Core Viewpoint - Atomic Minerals Corporation has entered into a share exchange agreement to acquire Stratigraphic Capital Corp, which owns the Mont-Laurier Uranium Property in Quebec, comprising 2,351 hectares, at a time when uranium prices are appreciating [1][2]. Company Overview - Atomic Minerals Corporation is a publicly listed exploration company on the TSX Venture Exchange under the symbol ATOM, focusing on identifying exploration opportunities in underexplored regions with geological similarities to areas with previous uranium discoveries [14][15]. - The company is led by a skilled management and technical team with a proven track record in the junior mining sector [14]. Acquisition Details - The agreement involves Atomic Minerals issuing 8,000,000 common shares at a deemed price of $0.02 per share, totaling an aggregate consideration of $160,000 [12]. - The shares are subject to a resale restriction of six months, with 50% released immediately upon closing and the remaining 50% released six months thereafter [12][13]. Mont-Laurier Uranium Property - The Mont-Laurier Uranium Property is located approximately 40 kilometers northeast of Mont-Laurier in Quebec and lies within a historically significant radioactive district [3]. - Historical exploration in the area has outlined several zones of low-grade uranium mineralization, with notable estimates including 0.52 million tonnes at 0.054% U3O8 from the Meekos zone [3][7]. - The historical estimates are considered inferred resources under NI 43-101, and verification through further drilling is required to classify them as current mineral resources [4]. Exploration Potential - The acquisition is seen as a strategic move to enhance Atomic Minerals' position as an industry leader, particularly given the recent rise in uranium prices [2]. - The company believes the Mont-Laurier project has significant exploration potential, supported by historical estimates and geological assessments [2][4].

Revenue Performance - Revenue for the three months ended March 31, 2025, was approximately $4,000, a decrease from $18,000 in the same period of 2024[68] Operating Expenses - Operating expenses for the three months ended March 31, 2025, totaled approximately $5.5 million, compared to $5.0 million for the same period in 2024, representing an increase of 10%[70] - Research and development expenses increased by approximately $397,000, or 14%, to approximately $3.3 million for the three months ended March 31, 2025, compared to $2.9 million in 2024[72] - General and administrative expenses rose by approximately $277,000, or 15%, to approximately $2.1 million for the three months ended March 31, 2025, from $1.8 million in 2024[73] - Selling and marketing expenses decreased by approximately $226,000, or 65%, to approximately $124,000 for the three months ended March 31, 2025, compared to $350,000 in 2024[74] Cash Flow and Financial Position - Net cash used in operating activities was approximately $4.8 million for the three months ended March 31, 2025, primarily due to a net loss of approximately $5.2 million[78] - As of March 31, 2025, the company had cash and cash equivalents of approximately $24.1 million and working capital of approximately $21.7 million[82] - The company sold approximately 164,000 shares of common stock at an average price of approximately $15.19, resulting in approximately $2.4 million of net proceeds during the three months ended March 31, 2025[83] - The company anticipates that its available working capital is sufficient to fund its forecasted working capital requirements for at least the next 12 months[84] Licensing Agreement - The license agreement with ST Microelectronics executed in April 2023 is expected to generate royalties on all MST-enabled products manufactured for commercial purposes[67]

Company Overview - Atomera focuses on Mears Silicon Technology (MST®) for transistor enhancement in the $600 billion semiconductor market[6] - The company operates a high-leverage IP licensing business model with a strong patent portfolio[6] - Atomera has a strategic marketing agreement with a major semiconductor equipment maker focused on Gate-All-Around transistors[7, 10] Customer Engagement - Atomera is engaged with 21 customers across 26 engagements, including more than half of the world's top semiconductor makers[17] - At least 10 of the top 20 semiconductor sales leaders with fabs are Atomera's customers[15] - Customer engagements are categorized into phases from planning to production[12] Technology & Applications - MST technology is focused on advanced nodes, RF-SOI, Power (SP, SPX), and DRAM[11] - Atomera is developing MST for GaN/Si, providing modified Si substrates incorporating MST layers[18, 20] - Preliminary electrical data for GaN/Si indicates fewer defects, lower leakage, and higher breakdown voltage[20] Financial Performance - Revenue for the three months ended March 31, 2025, was $4 thousand, compared to $18 thousand for the three months ended March 31, 2024[21] - Operating loss for the three months ended March 31, 2025, was $(5,463) thousand, compared to $(5,034) thousand for the three months ended March 31, 2024[21] - Cash, equivalents, and short-term investments were $24,123 thousand as of March 31, 2025[21]

