Atomera Provides Second Quarter 2023 Results

Read Time:7 Minute, 6 Second

LOS GATOS, CA / ACCESSWIRE / August 2, 2023 / Atomera Incorporated (NASDAQ:ATOM), a semiconductor materials and technology licensing company, today provided a corporate update and announced financial results for the second quarter ended June 30, 2023.

Recent Company Highlights

Commenced productization efforts with STM through MSTcad simulation work in support of the previously announced commercial license.
Responded to increased interest by memory and advanced node customers for use of MST to solve significant industry problems.

Management Commentary

“We are excited about kicking off our commercial license agreement with STMicroelectronics by cooperating with their team to begin the process of device optimization with the goal of entering the production royalty stage as early as possible,” said Scott Bibaud, President and CEO. “We continue to make progress across power/analog, RFSOI, advanced nodes and DRAM, and see growing customer interest in installation of MST to accelerate evaluation and integration, which we believe will translate into more license agreements.”

Financial Results

The Company incurred a net loss of ($5.2) million, or ($0.21) per basic and diluted share in the second quarter of 2023, compared to a net loss of ($4.5) million, or ($0.20) per basic and diluted share, for the second quarter of 2022. Adjusted EBITDA (a non-GAAP financial measure) in the second quarter of 2023 was a loss of ($4.3) million compared to an adjusted EBITDA loss of ($3.6) million in the second quarter of 2022.

The Company had $23.8 million in cash, cash equivalents and short-term investments as of June 30, 2023, compared to $21.2 million as of December 31, 2022.

The total number of shares outstanding was 25.8 million as of June 30, 2023.

Second Quarter 2023 Results Webinar

Atomera will host a live video webinar today to discuss its financial results and recent progress.

Date: Wednesday, Aug. 2, 2023

Time: 2:00 p.m. PT (5:00 p.m. ET)

Webcast: Accessible at https://ir.atomera.com

Note about Non–GAAP Financial Measures

In addition to the unaudited results presented in accordance with generally accepted accounting principles, or GAAP, in this press release, Atomera presents adjusted EBITDA, which is a non–GAAP financial measure. Adjusted EBITDA is determined by taking net loss and eliminating the impacts of interest, depreciation, amortization and stock–based compensation. Our definition of adjusted EBITDA may not be comparable to the definitions of similarly–titled measures used by other companies. We believe that this non–GAAP financial measure, viewed in addition to and not in lieu of our reported GAAP results, provides useful information to investors by providing a more focused measure of operating results. This metric is used as part of the Company’s internal reporting to evaluate its operations and the performance of senior management. A table reconciling this measure to the comparable GAAP measure is available in the accompanying financial tables below.

About Atomera Incorporated

Atomera Incorporated is a semiconductor materials and technology licensing company focused on deploying its proprietary, silicon–proven technology into the semiconductor industry. Atomera has developed Mears Silicon Technology™ (MST^®), which increases performance and power efficiency in semiconductor transistors. MST can be implemented using equipment already deployed in semiconductor manufacturing facilities and is complementary to other nano-scaling technologies already in the semiconductor industry roadmap. More information can be found at www.atomera.com

Safe Harbor

This press release contains forward–looking statements concerning Atomera Incorporated, including statements regarding the prospects for the semiconductor industry generally and the ability of our MST technology to significantly improve semiconductor performance. Those forward–looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially. Among those factors are: (1) the fact that, to date, we have only recognized minimal engineering services and licensing revenues and we have not yet commenced principal revenue producing operations, thus subjecting us to all of the risks inherent in an early-stage enterprise; (2) the risk that STMicroelectronics does not proceed with MST in its manufacturing process or does not take MST-enabled products to market, (3) risks related to our ability to successfully complete the milestones in our joint development agreements or, even if successfully completed, to reach a commercial distribution license with our JDA customers; (4) risks related to our ability to advance licensing arrangements with our integration licensees to royalty–based manufacturing and distribution licenses or our ability to add other licensees; (5) risks related to our ability to raise sufficient capital, as and when needed, to pursue the further development, licensing and commercialization of our MST technology; (6) our ability to protect our proprietary technology, trade secrets and knowhow and (7) those other risks disclosed in the section “Risk Factors” included in our Annual Report on Form 10-K filed with the SEC on February 15, 2023. We caution readers not to place undue reliance on any forward–looking statements. We do not undertake, and specifically disclaim any obligation, to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

