Atomera Provides Third Quarter 2020 Results
October 29 2020 - 4:01PM
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,
2020Time: 2:00 p.m. PT (5:00 p.m. ET)Webcast: Accessible at
www.atomera.comPhone: (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.
Note about Non-GAAP Financial
MeasuresIn 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
IncorporatedAtomera 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 HarborThis 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 --
|
Atomera IncorporatedCondensed 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 |
|
|
|
|
|
|
|
|
|
|
|
Atomera IncorporatedCondensed 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 IncorporatedReconciliation to
Non-GAAP EBITDA(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months EndedSeptember
30, |
|
|
Nine Months
EndedSeptember 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 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Contact:Bishop IRMike Bishop(415)
894-9633investor@atomera.com
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