Q3 2024 Atomera Inc Earnings Call
It will depend on how quickly estee achieves their time design objectives.
Second area in which we are cooperating with ft is manufacture ability by enhancing throughput of MST deposition on St's factory production tools.
I want to emphasize that this project is in great shape Indeed.
<unk> has authorized me to say that development is going well and that we are still on track to go to production as soon as development and call are complete at that time, we expect royalties that will be compelling high gross margin revenue for Adam era as with prior.
Higher statements I cannot comment on timing or schedule, except to say that it is entirely under <unk> control.
<unk> is not the only company who has been working with in this segment Adam errors MSC SPX technology is applicable to voltage ranges from 7% to 48 volts, meaning it's interesting to many different players for a variety of applications.
Since this is typically a legacy technology with relatively few knobs that will bring big performance improvements.
When we demonstrate that MST can help them gain 20 plus percent does usually strong customer interest.
We are currently in discussions with multiple customers on proposals to either license the technology outright or to enter into a JV that will ultimately lead to production.
One part of this market is particularly hot right now and provides a compelling opportunity for EDA mirror.
Traditionally server racks and data centers have been fed by a 12 volt power supply, but that standard is currently changing to 48 volts.
Accelerating AI driven power demands have created a need for higher power efficiency of those data centers and 48 volts can deliver power.
Can reduce power dissipation by a factor of up to 16 times, which has led to a chip war to deliver the best devices.
In the last quarter, Adam era has finalized a 48 volt version of our SPX technology with dramatic performance improvements specifically to address this segment.
Introductions to new customers are just starting but we are optimistic about its potential due to the further efficiency improvements that can bring to data centers.
Next we have the advanced node work for gate, all around transistors at the leading edge, which represents about $150 billion market in 2023.
Manufacturing technology at these advanced line width has shifted from a primary focus on lithography to more extensive use of materials engineering solutions and in particular <unk>.
As device architecture shifts from Finfet gate, all around the number of Etsy steps incorporated into the process flow is projected to more than triple.
This trend makes it significantly easier.
<unk> MST to the primary EPPY steps to deliver improved device performance.
As epitaxy becomes a more critical component of device architecture at.
It opens the door to our MST technology being more easily slotted into the production flow.
Since the MST insertion cost to an existing etsy step is incremental compared to introducing MST as a standalone step.
In addition to MST being easier to add.
Advanced node production is an area, where we believe our technology can provide significant benefits our ability to block dopant, particularly phosphorus in this application can provide a critical tool for the formation of advanced source strained structures as detailed and Robert meters presentation at the recent <unk>.
S Prime conference.
With the incredibly tight channel lengths in todays newest transistors, obtaining high production yields has become one of the central challenges and we believe MST can help to solve this problem, which will have a direct impact on the number and cost of Gpus that can be manufactured to meet the demands of the AI market.
Our new head of business development has a deep background here and we believe he will lead us to compelling market growth. In this segment today, we are working with multiple customers in the advanced node area.
The memory segment valued at over $110 billion in 2023 has many characteristics in common with the advanced node segment, except because it is a commodity market. It is hyper focused on low production costs.
Similar to gate, all around there and a relentless drive to meet smaller node sizes, but in this case, they can benefit even more from material advances.
To meet yield our cost targets.
Again, similar to advanced logic platforms. The memory platforms are beginning to introduce epitaxy into the device structure turning to materials engineering to drive performance.
Just as with gate all around the introduction of <unk> into the memory flows MST becomes an incremental cost adder to the etsy steps, while delivering substantial device performance and cost benefits.
We are excited about the potential for our technology in this space because we believe it provides a real performance die size and margin improvement potential for our customers, even after paying us a royalty and the opportunity here is.
Is huge at approximately 20% of the entire semiconductor industry with very high volumes and long technology cycles.
Again, we are working with multiple customers in this area.
Finally, RF Soi is another segment with excellent potential for our technology, where we provide a performance advantage. We don't believe it's possible to achieve without MST. We continue to work with customers representing the majority of the supply of devices built on RF Soi substrates.
And each of these segments, we've made proposals to customers, which we are optimistic will convert into J D. As our license agreements in the near future.
Indeed, we are in active negotiations today on an agreement that we believe will be transformative for the company and we are hopeful that we will be able to announce it within the next few months.
