10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to ________________

Commission File No. 001-14605

GIGA-TRONICS INCORPORATED

(Exact name of registrant as specified in its charter)

California	94-2656341
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
7272 E. Indian School Rd, Suite 540, Scottsdale, AZ 85251	(833) 457-6667
(Address of principal executive offices)	Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerate filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2). Yes ☐ No ☒

There was a total of 5,931,582 shares of the Registrant’s Common Stock outstanding as of July 3, 2023.

TABLE OF CONTENTS

		Page No.
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022	4
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2023 and 2022	5
	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2023 and 2022	6
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25
Item 4.	Controls and Procedures	25
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 3.	Defaults Upon Senior Securities	27
Item 4.	Mine Safety Disclosures	27
Item 5.	Other information	27
Item 6.	Exhibits	27
SIGNATURES		29

2

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (the “Report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or our future financial performance, including our liquidity, our receipt of future orders and whether our backlog will result in orders. We have attempted to identify forward-looking statements by terminology including “anticipates,” “believes,” “expects,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predict,” “should” or “will” or the negative of these terms or other comparable terminology. These statements are only predictions; uncertainties and other factors may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels or activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Our expectations are as of the date this Report is filed, and we do not intend to update any of the forward-looking statements after the date this Report is filed to confirm these statements to actual results, unless required by law.

This Report also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other industry data. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. We have not independently verified the statistical and other industry data generated by independent parties and contained in this Report and, accordingly, we cannot guarantee their accuracy or completeness, though we do generally believe the data to be reliable. In addition, projections, assumptions and estimates of our future performance and the future performance of the industries in which we operate are necessarily subject to a high degree of risks and uncertainties due to a variety of factors, including that (i) we will continue to secure orders and backlog in 2023 and that our Giga-tronics legacy business development efforts to generate new orders will improve, (ii) we will secure adequate cash to bridge operations, (iii) the ongoing geopolitical military conflict (including, the Russian war on Ukraine, tensions with China and Taiwan and unrest in the Middle East) will continue, (iv) supply chain turmoil and inflation will continue to affect customer demand for our product offerings, (v) defense budgets for electronic technology solutions that we provide will not decrease, (vi) our key medical customer will not reduce expected orders, (vii) the effect that the banking crisis and the slowdown in the capital markets and securities offerings will have on our ability to raise capital, and (viii) those other risks described in “Item 1A - Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022 and throughout this report. These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.

3

PART I – FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

GIGA-TRONICS INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands except share data)

	March 31, 2023			December 31, 2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	2,504		$	2,195
Accounts receivable, net		5,396			5,502
Accrued revenue		2,695			2,479
Receivable, related party		941			1,242
Inventories		7,963			7,695
Prepaid expenses and other current assets		726			625
TOTAL CURRENT ASSETS		20,225			19,738
Intangible assets, net		3,405			3,476
Goodwill		8,948			9,054
Property and equipment, net		2,073			2,240
Right-of-use assets		3,593			3,940
Other assets		507			506
TOTAL ASSETS	$	38,751		$	38,954
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses	$	6,723		$	6,913
Senior secured convertible notes		1,660			—
Notes payable		1,715			1,797
Warrant liabilities		734			—
Operating lease liability, current		942			1,067
Other current liabilities		4,024			4,254
TOTAL CURRENT LIABILITIES		15,798			14,031
LONG TERM LIABILITIES
Operating lease liability, non-current		2,787			3,014
Notes payable		282			322
Senior secured convertible notes, related party		9,442			10,008
Other liabilities		399			238
TOTAL LIABILITIES		28,708			27,613
STOCKHOLDERS' EQUITY
Preferred stock; no par value; Authorized - 1,000,000 shares
Series F Preferred Stock, 520 shares designated; 514.8 shares issued and outstanding at March 31, 2023 and December 31, 2022 (liquidation preference of $12,870 at March 31, 2023 and December 31, 2022)	$	4,990		$	4,990
Common Stock; no par value; 100,000,000 shares authorized, 5,931,582 shares issued and outstanding at March 31, 2023; 13,333,333 shares authorized, 5,931,582 shares issued and outstanding at December 31, 2022		36,106			35,141
Accumulated deficit		(30,190	)		(27,726	)
Accumulated other comprehensive loss		(1,592	)		(1,779	)
TOTAL STOCKHOLDERS' EQUITY		9,314			10,626
Non-controlling interest		729			715
TOTAL STOCKHOLDERS' EQUITY		10,043			11,341
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	38,751		$	38,954

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

4

GIGA-TRONICS INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(In thousands except per share data)

	For the Three Months Ended March 31,
	2023			2022
Revenues	$	8,723		$	7,244
Cost of revenues		6,560			4,751
Gross profit		2,163			2,493
Operating expenses
General and administrative		4,688			2,197
Research and development		723			489
Selling and marketing		543			298
Total operating expenses		5,954			2,984
Loss from continuing operations		(3,791	)		(491	)
Other (expense) income
Interest expense, related party		—			(12	)
Interest expense		(213	)		(67	)
Change in fair value of senior secured convertible notes, related party		566			—
Change in fair value of senior secured convertible notes and warrant liabilities		939			—
Foreign currency exchange adjustment		44			—
Other income (expense)		(2	)		60
Total other (expense) income, net		1,334			(19	)
Loss from continuing operations before income taxes		(2,457	)		(510	)
Income tax benefit (provision)		7			—
Net loss		(2,450	)		(510	)
Net loss (gain) attributable to non-controlling interest		(14	)		13
Net loss attributable to common stockholders	$	(2,464	)	$	(497	)
Net loss per common share, basic and diluted	$	(0.42	)	$	(0.17	)
Weighted average common shares outstanding, basic and diluted		5,932			2,920
Comprehensive loss
Loss available to common stockholders	$	(2,464	)	$	(497	)
Foreign currency translation adjustments		187			(391	)
Total comprehensive loss	$	(2,277	)	$	(888	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

5

GIGA-TRONICS INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

Three Months Ended March 31, 2023

(In thousands except share data)

	Preferred Stock				Common Stock
	Shares		Amount		Shares		Amount		Accumulated Deficit				Accumulated Other Comprehensive Loss				Non-Controlling Interest		Total Stockholder's Equity
Balance at January 1, 2023		515	$	4,990		5,931,582	$	35,141		$	(27,726	)		$	(1,779	)	$	715		$	11,341
Stock-based compensation		—		—		—		106			—				—			—			106
Warrant issued with notes payable		—		—		—		859			—				—			—			859
Net loss		—		—		—		—			(2,464	)			—			—			(2,464	)
Foreign currency translation adjustments		—		—		—		—			—				187			—			187
Net income attributable to non-controlling interest		—		—		—		—			—				—			14			14
Balance at March 31, 2023		515	$	4,990		5,931,582	$	36,106		$	(30,190	)		$	(1,592	)	$	729		$	10,043

6

GIGA-TRONICS INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

Three Months Ended March 31, 2022

(In thousands except share data)

	Preferred Stock				Common Stock
	Shares		Amount		Shares		Amount		Accumulated Deficit				Accumulated Other Comprehensive Loss				Non-Controlling Interest			Total Stockholder's Equity
Balance at January 1, 2022		515	$	4,990		2,920,085	$	26,682		$	(9,988	)		$	(240	)	$	1,056			$	22,500
Stock-based compensation		—		—		—		41			—				—			—				41
Capital contribution from parent		—		—		—		517			—				—			—				517
Net loss		—		—		—		—			(497	)			—			—				(497	)
Foreign currency translation adjustments		—		—		—		—			—				(391	)		—				(391	)
Net loss attributable to non-controlling interest		—		—		—		—			—				—			(13	)			(13	)
Balance at March 31, 2022		515	$	4,990		2,920,085	$	27,240		$	(10,485	)		$	(631	)	$	1,043			$	22,157

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

7

GIGA-TRONICS INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

	For the Three Months Ended
	March 31, 2023			March 31, 2022
Cash flows from operating activities:
Net loss	$	(2,450	)	$	(510	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		181			142
Amortization		73			80
Amortization of right-of-use assets		299			31
Change in fair value of senior secured convertible notes, related party		(566	)		—
Change in fair value of senior secured convertible notes		(143	)		—
Change in fair value of warrants issued with senior secured convertible notes		(796	)		—
Increase in capital contribution from parent for corporate overhead		—			340
Stock-based compensation		106			41
Compensation warrant issued in connection with senior secured convertible notes		858			—
Offering costs in connection with senior secured convertible notes		653			—
Changes in operating assets and liabilities:
Accounts receivable		58			(348	)
Accrued revenue		(274	)		(326	)
Inventories		(235	)		(475	)
Prepaid expenses and other current assets		(98	)		222
Other assets		—			(409	)
Accounts payable and accrued expenses		(40	)		1,531
Accounts payable, related parties					(53	)
Other current liabilities		(211	)		(657	)
Other non-current liabilities		154			—
Lease liabilities		(305	)		(33	)
Net cash used in operating activities		(2,736	)		(424	)
Cash flows from investing activities:
Purchase of property and equipment		(27	)		(129	)
Net cash used in investing activities		(27	)		(129	)
Cash flows from financing activities:
Capital contribution from parent		—			177
Proceeds from accounts receivables, related party		301			—
Proceeds from senior secured convertible notes, net of issuance costs		2,680			—
Proceeds from notes payable		—			294
Payments on notes payable		(77	)		—
Payments on revolving credit facilities, net		—			(1	)
Net cash provided by financing activities		2,904			470
Effects of exchange rate changes on cash and cash equivalents		168			(619	)
Net increase/(decrease) in cash and cash equivalents		309			(702	)
Cash and cash equivalents at beginning of period		2,195			1,599
Cash and cash equivalents at end of period	$	2,504		$	897
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	$	213		$	49

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

8

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Description of Business

Giga-tronics Incorporated (“GIGA”) through its subsidiaries (collectively, the “Company”), designs, manufactures and distributes specialized electronics equipment, automated test solutions, power electronics, supply and distribution solutions, as well as radio, microwave and millimeter wave communication systems and components for a variety of applications with a focus on the global defense industry. GIGA also offers bespoke technology solutions for mission critical applications in the medical, industrial, transportation and telecommunications markets.

GIGA has two subsidiaries Microsource Inc. (“Microsource”) and Gresham Holdings, Inc. (formerly known as Gresham Worldwide, Inc.) (“GWW”). GIGA manages its acquired operations through its wholly owned subsidiary GWW. GIGA is a majority owned subsidiary of Ault Holdings, Inc., a Delaware corporation (“Ault” or “Parent”) and currently operates as an operating segment of Ault. GWW has three wholly-owned subsidiaries, Gresham Power Electronics Ltd. (“Gresham Power”), Relec Electronics Ltd. (“Relec”), and Enertec Systems 2001 Ltd. (“Enertec”), and one majority owned subsidiary, Microphase Corporation (“Microphase”). GIGA manufactures specialized electronic equipment for use in military test and airborne operational applications. Our operations consist of three business segments:

•Radio Frequency (”RF”) Solutions (”RF Solutions”) – consists of Microphase which is located in Connecticut. Microphase designs and manufactures custom microwave products for military applications and generates revenue primarily through sole-source production contracts for custom engineered components and RADAR filters.

•Power Electronics & Displays - consists of two subsidiaries, namely Gresham Power and Relec located in the United Kingdom which primarily produce power conversion systems.

•Precision Electronic Solutions – consists of one subsidiary and one division, namely Enertec located in Israel and the Giga-tronics Division including Microsource located in California and New Hampshire, primarily producing test systems and RF filters for the defense industries.

Note 2. Liquidity and Financial Condition

The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred recurring net losses and operations have not provided cash flows. In view of these matters, there is substantial doubt about our ability to continue as a going concern. The Company intends to finance its future development activities and its working capital needs largely through the sale of equity securities with some additional funding from other sources, including term notes until such time as funds provided by operations are sufficient to fund working capital requirements. The unaudited condensed consolidated financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

Our primary sources of liquidity have historically been funded by our parent company, Ault. The extent of continued support from Ault is not assured as we seek additional financing from third parties. There is substantial doubt that we will have sufficient cash to meet our needs over the next 12 months. Our ability to obtain additional financing is subject to several factors, including market and economic conditions, our performance and investor and lender sentiment with respect to us and our industry. If we are unable to raise additional financing in the near term as needed, our operations and production plans may be scaled back or curtailed and our operations and growth would be impeded.

Our near term fixed commitments for cash expenditures are primarily for payments for employee salaries, operating leases, accounts payables, and inventory purchase commitments.

Note 3. Basis of Presentation and Significant Accounting Policies

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Regulation S-X and do not include all the information and disclosures required by generally accepted accounting principles in the United States (”US”), (“GAAP”). The Company has made estimates and judgments affecting the amounts reported in the Company’s unaudited condensed consolidated financial statements and the accompanying notes. The actual results experienced by the Company may differ materially from the Company’s estimates. The unaudited condensed consolidated financial information is unaudited but reflects all normal adjustments that are, in the opinion of management, necessary to provide a fair statement of results for the interim periods presented.

These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report”), filed with the Securities and Exchange Commission (the “SEC”) on May 11, 2023. The condensed consolidated balance sheet as of December 31, 2022 included in this report was derived from the Company’s audited 2022 financial statements contained in the above referenced 2022 Annual Report. Results of the three months ended March 31, 2023, are not necessarily indicative of the results to be expected for the full year ending December 31, 2023.

Basis of Presentation

9

Other than as noted below, there have been no material changes to the Company’s significant accounting policies previously disclosed in the 2022 Annual Report.

Principles of Consolidation

The Acquisition was accounted for as a reverse recapitalization with GWW being the accounting acquirer and GIGA being the acquired company for accounting purposes. All historical financial information presented in the unaudited condensed consolidated financial statements represents the accounts of GWW and its wholly owned and majority owned subsidiaries. The unaudited condensed consolidated financial statements after completion of the Acquisition will include the assets and liabilities and operations of GIGA and its subsidiaries from the Closing Date of the Acquisition. All intercompany transactions and balances have been eliminated. The shares and net loss per common share prior to the merger have been retroactively restated to reflect the share exchange ratio established in the merger.

Recently Adopted Accounting Standards

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments - Credit Losses (Topic 326),” (“ASU 2016-13”) to improve information on credit losses for financial assets and net investment in leases that are not accounted for at fair value through net income. ASU 2016-13 replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. This guidance was effective for the Company beginning on January 1, 2023. The adoption of this guidance did not have a material impact on the Company’s unaudited condensed consolidated financial statements.

In January 2017, FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminated the calculation of implied goodwill fair value. Instead, companies will record an impairment charge based on the excess of a reporting unit’s carrying amount of goodwill over its fair value. This guidance was effective for the Company beginning on January 1, 2023. The adoption of this guidance did not have a material impact on the Company’s unaudited condensed consolidated financial statements.

Note 4. Revenue Disaggregation

The Company’s disaggregated revenues are comprised of the following (In thousands):

	Three Months Ended
Category	March 31, 2023		March 31, 2022
Primary Geographical Markets
North America	$	2,328	$	1,511
Europe		2,832		2,179
Middle East and other		3,563		3,554
Total revenue	$	8,723	$	7,244
Major Goods
RF/microwave filters	$	1,247	$	1,511
Detector logarithmic video amplifiers		545		—
Power supply units and systems		2,694		2,479
Healthcare diagnostic systems		1,193		—
Defense systems		3,044		3,254
Total revenue	$	8,723	$	7,244
Timing of Revenue Recognition
Goods transferred at a point in time	$	5,087	$	3,511
Services transferred over time		3,636		3,733
Revenue from contracts with customers	$	8,723	$	7,244

Note 5. Accounts receivables, related party

The following table summarizes the changes in the Company’s accounts receivables, related party for the three months ended March 31, 2023 (In thousands):

Description	Accounts receivables, related party
Balance as of January 1, 2023	$	1,242
Receipts during the period		(301	)
Balance as of March 31, 2023	$	941

10

Note 6. Inventories, net

Inventories, net, are comprised of the following (In thousands):

Category	March 31, 2023		December 31, 2022
Raw materials	$	3,120	$	2,758
Work-in-progress		3,195		3,186
Finished goods		1,648		1,751
Total	$	7,963	$	7,695

Note 7. Property and Equipment, net

Property and Equipment, net, are comprised of the following (In thousands):

Category	March 31, 2023			December 31, 2022
Machinery and equipment	$	6,920		$	6,912
Computer, software and related equipment		1,877			1,858
Leasehold improvements and office equipment		2,160			2,148
Total		10,957			10,918
Less: accumulated depreciation and amortization		(8,884	)		(8,678	)
Property and equipment, net	$	2,073		$	2,240

Depreciation expenses related to the property and equipment for the three month periods ended March 31, 2023 and 2022 was $181,000 and $142,000, respectively.

Note 8. Intangible Assets, net

Intangible assets, net, are comprised of the following (In thousands):

Category	Useful Life	March 31, 2023			December 31, 2022
Trademark	Indefinite life	$	1,503			$	1,493
Customer list	10-14 years		3,787				3,825
Total			5,290				5,318
Less: accumulated depreciation and amortization			(1,885	)			(1,842	)
Intangible assets, net		$	3,405			$	3,476

Amortization expense for the three month periods ended March 31, 2023 and 2022 was $73,000 and $80,000, respectively.

