[Executive Summary & Recent Developments](index=1&type=section&id=Executive%20Summary%20%26%20Recent%20Developments) This section presents Atomera's Q2 2025 financial results, management commentary, recent highlights, and non-GAAP financial measure explanations [Company Overview & Q2 2025 Announcement](index=1&type=section&id=Atomera%20Provides%20Second%20Quarter%202025%20Results) Atomera Incorporated, a semiconductor materials and technology licensing company, announced its financial results and provided a corporate update for the second quarter ended June 30, 2025 - Atomera Incorporated is a semiconductor materials and technology licensing company[2](index=2&type=chunk) - The company announced financial results for the second quarter ended June 30, 2025[2](index=2&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) President and CEO Scott Bibaud noted growing interest from potential customers and significant customer wafer run activity across multiple technologies, expressing confidence in future commercial agreements - Management is seeing **growing interest** from potential customers[3](index=3&type=chunk) - Atomera is experiencing **heavy customer wafer run activity** across multiple technologies, expected to lead to future commercial agreements[3](index=3&type=chunk) [Recent Company Highlights](index=1&type=section&id=Recent%20Company%20Highlights) Atomera announced a strategic collaboration with Incize for GaN-on-Si technology, joined the National Semiconductor Technology Center, and reached 400 issued and pending patents - Announced a strategic collaboration with Incize to advance GaN-on-Si technology for next-gen RF and power devices[7](index=7&type=chunk) - Joined National Semiconductor Technology Center to accelerate U.S. chip innovation[7](index=7&type=chunk) - Reached **400 issued and pending patents** in its intellectual property portfolio[7](index=7&type=chunk) [Financial Highlights (Q2 2025 Summary)](index=1&type=section&id=Financial%20Results) Atomera reported an increased net loss and Adjusted EBITDA loss in Q2 2025 compared to Q2 2024, with a decrease in cash and cash equivalents since year-end 2024 | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :---------- | :---------- | :----------- | | Net Loss | ($5.0) million | ($4.4) million | ($0.6) million increase | | Net Loss per Share | ($0.17) | ($0.16) | ($0.01) increase | | Adjusted EBITDA Loss | ($4.0) million | ($3.6) million | ($0.4) million increase | | Cash & Cash Equivalents (as of period end) | $22.0 million (June 30, 2025) | $25.8 million (Dec 31, 2024) | ($3.8) million decrease | | Shares Outstanding (as of period end) | 31.1 million (June 30, 2025) | N/A | N/A | [Non-GAAP Financial Measures Explanation](index=1&type=section&id=Note%20about%20Non-GAAP%20Financial%20Measures) Atomera presents Adjusted EBITDA as a non-GAAP financial measure, calculated by adjusting net loss for interest, depreciation, amortization, and stock-based compensation, to provide a more focused view of operating results - Adjusted EBITDA is a non-GAAP financial measure derived from net loss by eliminating interest, depreciation, amortization, and stock-based compensation[6](index=6&type=chunk) - This metric is used internally to evaluate operations and management performance and is believed to provide useful information to investors[6](index=6&type=chunk) [Q2 2025 Results Webinar](index=1&type=section&id=Second%20Quarter%202025%20Results%20Webinar) Atomera hosted a live video webinar on August 5, 2025, to discuss its Q2 2025 financial results and recent progress - A live video webinar was hosted on August 5, 2025, at 2:00 p.m. PT (5:00 p.m. ET)[6](index=6&type=chunk) - The webcast was accessible at https://ir.atomera.com[6](index=6&type=chunk) [About Atomera Incorporated](index=2&type=section&id=About%20Atomera%20Incorporated) This section details Atomera's business as a semiconductor materials and technology licensing company and includes a safe harbor statement for forward-looking information [Company Description](index=2&type=section&id=About%20Atomera%20Incorporated_Description) Atomera Incorporated is a semiconductor materials and technology licensing company focused on its proprietary Mears Silicon Technology™ (MST), which enhances performance and power efficiency in semiconductor transistors and is compatible with existing manufacturing equipment - Atomera is a semiconductor materials and technology licensing company focused on deploying its proprietary, silicon-proven