Q3 2023 Atomera Inc Earnings Call

November 1, 2023

We'll begin in just one moment.

Okay.

Hello, everyone and welcome to <unk> third quarter fiscal year 2023 update call.

And welcome to <unk> third quarter fiscal year 2023 update call.

I'd like to remind everyone that this call and webinar or being recorded with and a replay will be available on Adam Air's website for one year, Unlike bishop with the company's Investor Relations.

To remind everyone that this call and webinar are being recorded and a replay will be available on <unk> website for one year I'm, Mike Bishop with the company's Investor Relations at <unk>.

As in prior quarters, we're using zoom and we will follow a similar presentation format with participants participants in a listen only mode. We will open with prepared remarks from Scott vivo animators, President and CEO and Frank Lorenzo Adam Here. CFO, then we will open the call to questions. If you are joining by telephone you may follow a slide presentation to accompany our.

In prior quarters, we're using them and we will follow a similar presentation format with participating participants in a listen only mode.

We will open with prepared remarks from Scott vivo advantaged, President and CEO and Frank Laryngeal, Adam as CFO.

We will open the call to questions.

You are joining by telephone you may follow a slide presentation to accompany our remarks.

Remarks on the events and presentations section of our Investor Relations page on our website.

The events and presentations section of our Investor Relations page on our website.

Before we begin I would like to remind everyone that during today's call. We will make forward looking statements. These forward looking statements whether in prepared remarks or during the Q&A session are subject to inherent risks and uncertainties. These risks and uncertainties are detailed in the risk factors section of our filings with the series Securities and Exchange Commission, specifically in the company's anti.

Before we begin I would like to remind everyone that during today's call. We will make forward looking statements. These forward looking statements whether in prepared remarks or during the Q&A session are subject to inherent risks and uncertainties. These risks and uncertainties are detailed in the risk factors section of our filings with the Street Securities and Exchange Commission, specifically the company's annual.

Our report on Form 10-K filed with the SEC on February 15th 2023, and its quarterly report on Form 10-Q filed today with the SEC.

Bored at Form 10-K filed with the SEC on February 15, 2023, and its quarterly report on Form 10-Q filed today with the SEC.

Except as otherwise required by federal Securities laws at Amira disclaims any obligation to update or make revisions to such forward looking statements contained herein or elsewhere to reflect changes and expectations with regards to those events conditions and circumstances.

Except as otherwise required by federal Securities laws, Adama disclaims any obligation to update or make revisions to such forward looking statements contained herein or elsewhere to reflect changes and expectations with regards to those events conditions and circumstances.

Also please note that during this call we will be discussing non-GAAP financial measures as defined by SEC regulation G. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in today's press release, which is also posted on our website.

Included in today's press release, which is also posted on our website.

Now I would like to turn the call over to our President and CEO Scott BMO go ahead Scott.

Yes.

Good afternoon, everyone and welcome to <unk> third quarter 2023 update call.

Good afternoon, everyone and welcome to Adam Erez third quarter 2023 update call.

During this past quarter, we've made great progress on a number of different fronts, both in customer and technology areas and I'd like to bring you up to date on some of those activities.

Our standard customer pipeline does not do justice to how active we've been with customers over the last three months at.

Our standard customer pipeline does not do justice to how active we've bandwidth customers over the last three months at.

It seems that our business development. Our technology teams are on the road almost every week to service growing number of opportunities and applications that MST can address.

It seems that our business development. Our technology teams are on the road almost every week to serviced growing number of opportunities and applications that MST can address.

Much of that is happening with our phase III customers. So it's hard to show the progress on this chart, but I'll give you more details as we go along.

<unk> of that is happening with our phase III customers. So it's hard to show the progress on this chart, but I'll give you more details as we go along.

One thing we had hoped to show on today's call is that our phase four customers had grown by one to reflect the installation of MST on a tool in MST in St's factory.

One thing we had hoped it show on today's call is that our phase four customers had grown by one to reflect the installation of MST on a tool in MST in St's factory.

Unfortunately up to today it has not happened, but we do expect it to happen very soon and have been working diligently with S. T on other parts of the development process.

In past calls Ive discussed the path to production with S T, but I'd like to expand on the details here since.

Since completion of the license agreement in April as TS Engineering team with some assistance from US has been developing their new manufacturing process, which will include M. S T.

Since completion of a license agreement in April St's engineering team with some assistance from US has been developing their new manufacturing process, which will include MST.

This effort is primarily happening via computer simulations and our MST CAD isn't an indispensable component of that effort.

This effort is primarily happening via computer simulations and our MST cat is an indispensable component of that effort.

After the installation of MST onto their Effie tools S. T will build wafers using MST and test the results, which is called silicon validation.

After the installation of MSG onto their Effie tools S. T will build wafers using MST and test the results, which is called silicon validation.

Using this methodology S. T will create a fully optimized manufacturing method and when it is complete they will freeze it creating a process development kit or PDK.

From that point forward when a new chip design is started by an S. T development engineer the chip will be based on the transistor characteristics provided in the new PDK, which will include M. S T.

Wafer level qualification, which is the process of finalizing their manufacturing slow across corner conditions to ensure it meet specifications will be happening in parallel with St's, new chip designs when.

Wafer level qualification, which is the process of finalizing their manufacturing slow across corner conditions to ensure it meets specifications will be happening in parallel with S. T. A new chip designs when.

When process qualification is complete any finalized chip designs will enter production and start generating royalties.

All their subsequent chip designs will be based on this new PDK and will add to the royalty stream. So the revenue potential with just continued to grow.

As we've spoken up of about before it's difficult for us to forecast the volume of these designs because they will be executed for many different applications and market sectors.

As we've spoken out of about before it's difficult for us to forecast the volume of these designs because they will be executed for many different applications and market sectors.

When we first announced this transaction we estimated S. T would go to commercialization in a year and a half to two years, despite the longer than anticipated time to complete equipment modifications.

We still believe that timing holds true.

We still believe that hot timing holds true.

It is important to recognize the significance of this milestone to our company. It validates not only our technology, but also our business model and we are as impatient to see it completed as I'm sure you are.

It is important to recognize the significance of this milestone to our company. It validates not only our technology, but also our business model and we are as impatient to see are completed as I'm sure you are.

Now that we've covered S. T. Let me provide updates on other customers.

I am pleased to report that experiments with R. J D. A one customer have shown excellent technical results that we believe solve a significant problem they are facing.

The specific issues, we have been we have addressed our targeted at one of their largest be use at this point our focus has shifted defining our business solution that will work well for both of us, but given the strength of our technical offering I am confident we will find the commercial structure for them to adopt MST.

The specific issues, we have been we have addressed our targeted at one of their largest be use at this point our focus has shifted defining a business solution that will work well for both of us, but given the strength of our technical offering I am confident we will find a commercial structure for them to adopt M. S T like.

Likewise with our J D. A to customer recent silicon test results combined with MSG CAD simulations have led us to start a new round of experiments to hopefully reach a performance level triggering the license agreements contemplated as part of the J D a package.

Likewise with our J D. A to customer recent silicon test results combined with M. S. T. CAD simulations have led us to start a new round of experiments to hopefully reach a performance level triggering the license agreements contemplated as part of the J D a package.

It will take several months for those results to come out, but we hope with a lower level of fab utilization in the industry is experiencing these days, we will get fast throughput.

