Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 27, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-37850 | |
Entity Registrant Name | ATOMERA INCORPORATED | |
Entity Central Index Key | 0001420520 | |
Entity Tax Identification Number | 30-0509586 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 750 University Avenue | |
Entity Address, Address Line Two | Suite 280 | |
Entity Address, City or Town | Los Gatos | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95032 | |
City Area Code | (408) | |
Local Phone Number | 442-5248 | |
Title of 12(b) Security | Common stock: Par value $0.001 | |
Trading Symbol | ATOM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 23,157,878 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 31,789 | $ 37,942 |
Prepaid expenses and other current assets | 429 | 132 |
Total current assets | 32,218 | 38,074 |
Property and equipment, net | 208 | 153 |
Operating lease right-of-use asset | 950 | 705 |
Financing lease right-of-use asset | 6,170 | 0 |
Long-term prepaid rent | 0 | 450 |
Long-term prepaid maintenance and supplies | 91 | 0 |
Security deposit | 14 | 13 |
Total assets | 39,651 | 39,395 |
Current liabilities: | ||
Accounts payable | 321 | 442 |
Accrued expenses | 315 | 211 |
Accrued payroll related expenses | 434 | 705 |
Current operating lease liability | 214 | 90 |
Current financing lease liability | 1,621 | 0 |
Total current liabilities | 2,905 | 1,448 |
Long-term operating lease liability | 809 | 602 |
Long-term financing lease liability | 4,455 | 0 |
Total liabilities | 8,169 | 2,050 |
Commitments and contingencies (see Note 10) | ||
Stockholders’ equity: | ||
Preferred stock $0.001 par value, authorized 2,500 shares; none issued and outstanding at September 30, 2021 and December 31, 2020 | 0 | 0 |
Common stock: $0.001 par value, authorized 47,500 shares; 23,145 and 22,375 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively; | 23 | 22 |
Additional paid-in capital | 193,148 | 187,463 |
Accumulated deficit | (161,689) | (150,140) |
Total stockholders’ equity | 31,482 | 37,345 |
Total liabilities and stockholders’ equity | $ 39,651 | $ 39,395 |
Condensed Balance Sheets (Una_2
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 2,500 | 2,500 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized | 47,500 | 47,500 |
Common stock, issued | 23,145 | 22,375 |
Common stock, oustanding | 23,145 | 22,375 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 0 | $ 0 | $ 400 | $ 62 |
Cost of revenue | 0 | 0 | 0 | (13) |
Gross margin | 0 | 0 | 400 | 49 |
Operating expenses | ||||
Research and development | 2,232 | 2,049 | 6,530 | 6,197 |
General and administrative | 1,637 | 1,322 | 4,656 | 4,247 |
Selling and marketing | 267 | 208 | 670 | 648 |
Total operating expenses | 4,136 | 3,579 | 11,856 | 11,092 |
Loss from operations | (4,136) | (3,579) | (11,456) | (11,043) |
Other income (expense) | ||||
Interest income | 2 | 1 | 7 | 41 |
Interest expense | (52) | 0 | (52) | 0 |
Total other income (expense), net | (50) | 1 | (45) | 41 |
Net loss before income taxes | (4,186) | (3,578) | (11,501) | (11,002) |
Provision for income taxes | 17 | 0 | 48 | 0 |
Net loss | $ (4,203) | $ (3,578) | $ (11,549) | $ (11,002) |
Net loss per common share, basic and diluted | $ (0.19) | $ (0.19) | $ (0.52) | $ (0.61) |
Weighted average number of common shares outstanding, basic and diluted | 22,629 | 19,337 | 22,405 | 18,028 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 17 | $ 149,017 | $ (135,262) | $ 13,772 |
Beginning balance, shares at Dec. 31, 2019 | 17,117 | |||
Stock-based compensation | $ 1 | 628 | 629 | |
Stock-based compensation, shares | 420 | |||
Warrant exercise | 164 | 164 | ||
Warrant Exercise, shares | 189 | |||
Warrant modification | 139 | 139 | ||
Net loss | (3,645) | (3,645) | ||
Ending balance, value at Mar. 31, 2020 | $ 18 | 149,948 | (138,907) | 11,059 |
Ending balance, shares at Mar. 31, 2020 | 17,726 | |||
Underwritten public offering of common stock, net of commissions and expenses | $ 2 | 9,393 | 9,395 | |
Stock-based compensation | 766 | 766 | ||
Stock-based compensation, shares | 43 | |||
Stock option exercise | 137 | 137 | ||
Net loss | (3,779) | (3,779) | ||
Stock option exercise, shares | 33 | |||
Ending balance, value at Jun. 30, 2020 | $ 20 | 160,244 | (142,686) | 17,578 |
Ending balance, shares at Jun. 30, 2020 | 19,826 | |||
Stock-based compensation | 829 | 829 | ||
At-the-market sale of stock, net of commissions and expenses | $ 1 | 8,519 | 8,520 | |
At-the-market sale of stock, net of commissions and expenses, shares | 846 | |||
Stock option exercise | 645 | 645 | ||
Warrant exercise | 738 | 738 | ||
Warrant Exercise, shares | 196 | |||
Net loss | (3,578) | (3,578) | ||
Stock option exercise, shares | 103 | |||
Ending balance, value at Sep. 30, 2020 | $ 21 | 170,975 | (146,264) | 24,732 |