Recently, we announced an agreement with the center for integrated Nanotechnologies at Sandia National Labs to further our efforts on Gan on Silicon technology.
Earlier work with state, Texas State University has shown that MST can reduce stresses induced during the manufacturer of Gan on silicon substrates, which can improve the crystal quality as proven through physical tests like those shown on this slide.
Now we will take the developments a step further with fabrication of Gan devices to validate that the physical improvements convert into electrical benefits.
Gan on Silicon will be the high volume low cost substrate of the future for Gan devices and if this technology works as expected MST will be valuable to anyone who manufactures with it or.
A lot of R&D is going into Gan on silicon and announcements periodically come out about manufacturers, bringing larger wafer sizes to production.
Make no mistake, though those wafers are experiencing stress that lead to lower yields and higher defects, which MST may help to alleviate the rapidly garnering gan market is particularly interesting to us because we believe the technology can be converted to revenue faster than our traditional business and we hope to work.
With Sandia will help speed up our time to market.
Customer engagement has intensified dramatically in the last quarter.
We are engaged with a lot of very large customers and I sense that the need for our technology is stronger than ever. So let me cut to the chase and give a quick update on prior deals.
J D. One has recently requested additional data from us to validate mst's effectiveness and a specific application and we are already planning wafer runs to demonstrate how MST can address their requirements.
Discussions with <unk> about a companywide license spanning multiple technologies and nodes is ongoing although this negotiation is moving more slowly than we would like.
Our fabless licensee has wafers coming out imminently and if those results are strong we believe it will lead to a production transition program with both them and their foundry partner.
Beyond these engagements we have proposals understanding outstanding with several others. In addition to the large transformative customer we are negotiating with today.
Right now without exaggeration I believe the <unk> team is more excited about our prospects than I've ever seen the S. T engagement, which is an enormous business with a long projected life.
Is moving nicely towards production with which <unk> has confirmed our potential and the outline segments is even larger and I feel we are very close to announcing deals which will cement that position.
The work we're doing in gate, all around and memory is tied directly to the biggest driver of the semiconductor industry today, the rollout of AI infrastructure.
And our Gan work is not only aligned with a major industry push but we also believe it can be executed with faster time to revenue than our other segments.
So today is an exciting time to be at at Emera, and if we can execute on the opportunities in front of US we will need to grow to support all of the anticipated business now.
Now Frank will review our financials.
Frank: Thank you Scott.
Frank: At the close of the market today, we issued a press release announcing our results for the third quarter of 2024.
Frank: This slide shows our summary financials.
Frank: Our GAAP net loss for the three months ended September 32024 was $4 6 million or.
Frank: Were <unk> 17 per share compared to a net loss of $5 million 20, a share in the third quarter of 2023.
Frank: In Q2 of this year, our GAAP net loss was $4 4 million, which was <unk> 16 per share.
Frank: Revenues were $22000 in Q3 compared to 72000 in Q2 of this year and zero in Q3 of 2023.
Frank: GAAP operating expenses were $4 $8 million in Q3, 2024, which was a decrease of approximately $534000 from $5 $4 million of Opex in Q3 of 2023.
Frank: Mainly due to a $546000 decline in R&D expenses.
Frank: And $117000 decline in sales and marketing expense.
Frank: This was offset in part by a $129000 increase in G&A expenses.
Frank: The decline in R&D expense was mainly due to the closure of our outsource outsourced foundry tsi semiconductor in the first quarter of this year.
Frank: Sales and marketing declined year over year, primarily due to lower head count.
Frank: Sequentially, our GAAP operating expenses increased by $191000 to $4 8 million in Q3 compared to compared to $4 6 million in Q2 of this year.
Frank: Collecting an increase of $170000 in R&D expense and a $41000 increase in sales and marketing while G&A decreased slightly.
Frank: Yeah.
Frank: non-GAAP net loss in Q3, 2024 was $3 9 million.
And compares to a loss of $4 $3 million in Q3 2023.
Frank: And as with our GAAP results. The smaller loss was primarily due to R&D and sales and marketing expenses being lower.
Frank: Sequentially non-GAAP net loss increased.
By $251000 from Q2 of 2024 due to the increase in operating expenses.
Frank: And behind with lower revenue.
Frank: The differences between GAAP and non-GAAP operating expenses in all the periods. We've presented are primarily due to noncash.
