Atomera(US:ATOM)2022-08-01 16:00PART I. Financial Information Financial Statements 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 date23 - 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 2022242526 - 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 million58 Management's Discussion and Analysis of Financial Condition and Results of Operations 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 royalties616263 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 activities71727576 - 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 months8283 Quantitative and Qualitative Disclosures about Market Risk This section is not applicable for the current reporting period - The company has indicated that this disclosure is not applicable85 Controls and Procedures 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, 202286 - 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 reporting87 PART II. Other Information Risk Factors 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, 202190 Exhibits 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 Signatures