Ending balance, shares at Sep. 30, 2020 | 20,971 | |||
Beginning balance, value at Dec. 31, 2020 | $ 22 | 187,463 | (150,140) | 37,345 |
Beginning balance, shares at Dec. 31, 2020 | 22,375 | |||
Stock-based compensation | 731 | 731 | ||
Stock-based compensation, shares | 71 | |||
At-the-market sale of stock, net of commissions and expenses | 243 | 243 | ||
At-the-market sale of stock, net of commissions and expenses, shares | 14 | |||
Stock option exercise | $ 1 | 2,514 | 2,515 | |
Stock option exercise, shares | 398 | |||
Warrant exercise | ||||
Warrant Exercise, shares | 223 | |||
Forfeited restricted stock awards | ||||
Forfeited restricted stock awards, shares | (54) | |||
Net loss | (3,620) | (3,620) | ||
Ending balance, value at Mar. 31, 2021 | $ 23 | 190,951 | (153,760) | 37,214 |
Ending balance, shares at Mar. 31, 2021 | 23,027 | |||
Beginning balance, value at Dec. 31, 2020 | $ 22 | 187,463 | (150,140) | 37,345 |
Beginning balance, shares at Dec. 31, 2020 | 22,375 | |||
Ending balance, value at Sep. 30, 2021 | $ 23 | 193,148 | (161,689) | 31,482 |
Ending balance, shares at Sep. 30, 2021 | 23,145 | |||
Beginning balance, value at Mar. 31, 2021 | $ 23 | 190,951 | (153,760) | 37,214 |
Beginning balance, shares at Mar. 31, 2021 | 23,027 | |||
Stock-based compensation | 847 | 847 | ||
Stock-based compensation, shares | 18 | |||
Stock option exercise | 354 | 354 | ||
Net loss | (3,726) | (3,726) | ||
Stock option exercise, shares | 59 | |||
Ending balance, value at Jun. 30, 2021 | $ 23 | 192,152 | (157,486) | 34,689 |
Ending balance, shares at Jun. 30, 2021 | 23,104 | |||
Underwritten public offering of common stock, net of commissions and expenses, shares | 2,024 | |||
Stock-based compensation | 756 | 756 | ||
Stock option exercise | 240 | 240 | ||
Stock option exercise, shares | 49 | |||
Forfeited restricted stock awards | ||||
Forfeited restricted stock awards, shares | (8) | |||
Net loss | (4,203) | (4,203) | ||
Ending balance, value at Sep. 30, 2021 | $ 23 | $ 193,148 | $ (161,689) | $ 31,482 |
Ending balance, shares at Sep. 30, 2021 | 23,145 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Loss | $ (11,549) | $ (11,002) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 47 | 32 |
Operating lease right of use asset amortization | 136 | 107 |
Financing lease right of use asset amortization | 211 | 0 |
Stock-based compensation | 2,334 | 2,224 |
Warrant modification expense | 0 | 139 |
Non cash interest expense | 52 | 0 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (297) | (49) |
Long-term prepaid rent | 0 | (450) |
Accounts payable | (121) | 248 |
Accrued expenses | 104 | 89 |
Accrued payroll expenses | (271) | (308) |
Operating lease liability | (50) | (110) |
Deferred revenue | 0 | (37) |
Net cash used in operating activities | (9,404) | (9,117) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisition of property and equipment | (102) | (56) |
Net cash used in investing activities | (102) | (56) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from underwritten public offering, net of commission and expenses | 0 | 9,395 |
Proceeds from at-the-market sale of stock, net of commissions and expenses | 243 | 8,520 |
Proceeds from exercise of warrants | 0 | 902 |
Proceeds from exercise of stock options | 3,110 | 782 |
Net cash provided by financing activities | 3,353 | 19,599 |
Net increase (decrease) in cash and cash equivalents | (6,153) | 10,426 |
Cash and cash equivalents at beginning of period | 37,942 | 14,871 |
Cash and cash equivalents at end of period | 31,789 | 25,297 |
Supplemental information: | ||
Cash paid for interest | 0 | 0 |
Cash paid for taxes | $ 66 | $ 0 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | 1. NATURE OF OPERATIONS Atomera Incorporated (“Atomera” or the “Company”) was incorporated in the state of Delaware in March 2007 under the name MEARS Technologies, Inc. and is engaged in the development, commercialization and licensing of proprietary processes and technologies for the semiconductor industry. On January 12, 2016, the Company changed its name to Atomera Incorporated. Atomera is an early-stage company, having only recently begun limited revenue-generating activities, and is devoting substantially all of its efforts toward technology research and development and to commercially licensing its technology to manufacturers and designers of integrated circuits. The Company has primarily financed operations through private placements of equity and debt securities, the Company’s Initial Public Offering (the “IPO”) which was consummated on August 10, 2016, and subsequent public offerings of its common stock. |
LIQUIDITY AND MANAGEMENT PLANS
LIQUIDITY AND MANAGEMENT PLANS | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
