Q2 2024 Atomera Inc Earnings Call

Hello everyone and welcome to Atomera's second quarter fiscal year 2024 update call. I would like to remind everyone that this call and webinar are being recorded and a replay will be available on Atomera's IR website for one year. I'm Mike Bishop with the company's investor relations.

Operator: quarter, Fiscal Year 2024 update call.

Operator: I would like to remind everyone that this column webinar is being recorded, and a replay will be available on Atomera's IR website for one year.

Mike Bishop: for fiscal year 2024 update call. I would like to remind everyone that this call and webinar are being recorded, and a replay will be available on Atomera's IR website for one year. I'm Mike Bishop with the Company's Investor Relations. As in prior quarters, we are using Zoom, and we will follow a similar presentation format with participants in a listen-only mode.

Mike Bishop: I'm Mike Bishop with the company's investor relations. As in prior quarters, we're using Zoom, and we will follow a similar presentation format with participants in a listen-only mode. We will open with prepared remarks from Scott Bibaud, Atomera's President CEO, and Frank Laurencio, Atomera's; then we will open the call to questions. If you are joining by telephone, you may follow with a slide presentation to accompany our remarks on the events and presentation section of our investor relations page on our website.

Mike Bishop: We will open with prepared remarks from Scott Bibaud, Atomera's President and CEO, and Frank Laurencio, Atomera's CFO. Then we will open the call to questions. If you are joining by telephone, you may follow a slide presentation to accompany our remarks on the events and presentation 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 four forward-

Speaker Change: As in prior quarters, we are using Zoom, and we will follow a similar presentation format with participants in a listen-only mode. We will open with prepared remarks from Scott Bibaud, Atomera's President and CEO , and Frank Laurencio, Atomera's CFO . Then we will open the call to questions.

Speaker Change: If you are joining by telephone, you may follow a slide presentation to accompany our remarks on the events and presentation section of our investor relations page on our website.

Mike Bishop: 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 or not prepared remarks are during the Q&A session, are subject to inherent risks and then certain teas. These risks and uncertainties are detailed in the risk factor section or are filings with the Securities and Exchange Commission, specifically in the company's report on Form 10-K filed with the SEC on February 15, 2024. Except as otherwise required by federal securities laws, Atomera disclaims any obligation to update or make revisions to such forward-looking statements contained herein or elsewhere to reflect changes in expectations with regards to those events, commissions, and circumstances.

Speaker Change: 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.

Mike Bishop: These four 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 factor section or filings with the Securities and Exchange Commission, specifically in the company's annual report on Form 10-K filed with the SEC on February 15, 2024. Except as otherwise required by federal securities laws, Atomera disclaims any obligation to update or make revisions to such forward-looking statements contained herein or elsewhere to reflect changes in expectations with regard to those events, conditions, and circumstances.

Speaker Change: These risks and uncertainties are detailed in the risk factor section of our filings with the Securities and Exchange Commission, specifically in the company's annual report on Form 10-K filed with the SEC on February 15, 2024.

Speaker Change: except as otherwise required by federal securities laws. Atomera disclaims any obligation to update or make revisions to such forward-looking statements contained herein or elsewhere to reflect changes in expectations with regards to those events, conditions, and circumstances.

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

Mike Bishop: 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 posted on our website. Now, I would like to turn the call over to our President and CEO, Scott Bibaud. Go ahead, Scott.

Speaker Change: 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 posted on our website.

Mike Bishop: Now, I would like to turn the call over to our President CEO Scott Vivo. Go ahead, Scott.

Speaker Change: Now I would like to turn the call over to our President and CEO , Scott Bibaud. Go ahead, Scott.

Scott Bibaud: Good afternoon and welcome to Atomera's second quarter 2024 update call. The last few months have been a very busy time at Atomera with extensive customer activity, strong product development results, and recruiting of new team members in our first CHIPSAC funding submission.

Scott A. Bibaud: Good afternoon, and welcome to Atomera's second quarter 2024 update call. The last three months have been a very busy time at Atomera with extensive customer activity, strong product development results, recruiting new team members, and our first CHIPS Act funding submission. Today I'm going to go a little outside of our usual format to give a comprehensive picture of the company. Given the current stock price, we sense there might be a feeling among investors that our technology, innovative development, and customer activity are somehow stalled. Nothing could be further from the truth.

Scott A. Bibaud: Good afternoon and welcome to Adamera's second quarter 2024 update call. The last 3 months have been a very busy time at Adamera with extensive customer activity, strong product development results, recruiting of new team members, and our first CHIPS Act funding submission.

Scott Bibaud: Today, I'm going to go a little outside of our usual format to give a comprehensive picture of the company.

Scott A. Bibaud: Today I'm going to go a little outside of our usual format to give a comprehensive picture of the company.

Scott Bibaud: Given the current stock price, we sense there might be a feeling among investors that our technology, innovative development, and customer activity are somehow stalled. Nothing could be further from the truth.

Scott A. Bibaud: Given the current stock price, we sense there might be a feeling among investors that our technology, innovative development, and customer activity are somehow stalled. Nothing could be further from the truth.

Scott Bibaud: To that end, I'd like to take a look a little deeper into each of the market segments where our primary customers are making significant progress towards JDAs and/or license agreements. First, MSC for power chip technology. Atomera continues to work very closely with SD Microelectronics on their next generation smart power products and is making solid progress on a production release, which are resulting in compelling royalty revenue for Atomera. During this past quarter, we've had excellent cooperation, including in-person team meetings with a goal of optimizing device performance and developing a high-volume manufacturing process. The timing of this developmental effort is SD's proprietary information, but I can tell you that our teams have a very tight working relationship.

Scott A. Bibaud: To that end, I'd like to take a little deeper into each of the market segments where our primary customers are making significant progress towards JDAs and or license agreements. First, MST for Power Chip Technology. Atomera continues to work very closely with SE Microelectronics on their next generation smart power products and is making solid progress on a production release which will result in compelling royalty revenue for Atomera. During this past quarter, we had excellent cooperation, including in-person team meetings with the goal of optimizing device performance and developing a high-volume manufacturing process. The timing of this developmental effort is ST's proprietary information.

Scott A. Bibaud: To that end, I'd like to take a look a little deeper into each of the market segments where our primary customers are making significant progress towards JDAs and or license agreements.

Scott A. Bibaud: First, MST for PowerChip Technology.

Speaker Change: Atomera continues to work very closely with SD Microelectronics on their next generation smart power products and is making solid progress on a production release which will result in compelling royalty revenue for Atomera.

Speaker Change: During this past quarter, we've had excellent cooperation, including in-person team meetings with the goal of optimizing device performance and developing a high-volume manufacturing process.

Speaker Change: The timing of this developmental effort is ST's proprietary information, but I can tell you that our teams have a very tight working relationship. We're meeting on a weekly basis and sharing a mutual goal of getting to production as fast as possible.

Scott A. Bibaud: But I can tell you that our teams have a very tight working relationship. We meet on a weekly basis and share a mutual goal of getting to production as fast as possible. This remains our highest priority. As you know, we are working with SD Smart Power Division, which belongs to their APMS group, which had $1.9 billion in revenue for the second quarter of this year. So the potential of this business is very attractive. The power chip segment of the semiconductor market overall is expected to be approximately $33 billion in 2023.

Scott Bibaud: We're meeting on a weekly basis and sharing a mutual goal of getting to production as fast as possible. This remains our highest priority. As you know, we are working with ST Smart Power Division, which belongs to their APMS group, which had 1.9 billion in revenue for the second quarter of this year. So the potential of this business is very attractive. The power chip segment of the semiconductor market overall was approximately $33 billion in 2023. So the opportunity represented by all our potential power customers is quite significant.

Speaker Change: This remains our highest priority.

Speaker Change: As you know, we are working with SD's Smart Power Division, which belongs to their APMS group, which had $1.9 billion in revenue for the second quarter of this year. So the potential of this business is very attractive.

Speaker Change: The power chip segment of the semiconductor market overall was approximately $33 billion in 2023, so the opportunity represented by all our potential power customers is quite significant.

Scott A. Bibaud: So the opportunity represented by all our potential power customers is quite significant. Last quarter I spoke about the large number of proposals Atomera has outstanding, and that number has continued to grow. I will highlight just one of those large and diversified customers who accelerated their work with us as a result of the ST announcement and are accelerating towards integration into the next generation device. After reviewing the details of our technology, this customer decided to license our MST CAD software and spent several months modeling how MST could improve their transistor performance. Simulations of their actual devices showed even better performance gains than we had claimed, which has led to a proposal for them to run wafers and license MST from us, which we hope to do in the coming quarter.

Scott Bibaud: Last quarter, I spoke about the large number of proposals Atomera has outstanding, and that number has continued to grow. I will highlight just one of those large and diversified customers who accelerated their work with us as a result of the ST announcement and attracting towards integration into the next generation devices. After reviewing the details of our technology, this customer decided to license our MST CAD software and spent several months modeling how MST could improve their transistor performance. Simulations of their actual devices showed even better performance gains than we had claimed, which has led to a proposal for them for running wafers and licensing MST from us, which we hope to do in the coming quarters.

Speaker Change: Last quarter, I spoke about the large number of proposals Atomera has outstanding, and that number has continued to grow. I will highlight just one of those large and diversified customers who accelerated their work with us as a result of the ST announcement and a tracking towards integration into the next generation devices.

Speaker Change: After reviewing the details of our technology, this customer decided to license our MST-CAD software and spent several months modeling how MST could improve their transistor performance.

Speaker Change: Simulations of their actual devices showed even better performance gains than we had claimed, which has led to a proposal for them for running wafers and licensing MST from us, which we hope to do in the coming quarters.

Scott Bibaud: Next, the SOI market, which is a large and growing segment with sales of $1.4 billion in 2022, and a 15% growth rate going forward. RFS OI makes the majority of SOI revenue today because of strong adoption in 5G cellular finance, where growing bandwidth requirements make continued innovation to meet market needs particularly challenging. Our announcement this month of a new MST substrate based on SoyTech's leading RFS OI technology provided a major step forward, solving a common problem among RF designers, which is detailed in my blog and Hadecki's presentation at Semicons. Putting MST on SoyTech's thin RFS OI vapors gives the industry a solution that is easy to adopt and test as they develop next-gen products.