We are also seeing interest in our higher voltage technology offerings, MST SP and SPX. There is no doubt that our S. T license announcement has stimulated interest in these technologies across the industry.

Recently, our MST CAD was adopted by a very large analog and power manufacturer, which we believe is an excellent first step towards licensing our overall MST technology to them for production.

Recently, our M. S. T. CAD was adopted by a very large analog and power manufacturer, which we believe is an excellent first step towards licensing our overall MST technology to them for production. We continue to see good momentum for both M. S. E. S. P N S T X.

We continue to see good momentum for both MST SP and SPX.

More good news in the RF Department.

Our MST solution for RF Soi has been evolving over the last year due to new MST film formulations and integration techniques, which we have demonstrated to customers using simulations from MST cat.

During the last three months, we've gotten new silicon test results that validate the improvements predicted by MST CAD improvements that are not possible without M. S T and a badly needed by designers of RF front ends for cellular products.

During the last three months, we've gotten new silicon test results that validate the improvements predicted by MST CAD improvements that are not possible without MST and a badly needed by designers of RF front ends for cellular products.

We believe this solution will be something that all RF soi designers will want to use once they understand the benefits and we're confident of this because the first few customers easily explained it to have been quite excited to get started.

We believe this solution will be something that all RF soi designers will want to use once they understand the benefits and we're confident of this because the first few customers. We've explained it to have been quite excited to get started.

I'm hopeful this will lead to several new licenses and partnerships in the future.

Scott Bibaud: [inaudible] on the board of lead up to today, it has not happened but we do expect it to happen very soon and we're dealing with the F.E, on all the parts of the development process. In the past, all of us have the past production of the F.E, but I'd like to stand on the lead up here. Since the collegial length of the group in the NA world and the F.E. This effort is primarily happening by computers and regulations and an F.E, had an indispensable component of that effort.

Similarly in the advanced nodes market, our offering has gotten significantly stronger in the last three months the key to advancing in this market is through ecosystems and partnerships since the technology is so complex and expensive to prove out in silicon.

We are working to establish a nurture those types of relationships today, two weeks ago, We announced that Adam Air was part of the southwest advanced prototyping hub led by Arizona State University, which has recently received funding through the chips and Sciences Act.

Which has recently received funding through the chips and Sciences Act.

Adam era helped to drive for establishment of this hub because we believe that America needs an ecosystem of the most advanced development teams, who can work together to redefine what's possible in the semiconductor industry.

This has always been Adam Aron focus and we are gratified at the greater spotlight and resources that this funding will bring and as a smaller company will gain great leverage from this partnership.

Resources that this funding will bring and as a smaller company, we will gain great leverage from this partnership.

We have no doubt that being part of this new ecosystem will assist us in implementing our technology at the biggest semiconductor makers, who are interested in investing in advanced nodes today.

Finally, you may have noticed that we added a new segment into our technology focus areas MST for DRAM.

During this past quarter, we published a comprehensive white paper on our website, giving some details of the physics around how MST can be combined with sense Amp circuit designs to make DRAM devices smaller and lower power.

In short MST will be able to bring improvements to DRAM devices that are on a scale with the benefits we are bringing to our other technology focused segments.

This memory work as Adam Era's first direct foray into technologies that will enable the artificial intelligence revolution.

This memory work as <unk> first direct foray into technologies that will enable the artificial intelligence revolution.

It is clear that a I use is far more memory than traditional processors.

Which means the cost and power savings at American bring to these devices will be critical.

Further because AI access as memory and different ways, it demands different latency and bandwidth.

Further because AI accesses memory and different ways, it demands different latency and bandwidth.

All of which are going to drive big changes in the memory requirements of the future.

Adam era intends to be a leading innovator in this space to take advantage of the opportunity that AI will provide for growth in the semiconductor market.

As you can see from the wide set of exciting customer engagements our business scope is expanding along with our potential.

I do believe that the S. T announcement has helped us get over our hurdle with many customers, which helps to explain this momentum but more importantly, it is due to the efforts of our brilliant team of engineers and scientists who are constantly bringing cutting edge solutions the semiconductor industry.

Inside at Emera, we are very optimistic about the bright future. Our company has in front of us and we hope to prove that by announcing more license and production deals in the near future.

Inside out of Merit, we are very optimistic about the bright future. Our company has in front of us and we hope to prove that by announcing more license and production deals in the near future.

Frank will now review our financials.

Thank you Scott.

At the close of the market today, we issued a press release announcing our results for the third quarter of 2023.

This slide shows our summary financials.

Scott Bibaud: After the installation of F.E, on their F.E, tools, F.E, will build way for using F.E, and Tethore dolls, which is called silicon valuation. In the vivid methodology, F.E, will create a fully optimized manufacturing method. And when it is complete, they will free the creating a process development kit or a P.E.K. From that point forward, when a new digit design is hired by an F.E. Development Manager, the chip will be based on the terms of characteristics provided in the new P.E.K, which will include in F.E.

Our GAAP net loss for the three months ended September 30th 2023 was $5 million or <unk> 20 per share compared to a net loss of $4.6 million, which was also 20 cents per share in the third quarter of 2022.

Our GAAP net loss for the three months ended September 30th 2023 was $5 million or <unk> 20 per share compared to a net loss of $4 $6 million, which was also 20 cents per share in the third quarter of 2022.

In Q2 of 2023, our GAAP net loss was $5 $2 million or 21 cents per share.

GAAP operating expenses were $5 $4 million in Q3, 2023, which was an increase of approximately $696000 from four point $70 million in Q2 2022.

GAAP operating expenses were $5 $4 million in Q3, 2023, which was an increase of approximately $696000 from $4 $70 million in Q2 2022.

Scott Bibaud: Way for a global qualification, which is the process of the finalizing and manufacturing flow, across partner divisions, ensuring each set of occasions will be having in parallel with F.E, new chip designs. When the process is well engaged and complete, any finalized chip designs will have an introduction and start generating royalties. All of this up to chip designs will be based on the new P.E.K, and will add to the royalty dream, so the very new panel will just continue to grow.

The biggest driver of the year on year operating expense increase was a $562000 increase in R&D expenses.

287000 of which was due to higher prices for wafer processing and engineering services at our contract foundry Tsi semiconductors.

General and administrative expenses increased by approximately $116000 and sales and marketing increased by less than $20000.

Scott Bibaud: As you've spoken out about before, it is difficult for us to forecast the volume of these designs, because they will be executed for many different applications and in market sectors. When we further denounce this transaction, we estimate that F.E, will go to commercialization in a year and a half to two years. Despite the longer than anticipated time to complete equipment and modifications, we still believe that hot timing holds true.

Other income net in Q3 2023 increased by $261000 as compared to Q2, 2022, mainly reflecting higher interest income on in Arizona from an Arizona Refundable R&D tax credit.

Sequentially, our GAAP operating expenses were flat at $5 $4 million in both Q3 and Q2 2023.

Scott Bibaud: It is important to recognize the significance of this milestone for our company. It validates not only our technology, but also our business model. And we are in the page to see if you completed it as a sure you are. Now that we've covered F.E.

A $113000 increase in R&D expenses, which was also due to tsi cost.

$113000 increase in R&D expenses, which was also due to tsi cost.