LIQUIDITY AND MANAGEMENT PLANS | 2. LIQUIDITY AND MANAGEMENT PLANS At September 30, 2021, the Company had cash and cash equivalents of approximately $ 31.8 29.3 The Company’s operating plans for the next 12 months include increased spending on research and development headcount, outsourced fabrication and testing, and sales and marketing expenses to drive customer adoption of the Company’s MST technology. Based on the funds it has available as of the date of the filing of this report, the Company believes that it has sufficient capital to fund its current business plans and obligations over, at least, 12 months from the date that these financial statements have been issued. However, as the Company has generated only limited revenue, it is subject to all the risks inherent in the initial organization, financing, expenditures, complications and delays in a new business. Accordingly, the Company may require additional capital, the receipt of which cannot be assured. In the event the Company requires additional capital, there can be no guarantee that funds will be available on commercially reasonable terms, if at all. The Company’s future capital requirements and the adequacy of its available funds will depend on many factors, including the Company’s ability to successfully commercialize its technology, competing technological and market developments, and the need to enter into collaborations with other companies or acquire technologies to enhance or complement its current offerings. If the Company is unable to secure additional capital, it may be required to curtail its research and development initiatives and take additional measures to reduce costs in order to conserve its cash. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Significant accounting policies There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 19, 2021. Basis of presentation of unaudited condensed financial information The unaudited condensed financial statements of the Company for the three and nine months ended September 30, 2021 and 2020 have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. However, such information reflects all adjustments (consisting solely of normal recurring adjustments) which are, in the opinion of management, necessary for the fair presentation of the Company’s financial position and its results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal year. The balance sheet information as of December 31, 2020, was derived from the audited financial statements included in the Company's financial statements as of and for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K filed with the SEC on February 19, 2021. These unaudited condensed financial statements should be read in conjunction with that report. Adoption of recent accounting standards In December 2019, the FASB issued ASU No. 2019-12, Simplifying Accounting for Income Taxes Income taxes Recent accounting standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | 4. REVENUE The Company recognizes revenue in accordance with ASC 606. The amount of revenue that the Company recognizes reflects the consideration it expects to receive in exchange for goods or services and such revenue is recognized at the time when goods or services are transferred and/or delivered to its customers. Revenue is recognized when the Company satisfies a performance obligation by transferring the product or service to the customer. The Company generates revenues from engineering service contracts, integration license agreements and joint development agreements. When the Company’s performance obligation is the promise to grant a license, revenue is recognized either at a point in time or over time. The following table provides information about disaggregated revenue by primary geographical markets and timing of revenue recognition (in thousands): Information about disaggregated revenue and timing of revenue Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Primary geographic markets North America $ – $ – $ – $ 62 Asia Pacific – – 400 – Total $ – $ – $ 400 $ 62 Timing of revenue recognition Products and services transferred at a point in time $ – $ – $ 400 $ 62 Products and services transferred over time – – – – Total $ – $ – $ 400 $ 62 Unbilled contracts receivable and deferred revenue Timing of revenue recognition may differ from the timing of invoicing customers. Accounts receivable includes amounts billed and currently due from customers. Unbilled contracts receivable represents unbilled amounts expected to be received from customers in future periods, where the revenue recognized to date exceeds the amount billed, and the right to receive payment is subject to the underlying contractual terms. Unbilled contracts receivable amounts may not exceed their net realizable value and are classified as long-term assets if the payments are expected to be received more than one year from the reporting date. The Company records deferred revenue when revenue will be recognized after invoicing. During the nine months ended September 30, 2020, the Company recognized approximately $ 37,000 |