Scott A. Bibaud: Next, the SOI market, which is a large and growing segment with sales of $1.4 billion in 2022 and a 15% growth rate going forward. RFSOI makes the majority of SOI revenue today because of strong adoption in 5G cellular front ends, where growing bandwidth requirements make continued innovation to meet market needs particularly challenging. Our announcement this month of a new MS3 substrate based on Soitech's leading RFSOI technology provided a major step forward, solving a common problem among RF designers, which is detailed in my blog and Hideki's presentation at Semicon.

Speaker Change: Next, the SOI market, which is a large and growing segment with sales of $1.4 billion in 2022 and a 15% growth rate going forward.

Speaker Change: RFSOI makes the majority of SOI revenue today because of strong adoption in 5G cellular front-ends, where growing bandwidth requirements make continued innovation to meet market needs particularly challenging.

Speaker Change: Our announcement this month of a new MS3 substrate, based on Soytec's leading RFSOI technology, provided a major step forward, solving a common problem among RF designers, which is detailed in my blog and Hideki's presentation at Semicon.

Scott A. Bibaud: Putting MST on Soytec's thin RFSOI wafers gives the industry a solution that is easy to adopt and test as they develop next-gen products. Our customers specifically asked us to address this issue and streamline the supply chain, which is what this announcement was about. This high-quality substrate will help speed their development, which is important to both them and to us.

Speaker Change: Putting MST on Soytec's thin RFSOI wafers gives the industry a solution that is easy to adopt and test as they develop next-gen products.

Scott Bibaud: Our customer specifically asked us to address this issue and streamline the supply chain, which is what this announcement was about. This high-equality substrate will help speed their development, which is important to both them and to us. At America continues to work with the majority of RFS OI wafer consumers, so we are very well positioned in this market.

Speaker Change: Our customers specifically asked us to address this issue and streamline the supply chain, which is what this announcement was about.

Speaker Change: This higher quality substrate will help speed their development, which is important to both them and to us. Atomera continues to work with the majority of RFSOI wafer consumers, so we are very well positioned in this market.

Scott A. Bibaud: Atomera continues to work with the majority of RFSOI wafer consumers, so we are very well positioned in this market for memory technology. DRAM remains a very large market segment, approximately $112 billion in 2023, or greater than 20% of the overall semiconductor market. Atomera is working at various stages of adoption with more than one of the major memory manufacturers. Because of the somewhat commoditized nature of DRAM, these customers are laser focused on cost, which historically has made them late adopters of new materials that could affect yield or increase cost, including buyer royalty.

Scott Bibaud: Memory technology. DRM remains a very large market segment, approximately $112 billion in 2023, are greater than 20% of the overall semiconductor. At America is working at various stages of adoption with more than one of the major memory manufacturers. Because of the somewhat commoditized nature of DRM, these customers are laser-focused on costs, which historically has made them lead adopters of new materials that could affect yields or increased costs, including bio royalties. Once adopted, though, new material technologies have long legs, and wafer volumes are the highest in the industry. We're excited about the potential for our technology in this space because we believe it provides real die size and margin improvement potential for our customers, even after paying us a royalty.

Speaker Change: Memory technology. DRAM remains a very large market segment. Approximately $112 billion in 2023, or greater than 20% of the overall semiconductor industry.

Speaker Change: Atomera is working at various stages of adoption with more than one of the major memory manufacturers.

Speaker Change: Because of the somewhat commoditized nature of DRAM, these customers are laser focused on cost, which historically has made them late adopters of new materials that could affect yield or increase cost, including buyer royalties.

Scott A. Bibaud: Once adopted, though, new material technologies have long legs, and wafer volumes are the highest in the industry. We're excited about the potential for our technology in this space because we believe it provides real die size and margin improvement potential for our customers, even after paying us a royalty. The gate all-around advanced node market is one of the largest by revenue and the smallest by device count, approximately $150 billion in 2023, more than 28% of the overall semiconductor market. Atomera is working with the major gate all-around manufacturers on solutions for the leading nodes down to 3 nanometers. But we are also exploring development at the nodes leading from 2 nanometers down into the angstrom range.

Speaker Change: Once adopted though, new material technologies have long legs and wafer volumes are the highest in the industry.

Speaker Change: We're excited about the potential for our technology in this space because we believe it provides real die size and margin improvement potential for our customers, even after paying us a royalty.

Scott Bibaud: The gate all around, Advanced Node Market, is one of the largest by revenue and the smallest by device count, approximately $150 billion in 2023, more than 28% of the overall semiconductor industry. Atomera is working with the major gate all around manufacturers on solutions for the leading nodes down to three nanometers, but we are also exploring development at the nodes leading from two nanometers down into the angstrom range. The revenue potential for Atomera might be the highest in this market segment because the cost of leading logic chips is higher than other semiconductor products. Our MST technology could add significant value to these devices that are at the heart of the AI revolution, driving higher performance, lower power consumption, and better yield.

Speaker Change: The gate-all-around advanced node market is one of the largest by revenue and the smallest by device count, approximately $150 billion in 2023, more than 28% of the overall semiconductor industry.

Speaker Change: Atomera is working with the major gate-all-around manufacturers on solutions for the leading nodes down to 3 nanometers. But we are also exploring development at the nodes leading from 2 nanometers down into the angstrom range.

Scott A. Bibaud: The revenue potential for Atomera might be the highest in this market segment because the cost of leading logic chips is higher than other semiconductor products. Our MST technology could add significant value to these devices that are at the heart of the AI revolution, driving higher performance, lower power consumption, and better yield. On our website, we have white papers describing exactly how MST provides these benefits.

Speaker Change: The revenue potential for Atomera might be the highest in this market segment because the cost of leading logic chips is higher than other semiconductor products.

Speaker Change: Our MST technology could add significant value to these devices that are at the heart of the AI revolution, driving higher performance, lower power consumption, and better yields.

Scott Bibaud: On our website, we have white papers describing exactly how MST provides these benefits.

Speaker Change: On our website, we have white papers describing exactly how MST provides these benefits.

Scott Bibaud: That said, we're not sure when we might be able to announce something specific in the gate all around sector because the development programs are so large and the timeframes are so variable. But the interest and work is real, and the upside for us is significant. In each of these segments, we are hopeful we will have JDAs or license agreements to announce in the coming quarters.

Scott A. Bibaud: That said, we're not sure when we might be able to announce something specific in the gated all around sector because the development programs are so large and the timeframes are so variable, but the interest and work are real, and the upside for us is significant. In each of these segments, we are hopeful we will have JDAs or license agreements to announce in the coming quarter. Now a quick update on our development of gallium nitride technology.

Speaker Change: That said, we're not sure when we might be able to announce something specific in the Gate All-Around sector because the development programs are so large and the timeframes are so variable, but the interest and work is real and the upside for us is significant.

Speaker Change: In each of these segments, we are hopeful we will have JDAs or License Agreements to announce in the coming quarters.

Scott Bibaud: Now a quick update on our development and gallium nitride technology. Last quarter, we highlighted MST's ability to act as a relaxing layer, relieving structural challenges posed by compound semiconductors. Early results give us great hope that MST can help solve the substrate quality and warp problems and damage to GaN wafers, which has impeded more scaling in the past. It might initially appear that GAN is a departure from our core business, but it is not. MST GAN would be applied in the manufacturing process in the same manner as the other applications we've already covered to improve the yield of a myriad of GAN-related semiconductor products.

Speaker Change: Now a quick update on our development in gallium nitride technology. Last quarter, we highlighted MST's ability to act as a relaxing layer, relieving structural challenges posed by compound semiconductors.

Scott A. Bibaud: Last quarter, we highlighted MST's ability to act as a relaxing layer, relieving structural challenges posed by compound semiconductors. Early results give us great hope that MSD can help solve the substrate quality and warp problems endemic to GAN wafers, which have impeded more scaling in the past. It might initially appear that GAN is a departure from our core business, but it is not.

Speaker Change: Early results give us great hope that MSD can help solve the substrate quality and warp problems endemic to GaN wafers, which has impeded more scaling in the past.

Speaker Change: It might initially appear that GAN is a departure from our core business, but it is not. MST GAN would be applied in the manufacturing process in the same manner as the other applications we've already covered to improve the yield of a myriad of GAN-related semiconductor products.

Scott A. Bibaud: MSD GAN would be applied in the manufacturing process in the same manner as the other applications we've already covered to improve the yield of a myriad of GAN-related semiconductor products. The power GAN market alone grew by 41% in 2023 and will likely increase at a CAGR of 46% over the next five years, potentially exceeding $2 billion per year by 2028. Interest from potential customers and partners has been surprisingly strong. Indeed, we are already in discussions with four potential customers and partners.

Scott Bibaud: The power GAN market alone grew by 41% in 2023, and will likely increase at a cager of 46% over the next five years, potentially exceeding $2 billion per year by 2028. Interest by potential customers and partners has been surprisingly strong. Indeed, we are already in discussions with four potential customers and partners. Because GAN is a material under investigation at most semiconductor companies these days, we see it as adding another dimension to our existing relationships, offering a smooth path to adoption. But it is early days, and our R&D team is still working to turn this into a full product release.

Speaker Change: The power GAN market alone grew by 41% in 2023 and will likely increase at a CAGR of 46% over the next five years, potentially exceeding $2 billion per year by 2028.

Speaker Change: Interest by potential customers and partners has been surprisingly strong. Indeed, we are already in discussions with four potential customers and partners.

Scott A. Bibaud: Because GAN is a material under investigation at most semiconductor companies these days, we see it as adding another dimension to our existing relationships, offering a smooth path to adoption. But it is early days, and our R&D team is still working to turn this into a full product release. We believe with this high level of customer, early revenues from MST GAN might be possible in the near term, even possibly later this year. I'll go through other customer activities briefly.

Speaker Change: Because GAN is a material under investigation at most semiconductor companies these days, we see it as adding another dimension to our existing relationships, offering a smooth path to adoption.