Was offset by declines in G&A and sales and marketing expenses.

Scott Bibaud: Let me provide updates on other customers. I'm pleased to report that experiment with our DAA-1 customer has shown excellent technical results that we believe solve a significant problem in their patient. We have addressed our target that one of the largest B.U.s.

non-GAAP net loss was flat sequentially at $4 $3 million in Q3, and Q2 of 2023 and compares to a loss of $3 $7 million in Q3 of 2022.

non-GAAP net loss was flat sequentially at $4 $3 million in Q3, and Q2 of 2023 and it compares to a loss of $3 $7 million in Q3 of 2022.

The differences between GAAP and non-GAAP operating expenses in all periods. We're presenting are primarily due to noncash stock compensation expenses, which were $1 million in both Q3 and Q2 of this year and $889000 in Q3 of 2022.

Scott Bibaud: At this point, our focus has shifted to defining a business illusion that will work well for both of us. But given the strength of our technical offering, I am honoured that we will find a commercial structure for them to adopt M.E. Likewise, with our DAA-2 customer, we can test results combined with M.E.K. We have led us to start a new round of experiments to hopefully reach a performance level to agree with the lightness of the agreement's contemplate at the part of the DAA package.

Yeah.

Our balance of cash cash equivalents and short term investments on September 30th 2023 was $24 million compared to $23 8 million on June 32023.

Scott Bibaud: It will take several months of the results to come out, but we hope with the lower level of fat utilization, the industry is at greater dignity these days, we will get it fast through work. We are also seeing an interest in our higher old technology offerings, NSE, S-E-N-S-E-X. There are no doubt that our S-E legs are now going to have simulated interest in these technologies of the product industry. Recently, our M-S-E-CAD was adopted by a very large analog and power manufacturer, which we believe is an excellent first step towards licensing our overall M-S-E-C technologies for production.

During Q3, we used $3 $5 million of cash in operating activities.

We sold approximately 24000 shares under our ATM facility at an average price of $9 17 per share.

As of September 30th 2023, we had 25.8 million shares outstanding.

As of September 30th 2023, we had $25 8 million shares outstanding.

Moving now to our guidance.

We still expect that our non-GAAP operating expenses for 2023 will be in the range of 16.25 to $16 $75 million and it should come in close to the midpoint of that range.

Scott Bibaud: We continue to see good momentum for both M-S-E-S-E-N-S-E-X. [inaudible] and we need something that all our otherwise designers want to use once they understand the benefits. And we're confident about this because the first few customers who have explained it to you have been quite excited to get it started. And hopefully this will lead to several new languages and partnerships in the future.

On the last call I caution to the higher prices and number of wafers run at GSI had caused our outsourced R&D expense to run above our annual plan.

On the last call I cautioned that higher prices and number of wafers run had tsi had caused our outsourced R&D expense to run above our annual plan.

However, we now expect that our work at Tsi during Q4 as well as in Q1 of next year will primarily consist of finishing wafer lots that we have in progress or are just starting.

As we just as we discussed on our Q1 call Bosch announce the game plan to acquire Tsi and convert it to silicon carbide production by 2026.

As we discussed.

As we discussed on our Q1 call Bosch announce the game plan to acquire Tsi and convert it to silicon carbide production by 2026.

The acquisition closed at the end of August and in October Bosch informed us and the rest of tsi customers that they will cease supporting current customers in February 2024.

The acquisition closed at the end of August and in October Bosch informed us and the rest of T. S. Ais customers that they will cease supporting current customers in February 2024.

Adam area is now in the process of finding a replacement.

Adam era is now in the process of finding a replacement.

Scott Bibaud: Similarly, in the advanced nodes market, our offering has gotten significantly stronger in the last three months. Like the key we would end thinking in this market is through egos and some of the partnerships. Some of the technology is so complex and expensive to prove how to fill in. We are working to establish and nurture those types of relationships today.

As Scott mentioned, we expect that S. T micro willing to settle all have FTE in Q4.

As Scott mentioned, we expect that S. T micro will install MST in Q4.

So our Q4 revenue should be in the range of 300 to $350000, which would consist mostly of St's first milestone payment for the installation of MSG.

Our Q4 revenue should be in the range of 300 to $350000, which would consist mostly of St's first milestone payment for the installation of MSG.

Scott Bibaud: Two weeks ago, we announced that the ad narrowed part of the Southwest Advanced Producting Hub, led by our lengthy university, which is recently deep funding through the Ship and Signs Act. Ad narrowed to the driver with a thousand minutes of the hub, because we believe that America needs an egos of the most advanced development teams who can work together to redefine what is possible in the semiconductor industry. This has always been an ad narrowed focus.

After validation of film quality in St's tool, there will be a second and final installation related milestone payment.

As we progress towards that second milestone.

And towards a much more substantial upfront fees for moving to commercial production.

We will provide updated revenue guidance as appropriate.

With that I will turn the call back over to Scott for a few summary remarks before we open the call up to questions.

With that I will turn the call back over to Scott for a few summary remarks before we open the call up to questions Scott.

Scott Bibaud: And we are going to gratify the greater folly and resources that is finally going to bring. And as a smaller company, we will be great leverage from the partnership. We have no doubt that the part of the new egos system will assist us in implementing our technology as the biggest semiconductor makers who are interested in investing in advanced nodes today.

Scott.

Thanks Frank.

Once again this quarter, Adam Air has advanced our technology with customers across many different market segments.

Once again this quarter, Adam era has advanced our technology with customers across many different market segments.

We believe the momentum we are carrying right now will help us to assemble a large and diversified set of customers and markets building, a strong and growing royalty stream that is our goal and I look forward to sharing our journey with you as we seek to build a semiconductor technology licensing powerhouse.

Scott Bibaud: Finally, you may have noticed that we added a new segment into our technology bubble areas, MCD realm. During the task order, we published a comprehensive white paper run on our website, giving some details of the metaphysics around how an MC can be combined with the semiconductor design to make it easier to buy the smaller and lower power. In short, an MCD will be able to bring improvements to the DLN devices that are on scale with the benefit we are bringing to our other technology.

Mike will now take questions.

Alright. Thank you Scott if you wish to ask a question. Please click the Q&A button at the bottom of the zoom window, then feel free to type in your question I will do my best to aggregate the incoming queries related to management.

Alternatively, you can click and raised that clicking the raise hand button and we may call on you to ask your question life.

Thirdly, you can click and raise debt clicking the raise hand button and we may call on you to ask your question life.

Okay as of right now our first question comes from Richard Shannon of Craig Hallum, Richard If you would kindly on mute.

Scott Bibaud: This is a memory work that our first direct foray in the technology that will enable the artificial intelligence revolution. It is clear that AI uses far more memory than traditional browsers, which means the cost and the cost of the day we've had in our embrace these devices will be critical. Further, because AI acts as a memory in different ways, it demands different latency and bandwidth, all the ways are going to drive big changes in the memory requirements of the future.

And you May ask your question.

Great. Thanks, Mike and thanks, Scott in Frankfurt, but I may ask a question here.

Let's start with the topic of S. T. Micro here I guess just wanted to clarify here, obviously, we understand some of the.

Let's start with the topic of of S. T. Micro here I guess just wanted to clarify here, obviously, we understand some of the.

