Financial Performance - The company reported a net loss of $4.7 million, or $0.16 per share, in Q4 2024, compared to a net loss of $4.6 million, or $0.17 per share, in Q3 2024[4]. - For fiscal year 2024, revenue was $135,000, a significant decrease from $550,000 in fiscal 2023, while the net loss was $18.4 million, or $0.68 per share, compared to a net loss of $19.8 million, or $0.80 per share, in fiscal 2023[5]. - Adjusted EBITDA for Q4 2024 was a loss of $3.9 million, consistent with the loss in Q3 2024, and compared to a loss of $3.7 million in Q4 2023[4]. - The company reported total operating expenses of $19.3 million for fiscal 2024, down from $21.2 million in fiscal 2023[15]. - The accumulated deficit increased to $221.5 million as of December 31, 2024, from $203.1 million in the previous year[14]. Cash and Investments - The company had $26.8 million in cash, cash equivalents, and short-term investments as of December 31, 2024, an increase from $19.5 million as of December 31, 2023[6]. - The total number of shares outstanding was 30.1 million as of December 31, 2024[7]. Business Development - The company is making progress toward commercialization at ST Microelectronics and has expanded offerings for gate-all-around products, which are crucial for advanced AI devices[8]. - Development efforts have been initiated with two large customers, indicating potential future revenue growth[8]. - The semiconductor industry is viewed as being in an ideal state for adopting new technologies, which may benefit the company's MST technology[3].

Company Overview - Atomera is focused on transistor enhancement technology for the $600 billion semiconductor market[5] - The company utilizes a high leverage IP licensing business model[5] - Atomera is working with 50% of the world's top semiconductor makers[7] Technology and Validation - MST technology focus areas include Power, RF-SOI, Advanced Nodes, and DRAM[5] - X-ray confirms crystal quality improvement with MST, showing a 14% reduction in AlN (002) and a 13% reduction in GaN (002)[6] - Collaboration with Sandia's CINT validates MST benefits[6] Financial Performance (Q3 2024) - Net loss for the quarter was $4595 thousand, or $0.17 per share[8] - Adjusted EBITDA for the quarter was $(3881) thousand, or $(0.14) per share[8] - Cash, equivalents, and short-term investments totaled $17342 thousand[8]

Financial Data and Key Metrics Changes - The GAAP net loss for Q3 2024 was $4.6 million, or $0.17 per share, compared to a net loss of $5 million, or $0.20 per share, in Q3 2023 [29] - Revenues were $22,000 in Q3 2024, down from $72,000 in Q2 2024, and up from $0 in Q3 2023 [30] - GAAP operating expenses were $4.8 million in Q3 2024, a decrease of approximately $534,000 from $5.4 million in Q3 2023 [30] Business Line Data and Key Metrics Changes - The company is engaged in multiple technology segments, including MST for power chips, advanced node work for gate-all-around transistors, memory segment, and RF-SOI [7][13][16][19] - The power semiconductor market is expected to exceed $52 billion in 2024, with significant opportunities for Atomera's MST technology [7] - The advanced node market is valued at approximately $150 billion in 2023, with a shift towards materials engineering solutions [13] Market Data and Key Metrics Changes - The memory segment is valued at over $110 billion in 2023, focusing on low production costs and smaller node sizes [16] - The RF-SOI segment is also highlighted as having excellent potential for Atomera's technology [19] Company Strategy and Development Direction - Atomera is focusing on expanding its customer base and technology applications, particularly in the power semiconductor and advanced node markets [7][13] - The company is optimistic about converting proposals into JDAs or license agreements in the near future [20] - The strategy includes a land and expand approach with existing customers, particularly with STMicroelectronics [80] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the current momentum and customer engagement, indicating a strong demand for Atomera's technology [24][27] - The company is optimistic about the potential for its technology in the GaN market, which is expected to convert to revenue faster than traditional business [23][28] - Management noted that the rollout of AI infrastructure is a significant driver for the semiconductor industry, aligning with