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]

Financial Performance - Revenue for the three months ended March 31, 2024, was approximately $18,000, compared to $0 for the same period in 2023[72]. - Cost of revenue for the three months ended March 31, 2024, was approximately $33,000, compared to $0 for the same period in 2023[74]. - Operating expenses for the three months ended March 31, 2024, totaled approximately $5.0 million, a slight decrease from $5.2 million in 2023[75]. - Research and development expenses for the three months ended March 31, 2024, were approximately $2.9 million, down 6% from $3.0 million in 2023[76]. - General and administrative expenses increased to approximately $1.8 million for the three months ended March 31, 2024, from $1.7 million in 2023, representing a 4% increase[77]. - Selling and marketing expenses decreased to approximately $350,000 for the three months ended March 31, 2024, from $389,000 in 2023, a decrease of 10%[78]. - Net cash used in operating activities was approximately $4.1 million for the three months ended March 31, 2024, compared to $4.2 million in 2023[80][82]. Cash Position - As of March 31, 2024, the company had cash and cash equivalents of approximately $14.8 million and working capital of approximately $16.8 million[84]. Licensing Agreement - The company entered into a license agreement with ST Microelectronics in April 2023, which includes milestone payments and royalties on MST-enabled products[69]. Share Offering - Approximately 510,000 shares were sold under the ATM offering at an average price of $8.06, resulting in approximately $4.0 million of net proceeds for the three months ended March 31, 2024[70][84].

Financial Data and Key Metrics Changes - The GAAP net loss for Q1 2024 was $4.8 million or $0.19 per share, compared to a net loss of $5 million or $0.21 per share in Q1 2023 [22] - Revenues were $18,000 in Q1 2024, a decrease from $550,000 in Q4 2023 and an increase from $0 in Q1 2023 [22][26] - GAAP operating expenses were $5 million in Q1 2024, a decrease of approximately $148,000 from $5.2 million in Q1 2023 [22] - Non-GAAP net loss in Q1 2024 was $4 million, compared to a loss of $4.2 million in Q1 2023 [24] Business Line Data and Key Metrics Changes - The first announced customer, STMicroelectronics, is incorporating MST into the design of next-generation smart power products, with ST reporting $2.2 billion in APMS revenue for Q1 2024 [9] - A historically high number of proposals for licenses and JDAs were submitted, indicating increased customer interest [10] - The foundry licensee is interested in incorporating MST into their next-generation process nodes [12] Market Data and Key Metrics Changes - The semiconductor industry is expected to see modest growth, particularly in AI and DRAM sectors, while automotive markets are softening [7] - The GaN market is growing rapidly, with a reported 41% growth in 2023 and a projected CAGR of 46% over the next five years [17] Company Strategy and Development Direction - The company aims to help STMicroelectronics achieve high performance with MST and expedite production [9] - Atomera is exploring new applications in the compound semiconductor sector, including silicon carbide and gallium nitride [16] - The focus remains on converting proposals into licenses to establish a diversified technology leadership in the semiconductor industry [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the semiconductor market's growth and the company's positioning to benefit from increased customer interest [8] - The company is confident in its ability to announce license deals that will solidify its business potential [28] - Management acknowledged the frustration of investors regarding the lack of immediate business announcements despite ongoing efforts [14] Other Important Information - The company has been evaluating potential R&D foundry partners and plans to recruit new marketing talent [20] - The balance of cash, cash equivalents, and short-term investments was $19.3 million as of March 31, 2024 [24] Q&A Session Summary Question: Significance of record number of proposals - Management clarified that proposals are generated only when customers express interest, indicating strong demand [30] Question: Timing for PDK from STMicro - Management confirmed they have visibility into STMicro's development process but cannot disclose specific timelines [34] Question: Outcome expectations for MST CAD license - The MST CAD license is a first step towards a manufacturing license, with expectations for continued engagement beyond the initial contract [39] Question: Engagement with JDA partners - Management expressed frustration over delays in decision-making from JDA partners despite meeting all specifications [41][42] Question: Replacement for TSI - Management indicated that discussions with potential replacements for TSI are progressing well, with multiple options available [53] Question: Business model for GaN market - The company is considering various approaches for entering the GaN market, including licensing and potential manufacturing [64]