The following table presents estimated amortization expense for each of the succeeding five calendar years and thereafter (In thousands):

Fiscal Year	March 31, 2023
2023 (remainder)	$	242
2024		323
2025		323
2026		323
2027		323
2028		323
Thereafter		45
	$	1,902

11

Note 9. Goodwill

The following table summarizes the changes in the Company’s goodwill for the three months ended March 31, 2023 (In thousands):

Description	Goodwill
Balance as of January 1, 2023	$	9,054
Effect of exchange rate changes		(106	)
Balance as of March 31, 2023	$	8,948

Note 10. Other Current Liabilities

As of March 31, 2023 and December 31, 2022, other current liabilities consists of the following (In thousands):

Category	March 31, 2023		December 31, 2022
Accrued payroll and payroll taxes	$	2,412	$	2,401
Deferred revenue		1,256		1,028
Other accrued expense		356		825
Other current liabilities	$	4,024	$	4,254

Note 11. Leases

Operating leases

We have operating leases for office space. Our leases have remaining lease terms from 6 months to 8.5 years, some of which may include options to extend the leases perpetually, and some of which may include options to terminate the leases within 1 year.

The components of lease expenses for the three months ended March 31, 2023 and 2022 were as follow (In thousands):

	Three Months Ended		Three Months Ended
	March 31, 2023		March 31, 2022
Operating lease cost	$	356	$	273

Supplemental unaudited condensed consolidated balance sheet information related to operating leases was as follows:

	Three Months Ended		Three Months Ended
	March 31, 2023		March 31, 2022
Weighted-average remaining lease term - operating leases	5.6 years		8.5 years
Weighted-average discount rate - operating leases		N/A%		8	%

Maturity of lease liabilities under our non-cancellable operating leases as of March 31, 2023 are as follow (In thousands):

Fiscal Year	Operating leases
2023 (remaining)	$	963
2024		932
2025		770
2026		509
2027		357
2028		357
Thereafter		760
Total future minimum lease payments		4,648
Less: imputed interest		(919	)
Present value of lease liabilities	$	3,729

Note 12. Fair value of financial instruments

Recurring Fair Value Measurements

The fair value hierarchy table for the periods indicated is as follows:

12

	Fair value measurement on a recurring basis at reporting date using (1)
(In thousands)	Level 1		Level 2		Level 3		Total
Balance at March 31, 2023
Senior Secured Convertible Note (2), related party	$	—	$	—	$	3,717	$	3,717
Senior Secured Convertible Note (3), related party		—		—		5,725		5,725
Senior Secured Convertible Note (4)		—		—		1,660		1,660
Warrant liability		—		—		734		734
Total liabilities measured at fair value	$	—	$	—	$	11,836	$	11,836
Balance at December 31, 2022
Senior Secured Convertible Note (2), related party	$	—	$	—	$	3,940	$	3,940
Senior Secured Convertible Note (3), related party		—		—		6,068		6,068
Total liabilities measured at fair value	$	—	$	—	$	10,008	$	10,008

1 There were no transfers between the respective Levels during the three month period ended March 31, 2023 and the year ended December 21, 2022.

The Company assesses the inputs used to measure fair value using the three-tier hierarchy based on the extent to which inputs used in measuring fair value are observable in the market. For investments where little or no public market exists, management’s determination of fair value is based on the best available information which may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration various factors including earnings history, financial condition, recent sales prices of the issuer’s securities and liquidity risks.

Below are the changes to level 3 measured liabilities:

	Level 3 measured
	liabilities
Fair value at December 31, 2022	$	10,008
Fair value of senior secured convertible notes issued		1,803
Fair value of warrants issued with senior secured convertible notes		1,530
Change in fair value		(1,505	)
Fair value at March 31, 2023	$	11,836

Note 13. Senior Secured Convertible Notes (4) and Warrants

On January 11, 2023, the Company entered into a Securities Purchase Agreement (“SPA”) pursuant to which the Company issued $3.3 million 10% original issue discount Senior Secured Convertible Notes (4) (the “Notes”) and five-year common stock purchase warrants, for total gross proceeds of $3,000,000.

Senior Secured Convertible Notes (4)

Notes payable at March 31, 2023 and December 31, 2022, were comprised of the following :

Fair value (In thousands)	Total
Balance as of December 31, 2022	$	—
Issuance of Senior Secured Convertible Notes (4) at January 11, 2023		1,803
Change in fair value of Senior Secured Convertible Notes		(143	)
Balance as of March 31, 2023	$	1,660

The Notes are secured by the assets of the Company pursuant to a Security Agreement entered into for such purpose, and are senior to the indebtedness payable to Ault and Ault Lending, pursuant to a Subordination Agreement entered into in connection with the SPA.

The Notes mature on the earlier of (i) October 6, 2023, or (ii) completion of an uplisting to a national securities exchange (an “Uplist Transaction”).

The Notes accrue interest at a rate of 6% per annum payable monthly, which increases to 18% upon an event of default. In addition, under the Notes upon an event of default the Company is required to pay 20% of its consolidated revenues monthly on each interest payment date in reduction of the principal amount of the Notes then outstanding.

The Notes provide for certain events of default which include:

•failure of the Uplist Transaction to occur by the maturity date;

•failure to maintain effectiveness of the registration statement under the Registration Rights Agreement;

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•suspension of trading of the Company’s common stock for five consecutive trading days;

•failure to timely deliver shares issuable upon conversion of the Notes or exercise of the Warrants;

•failure to timely make payments under the Notes;

•default under other indebtedness, and

•certain other customary events of default, subject to certain exceptions and limitations

Upon an event of default, the holders will have the right to require the Company to prepay the Notes at a 125% premium (“Premium”). Further, upon a bankruptcy event of default or a change of control event, the Company will be required to prepay the Notes at a Premium. If the conversion price falls below $0.25, the Company may also elect to prepay the notes at a 125% Premium.

The Notes contain customary restrictive covenants including covenants against incurring new indebtedness or liens, changing the nature of its business, transfers of assets, transactions with affiliates, and issuances of securities, subject to certain exceptions and limitations.

Senior Secured Convertible Notes, Fair Value

The Company elected the fair value option with respect to the Senior Secured Convertible notes. The fair value of the Notes liability was determined based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The Company used the probability-weighted expected return method ("PWERM") to value the Notes liability. This approach involved the estimation of future potential outcomes for the Notes holders, as well as values and probabilities associated with each respective potential outcome.

On January 11, 2023, the Company ascribed following probabilities to four possible scenarios:

	March 31, 2023				January 11, 2023
Scenario description	Estimated probability			Estimated date	Estimated probability			Estimated date
Uplist transaction		10.0	%	September 30, 2023		60.0	%	June 30, 2023
Held to maturity		60.0	%	October 6, 2023		10.0	%	October 6, 2023
Change of control		5.0	%	September 30, 2023		5.0	%	September 30, 2023
Default/ dissolution		25.0	%	September 1, 2023		25.0	%	September 1, 2023
Total		100.0	%			100.0	%

The Company filed an S-1 registration statement on February 13, 2023, for Ault to distribute its common and preferred shares of GIGA as a dividend to its stockholders, which was a critical step for the Uplist Transaction scenario. By March 31, 2023, the approval of the S-1 registration statement was delayed and the Company reduced the probability to complete the Uplist prior to September 30, 2023 to 10%, and increased the likelihood that the Notes liability will remain outstanding until maturity to 60%.

Based on these estimates, the Company arrived at the fair value of the Notes liability as shown below:

Senior Secured Convertible Notes (4):	March 31, 2023			January 11, 2023
Fair Value (In thousands)	$	1,660			$	1,803
Face value principle payment (In thousands)	$	3,333			$	3,333
Face value at Premium (In thousands)	$	4,166			$	4,166
Conversion Price	$	0.25			$	0.78
Maturity Date	October 6, 2023				October 6, 2023
Interest rate		6.00	%			6.00	%
Valuation technique	PWERM				PWERM

The Company recorded the change in the fair value of the Notes of $143,000 on March 31, 2023 in “Other income and expense”.

Warrants

The Warrants entitle the holders to purchase a total of 1,666,666 shares of common stock for a five-year period from issuance, at an exercise price determined as follows: (i) beginning on the issuance date and for a period of 90 days thereafter, $0.78, (ii) if the Uplist Transaction has occurred as of the date of exercise, the lower of (A) $0.78 and (B) 110% of the per share offering price to the public in the Uplist Transaction, and (iii) if neither of (i) and (ii) apply, the lower of (A) $0.78 and (B) 90% of the lowest VWAP for the 10 trading days prior to the date of the exercise, subject to adjustment including downward adjustment upon any dilutive issuance of securities. If the Uplist Transaction is not completed prior to the maturity date of the Notes, the number of shares of common stock that may be purchased upon exercise of the Warrants will be doubled, without an adjustment to the exercise price.

The Warrants are liability classified and the Company performed a fair value analysis as shown below:

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Warrant liability, current:	March 31, 2023			January 11, 2023
Fair Value (In thousands)	$	734		$	1,530
Number of warrants	$	1,666,667		$	1,666,667
Closing price (OTCB: GIGA)	$	0.30		$	0.80
Volatility		143.30	%		133.60	%
Risk-free discount rate		3.60	%		3.72	%
Term	5 years			5 years
Expiration date	January 11, 2028			January 11, 2028
Valuation technique	Monte Carlo simulation			Monte Carlo simulation

The Company recorded the change in the fair value of the warrants of $796,000 on March 31, 2023 as a gain in “Other income and expense”.

Placement Agent Warrant

Spartan Capital Securities, LLC (the “Placement Agent”) served as placement agent in the offering and received a cash commission in the amount of 8% of the gross proceeds, or $240,000. In addition, we paid the Placement Agent an expense allowance of $30,000. Furthermore, we issued the Placement Agent five-year warrants (the “Placement Agent Warrants”) to purchase a number of shares of common stock equal to 8% of the total number of shares of common stock underlying the Notes and Warrants sold in the offering, or 1,200,000 shares. The Placement Agent Warrants have an exercise price of 110% of the Warrant exercise price. The Company performed a fair value analysis for the 1,200,000 warrants similarly to the warrants analysis described above, and ascribed a fair value of $858,000 as of January 11, 2023. The warrants are classified as equity:

	January 11, 2023
Fair value (In thousands)	$	858
Number of warrants		1,200,000
Closing price (OTCB: GIGA)	$	0.80
Volatility		133.6	%
Risk-free discount rate		3.72	%
Contractual term in years	5 years
Expiration date	January 11, 2028
Valuation technique	Monte Carlo simulation

Note 14. Notes Payable

Notes payable at March 31, 2023 and December 31, 2022, were comprised of the following (In thousands):

	Due date	Interest rate			March 31, 2023			December 31, 2022
Bank credit			3.7	%		1,580			1,623
Other short-term notes payable			3.0	%		417			425
Financed receivables	Cancelled January 10, 2023		8.5	%		—			71
Total notes payable						1,997			2,119
Less: current portion						(1,715	)		(1,797	)
Notes payable - long-term portion					$	282		$	322

Note 15. Senior Secured Convertible Notes, Related Party

The following table summarizes the changes in the Senior secured convertible notes, related party for the three months ended March 31, 2023 (In thousands):

	Senior Secured			Senior Secured
	Convertible Note (2)			Convertible Note (3)			Total
Fair value at December 31, 2022	$	3,940		$	6,068		$	10,008
Change in fair value of senior secured convertible notes, related party		(223	)		(343	)		(566	)
Balance at March 31, 2023	$	3,717		$	5,725		$	9,442

The change of $566,000 in the fair value of the Senior secured convertible notes as of March 31, 2023 compared to December 31, 2022 was recorded as a change in fair value of senior secured convertible notes and warrant liabilities within Other (expense) income on the unaudited condensed consolidated statement of operations.

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The significant assumptions associated with the fair value of the Notes payable, related party as of the dates indicated, are as follows:

	March 31, 2023			December 31, 2022
Face value principle payment (In thousands)	$	11,133		$	11,133
Conversion Price	$	0.78		$	0.78
Maturity Date	December 31, 2024			December 31, 2024
Interest rate		10.00	%		10.00	%
Discount rate		27.30	%		27.30	%
Valuation technique	PWERM			PWERM
Fair Value (In thousands)	$	9,442		$	10,008

Note 16. Related Party Transactions

Allocation of General Corporate Expenses

Ault provided human resources, accounting, and other services to Gresham until September 8, 2022. Gresham obtained its business insurance under Ault’s policies. The accompanying financial statements of Gresham include allocations of these expenses. The allocation method calculates the appropriate share of overhead costs to Gresham by using Gresham’s revenue as a percentage of total revenue of Ault. Gresham believes the allocation methodology used is reasonable and has been consistently applied, and results in an appropriate allocation of costs incurred. However, these allocations may not be indicative of the cost that would have been incurred had Gresham been a stand-alone entity or of future costs. After the Business Combination on September 8, 2022, GIGA absorbed these costs and no expenses were allocated by Ault. Ault allocated $340,000 for the three month period ended March 31, 2022 (In thousands):

	Three Months Ended
	March 31, 2023		March 31, 2022
Related party transactions	$	—	$	340

Net Transfers From Ault

The Company received funding from Ault to cover any shortfalls on operating cash requirements. In addition to the allocation of general corporate expenses, the Company received $0 and $177,000 from Ault for the quarters ended March 31, 2023 and 2022, respectively.

Note 17. Stock-based Compensation

The stock-based compensation expense included in net loss for the three month period ended March 31, 2023 and 2022 was $106,000 and $41,000, respectively recognized in general and administrative expenses.

As of March 31, 2023, there was $509,000 of unrecognized compensation cost related to non-vested stock-based compensation arrangements expected to be recognized over a weighted average period of 1.2 years.

Note 18. Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and trade receivables. Trade receivables of the Company and its subsidiaries are mainly derived from sales to customers located primarily in the U.S., Europe and Israel. The Company performs ongoing credit evaluations of its customers and to date has not experienced any material losses. An allowance for doubtful accounts is determined with respect to those amounts that the Company have determined to be doubtful of collection.

The following table provides the percentage of total revenues attributable to a single customer from which 10% or more of total revenues are derived:

	Three Months Ended					Three Months Ended
Segment	March 31, 2023		% of Total Revenue			March 31, 2022		% of Total Revenue
Customer A	$	2,068		24	%	$	2,505		35	%
Customer B	$	1,052		12	%	$	—		—	%
Customer C	$	872		10	%	$	760		10.0	%

Note 19. Net Loss Per Share

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Basic net loss per share is computed by dividing net loss by weighted average number of common shares outstanding for the period (excluding outstanding stock options). Diluted net loss per share is computed using the weighted-average number of common shares outstanding for the period plus the potential effect of dilutive securities which are convertible into common shares (using the treasury stock method), except in cases in which the effect would be anti-dilutive. The following is a reconciliation of the numerators and denominators used in computing basic and diluted net loss per share:

(In thousands except share data)	Three Months Ended
	March 31, 2023			March 31, 2022
Numerator
Net loss attributable to common stockholders	$	(2,464	)	$	(497	)
Denominator
Basic weighted average shares outstanding		5,932			2,920
Effect of dilutive securities		—			—
Diluted weighted-average shares		5,932			2,920
Net loss per share attributable to common stockholders, basic and diluted	$	(0.42	)	$	(0.17	)

For the three month periods ended March 31, 2023 and 2022, because the Company was in a loss position, basic net loss per share is the same as diluted net loss per share as the inclusion of the potential common shares would have been anti-dilutive.

The following table sets forth potential shares of common stock that are not included in the diluted net loss per share calculation above because to do so would be anti-dilutive for the periods indicated:

Anti-dilutive securities	March 31, 2023		March 31, 2022
Common shares issuable upon exercise of stock options		789		500
Common shares issuable on conversion of series F preferred stock		3,960		3,960
Common shares issuable upon exercise of warrants		6,833		—
Restricted stock awards		250		250
Common shares issuable upon conversion of senior secured convertible notes		27,590		—
Total		39,422		4,710

Note 20. Commitments and Contingencies

From time to time, the Company is subject to various claims and legal proceedings that arise in the ordinary course of business. The Company accrues for losses related to litigation when a potential loss is probable, and the loss can be reasonably estimated. As of March 31, 2023, the Company was not party to any material legal proceedings for which a loss was probable or an amount was accrued.

As of March 31, 2023 and 2022, Enertec’s guarantees balance from Hapoalim bank was $3.8 million and $4.2 million, respectively for project implementation fees which are released upon delivery of the project products to the customer.

Note 21. Segment Information

The Company has three reportable segments as of March 31, 2023. Prior to the Acquisition, GWW operated as two operating segments but aggregated its results into one reportable segment based on similarity in economic characteristics, other qualitative factors and the objectives and principals of Accounting Standards Codification 280, Segment Reporting.

