Note 14 - Information Concerning Product Lines, Geographic Information, and Revenue Concentration

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 14 — INFORMATION CONCERNING PRODUCT LINES, GEOGRAPHIC INFORMATION, ACCOUNTS RECEIVABLE AND REVENUE CONCENTRATION

The Company identifies its business segments based on business activities, management responsibility, and geographic location. For all periods presented, the Company operated in a single reportable business segment.

The following is a breakdown of revenue by product family (in thousands): 

	Fiscal Years
	2023		2022		2021
New products	$	18,211	$	11,675	$	7,761
Mature products		2,987		4,505		4,924
Total revenue	$	21,198	$	16,180	$	12,685

New products revenue consists of revenues from the sale of hardware products manufactured on 180 nanometer or smaller semiconductor processes, eFPGA IP license, professional services, QuickAI and SensiML AI software as a service (SaaS) revenues. Mature products include all products produced on semiconductor processes larger than 180 nanometer.

The following is a breakdown of new products revenue (in thousands): 

	Fiscal Years
	2023		2022		2021
Hardware products	$	1,230	$	3,757	$	4,903
eFPGA IP		16,839		7,545		2,674
SaaS & Other		142		373		184
Total new products revenue	$	18,211	$	11,675	$	7,761

eFPGA IP revenue is comprised primarily of eFPGA intellectual property license revenue, eFPGA-related professional services revenue, and eFPGA-related support and maintenance revenue. eFPGA-IP revenue related to professional services was approximately $16.6 million, $7.4 million, and $1.5 million in the Fiscal Years ended December 31, 2023,  January 1, 2023, and January 2, 2022, respectively.

Contract assets were approximately $3.6 million, $2.0 million, and $0.3 million at December 31, 2023, January 1, 2023, and January 2, 2022, respectively and were included under current assets on the Company's consolidated balance sheets. Contract liabilities of $1.1 million, $0.3 million, and $0.5 million were included in deferred revenue on the Company's consolidated balance sheets at December 31, 2023, January 1, 2023, and January 2, 2022, respectively.

During the year ended January 1, 2023, the Company entered into a multiple-year agreement with a customer to provide professional services over multiple phases of which each phase has to be separately approved prior to commencement of work. Other contractual terms include a termination for convenience clause including the enforceable right to payment for performance completed to date.

The Company assessed the agreement under ASC 606 noting the following judgments, estimates, and conclusions:

•   Each funded phase comprised a separate contract.

•   There were monthly performance obligations associated with stated milestones.

•   The application of the output method resulted in the allocation of the transaction price for the contract on a straight-line basis for the stated milestones.

•   Further, revenue for the contract is recognized at a point in time when control of the asset is transferred to and accepted by the customer.

Associated with this agreement, the Company recognized professional services revenue amounting to $14.8 million and $3.3 million for the fiscal years ended December 31, 2023 and January 1, 2023, respectively.

The Company derives revenue from sales to customers located in North America, Europe and Asia Pacific. North America includes revenue from the United States. Revenue from the United States was $18.6 million or 88% of total revenue, $10.6 million or 67% of total revenue, and $6.9 million or 54% of total revenue in the years ended December 31, 2023,  January 1, 2023, and January 2, 2022, respectively.

The following is a breakdown of revenue by shipping destination (in thousands): 

	Fiscal Years
	2023		2022		2021
Asia Pacific	$	1,965	$	3,558	$	3,352
North America		18,644		10,912		6,885
Europe		589		1,710		2,448
Total revenue	$	21,198	$	16,180	$	12,685

The following distributors and customers accounted for 10% or more of the Company's revenue for the periods presented. Distributor amounts represent revenue from the Company's goods and services sold to a distributor. Customer amounts represent revenues from both distributor and from the Company to an end customer. As such, revenue to a distributor may also include information related to customers.

	Fiscal Years
	2023			2022			2021
Distributor "A"		*			15	%		15	%
Distributor "B"		*			12	%		22	%
Distributor "C"		*			*			11	%
Customer "A"		70	%		20	%		*
Customer "C"		*			16	%		16	%
Customer "F"		*			12	%		14	%
Customer "H"		*			*			10	%

* Represents less than 10% of revenue as of the date presented.

The following distributors and customers accounted for 10% or more of the Company's accounts receivable as of the dates presented:

	December 31,			January 1,
	2023			2023
Distributor "A"		*			14	%
Customer "A"		86	%		*
Customer "C"		*			22	%
Customer "F"		*			44	%
						%
						%

* Represents less than 10% of trade accounts receivable, net, as of the date presented.

Approximately 0.4% and 1.2% of the Company’s long-lived assets, including property and equipment and other assets, were located outside the United States as of December 31, 2023 and January 1, 2023, respectively.