Atomera's technology [28] Other Important Information - The company is in the planning process for 2025, expecting to increase investments in sales and marketing [38] - Atomera is pursuing funding opportunities under the CHIPS Act, with a proposal submitted related to GaN and other compound semiconductors [39][40] Q&A Session Summary Question: Can you provide more detail on the transformative situation mentioned? - Management described it as a large customer with significant revenue potential that could enhance the company's financial position [44] Question: What is the progress with other customers in the funnel? - Management indicated that customers are in various phases, with some in active experiments and others having technology installed in their fabs [48] Question: What is the update on RF-SOI technology? - Management noted progress with thinner wafers and ongoing work with customers, but no announcements yet [54] Question: Is the work in the 7 to 48-volt range specific to data centers? - Management confirmed that the 48-volt work is primarily tied to data centers, with modifications made to SPX technology for this range [71][73] Question: How is the relationship with STMicroelectronics progressing? - Management reported a strong relationship with ST, with ongoing work and potential for expanding business into multiple units [80]

PART I. Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited condensed financial statements for the period ended September 30, 2024, showing a net loss of $13.8 million and decreased total assets, supported by ATM stock offering proceeds [Condensed Financial Statements](index=3&type=section&id=Condensed%20Financial%20Statements) Financial statements show continued net loss of $13.8 million on minimal revenue, with assets declining and financing activities offsetting operational cash use Condensed Balance Sheet (in thousands) | Balance Sheet Items | Sep 30, 2024 (Unaudited) | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $13,757 | $12,591 | | Total current assets | $17,792 | $20,404 | | **Total assets** | **$20,140** | **$24,029** | | Total current liabilities | $3,386 | $3,814 | | **Total liabilities** | **$4,247** | **$5,859** | | **Total stockholders' equity** | **$15,893** | **$18,170** | Condensed Statement of Operations (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $22 | $0 | $112 | $0 | | Total operating expenses | $4,811 | $5,353 | $14,466 | $15,880 | | Loss from operations | ($4,789) | ($5,353) | ($14,464) | ($15,880) | | **Net loss** | **($4,595)** | **($5,039)** | **($13,778)** | **($15,210)** | | Net loss per share, basic & diluted | ($0.18) | ($0.20) | ($0.52) | ($0.62) | Condensed Statement of Cash Flows (in thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($10,208) | ($11,649) | | Net cash provided by/(used in) investing activities | $3,476 | ($7,626) | | Net cash provided by financing activities | $7,898 | $10,733 | | **Net increase/(decrease) in cash** | **$1,166** | **($8,542)** | [Notes to Financial Statements](index=10&type=section&id=Notes%20to%20Financial%20Statements) Notes detail Atomera's early-stage status, ATM reliance for liquidity, $17.3 million cash, $112 thousand revenue, and $7.2 million unrecognized stock compensation - As of September 30, 2024, the company had approximately **$17.3 million** in cash, cash equivalents, and short-term investments and believes it has sufficient capital to fund its plans for at least the next 12 months[17](index=17&type=chunk)[19](index=19&type=chunk) - During the nine months ended September 30, 2024, the company sold approximately **1.9 million shares** through its "at the market" (ATM) offering, raising net proceeds of about **$8.5 million**. As of quarter-end, approximately **$20.9 million** remained available under the ATM program[18](index=18&type=chunk) - Revenue for the nine months ended September 30, 2024, was **$112 thousand**, entirely from North America, with **$62 thousand** recognized over time and **$50 thousand** at a point in time. No revenue was recorded in the same period of 2023[32](index=32&type=chunk) - As of September 30, 2024, there was approximately **$7.2 million** of total unrecognized compensation expense related to unvested share-based arrangements, expected to be recognized over a weighted-average period of **2.8 years**[47](index=47&type=chunk) [Management's Discussion and Analysis (MD&A)](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A focuses on MST technology commercialization via licensing, highlighting the ST Microelectronics agreement, decreased operating expenses, and reliance on ATM for liquidity [Business Overview & Strategy](index=17&type=section&id=Business%20Overview%20%26%20Strategy) Atomera's strategy involves licensing Mears Silicon Technology (MST) for revenue, with a key ST Microelectronics agreement currently in process qualification - The company's commercialization strategy is to generate revenue through licensing arrangements, where customers pay a license fee and a royalty for each silicon wafer or device incorporating MST technology[58](index=58&type=chunk) - The license agreement with ST Microelectronics, signed in April 2023, is the company's first grant of commercial manufacturing and distribution rights. ST is currently performing testing to qualify the MST-enabled process, which, if successful, will lead to additional license fees and royalties[59](index=59&type=chunk) [Results of Operations](index=18&type=section&id=Results%20of%20Operations) Q3 2024 revenue was $22 thousand, with total operating expenses decreasing 17% to $4.8 million, primarily due to reduced R&D and selling/marketing costs Operating Expense Changes (Three Months Ended Sep 30, 2024 vs 2023) | Expense Category | Q3 2024 (approx. $M) | Q3 2023 (approx. $M) | Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Research & Development | $2.8 | $3.3 | ▼ 17% | Decrease in outsourced R&D as foundry partner ceased services | | General & Administrative | $1.8 | $1.7 | ▲ 8% | Increased employee and patent legal costs | | Selling & Marketing | $0.25 | $0.37 | ▼ 32% | Reduction in headcount | - Revenue for Q3 2024 was approximately **$22 thousand**, derived from MSTcad licensing and related services. No revenue was recorded in the same period of 2023[63](index=63&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) Atomera held $13.8 million cash and $3.6 million investments, used $10.2 million in operations, raised $8.5 million via ATM, and expects sufficient capital for 12 months - The company had cash and cash equivalents of **$13.8 million** and short-term investments of **$3.6 million** as of September 30, 2024[82](index=82&type=chunk) - During the first nine months of 2024, the company raised approximately **$8.5 million** in net proceeds from its ATM offering. An additional **$1.6 million** was raised through the ATM after September 30, 2024[83](index=83&type=chunk) - Management believes that available working capital is sufficient to fund its forecasted requirements for at least the next 12 months[84](index=84&type=chunk) [Controls and Procedures](index=21&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded disclosure controls and procedures were effective as of September 30, 2024, with no material changes to internal controls during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2024[87](index=87&type=chunk) - No material changes were made to internal controls over financial reporting during the third quarter of 2024[88](index=88&type=chunk) PART II. Other Information [Key Disclosures](index=22&type=section&id=Key%20Disclosures) No material changes to risk factors from 2023 Annual Report; CTO Robert Mears adopted a Rule 10b5-1 trading plan for 18,530 shares - The primary risk factors affecting the business have not materially changed from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[90](index=90&type=chunk) - On September 10, 2024, Robert Mears, the Chief Technology Officer, adopted a Rule 10b5-1 trading plan for the potential sale of up to **18,530 shares**, set to expire on September 10, 2025[92](index=92&type=chunk)

Financial Performance - Atomera reported a net loss of $4.6 million, or $0.17 per share, for Q3 2024, an improvement from a net loss of $5.0 million, or $0.20 per share, in Q3 2023[3] - Adjusted EBITDA for Q3 2024 was a loss of $3.9 million, compared to a loss of $4.3 million in Q3 2023[3] - Total net loss for the nine months ended September 2024 was $(13,778) thousand, compared to $(15,210) thousand for the same period in 2023[12] - Non-GAAP EBITDA for September 2024 was $(3,881) thousand, compared to $(4,292) thousand in September 2023, indicating a reduction in losses[12] - The company continues to focus on reducing net losses and improving EBITDA metrics in future quarters[12] Cash and Investments - The company had $17.3 million in cash, cash equivalents, and short-term investments as of September 30, 2024, down from $19.5 million as of December 31, 2023[4] Operating Expenses - Total operating expenses for Q3 2024 were $4.8 million, slightly lower than $4.6 million in Q2 2024[11] - Research and development expenses increased to $2.8 million in Q3 2024 from $2.6 million in Q2 2024[11] - Depreciation and amortization expenses were $12 thousand for the three months ended September 2024, down from $20 thousand in the same period last year[12] - Stock-based compensation decreased to $907 thousand in September 2024 from $1,041 thousand in September 2023[12] - Interest expense for September 2024 was $30 thousand, a decrease from $47 thousand in September 2023[12] - Interest income for September 2024 was $(176) thousand, slightly improved from $(177) thousand in September 2023[12] - Accretion income for September 2024 was $(59) thousand, compared to $(112) thousand in September 2023[12] - Other income, net, was $(72) thousand for both September 2024 and September 2023, indicating no change[12] Market and Collaborations - Atomera announced a collaboration with Sandia National Laboratories to address GaN manufacturing challenges, indicating potential market expansion[2] - The company is optimistic about accelerating engagements in various segments, which may lead to new licenses and joint development agreements[2] Share Information - The total number of shares outstanding was 28.3 million as of September 30, 2024[4] Gross Margin - Atomera's gross margin for Q3 2024 was reported at 19%[11] Early-Stage Risks - The company has recognized minimal engineering services and licensing revenues to date, highlighting the risks of being an early-stage enterprise[7]

Atomera Incorporated (NASDAQ:ATOM) Q2 2024 Results Conference Call July 30, 2024 5:00 PM ET Company Participants Mike Bishop - Investor Relations Scott Bibaud - President and Chief Executive Officer Frank Laurencio - Chief Financial Officer Conference Call Participants Richard Shannon - Craig Hallam Mike Bishop Hello, everyone and welcome to Atomera’s Second Quarter Fiscal Year 2024 Update Call. I’d like to remind everyone that this call and webinar are being recorded, and a replay will be available on Atom ...

Revenue and Costs - Revenue for the three and six months ended June 30, 2024, was approximately $72,000 and $90,000 respectively, with no revenue recorded during the same periods in 2023[77] - Cost of revenue for the three and six months ended June 30, 2024, was approximately $74,000 and $107,000 respectively, with no cost recorded during the same periods in 2023[79] Operating Expenses - Operating expenses for the three months ended June 30, 2024, totaled approximately $4.6 million, a decrease from $5.4 million in 2023, while for the six months, expenses were approximately $9.6 million compared to $10.5 million in 2023[80] - Research and development expenses for the three months ended June 30, 2024, were approximately $2.6 million, a decrease of 19% from $3.2 million in 2023, and for the six months, expenses were approximately $5.4 million, down 13% from $6.2 million in 2023[81][82] - General and administrative expenses for the three months ended June 30, 2024, were approximately $1.8 million, an increase of 3% from 2023, while for the six months, expenses were approximately $3.6 million, up 4% from 2023[83][84] - Selling and marketing expenses for the three months ended June 30, 2024, were approximately $207,000, a decrease of 47% from $393,000 in 2023, and for the six months, expenses were approximately $557,000, down 29% from $782,000 in 2023[85] Income and Cash Flow - Interest income for the three months ended June 30, 2024, was approximately $185,000, compared to $152,000 in 2023, and for the six months, it was approximately $390,000 versus $351,000 in 2023[87] - Net cash used in operating activities for the six months ended June 30, 2024, was approximately $7.3 million, compared to $8.2 million in 2023[89] - As of June 30, 2024, the company had cash and cash equivalents of approximately $14.5 million and short-term investments of approximately $3.8 million[92] Future Outlook and Capital Requirements - The company believes its available working capital is sufficient to fund forecasted working capital requirements for at least the next 12 months[93] - Future capital requirements will