Financial Performance - Atomera reported a net loss of $4.8 million, or $0.19 per share, for Q1 2024, an improvement from a net loss of $5.0 million, or $0.21 per share, in Q1 2023[3] - Adjusted EBITDA for Q1 2024 was a loss of $4.0 million, compared to a loss of $4.2 million in Q1 2023[3] - The company had $19.3 million in cash and short-term investments as of March 31, 2024, slightly down from $19.5 million at the end of 2023[3] - Atomera's total operating expenses for Q1 2024 were $5.0 million, a decrease from $5.3 million in Q4 2023[12] - Research and development expenses were $2.9 million in Q1 2024, down from $3.0 million in Q1 2023[12] - The total number of shares outstanding was 26.9 million as of March 31, 2024[3] Business Development - The company reported a record number of commercial proposals in the last three months, indicating strong customer engagement[1] - Atomera is making progress in the compound semiconductor market, which is expected to drive future growth[2] - The company continues to explore licensing agreements with multiple customers, marking a significant increase in activity[2] Technology Innovation - Atomera's proprietary Mears Silicon Technology™ aims to enhance performance and power efficiency in semiconductor transistors[6]

Core Insights - Hypergrowth stocks present both significant investment opportunities and risks, with some companies experiencing substantial revenue growth while others face challenges and losses [1][2] - The current economic environment, characterized by declining interest rates, may provide a favorable backdrop for previously high-performing stocks to regain momentum [2] Company Summaries Atomera (ATOM) - Atomera is leveraging its Mears Silicon Technology (MST) to enhance semiconductor performance without altering manufacturing tools, with applications across various circuit types [3] - A partnership with STMicroelectronics has validated MST's production readiness, potentially leading to increased industry recognition [4] - Revenue projections for Atomera indicate growth from $3 million in 2024 to $10 million in 2025, marking a significant inflection point for the company [4] Data Storage Corp. (DTST) - Data Storage Corp. is positioned as a key player in the AI data infrastructure market, benefiting from the growing demand for data storage solutions [6] - The company reported a 35% year-over-year revenue growth to $6 million last quarter, maintaining profitability with earnings per share of 2 cents [7] - The CloudFirst segment has shown triple-digit growth, indicating strong potential for future expansion [6] Civitas Resources (CIVI) - Civitas Resources is an independent oil and gas producer with significant growth in earnings and revenue expected, with EPS projected to rise by 17% this year and 15% next year [8] - Revenue is anticipated to surge by 57% to $5.5 billion in 2024, supported by favorable oil prices due to tight supply and strong demand [8] - The company offers an attractive 8.5% dividend yield, distributing 50% of its average free cash flow, indicating robust cash flow growth potential [8]

da-kuk Atomera Incorporated (NASDAQ:ATOM) recently reported significant exposure to the AI industry, 5G, and the IoT sector, which may, in my view, accelerate net sales growth. Taking into account the number of customer engagements expected for the year 2024, the business connections of ATOM's CEO, and total amount of cash standing in the balance sheet, ATOM does look like a buy. There are risks from failed sales and marketing efforts, failed partnerships with manufacturers, or lack of sufficient financing ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT UNDER 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) Delaware 30-0509586 (State or Other jurisdiction ...