Financial Data and Key Metrics Changes - The GAAP net loss for Q1 2025 was $5.2 million or $0.17 per share, compared to a net loss of $4.8 million or $0.19 per share in Q1 2024 [21] - GAAP operating expenses in Q1 2025 were $5.5 million, an increase of $448,000 from $5 million in Q1 2024 [21][22] - Non-GAAP net loss in Q1 2025 was $4.4 million compared to a loss of $4 million in Q1 2024 [22] - Cash, cash equivalents, and short-term investments as of March 31, 2025, were $24.1 million, down from $26.8 million on December 31, 2024 [24] Business Line Data and Key Metrics Changes - The partnership with a major capital equipment provider aims to enhance the development and production of advanced material solutions, particularly in gate-all-around technology [4][5] - Significant progress has been made in gate-all-around applications, generating detailed silicon-validated performance enhancement data for customers [9] - New patents focused on DRAM sense amplifiers have been granted, relevant for both high bandwidth and standard DDR memories [9] Market Data and Key Metrics Changes - The epi equipment market is expected to reach approximately $2.6 billion by 2027, with a CAGR of 10% to 15% in leading-edge nodes [9] - The market for gallium nitride (GaN) applications is forecasted to exceed $2 billion at the device level by the end of the decade, growing at about a 40% CAGR [17] Company Strategy and Development Direction - The company is focused on expanding its technology licensing business within the semiconductor industry, particularly in areas related to AI infrastructure and advanced semiconductor applications [20] - The partnership with the capital equipment provider is expected to accelerate the closing of license deals and enhance the company's market position [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning to deliver solutions for challenging electronic devices, emphasizing the importance of technology and relationships with large semiconductor companies [26] - The company is actively recruiting for its engineering and sales teams to support the transition to high-volume production and to close deals [20] Other Important Information - The company raised $2.4 million under its ATM facility by selling approximately 163,000 shares at an average price of $15.19 [24] - Non-GAAP operating expenses for 2025 are expected to be in the range of $17.25 million to $17.75 million [25] Q&A Session Summary Question: Can you provide details about the partnership with the capital equipment provider? - The partnership involves a long-term relationship with a major equipment provider, focusing on gate-all-around technology and leveraging their capabilities for testing and production [30][34] Question: What is the focus of the work with STMicro? - The work with STMicro is focused on optimizing manufacturability, yield, and throughput in preparation for high-volume manufacturing, with discussions ongoing in multiple product areas [12][40] Question: What is the status of the transformative customers mentioned in previous calls? - Discussions with transformative customers are ongoing, with one customer moving faster than expected and showing significant interest in expanding the scope of work [51][70] Question: What are the implications of the restated employment agreement? - The restated agreement aimed to correct a mistake regarding severance upon change of control, with no significant implications beyond that [66] Question: How are the electrical results from Sandia Lab? - The electrical results show improved device performance, consistent with previous observations of material quality improvements [72]