Speaker Change: But it is early days and our R&D team is still working to turn this into a full product release. We believe with this high level of customer interest, early revenues from MST GAN might be possible in the near term, even possibly later this year.

Scott Bibaud: We believe with this high level of customer interest, early revenues from MST GAN might be possible in the near term, even possibly later this year.

Scott Bibaud: I'll go through other customer activities briefs. We continue working with JDA1 to move into a more definitive production program, but have not yet achieved this result. JDA2, however, is an active negotiation with us on a license now that we have results from wafer runs completed in the last quarter. We hope to make this a comprehensive company agreement covering multiple technologies. Likewise, we continue to work with our other licensees to include MST in the next generation process nodes, though MSTCAD and wafer runs. In the last quarter, we've also started engaging on some new opportunities, including within existing customers.

Speaker Change: I'll go through other customer activities briefly.

Scott A. Bibaud: We continue working with JDA-1 to move into a more definitive production program, but we have not yet achieved this result. JDA 2, however, is in active negotiations with us on a license now that we have results from wafer runs completed in the last quarter. We hope to make this a comprehensive company agreement covering multiple technologies. Likewise, we continue to work with our other licensees to include MST in the Next Generation Process Nodes, through MSTCAD and WAFERRUN. In the last quarter, we've also started engaging in some new opportunities, including within existing customers. However, progress in converting these engagements to licenses on the path to production has not met our expectations. We know that

Speaker Change: We continue working with JDA-1 to move into a more definitive production program, but have not yet achieved this result.

Speaker Change: JDA too, however, is in active negotiations with us on a license now that we have results from wafer runs completed in the last quarter. We hope to make this a comprehensive company agreement covering multiple technologies.

Speaker Change: Likewise, we continue to work with our other licensees to include MST in the Next Generation Process Nodes.

Speaker Change: through MSTCAD and WaferRuns. In the last quarter, we've also started engaging on some new opportunities, including within existing customers.

Scott Bibaud: Progress in converting these engagements to licenses on the past production has not met our expectations. We know that. Our ability to develop technology and to build customer interest has been excellent, but we need to do better at closing deals.

Speaker Change: Progress in converting these engagements to licenses on the path to production has not met our expectations.

Scott A. Bibaud: Our ability to develop technology and to build customer interest has been excellent, but we need to do better at closing deals. Recently, we took a hard look at our sales and marketing efforts to try to find ways to improve. As a result of this process, we decided to make changes that start with bringing on a new head of business development and marketing, Sean Thomas.

Speaker Change: We know that. Our ability to develop technology and to build customer interest has been excellent, but we need to do better at closing deals.

Scott Bibaud: Recently, we've taken a hard look at our sales and marketing efforts to try to find ways to improve. As a result of this process, we decided to make changes to start with bringing on a new head of business development marketing, Sean Thomas. Sean has the perfect background to help take Adamara to the next level. Not only does he have a deep background in device technology, materials, and epi, his detailed understanding of the challenges the industry faces and the relationships he brings will help Adamara more successfully convert our compelling technology into revenue-generating business.

Speaker Change: Recently, we've taken a hard look at our sales and marketing efforts to try to find ways to improve.

Speaker Change: As a result of this process, we decided to make changes that start with bringing on a new head of business development and marketing, Sean Thomas.

Scott A. Bibaud: Sean has the perfect background to help us take Atomera to the next level. Not only does he have a deep background in device technology, materials, and EPI, but his detailed understanding of the challenges the industry faces and the relationships he brings will help Atomera more successfully convert our compelling technology into revenue-generating businesses. Before wrapping up, I'd like to highlight one of our new technologies called MST-SPX, targeting 5 to 48 volt transistors.

Speaker Change: Sean has the perfect background to help us take Atomera to the next level.

Speaker Change: Not only does he have a deep background in device technology, materials, and EPI,

Speaker Change: His detailed understanding of the challenges the industry faces and the relationships he brings will help Atomera more successfully convert our compelling technology into revenue generating business.

Scott Bibaud: Before wrapping up, I'd like to highlight one of our new technologies called MSTSBX targeting five to 48-volt transistors. On Friday, we released a white paper detailing what we've accomplished, but allow me to give a brief summary. We have found that combining MST with the advanced structures used in high power transistors allows us to achieve better performance than has been published by any other semiconductor maker, as seen in the chart on slide five, where lower is better. This is pretty amazing stuff. We've also calculated that it makes financial sense for a customer to implement MST at less than a 3% improvement in RSP.

Speaker Change: Before wrapping up, I'd like to highlight one of our new technologies called MST SPX, targeting 5 to 48 volt transistors.

Scott A. Bibaud: On Friday, we released a white paper detailing what we've accomplished, but allow me to give a brief summary. We have found that combining MST with the advanced structures used in high-power transistors allows us to achieve better performance than has been published by any other semiconductor maker, as seen in the chart on slide 5, where lower is better. This is pretty amazing stuff. We've also calculated that it makes financial sense for a customer to implement MST for less than a 3% improvement in RSP.

Speaker Change: On Friday, we released a white paper detailing what we've accomplished, but allow me to give a brief summary.

Speaker Change: We have found that combining MST with the advanced structures used in high-power transistors allows us to achieve better performance than has been published by any other semiconductor maker, as seen in the chart on slide 5, where lower is better.

Speaker Change: This is pretty amazing stuff.

Speaker Change: We've also calculated that it makes financial sense for a customer to implement MST at less than a 3% improvement in RSP.

Scott A. Bibaud: But what we're seeing and what we're showing on this chart show improvements between 15% and 30%, confirming that our technology offers best-in-class performance and compelling economics for next-generation power chips. This is just one of the latest accomplishments from a team that continues to crank out impressive advancements across many different technology sectors. At Semicon West earlier this month, Dave Thompson, Intel's VP of process technology and research, gave a talk on the solutions the industry will need in the future for evolving transistor architecture. Virtually all the examples he brought up, including source-strain resistance, channel mobility, dopant control, gate dielectric issues, and even gallium nitride, are things Atomera is working on. His message was clear.

Scott Bibaud: But what we're seeing and what we're showing on this chart show improvements between 15% and 30%. Confirming that our technology offers best-in-class performance and compelling economics for next-generation power chips.

Speaker Change: But what we're seeing, and what we're showing on this chart, show improvements between 15 and 30 percent, confirming that our technology offers best-in-class performance and compelling economics for next-generation power chips.

Scott Bibaud: This is just one of the latest accomplishments from a team that continues to crank out impressive advancements across many different technology segments. At Summick on West earlier this month, Dave Thompson, entails VP of Process Technology and Research, gave a talk on the solutions the industry will need in the future for evolving transistor architectures. Virtually all the examples he brought up, including source drain resistance, channel mobility, dopant control, gig dielectric issues, and even gallium nitride where things Adameric is working on. His message was clear. The industry sees increasing technical challenges moving beyond three nanometers and finding solutions, which require a strong cooperative effort by ecosystem partners across the industry.

Speaker Change: This is just one of the latest accomplishments from a team that continues to crank out impressive advancements across many different technology segments.

Speaker Change: At Semicon West earlier this month, Dave Thompson, Intel's VP of Process Technology and Research, gave a talk on the solutions the industry will need in the future for evolving transistor architectures.

Speaker Change: Virtually all the examples he brought up including source drain resistance, channel mobility, dopant control, gate dielectric issues, and even gallium nitride were things Atomera is working on.

Scott A. Bibaud: The industry sees increasing technical challenges moving beyond three nanometers, and finding solutions will require a strong cooperative effort by ecosystem partners across the industry. This is the type of statement that entirely validates the direction we've been taking at Atomera and shows the importance and potential of the work we're doing today. For this reason, we are very optimistic about the prospects of our company. Our SD engagement is progressing nicely and should form the base of our revenue starting next year.

Speaker Change: His message was clear, the industry sees increasing technical challenges moving beyond 3nm and finding solutions will require a strong cooperative effort by ecosystem partners across the industry.

Scott Bibaud: This is a type of statement that entirely validates the direction we've been taking at Atomera and shows the importance and potential of the work we're doing today.

Speaker Change: This is a type of statement that entirely validates the direction we've been taking at Atomera and shows the importance and potential of the work we're doing today.

Scott Bibaud: For this reason, we are very optimistic about the prospects of our company. Our SC engagement is progressing nicely and should form the base of our revenue starting next year, and each of the other segments I've outlined can grow on top of that base.

Speaker Change: For this reason, we are very optimistic about the prospects of our company. Our SE engagement is progressing nicely and should form the base of our revenue starting next year, and each of the other segments I've outlined can grow on top of that base.

Scott A. Bibaud: And each of the other segments I've outlined can grow on top of that base. This past quarter, we also submitted our first of hopefully many proposals under the Chips and Sciences Act. Atomera's potential is being recognized across the industry, and it's only a matter of time before several of these potential opportunities turn into more business prospects for Atomera. We're working very hard to make that happen. Now, Frank will review our financials.

Scott Bibaud: This past quarter, we also submitted our first of hopefully many proposals under the Chips and Sciences Act. Atomera's potential is being recognized across the industry, and it's only a matter of time before several of these potential opportunities turn into more business prospects for Atomera. We're working very hard to make that happen.

Speaker Change: This past quarter we also submitted our first of hopefully many proposals under the Chips and Sciences Act.

Frank: Atomera's potential is being recognized across the industry and it's only a matter of time before several of these potential opportunities turn into more business prospects for Atomera. We're working very hard to make that happen. Now Frank will review our financials.

Frank Laurencio: Now, Frank will review our financials.

Frank Laurencio: Thank you, Scott. At the close of the market today, we issued a press release, and I don't think our results for the second quarter of 2024. This slide shows our summary financials. Our gap net loss for the three months ended June 30, 2024, was $4.4 million or 16 cents per share compared to a net loss of $5.2 million for 21 cents per share in the second quarter of 2023. In Q1 of 2024, our gap net loss was $4.8 million, which was 19 cents per share. Revenues were $72,000 in Q2 of 2024 compared to $18,000 in Q1 and 0 in Q2 of 2023.