The following data presents the revenues, expenditures and other operating data of the Company’s operating segments for the three months ended March 31, 2023 and 2022 (In thousands):

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	Three Month Period Ended March 31, 2023														Three Month Period Ended March 31, 2022
Description	Precision Electronic Solutions			Power Electronics & Displays				RF Solutions			Total			Precision Electronic Solutions				Power Electronics & Displays			RF Solutions			Total
Revenue	$	3,941			$	2,991		$	1,791		$	8,723			$	3,254		$	2,479		$	1,511		$	7,244
Cost of revenue		3,210				2,112			1,238			6,560				2,316			1,594			842			4,751
Gross profit		730				879			554			2,163				939			886			669			2,493
Operating expenses		2,791				1,682			1,481			5,954				1,117			1,028			839			2,984
Other income (expense), net and income tax benefit (provision)		(560	)			(587	)		(187	)		(1,334	)			26			(15	)		8			19
Loss from continuing operations before income taxes	$	(1,502	)		$	(215	)	$	(740	)	$	(2,457	)		$	(203	)	$	(128	)	$	(178	)	$	(510	)
Assets (at period end)	$	19,402			$	8,697		$	10,652		$	38,751			$	17,206		$	7,564		$	9,781		$	34,550

Note 22. Consolidated Proforma Unaudited Financial Statements

The following unaudited proforma combined financial information is based on the historical financial statements of the Company and Giga-tronics and subsidiaries after giving effect to the Company’s acquisition of the companies as if the acquisition occurred on January 1, 2022.

The following unaudited proforma information does not purport to present what the Company’s actual results would have been had the acquisition occurred on January 1, 2022, nor is the financial information indicative of the results of future operations. The following table represents the unaudited consolidated proforma results of operations for the three months ended March 31, 2023 and March 31, 2022, as if the acquisition occurred on January 1, 2022.

Proforma, unaudited (In thousands)	Gresham
Three months ended March 31, 2023	Worldwide, Inc.			Giga-tronics			Proforma Adjustments		Proforma Unaudited
Net Sales	$	8,293		$	430		$	—	$	8,723
Cost of Sales		5,880			680			—		6,560
Operating expenses		4,284			1,670			—		5,954
Other income (expense)		807			527			—		1,334
Income tax benefit		7			—			—		7
Net gain attributable to non-controlling interest		14			—			—		14
Net loss attributable to common stockholders	$	(1,070	)	$	(1,394	)	$	—	$	(2,464	)
Proforma, unaudited (In thousands)	Gresham
Three months ended March 31, 2022	Worldwide, Inc.			Giga-tronics			Proforma Adjustments		Proforma Unaudited
Net Sales	$	7,244		$	1,436		$	—	$	8,680
Cost of Sales		4,751			1,036			—		5,787
Operating expenses		2,984			1,555			—		4,539
Other income (expense)		(19	)		(17	)		—		(36	)
Income tax provision		—			—			—		—
Net loss attributable to non-controlling interest		(13	)		—			—		(13	)
Deemed dividend on Series E preferred stock		—			(2	)				(2	)
Net loss attributable to common stockholders	$	(497	)	$	(1,174	)	$	—	$	(1,671	)

Note 23. Subsequent Events

Ault provided payments totaling $816,822, from April 1, 2023 through July 4, 2023 on account of receivables, related party.

Related party loans of $100,000 with zero percent interest and no due date were issued in May 2023.

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ITEM 2 - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

On September 8, 2022, the Company acquired 100% of the capital stock of Gresham from Ault in exchange for 2,920,085 shares of the Company’s common stock and 514.8 shares of Series F that are convertible into an aggregate of 3,960,043 shares of the Company’s common stock. The Company also assumed Gresham’s outstanding equity awards representing the right to receive up to 749,626 shares of the Company’s common stock, on an as-converted basis.

The Business Combination is accounted for as a reverse recapitalization with Gresham being the accounting acquirer and the Company being the acquired company for accounting purposes. Accordingly, all historical financial information presented in the consolidated financial statements represent the accounts of Gresham and its subsidiaries. The shares and net loss per common share prior to the business combination have been retroactively restated reflecting the exchange ratio established in the Business Combination.

The Company manufactures specialized electronic equipment for use in military test and airborne operational applications. Our operations consist of three business segments, the “Precision Electronic Solutions” group, the “Power Electronics & Displays” group, and the “RF Solutions” group. The RF Solutions group consists of Microphase located in Connecticut. The group designs and manufactures custom microwave products for military applications in the air, on land and at sea and generates revenue mostly through sole-source production contracts for custom engineered components and RADAR filters. Microphase produces fixed filters for the F-35 aircraft, shipboard applications and jammer systems to counter improvised explosive devices on land and produces log-video amplifiers for European military aircraft as well as for the U.S. Air Force B1B bomber. The engineering of each RF device variant is typically funded by governments through the respective US or European prime contractors.

The Power Electronics & Displays group consists of two subsidiaries, namely Gresham Power and Relec located in the United Kingdom which primarily produce, market and sell power conversion systems. The Precision Electronic Solutions group consists of Enertec located in Israel and the Giga-tronics Division located in California and New Hampshire primarily producing systems and providing services for the defense and health industries.

Microsource, which is part of the Precision Electronic Solutions group, develops and manufactures sophisticated RADAR filters used in fighter aircraft. Microsource’s primary business is the production of Ytrium-Iron-Garnet (“YIG”) based microwave components designed for a specific customer’s intended operational application. Microsource produces a line of tunable, synthesized band reject filters for solving interference problems in RADAR/EW applications as well as low noise oscillators used on shipboard and land-based self-protection systems. Microsource designs components based upon the Company’s proprietary YIG technology, for each customer’s unique requirement, generally at the customer’s expense. The Giga-tronics Division including Microsource recently executed a Reduction in Force (”RIF”) due to its low backlog and near term revenue forecasts.

COVID-19 Impact

The Company’s businesses were materially affected by the COVID-19 pandemic. In January 2022, Israel experienced a fifth wave of COVID-19 with the Omicron variant. Many of Enertec’s workers became ill and/or worked from home. Despite this disruption, it did not materially impact Enertec’s operations. In February 2023, many workers of the Microsource subsidiary became infected with COVID-19, and the Dublin facility had to shut down for a week.

Gresham Worldwide also incurred expenses related to implementing the workplace safety protocols and adjusting remote working arrangements. Most of our non-production employees currently work remotely. However, not all employees are as efficient working remotely and its business may be adversely affected as the result. Additionally, certain employees at Gresham’s production facilities must continue to work on site to continue manufacture for essential government programs.

Further, Gresham Worldwide experienced an increase in the average length of sales cycles to onboard new customers and delays in new projects, which could materially adversely impact its business, results of operations, and financial condition in future periods. While people continue to be infected with COVID-19, the serious illnesses and deaths have diminished. Because of the uncertainty surrounding COVID-19, we cannot be certain whether COVID-19 will adversely affect us in the future.

Recent Trends and Uncertainties

We are in the process of aggressively managing our cash flow and reducing our expenses. As part of this endeavor, in January-February 2023 we implemented a RIF of approximately $1.7 million over the next 12 months. We believe that the RIF will not affect our production capabilities, nor will it affect our accounting capabilities.

In the past, Ault has allocated certain overhead charges to us. As of December 31, 2022, Ault allocated $1,090,000 of its overhead to us comprised of $230,000 for officer salaries, $90,000 director and officers’ insurance, $630,000 in audit fees and $140,000 in administrative costs. After the Business Combination, we expect to achieve a non-cash savings of approximately $1.1 million per year, as Ault will no longer allocate such

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expenses. However, this non-cash savings will be partially offset by cash expenses that we will now incur in 2023 for audit fees. We estimate such cash expenditures to be $550,000 in 2023.

The Company filed an S-1 Registration Statement on February 13, 2023 to allow Ault to spin-off its GIGA equity to its shareholders.

Critical Accounting Policies and Estimates

Please refer to the section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates” for a discussion of our critical accounting policies. During the three months ended March 31, 2023, there were no material changes to these policies, other than as disclosed in Note 3. Basis of Presentation and Significant Accounting Policies, to our unaudited condensed consolidated financial statements included with this Quarterly Report on Form 10-Q. In preparing the unaudited condensed consolidated financial statements, management is required to make estimates based on the information available that affect the reported amounts of assets and liabilities as of the balance sheet dates and revenues and expenses for the reporting periods. While we believe that these accounting policies and estimates are based on sound measurement criteria, actual future events can and often do result in outcomes that can be materially different from these estimates and forecasts.

Results of Operations

Bookings*

New orders by reporting segment are as follows for the respective periods (In thousands):

	Three Months Ended
Segment	March 31, 2023		March 31, 2022		$ Change			% Change
Precision Electronic Solutions	$	2,632	$	3,886	$	(1,254	)		(32	)%
Power Electronics & Displays		1,815		3,409		(1,595	)		(47	)%
RF Solutions		832		1,940		(1,107	)		(57	)%
Total	$	5,279	$	9,235	$	(3,956	)		(43	)%

.

*Bookings represent new orders received in the quarter

New orders booked in the three months ended March 31, 2023 decreased by 43% to $5.3 million from $9.2 million for the three months ended March 31, 2022. Bookings for the Precision Electronic Solutions group decreased by 32% to $2.6 million for the three months ended March 31, 2023 from $3.9 million for the three months ended March 31, 2022. The Precision Electronic Solutions group receives the majority of its business from a large defense contractor with orders fluctuating from quarter to quarter. The Power Electronics & Displays group experienced a 47% decline in bookings to $1.8 million primarily due to a decrease in defense orders which fluctuate from quarter to quarter, and the RF solutions group experienced a decline in bookings in the three months ended March 31, 2023 of 57% to $833,000. The Company received a large order of $1.5 million from a prime contractor in the first quarter of 2022, which did not repeat in the first quarter of 2023.

Backlog**

The following table shows order backlog and related information at the end of the respective periods (In thousands):

	Three Months Ended
Segment	March 31, 2023		March 31, 2022		$ Change			% Change
Precision Electronic Solutions	$	9,746	$	10,297	$	(551	)		(5	)%
Power Electronics & Displays		7,916		7,646		270			4	%
RF Solutions		9,166		10,015		(849	)		(8	)%
Total	$	26,828	$	27,958	$	(1,130	)		(4	)%

**Backlog represents orders to be fulfilled including bookings prior to the quarter ended March 31, 2023

Backlog as of March 31, 2023 decreased by 4% compared to March 31, 2022 primarily due to the 43% decrease in bookings shown above combined with a 20% increase in shipments as shown below.

Revenue

The allocation of net revenue was as follows for the periods shown (In thousands):

20

	Three Months Ended
Segment	March 31, 2023		March 31, 2022		$ Change		% Change
Precision Electronic Solutions	$	3,941	$	3,254	$	686		21	%
Power Electronics & Displays		2,991		2,479	$	512		21	%
RF Solutions		1,791		1,511		281		19	%
Total	$	8,723	$	7,244	$	1,479		20	%

The Precision Electronic Solutions group generated net revenue of $3.9 million during the three months ended March 31, 2023, a 21% increase from the three months ended March 31, 2022. The increase was primarily due to the addition of $430,000 of GIGA revenue which was not included in the first quarter of 2022. The Power Electronics & Displays group increased revenue by 21% to $3.0 million primarily due to a 51% increase in shipments by Gresham Power caused by the completion of a large fixed price contract. The RF solutions group increased revenue by 19% to $1.8 million in the first quarter of fiscal 2023 due to improvements in the supply chain.

Cost of revenue and gross profit were as follows for the periods shown (In thousands):

	Three Months Ended					Three Months Ended
Segment	March 31, 2023		% of Segment Revenue			March 31, 2022		% of Segment Revenue
Precision Electronic Solutions	$	3,210		81	%	$	2,316		71	%
Power Electronics & Displays		2,111		71	%		1,593		64	%
RF Solutions		1,239		69	%		842		56	%
Total cost of revenue	$	6,560		75	%	$	4,751		66	%
.
Gross profit	$	2,163		25	%	$	2,493		34	%

Gross profits for the three months ended March 31, 2023 decreased by $330,000 to $2.2 million from $2.5 million in the three months ended March 31, 2022. Cost of revenue as a percentage of segment revenue increased by 10% for the Precision Electronic Solutions group due to low revenues of the Giga-tronics group and the associated absorption of manufacturing overhead expenses. The gross margins of the Power Electronics & Displays group decreased by 7% due to overruns upon completion of a fixed price contract resulting in a 5% gross margin. The RF solutions group recognized a 13% increase in its cost of revenues as a percentage of segment revenue primarily due to a $230,000 inventory obsolescence charge.

Operating expenses were as follows for the periods shown (In thousands):

	Three Months Ended
Category	March 31, 2023		March 31, 2022		$ Change		% Change
Research and development	$	723	$	489	$	234		48	%
Selling and marketing and general and administrative		5,231		2,495		2,736		110	%
Total	$	5,954	$	2,984	$	2,970		100	%

Total operating expenses increased 94% or $2.8 million in the first quarter ended March 31, 2023 as compared with the first quarter of 2022. Research and development expenses increased by $234,000 due to the business combination of GWW with GIGA. Selling, general and administrative expenses increased by 103% primarily due the issuance cost of $1.2 million of the Senior Secured Convertible Notes and Warrants (see Note 13. Senior Secured Notes (4) and Warrants), as well as the added general and administrative cost of GIGA in the first quarter of 2023 which was not incurred in the first quarter of 2022, as well as the addition of approximate $400,000 for legal and audit expenses.

Other income (expenses), net were as follows for the periods shown (In thousands):

21

	Three Months Ended
Category	March 31, 2023			March 31, 2022			$ Change			% Change
Interest expense, related party	$	—		$	(12	)	$	12			(100	)%
Interest expense		(213	)		(67	)		(146	)		218	%
Change in fair value of senior secured convertible notes, related party		566			—			566			—	%
Change in fair value of senior secured convertible notes and warrant liabilities		939			—			939			—	%
Foreign currency exchange adjustment		44			—			44			—	%
Other income (expense)		(2	)		60			(62	)		(103	)%
Total other (expense) income, net	$	1,334		$	(19	)	$	1,353

For the three months ended March 31, 2023, interest expense increased by $146,000 primarily due to increased borrowing and higher interest rates. The Company performed a fair value analysis of its debts and warrant liability as of March 31, 2023 and recognized a non-cash gain of $566,000 for related party notes and $939,000 for the senior secured convertible note issued on January 11 (see Note 13. Senior Secured Convertible Notes (4) and Warrants).

Net Loss

Net loss was as follows for the periods shown (In thousands):

	Three Months Ended
	March 31, 2023			March 31, 2022
Revenue	$	8,723		$	7,244
Cost of revenue		6,560			4,751
Gross profit		2,163			2,493
.
Operating expenses		5,954			2,984
Other income (expense), net		1,334			(19	)
Income tax (provision) benefit		7			—
Net loss		(2,450	)		(510	)
Net income (loss) attributable to non-controlling interest		(14	)		13
Net loss available to common stockholders	$	(2,464	)	$	(497	)

Net loss attributable to common shareholders for the quarter ended March 31, 2023 was $2.5 million, compared to a net loss of $497,000 recorded in the quarter ended March 31, 2022. The $2.0 million increase in losses was primarily due to the combination of lower gross margins and higher operating expenses as described above.

Non-GAAP Financial Measures

A Non-GAAP financial measure is generally defined by the Securities and Exchange Commission (”SEC”) as a numerical measure of a company’s historical or future performance, financial position or cash flows that includes or excludes amounts from the most directly comparable measure under GAAP. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, our reported results prepared in accordance with GAAP. Users of this financial information should consider the types of events and transactions that are excluded from these measures.

We measure our operating performance in part based on earnings before interest, taxes, depreciation and amortization (“EBITDA”). We also measure our operating performance based on “Adjusted EBITDA,” which we define as EBITDA adjusted for net other income or expense items, share based compensation and certain one-time income or expense items. EBITDA and Adjusted EBITDA are non-GAAP financial measures that are commonly used, but neither is a recognized accounting term under GAAP. We use EBITDA and Adjusted EBITDA to monitor and facilitate internal evaluation of the performance of our business operations, to facilitate external comparison of our business results to those of others in our industry, and to plan and evaluate our operating budgets. We believe that our measures of EBITDA and Adjusted EBITDA provide useful information to the investing public regarding our operating performance and our ability to service debt and fund capital expenditures and may help investors understand and compare our results to other companies that have different financing, capital and tax structures. Neither EBITDA nor Adjusted EBITDA should be considered in isolation or as a substitute for, but as a supplement to, income or loss from operations, net income or loss, cash flows from operating activities, or other income or cash flow data prepared in accordance with GAAP.

22

In the following reconciliation, we provide amounts as reflected in our accompanying unaudited condensed consolidated financial statements unless otherwise noted.

The reconciliation of our Net loss to EBITDA and Adjusted EBITDA is as follows (In thousands):

	Three Months Ended
	March 31, 2023			March 31, 2022
Net loss	$	(2,450	)	$	(510	)
Net income (loss) attributable to non-controlling interest		(14	)		13
Net loss attributable to common shareholders		(2,464	)		(497	)
Depreciation and amortization		553			253
Interest and taxes		220			67
EBITDA		(1,691	)		(177	)
Adjustments:
Stock-based compensation		106			41
Compensation warrant issued in connection with senior secured convertible notes		858			—
Offering costs in connection with senior secured convertible notes		653			—
Change in fair value of notes payable, related parties		(566	)		—
Change in fair value of senior secured convertible notes and warrant liabilities		(939	)		—
Other expenses, net		(2	)		60
Foreign currency exchange adjustment		44			—
Adjusted EBITDA	$	(1,537	)	$	(76	)

Liquidity and Capital Resources

Cash Flows

The following summary of our cash flows for the periods indicated has been derived from our unaudited condensed consolidated financial statements included elsewhere in this filing (In thousands):

	Three Months Ended
Category	March 31, 2023			March 31, 2022
Net cash used in operating activities	$	(2,736	)	$	(424	)
Net cash used in investing activities		(27	)		(129	)
Net cash provided by financing activities		2,904			470
Effects of exchange rate changes on cash and cash equivalents		168			(619	)
Net increase in cash		309			(702	)
.
Cash and cash equivalents at beginning of period		2,195			1,599
Cash and cash equivalents at end of period	$	2,504		$	897

Cash Flows from Operating Activities

During the three month ended March 31, 2023, cash used in the operating activities was $2.7 million as compared to $424,000 for the three month ended March 31, 2022. The primary use of cash was to finance net losses.