technology[8](index=8&type=chunk) - The company developed Mears Silicon Technology™ (MST), which increases performance and power efficiency in semiconductor transistors[8](index=8&type=chunk) - MST can be implemented using equipment already deployed in semiconductor manufacturing facilities and is complementary to other nano-scaling technologies[8](index=8&type=chunk) [Safe Harbor Statement](index=2&type=section&id=Safe%20Harbor) The press release contains forward-looking statements subject to known and unknown risks, including those related to revenue generation, successful completion of joint development agreements, licensing advancements, capital raising, and intellectual property protection - Forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially[9](index=9&type=chunk) - Key risks include minimal recognized revenues, uncertainty of STMicroelectronics qualification, ability to complete joint development agreements, advance licensing arrangements, raise sufficient capital, and protect proprietary technology[9](index=9&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Tables) This section provides Atomera's condensed balance sheets, statements of operations, and a reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA [Condensed Balance Sheets](index=3&type=section&id=Condensed%20Balance%20Sheets) As of June 30, 2025, Atomera reported a decrease in cash and cash equivalents and total assets compared to December 31, 2024, while total liabilities also decreased | Metric (in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :------------- | :---------------- | | Cash and cash equivalents | $22,026 | $24,123 | $25,778 | | Total current assets | $22,748 | $24,539 | $27,092 | | Total assets | $24,084 | $26,252 | $29,124 | | Total current liabilities | $2,793 | $2,856 | $3,576 | | Total liabilities | $2,793 | $2,969 | $4,047 | | Total stockholders' equity | $21,291 | $23,283 | $25,077 | [Condensed Statements of Operations](index=4&type=section&id=Condensed%20Statements%20of%20Operations) For Q2 2025, Atomera reported no revenue, a net loss of ($5.0) million, and a net loss per share of ($0.17), with increased R&D and G&A expenses compared to Q2 2024 | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $0 | $72 | $4 | $90 | | Gross margin | ($62) | ($2) | ($58) | ($17) | | Research and development | $3,004 | $2,589 | $6,259 | $5,447 | | General and administrative | $2,048 | $1,832 | $4,136 | $3,643 | | Selling and marketing | $141 | $207 | $265 | $557 | | Total operating expenses | $5,193 | $4,628 | $10,660 | $9,647 | | Loss from operations | ($5,255) | ($4,630) | ($10,718) | ($9,664) | | Net loss | ($4,967) | ($4,361) | ($10,176) | ($9,183) | | Net loss per common share, basic and diluted | ($0.17) | ($0.16) | ($0.34) | ($0.35) | [Reconciliation to Non-GAAP EBITDA](index=5&type=section&id=Reconciliation%20to%20Non-GAAP%20EBITDA) Atomera's Adjusted EBITDA loss for Q2 2025 was ($4.0) million, an increase from ($3.6) million in Q2 2024, reflecting the adjustments made to GAAP net loss | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss (GAAP) | ($4,967) | ($4,361) | ($10,176) | ($9,183) | | Depreciation and amortization | $12 | $13 | $24 | $30 | | Stock-based compensation | $1,278 | $987 | $2,287 | $2,011 | | Interest income | ($234) | ($185) | ($504) | ($390) | | Accretion income | $0 | ($47) | ($6) | ($93) | | Interest expense | $18 | $35 | $39 | $74 | | Other income, net | ($72) | ($72) | ($71) | ($72) | | Net loss non-GAAP EBITDA | ($3,965) | ($3,630) | ($8,407) | ($7,623) | [Additional Information](index=5&type=section&id=Additional%20Information) This section provides contact information for investor relations inquiries [Investor Relations Contact](index=5&type=section&id=Investor%20Contact) Investor inquiries can be directed to Mike Bishop at Bishop IR - Investor Contact: Bishop IR, Mike Bishop, (415) 894-9633, investor@atomera.com[17](index=17&type=chunk)