Delay mechanisms here, but you also believe that there's going to be no delay on the ultimate 18 to 24 month timeframe to get them to.

Delay mechanisms here, but you also believe that there's going to be no delay on the ultimate 18 to 24 months timeframe to get them to.

I think your words were production, but correct me if I'm wrong, there Scott, but he can you help us understand why you don't think there's any delay here.

I think your words or production quota correct me, if I'm wrong, there Scott, but he can you help us understand why you don't think there's any delay here.

Scott Bibaud: Atomera, in the end, it will be a leading innovator in the state to take advantage of the opportunity that AI will provide for growth in the semiconductor market. As you can see from the wide set of exciting customer engagement, our business goal is expanding along with our potential. I usually, the FDNM has helped us get over the many customers which helped to explain the momentum. But more importantly, it is due to the efforts of our brilliant team of engineers and scientists who are constantly bringing cutting-ins solutions to the semiconductor industry. Inside our AI, we are very optimistic about the bright future of our company ahead of the front of us.

Well, regardless of when they installed the tool they were going to have to do.

A bunch of development work, creating the new PDK using simulation technology.

A bunch of development work, creating the the new PDK using simulation technology.

Scott Bibaud: And we hope to prove that by announcing more life and production deals in the near future.

I think even if it had been in place they probably would do quite a bit of that before they went to silicon validation. So by my.

By my estimate I don't think we're behind as long as it as long as it gets installed soon which we which we do believe it's going to happen.

By my estimate I don't think we're behind as long as it as long as it gets installed soon which we which reduced believe it's going to happen.

Okay.

Fair enough, let's jump over to the topic of your first J D. A customer I think you said.

Sure.

Great resolve to solve a big problem here targeted one of their largest business units Bye Bye Bye notes you said you're focused on it.

Great results to solve a big problem here target of one of their largest business units by my My notes here said your focus on that business are air solution to work on with that business. Maybe you can help us a little bit understand what what's going on there.

Frank Laurencio: Frank will now review our financials. Thank you, Scott.

Our solution to work on with that business, maybe you can help us a little bit understand what what's going on there.

Yeah.

Frank Laurencio: At the closing mark today, we issue the product release and everything of our loss of the third quarter of 2020-2013. This is what I showed a summary of. Our next loss is a three month and then the September 30th. She's got on 23 $5 million for $27 per share. Compared to that loss of $4.6 million, which was also $27 per share in the third quarter of 2022. In the future of 2020-2013, our gamma loss was a $5.2 million for $21.1 that was a share.

Sure.

So I think in the past when we've talked about our J D. A customer we talked about how we were working with the central engineering.

Organization and that they were evaluating our technology in them would recommend it out to the different business units.

And obviously over the last few years, we've gone from very general.

Ah.

Test requirements. So they had to prove that our our film was of the type of quality that you take the production down to more and more specific application solutions to problems. They are facing the one that we've been working on over the past.

Test requirements that they had to prove that aren't are still most of the type of quality that you take the production down to more and more specific.

Application solutions to problems they are facing the one that we've been working on over the past several months.

Frank Laurencio: The FDNM is $5.4 million in the future of 2020-2013, which was an increase of the product release of $6.9 million for $4.7 million in the future of 2021-2013. The biggest driver of the year and year operating in its current increase was a $5.67 million in increase in the R&D account. $280, that set up a dollar in the wish, which would do the higher prices for waiting for processing and engineering services at our top of our economy, TLSI-70.

Several months.

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This is a very challenging problem that their biggest business unit has been facing and and we believe we've delivered something really compelling to them now.

This is a very challenging problem that their biggest business unit has been facing and and we believe we've delivered something really compelling to them.

Now.

In our <unk>.

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We had created a J D. A in the past and we set put in place all the business terms with J D, but still haven't gotten to the business terms about being able to do a full license that would take them to production and we're trying to work with them right now to figure out how can we find something that works for both them and us so that we could get a contract they feel comfortable in retail.

We had created a J D. A in the past I mean set put in place all the business terms with J D H, but still haven't gotten to the business terms about being able to do a full license that would take them to production and we're trying to work with them right now to figure out how can we find something that works for both them and us so that we could get a contract they feel comfortable in retail.

Frank Laurencio: [inaudible] Equipmentally, our GAP operating incentives will reflect $5.4 million in both the QC3 and QC2-2020-2013. In the future of 2020-2013, the FDNM is $1.2 million in the future of 2020-2013, at the end of the year, I'm going to talk a little bit more about what I'm going to talk about in the book, Q3, the Q2 of this year, and the $899,000 in the Q3, the $20,025. Our balance of cash, cash equivalent, and the short term of that estimate, on the September 30th, 2023, was $20,8.4 million, compared to $23,8 million on June 30th, 2023.

Comfortable and then start working to implement this and the business unit.

Okay. So it sounds like a business related dynamic for the J D. One customer not any kind of I think technological in nature, then is that fair yes.

Okay. So it sounds like a business related dynamic works with the J D. One customer not any not anything technological in nature of them is that fair yeah.

Yeah, right now I would say, that's where we are we're on business.

Yeah, right now I would say, that's where we are we're on business as you know when we get done with the business and we start doing.

When we get done with the business and we start doing.

More detailed technical work of course, we'll be back into the technical side, but right now I think we can improve and what we need to get to real solid business discussions.

Okay Fair.

Okay.

Fair enough sounds like some good progress there, let's jump over to another question here.

Since you announced S. T micro I think about six months ago. We've continued to ask a question about the halo effect that they may have on one other analog peers and one of your comments here I think you said that MST cab was adopted by a large analog and power manufacturer do you think it is.

Since you announced S. T micro I think about six months ago. We've continue to ask question about the Halo effect that they may have on one other analog peers and one of your comments here. Thank.

He said that MST CAD was adopted by a large analog and power manufacturer should think as a first step to license technology.

First step to license technology.

Hey would you believe what do you see this as the SD micro Halo effect.

A would you believe what do you see this as a the SD micro Halo effect.

Having some having are having some impact on this particular customer and what does this mean abouts are entering in endo.

Having some having are having some impact on this particular customer and what does this mean about.

Entering into one of the phases in your and your status that you talk about every quarter.

And the one of the phases in your and your status can you talk about every quarter.

Yeah, Okay. So first of all.

We are out talking to customers all the time about MST SP and SPX switcher technologies, we've developed ourselves using M. S T and they show really impressive results that should be enough for a customer to.

We are out talking to customers all the time about MST SP and SPX switcher technologies, we've developed ourselves using MST and they show really impressive results that should be enough for a customer to.

Decide to use them, but the fact that we can say we've also done a license agreement with S. T really we think helps to push it over the kind of over the top.

Now what impact does that have an hour.

Frank Laurencio: During Q3, we used $3.5 million in cash, and now we're getting at it. And we sold a product we would $24,000 shares under our ADM facility at an average price of $9.7 million per year. As was compared to the year, 2023, we had $20,5.4 million shares on our standing. Moving now or not, we need to look outside at our non-gal operating expenses for the $20.3 million will be in range of $16.25 to $16.75 million, and it shouldn't come in close to the mid-point of that range.

On our customer pipeline that we showed you.

Yes, the fact is that the.

We can be working with customers in phase one with MST CAD.

We also can be working with customers in phase two or phase III honestly, we think MST cat is going to be something that people use from the beginning until when they get into volume production.

