Derived from the December 31, 2017 audited balance sheet included in the 2017 Annual Report on Form 10-K of QuickLogic Corporation.

QUICKLOGIC CORPORATION

SUPPLEMENTAL RECONCILIATIONS OF US GAAP AND NON-GAAP FINANCIAL MEASURES

(in thousands, except per share amounts and percentages)

(Unaudited)

Three Months Ended

Six Months Ended

July 1, 2018

July 2, 2017

April 1, 2018

July 1, 2018

July 2, 2017

US GAAP loss from operations

$

(3,446)

$

(3,553)

$

(3,871)

$

(7,317)

$

(7,021)

Adjustment for stock-based compensation within:

Cost of revenue

35

20

34

69

53

Research and development

207

134

183

390

273

Selling, general and administrative

237

193

215

452

339

Adjustment for the write-off of equipment within:

Selling, general and administrative

—

—

5

5

—

Non-GAAP loss from operations

$

(2,967)

$

(3,206)

$

(3,434)

$

(6,401)

$

(6,356)

US GAAP net loss

$

(3,484)

$

(3,607)

$

(3,970)

$

(7,454)

$

(7,172)

Adjustment for stock-based compensation within:

Cost of revenue

35

20

34

69

53

Research and development

207

134

183

390

273

Selling, general and administrative

237

193

215

452

339

Adjustment for the write-off of equipment within:

Selling, general and administrative

—

—

5

5

—

Non-GAAP net loss

$

(3,005)

$

(3,260)

$

(3,533)

$

(6,538)

$

(6,507)

US GAAP net loss per share

$

(0.04)

$

(0.05)

$

(0.05)

$

(0.09)

$

(0.10)

Adjustment for stock-based compensation

*

0.01

0.01

0.01

0.01

Non-GAAP net loss per share

$

$

(0.04)

$

(0.04)

$

(0.08)

$

(0.09)

US GAAP gross margin percentage

49.0

%

45.6

%

50.3

%

49.6

%

44.4

%

Adjustment for stock-based compensation

1.1

%

0.7

%

1.2

%

1.2

%

0.9

%

Adjustment for the write-off of equipment

—

—

*

*

—

Non-GAAP gross margin percentage

50.1

%

46.3

%

51.5

%

50.8

%

45.3

%

* Figures were not considered for reconciliation due to the insignificant amount.