Financial Data and Key Metrics Changes - Revenue for 2023 was $550,000, all recognized in Q4, resulting from the installation and acceptance of MST technology at STMicro's fab [19] - GAAP net loss for 2023 was $19.8 million, or $0.80 per share, compared to a net loss of $17.4 million, or $0.75 per share in 2022 [19] - GAAP operating expenses were $21.2 million in 2023, an increase of approximately $3.4 million from $17.8 million in 2022, primarily driven by a $2.5 million increase in R&D expenses [19][20] Business Line Data and Key Metrics Changes - The installation of MST technology at STMicro's fab in Agrate, Italy was a significant milestone, marking the transition to production [6][7] - The company is seeing growth in Phase 4 of its customer pipeline, reflecting the ST installation and ongoing development with other customers [12][13] Market Data and Key Metrics Changes - The semiconductor industry faced negative growth in 2023, but there is emerging optimism for 2024 driven by new AI capabilities [6] - Increased interest in higher voltage semiconductor areas is noted, with competition from Chinese companies prompting established players to differentiate their technology [14] Company Strategy and Development Direction - The company aims to accelerate customer adoption of MST technology, with a focus on getting more customers to production [12][18] - The strategy includes leveraging the successful installation at STMicro to drive interest and adoption among other potential customers [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting 2023 as a catalyst year for commercial success [5][18] - The company is focused on ensuring a successful and rapid production ramp of MST at STMicro while also pursuing additional customers [12][26] Other Important Information - The company has a cash balance of $19.5 million as of December 31, 2023, down from $21.2 million at the end of 2022 [22] - The next grant of license rights to STMicro will enable them to manufacture and sell products with MST, leading to royalty payments for Atomera [22][23] Q&A Session Summary Question: Time frame for productization with STMicro - Management indicated that while the expected time frame remains 1.5 to 2 years, recent progress could potentially allow for an earlier timeline [27][28] Question: Halo effect of STMicro's adoption - Management confirmed that STMicro's engagement is already acting as a catalyst for other companies to consider adopting MST technology [31][32] Question: Update on engagement with DRAM manufacturers - Management stated ongoing discussions with DRAM manufacturers, indicating that the work is not in early stages and is progressing [51][53] Question: Impact of TSI delay on business - Management clarified that the delay with TSI does not impact customer engagements, as TSI was primarily for internal R&D testing [45][46] Question: Update on the CHIPS Act - Management is actively working to engage with the government for potential opportunities related to the CHIPS Act, although no specific announcements were made [59]

Financial Data and Key Metrics Changes - The GAAP net loss for Q3 2023 was $5 million or $0.20 per share, compared to a net loss of $4.6 million or $0.20 per share in Q3 2022 [16] - GAAP operating expenses were $5.4 million in Q3 2023, an increase of approximately $696,000 from $4.7 million in Q2 2022 [16] - Non-GAAP net loss was flat sequentially at $4.3 million in Q3 and Q2 of 2023, compared to a loss of $3.7 million in Q3 of 2022 [17] Business Line Data and Key Metrics Changes - The company reported progress with Phase 3 customers, indicating a growing number of opportunities and applications for MST technology [5] - Experiments with JDA 1 customer showed excellent technical results, focusing on a significant problem faced by one of their largest business units [9] - Interest in higher voltage technology offerings, MST, SP, and SPX has increased, with MSTcad being adopted by a large analog and power manufacturer [10] Market Data and Key Metrics Changes - The company is part of the Southwest Advanced Prototyping Hub, which received funding through the CHIPS and Sciences Act, enhancing its position in the semiconductor ecosystem [12] - The company is seeing a shift in the RF SOI market, with new silicon test results validating improvements that are critical for cellular product designers [10] Company Strategy and Development Direction - Atomera aims to build a strong and growing royalty stream by expanding its customer base across various market segments [15] - The company is focusing on establishing partnerships and ecosystems to advance its technology in complex and expensive semiconductor markets [12] - Atomera has introduced a new segment for MST technology in DRAM, targeting improvements that align with the demands of artificial intelligence [14] Management's Comments on Operating Environment and Future Outlook - Management believes the current market conditions, characterized by low capacity utilization, present opportunities for development without disruption [37] - The company anticipates a return to normal levels of activity in the semiconductor industry, with growth expected to pick up next year [37] - Management expressed optimism about the future, expecting to announce more licensing and production deals soon [15] Other Important Information - The balance of cash, cash equivalents, and short-term investments was $20.4 million as of September 30, 2023, down from $23.8 million on June 30, 2023 [18] - The company expects Q4 revenue to be in the range of $300,000 to $350,000, primarily from STMicro's first milestone payment for MST installation [19] Q&A Session Summary Question: Clarification on STMicro's timeline - Management believes there will be no delay in the 18- to 24-month timeframe for STMicro to reach production, as development work will continue regardless of installation timing [24] Question: Progress with JDA 1 customer - The focus is currently on business-related dynamics rather than technological issues, with discussions ongoing to finalize a contract for production [29] Question: Impact of STMicro on other customers - The STMicro license agreement is believed to enhance credibility and interest in MST technology among other potential customers [30] Question: Market conditions and customer sentiment - Management noted that while the market has been rough this year, low capacity utilization allows for quicker integration of new technologies without disrupting existing operations [37] Question: Engagement with STMicro - MST technology is being applied within STMicro's smart power products team, with potential applications across multiple divisions [40]