0001104659-25-028496 8-K 16 20250327 2.02 9.01 20250327 20250327 NETLIST INC 0001282631 3674 04 Manufacturing 954812784 DE 1228 8-K 34 001-33170 25775305 111 ACADEMY, SUITE 100 IRVINE CA 92617 949-435-0025 111 ACADEMY, SUITE 100 IRVINE CA 92617 8-K 1 tm259220d1_8k.htm FORM 8-K
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): March 27, 2025

 

 

 

 

 

NETLIST, INC.

(Exact name of registrant as specified in its charter)

 

Delaware   001-33170   95-4812784
(State or other jurisdiction of   (Commission   (IRS Employer
incorporation)   File Number)   Identification Number)

 

111 Academy, Suite 100

Irvine, California 92617

(Address of principal executive offices)

 

(949) 435-0025

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading
Symbol(s)
  Name of each exchange on which registered
Common stock, par value $0.001 per share   NLST   None

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

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. ¨

 

 

 

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On March 27, 2025, Netlist, Inc. issued a press release announcing its financial results for the full year and fourth quarter ended December 28, 2024. A copy of the press release is furnished as Exhibit 99.1 to this report.

 

The information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(d)       Exhibits.

 

Exhibit    
Number   Description
99.1   Press Release of Netlist, Inc., dated March 27, 2025.
104   Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

2 

 

 

SIGNATURE

 

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 hereunto duly authorized.

 

  NETLIST, INC.
   
Date: March 27, 2025 By: /s/ Gail M. Sasaki
    Gail M. Sasaki
    Executive Vice President and Chief Financial Officer

 

3 

 

EX-99.1 2 tm259220d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

 

Netlist Reports Full Year and Fourth Quarter 2024 Results

 

IRVINE, CALIFORNIA, March 27, 2025 - Netlist, Inc. (OTCQB: NLST) today reported financial results for the full year and fourth quarter ended December 28, 2024.

 

Recent Highlights:

 

·Net sales for the full year of 2024 increased by 113% to $147.1 million compared to $69.2 million from the same period one year ago.

 

·Gross profit for the full year of 2024 increased by 21% to $2.9 million compared to $2.4 million from the same period one year ago.

 

“In 2024, Netlist delivered strong revenue growth and made significant progress in intellectual property enforcement. During the year Netlist won patent infringement jury trials against Micron and Samsung, bringing total damages awarded for the willful infringement of its patents to $866 million. As the market for advanced memory continues to expand, Netlist remains well-positioned for growth,” said Chief Executive Officer, C.K. Hong.

 

Net sales for the fourth quarter ended December 28, 2024 were $34.3 million, compared to net sales of $33.4 million for the fourth quarter ended December 30, 2023. Gross profit for the fourth quarter ended December 28, 2024 was $0.3 million, compared to a gross profit of $1.2 million for the fourth quarter ended December 30, 2023.

 

Net sales for the full year ended December 28, 2024 were $147.1 million, compared to net sales of $69.2 million for the full year ended December 30, 2023. Gross profit for the full year ended December 28, 2024 was $2.9 million, compared to a gross profit of $2.4 million for the full year ended December 30, 2023.

 

Net loss for the fourth quarter ended December 28, 2024 was ($12.7) million, or ($0.05) per share, compared to a net loss of ($13.2) million in the same period of prior year, or ($0.05) per share. These results include stock-based compensation expense of $0.8 million and $0.9 million for the quarters ended December 28, 2024 and December 30, 2023, respectively.

 

Net loss for the full year ended December 28, 2024 was ($53.8) million, or ($0.21) per share, compared to a net loss in the prior year period of ($60.4) million, or ($0.25) per share. These results include stock-based compensation expense of $4.4 million and $4.3 million for the full year ended December 28, 2024 and December 30, 2023, respectively.

 

As of December 28, 2024, cash, cash equivalents and restricted cash were $34.6 million, total assets were $41.8 million, working capital deficit was ($7.3) million, and stockholders’ deficit was ($6.0) million.

 

Conference Call Information

 

C.K. Hong, Chief Executive Officer, and Gail Sasaki, Chief Financial Officer, will host an investor conference call today, March 27, 2025 at 12:00 p.m. Eastern Time to review Netlist’s results for the full year and fourth quarter ended December 28, 2024. The live webcast and archived replay of the call can be accessed for 90 days in the Investors section of Netlist’s website at www.netlist.com.

 

About Netlist

 

Netlist is a leading innovator in advanced memory and storage solutions. With a rich portfolio of patented technologies, Netlist’s inventions are foundational to the advancement of AI which is revolutionizing computing. To learn more about Netlist, please visit www.netlist.com.