Francis B. Laurencio: At the close of the market today, we issued a press release announcing our results for the second quarter of 2024. This slide shows our summary financials. Our gap net loss for the three months ended June 30, 2024, was $4.4 million, or $0.16 per share, compared to a net loss of $5.2 million, or $0.21 per share, in the second quarter of 2023. In Q1 of 2024, our gap net loss was $4.8 million, which was $0.19 per share.

Frank: Thank you, Scott. At the close of the market today, we issued a press release announcing our results for the second quarter of 2024.

Frank: This slide shows our summary financials.

Frank: Our gap net loss for the three months ended June 30, 2024, was $4.4 million, or $0.16 per share, compared to a net loss of $5.2 million, or $0.21 per share, in the second quarter of 2023.

Frank: In Q1 of 2024, our gap net loss was $4.8 million, which was 19 cents per share.

Francis B. Laurencio: Revenues were $72,000 in Q2 of 2024 compared to $18,000 in Q1 and zero in Q2 of 2023. GAAP operating expenses were $4.6 million in Q2 of 2024, which was a decrease of approximately $730,000 from $5.4 million of OPEX in Q2 of 2023, mainly due to a $603,000 decline in R&D expenses, primarily reflecting the closure of our outsource foundry TSI semiconductor in the first Sales and marketing expense decreased by $186,000, reflecting lower headcount, while G&A was relatively unchanged.

Frank: Revenues were $72,000 in Q2 of 2024 compared to $18,000 in Q1 and $0 in Q2 of 2023.

Frank Laurencio: Gap operating expenses were $4.6 million in Q2 of 2024, which was a decrease of approximately $730,000 from $5.4 million of OpEx in Q2, 2023. Mainly due to a $603,000 decline in R&D expenses, primarily reflecting the closure of our outsourced foundry TSI Semiconductor in the first quarter of this year. Sales and marketing expense decreased by $186,000, reflecting lower headcount, while GNA was relatively unchanged. Sequentially, our gap operating expenses decreased from Q1 2024 due to the same factors that drove the decline as compared to Q2 of last year. Non-GAAP net loss in Q2, 2024 was $3.6 million and compares to a loss of $4.3 million in Q2, 2023.

Frank: GAAP operating expenses were $4.6 million in Q2 of 2024, which was a decrease of approximately $730,000 from $5.4 million of OPEX in Q2 2023.

Frank: mainly due to a $603,000 decline in R&D expenses.

Frank: primarily reflecting the closure of our outsource foundry TSI semiconductor in the first quarter of this year.

Frank: Sales and marketing expense decreased by $186,000, reflecting lower headcount, while G&A was relatively unchanged.

Francis B. Laurencio: sequentially, our gap operating expenses decreased from Q1 2024 due to the same factors that drove the decline as compared to Q2 of last year. Non-GAAP net loss in Q2 2024 was $3.6 million, which compares to a loss of $4.3 million in Q2 2023. And as with our GAAP results, the smaller loss was primarily due to lower R&D and sales and marketing expenses. Sequentially, non-GAAP net loss declined by $363,000 from Q1 2024 due to our lower operating expenses, as well as a $52,000 increase in revenue. The differences between GAAP and non-GAAP operating expenses in all periods presented are primarily due to non-cash stock compensation expenses, which were approximately a million dollars for each of the periods presented here.

Frank: Sequentially, our gap operating expenses decreased from Q1 2024 due to the same factors that drove the decline as compared to Q2 of last year.

Frank: non-GAAP net loss in Q2 2024 was $3.6 million and compares to a loss of $4.3 million in Q2 2023.

Frank Laurencio: And as with our gap results, the smaller loss was primarily due to lower R&D and sales and marketing expenses. Sequentially, non-gap net loss declined by $363,000 from Q1 2024 due to our lower operating expenses, as well as a $52,000 increase in revenue. The differences between gap and non-gap operating expense in all periods presented are primarily due to non-cash stock compensation expenses, which were approximately a million dollars for each of the periods presented here. Our balance of cash, cash equivalents, and short-term investments on June 30, 2024, was 18.3 million dollars compared to 19.3 million at the end of Q1, 2024.

Frank: And as with our gap results, the smaller loss was primarily due to lower R&D and sales and marketing expenses.

Frank: Sequentially, non-GAAP net loss declined by $363,000 from Q1 2024 due to our lower operating expenses, as well as a $52,000 increase in revenue.

Frank: The differences between GAAP and non-GAAP operating expense in all periods presented are primarily due to non-cash stock compensation expenses, which were approximately a million dollars for each of the periods presented here.

Francis B. Laurencio: Our balance of cash, cash equivalents, and short-term investments on June 30, 2024 was $18.3 million, compared to $19.3 million at the end of Q1. During the most recent quarter, we used $3.2 million of cash in operating activities compared to $4.1 million in the first quarter of this year. During Q2, we sold approximately 669,000 shares under our ATM facility at an average price per share of $3.82, resulting in net proceeds of approximately $2.4 million. As of June 30th, we had 27.6 million shares outstanding.

Frank: Our balance of cash, cash equivalents, and short-term investments on June 30, 2024 was $18.3 million, compared to $19.3 million at the end of Q1, 2024.

Frank Laurencio: During the most recent quarter, we used $3.2 million of cash in operating activities compared to $4.1 million in the first quarter of this year. During Q2, we sold approximately $669,000 shares under our ATM facility at an average price per share of $3.82, resulting in net proceeds of approximately $2.4 million dollars. As in June 30, we had 27.6 million shares of standing. Revenue in Q2 was $72,000 and consisted of $50,000 of engineering services revenue from shipment of wafers to a customer in phase 3 and the balance from recognizing three months of MST CAD license revenue.

Frank: During the most recent quarter, we used $3.2 million of cash in operating activities compared to $4.1 million in the first quarter of this year.

Frank: During Q2, we sold approximately 669,000 shares under our ATM facility at an average price per share of $3.82, resulting in net proceeds of approximately $2.4 million.

Frank: As of June 30th, we had 27.6 million shares outstanding.

Francis B. Laurencio: Revenue in Q2 was $72,000 and consisted of $50,000 in engineering services revenue from shipment of wafers to a customer in phase three, and the balance from recognizing three months of MST CAD license revenue. For Q3, we expect our total revenue will be approximately $20,000, consisting of MST CAD license revenue. As we've stated previously, the next major revenue milestone under our agreement with ST will be the grant of the distribution license upon completion of their qualification process, which is largely dependent on ST's development schedule, which we have limited ability to control.

Frank: Revenue in Q2 was $72,000 and consisted of $50,000 of engineering services revenue from shipment of wafers to a customer in phase 3 and the balance from recognizing three months of MST CAD license revenue.

Frank Laurencio: For Q3, we expect our total revenue will be approximately $20,000, consisting of MST CAD license revenue. As we stated previously, the next major revenue milestone under our agreement ST will be the grant of the distribution license upon completion of their qualification process, which is largely dependent on ST's development schedule, in which we have limited ability to control. Accordingly, I cannot provide guidance on the timing for recognizing this license revenue from ST. Moving to our expense guidance, our operating expenses so far this year came in substantially lower than we had budgeted due to lower R&D spending on account of the loss of TSI and lower sales and marketing head count.

Frank: For Q3, we expect our total revenue will be approximately $20,000, consisting of MSTCAD license revenue.

Frank: As we stated previously, the next major revenue milestone under our agreement with ST will be the grant of the distribution license upon completion of their qualification process.

Frank: which is largely dependent on ST's development schedule in which we have limited ability to control.

Francis B. Laurencio: Accordingly, I cannot provide guidance on the timing of recognizing this license revenue from FT. Moving to our expense guide, our operating expenses so far this year have come in substantially lower than we had budgeted due to lower R&D spending on account of the loss of TSI and lower sales and marketing hedges. So for the full year, we now expect our OPEX to come in lower than my previous guidance. We expect that 2024 non-GAAP operating expenses will be in a range of $16.25 to $16.75 million.

Frank: Accordingly, I cannot provide guidance on the timing for recognizing this license revenue from FT.

Frank: Moving to our expense guidance, our operating expenses so far this year came in substantially lower than we had budgeted due to lower R&D spending on account of the loss of TSI and lower sales and marketing headcount.

Frank Laurencio: So, for the full year, we now expect our op-ex to come in lower than my previous guidance. We expect that 2024 non-GAAP operating expense will be in a range of $16.25 to $16.75 million. In addition to our recent business development hire, we expect to add at least one more head count this year in sales and marketing to help accelerate closing deals. We're also planning to add engineering head count to ensure coverage of all our technology areas and to support converting customers to production.

Frank: So for the full year, we now expect our OPEX to come in lower than my previous guidance.

Frank: We expect that 2024 non-GAAP operating expense will be in a range of $16.25 to $16.75 million.

Francis B. Laurencio: In addition to our recent business development hire, we expect to add at least one more headcount this year in sales and marketing to help accelerate closing deals. We're also planning to add engineering headcount to ensure coverage of all our technology areas and to support converting customers to production. With that, I'll turn the call back over to Scott for a few summary remarks before we open the call up to questions.

Frank: In addition to our recent business development hire, we expect to add at least one more headcount this year in sales and marketing to help accelerate closing deals.

Frank: We're also planning to add engineering headcount to ensure coverage of all our technology areas and to support converting customers to production.

Scott Bibaud: With that, I'll turn the call back over to Scott for a few summary remarks before we open the call up to questions.

Frank: With that, I'll turn the call back over to Scott for a few summary remarks before we open the call up to questions.

Scott Bibaud: Scott? Thank you, Frank. Adamair continues to make strong progress, and we are confident that we will convert more of our many customer engagements into license and production opportunities in the near future.

Frank: Scott.

Scott A. Bibaud: Atomera continues to make strong progress, and we are confident that we will convert more of our many customer engagements into license and production opportunities in the near future. As I said earlier, ST should form a revenue base for our business, while the other exciting segments discussed today will help us to build a diversified, sustained business around that first deal. Thanks as always for your support.

Scott A. Bibaud: Thank you, Frank.

Scott A. Bibaud: Atomera continues to make strong progress.

Scott A. Bibaud: And we are confident that we will convert more of our many customer engagements into license and production opportunities in the near future.

Scott Bibaud: As I said earlier, ST should form a revenue base for our business, while the other exciting segments discussed today will help us to build a diversified, sustained business around that first deal. Thanks, as always, for your support.

