0001282631
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NETLIST INC
0001282631
2022-03-01
2022-03-01
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
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
March 1, 2022
Date of Report (Date of earliest event
reported):
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 1, 2022, Netlist, Inc. (the
“Company”) issued a press release announcing the Company’s financial results for the fourth quarter ended January 1,
2022. A copy of the press release is attached hereto as Exhibit 99.1.
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.
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 1, 2022 |
By: |
/s/ Gail M. Sasaki |
| |
|
Gail M. Sasaki |
| |
|
Executive Vice President and Chief Financial Officer |
Exhibit 99.1
Netlist Reports Full Year and Fourth Quarter
2021 Results
IRVINE,
CALIFORNIA, March 1, 2022 - Netlist, Inc. (OTCQB: NLST) today reported financial results for the full year and the
fourth quarter ended January 1, 2022.
2021 Highlights:
| · | Revenue increased 201% to $142.4 million compared to $47.2 million last year |
| · | Gross profit increased 626% to $48.9 million compared to $6.7 million last year |
| · | Net income reached $4.8 million or $0.02 per diluted share compared to ($0.04) last year |
| · | Current ratio increased by 159% as working capital improved by $55 million |
“Netlist delivered strong financial results on the back of significant
increases in revenue and gross profit in 2021,” said Netlist’s Chief Executive Officer, C.K. Hong. “During the year
we more than doubled product sales, entered into a strategic relationship with the world's second-largest maker of memory chips, and made
substantial progress in intellectual property initiatives. These accomplishments validate the strategies we have in place for both product
sales and licensing, and position us for continued growth in 2022.”
Net sales for the full year ended January 1, 2022 were $142.4
million with $40 million in licensing fees and $102.4 million in product revenue, compared to net sales of $47.2 million for the full
year ended January 2, 2021. Gross profit for the full year ended January 1, 2022 was $48.9 million, or 34.3% of net sales, compared
to a gross profit of $6.7 million, or 14.3% of net sales, for the full year ended January 2, 2021.
Net income for the full year ended January 1, 2022 was $4.8 million,
or $0.02 per share, compared to a net loss in the prior year period of ($7.3) million, or a loss per share of ($0.04). These results include
stock-based compensation expense of $1.6 million and $0.8 million for the years ended January 1, 2022 and January 2, 2021, respectively.
Net sales for the fourth quarter ended January 1, 2022 were $36.3
million, compared to net sales of $11.5 million for the quarter ended January 2, 2021. Gross profit for the quarter ended January 1,
2022 was $2.0 million, or 5.6% of net sales, compared to a gross profit of $1.5 million, or 12.7% of net sales, for the quarter ended
January 2, 2021.
Net loss for the fourth quarter ended January 1, 2022 was ($8.2)
million, or a loss per share of ($0.04), compared to a net loss in the prior year period of ($1.8) million, or a loss per share of ($0.01).
These results include stock-based compensation expense of $0.4 million and $0.2 million for the quarters ended January 1, 2022 and
January 2, 2021, respectively.
As of January 1, 2022, cash, cash equivalents and restricted cash
was $58.5 million, total assets were $91.2 million, working capital was $52.6 million, total debt was $7.6 million, and stockholders’
equity was $54.0 million.
Conference Call Information
C.K. Hong,
Chief Executive Officer, and Gail Sasaki, Chief Financial Officer, will host an investor conference call today, March 1, 2022 at
12:00 p.m. Eastern Time to review Netlist’s results for the fourth quarter ended January 1, 2022. 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 provides
high-performance solid state drives and modular memory solutions to enterprise customers in diverse industries. The Company's NVMe™
SSDs in various capacities and form factors and the line of custom and specialty memory products bring industry-leading performance to
server and storage appliance customers and cloud service providers. Netlist licenses its portfolio of intellectual property including
patents, in server memory, hybrid memory and storage class memory, to companies that implement Netlist's technology. To learn more, 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 are statements other than historical facts and often address future events or Netlist's future performance.
Forward-looking statements contained in this news release include statements about Netlist's ability to execute on its strategic initiatives.
All forward-looking statements 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 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 quarantines,
factory slowdowns or shutdowns, and travel restrictions resulting from the COVID-19 pandemic. 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 annual report on Form 10-K for its most recently completed fiscal year
filed on March 26, 2021, 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 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.