We also can be working with customers in phase two or phase three obviously, we think empty cat is going to be something that people use from the beginning until when they get into volume production.

For this particular customer actually we had been working with them on some other technology and they're already in phase three so like I said, we believe we made really good progress with them this quarter, but you can't really see it by looking at our pipeline chart.

Frank Laurencio: On the last fall, I declined that a higher amount of use in a number of waivers run at PFI had to cover our out-source RDA expense to run all our annual plan. However, we now expect from our work at a PFI during Q4, as well as in Q1 and that year, will have an early consideration for the finishing wait and loss that we have in progress, or just sorry.

Okay.

That doesn't always capture that dynamic, but thanks for that detail Scott.

I know you discussed this and there was interesting line in your press release this morning about our.

I know you discussed this and there was interesting line in your press release this morning about the.

The benefits M S T in both DRAM and advanced nodes.

The benefits MST in both DRAM and advanced nodes.

Maybe I'll allow you to answer the question is either of both said in aggregate you can think that's appropriate but are becoming increasingly clear to the industry. Maybe you can give us some sense here it seems like youre getting some recognition industry.

Maybe I'll allow you to answer the question is either or both in aggregate and we think that's appropriate but are becoming increasingly clear to the industry. Maybe you can give us some sense here it seems like youre getting some recognition of industry.

Frank Laurencio: As we discussed on our Q1 call, boxing announced that they planned to require TFI and converted the facility into car ride adoption by 2021.6. The other position closed the end of August, and in October, the body form cost and the rest of the TFI customers that they will be supporting the current customers in December of 2021. However, it is now the process of defining where the place is. As I mentioned, we expected that TMI role was to fall at the TFI in Q4.

Industry conferences or recognition from the white papers or whatever you're writing what what what makes you say that has become increasingly clear to the industry.

Industry conferences or recognition from the white papers or whatever you're writing what makes you say that has become increasingly clear to the industry.

Yeah, I mean, just definitely Ah, it's through technical conferences that were getting invited to.

Yeah, I mean, just definitely.

It's through technical conferences that were getting invited to.

To these different organizations like the southwest a regional development hub that we're being.

To these different organizations like the southwest regional development hub that we're being.

We actually have kind of a founding member of.

Plus just the tool manufacturers and the.

And the customers themselves they know about our technology, they ask us about it and.

Frank Laurencio: So QV pulled out of the facility in the range of $300, 350,000, which would be considered mostly of the TFI's first loud-down payment for the initialization of the TFI. After the evaluation of the film quality of the TFI tool, there will be an effective and final installation related milestone payment. As we progress for the second milestone, and toward a more substantial of the front fees for the release of commercial production, we will provide updated revenue guidance as per our rate.

And so.

And so you know.

We can definitely see from where we were a few years ago that.

We were working on this technology, but we didn't have as deep engagements with either the customers or with the.

Ecosystem partners now, we really see that whole thing coming together and I did talk about how important we think it is for ecosystem to be used because the big.

Ecosystem partners now, we really see that whole thing coming together and I did talk about how important we think it is for ecosystems to be used because the big.

The semiconductor guys they don't directly.

Semiconductor guys they don't directly.

Cooperate with each other but they all use the ecosystem to come up with ways that they can make their next generation products more successful.

Scott Bibaud: With that, I will turn the call back over to Scott for a huge summary remarks before we open the call on questions. Thank you, Frank. Once again, this is quarter. Atomera has advanced our technology with the customers across many of different market segments. We believe the momentum you're carrying right now will help us to assemble a large, diversified set out of customers and in markets. Building a strong, growing world industry. That is our goal, and I look forward to sharing under any of you. And then we see to build some of your data technology like the powerhouse.

Okay Fair.

Fair enough one last question for me and I'll jump out of line.

Yes.

Obviously, the macro has just looking are not very good as we've seen for a number of reports in the shipping industry and broader.

Obviously, the macro is looking not very good as we've seen for a number of reports in the semi industry and broader.

Over the last couple of weeks here.

Over the last couple of weeks here are.

Are you seeing any sense of this from your customers whether in later stages are the latest stages of phase of the phase that you talked about or even at the beginning of the cycle are you seeing any of that slowdown or.

Are you seeing any sense of this from your customers whether in later stages are the latest stages of fate of the phase that you talked about or even at the beginning of the cycle are you seeing any of that slowdown or alternatively with utilization is much lower than it had been in quite some time does this open up new opportunities that make it even more.

Alternatively with utilization is much lower than it had been in quite some time does this open up new opportunities that make it even more exciting and could even accelerate in this in this environment.

Mike Bishop: Mike, we will now take questions. All right, Scott. If you would ask questions, please click the Q and A button in the bottom of the window.

Citing and could even accelerate in this in this environment.

Yeah, So our view on the market right now we think the market has.

Mike Bishop: And if you'll be talking to your question, I would be going to aggregate the information later in a minute. Alternatively, you can click and read that. Click and you read hand button and we make a call and you can ask questions live. And as right now, our first question on the right hand.

Yeah. This year has been a very rough year in terms of.

Richard Shannon: Richard, you had kind of unused. And you may ask questions. Great.

Gross growth going negative and.

Gross growth going negative and <unk>.

A lot of capacity being available out there we always talk about a period when there is low.

A lot of capacity being available out there we always talk about a period when there is less.

Low capacity utilization is great for us because our customers can just quickly throw some wafers into the line and the not disrupting anything.

Richard Shannon: Thank you, Mike. And I think Scott and Rainper, let me ask questions here.

And that's definitely true, we're starting to see signs.

Richard Shannon: Let's start with the topic of a team I grew up here. I just want to clarify your[inaudible] I think even if it had been in place, it probably would do quite a bit of that before we went to still looking at violations of my, you know, my estimate. I don't think we're behind as long as it's long to get involved with you. Would you believe that that happened? Okay. [inaudible] I salute the sounds like a business related dynamic for the A1 customer, not any technical organizations at there.

For next year things will start to come back and maybe growth to pick up but we're not seeing signs that we're going to get anywhere near the type of a really strong growth in <unk> and high capacity utilization that we had back in 'twenty 2020 'twenty, one and so I think generally I would say we think that.

For next year things will start to come back and maybe growth will pick up but we're not seeing signs that we're going to get anywhere near the type of.

Really strong growth in <unk> and high capacity utilization that we had back in 2020 in 2021, and so I think generally I would say, we think that we're going back to kind of a normal level of activity in the in the industry and that should give us an ability to really do good development with people without being impeded by it.

We're going back to kind of a normal level of activity in the in the industry and that should give us an ability to really do good development with people without being impeded by it.

Okay fair enough. Thanks for that characterization I will jump out of line Scott. Thank you alright. Thanks, Richard Thanks, Richard Our next question comes from Cody Acree of benchmark coating coffee, Yeah got it. Thanks for let me ask questions.

Okay fair enough. Thanks for that characterization I will jump out of line Scott. Thank you alright. Thanks, Richard Thanks, Richard Our next question comes from Cody Acree of benchmark coating Kofi.

Thanks for letting me ask questions maybe.

Maybe Scott if you can just talk about S T a bit and I know that theres only so much you can share, but if you can talk about where you're seeing your M. S. T applied within SD micro to the extent that you can.

