Netlist Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Netlist Inc. has submitted its 2023 10-K filing, detailing financial performance and operational data for the fiscal year ending December 30, 2023.</b>

AI Summary

NETLIST INC (NLST) filed a Annual Report (10-K) with the SEC on February 23, 2024. Netlist Inc. filed its annual report for the fiscal year ending December 30, 2023. The filing covers the period from January 1, 2023, to December 30, 2023. The company is incorporated in Delaware and operates in the Semiconductors & Related Devices industry. Key financial data points such as common stock, retained earnings, and additional paid-in capital are detailed for the fiscal year. The report includes information on product sales across various regions, including the US, China, and other countries.

Why It Matters

For investors and stakeholders tracking NETLIST INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Netlist Inc.'s financial health, operational segments, and strategic positioning for the fiscal year 2023, crucial for investors and stakeholders to assess performance and future outlook. The detailed breakdown of product sales by region and segment offers insights into market penetration and revenue drivers, which are key indicators for the company's growth trajectory in the competitive semiconductor market.

Risk Assessment

Risk Level: medium — NETLIST INC shows moderate risk based on this filing. The filing is a standard 10-K, which typically contains a broad range of financial and operational information. Specific risks and their severity are not detailed in the provided header information, necessitating a review of the full document for a precise risk assessment.

Analyst Insight

Review the full 10-K filing to identify specific risk factors, management's discussion and analysis, and detailed financial statements to form an investment thesis.

Revenue Breakdown

Key Numbers

• 2023-12-30 — Fiscal Year End Date (2023-01-01 2023-12-30)
• 2022-12-31 — Prior Fiscal Year End Date (2022-01-02 2022-12-31)
• 2021-01-02 — Prior Prior Fiscal Year End Date (2021-01-03 2022-01-01)
• 253593000 — Total Assets (approx) (P3Y)
• 232557000 — Total Assets (approx) (P4Y)

Key Players & Entities

• NETLIST INC (company) — FILER
• 0001282631 (company) — CENTRAL INDEX KEY
• DE (company) — STATE OF INCORPORATION
• 3674 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• IRVINE (company) — BUSINESS ADDRESS CITY
• 949-435-0025 (company) — BUSINESS PHONE
• 20231230 (date) — FISCAL YEAR END
• 20240223 (date) — FILED AS OF DATE

FAQ

Key Financial Figures

• $0.001 — g) of the Act: Common Stock, par value $0.001 per share (Title of class) Indicate

Filing Documents

• nlst-20231230x10k.htm (10-K) — 2556KB
• nlst-20231230xex23.htm (EX-23) — 6KB
• nlst-20231230xex31d1.htm (EX-31.1) — 15KB
• nlst-20231230xex31d2.htm (EX-31.2) — 15KB
• nlst-20231230xex32.htm (EX-32) — 10KB
• nlst-20231230x10k001.jpg (GRAPHIC) — 3KB
• nlst-20231230x10k002.jpg (GRAPHIC) — 48KB
• 0001558370-24-001626.txt (&nbsp;) — 9813KB
• nlst-20231230.xsd (EX-101.SCH) — 57KB
• nlst-20231230_cal.xml (EX-101.CAL) — 69KB
• nlst-20231230_def.xml (EX-101.DEF) — 221KB
• nlst-20231230_lab.xml (EX-101.LAB) — 487KB
• nlst-20231230_pre.xml (EX-101.PRE) — 416KB
• nlst-20231230x10k_htm.xml (XML) — 1735KB

Business

Business 3 Item 1A

Risk Factors

Risk Factors 9 Item 1B Unresolved Staff Comments 36 Item 1C Cybersecurity 36 Item 2

Properties

Properties 38 Item 3

Legal Proceedings

Legal Proceedings 38 Item 4 Mine Safety Disclosures 38 PART II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 39 Item 6 [Reserved] 40 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 41 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 48 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 49 Item 9 Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 85 Item 9A

Controls and Procedures

Controls and Procedures 85 Item 9B Other Information 86 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 86 PART III Item 10 Directors, Executive Officers and Corporate Governance 87 Item 11

Executive Compensation

Executive Compensation 88 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 95 Item 13 Certain Relationships and Related Transactions, and Director Independence 96 Item 14 Principal Accountant Fees and Services 96 PART IV Item 15 Exhibits, Financial Statement Schedules 98 Item 16 Form 10-K Summary 102

Signatures

Signatures 103 Table of Contents CAUTIONARY Note ABOUT Forward-Looking Statements This report includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical facts and often address future events or our future performance. Words such as "anticipate," "estimate," "expect," "project," "intend," "may," "will," "might," "plan," "predict," "believe," "should," "could" and similar words or expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

Forward-looking statements contained in this report include statements about, among other things

Forward-looking statements contained in this report include statements about, among other things: our beliefs regarding the market and demand for our products or the component products we resell; our ability to collect any damages awarded to us under Final Judgment against Samsung Electronics Co., Ltd., Samsung Semiconductor Inc., and Samsung Electronics America Inc. (collectively, "Samsung"); our ability to develop and launch new products that are attractive to the market and stimulate customer demand for these products; our plans relating to our intellectual property, including our goals of monetizing, licensing, expanding and defending our patent portfolio; our expectations and strategies regarding outstanding legal proceedings and patent reexaminations relating to our intellectual property portfolio; our expectations with respect to any strategic partnerships or other similar relationships we may pursue; the competitive landscape of our industry; general market, economic and political conditions; our business strategies and objectives; our expectations regarding our future operations and financial position, including revenues, costs and prospects, and our liquidity and capital resources, including cash flows, sufficiency of cash resources, efforts to reduce expenses and the potential for future financings; our ability to remediate any material weakness, maintain effective internal control over financial reporting; and the impact of the above factors and other future events on the market price and trading volume of our common stock. All forward-looking statements reflect management's present assumptions, expectations and beliefs regarding future events and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by any forward-looking statements. These risks, uncertainties and other factors include those described in Item 1A. Risk Factors of this

Business

Business Overview Netlist provides high-performance memory solutions to enterprise customers in diverse industries. Our products, in various capacities and form factors, including our line of custom and specialty memory products, bring leading performance to customers in a variety of industries globally. Netlist also licenses its intellectual property. Our Industry The global high-performance memory market is driven by increasing demand from data center and enterprise storage applications for improved input/output performance, lower latency, and increased redundant persistent data storage capacities. The proliferation of mobile devices, social media platforms, cognitive/artificial intelligence systems and cloud-based software applications has resulted in the accelerating creation and transmission of data. To manage and analyze this data, we believe new memory and storage technologies need to be developed and implemented to satisfy the needs in the industry. Technical challenges arising from the production of volatile dynamic random-access memory ("DRAM") is limiting its long-term viability as the high-speed memory of choice in demanding computing environments. Conversely, nonvolatile memory like NAND flash ("NAND flash"), while characterized by lower access speeds, is scaling down in cost and scaling up in density at a significantly better rate than DRAM. This has led the industry to explore alternative computer architectures and new memory materials capable of bridging the superior access speed of volatile memory with nonvolatile memory's lower cost and higher densities. We expect memory subsystems relying on on-device intelligent controller technology to leverage the advantages of volatile and nonvolatile memory will most effectively address the industry's growing need for high-speed data management and analytics. Further, other volatile memory solutions are being developed to accommodate the industry's increasing need for bandwidth, such as the developm

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View this 10-K filing on SEC EDGAR