QuickLogic Corporation — financial distress indicators
Financial-health summary
QuickLogic Corporation's reported numbers place it in the 'Watch' financial-health band (distress score 35/100). The main indicators are losses in each of the last 3 years, ohlson o-score signals likely failure and steep revenue decline. Independently, the Ohlson accounting model puts its 1-year failure probability at 75% and the market-implied (Merton) default probability is 0.0%. In its favour: cash on hand covers all debt (net-cash balance sheet).
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Net income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
O-score 1.12 → model probability 75%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Revenue changed -30% year over year.
Falling sales reduce cash available for debt service.
Operating margin fell from 0% to -84% in two years.
Sharp margin compression signals loss of pricing power or cost control.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Cash on hand covers all debt (net-cash balance sheet).
- Strong current ratio (1.68).
📰 Recent news scan
- Half of the CEO’s 45,763-unit QuickLogic (QUIK) stock grant vests after one year if he remains employed. - Stock TitanGoogle News · 2026-10-07
- A 51,502-unit stock grant for QuickLogic (QUIK) CFO vests over three years, subject to employment. - Stock TitanGoogle News · 2026-10-07
- QuickLogic (QUIK) Stock Slides as Market Rises: Facts to Know Before You Trade - Yahoo Finance UKGoogle News · 2026-10-05
- QuickLogic (QUIK) Stock Moves 2.23%: What You Should Know - Yahoo FinanceGoogle News · 2026-09-22
- QuickLogic (NasdaqCM:QUIK) Stock Forecast & Analyst Predictions - Simply Wall StreetGoogle News · 2026-09-21
- $QUIK stock is down 11% today. Here's what we see in our data. - Quiver QuantitativeGoogle News · 2026-08-12
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do QuickLogic Corporation's financial-health indicators show?
As of 2026-10-08, QuickLogic Corporation's public financial data places it in the 'Watch' band with a distress score of 35/100, driven by losses in each of the last 3 years, ohlson o-score signals likely failure and steep revenue decline. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is QuickLogic Corporation's financial distress score?
35/100 ('Watch'). Ohlson O-score 1.12 (model 1-year failure probability 75%). Merton distance-to-default 5.88 σ (model default probability 0.0%).
What works in QuickLogic Corporation's favour?
Cash on hand covers all debt (net-cash balance sheet). Strong current ratio (1.68).
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Semiconductor companies with distress indicators
- GCT Semiconductor Holding, Inc. (GCTS)Very weak 72/100
- Wolfspeed, Inc. (WOLF)Very weak 70/100
- Fabric.AI, Inc. (FABC)Weak 65/100
- SmartKem, Inc. (SMTK)Weak 65/100
- Peraso Inc. (PRSO)Weak 63/100
- POET Technologies Inc. (POET)Weak 50/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.