(Tables Follow)
For more information, please contact:
| The Plunkett Group |
Netlist, Inc. |
| Mike Smargiassi |
Gail M. Sasaki |
| NLST@theplunkettgroup.com |
Chief Financial Officer |
| (212) 739-6729 |
(949) 435-0025 |
| Netlist, Inc. and Subsidiaries |
| Condensed Consolidated Balance Sheets |
| (in thousands) |
| | |
(unaudited) | | |
| |
| | |
January 1, | | |
January 2, | |
| | |
2022 | | |
2021 | |
| ASSETS | |
| | | |
| | |
| Current assets: | |
| | | |
| | |
| Cash and cash equivalents | |
$ | 47,679 | | |
$ | 13,326 | |
| Restricted cash | |
| 10,800 | | |
| 3,200 | |
| Accounts receivable, net | |
| 12,727 | | |
| 4,680 | |
| Inventories | |
| 15,670 | | |
| 3,198 | |
| Prepaid expenses and other current assets | |
| 1,126 | | |
| 514 | |
| Total current assets | |
| 88,002 | | |
| 24,918 | |
| | |
| | | |
| | |
| Property and equipment, net | |
| 989 | | |
| 182 | |
| Operating lease right-of-use assets | |
| 1,891 | | |
| 114 | |
| Other assets | |
| 294 | | |
| 58 | |
| Total assets | |
$ | 91,176 | | |
$ | 25,272 | |
| | |
| | | |
| | |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | |
| Accounts payable | |
$ | 25,887 | | |
$ | 5,327 | |
| Revolving line of credit | |
| 7,000 | | |
| 3,678 | |
| Accrued payroll and related liabilities | |
| 1,308 | | |
| 806 | |
| Accrued expenses and other current liabilities | |
| 632 | | |
| 777 | |
| Long-term debt due within one year | |
| 562 | | |
| 17,056 | |
| Total current liabilities | |
| 35,389 | | |
| 27,644 | |
| Long-term debt | |
| — | | |
| 146 | |
| Operating lease liabilities | |
| 1,593 | | |
| — | |
| Other liabilities | |
| 152 | | |
| 102 | |
| Total liabilities | |
| 37,134 | | |
| 27,892 | |
| | |
| | | |
| | |
| Commitments and contingencies | |
| | | |
| | |
| | |
| | | |
| | |
| Stockholders' equity (deficit): | |
| | | |
| | |
| Preferred stock | |
| — | | |
| — | |
| Common stock | |
| 231 | | |
| 195 | |
| Additional paid-in capital | |
| 243,866 | | |
| 192,071 | |
| Accumulated deficit | |
| (190,055 | ) | |
| (194,886 | ) |
| Total stockholders' equity (deficit) | |
| 54,042 | | |
| (2,620 | ) |
| Total liabilities and stockholders' equity (deficit) | |
$ | 91,176 | | |
$ | 25,272 | |
| Netlist, Inc. and Subsidiaries |
| Condensed Consolidated Statements of Operations (Unaudited) |
| (in thousands, except per share amounts) |
| | |
Three Months Ended | | |
Year Ended | |
| | |
January 1, | | |
January 2, | | |
January 1, | | |
January 2, | |
| | |
2022 | | |
2021 | | |
2022 | | |
2021 | |
| Net product sales | |
$ | 36,346 | | |
$ | 11,485 | | |
$ | 102,355 | | |
$ | 47,234 | |
| License fee | |
| — | | |
| — | | |
| 40,000 | | |
| — | |
| Net sales | |
| 36,346 | | |
| 11,485 | | |
| 142,355 | | |
| 47,234 | |
| Cost of sales(1) | |
| 34,323 | | |
| 10,026 | | |
| 93,458 | | |
| 40,503 | |
| Gross profit | |
| 2,023 | | |
| 1,459 | | |
| 48,897 | | |
| 6,731 | |
| Operating expenses: | |
| | | |
| | | |
| | | |
| | |
| Research and development(1) | |
| 2,019 | | |
| 870 | | |
| 7,241 | | |
| 2,953 | |
| Intellectual property legal fees | |
| 4,909 | | |
| 111 | | |
| 19,494 | | |
| 2,368 | |
| Selling, general and administrative(1) | |
| 3,140 | | |
| 2,253 | | |
| 10,779 | | |
| 8,247 | |
| Total operating expenses | |
| 10,068 | | |
| 3,234 | | |
| 37,514 | | |
| 13,568 | |
| Operating (loss) income | |
| (8,045 | ) | |
| (1,775 | ) | |
| 11,383 | | |
| (6,837 | ) |
| Other (expense) income, net: | |
| | | |
| | | |
| | | |
| | |
| Interest expense, net | |
| (151 | ) | |
| (94 | ) | |
| (568 | ) | |
| (531 | ) |
| Other income, net | |
| 2 | | |
| 103 | | |
| 643 | | |
| 101 | |
| Total other (expense) income, net | |
| (149 | ) | |
| 9 | | |
| 75 | | |
| (430 | ) |
| (Loss) income before provision for income taxes | |
| (8,194 | ) | |
| (1,766 | ) | |
| 11,458 | | |
| (7,267 | ) |
| Provision for income taxes | |
| 26 | | |
| — | | |
| 6,627 | | |
| 1 | |
| Net (loss) income | |
$ | (8,220 | ) | |
$ | (1,766 | ) | |
$ | 4,831 | | |
$ | (7,268 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| (Loss) earnings per share: | |
| | | |
| | | |
| | | |
| | |
| Basic | |
$ | (0.04 | ) | |
$ | (0.01 | ) | |
$ | 0.02 | | |
$ | (0.04 | ) |
| Diluted | |
$ | (0.04 | ) | |
$ | (0.01 | ) | |
$ | 0.02 | | |
$ | (0.04 | ) |
| Weighted-average common shares outstanding: | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 227,277 | | |
| 195,964 | | |
| 218,171 | | |
| 183,594 | |
| Diluted | |
| 233,943 | | |
| 195,964 | | |
| 225,589 | | |
| 183,594 | |
| | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | |
| (1) Amounts include stock-based compensation expense as follows: | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | |
| Cost of sales | |
$ | 3 | | |
$ | 2 | | |
$ | 12 | | |
$ | 10 | |
| Research and development | |
| 132 | | |
| 42 | | |
| 570 | | |
| 196 | |
| Selling, general and administrative | |
| 283 | | |
| 137 | | |
| 998 | | |
| 557 | |
| Total stock-based compensation | |
$ | 418 | | |
$ | 181 | | |
$ | 1,580 | | |
$ | 763 | |