To give us some level of interaction or in the market.

Sure.

Targeting.

Yeah.

So I think.

We can't say too much but I can tell you that.

We can't say too much but I can tell you that the that this technology has been adopted by their smart power.

That this technology has been adopted by their smart power.

Hum products team and so the new PDK that I spoke about would be one that would be designed dead analog and power type of semiconductors.

Products team and so the new.

PDK that I spoke about would be one that would be designed at analog and power type of semiconductors.

Now analog and power, we believe spans multiple divisions with us within S. T.

Now analog and power, we believe spans multiple divisions with us with an S T.

They're a EMS division as one that would be using it quite a bit. They also have a division called automotive that would use it quite a bit.

They're a M S division as one that would be you know.

Using it quite a bit they also have a division called automotive that would use it quite a bit.

And but it's very hard for us to say at this point.

The size of the penetration that they have into those different areas, but we do know that there are smart power product line is extremely successful.

The size of the penetration that they'd have into those different areas, but we do know that they're smart power product line is extremely successful.

Use it throughout the industry and one of the areas that S. T has been investing in.

Houston throughout the industry and one of the areas that S. T has been investing in.

Over the past few years, including building, a new fab to support it.

And Scott is that lack of visibility is that.

A lack of of information you could share with us a sphere engage with S. T or is that a lack of really full clarity to you as to where your technology is going to be applied.

Lack of of information you could share with us SCR engaging with FTE or is that a lack of really full clarity to you as to where your technology is going to be applied.

Yeah, I'd say, it's a little bit of both Cody.

Yes, I'd say, it's a little bit of both Cody.

Because they don't report publicly.

Because they don't report.

Publicly about smart power products, what they report as market segments, not technology segments, which is very common.

Publicly about smart power products, what they report is as market segments, not technology segments, which is very common.

Richard Shannon: Yeah, right now we would say that's where we are around it is, you know, when we get down to business and then we start doing more detailed technical work or we back in the technical type right now in the group we need to get to real thought with the questions.

In the semiconductor industry rate your development teams work on technology segments, and your marketing teams kind of work on market segments, and what they're reporting a market segment. So it we're likely to see is very strong crossover of this technology into multiple different market segments. So as I was talking about earlier in my comments we.

Richard Shannon: [inaudible] I'm just in the macro, this is looking not very good as we've seen for a number of reports in this industry. What will last couple of weeks here? Are you thinking of any sentence of this from your customer's weather, you know, in later days or late days of the day of the day of the day? You need to decide whether you're seeing anything that's floating around, or alternatively with utilization of much more than having it quite some time, so no opportunity to do more exciting and could even accelerate in this environment.

Expect to see chip design starting.

That would be targeted at multiple different markets with multiple different requirements. So for example.

Higher voltage products may be for the automotive industry or.

Five volt type of products for battery powered consumer electronics.

Five volt type of products for battery powered consumer electronics or just analog sensors that might be used in an industrial space, but we you know what we don't know now so we're not violating confidentiality and because we just don't know, but we don't know when.

Or just analog sensors that might be used in industrial space, but we you know what we don't know now so we're not violating confidentiality and because we just don't know, but we don't know where those designs will be coming from and what the potential volume of them will be.

Are those designs will be coming from and what the potential volume of them will be.

And I guess, how much more will you be involved.

Will you be asked to be involved when it does get to be a product activation stage.

Yeah, I think we May we may get less involved frankly at that point, our big involvement is going to be right now during the development phase and then helping them to get the MST working as efficiently as possible.

As they go through their production line, but once they are released PDK for the most part our support requirements I expect to die down to very low.

We may and what I'd like to do is that we keep involvement with their design teams. So they understand all the benefits that they can get by using the MST.

We may and what I'd like to do is that we keep involvement with their design teams. So they understand all the benefits that they can get by using the M. S T but.

Uh huh.

You know I still think for the most part they're engineers will understand it once they see it in the PDK and they'll be able to do that without our help.

I still think.

For the most part they're engineers will understand it once they see it in the PDK and they'll be able to do that without our help.

And let me switch gears a bit to the RF Soi progress that you discussed in your script.

Can you just help us to understand your engagements is this more on an IDM basis or is this through foundry partners.

It's both it's both we have very wide engagement on RF Soi.

It's both it's both we have very wide engagement on RF Soi for most of the foundry providers and an.

For most of the foundry providers and are in several of the idms as well.

And several of the idms as well.

And the good news is theres not 100 players in this space. There there are a handful and we know who they are and we're presenting to them. So I do feel like we've got good traction with a majority of the.

And the good news is theres not a 100 players in this space. There there are a handful and we know who they are and we're presenting to them. So I do feel like we've got good traction with a majority of the.

The folks who will be out there producing products with RF soi.

And I guess from a.

M. S. T standpoint is there a potential for you to be incorporated in our current design process that they are working on today, that's delivering the products delivering to customers.

NMFC standpoint is there a potential for you to be incorporated in our current design process that they are working on today that is delivering the products delivering to customers.

Or would it take a complete bottom up reengineer marine presentation re qualification.

Or would it take a complete bottom up reengineer re presentation re qualification.

<unk> location design wins.

Recertification design wins.

Yeah. So.

Yeah, So coty in.

Coty in.

You know redesigning any existing chip and re qualifying in almost any market is is a challenge.

You know redesigning any existing chip and re qualifying it in almost any market is is a challenge.

My understanding of this space, which I did work in for quite a long time is that it's more cellular and consumer electronics.

Based and so the design cycles are happen every year or even more frequently and so if you come out with a new technology, you probably wouldn't redesign and older chip and try to requalify. It you would design a new chips take full advantage of all the new things that you've got going on and and <unk>.

And get that qualified to go in new phones are new consumer electronics products or something.

That qualified to go in new phones are new consumer electronics products or something.

And so I think that's more what we're looking at for the RF Soi space.

Okay, Great and then Frank I guess can you just talk about your liquidity position.

Okay, Great and then Frank I guess.

Just talk about your liquidity position.

$20 million in cash $3 5 million a quarter burn.

$20 million in cash three and a half million dollars a quarter burn.

What are your options or your level liquidity and where are you comfortable with your cash balance.

What are your options or your global liquidity and where are you comfortable with your cash balance.

Yeah, No Kodiak Theres no change really reached a yeah I think we've addressed this earlier.

Yeah, No Kodiak Theres no change really reach this year I think we've addressed this in earlier.

Calls in.

Calls.

This is about a level that we feel comfortable with.

Richard Shannon: Yeah, so our view on the market right now, we think the market has, you know, you're going to have a very rough year. In terms of the growth, growth going negative and a lot of capacity being available out there. We always talk about a period when there's low capacity alleviation is great for us because our customers can just quickly grow some wheat flour in the line and it's disrupting anything. Not definitely through, we're starting to see these signs that for next year, things will start to come back and maybe growth will pick up, but we're not seeing signs that are going to get anywhere near the type of really strong growth and high capacity utilization that we had in 2021.

We we certainly.

We we certainly do.

Don't want to go Cigna.

Don't want to go <unk>.

Significantly lower but we were very light in terms of.

Any.

Capital raising in Q3, we were active in the market only on.

Just a couple of days and so.

That reflects really our confidence in.

That reflects really our confidence in it.

What lies ahead.

Obviously that three and a half's actually are.

