Atomera Incorporated (ATOM) Bundle
A Brief History of Atomera Incorporated
Atomera Incorporated (ATOM), a semiconductor materials and technology company, has focused on the development and commercialization of its proprietary Mismatch Stress Technology (MST). As of 2024, Atomera operates on the forefront of semiconductor innovation, providing solutions aimed at enhancing the performance of integrated circuits.
Company Foundation and Early Developments
Founded in 2001, Atomera began its journey in the semiconductor industry with the aim of delivering advanced materials that improve chip performance. The company has dedicated significant resources to research and development, securing a number of patents related to its MST technology.
Financial Performance Overview
As of September 30, 2024, Atomera reported a net loss of approximately $13.8 million for the nine-month period, compared to a net loss of $15.2 million for the same period in 2023. The company's revenue for the three months ended September 30, 2024, was approximately $22,000, with total revenue for the nine months amounting to $112,000, reflecting its early-stage commercialization efforts.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Loss | (4,595,000) | (5,039,000) | (13,778,000) | (15,210,000) |
| Revenue | 22,000 | 0 | 112,000 | 0 |
| Operating Expenses | 4,819,000 | 5,353,000 | 14,466,000 | 15,880,000 |
Research and Development Investments
Atomera's commitment to innovation is evident from its substantial investment in research and development. The company incurred approximately $8.2 million in R&D expenses over the nine months ended September 30, 2024, a decrease from $9.5 million in the same period of the prior year. This reduction was largely attributed to the discontinuation of outsourced R&D services from TSI Semiconductor, which ceased operations as of January 31, 2024.
Liquidity and Capital Resources
As of September 30, 2024, Atomera reported cash and cash equivalents of approximately $13.8 million, along with short-term investments of about $3.6 million. The company has generated limited revenues since its inception and has incurred recurring operating losses, which necessitates ongoing capital management strategies.
During the nine-month period ended September 30, 2024, Atomera raised approximately $8.5 million through its at-the-market (ATM) offering, selling approximately 1.9 million shares at an average price of $4.74 per share. The remaining capacity on the ATM as of the same date was approximately $20.9 million, indicating potential future funding opportunities.
| Liquidity Metric | As of September 30, 2024 |
|---|---|
| Cash and Cash Equivalents | $13,800,000 |
| Short-term Investments | $3,600,000 |
| Working Capital | $14,400,000 |
Recent Developments and Future Outlook
Atomera's strategic focus includes expanding its MST technology applications and forming partnerships to enhance its market position. The company continues to explore avenues for commercialization while managing its operational costs effectively. The ongoing efforts aim to transition from early-stage technology development to revenue-generating operations, which is critical for its long-term sustainability.
A Who Owns Atomera Incorporated (ATOM)
Major Shareholders
As of 2024, Atomera Incorporated (ATOM) has a varied ownership structure, primarily composed of institutional investors, individual shareholders, and company executives. Below is a summary of the major shareholders as of September 30, 2024:
| Shareholder Type | Name | Shares Owned | Percentage of Ownership |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 2,135,000 | 7.5% |
| Institutional Investor | The Vanguard Group, Inc. | 1,800,000 | 6.3% |
| Institutional Investor | Invesco Ltd. | 1,500,000 | 5.3% |
| Individual | Scott Bibaud (CEO) | 2,247 | 0.01% |
| Other Individual | Board of Directors and Executives | Approximately 1,000,000 | 3.5% |
| Retail Investors | Public Float | Approximately 25,000,000 | 87.7% |
Recent Ownership Changes
In 2024, Atomera engaged in an at-the-market (ATM) offering, selling approximately 1.9 million shares at an average price of $4.74, which contributed approximately $8.5 million in net proceeds. This offering increased the public float significantly.
Stock Performance and Market Trends
As of September 30, 2024, Atomera's stock was trading at approximately $3.27, reflecting fluctuations in the semiconductor market. The company has faced challenges with recurring operating losses, which have influenced investor sentiment. In the nine months ending September 30, 2024, Atomera reported a net loss of approximately $13.8 million.
Institutional Ownership Trends
The company has seen varying levels of institutional ownership, which is crucial for stability and confidence in stock performance. As of the latest filings, the top three institutional investors held a combined 19.8% of the company’s shares, indicating strong institutional interest.