We expect that cash flows from operating activities will fluctuate in future periods due to a number of factors including our level of revenue, which fluctuates significantly from one period to another primarily due to the timing of receipt of contracts, operating results, amounts of non-cash charges, and the timing of our inventory purchases, billings, collections and disbursements.

Cash Flows from Investing Activities

Cash used in investing activities for the three month period ended March 31, 2023 was $27,000 which was due to the purchase of property and equipment. Cash used in investing activities for the three months period ended March 31, 2022 was $129,000 which was primarily due to the purchase of property and equipment.

23

Cash Flows from Financing Activities

Cash provided by financing activities for the three month period ended March 31, 2023 was $2.9 million which was primarily due to $2.7 million proceeds from issuance of senior secured convertible notes and $0.3 million proceeds from receivable, related party offset by $0.1 million payment on notes payable. Cash provided by financing activities for the three months period ended March 31, 2022 was $470,000 which was due to the capital contributions from Ault.

Liquidity

	As of
Category (In thousands)	March 31, 2023		December 31, 2022
Cash	$	2,504	$	2,195
Total current assets	$	20,225	$	19,738
Total current liabilities	$	15,798	$	14,031
Working Capital	$	4,427	$	5,707

Our primary sources of liquidity has historically been funded by Ault and in January 2023 by two other lenders who lent the Company $3.3 million. We expect Ault will cease funding the Company in the near future.

Without the availability of working capital from Ault, unless we are successful in securing additional financing from third parties, we believe that we will not have sufficient cash to meet our needs over the next 12 months as well as Ault’s position as a secured creditor. Our ability to obtain additional financing is subject to several factors, including market and economic conditions, our performance and investor and lender sentiment with respect to us and our industry. If we are unable to raise additional financing in the near term as needed, our operations and production plans may be scaled back or curtailed and our operations and growth would be impeded.

Our near term fixed commitments for cash expenditures are primarily for payments for employee salaries, operating leases and inventory purchase commitments. Due to the deterioration of the Giga-tronics Division including its Microsource subsidiary, we have lacked sufficient capital to pay our payables. To assist with our liquidity issues, our executive officers have agreed to accept the minimum wage of $1,240 per week and to defer their remaining salaries for a single pay period. We also recently borrowed a total of $100,000 from our Chief Financial Officer and from a director. As a result of our liquidity issues, we need to raise approximately $5.0 million to meet our short-term working capital needs, not including the $3.3 million we owe which is due on October 6, 2023. While we are engaged in discussions with Ault and another lender about possible solutions, we cannot assure you that we will be successful in solving our liquidity issues. In addition to risk factors we publicly disclosed in our Form 10-K for the year ended December 31, 2022, one of the solutions is based upon our common stock beginning to trade actively. We cannot assure you that will occur.

24

ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Pursuant to Item 305 of Regulation S-K, the Company, as a smaller reporting company, is not required to provide the information required by this item.

ITEM 4 – CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We have established disclosure controls and procedures designed to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms and is accumulated and communicated to management, including the principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure.

Our principal executive officer and principal financial officer, with the assistance of other members of the Company’s management, have evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this quarterly report. Based upon our evaluation, each of our principal executive officer and principal financial officer has concluded that the Company’s internal control over financial reporting was not effective as of the end of the period covered by this Quarterly Report on Form 10-Q due to the material weaknesses as described herein.

A material weakness is a control deficiency (within the meaning of the Public Company Accounting Oversight Board (United States) Auditing Standard No. 2) or combination of control deficiencies that result in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. Management has identified the following material weaknesses:

•The Company does not have sufficient resources in its accounting function, which restricts its ability to gather, analyze and properly review information related to financial reporting in a timely manner.

•Due to its size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions, the custody of assets and the recording of transaction should be performed by separate individuals.

•Our primary user access controls (i.e., provisioning, de-provisioning, privileged access and user access reviews) to ensure appropriate authorization and segregation of duties that would adequately restrict user and privileged access to the financially relevant systems and data to appropriate personnel were not designed and/or implemented effectively. We did not design and/or implement sufficient controls for program change management to certain financially relevant systems affecting our processes.

• Management concluded that a deficiency in internal control over financial reporting existed relating to the accounting treatment for complex financial instruments and that the failure to properly account for such instruments constituted a material weakness.

Planned Remediation

Management continues to work to improve its controls related to our material weaknesses, specifically relating to user access and change management surrounding our information technology systems and applications. Management will continue to implement measures to remediate material weaknesses, such that these controls are designed, implemented, and operating effectively. The remediation actions include: (i) enhancing design and documentation related to both user access and change management processes and control activities; and (ii) developing and communicating additional policies and procedures to govern the area of information technology change management.

We are implementing measures designed to improve our internal control over financial reporting to remediate material weaknesses, including the following:

· Formalizing our internal control documentation and strengthening supervisory reviews by our management; and

· When there are business operations and cash to justify the additional expenses, adding additional accounting personnel and segregating duties amongst accounting personnel.

We are currently working to improve and simplify our internal processes and implement enhanced controls, as discussed above, to address the material weaknesses in our internal control over financial reporting and to remedy the ineffectiveness of our disclosure controls and procedures. These material weaknesses will not be considered to be remediated until the applicable remediated controls are operating for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively.

Despite the existence of these material weaknesses, we believe that the unaudited condensed consolidated financial statements included in the period covered by this Quarterly Report on Form 10-Q fairly present, in all material respects, our financial condition, results of operations and cash flows for the periods presented in conformity with GAAP.

25

Changes in Internal Control over Financial Reporting

Except as detailed above, there were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarter ended March 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

26

II - OTHER INFORMATION

ITEM 1 – LEGAL PROCEEDINGS

As of March 31, 2023, the Company has no material pending legal proceedings. From time to time, the Company is involved in various disputes and litigation matters that arise in the ordinary course of business.

ITEM 1A – RISK FACTORS

Not applicable.

ITEM 2 – UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3 – DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4 – MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5 – OTHER INFORMATION

None.

ITEM 6 – EXHIBITS

2.1	Share Exchange Agreement dated as of December 27, 2021 by and among Giga-tronics Incorporated, BitNile Holdings, Inc. and Gresham Worldwide, Inc. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on From 8-K filed on December 29, 2021)
2.2	Amendment No. 1 to Share Exchange Agreement by and among Giga-tronics Incorporated, BitNile Holdings, Inc. and Gresham Worldwide, Inc. dated as of April 5, 2022 (incorporated by reference to Exhibit 2.2 to the Company’s Current Report on Form 8-K filed on April 11, 2022)
3.1	Articles of Incorporation of the Company, as amended (incorporated by reference to Exhibit 3.1 to the Company’s Form 10-K filed on June 21, 1999)
3.1(a)	Amendment to Articles of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K filed on December 13, 2019)
3.1(b)	Certificate of Amendment of the Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K filed on September 27, 2022)
3.1(c)	Certificate of Determination of Series F Convertible Redeemable Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K filed on August 29, 2022)
3.2	Amended and Restated Bylaws of the Company (incorporated by reference to Exhibit 3.2 to the Company’s Form 10-K filed on June 12, 2008)
4.1	Rights Agreement between the Company and American Stock Transfer & Trust Company, LLC dated as of October 12, 2020 (incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K filed on October 13, 2020)
4.2	Amendment to Rights Agreement dated as of September 6, 2022 between Giga-tronics Incorporated and American Stock Transfer & Trust Company, LLC (incorporated by reference to Exhibit 4.2 to the Company’s Form 8-K filed on September 7, 2022)
10.1	Convertible Note (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K filed on September 14, 2022)
10.2	Securities Purchase Agreement (incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K filed on September 14, 2022)+
10.3	Security Agreement (incorporated by reference to Exhibit 10.4 to the Company’s Form 8-K filed on September 14, 2022)+
10.4	Registration Rights Agreement (incorporated by reference to Exhibit 10.5 to the Company’s Form 8-K filed on September 14, 2022)+
10.5	Form of Indemnification Agreement between the Company and each of its directors and officers (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on May 25, 2010)

27

10.6	Form of Preferred Share Repurchase Agreement (incorporated by reference to Exhibit 10.7 to the Company’s Form 8-K filed on September 14, 2022)+
31.1*	Certification of Chief Executive Officer pursuant to Section 302 of Sarbanes-Oxley Act.
31.2*	Certification of Chief Financial Officer pursuant to Section 302 of Sarbanes-Oxley Act.
32.1**	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of Sarbanes-Oxley Act.
101.INS*	Inline XBRL Instance
101.SCH*	Inline XBRL Taxonomy Extension Schema
101.CAL*	Inline XBRL Taxonomy Extension Calculation
101.DEF*	Inline XBRL Taxonomy Extension Definition
101.LAB*	Inline XBRL Taxonomy Extension Labels
101.PRE*	Inline XBRL Taxonomy Extension Presentation
104	Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101)

* Filed herewith

** Furnished herewith

+ Certain schedules and other attachments have been omitted. The Company undertakes to furnish the omitted schedules and attachments to the Securities and Exchange Commission upon request.

Copies of this report (including the financial statements) and any of the exhibits referred to above will be furnished at no cost to our stockholders who make a written request to our Corporate Secretary at Giga-tronics Incorporated, 7272 E. Indian School Rd., Suite 540, Scottsdale, AZ 85251.

28

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		GIGA-TRONICS INCORPORATED
		(Registrant)
		By:
Date:	July 6, 2023	/s/ JONATHAN READ
		Jonathan Read
		Chief Executive Officer
		(Principal Executive Officer)
Date:	July 6, 2023	/s/ LUTZ P. HENCKELS
		Lutz P. Henckels
		Chief Financial Officer (Principal Financial and Accounting Officer)

29

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jonathan Read, Chief Executive Officer (principal executive officer) of Giga-tronics, Incorporated, a California corporation (the “Registrant”), certify that:

1.I have reviewed this quarterly report on Form 10-Q of the Registrant;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

July 6, 2023
Giga-tronics Incorporated
By:	/s/ JONATHAN READ
	Jonathan Read, Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Lutz Henckels, Chief Financial Officer (principal financial and accounting officer) of Giga-tronics, Incorporated, a California corporation (the “Registrant”), certify that:

1.I have reviewed this report on Form 10-Q of the Registrant;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: July 6, 2023
Giga-tronics Incorporated
By:	/s/ LUTZ P. HENCKELS
	Lutz P. Henckels, Chief Financial Officer
	(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Giga-tronics, Incorporated, a California Corporation (the “Company”) on Form 10-Q for the quarterly period ended March 31, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, being, Jonathan Read, Chief Executive Officer (Principal Executive Officer) of the Company and Lutz P. Henckels, Chief Financial Officer (Principal Financial and Accounting Officer) of the Company, each hereby certifies, pursuant to 18 U.S.C. Section1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge, respectively that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: July 6, 2023
By:	/s/ JONATHAN READ
	Jonathan Read, Chief Executive Officer
	(Principal Executive Officer)

Date: July 6, 2023
By:	/s/ LUTZ P. HENCKELS
	Lutz P. Henckels, Chief Financial Officer
	(Principal Financial and Accounting Officer)

The foregoing certifications are not deemed filed with the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2023	Jul. 03, 2023
Document Information [Line Items]
Entity Central Index Key	0000719274
Entity Registrant Name	GIGA-TRONICS INC
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-14605
Entity Incorporation, State or Country Code	CA
Entity Tax Identification Number	94-2656341
Entity Address, Address Line One	7272 E. Indian School Rd
Entity Address, Address Line Two	Suite 540
Entity Address, City or Town	Scottsdale
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85251
City Area Code	833
Local Phone Number	457-6667
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,931,582

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
CURRENT ASSETS
Cash and cash equivalents	$ 2,504	$ 2,195
Accounts receivable, net	5,396	5,502
Accrued revenue	2,695	2,479
Receivable, related party	941	1,242
Inventories	7,963	7,695
Prepaid expenses and other current assets	726	625
TOTAL CURRENT ASSETS	20,225	19,738
Intangible assets, net	3,405	3,476
Goodwill	8,948	9,054
Property, plant and equipment, net	2,073	2,240
Right-of-use assets	3,593	3,940
Other assets	507	506
TOTAL ASSETS	38,751	38,954
CURRENT LIABILITIES
Accounts payable and accrued expenses	6,723	6,913
Senior secured convertible notes	1,660	0
Notes payable	1,715	1,797
Warrant liabilities	734
Operating lease liability, current	942	1,067
Other current liabilities	4,024	4,254
TOTAL CURRENT LIABILITIES	15,798	14,031
Operating lease liability, non-current	2,787	3,014
Notes payable	282	322
Senior secured convertible notes, related party	9,442	10,008
Other liabilities	399	238
TOTAL LIABILITIES	28,708	27,613
STOCKHOLDERS' EQUITY
Common Stock; no par value; 100,000,000 shares authorized, 5,931,582 shares issued and outstanding at March 31, 2023; 13,333,333 shares authorized, 5,931,582 shares issued and outstanding at December 31, 2022	36,106	35,141
Accumulated deficit	(30,190)	(27,726)
Accumulated other comprehensive loss	(1,592)	(1,779)
TOTAL STOCKHOLDERS' EQUITY	9,314	10,626
Non-controlling interest	729	715
TOTAL STOCKHOLDERS' EQUITY	10,043	11,341
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	38,751	38,954
Series F Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Preferred stock	$ 4,990	$ 4,990

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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Preferred stock, authorized (in shares)	1,000,000	1,000,000
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	100,000,000	13,333,333
Common stock, issued (in shares)	5,931,582	5,931,582
Common stock, outstanding (in shares)	5,931,582	5,931,582
Series F Preferred Stock [Member]
Preferred stock, authorized (in shares)	520	520
Preferred stock, issued (in shares)	514.8	514.8
Preferred stock, outstanding (in shares)	514.8	514.8
Preferred stock, liquidation preference, value	$ 12,870	$ 12,870

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenues	$ 8,723	$ 7,244
Cost of revenues	6,560	4,751
Gross profit	2,163	2,493
Operating expenses:
General and administrative	4,688	2,197
Research and development	723	489
Selling and marketing	543	298
Total operating expenses	5,954	2,984
Loss from continuing operations	(3,791)	(491)
Other (expense) income
Interest expense, related party	0	(12)
Interest expense	(213)	(67)
Change in fair value of senior secured convertible notes, related party	566	0
Change in fair value of senior secured convertible notes and warrant liabilities	939	0
Foreign currency exchange adjustment	44	0
Other income (expense)	(2)	60
Total other (expense) income , net	1,334	(19)
Loss from continuing operations before income taxes	(2,457)	(510)
Income tax benefit (provision)	7	0
Net loss	(2,450)	(510)
Net loss (gain) attributable to non-controlling interest	(14)	13
Net loss attributable to common stockholders	$ (2,464)	$ (497)
Net loss per common share, basic	$ (0.42)	$ (0.17)
Net loss per common share, diluted	$ (0.42)	$ (0.17)
Weighted average common shares outstanding, basic	5,932	2,920
Weighted average common shares outstanding, diluted	5,932	2,920
Comprehensive loss
Loss available to common stockholders	$ (2,464)	$ (497)
Foreign currency translation adjustments	187	(391)
Total comprehensive loss	$ (2,277)	$ (888)

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total	Preferred Stock [Member]	Common Stock [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Non-Controlling Interest [Member]
Balance at Dec. 31, 2021	$ 22,500	$ 4,990	$ 26,682	$ (9,988)	$ (240)	$ 1,056
Balance (in shares) at Dec. 31, 2021		515	2,920,085
Stock-based compensation	41		$ 41
Capital contribution from parent	517		517
Net loss	(497)			(497)
Foreign currency translation adjustments	(391)				(391)
Net income (loss) attributable to non-controlling interest	(13)					(13)
Balance at Mar. 31, 2022	22,157	$ 4,990	$ 27,240	(10,485)	(631)	1,043
Balance (in shares) at Mar. 31, 2022		515	2,920,085
Balance at Dec. 31, 2022	11,341	$ 4,990	$ 35,141	(27,726)	(1,779)	715
Balance (in shares) at Dec. 31, 2022		515	5,931,582
Stock-based compensation	106		$ 106
Warrant issued with notes payable	859		859
Net loss	(2,464)			(2,464)
Foreign currency translation adjustments	187				187
Net income (loss) attributable to non-controlling interest	14					14
Balance at Mar. 31, 2023	$ 10,043	$ 4,990	$ 36,106	$ (30,190)	$ (1,592)	$ 729
Balance (in shares) at Mar. 31, 2023		515	5,931,582

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net loss	$ (2,450,000)	$ (510,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	181,000	142,000
Amortization	73,000	80,000
Amortization of right-of-use assets	299,000	31,000
Change in fair value of senior secured convertible notes, related party	(566,000)	0
Change in fair value of senior secured convertible notes	(143,000)	0
Change in fair value of warrants issued with senior secured convertible notes	(796,000)	0
Increase in capital contribution from parent for corporate overhead	0	340,000
Stock-based compensation	106,000	41,000
Compensation warrant issued in connection with senior secured convertible notes	858,000	0
Offering Costs in Connection with Senior Secured Convertible Notes	653,000	0
Changes in operating assets and liabilities:
Accounts receivable	58,000	(348,000)
Accrued revenue	(274,000)	(326,000)
Inventories	(235,000)	(475,000)
Prepaid expenses and other current assets	(98,000)	222,000
Other assets	0	(409,000)
Accounts payable and accrued expenses	(40,000)	1,531,000
Accounts payable, related parties		(53,000)
Other current liabilities	(211,000)	(657,000)
Other non-current liabilities	154,000	0
Lease liabilities	(305,000)	(33,000)
Net cash used in operating activities	(2,736,000)	(424,000)
Cash flows from investing activities:
Purchases of property and equipment	(27,000)	(129,000)
Net cash used in investing activities	(27,000)	(129,000)
Cash flows from financing activities:
Capital contribution from parent	0	177,000
Proceeds from accounts receivables, related party	301,000	0
Proceeds from senior secured convertible notes, net of issuance costs	2,680,000	0
Proceeds from notes payable	0	294,000
Payments on notes payable	(77,000)	0
Payments on revolving credit facilities, net	0	(1,000)
Net cash provided by financing activities	2,904,000	470,000
Effects of exchange rate changes on cash and cash equivalents	168,000	(619,000)
Net increase/(decrease) in cash and cash equivalents	309,000	(702,000)
Cash and cash equivalents at beginning of period	2,195,000	1,599,000
Cash and cash equivalents at end of period	2,504,000	897,000
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	$ 213,000	$ 49,000

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Description of Business

3 Months Ended

Mar. 31, 2023

Business Description [Abstract]

Description of Business

Note 1. Description of Business

Giga-tronics Incorporated (“GIGA”) through its subsidiaries (collectively, the “Company”), designs, manufactures and distributes specialized electronics equipment, automated test solutions, power electronics, supply and distribution solutions, as well as radio, microwave and millimeter wave communication systems and components for a variety of applications with a focus on the global defense industry. GIGA also offers bespoke technology solutions for mission critical applications in the medical, industrial, transportation and telecommunications markets.