depend on the successful commercialization of MST technology and potential collaborations or acquisitions[93] - If sufficient revenue from license fees and royalties is not generated, the company may need to raise additional capital through various financing sources[93] Compliance and Controls - Management evaluated the effectiveness of disclosure controls and procedures, concluding they were effective as of June 30, 2024[95] - There have been no changes to critical accounting estimates from the Annual Report on Form 10-K for the year ended December 31, 2023[94] - No changes to internal controls over financial reporting have occurred that materially affect the company's reporting[96] Licensing Agreement - The company entered into a license agreement with ST Microelectronics in April 2023, which is expected to generate royalties on MST-enabled products once milestones are met[73]

Financial Performance - Atomera reported a net loss of $4.4 million, or $0.16 per share, for Q2 2024, an improvement from a net loss of $5.2 million, or $0.21 per share, in Q2 2023[3] - Adjusted EBITDA loss for Q2 2024 was $3.6 million, compared to a loss of $4.3 million in Q2 2023[3] - Net loss for the three months ended June 30, 2024, was $4.361 million, compared to a net loss of $5.152 million for the same period in 2023, representing a 15.3% improvement[14] - Non-GAAP EBITDA for the six months ended June 30, 2024, was a loss of $7.623 million, compared to a loss of $8.530 million for the same period in 2023, indicating a 10.6% reduction in losses[14] - The total net loss for the six months ended June 30, 2024, was $(9.183 million), compared to $(10.171 million) for the same period in 2023, showing an 9.7% decrease in losses[14] Cash and Investments - The company had $18.3 million in cash, cash equivalents, and short-term investments as of June 30, 2024, down from $19.5 million at the end of 2023[3] - Stock-based compensation for the three months ended June 30, 2024, was $987,000, slightly down from $1.030 million in the same period last year[14] - Interest income decreased to $(185,000) for the three months ended June 30, 2024, compared to $(152,000) for the same period in 2023[14] - Interest expense for the three months ended June 30, 2024, was $35,000, a decrease from $51,000 in the same period in 2023[14] - Other income, net, for the three months ended June 30, 2024, was $(72,000), with no other income reported in the same period last year[14] - Accretion income for the three months ended June 30, 2024, was $(47,000), slightly better than $(107,000) reported in the same period last year[14] Operating Expenses - Research and development expenses for Q2 2024 were $2.6 million, compared to $3.2 million in Q2 2023[13] - Total operating expenses for Q2 2024 were $4.6 million, down from $5.4 million in Q2 2023[13] - Depreciation and amortization expenses for the three months ended June 30, 2024, were $13,000, down from $20,000 in the same period last year[14] Business Development - The company announced the availability of an MST RFSOI wafer substrates solution for cellular communication products[1] - A new VP of Marketing and Business Development was appointed, indicating a focus on enhancing business development efforts[1] - Atomera submitted its first proposal under the Chips and Sciences Act, aiming to leverage government support for semiconductor technology[1] - The company is on track with its lead customer towards production, indicating potential future revenue growth[2] Shares Outstanding - Total shares outstanding as of June 30, 2024, were 27.6 million[3]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2024. or ☐ Transition Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the transition period from __________ to __________ Commission file number: 001-37850 ATOMERA INCORPORATED (Exact name of registrant as specified in its charter) | --- | --- | ...

Atomera Incorporated (NASDAQ:ATOM) Q1 2024 Earnings Conference Call April 25, 2024 5:00 PM ET Company Participants Mike Bishop - Investor Relations Scott Bibaud - President and Chief Executive Officer Frank Laurencio - Chief Financial Officer Conference Call Participants Richard Shannon - Craig-Hallum Mike Bishop Hello, everyone and welcome to Atomera’s First Quarter Fiscal Year 2024 Update Call. I’d like to remind everyone that this call and webinar are being recorded, and a replay will be available on Ato ...