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Note 15 - Commitments and Contingencies
12 Months Ended
Jan. 02, 2022
Notes to Financial Statements  
Commitments Disclosure [Text Block]

NOTE 15-COMMITMENTS AND CONTINGENCIES

 

Commitments

 

Certain wafer manufacturers require the Company to forecast wafer starts several months in advance. The Company is committed to take delivery of and pay for a portion of forecasted wafer volume. As of the end of 2021 and 2020, the Company had $972,000 and $60,000 respectively, of outstanding commitments for the purchase of wafer inventory.

 

The Company has purchase obligations with certain suppliers for the purchase of goods and services entered into in the ordinary course of business. As of January 2, 2022, total outstanding purchase obligations were $939,000 all of which is due within next twelve months.

 

Litigation

 

From time to time, the Company may become involved in legal actions arising in the ordinary course of business including, but not limited to, intellectual property infringement and collection matters. Absolute assurance cannot be given that any such third-party assertions will be resolved without costly litigation; in a manner that is not adverse to the Company’s financial position, results of operations or cash flows; or without requiring royalty or other payments which may adversely impact gross profit.