Core Viewpoint - Atomic Minerals Corporation is proceeding with a share consolidation of one post-consolidation common share for every two pre-consolidation common shares, effective August 7, 2025, to enhance capital-raising flexibility and attract a broader investor base [1][2][4]. Share Consolidation Details - The new ISIN and CUSIP for the shares will be CA04965P3079 and 04965P307 respectively [2]. - Currently, there are 58,331,591 common shares issued and outstanding, which will reduce to approximately 29,165,795 shares post-consolidation. Fractional shares will be rounded up or cancelled based on specific thresholds [3]. Strategic Rationale - The Board believes that the consolidation will provide increased flexibility to seek additional capital under current market conditions and is in the best interests of shareholders, potentially leading to greater interest from a wider audience of investors [4]. Debt Settlement Plan - The company plans to issue up to 7,000,000 common shares at a price of $0.05 each on a post-consolidated basis to settle debts totaling up to $350,000, pending necessary regulatory approvals [6]. Company Overview - Atomic Minerals Corporation is a publicly listed exploration company on the TSX Venture Exchange, focusing on identifying exploration opportunities in underexplored regions with geological similarities to past uranium discoveries [7]. - The company holds uranium projects with significant technical merit in two locations, including three projects on the Colorado Plateau and properties in the Athabasca region of Saskatchewan and Quebec, Canada [8].

Core Viewpoint - Atomic Minerals Corporation is recommending a consolidation of its common shares at a ratio of two pre-consolidated shares for one new post-consolidated share to enhance flexibility and position the company for long-term growth [1][4]. Share Consolidation - The company currently has 58,331,591 common shares issued and outstanding, which will reduce to approximately 29,165,795 shares post-consolidation [2]. - The company's name and stock symbol will remain unchanged, but the CUSIP and ISIN numbers will be updated. Fractional shares will be rounded up or cancelled based on specific thresholds [2]. Debt Settlement - The company plans to settle up to $350,000 of outstanding debts by issuing up to 7,000,000 common shares at a price of $0.05 per share on a post-consolidated basis [3]. - After the consolidation and debt settlement, the total number of common shares is expected to be approximately 36,165,795 [3]. Company Strategy - The CEO of Atomic Minerals Corporation emphasized the importance of share consolidation in negotiating favorable terms for potential acquisitions and funding for future projects [4]. - The company is focused on exploring underappreciated regions with geological similarities to areas with previous uranium discoveries, aiming to capitalize on these opportunities [5][6].

Core Viewpoint - Atomic Minerals Corporation has received TSX Venture Exchange approval to finalize a share exchange agreement for acquiring uranium properties in Quebec and Saskatchewan, which aligns with the company's strategy to enhance its uranium portfolio amid rising uranium prices [1][2]. Group 1: Acquisition Details - The company has entered into a share exchange agreement with Stratigraphic Capital Corp., acquiring 40 mineral concessions covering 2,351 hectares in Quebec's Mont-Laurier Uranium Property [1][3]. - As part of the transaction, Atomic Minerals issued 8,000,000 common shares at a deemed price of $0.015 per share, totaling $120,000, with a resale restriction of six months [4][5]. - The Saskatchewan Property consists of two mineral claims totaling approximately 5,355 hectares, with the company acquiring a 100% interest through an option agreement [6][8]. Group 2: Exploration Potential - The Mont-Laurier Uranium Property is located in a historically significant radioactive district, with previous exploration indicating low-grade uranium mineralization [3][7]. - The company plans to finalize exploration plans for both the Mont-Laurier and Saskatchewan properties, with activities expected to commence shortly [7]. Group 3: Financial Considerations - For the Saskatchewan Property option, Atomic Minerals issued 5,500,000 common shares at a deemed price of $0.015 per share, amounting to $82,500, and intends to pay an additional $50,000 in cash within three years [8][9]. - The company also has the option to purchase a 3% net smelter return royalty by issuing an additional 5,500,000 shares, subject to TSXV acceptance [9]. Group 4: Company Overview - Atomic Minerals Corporation is a publicly listed exploration company on the TSXV, focusing on identifying uranium exploration opportunities in underexplored regions with geological similarities to known uranium deposits [11][12]. - The company's portfolio includes uranium projects in three North American locations, with a historical production of 597 million pounds of U3O8 in the Colorado Plateau and additional projects in the Athabasca Basin [12].

