Note 2—Supplemental Financial Information

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Inventories

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Inventories consisted of the following (in thousands):

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Cash Flow Information

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The following table shows supplemental disclosures of cash flow information and non-cash financing activities (in thousands):

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Earnings (Loss) Per Share

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The following table shows the computation of basic and diluted earnings (loss) per share of common stock (in thousands, except per share data):

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The table below shows potentially dilutive weighted average common share equivalents, consisting of shares issuable upon the exercise of outstanding stock options and warrants using the treasury stock method and the shares issuable upon vesting of the restricted stock units (“RSUs”). These potential weighted average common share equivalents have been included in the three and nine months ended September 26, 2026 in the diluted net earnings per share calculations above as their effect would be dilutive and excluded in the three and nine months ended September 27, 2025 from the diluted net loss per share calculations above as their effect would be anti-dilutive (in thousands):

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For the nine months ended September 26, 2026, 1,069,597 weighted-average common share equivalents were excluded from the computation of diluted net earnings per share because their inclusion would have been anti-dilutive.

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For the three and nine months ended September 26, 2026, 29,600,000 potential common shares associated with outstanding performance stock units (“PSUs”) were excluded from the computation of diluted net earnings per share because the applicable performance and market conditions had not been met as of September 26, 2026.

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Disaggregation of Net Sales

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The following table shows disaggregated net sales by major source (in thousands):

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Beginning in the third quarter of 2026, we disaggregate net sales into net product sales and license fee revenue. License fee revenue, which arises under the Samsung License Agreement, beginning in the third quarter of 2026 is recognized over the license term or in the period to which the related quarterly license fee relates, as described in Note 1, and its amount and timing are determined by the terms of the agreement. Net product sales, which consist of resales of third-party memory products and sales of our modular memory subsystems, are recognized at a point in time upon transfer of control to the customer and are similarly affected by memory supply, demand and pricing conditions. Accordingly, we no longer present resales of third-party products and sales of our modular memory subsystems as separate categories. Prior-period amounts have been reclassified to conform to the current-period presentation. These reclassifications had no effect on previously reported net sales, net income (loss) or stockholders' equity (deficit).

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Net sales by country presented below are based on the billing location of the customer (in thousands):

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The United States, PRC, Malaysia, and Republic of Korea accounted for more than 10% of our net sales for each of the three and nine months ended September 26, 2026. The PRC accounted for more than 10% of our net sales for each of the three and nine months ended September 27, 2025.

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As of December 27, 2025, we had deferred revenue of $30.6 million. These deferred revenues related to advance payments received during the quarter on product orders shipped subsequent to the end of quarter. These revenues were recognized during the three months ended March 28, 2026 upon shipment of orders.

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As of September 26, 2026, we had deferred revenue of $258.0 million. These deferred revenues included $227.5 million related to the unrecognized upfront license fee, of which $47.9 million is expected to be recognized within the next 12 months and the remainder through July 2031. The remaining $30.5 million related to advance payments received during the quarter on product orders shipped subsequent to the end of quarter, which is expected to be recognized during the three months ending January 2, 2027 upon shipment of orders.

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Major Customers, Suppliers and Products

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Our net product sales have historically been concentrated in a small number of customers. The following table sets forth the percentage of net product sales made to customers that each comprise 10% or more of total product sales:

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As of September 26, 2026, three customers represented approximately 35%, 29%, and 14%, of aggregate gross accounts receivable. As of December 27, 2025, four customers represented approximately 33%, 19%, 14%, and 11% of aggregate gross accounts receivable. The loss of a major customer or a reduction in sales to or difficulties collecting payments from these customers could significantly reduce our net sales and adversely affect our operating results. We mitigate risks associated with foreign and domestic receivables by purchasing comprehensive credit insurance.

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Our purchases are typically concentrated in a small number of suppliers. The following table shows the percentage of purchases made from suppliers that each comprise 10% or more of total purchases:

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While we believe alternative suppliers may be available, our dependence on a small number of suppliers and the lack of any guaranteed sources for the essential components of our products and the components we resell exposes us to several risks, including the inability to obtain an adequate supply of these components, increases in their costs, delivery delays and poor quality. If we cannot obtain these components in the amounts needed on a timely basis and at commercially reasonable prices, we may not be able to develop or introduce new products, we may experience significant increases in our cost of sales if we are forced to procure components from alternative suppliers and are not able to negotiate favorable terms with these suppliers, we may experience interruptions or failures in the delivery of our products, or we may be forced to cease sales of products dependent on the components or resales of the components we resell to customers directly. Any of these events could have a material adverse effect on our business, operating results and financial condition.

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On August 4, 2026, we entered into a five-year Supply Agreement (the “SSI Supply Agreement”) with Samsung Semiconductor, Inc. (“Samsung Semiconductor”), effective as of July 31, 2026 (the “Effective Date”). Pursuant to the SSI Supply Agreement, the Company has the right to purchase from Samsung Semiconductor up to $300 million of DRAM and NAND products each year for an aggregate of up to $1.5 billion during the term of the SSI Supply Agreement on the pricing terms set forth therein. In connection with the agreement, we issued 10.0 million shares of common stock to Samsung Semiconductor for $1.0 million in cash (see Note 7). The shares had a grant-date fair value of $17.0 million, resulting in a $16.0 million prepaid supply asset and a corresponding increase in additional paid-in capital. The asset is recognized in cost of sales on a straight-line basis over the five-year agreement term.

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As of September 26, 2026, the prepaid supply asset was $15.5 million, of which $3.2 million was classified in prepaid expenses and other current assets and $12.3 million in other assets. During the three and nine months ended September 26, 2026, we recognized $0.5 million of amortization of the prepaid supply asset in cost of sales. We expect to recognize amortization of the prepaid supply asset of approximately $0.9 million for the remainder of 2026, $3.2 million in each of 2027 through 2030, and $1.9 million in 2031.