BASIC AND DILUTED LOSS PER SHAR
BASIC AND DILUTED LOSS PER SHARE | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED LOSS PER SHARE | 5. BASIC AND DILUTED LOSS PER SHARE Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the sum of the weighted average number of shares of common stock outstanding and the dilutive common stock equivalent shares outstanding during the period. The Company’s potentially dilutive common stock equivalent shares, which include incremental common shares issuable upon (i) the exercise of outstanding stock options and warrants and (ii) vesting of restricted stock units and restricted stock awards, are only included in the calculation of diluted net loss per share when their effect is dilutive. Since the Company has had net losses for all periods presented, all potentially dilutive securities are anti-dilutive. Accordingly, basic and diluted net loss per share are equal. The following potential common stock equivalents were not included in the calculation of diluted net loss per common share because the inclusion thereof would be anti-dilutive (in thousands): Schedule of anti dilutive shares Three and Nine Months Ended September 30, 2021 2020 Stock Options 2,975 3,463 Unvested restricted stock 452 716 Warrants 1 369 Total 3,428 4,548 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2021 | |
Leases | |
LEASES | 6. LEASES The Company leases corporate office space in Los Gatos, California. In August 2020, the Company and its landlord amended the lease for this office. This amendment extends the expiration date of the operating lease from January 2021 to January 2026 and increases the space from 3,396 square feet to 4,101 square feet. Under ASC 842, the lease amendment was treated as a separate lease for the new space and a modification of the lease for the original space. An additional right-of-use (“ROU”) asset and lease liability of approximately $ 681,000 144,000 5.5 In March 2021, the Company began leasing 474 square feet of office space in Tempe, Arizona. The new lease is classified as an operating lease with an initial term of two years and an option to extend for an additional three years through February 2026. The lease also contains a performance standard for research collaboration with Arizona State University. The agreement requires a minimum value of collaborative research in each year of the lease. The lease is accounted for under ASC 842 and accordingly, the research payments are included in the ROU and lease liability at the commencement. In March 2021, the Company recorded an ROU and associated lease liability of approximately $ 238,000 5.25 In October 2019, the Company entered into an agreement to lease a tool for use in the development of the Company’s technology. The lease is for five 5 150,000 per month 450,000 6.4 6 5.25 Lease expense for operating leases consists of the lease payments recognized on a straight-line basis over the lease term. Expenses for financing leases consists of the amortization expenses recognized on a straight-line basis over the lease term and interest expense. The components of lease costs were as follows (in thousands): Components of lease costs Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Financing lease costs: Amortization of ROU Assets $ 211 $ – $ 211 $ – Interest on lease liabilities 52 – 52 – Operating lease costs Fixed lease costs 63 30 177 83 Variable lease costs – 9 – 36 Short-term lease costs 10 11 32 28 Total operating lease costs $ 336 $ 50 $ 472 $ 147 Future minimum payments under non-cancellable leases as of September 30, 2021 were as follows (in thousands): Schedule of future minimum lease payments For the Year Ended December 31, Financing leases Operating leases Remaining 2021 $ 597 $ 60 2022 1,436 239 2023 1,436 271 2024 1,436 278 2025 & thereafter 1,914 305 Total future minimum lease payments 6,819 1,153 Less imputed interest (743 ) (130 ) Total lease liability $ 6,076 $ 1,023 The following table provides supplemental information and non-cash activity related to the Company’s operating and financing leases (in thousands): Supplemental non-cash activity related to operating leases Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Operating cash flow information: Cash paid for amounts included in the measurement of operating lease liabilities $ 52 $ 41 $ 90 $ 123 Cash paid for amounts included in the measurement of financing lease liabilities – – – – Non-cash activity: Right-of-use assets obtained in exchange for operating lease obligations $ – $ 681 $ 382 $ 681 Right-of-use assets obtained in exchange for financing lease obligations $ 6,383 $ – $ 6,383 $ – The weighted average remaining discount rate is 5.25 4.4 4.8 |
WARRANTS
WARRANTS | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