Scott A. Bibaud: As I said earlier, ST should form a revenue base for our business, while the other exciting segments discussed today will help us to build a diversified, sustained business around that first deal. Thanks, as always, for your support.

Mike Bishop: Mike, we'll now take questions. Okay, 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 and relay them to management.

Mike Bishop: Mike will now take questions. Okay, 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 and relay them to Madam. Alternatively, you can click the raise hand button, and we may call on you to ask your question live. And right now, our first question comes from Richard Shannon of Craig Hallam. Richard, if you would unmute and go ahead, you may begin.

Scott A. Bibaud: Mike will now take questions.

Mike Bishop: Okay, 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 and relay them to management.

Mike Bishop: Alternatively, you can click the raise hand button, and we may call on you to ask your question law.

Mike Bishop: Alternatively you can click the raise hand button and we may call on you to ask your question live.

Mike Bishop: And right now, our first question comes from Richard Shannon of Craig Hallem.

Speaker Change: And right now, our first question comes from Richard Shannon of Craig Hallam. Richard, if you would unmute and go ahead and you may begin.

Richard Shannon: Richard, if you would unmute and go ahead, you may begin. Great, thanks Scott Frank. Thanks for let me ask a few questions here.

Richard Cutts Shannon: Great, thanks, Scott, and Frank. Thanks for letting me ask a few questions here. Let's hear maybe just to follow on an important topic for the last year with the announcement of ST here. Your language didn't really say anything about expectations for, you know, relative to your initial commentary about how long this would take. Is it fair to say that that timeframe is still in play here, or have there been no changes as far as you know, or how would you characterize that given that you're limited and what you in the verb, as you can tell us Scott?

Richard Cutts Shannon: Great, thanks Scott. Frank, thanks for letting me ask you a few questions here.

Scott Bibaud: Let's hear maybe just follow on an important topic for the last year with announcement of ST here. Your language didn't really say anything about expectations for, you know, relative to your initial commentary about how long this would take. Is it fair to say that that time frame is still in play here or no changes as far as you as you know, or how would you characterize that given that you're you're limited in what you in the verb as you can tell us. Yeah, I think that it's a challenging question to answer, Richard. So, as I said in my prepared remarks, ST owns the schedule for this.

Richard Cutts Shannon: Let's hear, maybe just to follow on an important topic for the last year with the announcement of ST here, your language didn't really say anything about expectations for, you know, relative to your initial commentary about how long this would take.

Speaker Change: Is it fair to say that that time frame is still in play here or no changes as far as you know, or how would you characterize that given that you're limited in the verbage you can tell us, Scott?

Richard Cutts Shannon: Yeah, I think that's a challenging question to answer, Richard. So, as I said in my prepared remarks, ST owns the schedule for this. They specifically asked us not to talk about the schedule. So to the extent I say anything about my original estimate, which was an estimate about what I thought a typical company would do, then I kind of wonder, Are they saying they're running behind on top or after that?

Scott A. Bibaud: It's a challenging question to answer, Richard. So as I said in my prepared remarks, ST owns the schedule for this. They specifically asked us not to talk about the schedule. So to the extent I say anything about my original estimate, which was an estimate about what I thought a typical company would do, then I kind of...

Scott Bibaud: They specifically asked us not to talk about the schedule. So it'd be extent to anything about my original estimate, which was an estimate about what I thought a typical company would do. And I kind of either saying they're running behind on top or after that. So what I can say is that we're, you know, all of us are working to push this thing into production as fast as possible; both them and us, and we're working very closely together. And I think progress is going very, very well.

Speaker Change: Are they saying they're running?

Speaker Change: behind on top or after that. So what I can say is that we're, you know, all of us are working to push this thing into production as fast as possible, both them and us, and we're working very closely together, and I think progress is going very, very well.

Scott A. Bibaud: What I can say is that we're all working to push this thing into production as fast as possible, both them and us, and we're working very closely together, and I think progress is going very, very well. Okay, well, we'll have to have to accept that and hopefully look forward to some more final news at some point in the near future. Thanks for that, Scott.

Richard Shannon: Well, we'll have to accept that and hopefully look forward to some more final news at some point in the near future. Thanks for that, Scott.

Speaker Change: Okay.

Speaker Change: We'll have to accept that and hopefully look forward to some more final news at some point in the near future. Thanks for that, Scott.

Richard Cutts Shannon: The second comment you made here in the prepared remarks is very interesting related to JDA II, where you said you're in active negotiations after some good testing results. Any more detail that you can offer there and maybe give us a perspective of, you know, other negotiations you've been in the past? You know, I know that I know that they're never short, but any characterization you can suggest of what might be normal for a length of time before getting to a satisfactory result?

Scott Bibaud: Second comments you made here in the prepared remarks are very interesting related to JDA to reociduring active negotiations after some good testing results. Any more detail that you can offer there and maybe give us perspective of, you know, other negotiations you've been in the past. You know, I know that I know that they're never short, but any characterization you can suggest of what you what might be normal for a length of time before getting to a satisfactory result. Yeah, so first of all, I think in the last call we mentioned that we had gotten some early peak at some data from JDA to look promising. We ended up getting to see the rest of that data, and it did actually come in and looked very good.

Speaker Change: Second comment you made here in the prepared remarks is very interesting related to JDA2, where you said you're in active negotiations after some good testing results.

Speaker Change: Any more detail that you can offer there and maybe give us perspective of other negotiations you've been in the past. I know that they're never short, but any characterization you can suggest of what might be normal for a length of time before getting to a satisfactory result.

Scott A. Bibaud: Yeah, so, first of all, I think on the last call we mentioned that we had gotten some early peak at some data from JDA-2 that looked promising. We ended up getting to see the rest of that data, and it did actually come in and looked very good. And so, yeah, there's interest on both sides to try to move this forward into a license or an agreement. And our goal is to really make that a license that enables them to use our technology across any of the technologies that they have in their company.

Speaker Change: Yeah, so first of all,

Speaker Change: I think in the last call, we mentioned that we had gotten some early peek at some data from JDA-2 that looked promising. We ended up getting

Speaker Change: to see the rest of that data, and it did actually come in and looked very good. And so, yeah, there's interest on both sides to try to move this forward into a license or an agreement and

Scott Bibaud: And so yeah, this is interesting both sides to try to move this forward into a license or an agreement, and our goal is to really make that a license that enables them to use our technology across any of the technologies that they have in their company. As the timing of negotiating a contract is very hard to say, I mean, the challenging thing is when you're working with very, very large companies, they tend to have a bit of a bureaucratic process of licensing technologies in with decision makers and a lot of different places that have to be touched.

Scott A. Bibaud: [inaudible] As for the timing of negotiating a contract, it's very hard to say. I mean, the challenging thing is when you're working with very, very large companies; they tend to have a bit of a bureaucratic process for licensing technologies to decision makers in a lot of different places that have to be touched. You know, in the past, we have negotiated some licenses that have gone pretty quickly and are only a matter of a few months.

Speaker Change: As to the timing of negotiating a contract, it's very hard to say.

Speaker Change: I mean, the challenging thing is when you're working with very, very large companies, they tend to have

Speaker Change: a bit of a bureaucratic process of licensing technologies in with decision makers in a lot of different places that have to be touched.

Scott Bibaud: You know, in the past we have negotiated some licenses that have gone pretty quickly and only a matter of a few months, and then we've had others that have taken much longer. I wouldn't say that they take a long time because there's like super hard negotiations and we're at logger's heads and can't reach agreement. It's more usually the case where we submit a proposal; they have to get agreement from a bunch of different groups to. to negotiate the next step on that. It takes time to organize that. And so generally our turn around on any proposal to make to us is in a day or two, and their turn around can be much longer.

Scott A. Bibaud: And then we've had others that have taken much longer. I wouldn't say that they took a long time because there were like super hard negotiations and we're at loggerheads and can't reach agreement. It's more usually the case where they submit a proposal, they have to get agreement from a bunch of different groups to negotiate the next step on that, it takes time to organize that, and so. Generally, our turnaround on any proposal they make to us is in a day or two, and their turnaround can be much longer.

Speaker Change: You know, in the past, we have negotiated some licenses that have gone pretty quickly in only a matter of a few months, and then we've had others that have taken much longer. I wouldn't say that they take a long time because

Speaker Change: There's like super hard negotiations and we're at loggerheads and can't reach agreement. It's more usually the case where we submit a proposal, they have to get agreement from a bunch of different groups to

Speaker Change: negotiate the next step on that, it takes time to organize that, and so

Richard Cutts Shannon: So, hard to predict. Okay, probably not unexpected, but I'll look forward to updates here on that one soon. So, good to see some progress there.

Speaker Change: Generally, our turnaround on any proposal they make to us is in a day or two, and their turnaround can be much longer. So, hard to predict.

Richard Shannon: So, hard to predict. Okay, I'm probably not unexpected, but I'll look forward to updates here on that one soon. So, good seats progress there.

Speaker Change: Okay, probably not unexpected, but I'll look forward to updates here on that one soon, so good to see some progress there.

Richard Shannon: Let's hear next question is on RFS OI. You made me an interesting press release a few weeks ago about some breakthroughs on some very thin wafers. I guess, you know, we've been hearing from you on the, you know, very strong testing results for years in this area. And based on the last call plus this press release you mentioned here, it seems like this is a pretty major breakthrough in terms of maybe getting closer and getting closer to a license for which I know you're working with the majority of the wafers starts in the industry here.

Richard Cutts Shannon: Let's see, our next question is on RFSOI. You made an interesting press release a few weeks ago about some breakthrough on some very thin wafers. I guess, you know, we've been hearing from you on the, you know, very strong testing results for years in this area. And based on the last call, plus this press release you mentioned here, it seems like this is a pretty major breakthrough in terms of maybe getting to, you know, getting closer to, and getting closer to, a license, for which I know you're working with the majority of the wafer starts in the industry here. Is this a fair way to characterize what you think is going on? Is it too early to tell?