Core Viewpoint - Atomic Minerals Corporation has entered into a share exchange agreement to acquire Stratigraphic Capital Corp, which owns the Mont-Laurier Uranium Property in Quebec, comprising 2,351 hectares, at a time when uranium prices are appreciating [1][2]. Company Overview - Atomic Minerals Corporation is a publicly listed exploration company on the TSX Venture Exchange under the symbol ATOM, focusing on identifying exploration opportunities in underexplored regions with geological similarities to areas with previous uranium discoveries [14][15]. - The company is led by a skilled management and technical team with a proven track record in the junior mining sector [14]. Acquisition Details - The agreement involves Atomic Minerals issuing 8,000,000 common shares at a deemed price of $0.02 per share, totaling an aggregate consideration of $160,000 [12]. - The shares are subject to a resale restriction of six months, with 50% released immediately upon closing and the remaining 50% released six months thereafter [12][13]. Mont-Laurier Uranium Property - The Mont-Laurier Uranium Property is located approximately 40 kilometers northeast of Mont-Laurier in Quebec and lies within a historically significant radioactive district [3]. - Historical exploration in the area has outlined several zones of low-grade uranium mineralization, with notable estimates including 0.52 million tonnes at 0.054% U3O8 from the Meekos zone [3][7]. - The historical estimates are considered inferred resources under NI 43-101, and verification through further drilling is required to classify them as current mineral resources [4]. Exploration Potential - The acquisition is seen as a strategic move to enhance Atomic Minerals' position as an industry leader, particularly given the recent rise in uranium prices [2]. - The company believes the Mont-Laurier project has significant exploration potential, supported by historical estimates and geological assessments [2][4].

Revenue Performance - Revenue for the three months ended March 31, 2025, was approximately $4,000, a decrease from $18,000 in the same period of 2024[68] Operating Expenses - Operating expenses for the three months ended March 31, 2025, totaled approximately $5.5 million, compared to $5.0 million for the same period in 2024, representing an increase of 10%[70] - Research and development expenses increased by approximately $397,000, or 14%, to approximately $3.3 million for the three months ended March 31, 2025, compared to $2.9 million in 2024[72] - General and administrative expenses rose by approximately $277,000, or 15%, to approximately $2.1 million for the three months ended March 31, 2025, from $1.8 million in 2024[73] - Selling and marketing expenses decreased by approximately $226,000, or 65%, to approximately $124,000 for the three months ended March 31, 2025, compared to $350,000 in 2024[74] Cash Flow and Financial Position - Net cash used in operating activities was approximately $4.8 million for the three months ended March 31, 2025, primarily due to a net loss of approximately $5.2 million[78] - As of March 31, 2025, the company had cash and cash equivalents of approximately $24.1 million and working capital of approximately $21.7 million[82] - The company sold approximately 164,000 shares of common stock at an average price of approximately $15.19, resulting in approximately $2.4 million of net proceeds during the three months ended March 31, 2025[83] - The company anticipates that its available working capital is sufficient to fund its forecasted working capital requirements for at least the next 12 months[84] Licensing Agreement - The license agreement with ST Microelectronics executed in April 2023 is expected to generate royalties on all MST-enabled products manufactured for commercial purposes[67]

Company Overview - Atomera focuses on Mears Silicon Technology (MST®) for transistor enhancement in the $600 billion semiconductor market[6] - The company operates a high-leverage IP licensing business model with a strong patent portfolio[6] - Atomera has a strategic marketing agreement with a major semiconductor equipment maker focused on Gate-All-Around transistors[7, 10] Customer Engagement - Atomera is engaged with 21 customers across 26 engagements, including more than half of the world's top semiconductor makers[17] - At least 10 of the top 20 semiconductor sales leaders with fabs are Atomera's customers[15] - Customer engagements are categorized into phases from planning to production[12] Technology & Applications - MST technology is focused on advanced nodes, RF-SOI, Power (SP, SPX), and DRAM[11] - Atomera is developing MST for GaN/Si, providing modified Si substrates incorporating MST layers[18, 20] - Preliminary electrical data for GaN/Si indicates fewer defects, lower leakage, and higher breakdown voltage[20] Financial Performance - Revenue for the three months ended March 31, 2025, was $4 thousand, compared to $18 thousand for the three months ended March 31, 2024[21] - Operating loss for the three months ended March 31, 2025, was $(5,463) thousand, compared to $(5,034) thousand for the three months ended March 31, 2024[21] - Cash, equivalents, and short-term investments were $24,123 thousand as of March 31, 2025[21]

Financial Data and Key Metrics Changes - The GAAP net loss for Q1 2025 was $5.2 million or $0.17 per share, compared to a net loss of $4.8 million or $0.19 per share in Q1 2024 [21] - GAAP operating expenses in Q1 2025 were $5.5 million, an increase of $448,000 from $5 million in Q1 2024 [21][22] - Non-GAAP net loss in Q1 2025 was $4.4 million compared to a loss of $4 million in Q1 2024 [22] - Cash, cash equivalents, and short-term investments as of March 31, 2025, were $24.1 million, down from $26.8 million on December 31, 2024 [24] Business Line Data and Key Metrics Changes - The partnership with a major capital equipment provider aims to enhance the development and production of advanced material solutions, particularly in gate-all-around technology [4][5] - Significant progress has been made in gate-all-around applications, generating detailed silicon-validated performance enhancement data for customers [9] - New patents focused on DRAM sense amplifiers have been granted, relevant for both high bandwidth and standard DDR memories [9] Market Data and Key Metrics Changes - The epi equipment market is expected to reach approximately $2.6 billion by 2027, with a CAGR of 10% to 15% in leading-edge nodes [9] - The market for gallium nitride (GaN) applications is forecasted to exceed $2 billion at the device level by the end of the decade, growing at about a 40% CAGR [17] Company Strategy and Development Direction - The company is focused on expanding its technology licensing business within the semiconductor industry, particularly in areas related to AI infrastructure and advanced semiconductor applications [20] - The partnership with the capital equipment provider is expected to accelerate the closing of license deals and enhance the company's market position [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning to deliver solutions for challenging electronic devices, emphasizing the importance of technology and relationships with large semiconductor companies [26] - The company is actively recruiting for its engineering and sales teams to support the transition to high-volume production and to close deals [20] Other Important Information - The company raised $2.4 million under its ATM facility by selling approximately 163,000 shares at an average price of $15.19 [24] - Non-GAAP operating expenses for 2025 are expected to be in the range of $17.25 million to $17.75 million [25] Q&A Session Summary Question: Can you provide details about the partnership with the capital equipment provider? - The partnership involves a long-term relationship with a major equipment provider, focusing on gate-all-around technology and leveraging their capabilities for testing and production [30][34] Question: What is the focus of the work with STMicro? - The work with STMicro is focused on optimizing manufacturability, yield, and throughput in preparation for high-volume manufacturing, with discussions ongoing in multiple product areas [12][40] Question: What is the status of the transformative customers mentioned in previous calls? - Discussions with transformative customers are ongoing, with one customer moving faster than expected and showing significant interest in expanding the scope of work [51][70] Question: What are the implications of the restated employment agreement? - The restated agreement aimed to correct a mistake regarding severance upon change of control, with no significant implications beyond that [66] Question: How are the electrical results from Sandia Lab? - The electrical results show improved device performance, consistent with previous observations of material quality improvements [72]