GIGA has two subsidiaries Microsource Inc. (“Microsource”) and Gresham Holdings, Inc. (formerly known as Gresham Worldwide, Inc.) (“GWW”). GIGA manages its acquired operations through its wholly owned subsidiary GWW. GIGA is a majority owned subsidiary of Ault Holdings, Inc., a Delaware corporation (“Ault” or “Parent”) and currently operates as an operating segment of Ault. GWW has three wholly-owned subsidiaries, Gresham Power Electronics Ltd. (“Gresham Power”), Relec Electronics Ltd. (“Relec”), and Enertec Systems 2001 Ltd. (“Enertec”), and one majority owned subsidiary, Microphase Corporation (“Microphase”). GIGA manufactures specialized electronic equipment for use in military test and airborne operational applications. Our operations consist of three business segments:

•Radio Frequency (”RF”) Solutions (”RF Solutions”) – consists of Microphase which is located in Connecticut. Microphase designs and manufactures custom microwave products for military applications and generates revenue primarily through sole-source production contracts for custom engineered components and RADAR filters.

•Power Electronics & Displays - consists of two subsidiaries, namely Gresham Power and Relec located in the United Kingdom which primarily produce power conversion systems.

•Precision Electronic Solutions – consists of one subsidiary and one division, namely Enertec located in Israel and the Giga-tronics Division including Microsource located in California and New Hampshire, primarily producing test systems and RF filters for the defense industries.

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Liquidity and Financial Condition

3 Months Ended

Mar. 31, 2023

Liquidity and Financial Condition [Abstract]

Liquidity and Financial Condition

Note 2. Liquidity and Financial Condition

The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred recurring net losses and operations have not provided cash flows. In view of these matters, there is substantial doubt about our ability to continue as a going concern. The Company intends to finance its future development activities and its working capital needs largely through the sale of equity securities with some additional funding from other sources, including term notes until such time as funds provided by operations are sufficient to fund working capital requirements. The unaudited condensed consolidated financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

Our primary sources of liquidity have historically been funded by our parent company, Ault. The extent of continued support from Ault is not assured as we seek additional financing from third parties. There is substantial doubt that we will have sufficient cash to meet our needs over the next 12 months. Our ability to obtain additional financing is subject to several factors, including market and economic conditions, our performance and investor and lender sentiment with respect to us and our industry. If we are unable to raise additional financing in the near term as needed, our operations and production plans may be scaled back or curtailed and our operations and growth would be impeded.

Our near term fixed commitments for cash expenditures are primarily for payments for employee salaries, operating leases, accounts payables, and inventory purchase commitments.

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Basis of Presentation and Significant Accounting Policies

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

Note 3. Basis of Presentation and Significant Accounting Policies

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Regulation S-X and do not include all the information and disclosures required by generally accepted accounting principles in the United States (”US”), (“GAAP”). The Company has made estimates and judgments affecting the amounts reported in the Company’s unaudited condensed consolidated financial statements and the accompanying notes. The actual results experienced by the Company may differ materially from the Company’s estimates. The unaudited condensed consolidated financial information is unaudited but reflects all normal adjustments that are, in the opinion of management, necessary to provide a fair statement of results for the interim periods presented.

These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report”), filed with the Securities and Exchange Commission (the “SEC”) on May 11, 2023. The condensed consolidated balance sheet as of December 31, 2022 included in this report was derived from the Company’s audited 2022 financial statements contained in the above referenced 2022 Annual Report. Results of the three months ended March 31, 2023, are not necessarily indicative of the results to be expected for the full year ending December 31, 2023.

Basis of Presentation

Other than as noted below, there have been no material changes to the Company’s significant accounting policies previously disclosed in the 2022 Annual Report.

Principles of Consolidation

The Acquisition was accounted for as a reverse recapitalization with GWW being the accounting acquirer and GIGA being the acquired company for accounting purposes. All historical financial information presented in the unaudited condensed consolidated financial statements represents the accounts of GWW and its wholly owned and majority owned subsidiaries. The unaudited condensed consolidated financial statements after completion of the Acquisition will include the assets and liabilities and operations of GIGA and its subsidiaries from the Closing Date of the Acquisition. All intercompany transactions and balances have been eliminated. The shares and net loss per common share prior to the merger have been retroactively restated to reflect the share exchange ratio established in the merger.

Recently Adopted Accounting Standards

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments - Credit Losses (Topic 326),” (“ASU 2016-13”) to improve information on credit losses for financial assets and net investment in leases that are not accounted for at fair value through net income. ASU 2016-13 replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. This guidance was effective for the Company beginning on January 1, 2023. The adoption of this guidance did not have a material impact on the Company’s unaudited condensed consolidated financial statements.

In January 2017, FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminated the calculation of implied goodwill fair value. Instead, companies will record an impairment charge based on the excess of a reporting unit’s carrying amount of goodwill over its fair value. This guidance was effective for the Company beginning on January 1, 2023. The adoption of this guidance did not have a material impact on the Company’s unaudited condensed consolidated financial statements.

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Revenue Disaggregation

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue Disaggregation

Note 4. Revenue Disaggregation

The Company’s disaggregated revenues are comprised of the following (In thousands):

	Three Months Ended
Category	March 31, 2023		March 31, 2022
Primary Geographical Markets
North America	$	2,328	$	1,511
Europe		2,832		2,179
Middle East and other		3,563		3,554
Total revenue	$	8,723	$	7,244
Major Goods
RF/microwave filters	$	1,247	$	1,511
Detector logarithmic video amplifiers		545		—
Power supply units and systems		2,694		2,479
Healthcare diagnostic systems		1,193		—
Defense systems		3,044		3,254
Total revenue	$	8,723	$	7,244
Timing of Revenue Recognition
Goods transferred at a point in time	$	5,087	$	3,511
Services transferred over time		3,636		3,733
Revenue from contracts with customers	$	8,723	$	7,244

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Accounts Receivables, Related Party

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Accounts Receivables, Related Party

Note 5. Accounts receivables, related party

The following table summarizes the changes in the Company’s accounts receivables, related party for the three months ended March 31, 2023 (In thousands):

Description	Accounts receivables, related party
Balance as of January 1, 2023	$	1,242
Receipts during the period		(301	)
Balance as of March 31, 2023	$	941

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Inventories, Net

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Inventories, Net

Note 6. Inventories, net

Inventories, net, are comprised of the following (In thousands):

Category	March 31, 2023		December 31, 2022
Raw materials	$	3,120	$	2,758
Work-in-progress		3,195		3,186
Finished goods		1,648		1,751
Total	$	7,963	$	7,695

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Property and Equipment, Net

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Note 7. Property and Equipment, net

Property and Equipment, net, are comprised of the following (In thousands):

Category	March 31, 2023			December 31, 2022
Machinery and equipment	$	6,920		$	6,912
Computer, software and related equipment		1,877			1,858
Leasehold improvements and office equipment		2,160			2,148
Total		10,957			10,918
Less: accumulated depreciation and amortization		(8,884	)		(8,678	)
Property and equipment, net	$	2,073		$	2,240

Depreciation expenses related to the property and equipment for the three month periods ended March 31, 2023 and 2022 was $181,000 and $142,000, respectively.

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Intangible Assets, Net

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Net

Note 8. Intangible Assets, net

Intangible assets, net, are comprised of the following (In thousands):

Category	Useful Life	March 31, 2023			December 31, 2022
Trademark	Indefinite life	$	1,503			$	1,493
Customer list	10-14 years		3,787				3,825
Total			5,290				5,318
Less: accumulated depreciation and amortization			(1,885	)			(1,842	)
Intangible assets, net		$	3,405			$	3,476

Amortization expense for the three month periods ended March 31, 2023 and 2022 was $73,000 and $80,000, respectively.

The following table presents estimated amortization expense for each of the succeeding five calendar years and thereafter (In thousands):

Fiscal Year	March 31, 2023
2023 (remainder)	$	242
2024		323
2025		323
2026		323
2027		323
2028		323
Thereafter		45
	$	1,902

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Goodwill

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Note 9. Goodwill

The following table summarizes the changes in the Company’s goodwill for the three months ended March 31, 2023 (In thousands):

Description	Goodwill
Balance as of January 1, 2023	$	9,054
Effect of exchange rate changes		(106	)
Balance as of March 31, 2023	$	8,948

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Other Current Liabilities

3 Months Ended

Mar. 31, 2023

Other Liabilities Disclosure [Abstract]

Other Current Liabilities

Note 10. Other Current Liabilities

As of March 31, 2023 and December 31, 2022, other current liabilities consists of the following (In thousands):

Category	March 31, 2023		December 31, 2022
Accrued payroll and payroll taxes	$	2,412	$	2,401
Deferred revenue		1,256		1,028
Other accrued expense		356		825
Other current liabilities	$	4,024	$	4,254

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Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

Note 11. Leases

Operating leases

We have operating leases for office space. Our leases have remaining lease terms from 6 months to 8.5 years, some of which may include options to extend the leases perpetually, and some of which may include options to terminate the leases within 1 year.

The components of lease expenses for the three months ended March 31, 2023 and 2022 were as follow (In thousands):

	Three Months Ended		Three Months Ended
	March 31, 2023		March 31, 2022
Operating lease cost	$	356	$	273

Supplemental unaudited condensed consolidated balance sheet information related to operating leases was as follows:

	Three Months Ended		Three Months Ended
	March 31, 2023		March 31, 2022
Weighted-average remaining lease term - operating leases	5.6 years		8.5 years
Weighted-average discount rate - operating leases		N/A%		8	%

Maturity of lease liabilities under our non-cancellable operating leases as of March 31, 2023 are as follow (In thousands):

Fiscal Year	Operating leases
2023 (remaining)	$	963
2024		932
2025		770
2026		509
2027		357
2028		357
Thereafter		760
Total future minimum lease payments		4,648
Less: imputed interest		(919	)
Present value of lease liabilities	$	3,729

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Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Note 12. Fair value of financial instruments

Recurring Fair Value Measurements

The fair value hierarchy table for the periods indicated is as follows:

	Fair value measurement on a recurring basis at reporting date using (1)
(In thousands)	Level 1		Level 2		Level 3		Total
Balance at March 31, 2023
Senior Secured Convertible Note (2), related party	$	—	$	—	$	3,717	$	3,717
Senior Secured Convertible Note (3), related party		—		—		5,725		5,725
Senior Secured Convertible Note (4)		—		—		1,660		1,660
Warrant liability		—		—		734		734
Total liabilities measured at fair value	$	—	$	—	$	11,836	$	11,836
Balance at December 31, 2022
Senior Secured Convertible Note (2), related party	$	—	$	—	$	3,940	$	3,940
Senior Secured Convertible Note (3), related party		—		—		6,068		6,068
Total liabilities measured at fair value	$	—	$	—	$	10,008	$	10,008

1 There were no transfers between the respective Levels during the three month period ended March 31, 2023 and the year ended December 21, 2022.

The Company assesses the inputs used to measure fair value using the three-tier hierarchy based on the extent to which inputs used in measuring fair value are observable in the market. For investments where little or no public market exists, management’s determination of fair value is based on the best available information which may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration various factors including earnings history, financial condition, recent sales prices of the issuer’s securities and liquidity risks.

Below are the changes to level 3 measured liabilities:

	Level 3 measured
	liabilities
Fair value at December 31, 2022	$	10,008
Fair value of senior secured convertible notes issued		1,803
Fair value of warrants issued with senior secured convertible notes		1,530
Change in fair value		(1,505	)
Fair value at March 31, 2023	$	11,836

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Senior Secured Convertible Notes (4) and Warrants

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Senior Secured Convertible Notes (4) and Warrants

Note 13. Senior Secured Convertible Notes (4) and Warrants

On January 11, 2023, the Company entered into a Securities Purchase Agreement (“SPA”) pursuant to which the Company issued $3.3 million 10% original issue discount Senior Secured Convertible Notes (4) (the “Notes”) and five-year common stock purchase warrants, for total gross proceeds of $3,000,000.

Senior Secured Convertible Notes (4)

Notes payable at March 31, 2023 and December 31, 2022, were comprised of the following :

Fair value (In thousands)	Total
Balance as of December 31, 2022	$	—
Issuance of Senior Secured Convertible Notes (4) at January 11, 2023		1,803
Change in fair value of Senior Secured Convertible Notes		(143	)
Balance as of March 31, 2023	$	1,660

The Notes are secured by the assets of the Company pursuant to a Security Agreement entered into for such purpose, and are senior to the indebtedness payable to Ault and Ault Lending, pursuant to a Subordination Agreement entered into in connection with the SPA.

The Notes mature on the earlier of (i) October 6, 2023, or (ii) completion of an uplisting to a national securities exchange (an “Uplist Transaction”).

The Notes accrue interest at a rate of 6% per annum payable monthly, which increases to 18% upon an event of default. In addition, under the Notes upon an event of default the Company is required to pay 20% of its consolidated revenues monthly on each interest payment date in reduction of the principal amount of the Notes then outstanding.

The Notes provide for certain events of default which include:

•failure of the Uplist Transaction to occur by the maturity date;

•failure to maintain effectiveness of the registration statement under the Registration Rights Agreement;

•suspension of trading of the Company’s common stock for five consecutive trading days;

•failure to timely deliver shares issuable upon conversion of the Notes or exercise of the Warrants;

•failure to timely make payments under the Notes;

•default under other indebtedness, and

•certain other customary events of default, subject to certain exceptions and limitations

Upon an event of default, the holders will have the right to require the Company to prepay the Notes at a 125% premium (“Premium”). Further, upon a bankruptcy event of default or a change of control event, the Company will be required to prepay the Notes at a Premium. If the conversion price falls below $0.25, the Company may also elect to prepay the notes at a 125% Premium.

The Notes contain customary restrictive covenants including covenants against incurring new indebtedness or liens, changing the nature of its business, transfers of assets, transactions with affiliates, and issuances of securities, subject to certain exceptions and limitations.

Senior Secured Convertible Notes, Fair Value

The Company elected the fair value option with respect to the Senior Secured Convertible notes. The fair value of the Notes liability was determined based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The Company used the probability-weighted expected return method ("PWERM") to value the Notes liability. This approach involved the estimation of future potential outcomes for the Notes holders, as well as values and probabilities associated with each respective potential outcome.

On January 11, 2023, the Company ascribed following probabilities to four possible scenarios:

	March 31, 2023				January 11, 2023
Scenario description	Estimated probability			Estimated date	Estimated probability			Estimated date
Uplist transaction		10.0	%	September 30, 2023		60.0	%	June 30, 2023
Held to maturity		60.0	%	October 6, 2023		10.0	%	October 6, 2023
Change of control		5.0	%	September 30, 2023		5.0	%	September 30, 2023
Default/ dissolution		25.0	%	September 1, 2023		25.0	%	September 1, 2023
Total		100.0	%			100.0	%

The Company filed an S-1 registration statement on February 13, 2023, for Ault to distribute its common and preferred shares of GIGA as a dividend to its stockholders, which was a critical step for the Uplist Transaction scenario. By March 31, 2023, the approval of the S-1 registration statement was delayed and the Company reduced the probability to complete the Uplist prior to September 30, 2023 to 10%, and increased the likelihood that the Notes liability will remain outstanding until maturity to 60%.