Speaker Change: Let's see, our next question is on RFSOI. You made an interesting press release a few weeks ago about some breakthrough on some very thin wafers. I guess, you know, we've been hearing from you on

Speaker Change: The, you know, very strong testing results for years in this area. And based on the last call, plus this press release you mentioned here, it seems like this is a pretty major breakthrough in terms of maybe getting to, you know, getting closer and getting, you know, getting closer to a license.

Speaker Change: for which I know you're working with the majority of the wafer starts in the industry here. Is this a fair way to characterize what you think is going on? Is it too early to tell or just any characterization of the potential here, especially from a timing perspective in that space that's been seemingly active for so long?

Scott Bibaud: So, this is a fair way to characterize what you think is going on as it's really to tell or just any characterization of the potential here, especially from a timing perspective in that space that's been seemingly active for so long. I would say, you know, so the evolution of the solutions that we've had in RFS OI have come some ways over the years. In the last, more than a year, we've known about using much thinner wafers to start putting our MST down on. And we have been sending those wafers ourselves, or our customers have been thinning those wafers so that we can put MST down.

Scott A. Bibaud: Or just any characterization of the potential here, especially from a timing perspective in that space that's been seemingly active for so long? I would say, you know, so. The evolution of the solutions that we've had in RFSOI has come some ways over the years. For example, for the last more than a year, we have known about using much thinner wafers to start putting our MST down on, and we have been thinning those wafers ourselves, or our customers have been thinning those wafers so that we can put MST down. But it's a challenge to thin RFSOI wafers because they're, you know, they cause some quality issues on the edges of the wafers.

Speaker Change: I would say, you know, so.

Speaker Change: The evolution of the solutions that we've had in RFSOI have come some ways over the years. In the last

Speaker Change: More than a year, we've known about using much thinner wafers to start putting our MST down on, and we have been thinning those wafers ourselves, or our customers have been thinning those wafers so that we can put MST down.

Scott Bibaud: But it's challenged to thin RFS OI wafers because they're, you know, there causes some quality issues on edges of the wafers. And so, this announcement that we are working with SoyTech to make those wafers is a very important one. It takes the development substrates that we're working with kind of out of the R&D lab and into something that could be a production-quality device. Will that help make people move faster? I think it absolutely will. You're asking about whether it'll help them move to licenses. I can tell you that our customers were saying, "Hey, this is something we're worried about."

Speaker Change: But it's a challenge to thin RFSOI wafers because they're a

Speaker Change: You know, there are...

Speaker Change: causes some quality issues on edges of the wafers and so this announcement that we are working with Soytec to make those very thin wafers is a very important one. It takes the

Scott A. Bibaud: And so this announcement that we are working with Soytec to make those very thin wafers is a very important one. It takes the development substrates that we're working with kind of out of the R&D lab and into something that could be a production quality device. Will that help make people move faster?

Speaker Change: development substrates that we're working with kind of out of the R&D lab and into something that could be a production quality device.

Scott A. Bibaud: I think it absolutely will. You're asking about whether it'll help them move to licenses. I can tell you that our customers were saying, hey, this is something we're worried about. We want to know whether there'll be a, you know, production quality substrate for us to work with. And this kind of provides the answer, and so it lowers the barriers for people adopting MST for this exact reason. Okay, fair enough. It's good to hear from you.

Speaker Change: Will that help make people move faster? I think it absolutely will. You're asking about whether it will help them move to licenses.

Speaker Change: I can tell you that our customers were saying, hey, this is something we're worried about. We want to know whether there'll be a, you know, a production quality substrate for us to work for. And this kind of provides the answer. And so it lowers the barriers for people adopting MST for this exact solution.

Richard Shannon: We want to know whether there'll be a production quality substrate for us to work for. And this kind of provides the answer. And so it lowers the barriers for people adopting MST for this exact solution. Okay, fair enough. Good to hear.

Richard Shannon: Maybe a couple more questions from me. I'm not sure if I heard the language right here when you're discussing it and you're prepared or marked about gate all around in DRAM. I know that you first basically to gate all around is something that's going to take some time, which I don't think is a big surprise to anybody. Is the time frame for DRAM something similar in terms of length of time? Or is that something that you could see being shorter and more predictable? Yeah, not easy to predict right now, but with DRAM, they tend to come out with new nodes every, I think, every 18 months.

Speaker Change: Okay, fair enough. Good to hear. Maybe a couple more questions from me. I'm not sure if I heard the, or got the language right here when you were discussing.

Richard Cutts Shannon: Maybe a couple more questions from me. I'm not sure if I heard you correctly or got the language right here when you're discussing your prepared remarks about Gate All-Around and DRAM. I know that you've heard specifically that Gate All-Around is something that's going to take some time, which I don't think is a big surprise to anybody. Is the timeframe for DRAM something similar in terms of length of time? Or is that something that you could see being shorter and more predictable?

Speaker Change: and your prepared remarks about Gate All-Around and DRAM.

Speaker Change: I know that you refer specifically to Gate All Around as something that's going to take some time, which I don't think is a big surprise to anybody. Is the timeframe for DRAM something similar in terms of length of time, or is that something that you could see being shorter and more predictable?

Scott A. Bibaud: Yeah, not easy to predict right now, but with DRAM, they tend to come out with new nodes every, I think, every 18 months, very quickly. I mean, they constantly have a node ramping up, a node in volume production, and a node ramping down. Because, as I said in my remarks, DRAM is so cost-focused that a small cost advantage makes sense to bring into production.

Speaker Change: Yeah, not easy to predict right now, but with DRAM, they tend to come out with new nodes every, I think, every 18 months. Very quick. I mean, they have

Scott Bibaud: Very quick. I mean, they have; they constantly have a node ramping up, a node in volume production, and a node ramping down, because, as I said in my remarks, DRAM is so cost-focused that a small cost advantage makes sense to bring into production. So I do believe that with the DRAM guys, you have a chance to get designed in and get into production faster than some of the other ones because it's constantly turning the process. That makes sense, very interesting. I'll follow up on that one a little bit later; an interesting topic there.

Speaker Change: They constantly have a node ramping up, a node in volume production, and a node ramping down because

Speaker Change: As I said in my remarks, DRAM is so cost-focused that a small cost advantage makes sense to bring into production, so I do believe that with the DRAM guys, you have a chance to get designed in and get into production faster than some of the other ones, because it's constantly turning.

Scott A. Bibaud: So I do believe that with the DRAM guys, you have a chance to get designed in and get into production faster than some of the other ones because they're constantly improving their processes. Okay. That makes sense. Very interesting. Maybe I'll follow up on that one a little bit later. An interesting topic there. Two questions for me, one for each of you.

Speaker Change: you know, their process notes.

Richard Cutts Shannon: Scott, the last one for you is related to GAN here. I think your comment was that there are various approaches to enabling that business, but at least one of them could generate some revenues before the end of the year. Maybe you could elaborate on exactly what you mean there, how that would happen. Yeah, absolutely.

Speaker Change: Okay, that makes sense. Very interesting.

Speaker Change: Maybe I'll follow up on that one a little bit later. An interesting topic there. Two questions for me, one for each of you.

Scott Bibaud: Two questions for me, one for each of you. Scott, the last one for you is related to Gan here. I think your comment was that you various approaches to enabling that business, but you know, at least one of them could generate some revenues before the before for the end of the year. Maybe you can elaborate on exactly what you mean there, how that would happen. Yeah, absolutely. And I think it's important to understand where this is not even a released product from us yet. We we only got our first results earlier this year, but we we've gone out and shown our test results to a number of potential partners, and there's a lot of interest.

Speaker Change: Scott, the last one for you is related to GAN here. I think your comment was that you

Speaker Change: various approaches to enabling that business, but at least one of them could generate some revenues before the end of the year. Maybe you can elaborate on exactly what you mean there, how that would happen. Yeah, absolutely. And I think it's important to understand where this is not even a released product from us yet.

Scott A. Bibaud: And I think it's important to understand that this is not even a released product from us yet. We only got our first results earlier this year, but we've gone out and shown our test results to a number of potential partners, and there's a lot of interest. So I think there's a decent chance that we will be able to make wafers for development purposes for our customers and maybe sell them some of those wafers before the end of this year.

Speaker Change: We only got our first results earlier this year, but we

Speaker Change: We've gone out and shown our test results to a number of potential partners and there's a lot of interest. So I think there's a decent chance that we will be able to make wafers for development purposes for our customers and maybe sell them some of those wafers before the end of this year. So it's not going to be revenue that's like

Scott Bibaud: So I think there's a decent chance that we will be able to make wafers for development purposes for our customers and maybe sell them some of those wafers before the end of this year. So it's not going to be revenue that's like, you know, significant game-changing revenue for us, but it would be a signal that people are very interested in potentially adopting what we have. Okay, these are these again on silicon or gas carbon or again, again, it's again on silicon and what we're doing is we're putting MST on the silicon and before they grow the game. When they grow the game, and of course, you know, there's a bunch of intermediate layers that they grow before then that the quality of the game that ends up on the top is much higher than what they would get without the MST.

Scott A. Bibaud: So it's not going to be revenue that's like..,uh,significant game-changing revenue for us, but it would be a signal that people are very interested in potentially adopting what we have. Are these again on silicon or carbon carbide or again on GAN? GAN on silicon, and what we're doing is we're putting MST on the silicon, before they grow the GAN, and when they grow the GAN, and of course, there's a bunch of intermediate layers that they grow before then, so the quality of the GAN that ends up on top is much higher than what they would get without the MST, makes sense.

Speaker Change: you know, significant game changing revenue for us. But it would be a signal that people are very interested in potentially adopting what we have.

Speaker Change: OK.

Speaker Change: Are these GaN on silicon or GaN on silicon carbide or GaN on GaN?

Speaker Change: It's GaN on silicon.

Speaker Change: And what we're doing is we're putting MST on the silicon and before they grow the GAN and when they grow the GAN.

Speaker Change: And of course, you know, there's a bunch of intermediate layers that they grow before then.

Speaker Change: that the quality of the PM that ends up on the top is much higher than what they would get without the MST.

Scott Bibaud: Okay, that makes sense.