Frank: Stock compensation expenses, which were approximately $900000 in Q3 of this year and $1 million in each of Q2 2024 and in Q3 of 2023.
Our balance of cash cash equivalents and short term investments on September 32024 was $17 3 million.
Frank: Impaired to $18 3 million at the end of Q2 2024.
Frank: During the most recent quarter, we used $2 $9 million of cash in operating activities compared to $3 2 million in the first quarter of this year.
Frank: During Q3, we sold approximately 691000 shares under our ATM facility at an average price per share of $3 18.
Frank: Resulting in net proceeds of approximately $2 1 million.
Frank: As of September 32024, we had $28 3 million shares outstanding.
Frank: Revenue in Q3 was $22000 and consisted of MSG CAD license revenue.
Frank: And we expect that our Q4 revenue will be approximately the same as in Q3.
Frank: We're not providing revenue guidance beyond this quarter.
Frank: Consistent with our normal practice.
Frank: The next major revenue milestone under our agreement with S. T will occur when they complete the qualification process, which as Scott said in his remarks is proprietary information and the timeline is in St's control.
Frank: Moving to our expense guidance during the first nine months of this year, we incurred total non-GAAP operating expenses of $11 $5 million, which has us on track for a range of $15 $75 million to $16 million of Opex for the full year.
Frank: Below the guidance, we provided last quarter.
We're in our 2025 planning process now, but I can tell you we expect to make additional investments in sales and marketing and we continue to explore the most effective ways of utilizing outsourced foundry services.
Frank: So our non-GAAP opex in 2025 will be higher than this year likely in the range of $16 million to $17 million.
Frank: We will provide more color on this in our next quarterly update call.
Frank: Lastly, I want to give a quick update on our efforts for chips that funding.
Frank: This topic is especially timely since I'm, joining todays call from Washington, DC, where I am attending the annual meeting of the microelectronics comments and the symposium of the National semiconductor technology centers for NFS Tc.
In July we submitted a funding proposal related to our work on Gan and other compound semiconductors, but no decisions have been made.
Frank: On that yet.
Frank: We expect that the next phase of the RF RFP will be announced in late Q4 or Q1.
Frank: Everything I'm hearing at the conference confirms there are many applications and funding opportunities for <unk> under the chipset and our technology is compelling to various government departments.
Speaker Change: With that I will turn the call back over to Scott for a few summary remarks before we open the call up for questions.
Scott.
Scott: Thanks, a lot Frank.
Scott: From today's call I Hope you have a sense of the building momentum we're feeling.
Scott: Right now as a very exciting time to be part of the <unk> story, our technology is being sought out by some of the biggest players in the industry is perfectly aligned with several industry trends and should form a very strong growth engine on top of the revenue base that we hope to build with SCE as our foundation.
Scott: As always for your support and Mike We will now take questions.
Mike: Alright. Thank you Scott if you wish to ask a question. Please click the Q&A button at the bottom of the zoom window, then feel free to type in your question I will do my best to aggregate the income inquiries and relay them to management. Alternatively, you could click the raise hand button and we may call on Union to ask your question lives.
Scott: Yeah.
Speaker Change: And right now our first question comes from Richard Shannon of Craig Hallum, Richard If you would kindly on mute you may begin.
Richard Shannon: Okay, great. Thank you, Mike and thanks, Scott and Frank for taking my questions.
Richard Shannon: Let's see here I guess my first one is for Scott here you made very interesting statements in your prepared remarks about in active conversations and I've, probably got the language wrong here, what a transformative situation.
Richard Shannon: Maybe you could just give us a little bit more detail on exactly what this means any ideas on technology area.
Richard Shannon: Like it could be a number of months before it closes it sounds complex, but maybe give us a little bit more detail, there and probably a follow up.
Yeah, So what I.
Richard Shannon: Bye.
Speaker Change: Transformative I guess I would say.
Speaker Change: This is a large customer with very significant revenue potential that could.
Speaker Change: Could really.
Speaker Change: Kind of if we get into production with these guys provide.
Speaker Change: A really interesting.
Speaker Change: <unk> positioned for US just if you look at our business model.
Speaker Change: And the potential for high gross margin revenue. If we can work with a company that is very large and can deliver high.
Speaker Change: High revenue and that will certainly be very very compelling for us we feel great about.