Based on these estimates, the Company arrived at the fair value of the Notes liability as shown below:

Senior Secured Convertible Notes (4):	March 31, 2023			January 11, 2023
Fair Value (In thousands)	$	1,660			$	1,803
Face value principle payment (In thousands)	$	3,333			$	3,333
Face value at Premium (In thousands)	$	4,166			$	4,166
Conversion Price	$	0.25			$	0.78
Maturity Date	October 6, 2023				October 6, 2023
Interest rate		6.00	%			6.00	%
Valuation technique	PWERM				PWERM

The Company recorded the change in the fair value of the Notes of $143,000 on March 31, 2023 in “Other income and expense”.

Warrants

The Warrants entitle the holders to purchase a total of 1,666,666 shares of common stock for a five-year period from issuance, at an exercise price determined as follows: (i) beginning on the issuance date and for a period of 90 days thereafter, $0.78, (ii) if the Uplist Transaction has occurred as of the date of exercise, the lower of (A) $0.78 and (B) 110% of the per share offering price to the public in the Uplist Transaction, and (iii) if neither of (i) and (ii) apply, the lower of (A) $0.78 and (B) 90% of the lowest VWAP for the 10 trading days prior to the date of the exercise, subject to adjustment including downward adjustment upon any dilutive issuance of securities. If the Uplist Transaction is not completed prior to the maturity date of the Notes, the number of shares of common stock that may be purchased upon exercise of the Warrants will be doubled, without an adjustment to the exercise price.

The Warrants are liability classified and the Company performed a fair value analysis as shown below:

Warrant liability, current:	March 31, 2023			January 11, 2023
Fair Value (In thousands)	$	734		$	1,530
Number of warrants	$	1,666,667		$	1,666,667
Closing price (OTCB: GIGA)	$	0.30		$	0.80
Volatility		143.30	%		133.60	%
Risk-free discount rate		3.60	%		3.72	%
Term	5 years			5 years
Expiration date	January 11, 2028			January 11, 2028
Valuation technique	Monte Carlo simulation			Monte Carlo simulation

The Company recorded the change in the fair value of the warrants of $796,000 on March 31, 2023 as a gain in “Other income and expense”.

Placement Agent Warrant

Spartan Capital Securities, LLC (the “Placement Agent”) served as placement agent in the offering and received a cash commission in the amount of 8% of the gross proceeds, or $240,000. In addition, we paid the Placement Agent an expense allowance of $30,000. Furthermore, we issued the Placement Agent five-year warrants (the “Placement Agent Warrants”) to purchase a number of shares of common stock equal to 8% of the total number of shares of common stock underlying the Notes and Warrants sold in the offering, or 1,200,000 shares. The Placement Agent Warrants have an exercise price of 110% of the Warrant exercise price. The Company performed a fair value analysis for the 1,200,000 warrants similarly to the warrants analysis described above, and ascribed a fair value of $858,000 as of January 11, 2023. The warrants are classified as equity:

	January 11, 2023
Fair value (In thousands)	$	858
Number of warrants		1,200,000
Closing price (OTCB: GIGA)	$	0.80
Volatility		133.6	%
Risk-free discount rate		3.72	%
Contractual term in years	5 years
Expiration date	January 11, 2028
Valuation technique	Monte Carlo simulation

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Notes Payable

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Notes Payable

Note 14. Notes Payable

Notes payable at March 31, 2023 and December 31, 2022, were comprised of the following (In thousands):

	Due date	Interest rate			March 31, 2023			December 31, 2022
Bank credit			3.7	%		1,580			1,623
Other short-term notes payable			3.0	%		417			425
Financed receivables	Cancelled January 10, 2023		8.5	%		—			71
Total notes payable						1,997			2,119
Less: current portion						(1,715	)		(1,797	)
Notes payable - long-term portion					$	282		$	322

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Senior Secured Convertible Notes, Related Party

3 Months Ended

Mar. 31, 2023

Payables and Accruals [Abstract]

Senior Secured Convertible Notes, Related Party

Note 15. Senior Secured Convertible Notes, Related Party

The following table summarizes the changes in the Senior secured convertible notes, related party for the three months ended March 31, 2023 (In thousands):

	Senior Secured			Senior Secured
	Convertible Note (2)			Convertible Note (3)			Total
Fair value at December 31, 2022	$	3,940		$	6,068		$	10,008
Change in fair value of senior secured convertible notes, related party		(223	)		(343	)		(566	)
Balance at March 31, 2023	$	3,717		$	5,725		$	9,442

The change of $566,000 in the fair value of the Senior secured convertible notes as of March 31, 2023 compared to December 31, 2022 was recorded as a change in fair value of senior secured convertible notes and warrant liabilities within Other (expense) income on the unaudited condensed consolidated statement of operations.

The significant assumptions associated with the fair value of the Notes payable, related party as of the dates indicated, are as follows:

	March 31, 2023			December 31, 2022
Face value principle payment (In thousands)	$	11,133		$	11,133
Conversion Price	$	0.78		$	0.78
Maturity Date	December 31, 2024			December 31, 2024
Interest rate		10.00	%		10.00	%
Discount rate		27.30	%		27.30	%
Valuation technique	PWERM			PWERM
Fair Value (In thousands)	$	9,442		$	10,008

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Related Party Transactions

3 Months Ended

Mar. 31, 2023

Related Party Transactions [Abstract]

Related Party Transactions

Note 16. Related Party Transactions

Allocation of General Corporate Expenses

Ault provided human resources, accounting, and other services to Gresham until September 8, 2022. Gresham obtained its business insurance under Ault’s policies. The accompanying financial statements of Gresham include allocations of these expenses. The allocation method calculates the appropriate share of overhead costs to Gresham by using Gresham’s revenue as a percentage of total revenue of Ault. Gresham believes the allocation methodology used is reasonable and has been consistently applied, and results in an appropriate allocation of costs incurred. However, these allocations may not be indicative of the cost that would have been incurred had Gresham been a stand-alone entity or of future costs. After the Business Combination on September 8, 2022, GIGA absorbed these costs and no expenses were allocated by Ault. Ault allocated $340,000 for the three month period ended March 31, 2022 (In thousands):

	Three Months Ended
	March 31, 2023		March 31, 2022
Related party transactions	$	—	$	340

Net Transfers From Ault

The Company received funding from Ault to cover any shortfalls on operating cash requirements. In addition to the allocation of general corporate expenses, the Company received $0 and $177,000 from Ault for the quarters ended March 31, 2023 and 2022, respectively.

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Stock-based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation

Note 17. Stock-based Compensation

The stock-based compensation expense included in net loss for the three month period ended March 31, 2023 and 2022 was $106,000 and $41,000, respectively recognized in general and administrative expenses.

As of March 31, 2023, there was $509,000 of unrecognized compensation cost related to non-vested stock-based compensation arrangements expected to be recognized over a weighted average period of 1.2 years.

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Concentration of Credit Risk

3 Months Ended

Mar. 31, 2023

Risks and Uncertainties [Abstract]

Concentration of Credit Risk

Note 18. Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and trade receivables. Trade receivables of the Company and its subsidiaries are mainly derived from sales to customers located primarily in the U.S., Europe and Israel. The Company performs ongoing credit evaluations of its customers and to date has not experienced any material losses. An allowance for doubtful accounts is determined with respect to those amounts that the Company have determined to be doubtful of collection.

The following table provides the percentage of total revenues attributable to a single customer from which 10% or more of total revenues are derived:

	Three Months Ended					Three Months Ended
Segment	March 31, 2023		% of Total Revenue			March 31, 2022		% of Total Revenue
Customer A	$	2,068		24	%	$	2,505		35	%
Customer B	$	1,052		12	%	$	—		—	%
Customer C	$	872		10	%	$	760		10.0	%

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Net Loss Per Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Net Loss Per Share

Note 19. Net Loss Per Share

Basic net loss per share is computed by dividing net loss by weighted average number of common shares outstanding for the period (excluding outstanding stock options). Diluted net loss per share is computed using the weighted-average number of common shares outstanding for the period plus the potential effect of dilutive securities which are convertible into common shares (using the treasury stock method), except in cases in which the effect would be anti-dilutive. The following is a reconciliation of the numerators and denominators used in computing basic and diluted net loss per share:

(In thousands except share data)	Three Months Ended
	March 31, 2023			March 31, 2022
Numerator
Net loss attributable to common stockholders	$	(2,464	)	$	(497	)
Denominator
Basic weighted average shares outstanding		5,932			2,920
Effect of dilutive securities		—			—
Diluted weighted-average shares		5,932			2,920
Net loss per share attributable to common stockholders, basic and diluted	$	(0.42	)	$	(0.17	)

For the three month periods ended March 31, 2023 and 2022, because the Company was in a loss position, basic net loss per share is the same as diluted net loss per share as the inclusion of the potential common shares would have been anti-dilutive.

The following table sets forth potential shares of common stock that are not included in the diluted net loss per share calculation above because to do so would be anti-dilutive for the periods indicated:

Anti-dilutive securities	March 31, 2023		March 31, 2022
Common shares issuable upon exercise of stock options		789		500
Common shares issuable on conversion of series F preferred stock		3,960		3,960
Common shares issuable upon exercise of warrants		6,833		—
Restricted stock awards		250		250
Common shares issuable upon conversion of senior secured convertible notes		27,590		—
Total		39,422		4,710

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 20. Commitments and Contingencies

From time to time, the Company is subject to various claims and legal proceedings that arise in the ordinary course of business. The Company accrues for losses related to litigation when a potential loss is probable, and the loss can be reasonably estimated. As of March 31, 2023, the Company was not party to any material legal proceedings for which a loss was probable or an amount was accrued.

As of March 31, 2023 and 2022, Enertec’s guarantees balance from Hapoalim bank was $3.8 million and $4.2 million, respectively for project implementation fees which are released upon delivery of the project products to the customer.

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Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

Note 21. Segment Information

The Company has three reportable segments as of March 31, 2023. Prior to the Acquisition, GWW operated as two operating segments but aggregated its results into one reportable segment based on similarity in economic characteristics, other qualitative factors and the objectives and principals of Accounting Standards Codification 280, Segment Reporting.

The following data presents the revenues, expenditures and other operating data of the Company’s operating segments for the three months ended March 31, 2023 and 2022 (In thousands):

	Three Month Period Ended March 31, 2023														Three Month Period Ended March 31, 2022
Description	Precision Electronic Solutions			Power Electronics & Displays				RF Solutions			Total			Precision Electronic Solutions				Power Electronics & Displays			RF Solutions			Total
Revenue	$	3,941			$	2,991		$	1,791		$	8,723			$	3,254		$	2,479		$	1,511		$	7,244
Cost of revenue		3,210				2,112			1,238			6,560				2,316			1,594			842			4,751
Gross profit		730				879			554			2,163				939			886			669			2,493
Operating expenses		2,791				1,682			1,481			5,954				1,117			1,028			839			2,984
Other income (expense), net and income tax benefit (provision)		(560	)			(587	)		(187	)		(1,334	)			26			(15	)		8			19
Loss from continuing operations before income taxes	$	(1,502	)		$	(215	)	$	(740	)	$	(2,457	)		$	(203	)	$	(128	)	$	(178	)	$	(510	)
Assets (at period end)	$	19,402			$	8,697		$	10,652		$	38,751			$	17,206		$	7,564		$	9,781		$	34,550

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Consolidated Proforma Unaudited Financial Statements

3 Months Ended

Mar. 31, 2023

Business Acquisition, Pro Forma Information [Abstract]

Consolidated Proforma Unaudited Financial Statements

Note 22. Consolidated Proforma Unaudited Financial Statements

The following unaudited proforma combined financial information is based on the historical financial statements of the Company and Giga-tronics and subsidiaries after giving effect to the Company’s acquisition of the companies as if the acquisition occurred on January 1, 2022.

The following unaudited proforma information does not purport to present what the Company’s actual results would have been had the acquisition occurred on January 1, 2022, nor is the financial information indicative of the results of future operations. The following table represents the unaudited consolidated proforma results of operations for the three months ended March 31, 2023 and March 31, 2022, as if the acquisition occurred on January 1, 2022.

Proforma, unaudited (In thousands)	Gresham
Three months ended March 31, 2023	Worldwide, Inc.			Giga-tronics			Proforma Adjustments		Proforma Unaudited
Net Sales	$	8,293		$	430		$	—	$	8,723
Cost of Sales		5,880			680			—		6,560
Operating expenses		4,284			1,670			—		5,954
Other income (expense)		807			527			—		1,334
Income tax benefit		7			—			—		7
Net gain attributable to non-controlling interest		14			—			—		14
Net loss attributable to common stockholders	$	(1,070	)	$	(1,394	)	$	—	$	(2,464	)
Proforma, unaudited (In thousands)	Gresham
Three months ended March 31, 2022	Worldwide, Inc.			Giga-tronics			Proforma Adjustments		Proforma Unaudited
Net Sales	$	7,244		$	1,436		$	—	$	8,680
Cost of Sales		4,751			1,036			—		5,787
Operating expenses		2,984			1,555			—		4,539
Other income (expense)		(19	)		(17	)		—		(36	)
Income tax provision		—			—			—		—
Net loss attributable to non-controlling interest		(13	)		—			—		(13	)
Deemed dividend on Series E preferred stock		—			(2	)				(2	)
Net loss attributable to common stockholders	$	(497	)	$	(1,174	)	$	—	$	(1,671	)

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Subsequent Events

3 Months Ended

Mar. 31, 2023

Subsequent Events [Abstract]

Subsequent Events

Note 23. Subsequent Events

Ault provided payments totaling $816,822, from April 1, 2023 through July 4, 2023 on account of receivables, related party.

Related party loans of $100,000 with zero percent interest and no due date were issued in May 2023.

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Basis of Presentation and Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Other than as noted below, there have been no material changes to the Company’s significant accounting policies previously disclosed in the 2022 Annual Report.

Principles of Consolidation

Principles of Consolidation

The Acquisition was accounted for as a reverse recapitalization with GWW being the accounting acquirer and GIGA being the acquired company for accounting purposes. All historical financial information presented in the unaudited condensed consolidated financial statements represents the accounts of GWW and its wholly owned and majority owned subsidiaries. The unaudited condensed consolidated financial statements after completion of the Acquisition will include the assets and liabilities and operations of GIGA and its subsidiaries from the Closing Date of the Acquisition. All intercompany transactions and balances have been eliminated. The shares and net loss per common share prior to the merger have been retroactively restated to reflect the share exchange ratio established in the merger.

Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments - Credit Losses (Topic 326),” (“ASU 2016-13”) to improve information on credit losses for financial assets and net investment in leases that are not accounted for at fair value through net income. ASU 2016-13 replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. This guidance was effective for the Company beginning on January 1, 2023. The adoption of this guidance did not have a material impact on the Company’s unaudited condensed consolidated financial statements.

In January 2017, FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminated the calculation of implied goodwill fair value. Instead, companies will record an impairment charge based on the excess of a reporting unit’s carrying amount of goodwill over its fair value. This guidance was effective for the Company beginning on January 1, 2023. The adoption of this guidance did not have a material impact on the Company’s unaudited condensed consolidated financial statements.

