Atomera(ATOM) - 2022 Q4 - Annual Report

Revenue and Financial Performance - Revenue for the year ended December 31, 2022, was approximately $382,000, a decrease of 4.5% compared to $400,000 in 2021[132]. - The company incurred a net loss of approximately $17.4 million for the year ended December 31, 2022[139]. Costs and Expenses - Cost of revenue for 2022 was approximately $81,000, compared to $0 in 2021, indicating the start of integration engineering services[134]. - Operating expenses for 2022 totaled approximately $17.8 million, an increase of 11.9% from $15.9 million in 2021[134]. - Research and development expenses increased by approximately $1.3 million, or 14%, to $10.0 million in 2022 from $8.8 million in 2021[135]. - General and administrative expenses rose by approximately $277,000, or 4%, to $6.4 million in 2022 from $6.2 million in 2021[136]. - Selling and marketing expenses increased by approximately $362,000, or 37%, to $1.3 million in 2022 from $986,000 in 2021[137]. Income and Cash Position - Interest income for 2022 was approximately $340,000, a significant increase from $9,000 in 2021, due to higher interest rates[137]. - As of December 31, 2022, cash and cash equivalents were approximately $21.2 million, with working capital of approximately $18.7 million[139]. Share Issuance - Approximately 527,000 shares were sold in an at-the-market offering at an average price of $11.68, resulting in approximately $5.8 million of net proceeds[141]. Revenue Recognition and Accounting Policies - Integration service revenue from integration license agreements is recognized as the service is provided to the customer, indicating a performance obligation tied to technology delivery[146]. - Right-of-use (ROU) assets and lease liabilities are recognized for all leases greater than 12 months, based on the present value of lease payments over the lease term[147]. - Stock-based compensation expense is accounted for based on the fair values of equity instruments, with RSAs measured at market price and stock options valued using the Black-Scholes model[148]. - The expected dividend yield for stock-based compensation is assumed to be 0% as the company has not declared or paid dividends[149]. - The risk-free interest rate for stock options is based on U.S. Treasury securities yields with similar maturities to the expected terms of the awards[149].