Atomera(US:ATOM)2023-10-31 16:00Financial Performance - Atomera's revenue for the three and nine months ended September 30, 2023, was $0, compared to $2,000 and $377,000 for the same periods in 2022 [77]. - For the nine months ended September 30, 2023, the company reported a net loss of approximately $15.2 million and used approximately $11.6 million of cash and cash equivalents in operations [89]. Operating Expenses - Operating expenses for the three months ended September 30, 2023, were approximately $5.4 million, an increase of 15% from $4.7 million in 2022 [79]. - Research and development expenses for the three months ended September 30, 2023, increased by approximately $562,000, or 20%, totaling approximately $3.3 million [80]. - General and administrative expenses for the three months ended September 30, 2023, were approximately $1.7 million, reflecting a 7% increase from $1.6 million in 2022 [82]. - Selling and marketing expenses for the three months ended September 30, 2023, were approximately $365,000, an increase of 5% from $347,000 in 2022 [83]. Cash Flow - Net cash used in operating activities for the nine months ended September 30, 2023, was approximately $11.6 million, resulting from a net loss of approximately $15.2 million [87]. - Net cash used in investing activities for the nine months ended September 30, 2023, was approximately $7.6 million, primarily for the purchase of short-term available-for-sale investments [88]. - Net cash provided by financing activities for the nine months ended September 30, 2023, was approximately $10.7 million, primarily related to net proceeds from the ATM offering [88]. - As of September 30, 2023, the company had cash and cash equivalents of approximately $12.6 million, short-term investments of approximately $7.7 million, and working capital of approximately $17.9 million [89]. Capital Raising and Future Needs - The company sold approximately 1.4 million shares at an average price of approximately $8.11, resulting in approximately $11.2 million of net proceeds after deducting commissions and other offering expenses [91]. - Since September 30, 2023, the company sold approximately 15,000 additional shares at an average price of $7.13, resulting in additional net proceeds of approximately $104,000 [91]. - The company believes its available working capital is sufficient to fund its forecasted working capital requirements for at least the next 12 months [92]. - The company may need to raise additional capital if it cannot generate sufficient revenue from license fees and royalties [92]. Licensing and Partnerships - Atomera entered into a license agreement with ST Microelectronics in April 2023, which could lead to royalties on MST-enabled products upon successful milestones [72]. Operational Risks - The company is facing a potential loss of access to semiconductor manufacturing and engineering services from TSI Technology Development & Commercialization Services LLC, effective January 31, 2024 [96]. - The transition to a new foundry provider may incur meaningful startup costs and divert engineering resources from ongoing R&D activities [96]. Internal Controls and Accounting - The company has not experienced any changes to its critical accounting estimates or internal controls over financial reporting during the reporting period [93][94]. - Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2023 [93].