 

 

 

 

Safe Harbor Statement

 

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this news release include, without limitation, statements about Netlist's ability to execute on its strategic initiatives, the results of pending litigation, including the second patent infringement jury trial against Samsung, and Netlist’s ability to successfully defend its intellectual property. Forward-looking statements are statements other than historical facts and often address future events or Netlist's future performance and reflect management's present expectations 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, among others: risks that Samsung will appeal the final order by the trial court for the first Samsung litigation, that the second patent infringement litigation with Samsung may not result in a favorable result for the company, risks that Micron will appeal the final judgment by the trial court (appeals in general could cause a lengthy delay in Netlist's ability to collect damage awards, could overturn the verdicts or reduce the damages awards); risks that Netlist will suffer adverse outcomes in its litigation with Samsung, Micron or Google or in its various other active proceedings to defend the validity of its patents; risks related to Netlist's plans for its intellectual property, including its strategies for monetizing, licensing, expanding, and defending its patent portfolio; risks associated with patent infringement litigation initiated by Netlist, or by others against Netlist, as well as the costs and unpredictability of any such litigation; risks associated with Netlist's product sales, including the market and demand for products sold by Netlist and its ability to successfully develop and launch new products that are attractive to the market; the success of product, joint development and licensing partnerships; the competitive landscape of Netlist's industry; and general economic, political and market conditions, including the ongoing conflicts between Russia and Ukraine and Israel and Palestine, factory slowdowns and/or shutdowns. 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 and other risks and uncertainties are described in Netlist's Quarterly Report on Form 10-Q for the quarter ended September 28, 2024 filed with the SEC on November 7, 2024, and the other filings it makes with the U.S. Securities and Exchange Commission from time to time, including any subsequently filed quarterly and current reports. In particular, you are encouraged to review the Company’s Annual Report on Form 10-K for the year ended December 28, 2024 that will be filed with the SEC for any revisions or updates to the information in this release. In light of these risks, uncertainties and other factors, these forward-looking statements should not be relied on as predictions of future events. These forward-looking statements represent Netlist's assumptions, expectations and beliefs only as of the date they are made, and except as required by law, Netlist undertakes no obligation to revise or update any forward-looking statements for any reason.

 

Investor Relations Contacts:  
Mike Smargiassi  
The Plunkett Group  
NLST@theplunkettgroup.com  
(212) 739-6729  
   
Gail M. Sasaki  
Netlist, Inc., Chief Financial Officer  
gsasaki@netlist.com  
(949) 435-0025  

 

 

 

 

NETLIST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands) (Unaudited)

 

   December 28,   December 30, 
   2024   2023 
ASSETS
Current assets:          
Cash and cash equivalents  $22,507   $40,445 
Restricted cash   12,100    12,400 
Accounts receivable, net   1,671    4,562 
Inventories   2,744    12,031 
Prepaid expenses and other current assets   733    441 
Total current assets   39,755    69,879 
Property and equipment, net   517    770 
Operating lease right-of-use assets   1,101    1,590 
Other assets   466    560 
Total assets  $41,839   $72,799 
 
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:          
Accounts payable  $42,307   $39,831 
Revolving line of credit   1,230    3,844 
Accrued payroll and related liabilities   808    1,346 
Deferred revenue   40     
Other current liabilities   2,675    2,569 
Total current liabilities   47,060    47,590 
Operating lease liabilities   641    1,213 
Other liabilities   186    237 
Total liabilities   47,887    49,040 
           
Commitments and contingencies          
           
Stockholders' equity (deficit):          
Preferred stock        
Common stock   273    254 
Additional paid-in capital   331,367    307,328 
Accumulated deficit   (337,688)   (283,823)
Total stockholders' equity (deficit)   (6,048)   23,759 
Total liabilities and stockholders' equity (deficit)  $41,839   $72,799 

 

 

 

 

NETLIST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts) (Unaudited)

 

   Three Months Ended   Year Ended 
   December 28,   December 30,   December 28,   December 30, 
   2024   2023   2024   2023 
Net sales  $34,275   $33,433   $147,103   $69,205 
Cost of sales(1)   34,021    32,279    144,219    66,812 
Gross profit   254    1,154    2,884    2,393 
Operating expenses:                    
Research and development(1)   1,077    2,340    8,064    9,164 
Intellectual property legal fees   9,555    9,664    37,958    42,572 
Selling, general and administrative(1)   2,737    2,899    12,090    12,414 
Total operating expenses   13,369    14,903    58,112    64,150 
Operating loss   (13,115)   (13,749)   (55,228)   (61,757)
Other income, net:                    
Interest income, net   252    460    1,048    1,300 
Other income, net   149    46    316    60 
Total other income, net   401    506    1,364    1,360 
Loss before provision for income taxes   (12,714)   (13,243)   (53,864)   (60,397)
Provision for income taxes           1    1 
Net loss  $(12,714)  $(13,243)  $(53,865)  $(60,398)
                     
Loss per common share:                    
Basic and diluted  $(0.05)  $(0.05)  $(0.21)  $(0.25)
Weighted-average common shares outstanding:                    
Basic and diluted   270,089    253,547    259,904    244,118 
                     
                     
(1) Amounts include stock-based compensation expense as follows:                    
                     
Cost of sales  $17   $20   $99   $110 
Research and development   110    184    908    875 
Selling, general and administrative   677    715    3,429    3,352 
Total stock-based compensation  $804   $919   $4,436   $4,337 

 

 

 

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Cover
Mar. 27, 2025
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Mar. 27, 2025
Entity File Number 001-33170
Entity Registrant Name NETLIST INC
Entity Central Index Key 0001282631
Entity Tax Identification Number 95-4812784
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One 111 Academy
Entity Address, Address Line Two Suite 100
Entity Address, City or Town Irvine
Entity Address, State or Province CA
Entity Address, Postal Zip Code 92617
City Area Code 949
Local Phone Number 435-0025
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock, par value $0.001 per share
Trading Symbol NLST
Entity Emerging Growth Company false
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