Financial Data and Key Metrics Changes - The GAAP net loss for Q1 2025 was $5.2 million or 17¢ per share, compared to a net loss of $4.8 million or 19¢ per share in Q1 2024 [21] - GAAP operating expenses in Q1 2025 were $5.5 million, an increase of $448,000 from $5 million in Q1 2024 [21] - Non-GAAP net loss in Q1 2025 was $4.4 million compared to a loss of $4 million in Q1 2024 [22] Business Line Data and Key Metrics Changes - The increase in operating expenses was attributed to a $397,000 rise in R&D expenses and a $277,000 increase in G&A expenses, partially offset by a $226,000 decline in sales and marketing expenses [22] - The company is actively working on multiple technology areas, including gate all around applications and memory technologies, with significant progress reported in customer engagements [10][14] Market Data and Key Metrics Changes - The EPI equipment market is expected to reach approximately $2.6 billion by 2027, with a CAGR of 10% to 15% in leading-edge nodes [10] - The market for gallium nitride (GaN) applications is forecasted to exceed $2 billion at the device level by the end of the decade, growing at about a 40% CAGR [17] Company Strategy and Development Direction - The company has announced a partnership with a major capital equipment provider to enhance its technology offerings and accelerate customer engagements [4][9] - The focus on advanced node customers and the collaboration with the equipment provider aims to optimize production processes and improve customer solutions [5][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning to deliver solutions for challenging electronic devices, emphasizing the importance of technology licensing within the semiconductor industry [20] - The company is actively recruiting to expand its engineering and sales teams to support growth and high-volume production [20] Other Important Information - The company raised $2.4 million under its ATM facility by selling approximately 163,000 shares at an average price of $15.19, maintaining a comfortable cash position [23] - Non-GAAP operating expenses for 2025 are expected to be in the range of $17.25 million to $17.75 million [25] Q&A Session Summary Question: Details on the partnership with the capital equipment company - The partnership involves extensive collaboration on technology development and production, with the partner providing significant resources and capabilities [32] Question: Focus of the partnership - The work is primarily focused on gate all around technologies, applicable to both logic and memory sectors [33] Question: Updates on STMicro collaboration - The company is engaged in discussions with multiple groups within STMicro, indicating strong credibility and interest in various technology areas [36][38] Question: Progress with RF SOI customers - There is increased interest in improving low noise amplifiers (LNAs) due to changing specifications from mobile phone manufacturers [43] Question: Status of transformative customers - Discussions with transformative customers are ongoing, with positive momentum and interest in expanding collaboration [49] Question: Financial outlook and operating expenses - Non-GAAP operating expenses for 2025 are projected to be around $17.25 million to $17.75 million, with a gradual ramp-up expected [54]

Financial Performance - The company reported a net loss of $5.2 million, or $0.17 per share, for Q1 2025, compared to a net loss of $4.8 million, or $0.19 per share, in Q1 2024[4] - Adjusted EBITDA for Q1 2025 was a loss of $4.4 million, compared to a loss of $4.0 million in Q1 2024[4] - Total revenue for Q1 2025 was $4,000, compared to $18,000 in Q1 2024, reflecting a significant decrease[16] - Operating expenses increased to $5.5 million in Q1 2025 from $5.0 million in Q1 2024, primarily driven by R&D and administrative costs[16] - The accumulated deficit as of March 31, 2025, was $226.7 million, up from $221.5 million at the end of 2024[14] Cash Position - Cash and cash equivalents decreased to $24.1 million as of March 31, 2025, down from $26.8 million as of December 31, 2024[5] - The total number of shares outstanding was 30.7 million as of March 31, 2025[6] Strategic Initiatives - The company signed a strategic marketing agreement with a leading chip fabrication equipment vendor to enhance deal execution and drive license revenues[3] - The company expanded engagements with STMicroelectronics and RF SOI customers to new applications, indicating growth opportunities[8] - The company built its first MST-enabled GaN devices at Sandia and began electrical testing, showcasing advancements in technology[8]

Revenue and Financial Performance - Revenue for the year ended December 31, 2024 was approximately $135,000, a decrease from $550,000 in 2023, primarily due to limited customer engagements [132]. - The company incurred a net loss of approximately $18.4 million for the year ended December 31, 2024 [142]. - Interest income increased to approximately $779,000 in 2024 from $723,000 in 2023, attributed to higher interest rates and cash balances [139]. - As of December 31, 2024, the company had cash, cash equivalents, and short-term investments of approximately $26.8 million [142]. - The company sold approximately 4.1 million shares at an average price of approximately $5.38, resulting in approximately $21.3 million of net proceeds in 2024 [143]. Expenses - Cost of revenue increased to approximately $123,000 in 2024 from $28,000 in 2023, reflecting the costs associated with integration engineering services [133]. - Operating expenses totaled approximately $19.3 million in 2024, a decrease from $21.2 million in 2023 [134]. - Research and development expenses decreased by approximately $1.5 million, or 12%, to $11.0 million in 2024 from $12.5 million in 2023 [136]. - General and administrative expenses increased by approximately $191,000, or 3%, to $7.3 million in 2024 from $7.1 million in 2023 [137]. - Selling and marketing expenses decreased by approximately $546,000, or 34%, to $1.1 million in 2024 from $1.6 million in 2023 [138]. Accounting and Financial Reporting - Financial statements are prepared in accordance with U.S. generally accepted accounting principles, requiring significant estimates and assumptions that could lead to actual results differing from reported amounts [151]. - Leases greater than 12 months result in the recognition of a right-of-use (ROU) asset and a liability at the lease commencement date based on the present value of lease payments [152]. Stock-Based Compensation - Stock-based compensation programs include restricted stock awards (RSAs) and stock options, with expenses based on the fair values of the equity instruments issued [153]. - The fair value of RSAs is measured at the market price of common stock on the measurement date and amortized over the vesting period [153]. - The expected term for employee stock awards is derived from historical information regarding future exercise patterns and behavior after employment termination [155]. - Expected volatility for stock options is estimated using the company's historical volatility for similar terms [155]. - The company has not declared or paid dividends and assumes an expected dividend yield of 0% [155]. - The risk-free interest rate for stock options is based on U.S. Treasury securities yields with maturities similar to the expected terms of the associated awards [155].

