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].

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 ...