Obviously at three and a half's actually are.

non-GAAP operating expense for the year at about 16 5 million implies.

That $4 million a quarter.

At $4 million a quarter.

In terms of noncash.

First our cash.

Our cash.

Gross cash usage, and so you know going going sort of bogey too far below that one year is not something that we ever want to do.

Gross cash usage, and so you know going going sort of booked too far below that one year is not something that we ever want to do.

Richard Shannon: And so I think generally, I would say we think that we're going back to kind of a normal level of activity in the industry and that should give us an ability to really do good development with people without being able to divide it. Okay.

Is there a baseline of stock price that you wouldn't want to be engaged in your ATM.

No. We're not we're going to give that kind of that kind of guidance I mean, obviously, we control what we can control and there are sometimes things that happened in the market that will affect our stock price that are disconnected from the.

Richard Shannon: Thank you very much. All right. Thank you very much. All right.

The fundamentals in the business, but.

You know what we we often get asked about the timing of making significant announcements and we.

Richard Shannon: I can talk about a few of this and I know that there's only so much you can share, but if you can talk about where you're seeing your MSP applied with MSP microSD. And then you can give us some level of interaction or market targeting. Yeah. So I think we can't take too much, but I can tell you that this technology has been adopted by their smart power product team and the new PDK they spoke about will be one that would be designed at analog and power.

Have on occasion, and certainly this was true with S T micro.

Have on occasion, and certainly this was true with ft micro.

You know open to a lot of speculation of all why did this come right at the earnings call and we signed the deal the day before the earnings call. So we announced if we announced it.

You know opened a lot of speculation of all why did this come right at the earnings call and we signed the deal the day before the earnings call. So we announced if we announced it.

Transaction.

Next week that was a material event for the company, we would announce the bench and so.

Next week that was a material event for the company, we would announce bench and so I think you know.

Thank you.

That's.

That's been our disclosure practice and it's not.

In any way kind of intentional and some we will get that information out there.

In any way kind of intentional in some.

We'll get that information out there.

Richard Shannon: Send them your characters. Now analog and power. We believe fans multiple visions with that within that he. Their AMS division is one that would be, you know, using quite a bit. They also have a division. A lot of that would use it quite a bit. And but it's very hard for us to say to this point. The size of the administration. They have a little bit of marriage, but we do know that there's smart power product line extremely successful use throughout the industry and one of the areas that a few have been investing in.

And to the extent that that is something that.

Affects the stock price fall. That's that's that's a good thing we can certainly control.

<unk> affects the stock price fall. That's that's that's a good thing we can certainly control execution, but a lot of things that have happened in the market in the last in our <unk>.

Execution, but a lot of things that have happened in the market over the last six or nine months I think has been very much across the industry in the stock market.

Six or nine months I think has been very much across the industry in the stock market.

Thank you guys.

Great.

Great Tom.

Thank you Cody.

And just a couple of questions coming in on the AR on the Q&A chat.

And just a couple of questions coming in on the on the <unk>.

Q&A chat.

So first one is regarding S T micro and <unk>.

The question is how many <unk> in the initial installation of LST at S. T Micah.

The question is how many effie tools in the initial installation of MST at Ft micro.

Yeah, I would be very typical for someone to install in just one tool for the development process. You can run a lot of wafers through one tool that I can be pressed on.

Yes, it would be very typical for someone to install in just one tool for the development process. You can run a lot of wafers through one tool, they're not going to be pressed on.

Richard Shannon: Oh, happy year. The building and fab support, and if that lack of visibility is not a lack of information, you can share it with us if you're engaged with that team, or is that a lack of really full clarity to you, so where your technology is going to be flying? Yeah, I think it's a little bit old, Cody, because they don't report publicly about smart power products, what they reported is market segments, not technology segments, which is very common in some of the veterans you're really developing and team work on technology segments and your marketing and kind of work on market segments.

On capacity be able to do those wafer level qualification or the silicon validation tests that I talked about that should be fine as they go to production then it will really depend on the ramp rate for what volume they need but in all likelihood they will have to add.

And a lot more machines as they get to higher volumes.

But we yes, we don't have much insight into that right now we do know that the first installation is on a single tool okay.

And a question about the J D E one and timing.

And a question about the J D one and timing.

Richard Shannon: And what they're reporting on market segments, what we're likely to see is very strong crossover of this technology and the multiple different market segments. So, as I was talking about earlier in my comments, we expected to see chipsign starting that would be harder than all of the different markets with a lot of multiple different requirements. So, for example, higher-voltage products made for the lot of industry, or five old type of products for battery power to consume them like electronics, or just analog sensors that might be used in industrial space.

So I think folks are judging if S. T takes this law what would.

So and I think folks are judging if S. T E takes this law what would.

Timing look for J J, one should they do.

Timing with four J D. A one should they do.

Choose to go to production will is about as long and do you anticipate as it's taking SD micro or what are you what are your thoughts on that.

Choose to go to production will is about as long do you anticipate as it's taking SD micro or what are you what are your thoughts on that.

You know that is that's difficult to call because it depends where they slot in the technology in their development cycle. This is a.

You know that is that's difficult to call because it depends where they slot in the technology in their development cycle. This is.

There are obviously working on their next generation.

Prop.

Richard Shannon: Yeah, but we don't know now, so we're not by the end of the day. And because we don't know, we don't know where those designs will be coming from and what the potential of them will be.

Process and so this would go into whatever that is defined as being in I don't know if or how far down the road. They are with it yet so if they're pretty far down the road in a slot to send then it would be sooner I think I think it would be fair to say, though all of them have to go through a similar type of.

Process and so this would go into whatever that is defined as being in I don't know if or how far down the road. They are with it yet so it's a pretty far down the road in a slot. The same then it would be sooner I think I think it would be fair to say, though all of them have to go through a similar type of.

Richard Shannon: Yeah, I guess how much more would you be involved when you have to be involved when it gets to be a product to date and stage? Yeah, I think we may get it back to the ball frankly at that point. Our big involvement is going to be great now. We're going to develop in the phase and then helping them to get the MNFD working as sufficiently as possible to go through their production line.

The process that we showed on SD micro where they have to do silicon validation.

Get to a final PDK and wafer level qualification and then take that to production. So it will be a will be in a similar type of timeframe.

Get to a final PDK and wafer level qualification and then take that to production. So it will be.

We'll be in a similar type of timeframe.

Okay.

And and there was a question about J D. A to a and that is you mentioned that there are new experiments being run does that indicate a shift to a new product area or different focused or if it's the same area why would you need additional additional runs or experiments.

And and there was a question about J D H two.

And that is you mentioned that there are new experiments being run does that indicate a shift to a new product area or different focused or if it's the same area why would you need additional additional runs or experiments.

Richard Shannon: But one of the early PDK for the most part are our support requirements. I expect to die down to very low. We may, and what I'd like to do, that we keep involvement with their designing, so they understand all the benefits that they get by using the MNFD. But, you know, I still think for the most part of their interview, well, I'm understanding that when they see it in the PDK, and they'll be able to do that without our own help.

Yeah. So.

So J D. H two is on a specific technology, we talked about that a while ago and in the technology has not changed it's still the same focus area.

J D. H two is on a specific technology, we talked about that a while ago and in the technology has not changed it's still the same focus area.