– Financial Tables Follow –

Atomera Incorporated
Condensed Balance Sheets
(in thousands, except per share data)

	June 30,			March 31,			December 31,
	2023			2023			2022
	(Unaudited)			(Unaudited)
ASSETS

Current assets:
Cash and cash equivalents	$	12,904		$	12,118		$	21,184
Short-term investments		10,931			4,934			–
Interest receivable		50			46			–
Prepaid expenses and other current assets		650			257			418
Total current assets		24,535			17,355			21,602

Property and equipment, net		135			153			158
Long-term prepaid maintenance and supplies		91			91			91
Security deposit		14			14			14
Operating lease right-of-use asset		631			648			700
Financing lease right-of-use-asset		3,583			3,874			4,164

Total assets	$	28,989		$	22,135		$	26,729

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	562		$	423		$	397
Accrued expenses		218			242			173
Accrued payroll related expenses		578			292			967
Current operating lease liability		259			247			245
Current financing lease liability		1,357			1,240			1,126
Total current liabilities		2,974			2,444			2,908

Long-term operating lease liability		400			475			521
Long-term financing lease liability		2,376			2,683			2,986

Total liabilities		5,750			5,602			6,415

Commitments and contingencies		–			–			–

Stockholders’ equity:
Preferred stock $0.001 par value, authorized 2,500 shares; none issued and outstanding as of June 30, 2023, March 31, 2023 and December 31, 2022		–			–			–
Common stock: $0.001 par value, authorized 47,500 shares; 25,770, 24,330 and 23,973 shares issued and outstanding as of June 30, 2023, March 31, 2023 and December 31, 2022, respectively;		26			24			24
Additional paid-in capital		216,681			204,825			203,585
Other comprehensive income(loss)		(2	)		(2	)		–
Accumulated deficit		(193,466	)		(188,314	)		(183,295	)
Total stockholders’ equity		23,239			16,533			20,314
Total liabilities and stockholders’ equity	$	28,989		$	22,135		$	26,729

Atomera Incorporated
Condensed Statements of Operations
(Unaudited)
(in thousands, except per share data)

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2023			2023			2022			2023			2022
Revenue	$	–		$	–		$	–		$	–		$	375
Cost of revenue		–			–			–			–			(81	)
Gross margin		–			–			–			–			294

Operating expenses
Research and development		3,192			3,036			2,433			6,228			4,772
General and administrative		1,775			1,742			1,667			3,517			3,315
Selling and marketing		393			389			347			782			672
Total operating expenses		5,360			5,167			4,447			10,527			8,759

Loss from operations		(5,360	)		(5,167	)		(4,447	)		(10,527	)		(8,465	)

Other income (expense)
Interest income		152			199			35			351			38
Accretion income		107			2			–			109			–
Interest expense		(51	)		(53	)		(69	)		(104	)		(140	)
Total other income (expense), net		208			148			(34	)		356			(102	)

Net loss	$	(5,152	)	$	(5,019	)	$	(4,481	)	$	(10,171	)	$	(8,567	)

Net loss per common share, basic and diluted	$	(0.21	)	$	(0.21	)	$	(0.20	)	$	(0.42	)	$	(0.37	)

Weighted average number of common shares outstanding, basic and diluted		24,677			23,660			22,936			24,171			22,894

Atomera Incorporated
Reconciliation to Non-GAAP EBITDA
(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,
	2023		2023		2022		2023		2022
Net loss (GAAP)	$	(5,152)	$	(5,019)	$	(4,481)	$	(10,171)	$	(8,567)
Depreciation and amortization		20		20		19		40		39
Stock-based compensation		1,030		927		859		1,957		1,585
Interest income		(152)		(199)		(35)		(351)		(38)
Accretion income		(107		(2)		–		(109)		–
Interest expense		51		53		69		104		140
Net loss non-GAAP EBITDA	$	(4,310)	$	(4,220)	$	(3,569)	$	(8,530)	$	(6,841)