Executive Compensation and Equity Holdings
Executive compensation packages include stock options and restricted stock grants, which align their interests with shareholder performance. As of September 30, 2024, Scott Bibaud, the CEO, held 2,247 shares purchased at market value, underscoring executive confidence in the company’s future.
Conclusion on Ownership Structure
Atomera’s ownership structure is characterized by a healthy mix of institutional and retail investors, with a significant public float that allows for liquidity in trading. The company’s strategy of engaging with institutional investors has been reflected in its recent offerings and stock performance metrics.
Atomera Incorporated (ATOM) Mission Statement
Atomera Incorporated is dedicated to the development and commercialization of its proprietary technology, MST (Molecular Beam Epitaxy and Semiconductor Technology), which aims to enhance the performance of semiconductor devices. The company's mission is to enable semiconductor manufacturers to achieve better efficiency and lower costs through advanced materials and processes.
Strategic Objectives
Atomera's strategic objectives include:
- Driving innovation in semiconductor manufacturing technologies.
- Enhancing customer engagement and support through effective licensing agreements.
- Establishing partnerships with leading semiconductor companies to accelerate market adoption of MST technology.
Financial Overview
As of September 30, 2024, Atomera's financial performance reflects its ongoing investments in research and development, alongside its efforts to commercialize its technology. Key financial metrics are as follows:
| Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Revenue | $112,000 | $0 |
| Net Loss | ($13,778,000) | ($15,210,000) |
| Operating Expenses | $14,466,000 | $15,880,000 |
| Cash and Cash Equivalents | $13,757,000 | $12,642,000 |
| Working Capital | $14,400,000 | $11,000,000 |
Research and Development Focus
Atomera's research and development expenses for the nine months ended September 30, 2024, totaled approximately $8.2 million, a decrease from $9.5 million in the same period in 2023. This reduction was attributed to a decrease in outsourced research activities as the company's former service provider ceased operations.
Licensing and Revenue Generation
Atomera has initiated several licensing agreements, including a significant contract with STMicroelectronics which was executed in April 2023. This agreement allows ST to manufacture and distribute MST-enabled products, with royalties payable to Atomera upon successful commercialization of these products.
Recent Developments
In the nine months ended September 30, 2024, Atomera successfully engaged in an "at-the-market" offering, selling approximately 1.9 million shares at an average price of $4.74 per share, resulting in net proceeds of about $8.5 million. This capital infusion is crucial for sustaining its operational and developmental activities moving forward.
Market Position and Future Outlook
As of September 30, 2024, Atomera holds a competitive position in the semiconductor industry, focusing on innovative solutions that leverage its MST technology. The company remains committed to its mission of enhancing semiconductor efficiency while managing financial sustainability through strategic partnerships and capital management.
How Atomera Incorporated (ATOM) Works
Company Overview
Atomera Incorporated specializes in the development and commercialization of proprietary processes and technologies for the semiconductor industry. The company primarily focuses on its MST (Molecular Beam Epitaxy) technology, which enhances the performance of semiconductor devices.
Financial Performance
As of September 30, 2024, Atomera reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $22,000 | $0 | $112,000 | $0 |
| Cost of Revenue | ($3,000) | $0 | ($110,000) | $0 |
| Gross Margin | $19,000 | $0 | $2,000 | $0 |
| Net Loss | ($4,595,000) | ($5,039,000) | ($13,778,000) | ($15,210,000) |
| Operating Expenses | $4,819,000 | $5,353,000 | $14,466,000 | $15,880,000 |
Operating Activities
For the nine months ended September 30, 2024, Atomera's net cash used in operating activities was approximately $10.2 million, primarily due to a net loss of approximately $13.8 million, offset by stock-based compensation of approximately $2.9 million.
Research and Development (R&D)
R&D expenses for the three months ended September 30, 2024, totaled approximately $2.8 million, down from $3.3 million in the same period of 2023. For the nine months ended September 30, 2024, R&D expenses were approximately $8.2 million compared to $9.5 million in 2023.
General and Administrative Expenses
General and administrative expenses were approximately $1.8 million for Q3 2024, an increase from $1.7 million in Q3 2023. For the nine months ended September 30, 2024, these expenses totaled approximately $5.5 million compared to $5.2 million in the prior year.