Obviously, we had been working we thought we were showing them. Some good improvements in that technology, but it obviously wasn't good enough to trigger.

Obviously, we had been working we thought we were showing them. Some good improvements in that technology, but that obviously wasn't good enough to trigger.

Richard Shannon: And let me put it here to you, then, to the RFFD line, I probably have things to discuss and in your district. Can you just help us to understand your engagements? Is there more on IDN images or is it through government partners? It's both. We have very wide engagement in RFFDI for remote delivery providers and several of the IDNs as well. And the good news is that there's not 100 players in this space. There are an envelope, you know, they are representing them. So I think we've got good interaction with the majority of the folks that we out there producing products with RFDI.

The milestones that we had asked about that we had set forth in our initial J D. A documents, which said.

The milestones that we had asked about that we had set forth in our initial J D. A documents, which said you know if we can hit certain performance levels. Then they would move forward with a full license and start.

If we can hit certain performance levels, then they would move forward with a full license and start.

The process of taking it to production.

They never hit that.

They never hit that but we but we've been able to show them based on very recent test results, we got with them that there's really great potential too.

But we but we've been able to show them based on very recent test results, we got with them that there's a really great potential to hitting.

Hitting our meeting or exceeding those targets and so that's why we started a next round of experiments with them.

Hitting our meeting or exceeding those targets and so that's why we started an extra round of experiments with them.

Okay.

At this point in time, Scott I'll turn it back to you for closing comments.

Alright, well I want to thank you all for attending today's presentation I'm happy to share with you some of our recent progress and our potential and new technology areas.

Richard Shannon: And I guess from an MNFD standpoint, is there a potential where you believe it incorporated in a current design process that they're working on today and the delivery to product delivery partners or the data complete the bottom-up, range-year, re-presentation, re-walled data, re-presentation, line-up, Yeah, so Cody and, you know, redesigning any existing ship and a revolving, almost any market is, is a challenge. My understanding of this space, which I did work in quite a long time, is that it's more cellular in the consumer electronics space and so the design cycles that have been there every year, or even more frequently and so if it comes out of the new technology, you probably wouldn't really design an older ship and rather revolving, you would design a new ship, take full advantage of all the new things that you've got going on and get that revolving. Go in new phones, or new computer electronic products, or something, and I think that more would look at that a lot at the right place.

Please continue to look for our news articles and blog posts, which are available along with investor alerts on our website at <unk> Dot com.

We are planning to attend the Craig Hallum Alpha Select conference in a few weeks in New York City and the benchmark Discovery Conference in December and we look forward to seeing many of you at those events should you have additional questions. Please contact Mike Bishop who will be happy to follow up.

Thank you again for your support and we look forward to our next update call.

Thank you. This concludes the air at a marathon quarter update call.

Goodbye.

Richard Shannon: Okay, great. And then right, I guess you can just talk about your liquidity decision, $20.5, $3.5, $1.5, $1.4 per unit, what are your options for your level, where are you comfortable with the data balance? Yeah, that's a good idea, that's a good idea, that's a good idea, so we just, you know, we don't want to go significantly lower, but we were very white in terms of any calculating, you keep going, you know, we're back to the market only on just a couple of days, and so, you know, that would look like a linear confidence in, you know, with a large head, you know, obviously, that has really happened, you know, as we are not going to set up for the year, I think it's going to happen again, and it lies, you know, about four more million in a quarter, you know, in terms of non-hash, you know, rose-hash usage, and so, you know, you're going, you're going to go too far, one of that, one of your, not something of any other white too.

Richard Shannon: Is there a baseline of stock price that you wouldn't want to be at age at 3 AM? No, we're not going to do that kind of, that kind of times, and then obviously, we, you know, we can control it, or sometimes things happen in market, and it will affect our stock price, and our position has to be from, you know, we all need to ask about the finding of the banking, the significant absence, and we have an engagement, and certainly just true that he might grow, you know, over the last couple of weeks, and why, this is something that you're going to need to follow, and we find the old, the main, what we're going to need to follow.

Richard Shannon: So when we announced, if we announced, you know, the trend of action, that actually was a, you know, and so, I think, you know, that's, that's been our exploitive practice, and it is not, you know, in any way kind of intention, or it's, you know, we will get that information out there, and the kind of that is something that affects the stock price, and very well, that is, you know, that is, that is a good thing, and we certainly control, I think it's huge, but a lot of things have happened in the market in the last, you know, that's a good time, because they think it's been very much across the industry and in the stock price.

Richard Shannon: Thank you, guys. I appreciate time. Thank you, Cody.

Richard Shannon: And it's a couple of questions coming in on the first one is going at FCE micro and the question is how many FB tools in the individual installation that FCE at FCE micro? Yeah, I'm very typical for some of the installments of one tool for the development process. You can run a lot of wait for through one tool and I'm going to be impressed on how to be able to do those wait for the qualification or the Silicon Valley Asian test that I talked about, that you find.

Richard Shannon: And as a go to production, then it will really depend on the ramp rate for what volume they need, but in all likelihood they'll have to add a lot of machines that they get to higher volumes. But we, yeah, we don't have much to decide right now. We do know the first installation that I'm going to do. And it was about the T-A1 and timing. So in I think we're judging, you know, that FCE takes this long wood, timing for T-A1 should they choose to go to production and will it is about as long do you and say, is it taking a micro or what are your thoughts on that?

Richard Shannon: Um, you know, that is difficult to call because if it tends where they slide in the technology and they're developed, it's like, this is a, they're obviously working on their next generation process. And so this would go into whatever that is defined as being. And I don't know how are down the road there with it. Yeah. So the pretty far down road, they've lost it in and then it would be sooner.

Richard Shannon: I think I think it would be fair to say that all of them have to go through a similar type of process that we showed on as a micro way. They have to do some validation. Get to a final PDK and we love all patient and then take that direction. So it will be, will be in the similar type of time frame.

Richard Shannon: Okay.

Richard Shannon: And, um, and there was a question about T-A2. And that is, you mentioned that a review experiment being run that is that in case a shift to a required area or focus, or if it's the same area, why would be additional, additional rounder experiments? Yeah. So T-A2 is on a specific technology talked about that a while ago, and technology is not changed. Still the same focus area. Obviously, we had been working, we thought we were showing them.

Richard Shannon: I'm good at improving in that technology, but obviously wasn't good enough to trigger the milestone that we had asked about. We get to set it forth in our, and then it was the A-A document, which we said, you know, we can hit certain performance levels, then they would move forward with a whole license and start a process of taking into production. They never hit that, but we've been able to show them based on very recent test results we got with them, that there's really great potential to hitting or feeding those targets. And so that's where we started to get around with the experiment.

Scott Bibaud: Thank you all for attending today for your presentation. I'm happy to share with you some of our reading and broader and our panel of new technology areas. Please continue to look for our user articles and blog posts which are available along with investor alerts on our website at www.air.com.

Scott Bibaud: We are planning to attend the Crary House out of the select conference in a few weeks in your city and then mark discovery conference in December and we will look forward to meeting many of you at those events. If you have additional questions please contact Mike Bishop, we will be happy to all of you.

Scott Bibaud: Thank you again for your support and we will look forward to our next update call. Thank you.

Scott Bibaud: This is Luzier, Atomera, atomera, atomera.org for our update call.

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