Speaker Change: Business, there and have been working with them for some time as we've said in the past we don't give proposals the companies unless we have been working together for quite a while and we have a meeting of the mind that it makes sense. This is one of those proposals that we have had outstanding before and now we've gotten into kind of active negotiations.
Speaker Change: I can't really.
Speaker Change: Say much about the segment they're in.
Speaker Change: But.
Speaker Change: Or the timing, but I can say that.
Speaker Change: It's something we're quite excited about.
Speaker Change: Okay, I'm going to ponder those thoughts.
Speaker Change: Follow up here in a second.
Speaker Change: I think the bigger question by which this potentially transformative situation kind of bleeds into an.
Speaker Change: I think as amongst the very first questions that people ask here is you've got a very good funnel with.
Speaker Change: Most of that like half of the top 20 largest semiconductor companies in the world in the funnel, but I think everyone would like to see you get across the finish line with a qualification. We obviously have SD micro announced here and seemingly moving moving into an expected timeframe towards completion. There maybe if you can talk about to the degree to which you are.
Speaker Change: We're seeing progress with others that are far down that funnel.
Speaker Change: And maybe if you want to give any detail as to.
Speaker Change: Technology area or areas that you think could be amongst the first ones that get to that point.
Speaker Change:
Speaker Change: Okay.
Speaker Change: Let me do my best here, so when we talk about the funnel we have.
Speaker Change: Customers today, we primarily have customers in phase, one phase III and phase.
Speaker Change: Phase four the ones in phase four.
Speaker Change: Obviously, they have the technology installed in their fab and they've run wafers.
Speaker Change: We're making good progress in those segments.
Speaker Change: The customer is in phase III are the ones where we're.
Speaker Change: And active experiments with.
With many of them at any point in time.
Speaker Change: And we're always hopeful that they get to the point, where they achieved the performance levels that they need to make the decision to move forward into production.
You know I would say one thing we've been.
Speaker Change: Noticing lately is that.
Speaker Change: Some of the legacy technologies that we work with are they take a bit longer to get to production.
Speaker Change: They take longer to decide to change their process node.
Speaker Change: And then once they are ready to make that change. They they go through a very long process of doing that I would say <unk> is one that falls into this category.
Speaker Change: We believe that some of the more advanced node customers that we've been talking about like in gate, all around and memory will.
Speaker Change: I'll move faster.
Speaker Change: But they'll require huge huge amounts of resources, we know that on.
Speaker Change: And those companies they have massive teams of engineers working on these new nodes and when we're working with them. They ask us for a lot of data and they are constantly pushing us to do more and more experiments for them and with them and but we do believe because there's so many people on their side and there's such a big.
Speaker Change: Pushed to get to production that there'll be faster time to market. So.
Speaker Change: I mean that gives you a little bit of insight into.
Speaker Change: The work that we have going with the many different customers that we have underway right now.
Speaker Change: Okay, a couple of interesting insights here Scott I appreciate that.
Speaker Change: Let's touch on a couple of the technology areas here I guess.
Speaker Change: Wanted to follow up on on RF Soi I think in the last quarter or two you talked about it in advance but in the industry with going towards standard wafers that seems to have been at least my conclusion would be that was one of the significant delay factors.
Speaker Change: We've been hearing about artificial high potential for a number of years now maybe give us an update there of how much that has pushed the ball forward here in terms of moving people.
Speaker Change: Towards that eventual goal here or are there other potential.
Speaker Change: Obstacles to overcome in that technology space.
Speaker Change: No I just think this is the case where.
Speaker Change: The latest and greatest as we've talked about the latest.
Speaker Change: Kind of thing that the industry has identified to take them to the next level of performance is to use.
Speaker Change: And our first.
Speaker Change: Are you now.
Speaker Change: An agreement with <unk>.
To the point, where they would make and sell.
Speaker Change: Engineering wafers to our customers that would run tests Martha.
Speaker Change: Uh huh.
Speaker Change: Three type of technology to market.
And.
Speaker Change: And with that.
Speaker Change: Our customers working in this area.
Speaker Change: And unfortunately, no announcements yet there.
Speaker Change: <unk> to move forward, making good progress in getting.
Speaker Change: Getting regular results that hopefully will lead us to the point, where we're ready to start making some announcements.
Okay.
Speaker Change: Two last questions from me and I will jump out of line here.
