Financial Performance - Revenue for the three months ended September 30, 2022, was $2 thousand, compared to $377 thousand for the same period in 2021, representing a decrease of 99.5%[14] - Gross margin for the nine months ended September 30, 2022, was $296 thousand, down from $400 thousand in the same period of 2021, indicating a decline of 26%[14] - Net loss for the three months ended September 30, 2022, was $4,602 thousand, compared to a net loss of $4,203 thousand for the same period in 2021, an increase of 9.5%[14] - For the nine months ended September 30, 2022, the net loss was $13.169 million, compared to a net loss of $11.549 million for the same period in 2021, representing an increase of approximately 14.0%[19] - The company generated limited revenues, with total revenue recognized of $2,000 for the nine months ended September 30, 2022, compared to $377,000 for the same period in 2021, indicating a significant decline of approximately 99.5%[29] Assets and Liabilities - Total current assets decreased from $29,008 thousand as of December 31, 2021, to $23,884 thousand as of September 30, 2022, a decline of approximately 17.6%[10] - Total liabilities decreased from $7,679 thousand as of December 31, 2021, to $6,680 thousand as of September 30, 2022, a reduction of approximately 13%[10] - Stockholders' equity decreased from $28,381 thousand as of December 31, 2021, to $22,679 thousand as of September 30, 2022, a decline of 20%[10] - Cash and cash equivalents decreased from $28,699 thousand as of December 31, 2021, to $23,287 thousand as of September 30, 2022, a decline of 18.9%[10] - Cash and cash equivalents at September 30, 2022, were approximately $23.3 million, down from $31.789 million at the end of the same period in 2021, indicating a decrease of about 26.8%[19] Operating Expenses - Operating expenses for the nine months ended September 30, 2022, totaled $13,416 thousand, up from $11,856 thousand in the same period of 2021, an increase of 13.1%[14] - Research and development expenses increased to $7,515 thousand for the nine months ended September 30, 2022, compared to $6,530 thousand in the same period of 2021, reflecting a rise of 15.1%[14] - Research and development expenses increased to $2,743 thousand for the three months ended September 30, 2022, compared to $2,232 thousand in the same period of 2021, marking an increase of 23%[14] - The company reported net cash used in operating activities of $9.581 million for the nine months ended September 30, 2022, compared to $9.404 million for the same period in 2021, reflecting a slight increase of 1.9%[19] Stock and Compensation - The weighted average number of common shares outstanding, basic, increased from 22,629 for the three months ended September 30, 2021, to 23,294 for the same period in 2022, an increase of 2.9%[14] - Stock-based compensation for the nine months ended September 30, 2022, was $2.474 million, compared to $2.334 million for the same period in 2021, an increase of approximately 6.0%[19] - The company recorded stock-based compensation expense of $889 for the three months ended September 30, 2022, compared to $756 for the same period in 2021, marking a 17.6% increase[46] - Total stock options increased to 3,019, up from 2,975 in the same period last year, representing a growth of 1.5%[33] - The company granted options to purchase approximately 196,000 shares of common stock during the nine months ended September 30, 2022, with a fair value of approximately $2.0 million at the time of grant[48] Future Outlook and Financing - Atomera has sufficient capital to fund its current business plans and obligations for at least the next 12 months, with working capital of approximately $21.1 million as of September 30, 2022[22] - The company has primarily financed operations through private placements and public offerings, including an ATM facility with an aggregate offering price of up to $50 million[23] - The company plans to increase research and development expenses over the next 12 months to support technology commercialization efforts[24] - The company has entered into an Equity Distribution Agreement allowing for the sale of up to $50 million in common stock, which may be utilized for future capital needs[23] Legal and Compliance - The company has no material litigation as of September 30, 2022, indicating a stable legal environment for operations[53] - The company did not incur withholding of income taxes for the three or nine months ended September 30, 2022, compared to provisions of $17,000 and $48,000 in the same periods of 2021[52]

Atomera Incorporated (NASDAQ:ATOM) Q2 2022 Earnings Conference Call August 2, 2022 5:00 PM ET Company Participants Mike Bishop - Investor Relations Scott Bibaud - President and Chief Executive Officer, Board Director Frank Laurencio - Chief Financial Officer Conference Call Participants Richard Shannon - Craig Hallum Cody Acree - The Benchmark Company Mike Bishop Hello, everyone, and welcome to Atomera’s Second Quarter Fiscal Year 2022 Update Call. I’d like to remind everyone that this call and webinar ar ...