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Revenue Disaggregation (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregated Revenues

The Company’s disaggregated revenues are comprised of the following (In thousands):

	Three Months Ended
Category	March 31, 2023		March 31, 2022
Primary Geographical Markets
North America	$	2,328	$	1,511
Europe		2,832		2,179
Middle East and other		3,563		3,554
Total revenue	$	8,723	$	7,244
Major Goods
RF/microwave filters	$	1,247	$	1,511
Detector logarithmic video amplifiers		545		—
Power supply units and systems		2,694		2,479
Healthcare diagnostic systems		1,193		—
Defense systems		3,044		3,254
Total revenue	$	8,723	$	7,244
Timing of Revenue Recognition
Goods transferred at a point in time	$	5,087	$	3,511
Services transferred over time		3,636		3,733
Revenue from contracts with customers	$	8,723	$	7,244

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Accounts Receivables, Related Party (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Summary of Changes in Accounts Receivables, Related Party

The following table summarizes the changes in the Company’s accounts receivables, related party for the three months ended March 31, 2023 (In thousands):

Description	Accounts receivables, related party
Balance as of January 1, 2023	$	1,242
Receipts during the period		(301	)
Balance as of March 31, 2023	$	941

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Inventories, Net (Tables)

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Schedule of Inventories, Net

Inventories, net, are comprised of the following (In thousands):

Category	March 31, 2023		December 31, 2022
Raw materials	$	3,120	$	2,758
Work-in-progress		3,195		3,186
Finished goods		1,648		1,751
Total	$	7,963	$	7,695

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Property and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment, Net

Property and Equipment, net, are comprised of the following (In thousands):

Category	March 31, 2023			December 31, 2022
Machinery and equipment	$	6,920		$	6,912
Computer, software and related equipment		1,877			1,858
Leasehold improvements and office equipment		2,160			2,148
Total		10,957			10,918
Less: accumulated depreciation and amortization		(8,884	)		(8,678	)
Property and equipment, net	$	2,073		$	2,240

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Intangible Assets, Net (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets, Net

Intangible assets, net, are comprised of the following (In thousands):

Category	Useful Life	March 31, 2023			December 31, 2022
Trademark	Indefinite life	$	1,503			$	1,493
Customer list	10-14 years		3,787				3,825
Total			5,290				5,318
Less: accumulated depreciation and amortization			(1,885	)			(1,842	)
Intangible assets, net		$	3,405			$	3,476

Schedule of Estimated Amortization Expense

The following table presents estimated amortization expense for each of the succeeding five calendar years and thereafter (In thousands):

Fiscal Year	March 31, 2023
2023 (remainder)	$	242
2024		323
2025		323
2026		323
2027		323
2028		323
Thereafter		45
	$	1,902

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Goodwill (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Goodwill

The following table summarizes the changes in the Company’s goodwill for the three months ended March 31, 2023 (In thousands):

Description	Goodwill
Balance as of January 1, 2023	$	9,054
Effect of exchange rate changes		(106	)
Balance as of March 31, 2023	$	8,948

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Other Current Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Other Liabilities Disclosure [Abstract]

Schedule of Other Current Liabilities

As of March 31, 2023 and December 31, 2022, other current liabilities consists of the following (In thousands):

Category	March 31, 2023		December 31, 2022
Accrued payroll and payroll taxes	$	2,412	$	2,401
Deferred revenue		1,256		1,028
Other accrued expense		356		825
Other current liabilities	$	4,024	$	4,254

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Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Components of Lease Expenses

The components of lease expenses for the three months ended March 31, 2023 and 2022 were as follow (In thousands):

	Three Months Ended		Three Months Ended
	March 31, 2023		March 31, 2022
Operating lease cost	$	356	$	273

Summary of Supplemental Unaudited Condensed Consolidated Balance Sheet Information Related to Operating Leases

Supplemental unaudited condensed consolidated balance sheet information related to operating leases was as follows:

	Three Months Ended		Three Months Ended
	March 31, 2023		March 31, 2022
Weighted-average remaining lease term - operating leases	5.6 years		8.5 years
Weighted-average discount rate - operating leases		N/A%		8	%

Maturity of Lease Liabilities under Non-cancellable Operating Leases

Maturity of lease liabilities under our non-cancellable operating leases as of March 31, 2023 are as follow (In thousands):

Fiscal Year	Operating leases
2023 (remaining)	$	963
2024		932
2025		770
2026		509
2027		357
2028		357
Thereafter		760
Total future minimum lease payments		4,648
Less: imputed interest		(919	)
Present value of lease liabilities	$	3,729

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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Recurring Basis Fair Value Measurements

The fair value hierarchy table for the periods indicated is as follows:

	Fair value measurement on a recurring basis at reporting date using (1)
(In thousands)	Level 1		Level 2		Level 3		Total
Balance at March 31, 2023
Senior Secured Convertible Note (2), related party	$	—	$	—	$	3,717	$	3,717
Senior Secured Convertible Note (3), related party		—		—		5,725		5,725
Senior Secured Convertible Note (4)		—		—		1,660		1,660
Warrant liability		—		—		734		734
Total liabilities measured at fair value	$	—	$	—	$	11,836	$	11,836
Balance at December 31, 2022
Senior Secured Convertible Note (2), related party	$	—	$	—	$	3,940	$	3,940
Senior Secured Convertible Note (3), related party		—		—		6,068		6,068
Total liabilities measured at fair value	$	—	$	—	$	10,008	$	10,008

1 There were no transfers between the respective Levels during the three month period ended March 31, 2023 and the year ended December 21, 2022.

Schedule of Changes to Level 3 Measured Liabilities

Below are the changes to level 3 measured liabilities:

	Level 3 measured
	liabilities
Fair value at December 31, 2022	$	10,008
Fair value of senior secured convertible notes issued		1,803
Fair value of warrants issued with senior secured convertible notes		1,530
Change in fair value		(1,505	)
Fair value at March 31, 2023	$	11,836

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Senior Secured Convertible Notes (4) and Warrants (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Summary of Notes Payable at Fair Value

Notes payable at March 31, 2023 and December 31, 2022, were comprised of the following :

Fair value (In thousands)	Total
Balance as of December 31, 2022	$	—
Issuance of Senior Secured Convertible Notes (4) at January 11, 2023		1,803
Change in fair value of Senior Secured Convertible Notes		(143	)
Balance as of March 31, 2023	$	1,660

Summary of Estimated Probability And Estimated Date of Notes Payable

On January 11, 2023, the Company ascribed following probabilities to four possible scenarios:

	March 31, 2023				January 11, 2023
Scenario description	Estimated probability			Estimated date	Estimated probability			Estimated date
Uplist transaction		10.0	%	September 30, 2023		60.0	%	June 30, 2023
Held to maturity		60.0	%	October 6, 2023		10.0	%	October 6, 2023
Change of control		5.0	%	September 30, 2023		5.0	%	September 30, 2023
Default/ dissolution		25.0	%	September 1, 2023		25.0	%	September 1, 2023
Total		100.0	%			100.0	%

Schedule of Senior Secured Convertible Note

Based on these estimates, the Company arrived at the fair value of the Notes liability as shown below:

Senior Secured Convertible Notes (4):	March 31, 2023			January 11, 2023
Fair Value (In thousands)	$	1,660			$	1,803
Face value principle payment (In thousands)	$	3,333			$	3,333
Face value at Premium (In thousands)	$	4,166			$	4,166
Conversion Price	$	0.25			$	0.78
Maturity Date	October 6, 2023				October 6, 2023
Interest rate		6.00	%			6.00	%
Valuation technique	PWERM				PWERM

Schedule of Warranty Liability and Fair Value Analysis

The Warrants are liability classified and the Company performed a fair value analysis as shown below:

Warrant liability, current:	March 31, 2023			January 11, 2023
Fair Value (In thousands)	$	734		$	1,530
Number of warrants	$	1,666,667		$	1,666,667
Closing price (OTCB: GIGA)	$	0.30		$	0.80
Volatility		143.30	%		133.60	%
Risk-free discount rate		3.60	%		3.72	%
Term	5 years			5 years
Expiration date	January 11, 2028			January 11, 2028
Valuation technique	Monte Carlo simulation			Monte Carlo simulation

The warrants are classified as equity:

	January 11, 2023
Fair value (In thousands)	$	858
Number of warrants		1,200,000
Closing price (OTCB: GIGA)	$	0.80
Volatility		133.6	%
Risk-free discount rate		3.72	%
Contractual term in years	5 years
Expiration date	January 11, 2028
Valuation technique	Monte Carlo simulation

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Notes Payable (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Schedule of Notes Payable

Notes payable at March 31, 2023 and December 31, 2022, were comprised of the following (In thousands):

	Due date	Interest rate			March 31, 2023			December 31, 2022
Bank credit			3.7	%		1,580			1,623
Other short-term notes payable			3.0	%		417			425
Financed receivables	Cancelled January 10, 2023		8.5	%		—			71
Total notes payable						1,997			2,119
Less: current portion						(1,715	)		(1,797	)
Notes payable - long-term portion					$	282		$	322

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Senior Secured Convertible Notes, Related Party - (Tables)

3 Months Ended

Mar. 31, 2023

Payables and Accruals [Abstract]

Summary of Changes in the Senior Secured Convertible Notes, Related Party

The following table summarizes the changes in the Senior secured convertible notes, related party for the three months ended March 31, 2023 (In thousands):

	Senior Secured			Senior Secured
	Convertible Note (2)			Convertible Note (3)			Total
Fair value at December 31, 2022	$	3,940		$	6,068		$	10,008
Change in fair value of senior secured convertible notes, related party		(223	)		(343	)		(566	)
Balance at March 31, 2023	$	3,717		$	5,725		$	9,442

Schedule of Assumptions Associated with the Fair Value Calculations of Notes Payable to Related Party

The significant assumptions associated with the fair value of the Notes payable, related party as of the dates indicated, are as follows:

	March 31, 2023			December 31, 2022
Face value principle payment (In thousands)	$	11,133		$	11,133
Conversion Price	$	0.78		$	0.78
Maturity Date	December 31, 2024			December 31, 2024
Interest rate		10.00	%		10.00	%
Discount rate		27.30	%		27.30	%
Valuation technique	PWERM			PWERM
Fair Value (In thousands)	$	9,442		$	10,008

XML

Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2023

Related Party Transactions [Abstract]

Schedule of Related Party Transactions

	Three Months Ended
	March 31, 2023		March 31, 2022
Related party transactions	$	—	$	340

XML

Concentration of Credit Risk (Tables)

3 Months Ended

Mar. 31, 2023

Risks and Uncertainties [Abstract]

Percentage of Total Revenues Attributable to Single Customer from Which 10% or More of Total Revenues

The following table provides the percentage of total revenues attributable to a single customer from which 10% or more of total revenues are derived:

	Three Months Ended					Three Months Ended
Segment	March 31, 2023		% of Total Revenue			March 31, 2022		% of Total Revenue
Customer A	$	2,068		24	%	$	2,505		35	%
Customer B	$	1,052		12	%	$	—		—	%
Customer C	$	872		10	%	$	760		10.0	%

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Net Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following is a reconciliation of the numerators and denominators used in computing basic and diluted net loss per share:

(In thousands except share data)	Three Months Ended
	March 31, 2023			March 31, 2022
Numerator
Net loss attributable to common stockholders	$	(2,464	)	$	(497	)
Denominator
Basic weighted average shares outstanding		5,932			2,920
Effect of dilutive securities		—			—
Diluted weighted-average shares		5,932			2,920
Net loss per share attributable to common stockholders, basic and diluted	$	(0.42	)	$	(0.17	)

Schedule of Antidilutive Securities

The following table sets forth potential shares of common stock that are not included in the diluted net loss per share calculation above because to do so would be anti-dilutive for the periods indicated:

Anti-dilutive securities	March 31, 2023		March 31, 2022
Common shares issuable upon exercise of stock options		789		500
Common shares issuable on conversion of series F preferred stock		3,960		3,960
Common shares issuable upon exercise of warrants		6,833		—
Restricted stock awards		250		250
Common shares issuable upon conversion of senior secured convertible notes		27,590		—
Total		39,422		4,710

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Schedule of Revenues, Expenditures and Other Operating Data of Company's Operating Segments

The following data presents the revenues, expenditures and other operating data of the Company’s operating segments for the three months ended March 31, 2023 and 2022 (In thousands):

	Three Month Period Ended March 31, 2023														Three Month Period Ended March 31, 2022
Description	Precision Electronic Solutions			Power Electronics & Displays				RF Solutions			Total			Precision Electronic Solutions				Power Electronics & Displays			RF Solutions			Total
Revenue	$	3,941			$	2,991		$	1,791		$	8,723			$	3,254		$	2,479		$	1,511		$	7,244
Cost of revenue		3,210				2,112			1,238			6,560				2,316			1,594			842			4,751
Gross profit		730				879			554			2,163				939			886			669			2,493
Operating expenses		2,791				1,682			1,481			5,954				1,117			1,028			839			2,984
Other income (expense), net and income tax benefit (provision)		(560	)			(587	)		(187	)		(1,334	)			26			(15	)		8			19
Loss from continuing operations before income taxes	$	(1,502	)		$	(215	)	$	(740	)	$	(2,457	)		$	(203	)	$	(128	)	$	(178	)	$	(510	)
Assets (at period end)	$	19,402			$	8,697		$	10,652		$	38,751			$	17,206		$	7,564		$	9,781		$	34,550

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Consolidated Proforma Unaudited Financial Statements (Tables)

3 Months Ended

Mar. 31, 2023

Business Acquisition, Pro Forma Information [Abstract]

Summary of Unaudited Pro Forma Financial Information

The following table represents the unaudited consolidated proforma results of operations for the three months ended March 31, 2023 and March 31, 2022, as if the acquisition occurred on January 1, 2022.

Proforma, unaudited (In thousands)	Gresham
Three months ended March 31, 2023	Worldwide, Inc.			Giga-tronics			Proforma Adjustments		Proforma Unaudited
Net Sales	$	8,293		$	430		$	—	$	8,723
Cost of Sales		5,880			680			—		6,560
Operating expenses		4,284			1,670			—		5,954
Other income (expense)		807			527			—		1,334
Income tax benefit		7			—			—		7
Net gain attributable to non-controlling interest		14			—			—		14
Net loss attributable to common stockholders	$	(1,070	)	$	(1,394	)	$	—	$	(2,464	)
Proforma, unaudited (In thousands)	Gresham
Three months ended March 31, 2022	Worldwide, Inc.			Giga-tronics			Proforma Adjustments		Proforma Unaudited
Net Sales	$	7,244		$	1,436		$	—	$	8,680
Cost of Sales		4,751			1,036			—		5,787
Operating expenses		2,984			1,555			—		4,539
Other income (expense)		(19	)		(17	)		—		(36	)
Income tax provision		—			—			—		—
Net loss attributable to non-controlling interest		(13	)		—			—		(13	)
Deemed dividend on Series E preferred stock		—			(2	)				(2	)
Net loss attributable to common stockholders	$	(497	)	$	(1,174	)	$	—	$	(1,671	)

XML

Description of Business - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023 Subsidiaries Divisions
Power Electronics & Displays [Member]
Number of subsidiaries	2
Precision Electronic Solutions [Member]
Number of subsidiaries	1
Number of division | Divisions	1

XML

Basis of Presentation and Significant Accounting Policies - Additional Information (Details)	Mar. 31, 2023
ASU 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in accounting principle accounting standards update adopted	true
Change in accounting principle accounting standards update adoption date	Jan. 01, 2023
Change in accounting principle accounting standards update immaterial effect	false
ASU 2017-04
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in accounting principle accounting standards update adopted	true
Change in accounting principle accounting standards update adoption date	Jan. 01, 2023
Change in accounting principle accounting standards update immaterial effect	false

XML

Revenue Disaggregation - Schedule of Disaggregated Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	$ 8,723	$ 7,244
Goods transferred at a point in time
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	5,087	3,511
Services transferred over time
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	3,636	3,733
RF/microwave filters
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	1,247	1,511
Detector logarithmic video amplifiers
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	545	0
Power supply units and systems
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	2,694	2,479
Healthcare diagnostic systems
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	1,193	0
Defense systems
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	3,044	3,254
North America
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	2,328	1,511
Europe
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	2,832	2,179
Middle East and other
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	$ 3,563	$ 3,554

XML

Accounts Receivables, Related Party - Summary of Changes in Accounts Receivables, Related Party (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Accounts and Financing Receivable, after Allowance for Credit Loss, Current [Abstract]
Balance as of January 1, 2023	$ 1,242
Receipts during the period	(301)
Balance as of March 31, 2023	$ 941

XML

Inventories, Net - Schedule of Inventories, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 3,120	$ 2,758
Work-in-progress	3,195	3,186
Finished goods	1,648	1,751
Total	$ 7,963	$ 7,695

XML

Property and Equipment, Net - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 10,957	$ 10,918
Less: accumulated depreciation and amortization	(8,884)	(8,678)
Property and equipment, net	2,073	2,240
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,920	6,912
Computer, Software and Related Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,877	1,858
Leasehold Improvements And Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,160	$ 2,148

XML

Property and Equipment, Net - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation expenses	$ 181,000	$ 142,000

XML

Business Combination - Summary of Preliminary Purchase Price Allocation (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Identifiable net assets acquired (liabilities assumed)
Goodwill	$ 8,948	$ 9,054

XML

Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 5,290	$ 5,318
Less: accumulated depreciation and amortization	(1,885)	(1,842)
Intangible assets, net	$ 3,405	3,476
Trademark [Member]
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Indefinite lived intangible asset, Useful life	Indefinite life
Intangible assets, gross	$ 1,503	1,493
Customer List [Member]
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 3,787	$ 3,825
Customer List [Member] | Minimum [Member]
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Intangible assets, Useful life	10 years
Customer List [Member] | Maximum [Member]
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Intangible assets, Useful life	14 years

XML

Intangible Assets, Net - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 73,000	$ 80,000

XML

Intangible Assets, Net - Schedule Of Estimated Amortization Expense (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2023 (remainder)	$ 242
2024	323
2025	323
2026	323
2027	323
2028	323
Thereafter	45
Total estimated amortization expense	$ 1,902

XML

Goodwill - Schedule of Changes in Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, Beginning Balance	$ 9,054
Effect of exchange rate changes	(106)
Goodwill, Ending Balance	$ 8,948

XML

Term Loan - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Short-Term Debt [Line Items]
Face value principle payment	$ 11,133	$ 11,133
Debt instrument, interest rate, stated percentage	10.00%	10.00%

XML

Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Other Liabilities Disclosure [Abstract]
Accrued payroll and payroll taxes	$ 2,412	$ 2,401
Deferred revenue	1,256	1,028
Other accrued expense	356	825
Other current liabilities	$ 4,024	$ 4,254

XML

Leases - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023
Lessee, Lease, Description [Line Items]
Lessee, operating lease, remaining lease term	6 months
Lessee, operating lease, option to extend	some of which may include options to extend the leases perpetually
Lessee, operating lease, existence of option to extend	true
Lessee, operating lease, option to terminate	some of which may include options to terminate the leases within 1 year.
Lessee, operating lease, existence of option to terminate	true
Minimum [Member]
Lessee, Lease, Description [Line Items]
Lessee, operating lease, termination lease term	1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Lessee, operating lease, remaining lease term	8 years 6 months