Scott A. Bibaud: Last question for me and I will jump out of line for Frank here just quickly on the OPEX lower number here for the year and I think your reasons make sense here I guess my question is with the with the recent hire you announced plus a couple more that you've mentioned here today she would expect to see a run rate or a total number for next year you know maybe closer to that range you had before or how would you how would you characterize that those new ads coming in later this year?

Richard Shannon: Last question from me, and I will jump out of line for Frank here. Just quickly on the apex, a lower number here for the year, and I think your reasons make sense here. I guess my question is with the recent higher you announced, plus on a couple more that you mentioned here today. She would expect to see a run rates or a total number for next year, you know, maybe closer that range you had before, or how would you characterize those new ads coming in later this year. Yeah, I think that we will see kind of going into next year, a run rate similar to kind of the guide that we gave at the beginning of the year.

Speaker Change: Okay, makes sense.

Frank: Last question from me, and I will jump out of line for Frank here, just quickly on the OPEX, a lower number here for the year, and I think your reasons make sense here. I guess my question is...

Frank: with the recent hire you announced, plus a couple more that you've mentioned here today. She would expect to see a run rate or a total number for next year, maybe closer to that range you had before, or how would you characterize those new ads coming in later this year?

Richard Cutts Shannon: Yeah, I think that we will see, kind of going into next year, a run rate similar to the guide that we gave at the beginning of the year. So, you know, we had the top end of that guide at around 17 and a quarter million dollars when we went into the year. And so, Yeah, we don't give a specific guide beyond kind of the current year, but you're right to think about it as kind of normalizing it with, you know, the I think the big variable there still remains the foundry replacement because absent doing that, the R&D line would still remain below, you know, kind of where it was at the beginning of the year.

Speaker Change: Yeah, I think that we'll see kind of going into next year a run rate similar to kind of the guide that we gave at the beginning of the year. So, you know, we had a top end of that guide at around 17 and a quarter million dollars, you know, when we went into the year. And so,

Frank Laurencio: So, you know, we had a top end of that guy that around 17 and a quarter million dollars. You know, when we went into the year, and so yeah, we don't we don't give a specific guide beyond kind of the current year, but you're right to think about it as kind of normalizing it with. You know, I think the big variable there still remains the Foundry replacement because, absent doing that, the, you know, the R&D line would still remain below, you know, kind of where it was at the beginning of the year. And in the past, our outsourced foundry spend was around, you know, between one and one and a half million dollars a year. You know, I'm not saying that we're going to bounce back to that level, but, you know, some of that will come back in when we have a TSI replacement.

Speaker Change: Yeah, we don't we don't give a specific guide beyond kind of the current year, but you're right to think about it as kind of

Speaker Change: normalizing it with you know the I think the big variable there still remains the foundry replacement because

Speaker Change: absent doing that, the, you know, the R&D line would still remain below, you know, kind of where it was at the beginning of the year.

Richard Cutts Shannon: In the past, our outsourced foundry spend was around, you know, between one and one and a half million dollars a year. I'm not saying that we're going to bounce back to that level, but, you know, some of that will come back when we have an ATSI replacement.

Speaker Change: And in the past, our outsource foundry spend was around, you know, between one and one and a half million dollars a year. You know, I'm not saying that we're going to bounce back to that level, but, you know, some of that will come back in when we have a ATSI replacement.

Francis B. Laurencio: Okay, that makes sense. That's all the questions for me, guys. Thank you. Thank you, Richard.

Frank Laurencio: Okay, make sense.

Richard Shannon: That's all the questions for me, guys.

Speaker Change: Got it. Okay. Makes sense. That's all the questions from you guys. Thank you.

Mike Bishop: Thank you. Thank you, Richard. And a few questions coming in on the Q&A line here.

Mike Bishop: And a few questions coming in on the Q&A line here. And the first one is about the CHIPS Act. And the question, you know, that CHIPS Act, you know, obviously was announced a while back. And the question is, why are the proposals for the CHIPS Act only now being pursued?

Speaker Change: Thank you, Richard. And a few questions coming in on the Q&A line here.

Scott Bibaud: And the first one is about the chipsac and the question, you know, that chipsac, you know, obviously is announced a while back and the question is why are the proposals for the chipsac only now being pursued. Yeah, I'll take that one. I was very involved in the submission that we did just, you know, just last week, actually. So the Chipsack money kind of came in ways. First was focused on large-scale manufacturing facilities to bring sort of a supply chain and the manufacturing of chips back on shore. The second was kind of a recognition that even if you did that, you still had a big reliance on overseas packages for chip packaging.

Speaker Change: The first one is about the CHIPS Act and the question, you know, that CHIPS Act, you know, obviously was announced a while back and the question is why are the proposals for the CHIPS Act only now being pursued?

Francis B. Laurencio: Yeah, I'll take that one. I was very involved in the submission that we did just, you know, just last week actually. So the CHIPS Act money kind of came in waves. First, it was focused on large-scale manufacturing facilities to bring sort of the supply chain and the manufacturing of chips back to shore. The second was kind of a recognition that even if you did that, you still had a big reliance on overseas packaging for chip packaging.

Speaker Change: So the Chipsack money kind of came in waves.

Speaker Change: First was focused on large-scale manufacturing facilities to bring sort of the supply chain and the manufacturing of chips back on shore.

Speaker Change: The second was kind of a recognition that even if you did that, you still had a big reliance on overseas package for chip packaging. So packaging was kind of wave two. And now we're seeing a move towards, you know,

Francis B. Laurencio: So packaging was kind of wave two, and now we're seeing a move towards, you know, the development of new materials technologies. Specifically, the call for proposals that went out, which was, you know, still just an early kind of call for topics, were ones that expressed an interest in a bunch of compound semiconductor areas relevant to the DoD. And as such, these are things that, you know, would be very relevant to our work on compound semiconductors and specifically beginning on silicon that Scott was just talking about. So I think it was the first time that we found a very relevant match.

Scott Bibaud: So packaging was kind of way of two. And now we're seeing a move towards, you know, development of new materials technologies, specifically the call for proposals that went out, which was, you know, still just the early kind of call for topics, were ones that expressed an interest in a bunch of compound semiconductor areas relevant to the DOD. And as such, these are things that, you know, would be very relevant to our work on compound semiconductors and specifically, again on silicon that Scott was just talking about. So I think it was the first time that we found a very relevant match.

Speaker Change: Development of New Materials Technologies.

Speaker Change: Specifically, the Call for Proposals

Speaker Change: that went out, which was, you know, still just an early kind of call for topics.

Speaker Change: were ones that expressed an interest in a bunch of

Scott A. Bibaud: compound semiconductor areas relevant to the DoD and as such these are things that you know would be very relevant to our work on compound semiconductors and specifically began on silicon that Scott

Scott A. Bibaud: was just talking about. So I think it was the first time that we found a very relevant match.

Scott Bibaud: That being said, you know, we expect to see more funding proposals, and we'll be responding to those. And these are things that you do in partnership with others. So, you know, going through the process, what, you know, we've observed is, as our name gets in, you know, and gets known among some of these agencies, by responding to a relevant proposal, we should see more, you know, even outbound interest towards us. And that's certainly something we're hoping for.

Francis B. Laurencio: That being said, you know, we expect to see more funding proposals, and we'll be responding to those. And these are things that you do in partnership with others. So, you know, going through the process, what we've observed is as our name gets out there, and gets known amongst some of these agencies, by responding to a relevant proposal, we should see more, you know, even outbound interest towards us. And that's certainly something we're hoping for. Okay, thanks, Frank.

Scott A. Bibaud: That being said, you know, we expect to see more funding proposals and we'll be responding to those. And these are things that you do in partnership with others.

Scott A. Bibaud: So, you know, going through the process, what we've observed is, as our name gets in

Scott A. Bibaud: and it gets known among some of these agencies by responding to a relevant proposal, we should see more, even outbound interest towards us, and that's certainly something we're hoping for.

Mike Bishop: Okay, thanks Frank. Another question is about the pursuit of deals and the question, "Why now?" Shouldn't there have been urgency all along? Yes, I mean, I think we've always had urgency to close deals. You know, I do say, I do think we. (inaudible) thought that we were doing all the right things.

Frank Laurencio: Okay, thanks, Frank.

Scott Bibaud: Another question is about the pursuit of deals and the questions why now to push for closed deals. Shouldn't there have been urgency all along? Yes, I mean, I think we've always had urgency to close deals.

Speaker Change: Okay, thanks Frank. Another question is about the pursuit of deals and the questions why now to push for closed deals. Shouldn't there have been urgency all along?

Speaker Change: Yes, I mean, I think we've always had urgency to close deals.

Scott Bibaud: You know, I do think that we perhaps thought that we were doing all the right things, and sometimes you have to sit back and say, all right, we're not doing the right things, and what is going wrong. And also, you know, at some point, regardless if you know exactly what's going wrong, you have to make some changes. And I think, you know, sometimes after you make those changes, it becomes clear to you what had been wrong in the past. And I think, for a certain extent, we're in that spot. I would say right now we have more proposals out than we ever had in the past.

Speaker Change: You know, I do say, I do think we.

Speaker Change: thought that we were doing all the right things, and sometimes you have to sit back and say, all right, we're not doing the right things, and what is going wrong? And also, you know, at some point,

Scott A. Bibaud: And sometimes you have to sit back and say, all right, we're not doing the right things, and what is going wrong? And also, you know, at some point, Regards, if you know exactly what's going wrong, you have to make some changes, and, uh, and, I think sometimes after you make those changes, it becomes clear to you what was wrong in the past. To a certain extent, we're in that spot. I would say right now we have more proposals out than we ever had in the past.

Speaker Change: Regards, if you know exactly what's going wrong, you have to make some changes.

Speaker Change: I think, you know, sometimes after you make those changes, it becomes clear to you what had been wrong in the past.

Scott A. Bibaud: And so now having the ability to accelerate the closing of them will have even a bigger bang for the buck than it did before. But yeah, I'm very, I'm very excited about the capabilities that Sean is bringing to the team just in the past week and a half that we've had him on board. It's very clear that he can go and talk to people and help in ways that our prior team couldn't. And so I'm really optimistic that that's going to make a big difference. Okay, and

Speaker Change: To a certain extent, we're in that spot. I would say right now we have more proposals out than we ever had in the past, and so now having the ability to accelerate closing of them will have even a bigger bang for the buck than it did before.