Speaker Change: Let's see here.
Speaker Change: Sounds like there's some interesting progress going on the advanced nodes here and I think the comment that you made was referring to both the logic and the memory side here, but maybe.
And I guess, probably a question more of the logic side, but as you work ongoing with both foundries and Fabless players alike.
Speaker Change: On the advanced node no for the most part we're working only with people who manufacture the gate all around.
Speaker Change: Years ago, you could work with foundry partners on the upcoming advanced nodes and they would help to.
Speaker Change: To influence the.
Speaker Change: The foundry their foundry partner too.
Speaker Change: Manufacturer with their ideas, but these days gate all around is so complicated.
Speaker Change: That really the Fabless guys don't have as much influence as they used to have let's say.
Speaker Change: And so we'd be targeting primarily the folks who have the factories that are going to run these chips.
Speaker Change: Okay.
Speaker Change: Okay Fair.
Speaker Change: Fair enough and one last question is just hitting on.
Speaker Change: On January one specifically.
Speaker Change: Sounds like there's been some back and forth of going into two central engineering and trying to get something moving with the with a specific customer groups here. It wasn't clear to me based on your comments about whether there is some.
Speaker Change: Good progress being made in getting to some sort of business relationship. There maybe if you could touch on the specifics there. Please.
Speaker Change: I'd say, there's a slight difference to this set of requests that we have from what we've had in the past and as you know <unk>.
Speaker Change: We first engaged with GTA, one at central engineering level and they proved out our technology kind of gave it a blessing of approval for people in the company to use.
Speaker Change: Today, the inquiries that we're getting the work that we're doing now is to address a very specific application with a very specific solution and of course, they want to know that our technology can actually deliver on some of the.
Speaker Change: The performance metrics that we have shown them.
Speaker Change: In that application and I would say.
Speaker Change: It's.
Speaker Change: Certainly typical that you bring a customer a lot of data showing hey, we can really do this and then they say they give you a request for 10 more pieces of data to validate all of their doubts and so that's kind of the states that I'd say, we're in right now.
Speaker Change: Okay Fair enough I will jump out of line. Thanks for all the details Scott sure.
All right.
Thanks, Richard we have a number of questions coming in on the on the Q&A inline and I'll just dive in.
Speaker Change: The first is is the recent announcements about San Diego Labs related to the chips Act application submitted in July.
Speaker Change: Yes, no I'll take that one.
Speaker Change: No it's not.
Speaker Change: It's independent of that.
Speaker Change: And.
Speaker Change: Which is really which is great because I think it opens up another avenue for us to demonstrate.
Speaker Change: The Gan technology.
Speaker Change: <unk>.
With the chips Act opportunities, we did submit one that was relevant again, but also to other applications of MSG in compound semiconductors.
Speaker Change: So basically to give a little bit more color on San Dia, we had proven out the physical benefits MST.
Speaker Change: In building again on silicon wafer in terms of better quality.
Speaker Change: Because of all the stress that's created by building Gan on Silicon and something that we can improve there, but our Texas state we had no ability to actually test electrically how a device would perform when built on that.
Speaker Change: We found it sandy.
Speaker Change: Yes.
Speaker Change: Great.
Speaker Change: <unk> get us.
Speaker Change: Start testing.
Speaker Change: How.
Speaker Change: When you both Gan devices on those kind of substrates.
Speaker Change: Okay.
Speaker Change: They will actually perform.
In addition to.
Speaker Change: Physical commodities being.
Speaker Change: Being improved so the thing about that is sandy work.
Speaker Change: So, but but we prove there should.
Speaker Change: Make us more attractive for both chips Act funding, but also for the several commercial customers that we've gone out and spoken to you about our Gan offering and the last thing I can tell you as I have.
Speaker Change: Seen many opportunities for Gan and other compound semiconductors.
Speaker Change: Hum.
Speaker Change: There are funding opportunities there so thats something we will continue to pursue but they are separate.
Speaker Change: Okay. Thanks, Brian.
Speaker Change: And there are questions regarding the proposals and customers in the pipeline.
Speaker Change: And.
Speaker Change: Also wondering if there are currently if all the proposals we have outstanding are currently in the pipeline and for example phases one through three.
Speaker Change: Pages, one through three phases, so phases phases, okay, yes.
