Note 12 - Information Concerning Product Lines, Geographic Information, and Revenue Concentration

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 12 — Information Concerning Product Lines, Geographic Information and Revenue Concentration

The Company identifies its business segment 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):

	Three Months Ended				Six Months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
New products	$	3,057	$	2,233	$	7,933	$	5,288
Mature products		1,070		688		2,201		1,766
Total revenue	$	4,127	$	2,921	$	10,134	$	7,054

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

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

	Three Months Ended				Six Months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Hardware products	$	505	$	366	$	1,000	$	528
eFPGA IP and professional services		2,521		1,857		6,564		4,667
SaaS & Other		31		10		369		93
New products revenue	$	3,057	$	2,233	$	7,933	$	5,288

eFPGA IP and professional services revenue for the three months ended June 30, 2024 and July 2, 2023 was $2.5 million and $1.9 million, respectively, and for the six months ended June 30, 2024 and July 2, 2023 was $6.6 million and $4.7 million, respectively, which were primarily professional services revenue.

Contract assets related to professional services revenue were $2.3 million and $1.0 million as of June 30, 2024 and July 2, 2023, respectively. Contract liabilities related to professional services revenue were $0.7 million and $0.3 million as of June 30, 2024 and July 2, 2023, respectively.

The tables below present disaggregated revenues by geographical location. Revenue attributed to geographic location is based on the destination of the product or service. Substantially all revenues in North America were in the United States. Revenue in the United States was $3.4 million, or 83% of total revenue, and $8.3 million, or 82% of total revenue for the three and six months ended June 30, 2024, respectively and $2.3 million, or 80% of total revenue, and $5.6 million, or 80% of total revenue for the three and six months ended July 2, 2023, respectively.

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

	Three Months Ended				Six Months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Asia Pacific	$	410	$	456	$	1,138	$	1,169
North America		3,611		2,370		8,654		5,688
Europe		106		95		342		197
Total revenue	$	4,127	$	2,921	$	10,134	$	7,054

The following distributors and customers accounted for 10% or more of the Company's revenue for the periods presented:

	Three Months Ended						Six Months Ended
	June 30,			July 2,			June 30,			July 2,
	2024			2023			2024			2023
Distributor "A"		11	%		18	%		10	%		17	%
Distributor "C"		16	%		*			*			*
Customer "A"		55	%		47	%		59	%		51	%
Customer "B"		*			12	%		*			10	%
Customer "C"		*			11	%		*			*

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

	June 30,			December 31,
	2024			2023
Customer "A"		70	%		86	%