024,  December 31, 2023, and January 1, 2023, respectively. The Company's outstanding financing arrangements as of  December 29, 2024 have remaining terms of 0.64 years to 2.32 years, with a weighted average remaining term of 1.68 years. Stated and imputed interest rates for its financing arrangements outstanding as of  December 29, 2024 range from 8.00% to 9.89%, with a weighted average interest rate of 8.88%. The Company's outstanding financing arrangements as of  December 31, 2023 had remaining terms of 0.91 years to 2.25 years, with a weighted average remaining term of 1.81 years. Stated and imputed interest rates for its financing arrangements outstanding as of  December 31, 2023 ranged from 3.75% to 9.89%, with a weighted average interest rate of 8.34%.

Amounts due to be paid in Fiscal Years 2025, 2026, and 2027 are $2.1 million, $1.0 million, and $0.3 million, respectively, less amounts representing interest of $0.3 million results in the total notes payable amount of $3.1 million.