Speaker Change: I would say that yes, all of our current proposals are with customers that are in our pipeline.
Speaker Change: Theyre not theyre not all in phase III submarine phase one.
Speaker Change: But they are all people that we've been doing.
Speaker Change: Work with.
Speaker Change: Uh huh.
Speaker Change: Hi.
Yes.
Speaker Change: For some time okay.
Speaker Change: Okay.
Speaker Change: And then Frank there are questions about <unk>.
Speaker Change: <unk> for funding do you want to address the outlook for funding and cash needs.
Frank: Sure I mean.
Speaker Change: You guys you would've seen in the financials into my comments that we ended the quarter with a lower cash balance than we did at the end of June and obviously.
Speaker Change: We didn't want to be selling any more stock under the ATM program. Then we had to given that the stock in the last number of months was.
Close to historically low levels.
Speaker Change: We always have to balance.
Speaker Change: Not diluting our shareholders.
Speaker Change: With the fact that we need to maintain a minimum cash balance of greater than 12 months of what we plan to spend in the future. That's just a.
Speaker Change: A requirement under GAAP accounting, so that's always going to be the balance that we maintain.
Speaker Change: Yes to the extent that we can be more conservative when the stock price appears to be relatively low.
To do that.
Speaker Change: Okay, It looks like Richard as well.
Speaker Change: Follow up question Richard did you have another question.
Speaker Change: Yes.
Richard Shannon: I do think thanks, Mike.
Richard Shannon: Scott I wanted to follow up on one of your comments in your prepared remarks regarding power and the 748 volt range.
Speaker Change: Very very interesting dynamics going on there ones that were reasonably familiar with here I.
Richard Shannon: I guess a couple of questions to this and here to what degree is is the work that you're doing in this and this.
Richard Shannon: Voltage range specific to 48 volt, that's related to servers versus more.
Richard Shannon: Broad broadly across the across the space here and then.
Speaker Change: Well actually let me just stop at that at that point Scott Yeah.
Speaker Change: We've been talking about our SPX technology for a little while now.
Speaker Change: And although it had really been targeted from.
Speaker Change: From seven <unk> to 48 volts in fact, most of the interest that we saw in the industry earlier was.
Speaker Change: Probably not as high as the high end 40, April's now the 48 volt stuff is yes, it's very specifically tied to.
Speaker Change: This expanding opportunity and.
Speaker Change: In data centers.
Speaker Change: That being said, it's the same type of transistor structure that would be used for other high fours.
Speaker Change: 48 volt power requirements, but I think the big opportunity is located there at the data center right now.
Speaker Change: And by the way I started to say, we've been talking about SPX for a while but we actually modified specifically for 48 volt. So this is a little bit it's a it's in the family, but it's slightly different than the rest of the stuff we're doing at the lower voltage and its really optimized around the 40.
Speaker Change: April I have to say I'm quite excited about it our the results that we've gotten from testing show really good efficiency improvements that I think will be very attractive to people, but we're just starting to talk to customers about it today.
Speaker Change: Okay excellent and I look forward to hearing more about that my other question and I'll jump back on line here is following up on that.
A response to one of my earlier questions here.
Speaker Change: Sure.
Speaker Change: It seems like you've.
Speaker Change: Included or at least the trend that you've seen in past discussions here is if you're trying to insert yourself into.
Speaker Change: Legacy nodes here.
Speaker Change: The timeframe to get to production in <unk>.
Speaker Change: You get to a license and moving forward is seem to be more delayed than with.
Speaker Change: Newer nodes here.
I guess is there anything you can do to help accelerate that in any way or is this just a.
Speaker Change: A relic of working with companies with legacy nodes and.
Speaker Change: Well, yes, so let me let me stop there no. It's a great question because I think what we have been doing up to now is going out and telling people. Okay. We've got this for example on power SPX technology, and we already announced that we have one customer on it when they get to production theyre going to bring bringing a whole new leg.
Speaker Change: <unk> performance and it was our belief that that would drive.
Speaker Change: Sure.
Speaker Change: Some of our competitors to say, okay, I've got to start developing with that as well right.
Speaker Change: It has happened, but it hasnt happened as across the board as we had hoped it would and it hasnt probably accelerated the development efforts at those companies as quickly as we like we do believe win.
Speaker Change: <unk> hit the market, that's going to make a big difference and also.