[PART I. Financial Information](index=2&type=section&id=PART%20I.%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited financial statements show Atomera as an early-stage company with limited revenue, recurring losses, and operations funded by equity financing Condensed Balance Sheet Highlights (in thousands) | Account | June 30, 2022 (Unaudited) | December 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $21,838 | $28,699 | | Total current assets | $22,488 | $29,008 | | Total assets | $28,782 | $36,060 | | Total current liabilities | $2,795 | $2,753 | | Total liabilities | $7,032 | $7,679 | | Total stockholders' equity | $21,750 | $28,381 | Condensed Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $0 | $0 | $375 | $400 | | Total operating expenses | $4,447 | $3,712 | $8,759 | $7,720 | | Loss from operations | ($4,447) | ($3,712) | ($8,465) | ($7,320) | | Net loss | ($4,481) | ($3,726) | ($8,567) | ($7,346) | | Net loss per share, basic & diluted | ($0.20) | ($0.17) | ($0.37) | ($0.33) | Condensed Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | ($6,615) | ($6,634) | | Net cash used in investing activities | ($19) | ($79) | | Net cash (used) provided by financing activities | ($227) | $3,112 | | Net decrease in cash and cash equivalents | ($6,861) | ($3,601) | - The company is an early-stage entity focused on developing, commercializing, and licensing proprietary technologies for the semiconductor industry, with limited revenue-generating activities to date[23](index=23&type=chunk) - As of June 30, 2022, the company had approximately **$21.8 million** in cash and cash equivalents, believed sufficient to fund operations for at least the next 12 months, supplemented by an At-The-Market (ATM) facility for up to **$50.0 million** established in May 2022[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - Subsequent to the quarter's end, as of August 1, 2022, the company issued an additional **235,050 shares** through its ATM offering, raising net proceeds of approximately **$2.6 million**[58](index=58&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=13&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's MST technology commercialization through licensing, noting a slight revenue decrease and a **14%** increase in operating expenses for the first six months of 2022 - The company's business model involves licensing its proprietary MST technology to foundries, IDMs, and fabless semiconductor companies, generating revenue from license fees and future royalties[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) Revenue Comparison (in thousands) | Period | 2022 | 2021 | | :--- | :--- | :--- | | Three Months Ended June 30 | $0 | $0 | | Six Months Ended June 30 | $375 | $400 | Operating Expenses Comparison (in thousands) | Expense Category | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Research & development | $2,433 | $2,069 | $4,772 | $4,298 | | General & administrative | $1,667 | $1,506 | $3,315 | $3,019 | | Selling and marketing | $347 | $137 | $672 | $403 | | **Total Operating Expenses** | **$4,447** | **$3,712** | **$8,759** | **$7,720** | - The increase in R&D expense was primarily due to tool lease expenses, while selling and marketing expenses rose due to increased employee-related costs and outsourced marketing activities[71](index=71&type=chunk)[72](index=72&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk) - As of June 30, 2022, the company had **$21.8 million** in cash and cash equivalents and **$19.7 million** in working capital, which management believes is sufficient to fund operations for at least the next 12 months[82](index=82&type=chunk)[83](index=83&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=17&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section is not applicable for the current reporting period - The company has indicated that this disclosure is not applicable[85](index=85&type=chunk) [Controls and Procedures](index=17&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal controls over financial reporting during the quarter - Based on an evaluation, management concluded that the company's disclosure controls and procedures were effective as of June 30, 2022[86](index=86&type=chunk) - There were no changes during the quarter ended June 30, 2022, that materially affected, or are reasonably likely to materially affect, the company's internal controls over financial reporting[87](index=87&type=chunk) [PART II. Other Information](index=18&type=section&id=PART%20II.%20Other%20Information) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the primary risk factors from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2021 - The primary risk factors have not changed materially from those set forth in the Annual Report on Form 10-K for the year ended December 31, 2021[90](index=90&type=chunk) [Exhibits](index=18&type=section&id=Item%206.%20Exhibits) This section lists key exhibits filed with the Form 10-Q, including Sarbanes-Oxley certifications and the Equity Distribution Agreement for the ATM offering - The list of filed exhibits includes Sarbanes-Oxley certifications (Exhibits 31.1, 31.2, 32.1) and the Equity Distribution Agreement with Oppenheimer & Co. Inc. and Craig-Hallum Capital Group LLC dated May 31, 2022 (Exhibit 10.1)[92](index=92&type=chunk) [Signatures](index=19&type=section&id=Signatures)