XML

Leases - Components of Lease Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Lease, Cost [Abstract]
Operating lease costs	$ 356	$ 273

XML

Leases - Summary of Supplemental Unaudited Condensed Consolidated Balance Sheet Information Related to Operating Leases (Details)	Mar. 31, 2023	Mar. 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Weighted-average remaining lease term - operating leases	5 years 7 months 6 days	8 years 6 months
Weighted-average discount rate - operating leases		8.00%

XML

Leases - Maturity of Lease Liabilities under Non-cancellable Operating Leases (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Leases [Abstract]
2023 (remaining)	$ 963
2024	932
2025	770
2026	509
2027	357
2028	357
Thereafter	760
Total future minimum lease payments	4,648
Less: imputed interest	(919)
Present value of lease liabilities	$ 3,729

XML

Fair Value of Financial Instruments - Schedule of Recurring Basis Fair Value Measurements (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	$ 11,836	$ 10,008
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	11,836	10,008
Senior Secured Convertible Note (2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	3,717	3,940
Senior Secured Convertible Note (2) [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	0	0
Senior Secured Convertible Note (2) [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	0	0
Senior Secured Convertible Note (2) [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	3,717	3,940
Senior Secured Convertible Note (3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	5,725	6,068
Senior Secured Convertible Note (3) [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	0	0
Senior Secured Convertible Note (3) [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	0
Senior Secured Convertible Note (3) [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	5,725	$ 6,068
Senior Secured Convertible Note (4) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	1,660
Senior Secured Convertible Note (4) [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	0
Senior Secured Convertible Note (4) [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	0
Senior Secured Convertible Note (4) [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	1,660
Warrant Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	734
Warrant Liability [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	0
Warrant Liability [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	0
Warrant Liability [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	$ 734

XML

Fair Value of Financial Instruments - Schedule of Changes to Level 3 Measured Liabilities (Details) - Fair Value, Inputs, Level 3 [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at December 31, 2022	$ 10,008
Fair value of senior secured convertible notes issued	1,803
Change in fair value	(1,505)
Balance at March 31, 2023	11,836
Warrant Liability [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of senior secured convertible notes issued	$ 1,530

XML

Senior Secured Convertible Notes (4) and Warrants - Additional Information (Details) - USD ($)		3 Months Ended
	Jan. 11, 2023	Mar. 31, 2023	Dec. 31, 2022
Line of Credit Facility [Line Items]
Debt instrument prepay premium percent upon event of default	125.00%
Conversion price	$ 0.25	$ 0.78	$ 0.78
Probability of notes payable	100.00%	100.00%
Change in fair value of warrants		$ 796,000
Warrant to purchase of common stock	1,666,666
Warrant issued term	5 years
Issuance at an exercise price description	(i) beginning on the issuance date and for a period of 90 days thereafter, $0.78, (ii) if the Uplist Transaction has occurred as of the date of exercise, the lower of (A) $0.78 and (B) 110% of the per share offering price to the public in the Uplist Transaction, and (iii) if neither of (i) and (ii) apply, the lower of (A) $0.78 and (B) 90% of the lowest VWAP for the 10 trading days prior to the date of the exercise, subject to adjustment including downward adjustment upon any dilutive issuance of securities.
Spartan Capital Securities
Line of Credit Facility [Line Items]
Proceeds from issuance of warrants	$ 240,000
Fair value analysis for warrants	1,200,000
Ascribed fair value	$ 858,000
Percenatge of cash commission	8.00%
Placement Agent an expense allowance	$ 30,000
Warrants sold in offering	1,200,000
Percentage of number of shares of common stock underlying the notes	8.00%
Warrant exercise price percentage	110.00%
Warrant issued term	5 years
Uplist Transaction [Member]
Line of Credit Facility [Line Items]
Probability of notes payable	60.00%	10.00%
Date of notes payable	Jun. 30, 2023	Sep. 30, 2023
Liablity Remaining [Member]
Line of Credit Facility [Line Items]
Probability of notes payable		60.00%
Senior Secured Convertible Notes (4) [Member]
Line of Credit Facility [Line Items]
Debt maturity date	Oct. 06, 2023	Oct. 06, 2023
Debt instrument accrued interest	6.00%
Increase in debt instrument accrued interest upon event of default	18.00%
Debt instrument accrued interest upon event of default	20.00%
Debt instrument prepay premium percent upon event of default	125.00%
Conversion price	$ 0.78	$ 0.25
Change in fair value of Notes		$ 143,000
Senior Secured Convertible Notes (4) [Member] | Securities Purchase Agreement [Member]
Line of Credit Facility [Line Items]
Convertible notes	$ 3,300,000
Proceeds from issuance of warrants	$ 3,000,000
Warrant issued term	5 years

XML

Senior Secured Convertible Notes (4) and Warrants at Fair Value- Summary of Notes payable (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Line of Credit Facility [Line Items]
Change in fair value of Senior Secured Convertible Notes	$ (143)	$ 0
Senior Secured Convertible Notes (4) [Member]
Line of Credit Facility [Line Items]
Balance as of December 31, 2022	0
Issuance of Senior Secured Convertible Notes (4) at January 11, 2023	1,803
Change in fair value of Senior Secured Convertible Notes	(143)
Balance as of March 31, 2023	$ 1,660

XML

Senior Secured Convertible Notes (4) and Warrants- Summary of Estimated Probability and Estimated Date of Notes Payable (Details)	Mar. 31, 2023	Jan. 11, 2023
Line of Credit Facility [Line Items]
Estimated probaility	100.00%	100.00%
Uplist Transaction [Member]
Line of Credit Facility [Line Items]
Estimated probaility	10.00%	60.00%
Estimated date	Sep. 30, 2023	Jun. 30, 2023
Held to Maturity [Member]
Line of Credit Facility [Line Items]
Estimated probaility	60.00%	10.00%
Estimated date	Oct. 06, 2023	Oct. 06, 2023
Change of Control [Member]
Line of Credit Facility [Line Items]
Estimated probaility	5.00%	5.00%
Estimated date	Sep. 30, 2023	Sep. 30, 2023
Default/Dissolution [Member]
Line of Credit Facility [Line Items]
Estimated probaility	25.00%	25.00%
Estimated date	Sep. 01, 2023	Sep. 01, 2023

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Senior Secured Convertible Notes (4) and Warrants - Schedule of Senior Secured Convertible Note (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended	12 Months Ended
	Jan. 11, 2023	Mar. 31, 2023	Dec. 31, 2022
Line of Credit Facility [Line Items]
Fair Value		$ 9,442	$ 10,008
Conversion Price	$ 0.25	$ 0.78	$ 0.78
Interest rate		10.00%	10.00%
Valuation technique		PWERM	PWERM
Senior Secured Convertible Notes (4) [Member]
Line of Credit Facility [Line Items]
Fair Value	$ 1,803	$ 1,660
Face value principle payment	3,333	3,333
Face value at Premium	$ 4,166	$ 4,166
Conversion Price	$ 0.78	$ 0.25
Maturity Date	Oct. 06, 2023	Oct. 06, 2023
Interest rate	6.00%	6.00%
Valuation technique	PWERM	PWERM

XML

Senior Secured Convertible Notes (4) and Warrants - Schedule of Warranty Liability and Fair Value Analysis (Details) $ / shares in Units, $ in Thousands		3 Months Ended	12 Months Ended
	Jan. 11, 2023 USD ($) $ / shares shares	Mar. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022
Class of Warrant or Right [Line Items]
Valuation technique		PWERM	PWERM
Spartan Capital Securities, LLC [Member]
Class of Warrant or Right [Line Items]
Fair Value | $	$ 858
Number of warrants | shares	1,200,000
Closing price (OTCB: GIGA) | $ / shares	$ 0.80
Term	5 years
Expiration date	Jan. 11, 2028
Valuation technique	Monte Carlo simulation
Spartan Capital Securities, LLC [Member] | Volatility [Member]
Class of Warrant or Right [Line Items]
Measurement input	1.336
Spartan Capital Securities, LLC [Member] | Risk-Free Discount Rate [Member]
Class of Warrant or Right [Line Items]
Measurement input	0.0372
Warrant [Member]
Class of Warrant or Right [Line Items]
Fair Value | $	$ 1,530	$ 734
Number of warrants | shares	1,666,667	1,666,667
Closing price (OTCB: GIGA) | $ / shares	$ 0.80	$ 0.30
Term	5 years	5 years
Expiration date	Jan. 11, 2028	Jan. 11, 2028
Valuation technique	Monte Carlo simulation	Monte Carlo simulation
Warrant [Member] | Volatility [Member]
Class of Warrant or Right [Line Items]
Measurement input	1.3360	1.4330
Warrant [Member] | Risk-Free Discount Rate [Member]
Class of Warrant or Right [Line Items]
Measurement input	0.0372	0.0360

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Notes Payable - Schedule of Notes Payable (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Short-Term Debt [Line Items]
Interest rate	10.00%	10.00%
Total notes payables	$ 1,997	$ 2,119
Less: current portion	(1,715)	(1,797)
Notes payable - long-term portion	$ 282	322
Bank Credit [Member]
Short-Term Debt [Line Items]
Interest rate	3.70%
Total notes payables	$ 1,580	1,623
Other Short-term Notes Payable [Member]
Short-Term Debt [Line Items]
Interest rate	3.00%
Total notes payables	$ 417	425
Financed Receivables [Member]
Short-Term Debt [Line Items]
Debt maturity date	Jan. 10, 2023
Interest rate	8.50%
Total notes payables		$ 71

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Senior Secured Convertible Notes, Related Party - Summary of Changes in the Senior Secured Convertible Notes, Related Party (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Related Party Transaction [Line Items]
Fair value at December 31, 2022	$ 10,008
Change in fair value of senior secured convertible notes, related party	(566)
Balance at March 31, 2023	9,442
Senior Secured Convertible Note (2) [Member]
Related Party Transaction [Line Items]
Fair value at December 31, 2022	3,940
Change in fair value of senior secured convertible notes, related party	(223)
Balance at March 31, 2023	3,717
Senior Secured Convertible Note (3) [Member]
Related Party Transaction [Line Items]
Fair value at December 31, 2022	6,068
Change in fair value of senior secured convertible notes, related party	(343)
Balance at March 31, 2023	$ 5,725

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Senior Secured Convertible Notes, Related Party - Schedule of Assumptions Associated with the Fair Value Calculations of Notes Payable to Related Party (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Jan. 11, 2023
Related Party Transaction [Line Items]
Face value principle payment	$ 11,133	$ 11,133
Conversion Price	$ 0.78	$ 0.78	$ 0.25
Maturity Date	Dec. 31, 2024	Dec. 31, 2024
Interest rate	10.00%	10.00%
Discount rate	27.30	27.30
Valuation technique	PWERM	PWERM
Fair Value	$ 9,442	$ 10,008

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Senior Secured Convertible Notes, Related Party - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023 USD ($)
Debt Instrument [Line Items]
Fair value of notes payable	$ (566,000)
Senior Secured Convertible Notes [Member]
Debt Instrument [Line Items]
Fair value of notes payable	$ 566,000

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Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Ault [Member]
Related Party Transaction [Line Items]
Related party transactions	$ 0	$ 340,000

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Related Party Transactions - Additional Information (Details) - Ault [Member] - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Related Party Transaction [Line Items]
Advance received from related party	$ 0	$ 177,000
Related party transactions	$ 0	$ 340,000

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Sale of Common Stock and Prefunded Warrants - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Class of Warrant or Right [Line Items]
Change in fair value of warrants issued with senior secured convertible notes	$ (796)	$ 0

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Stock-based Compensation - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based payment arrangement, nonvested award, cost not yet recognized, amount, total	$ 509,000
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition (Year)	1 year 2 months 12 days
Stock-based compensation expense	$ 106,000	$ 41,000

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Stockholder's Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Class of Stock [Line Items]
Common stock, shares authorized	100,000,000	13,333,333
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, no par value	$ 0	$ 0
Common Shares Issuable On Conversion of Series F Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized	520	520
Preferred stock, shares issued	514.8	514.8
Preferred stock, shares outstanding	514.8	514.8
Preferred stock, liquidation preference	$ 12,870	$ 12,870

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Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income tax benefit (provision)	$ 7	$ 0

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Concentration of Credit Risk - Percentage of Total Revenues Attributable to Single Customer from Which 10% or More of Total Revenues (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Concentration Risk [Line Items]
Revenues	$ 8,723,000	$ 7,244,000
Customer Concentration Risk [Member] | Total Revenues [Member] | Customer A [Member]
Concentration Risk [Line Items]
Revenues	$ 2,068	$ 2,505
% of Total Revenue	24.00%	35.00%
Customer Concentration Risk [Member] | Total Revenues [Member] | Customer B [Member]
Concentration Risk [Line Items]
Revenues	$ 1,052
% of Total Revenue	12.00%
Customer Concentration Risk [Member] | Total Revenues [Member] | Customer C [Member]
Concentration Risk [Line Items]
Revenues	$ 872	$ 760
% of Total Revenue	10.00%	10.00%

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Net Loss Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator
Net loss attributable to common stockholders	$ (2,464)	$ (497)
Denominator
Basic weighted average shares outstanding	5,932	2,920
Effect of dilutive securities	0	0
Diluted weighted-average shares	5,932	2,920
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (0.42)	$ (0.17)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (0.42)	$ (0.17)

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Net Loss Per Share - Schedule of Antidilutive Securities (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	39,422	4,710
Common Shares Issuable Upon Exercise of Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	789	500
Common Shares Issuable Upon Exercise of Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	6,833	0
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	250	250
Common Shares Issuable On Conversion of Series F Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	3,960	3,960
Common Shares Issuable Upon Conversion of Senior Secured Convertible Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	27,590	0

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Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Guarantee balance for project implementation fees	$ 3.8	$ 4.2

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Segment Information - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023 Segment
Segment Reporting [Abstract]
Number of reportable segments	3
Number of operating segments	2
Operating segment aggregate into number of reportable segment	1

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Segment Information - Schedule of Revenues, Expenditures and Other Operating Data of Company's Operating Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Segment Reporting Information [Line Items]
Revenue	$ 8,723	$ 7,244
Cost of revenue	6,560	4,751
Gross profit	2,163	2,493
Operating expenses	5,954	2,984
Other income (expense), net and income tax benefit (provision)	(1,334)	19
Loss from continuing operations before income taxes	(2,457)	(510)
Assets (at period end)	38,751	34,550	$ 38,954
Precision Electronic Solutions [Member]
Segment Reporting Information [Line Items]
Revenue	3,941	3,254
Cost of revenue	3,210	2,316
Gross profit	730	939
Operating expenses	2,791	1,117
Other income (expense), net and income tax benefit (provision)	(560)	26
Loss from continuing operations before income taxes	(1,502)	(203)
Assets (at period end)	19,402	17,206
Power Electronics & Displays [Member]
Segment Reporting Information [Line Items]
Revenue	2,991	2,479
Cost of revenue	2,112	1,594
Gross profit	879	886
Operating expenses	1,682	1,028
Other income (expense), net and income tax benefit (provision)	(587)	(15)
Loss from continuing operations before income taxes	(215)	(128)
Assets (at period end)	8,697	7,564
RF Solutions [Member]
Segment Reporting Information [Line Items]
Revenue	1,791	1,511
Cost of revenue	1,238	842
Gross profit	554	669
Operating expenses	1,481	839
Other income (expense), net and income tax benefit (provision)	(187)	8
Loss from continuing operations before income taxes	(740)	(178)
Assets (at period end)	$ 10,652	$ 9,781

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Consolidated Proforma Unaudited Financial Statements - Summary of Unaudited Pro Forma Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Business Acquisition [Line Items]
Net gain attributable to non-controlling interest	$ (2,450)	$ (510)
GWW [Member]
Business Acquisition [Line Items]
Net Sales	8,293	7,244
Cost of Sales	5,880	4,751
Operating expenses	4,284	2,984
Other income (expense)	807	(19)
Income tax benefit (Provision)	7
Net gain attributable to non-controlling interest	14	(13)
Net loss attributable to common stockholders	(1,070)	(497)
GIGA [Member]
Business Acquisition [Line Items]
Net Sales	430	1,436
Cost of Sales	680	1,036
Operating expenses	1,670	1,555
Other income (expense)	527	(17)
Deemed dividend on Series E preferred stock		(2)
Net loss attributable to common stockholders	(1,394)	(1,174)
Proforma Unaudited [Member]
Business Acquisition [Line Items]
Net Sales	8,723	8,680
Cost of Sales	6,560	5,787
Operating expenses	5,954	4,539
Other income (expense)	1,334	(36)
Income tax benefit (Provision)	7
Net gain attributable to non-controlling interest	14	(13)
Deemed dividend on Series E preferred stock		(2)
Net loss attributable to common stockholders	$ (2,464)	$ (1,671)

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Subsequent Events - Additional Information (Details) - Subsequent Event [Member] - USD ($)		3 Months Ended
	May 31, 2023	Jul. 04, 2023
Subsequent Event [Line Items]
Related party loans amount	$ 100,000
Related party transaction, interest rate	0.00%
Ault Lending, Inc. [Member]
Subsequent Event [Line Items]
Advance received from related party		$ 816,822