Speaker Change: Some of the proposals that we have outstanding are with companies that would be entering into that space. So I think we will we will get more even before <unk> goes to production that's my belief.
Speaker Change: But.
Yes, I mean, just if you think back about the history of <unk>, we started working with them in.
Speaker Change: In 2017 or 2018, we did some experiments by the end of 2019, we really have shown excellent results with them.
Speaker Change: And between Covid, and then building a new factory they didnt really start work on the new process node until 2022.
Speaker Change: So it's not that they take a long time once they decided to go to production I think.
Speaker Change: That part is.
Speaker Change: Maybe.
Speaker Change: Slightly slower, but similar to another process node going to production, but the decision to make a change to an old legacy nodes, it's been running in high volume for some time.
Speaker Change: That doesn't come up every year.
Speaker Change: And so sometimes we have to wait for that to happen.
Speaker Change: Okay.
Okay, alright that makes sense.
Richard Shannon: I will jump out of line. Thank you Scott Okay. Thanks, Richard.
Speaker Change: All right and just.
Speaker Change: It looks like one or two more questions here.
Speaker Change: My question is you addressed S. T in the prepared comments, but generally how is the relationship growing are going and are there more of a comments you could add.
Speaker Change: To give us a sense of that.
Speaker Change: Progress.
Speaker Change: Yes, let me say a few things about it first of all.
Speaker Change: Ft is a excellent company to work with there I think they were the company that invented BCD technology, which is what our SPX as.
Speaker Change: Is running on and so obviously, we're working with some of the best technical experts.
Speaker Change: Experts in the field here and.
Speaker Change: I think we really enjoy the back and forth to be able to constantly be improving the products.
Speaker Change: Things are have been going so well with SD that we've also kind of <unk>.
Speaker Change: Executing our land and expand type of strategy, where we've already started working with some other groups inside S T as well and so hopefully.
We'll be able to expand our business into them to multiple business units.
Speaker Change: And it's possible, we could do that even before we get to volume production with.
Speaker Change: With the first product so so things are going very well with them.
Speaker Change: Okay, and just one final question.
Speaker Change: Can you provide some comments on the gate all around Silicon results that were presented at <unk> 2024.
Speaker Change: Sure.
Speaker Change: Okay, it's quite technical but.
Speaker Change: One of the things that we presented at Prime 2024.
Speaker Change: Alright.
Speaker Change: Okay, Let me explain.
Speaker Change: Our gate all around source and drain.
Speaker Change: It's very high doped phosphorus.
Speaker Change: Source, our drain and then it's going to go into a channel where they don't want any doping at all we'd like that to be almost dopant free.
So thats infrastructures are so small it's difficult to keep that gate, which is highly phosphorus doped from defusing into the channel and <unk>.
Speaker Change: Lower end.
Speaker Change: If it diffused into the channel enough. It can actually cause a short circuit between the source and the drain or at least such low performance that the device won't yield so that will be a low yield product.
Speaker Change: We believe that by putting MST at that interface between the source and the channel that we will help prevent phosphorus from flowing into the channel side and either shorting, our having lower performance. So number one it will lead to higher performance, but even more importantly, it will help.
Speaker Change: We believe our the gate all around manufacturers to yield higher a higher number of transistors. When they are in manufacturing. So that's one.
Speaker Change: Several applications that we have in.
Speaker Change: And gate all around that we're promoting to customers Robert.
Speaker Change: I think robert's slides from that.
Speaker Change: That conference are.
Speaker Change: Available publicly or they may be available publicly soon but in any case it will show.
Speaker Change: <unk>.
Speaker Change: That we our diffusion blocking can really.
Speaker Change: Bring that benefit that I talked about.
Speaker Change: Great.
Speaker Change: Alright, Scott I think that wraps up the Q&A session you.
You may prepare with closing remarks.
Speaker Change: Alright, great.
Scott: Yeah first of all I just wanted to say thank you all for joining us to hear the progress being made within Adam era.
Scott: Please continue to look forward to our news articles and blog posts, which are available along with investor alerts on our website at <unk> Dot com.
Scott: Yes.
Scott: Okay.
Scott: Got it.
Scott: Thanks again for your support and we look forward to our next update call.
Speaker Change: Thank you Scott.
Speaker Change: Okay.
Speaker Change: Before the conference call.