Scott Bibaud: And so now, having the ability to accelerate closing of them will have even a bigger bang for a buck than it did before.

Scott Bibaud: But yeah, I'm very excited about the capabilities that Sean is bringing to the team just in the past week and a half that we've had him on board. It's very clear that he can go and talk to people that and help in ways that our prior team couldn't. And so I'm really optimistic that that's going to make a big difference.

Speaker Change: But yeah, I'm very, I'm very excited about the capabilities that Sean is bringing the team just in the past week and a half that we've had him on board. It's very clear that he can go and

Sean Thomas: talk to people and help in ways that our prior team couldn't. And so I'm really optimistic that that's going to make a big difference.

Scott Bibaud: Okay.

Scott Bibaud: And so another question here is about ST, and you know the question is what are the barriers to ST going to production, and you know do they have the design kit of the PDK formalized, and what's involved in qualification. I think in the investor deck, I show the process of going to production to high level for most semiconductor players and I don't think ST is significantly different. As you're developing your PDK, you're trying a number of things, usually in simulation software; in our case, an MST CAD. And then you're taking those simulations and you're designing.

Sean Thomas: Okay. And

Mike Bishop: So another question here is about ST. And, you know, the question is, what are the barriers to ST going to production? And, you know, do they have the design kit, the PDK formalized, and what's involved in qualification? I think in the investor deck, I show the process of going to production at a high level for most semiconductor players, and I don't think S.D. is significantly different.

Speaker Change: So another question here is,

Speaker Change: about ST. And, you know, the question is, what are the barriers to ST going to production and, you know, do they have the design kit?

Speaker Change: The PDK formalized and what's involved in qualification.

Speaker Change: I think in the investor deck I show the process of going to production to high level for most semiconductor players, and I don't think SD is significantly different.

Scott A. Bibaud: As you're developing your PDK, you try a number of things, usually in simulation software, in our case, MSTCAD. And then you take those simulations, and you design chips that you can put on wafers and then run them through production. And then test to see if you get good results. And usually, as you're making a PDK, you go through several cycles of learning from that, where you run some, you get good results, you make more tweaks to get better results, and you make more tweaks to make better results. And then finally, you're at the point where you lock down a PDK.

Speaker Change: As you're developing your PDK, you're trying a number of things, usually in simulation software, in our case in MST-CAD.

Speaker Change: And then you're taking those simulations and you're designing

Scott Bibaud: Chips that you can put on wafer and then run them through production and then test to see if you get good results. And usually, as you're making a PDK, you go through several cycles of learning of that where you run some and you get good results, you make more tweaks to get better results, and you make more tweaks to make better results. And then finally, you're at the point where you lock down a PDK. And then once you have the PDK, then the companies will typically go into process qualification where now they're really just running wafers to solidify the production process.

Speaker Change: chips that you can put on wafers and then run them through production.

Scott A. Bibaud: And then once you have the PDK, then the companies will typically go into process qualification where now they're really just running wafers to solidify the production process. I mean, remind me of the question, Mike: was the question, is S.T. Yeah, the barriers to, you know, basically commercialization. I don't think there's any barriers here. The only thing is, it takes time and effort to do this, of course. If the company had set a goal of achieving a certain level of improvement before they went to production. That would be a major barrier.

Speaker Change: and then test to see if you get good results.

Speaker Change: And usually, as you're making a PDK, you go through several cycles of learning of that, where you run some and you get good results, you make more tweaks to get better results, and you make more tweaks to make better results. And then finally, you're at the point where you lock down a PDK.

Speaker Change: And then, once you have the PDK,

Scott Bibaud: I mean, remind me of the question, Mike. Was the question 'is ST'? The barriers to basically towards commercialization. I don't think there's any barriers in here. The only thing is it takes time and effort to do this. Of course, if the company had set. A goal of achieving a certain level of improvement before they go to production; that would be a barrier. I think that's one of the big things that MST is doing. It's bringing the ability to our customers to really exceed the level of improvement that they had thought they could achieve. And so we're very confident that that will allow them to move forward. Wouldn't necessarily call it a barrier, but I guess you could think of it that way.

Speaker Change: I mean, remind me of the question, Mike, was the question is, is ST.

Mike Bishop: Yeah, the barriers to, you know, basically towards commercialization. I don't think there's any barriers in here. The only thing is, it takes time and effort to do this, of course.

Speaker Change: If the company had set

Speaker Change: a goal of achieving a certain level of improvement before they go to production, that would be a barrier.

Scott A. Bibaud: I think that's one of the big things that MST is doing. It's bringing the ability to our customers to really exceed the level of improvement that they had thought they could achieve. And so we're very confident that that will allow them to move forward. I wouldn't necessarily call it a barrier, but I guess you could think of it that way.

Speaker Change: I think that's one of the big things that MST is doing. It's bringing the ability to our customers to really exceed the level of improvement that they had thought they could achieve. And so we're very confident that that will allow them to move forward. I wouldn't necessarily call it a barrier, but I guess you could think of it that way.

Scott Bibaud: Okay, great.

Mike Bishop: Okay, great. Thank you. And regarding RFSOI, do recent developments with Soytex increase the probability of getting to market while maybe pushing back the timeline? I don't think they make a...

Scott Bibaud: Thank you.

Scott Bibaud: And regarding RFS, why do recent developments with soy tech increase the probability of getting to market while maybe pushing back to the timeline. I don't think they make. I think they would improve the likelihood that some of our customers go to market, as I was talking to Richard about before. Our customers would be very pleased to see a quality company like Soy Tech offering a sin that so wafer like this in production that they could deposit MST on top of. And so that's that's removed one of the concerns they have, and therefore I think it will speed time to market, but I don't think it pushes in any of the time to market out.

Speaker Change: Okay, great. Thank you. And regarding RFSOI, do recent developments with Soytex increase the probability of getting to market while maybe pushing back the timeline?

Scott A. Bibaud: I think they would improve the likelihood that some of our customers go to market. As I was talking to Richard about before, our customers would be very pleased to see a quality company like Soytec offering a SYND SOI wafer like this in production that they could deposit MST on top of. And so that's removed one of the concerns they have, and therefore, I think it will speed time to market, but I don't think it pushes any of the time to market out.

Speaker Change: I don't think they make

Speaker Change: I think they would improve the likelihood that some of our customers go to market. As I was talking to Richard about before, our customers would

Richard Cutts Shannon: And so that's removed one of the concerns they have, and therefore I think it will speed time to market, but I don't think it pushes any of the time to market out.

Scott Bibaud: Okay, and do you have an update on the Foundry license that you previously discussed?

Scott A. Bibaud: Okay, and do you have an update on the foundry license that you previously discussed? I think I said in my prepared remarks that for the foundry, we are continuing to work with them on moving our technology into, to make it adopted by their next generation process now. Okay, and is there an update on the TSI replacement? Yeah, so for the TSI replacement, we're looking at multiple different companies to do that work, whereas the TSIs were really concentrated on the process node they had.

Speaker Change: Okay, and do you have an update on the foundry license that you previously discussed?

Scott Bibaud: I think I said in my prepared remarks that for the foundry, we are continuing to work with them on moving our technology into, to make it adopted by the next generation process note release. Okay.

Speaker Change: I think I said in my prepared remarks that for the Foundry we are continuing to work with them on moving our technology into to make it adopted by their next generation process node release.

Scott Bibaud: And is there an update on the TSI replacement? Yeah.

Speaker Change: Okay, and is there an update on the TSI replacement?

Scott Bibaud: So for the TSI replacement, or looking at multiple different companies to do that work, whereas the TSI were really concentrated on the process note they had. What we're finding as we go out to the market is that there's a number of different vendors that can provide us with some services. And each of them has a different suite of process notes that are attractive to us. So it looks like we'll probably be engaged with multiples of that.

Speaker Change: Yeah, so for the TSI replacement, we're looking at multiple different companies to do that work, whereas the TSI we're really concentrated on

Scott A. Bibaud: What we're finding as we go out to the market is that there are a number of different vendors that can provide us with some services, and each of them has a different suite of process nodes that are attractive to us. So, it looks like we'll probably be engaged with multiple of them, and we will probably end up working with a group of companies instead of one main company like TSI for our R&D. Okay, and that wraps up the questions, Scott. So, if you want to make your closing comments, Sure.

Speaker Change: the process node they had. What we're finding as we go out to the market is that there's a number of different vendors that can provide us with some services, and each of them has a different suite of process nodes that are attractive to us.

Scott Bibaud: But we're already working with more than one, and we will probably end up working with a basket of companies instead of one main company like TSI for our own department. Okay.

Speaker Change: So it looks like we'll probably be engaged with multiple, we're already working with more than one, and we will probably end up working with a basket of companies instead of one main company like TSI for our R&D partner.

Scott Bibaud: And then you know, that wraps up the questions, Scott. So if you want to make your closing comments.

Speaker Change: Okay, and you know that wraps up the questions, Scott. So if you want to make your closing comments.

Scott Bibaud: Sure. Well, thanks everybody for joining us to hear the progress being made within Atomera. Please continue to look for our news articles and blog posts, which are available along with investor alerts on our website, Atomera.com.

Scott A. Bibaud: Well, thank you everybody for joining us to hear the progress being made within Atomera. Please continue to look for our news, articles, and blog posts, which are available along with investor alerts on our website, atomera.com. Should you have additional questions, please contact Mike Bishop. We'll be happy to follow up. Thank you again for your support, and we look forward to our next update call. Thank you.

Scott A. Bibaud: Sure. Well, thanks everybody for joining us to hear the progress being made within Atomera.

Scott A. Bibaud: Please continue to look for our news, articles, and blog posts, which are available along with investor alerts on our website, atomera.com. Should you have additional questions, please contact Mike Bishop. We'll be happy to follow up. Thank you again for your support, and we look forward to our next update call.

Scott Bibaud: Should you have additional questions, please contact Mike Bishop. We'll be happy to follow up. Thank you again for your support. And we look forward to our next update call. Thank you.

Operator: This concludes the Atomera second quarter, 2024 covers.

Operator: Good bye.