Financial Data and Key Metrics Changes - The GAAP net loss for Q1 2022 was $4.1 million or $0.18 per share, compared to a net loss of $3.6 million or $0.16 per share in Q1 2021 [20] - Revenue in Q1 2022 was $375,000, down from $400,000 in Q1 2021, with no revenue recognized in Q4 2021 [20] - GAAP operating expenses in Q1 2022 were $4.3 million, compared to $4 million in Q1 2021 [20] - The cash balance at March 31, 2022, was $24.5 million, down from $28.7 million at the end of 2021 [21] Business Line Data and Key Metrics Changes - The company has 19 customers and 25 engagements in its pipeline, including 2 joint development agreements (JDAs) and 5 paid licenses [11] - The first JDA resulted in a milestone payment recognized as revenue in Q1 2022, while the second JDA is expected to accelerate the path to commercialization [22] Market Data and Key Metrics Changes - The semiconductor industry is experiencing a 21% forecast growth in 200-millimeter fab capacity to address chip supply shortfalls [16] - Industry-wide capital expenditures are forecast to grow by 24% in 2022, primarily in 300-millimeter wafer fabs [17] Company Strategy and Development Direction - The company aims to ship MST-based products to generate royalty payments, with a focus on moving customers towards commercialization quickly [7][12] - The company is expanding its total addressable market (TAM) as it works with more customers and unveils new capabilities [24] Management's Comments on Operating Environment and Future Outlook - Management believes that the current semiconductor industry conditions present exceptional opportunities for the company, with both near and long-term structural changes favoring MST adoption [18] - The company is optimistic about the momentum gained from recent JDAs and the favorable macro environment for MST technology [24] Other Important Information - The company has developed MSTcad simulation software in collaboration with Synopsys to help industry players understand MST integration [13] - The company is focusing on RF-SOI technology, which is critical for 5G cellular applications, and sees significant commercial potential in this area [15] Q&A Session Summary Question: Can you describe the differences between the first and second JDAs? - The second JDA is focused on a specific business unit, allowing for potentially faster movement to production compared to the first JDA, which went through a central engineering group [27][28] Question: What is the timeline for the second JDA? - The timeline for the second JDA is expected to be faster than the first, which took nearly a year to start [70] Question: Are royalty rates already negotiated for the second JDA? - Final royalty rates have not been negotiated yet, but discussions about expected ranges have occurred [72][73] Question: What is the status of early licensees? - Most licensees are progressing towards getting technology into production, with one licensee currently facing operational challenges due to a facility issue [56] Question: How is the company addressing hiring challenges? - The company is focused on adding engineering headcount to meet customer demand, with hiring efforts expected to ramp up in the second half of the year [62][66]

Revenue - Revenue for Q1 2022 was $375,000, a decrease of 6.25% from $400,000 in Q1 2021[66] Cost of Revenue - Cost of revenue for Q1 2022 was approximately $81,000, compared to $0 in Q1 2021[66] Operating Expenses - Operating expenses for Q1 2022 totaled approximately $4.3 million, an increase of 7.5% from $4.0 million in Q1 2021[67] - Research and development expenses for Q1 2022 were approximately $2.3 million, a 5% increase from $2.2 million in Q1 2021[69] - General and administrative expenses for Q1 2022 were approximately $1.6 million, up 9% from $1.5 million in Q1 2021[70] - Selling and marketing expenses for Q1 2022 were approximately $325,000, an increase of 22% from $266,000 in Q1 2021[70] Cash Flow - Net cash used in operating activities for Q1 2022 was approximately $4.1 million, compared to $3.9 million in Q1 2021[72] - As of March 31, 2022, cash and cash equivalents were approximately $24.5 million, with working capital of approximately $23.1 million[74] - The company generated approximately $24.2 million in net proceeds from an at-the-market offering conducted between September 2020 and January 2021[63] - The company anticipates that available working capital is sufficient to fund operations for at least the next 12 months[75] Accounting and Controls - There have been no changes to critical accounting estimates from the Annual Report for the year ended December 31, 2021[76] - Management concluded that disclosure controls and procedures were effective as of March 31, 2022[76] - No changes to internal controls over financial reporting during the three-month period ended March 31, 2022[77]

Atomera Incorporated (NASDAQ:ATOM) Q4 2021 Earnings Conference Call February 15, 2022 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 Capital Mike Bishop Hello, everyone, and welcome to Atomera's Fourth Quarter Fiscal Year 2021 Update Call. I would like to remind everyone that this call and webinar are being recorded, and a replay will b ...