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Form 8-K Atomera Inc For: Oct 29

October 29, 2020 4:06 PM

Exhibit 99.1

 

 

Atomera Provides Third Quarter 2020 Results

 

LOS GATOS, Calif. — Oct. 29, 2020 — Atomera Incorporated (NASDAQ: ATOM), a semiconductor materials and intellectual property licensing company focused on deploying its proprietary technology into the semiconductor industry, today provided a corporate update and announced financial results for the third quarter ended Sept. 30, 2020.

 

Company Highlights

 

·Commenced MST deposition on 300mm wafers on new epi tool
·Achieved further gains on MST-SP’s industry leading performance
·Bolstered balance sheet with proceeds of At-The-Market (ATM) equity program

 

Management Commentary

 

“Atomera made excellent progress on customer and R&D developments in the third quarter,” said Scott Bibaud, President and CEO. “We believe we are drawing closer to a joint development agreement encompassing development, licensing and manufacturing, which we believe will decrease the time to commercialization of MST. As our 300mm wafer deposition capability comes online, paired with our new TCAD capabilities, we believe we are poised to accelerate customers’ time to production. With our ATM facility, we strengthened the balance sheet and positioned the Company for the next phase of growth.”

 

Third Quarter 2020 Financial Results

 

During the third quarter of 2020, revenue was $0, compared with $254 thousand in the third quarter of 2019. The Company incurred a net loss of $3.6 million, or ($0.19) per basic and diluted share, in the third quarter of 2020, compared to a net loss of $3.1 million, or ($0.19) per basic and diluted share, for the third quarter of 2019. Adjusted EBITDA (a non-GAAP financial measure) in the third quarter of 2020 was a loss of $2.7 million compared to an adjusted EBITDA loss of $2.4 million in the third quarter of 2019.

 

The Company had $25.3 million in cash and cash equivalents as of Sept. 30, 2020, compared to $14.9 million as of December 31, 2019. During the quarter, Atomera sold 845,730 shares under its ATM facility resulting in net proceeds of $8.6 million. The total number of shares outstanding was 21.0 million as of Sept. 30, 2020.

 

Third Quarter 2020 Results Conference Call and Webcast

 

Atomera will host a conference call today to discuss its financial results and recent progress.

Date: Thursday, Oct. 29, 2020

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

Webcast: Accessible at www.atomera.com

Phone: (844) 263-8318 (domestic); +1 (213) 358-0960 (international); passcode 6268059

Replay: Available until Nov. 5, 2020; (855) 859-2056 (domestic); +1(404) 537-3406 (international); passcode 6268059.

 

 

 

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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 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.

 

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 or entered into a definitive royalty-based manufacturing and distribution license agreement with regard to our MST technology, thus subjecting us to all of the risks inherent in an early-stage enterprise; (2) risks related to our ability to advance the licensing arrangements with our initial integration licensees, Asahi Kasei Microdevices, ST Microelectronics and our fabless licensee, to royalty-based manufacturing and distribution licenses or our ability to add other licensees; (3) 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; (4) impact of the coronavirus pandemic on our customers, partners, internal operations and market conditions, including our ability to access financial markets on favorable terms, (5) our ability to protect our proprietary technology, trade secrets and know-how and (6) those other risks disclosed in the section "Risk Factors" included in our Prospectus Supplement filed pursuant to Rule 424(b)(5) with the SEC on September 2, 2020. 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 --

 

 

 

 

 

 

 

 

 

 

 

 

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Atomera Incorporated

Condensed Balance Sheets

(in thousands, except per share data)

 

   September 30,   December 31, 
   2020   2019 
    (Unaudited)      
ASSETS          
           
Current assets:          
Cash and cash equivalents  $25,297   $14,871 
Prepaid expenses and other current assets   181    132 
Total current assets   25,478    15,003 
           
Property and equipment, net   87    63 
Operating lease right-of-use asset   735    161 
Long-term prepaid rent   450     
Security deposit   13    13 
           
Total assets  $26,763   $15,240 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
           
Current liabilities:          
Accounts payable  $563   $315 
Accrued expenses   234    145 
Accrued payroll related expenses   511    819 
Current operating lease liability   92    152 
Deferred revenue       37 
Total current liabilities   1,400    1,468 
           
Long term operating lease liability   631     
           
Total liabilities   2,031    1,468 
           
Commitments and contingencies          
           
Stockholders’ equity:          
Preferred stock, $0.001 par value, authorized 2,500 shares; none issued and outstanding at September 30, 2020 and December 31, 2019.        
Common stock, $0.001 par value, authorized 47,500 shares; 20,971 and 17,117 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively.   21    17 
Additional paid-in capital   170,975    149,017 
Accumulated deficit   (146,264)   (135,262)
Total stockholders’ equity   24,732    13,772 
           
Total liabilities and stockholders’ equity  $26,763   $15,240 

 

 

 

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Atomera Incorporated

Condensed Statements of Operations

(Unaudited)

(in thousands, except per share data)

 

  

Three Months ended

September 30,

  

Nine Months ended

September 30,

 
   2020   2019   2020   2019 
Revenue  $   $254   $62   $395 
Cost of revenue       (204)   (13)   (224)
Gross margin       50    49    171 
                     
Operating expenses                    
Research and development   2,049    1,746    6,197    5,930 
General and administrative   1,322    1,239    4,247    4,048 
Selling and marketing   208    240    648    712 
Total operating expenses   3,579    3,225    11,092    10,690 
                     
