Netlist Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 28, 2024. The company experienced a substantial increase in net sales, with figures reaching $40.2 million for the third quarter of 2024, compared to $16.7 million in the same period of 2023, marking a 140% increase. For the nine months ended September 28, 2024, net sales totaled $112.8 million, a 215% increase from $35.8 million in the prior year. This growth was primarily driven by a $23.9 million increase in sales of registered DIMM (RDIMM) and discrete memory component products.

Despite the rise in sales, Netlist reported a net loss of $9.4 million for the third quarter of 2024, an improvement from a net loss of $17.3 million in the same quarter of 2023. For the nine-month period, the net loss was $41.2 million, down from $47.2 million in the previous year. The operating loss also decreased, with a loss of $9.7 million for the third quarter of 2024 compared to $17.9 million in the same quarter of 2023.

Total operating expenses for the third quarter decreased to $10.8 million from $18.3 million year-over-year, reflecting a reduction in costs associated with research and development and intellectual property legal fees. Research and development expenses slightly decreased in Q3 2024, while selling, general, and administrative expenses saw a slight increase due to higher audit and public company-related fees.

As of September 28, 2024, Netlist's cash and cash equivalents stood at $17.2 million, a decline from $40.4 million at the end of December 2023. Total current assets also decreased significantly to $36.0 million from $69.9 million. The company reported a total stockholders' equity deficit of $8.4 million, down from a positive equity of $23.8 million at the end of the previous fiscal year.

In terms of financing, Netlist entered into a loan and security agreement with Silicon Valley Bank in November 2023, providing a revolving line of credit of up to $10 million. As of September 28, 2024, outstanding borrowings under this agreement were $1.6 million. The company also completed a securities purchase agreement in October 2024, which is expected to generate approximately $14.2 million in net proceeds.

Overall, Netlist's strategic focus on increasing sales of memory products has yielded significant revenue growth, while the company continues to manage its operating expenses and financing activities to improve its financial position.