Financial Data and Key Metrics Changes - The GAAP net loss for Q1 2025 was $5.2 million or 17¢ per share, compared to a net loss of $4.8 million or 19¢ per share in Q1 2024 [21] - GAAP operating expenses in Q1 2025 were $5.5 million, an increase of $448,000 from $5 million in Q1 2024 [21] - Non-GAAP net loss in Q1 2025 was $4.4 million compared to a loss of $4 million in Q1 2024 [22] Business Line Data and Key Metrics Changes - The increase in operating expenses was attributed to a $397,000 rise in R&D expenses and a $277,000 increase in G&A expenses, partially offset by a $226,000 decline in sales and marketing expenses [22] - The company is actively working on multiple technology areas, including gate all around applications and memory technologies, with significant progress reported in customer engagements [10][14] Market Data and Key Metrics Changes - The EPI equipment market is expected to reach approximately $2.6 billion by 2027, with a CAGR of 10% to 15% in leading-edge nodes [10] - The market for gallium nitride (GaN) applications is forecasted to exceed $2 billion at the device level by the end of the decade, growing at about a 40% CAGR [17] Company Strategy and Development Direction - The company has announced a partnership with a major capital equipment provider to enhance its technology offerings and accelerate customer engagements [4][9] - The focus on advanced node customers and the collaboration with the equipment provider aims to optimize production processes and improve customer solutions [5][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning to deliver solutions for challenging electronic devices, emphasizing the importance of technology licensing within the semiconductor industry [20] - The company is actively recruiting to expand its engineering and sales teams to support growth and high-volume production [20] Other Important Information - The company raised $2.4 million under its ATM facility by selling approximately 163,000 shares at an average price of $15.19, maintaining a comfortable cash position [23] - Non-GAAP operating expenses for 2025 are expected to be in the range of $17.25 million to $17.75 million [25] Q&A Session Summary Question: Details on the partnership with the capital equipment company - The partnership involves extensive collaboration on technology development and production, with the partner providing significant resources and capabilities [32] Question: Focus of the partnership - The work is primarily focused on gate all around technologies, applicable to both logic and memory sectors [33] Question: Updates on STMicro collaboration - The company is engaged in discussions with multiple groups within STMicro, indicating strong credibility and interest in various technology areas [36][38] Question: Progress with RF SOI customers - There is increased interest in improving low noise amplifiers (LNAs) due to changing specifications from mobile phone manufacturers [43] Question: Status of transformative customers - Discussions with transformative customers are ongoing, with positive momentum and interest in expanding collaboration [49] Question: Financial outlook and operating expenses - Non-GAAP operating expenses for 2025 are projected to be around $17.25 million to $17.75 million, with a gradual ramp-up expected [54]

Financial Performance - The company reported a net loss of $5.2 million, or $0.17 per share, for Q1 2025, compared to a net loss of $4.8 million, or $0.19 per share, in Q1 2024[4] - Adjusted EBITDA for Q1 2025 was a loss of $4.4 million, compared to a loss of $4.0 million in Q1 2024[4] - Total revenue for Q1 2025 was $4,000, compared to $18,000 in Q1 2024, reflecting a significant decrease[16] - Operating expenses increased to $5.5 million in Q1 2025 from $5.0 million in Q1 2024, primarily driven by R&D and administrative costs[16] - The accumulated deficit as of March 31, 2025, was $226.7 million, up from $221.5 million at the end of 2024[14] Cash Position - Cash and cash equivalents decreased to $24.1 million as of March 31, 2025, down from $26.8 million as of December 31, 2024[5] - The total number of shares outstanding was 30.7 million as of March 31, 2025[6] Strategic Initiatives - The company signed a strategic marketing agreement with a leading chip fabrication equipment vendor to enhance deal execution and drive license revenues[3] - The company expanded engagements with STMicroelectronics and RF SOI customers to new applications, indicating growth opportunities[8] - The company built its first MST-enabled GaN devices at Sandia and began electrical testing, showcasing advancements in technology[8]