Financial Data and Key Metrics Changes - Revenue for 2024 was $135,000, consisting of MST CAD licensing and NRE fees, compared to $550,000 in Q4 2023 [39] - GAAP net loss for 2024 was $18.4 million or $0.68 per share, an improvement from a net loss of $19.8 million or $0.80 per share in 2023 [39] - GAAP operating expenses decreased to $19.3 million in 2024 from $21.2 million in 2023, primarily due to a $1.5 million reduction in R&D expenses [39][40] - Cash, cash equivalents, and short-term investments increased to $26.8 million at the end of 2024 from $19.5 million at the end of 2023 [41] Business Line Data and Key Metrics Changes - The company reported a decline in sales and marketing expenses by $546,000 due to lower headcount costs, while G&A expenses increased by $191,000 due to higher payroll and legal costs [39] - Non-GAAP net loss for 2024 was $15.4 million, down from $16.6 million in 2023, reflecting a decrease in non-GAAP operating expenses [41] Market Data and Key Metrics Changes - The market for gate-all-around architecture is valued at approximately $150 billion in 2023, with significant opportunities in advanced logic IDMs and foundries [15] - The memory segment is projected to be worth over $125 billion in 2024, with a focus on low production costs [19] - The power semiconductor market is expected to exceed $52 billion in 2024, driven by AI and vehicle electrification [23] Company Strategy and Development Direction - The company aims to solidify its value proposition in four major high-growth semiconductor markets while exploring new opportunities for faster revenue generation [33] - The focus on gate-all-around and memory technologies aligns with the industry's push towards AI infrastructure [36] - The company is enhancing its R&D pipeline, with over 30 granted and pending patents in 2024 [34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for MST technology to drive performance improvements in semiconductors, particularly in AI applications [15][36] - The company is hopeful for the resumption of discussions with a transformative customer, emphasizing the value of their technology [12][14] - Management acknowledged the challenges in negotiations but remains confident in the long-term adoption of their technology [52][54] Other Important Information - The company plans to announce when it enters process qualification with STMicro, which will lead to recognizing license revenue [26] - The company raised approximately $21.3 million through the sale of shares under its ATM facility in 2024 [42] Q&A Session Summary Question: Dynamics of the transformative opportunity - Management confirmed that the sticking points in negotiations are not solely pricing but involve multiple decision-makers within the customer organization [50][52] Question: Progress with leading-edge logic and memory - Management noted increased engagement with advanced node and memory customers, highlighting the industry's shift towards gate-all-around technology [58][60] Question: Update on GaN progress - Management indicated that GaN is a new area with significant interest, and they expect to have electrical results soon that could lead to customer engagements [66][70] Question: STMicro process qualification timeline - Management explained that there has been a delay in the process due to logistics issues, but they are optimistic about moving forward soon [76][78] Question: Current stage of collaboration with DRAM customers - Management confirmed ongoing engagement with multiple memory customers, emphasizing the importance of high bandwidth memory for AI infrastructures [111][112]

February 11, 2025 Atomera Incorporated 1 Q4 2024 Conference Call Atomera Incorporated 2 Mears Silicon Technology (MST®) Quantum Engineered Materials Transistor enhancement technology for the $600B semiconductor market High Leverage IP Licensing Business Model Top Tier Management Team Safe Harbor This presentation contains forward-looking statements concerning Atomera Incorporated (""Atomera," the "Company," "we," "us," and "our"). The words "believe," "may," "will," "potentially," "estimate," "continue," "a ...

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].