Loss from operations   (3,579)   (3,175)   (11,043)   (10,519)
                     
Other income                    
Interest income   1    89    41    265 
Total other income   1    89    41    265 
                     
Net loss  $(3,578)  $(3,086)  $(11,002)  $(10,254)
Net loss per common share, basic and diluted  $(0.19)  $(0.19)  $(0.61)  $(0.66)
                     
Weighted average number of common shares outstanding, basic and diluted   19,337    16,567    18,028    15,597 

 

 

 

 

Atomera Incorporated

Reconciliation to Non- GAAP EBITDA

(Unaudited)

 

  

Three Months Ended

September 30,

  

Nine Months Ended

September 30,

 
   2020   2019   2020   2019 
                 
Net loss (GAAP)  $(3,578)  $(3,086)  $(11,002)  $(10,254)
Add (subtract) the following items:                    
Interest income   (1)   (89)   (41)   (265)
Depreciation and amortization   11    12    32    33 
Warrant modification           139     
Stock-based compensation   829    798    2,224    2,280 
Adjusted EBITDA (non-GAAP)  $(2,739)  $(2,365)  $(8,648)  $(8,206)

 

 

 

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Investor Contact:

Bishop IR

Mike Bishop

(415) 894-9633

[email protected]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Exhibit 99.2

 

Q3 2020 Conference Call October 29, 2020 1

 
 

2 Safe Harbor This presentation contains forward - looking statements concerning Atomera Incorporated (““Atomera,” the “Company,” “we,” “us,” and “our”). The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “plan,” “expect” and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward - looking statements. These forward - looking statements are subject to a number of risks, uncertainties and assumptions, including those disclosed in the section "Risk Factors" included in our Prospectus Supplement filed pursuant to Rule 424(b)(5)with the SEC on September 2, 2020. In light of these risks, uncertainties and assumptions, the forward - looking events and circumstances discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in our forward - looking statements. You should not rely upon forward - looking statements as predictions of future events. Although we believe that the expectations reflected in our forward - looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward - looking statements will be achieved or occur. This presentation contains only basic information concerning Atomera. The Company’s filings with the Securities Exchange Commission, including the Prospectus Supplement , include more information about factors that could affect the Company’s operating and financial results. We assume no obligation to update information contained in this presentation. Although this presentation may remain available on the Company's website or elsewhere, its continued availability does not indicate that we are reaffirming or confirming any of the information contained herein.

 
 

Mears Silicon Technology (MST®) Quantum Engineered Materials 3 Company Overview Strong, Growing and Defensible Patent Portfolio High Leverage IP Licensing Business Model Top Tier Management Team Transistor enhancement technology for the $450B semiconductor market 3

 
 

4 Customer Pipeline • 19 customers, 25 engagements • Working with 50% of the world’s top semiconductor makers* 0 3 6 9 12 15 18 21 24 27 IPO 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 Number of Customer Engagements Phase 1 Phase 2 Phase 3 * At least 10 of the top 20 (IC Insights, McClean Report 2019)

 
 

5 Customer engagement model v Customer Wafer Manufacturing Atomera MST ® Deposition Customer MST ® Deposition Phase 1 . Planning 2 . Setup 3 . Integration 4 . Installation 5 . Qualification 6 . Production Royalties Engineering Service Fees • MST deposition on customer wafers • Integration consulting License Fees • Integration licenses • Manufacturing licenses • Distribution licenses Joint Development Agreements

 
 

6 Atomera MSTcad ™ progress ⒒ Leading semiconductor companies use TCAD ⒒ MST is modelled with a TCAD add - on called MSTcad ⒒ These plots show silicon verification of MSTcad simulations ⒒ Enables good electrical match - up for 5V NMOS and MST SP ⒒ Should speed time to successful results with customers Atomera Confidential

 
 

7 300mm Epi tool Source: The McClean Report - 2019 300mm Epi Deposition Tool

 
 

8 Financial review FY 2019 Q1 '20 Q2 '20 Q3 '20 YTD 2020 GAAP Results Revenue $0.53M $0.06M -$ -$ $0.06M Gross Profit $0.28M $0.05M -$ -$ $0.05M Operating Expense R&D $7.7 $2.1M $2.1M $2.0M $6.2M G&A $5.2 $1.4M $1.5M $1.3M $4.2M S&M $1.0 $0.2M $0.2M $0.2M $0.6M Total Operating Expense $13.9M $3.7M $3.8M $3.6M $11.1M Net Loss ($13.3M) ($3.6M) ($3.8M) ($3.6M) $11.0M Loss Per Share ($0.84) ($0.22) ($0.21) ($0.19) ($0.62) Reconciliation between GAAP & Non-GAAP Net Loss (GAAP) ($13.3M) ($3.6M) ($3.8M) ($3.6M) ($11.0M) Stock-Based Compensation $2.9M $0.6M $0.8M $0.8M $2.2M Warrant Modification - $0.1M - - $0.1M Other income (expense) ($0.3M) - - - - Adjusted EBITDA (Non-GAAP)* ($10.7M) ($2.9M) ($3.0M) ($2.7M) ($8.6M) * Adjusted EBITDA is a non-GAAP financial measure. A full reconciliation of GAAP and non-GAAP results is contained in our Q3 press release. Some totals reflect rounding.

 
 

Thank You 9

 

 

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