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Note 4 - Balance Sheet Components

6 Months Ended

Jul. 02, 2023

Supplemental Balance Sheet Disclosures [Text Block]

Note 4 — Balance Sheet Components

The following table provides details relating to certain balance sheet line items as of July 2, 2023, and January 1, 2023 (in thousands):

	*July 2,*			*January 1,*
	*2023*			*2023*
Accounts receivable:
Trade account receivables	$	951		$	2,707
Less: Allowance for doubtful accounts		(14	)		(18	)
		937			2,689
Inventories:
Work-in-process	$	1,871		$	1,826
Finished goods		584			667
	$	2,455		$	2,493
Other current assets:
Prepaid taxes	$	502		$	510
Deferred charges		428			295
Other prepaid taxes, royalties, and other prepaid expenses		745			500
Note receivable⁽¹⁾		1,172			—
Other		198			265
	$	3,045		$	1,570
Property and equipment, net:
Equipment	$	10,287		$	10,133
Tooling ⁽²⁾		1,668			—
Software		1,803			1,803
Furniture and fixtures		65			65
Leasehold improvements		466			466
		14,289			12,467
Less: Accumulated depreciation and amortization		(12,106	)		(12,002	)
	$	2,183		$	465
Capitalized internal-use software, net:
Capitalized internal-use software	$	2,734		$	2,370
Less: Accumulated amortization		(1,112	)		(856	)
	$	1,622		$	1,514
Accrued liabilities:
Accrued compensation	$	1,307		$	865
Accrued employee benefits		38			40
Accrued payroll tax		68			57
Other		552			547
	$	1,965		$	1,509

⁽¹⁾ On April 28, 2023, the Company converted accounts receivable for a customer in the amount of approximately $1.16 million to notes receivable (the "Note"). At the time, the Note bore an interest rate of 3.0% compounded monthly. On June 28, 2023, the Company cancelled the original note and entered into a revised promissory note with the customer, where the interest rate changed to 4.69% compounded monthly, or a 4.8% effective annual interest rate, accruing from the date of the prior note. If not prepaid prior to the Note maturity date of June 28, 2024, the principal and all accrued and unpaid interest will be due and payable to the Company. If an event of default occurs, the interest rate will increase to 10.0%. All other terms of the note remained the same.

⁽²⁾ In Q2 2023, the Company capitalized $1.67 million related to tooling to be utilized under its long-term professional services contracts. The tooling will be depreciated over an estimated useful life of seven years.