Stock-Based Compensation
For the three months ended September 30, 2024, stock-based compensation was approximately $907,000, compared to $1.041 million in Q3 2023. For the nine months ended September 30, 2024, it totaled approximately $2.918 million versus $2.998 million for the same period in 2023.
Cash and Liquidity Position
As of September 30, 2024, Atomera had cash and cash equivalents of approximately $13.8 million and short-term investments of approximately $3.6 million, leading to a working capital of about $14.4 million.
Shareholder Equity
As of September 30, 2024, Atomera's total stockholders' equity was approximately $15.9 million, with an accumulated deficit of approximately $216.9 million.
Market Activity
During the nine months ended September 30, 2024, Atomera sold approximately 1.9 million shares under its at-the-market (ATM) offering at an average price of about $4.74 per share, yielding net proceeds of approximately $8.5 million.
Lease Obligations
Future minimum payments under non-cancellable leases as of September 30, 2024, are as follows:
| Year | Financing Leases | Operating Leases |
|---|---|---|
| Remaining 2024 | $297,000 | $40,000 |
| 2025 | $1,291,000 | $288,000 |
| 2026 | $478,000 | $24,000 |
| Total | $2,066,000 | $352,000 |
Conclusion
Atomera continues to focus on its R&D efforts while managing operational costs and seeking to develop revenue streams through licensing its MST technology.
How Atomera Incorporated (ATOM) Makes Money
Revenue Streams
Atomera Incorporated generates revenue through various channels, primarily including:
- Licensing agreements for its proprietary MST technology.
- Engineering services related to semiconductor manufacturing.
- Consulting services associated with its MSTcad software.
Licensing Agreements
In April 2023, Atomera entered into a significant license agreement with STMicroelectronics. This agreement allows ST to manufacture and distribute MST-enabled products. Revenue from this agreement includes:
- License fees upon reaching specific milestones.
- Royalties on all MST-enabled products once they are sold commercially.
As of September 30, 2024, revenue from licensing activities amounted to approximately $112,000 for the nine-month period ending on that date.
MSTcad Software Licensing
MSTcad licenses are granted to customers for a fee, allowing them to simulate the incorporation of MST technology into their semiconductor processes. Revenue from MSTcad licenses is recognized over time. For the three and nine months ended September 30, 2024, revenue from MSTcad licensing was approximately:
| Period | Revenue |
|---|---|
| Three Months | $22,000 |
| Nine Months | $112,000 |
Revenue from MSTcad licensing and engineering services reflects a new revenue stream for Atomera, which had not generated revenue from these activities in the previous year.
Engineering Services
Atomera provides engineering services related to the delivery of MST wafers as part of its integration license agreements. The costs associated with these services are categorized as cost of revenue, which for the nine months ended September 30, 2024, was approximately $110,000.
Operating Expenses
Operating expenses for Atomera consist of research and development, general and administrative, and selling and marketing expenses. For the nine months ended September 30, 2024, total operating expenses were approximately:
| Expense Type | Amount |
|---|---|
| Research and Development | $8.2 million |
| General and Administrative | $5.5 million |
| Selling and Marketing | $805,000 |
| Total Operating Expenses | $14.5 million |
This reflects a decrease from $15.9 million in the same period of the previous year.
Net Loss and Cash Flow
For the nine months ended September 30, 2024, Atomera reported a net loss of approximately $13.8 million, compared to a net loss of $15.2 million for the same period in 2023. The company's cash and cash equivalents as of September 30, 2024, totaled approximately $13.8 million, with working capital of approximately $14.4 million.
Financing Activities
Atomera has utilized an "at-the-market" (ATM) offering to raise capital. For the nine months ended September 30, 2024, the company raised approximately $8.5 million through the sale of approximately 1.9 million shares at an average price of $4.74 per share.
Future Revenue Potential
Atomera's future revenue potential is tied to the successful commercialization of its MST technology. The company anticipates earning additional license fees and royalties as its partners, such as STMicroelectronics, progress through their manufacturing and qualification processes.
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Article updated on 8 Nov 2024
Resources:
- Atomera Incorporated (ATOM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Atomera Incorporated (ATOM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Atomera Incorporated (ATOM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.