WARRANTS | 7. WARRANTS A summary of warrant activity for the nine months ended September 30, 2021 is as follows (in thousands except per share amounts and contractual term): Schedule of warrant activity Number of Shares Weighted- Average Exercise Price Weighted- Remaining Contractual Term (In Years) Outstanding at January 1, 2021 320 $ 9.47 Exercised (318 ) $ 9.38 Expired (1 ) $ 9.38 Outstanding at September 30, 2021 1 $ 33.75 0.5 The warrants outstanding at September 30, 2021 had an intrinsic value of $ 0 23.09 On March 17, 2020, 196,602 warrants with an exercise price of $3.75 were set to expire. Prior to the expiration, the Company entered into an agreement with the warrant holders, whereby it modified the terms of the warrants to extend the expiration date until September 17, 2020 in exchange for the removal of a cashless exercise provision. No other terms were modified. Due to this modification, the Company incurred a modification expense of approximately $ 139,000 In January 2021, warrants for 317,488 223,487 |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | 8. STOCK BASED COMPENSATION In May 2017, the Company’s shareholders approved its 2017 Stock Incentive Plan (“2017 Plan”) after its 2007 Stock Incentive Plan (“2007 Plan”) had expired in March 2017. The 2017 Plan provides for the grant of non-qualified stock options and incentive stock options to purchase shares of the Company’s common stock and for the grant of restricted and unrestricted shares. The 2017 Plan provides for the issuance of 3,750,000 The following table summarizes the stock-based compensation expense recorded in the Company’s results of operations during the three and nine months ended September 30, 2021 and 2020 for stock options and restricted stock granted under the 2017 Plan and the 2007 Plan (in thousands): Schedule of stock-based compensation expense Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Research and development $ 267 $ 319 $ 757 $ 843 General and administrative 442 470 1,451 1,269 Selling and Marketing 47 40 126 112 Total $ 756 $ 829 $ 2,334 $ 2,224 As September 30, 2021, there was approximately $ 6.1 2.3 The weighted average grant date fair value per share of the options granted under the Company’s 2017 Plan was $ 13.77 15.29 7.64 2.80 The following table summarizes stock option activity during the nine months ended September 30, 2021 (in thousands except exercise prices and contractual terms): Schedule of stock option activity Number of Shares Weighted- Average Exercise Prices per Share Weighted- Remaining Contractual Term (In Years) Intrinsic Outstanding at January 1, 2021 3,446 $ 5.97 Granted 153 $ 21.77 Exercised (506 ) $ 6.14 Forfeited (118 ) $ 4.50 Outstanding at September 30, 2021 2,975 $ 6.81 6.03 $ 48,544 Exercisable at September 30, 2021 2,310 $ 6.47 5.36 $ 38,471 During the nine months ended September 30, 2021, the Company granted options under the 2017 Plan to purchase approximately 153,000 2.3 The Company issues restricted stock to employees, directors and consultants and estimates the fair value based on the closing price on the day of grant. The following table summarizes all restricted stock activity during the nine months ended September 30, 2021 (in thousands except per share data): Schedule of restricted stock option activity Number of Shares Weighted- Average Grant Date Outstanding at January 1, 2021 642 $ 4.43 Granted 89 $ 21.02 Vested (216 ) $ 6.39 Forfeited (63 ) $ 5.69 Outstanding non-vested shares at September 30, 2021 452 $ 6.58 During the nine months ended September 30, 2021 the Company granted approximately 89,000 1.9 During the nine months ended September 30, 2021, approximately 63,000 |
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | 9. PROVISION FOR INCOME TAXES The Company recorded a provision for income taxes of approximately $ 17,000 48,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS AND CONTINGENCIES Litigation, Claims and Assessments The Company may be subject to periodic lawsuits, investigations and claims that arise in the ordinary course of business. The Company is not party to any material litigation as of September 30, 2021, or through the date these financial statements have been issued. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 11. SUBSEQUENT EVENTS Management has evaluated subsequent events and transactions through the date these financial statements were issued. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation of unaudited condensed financial information | Basis of presentation of unaudited condensed financial information The unaudited condensed financial statements of the Company for the three and nine months ended September 30, 2021 and 2020 have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. However, such information reflects all adjustments (consisting solely of normal recurring adjustments) which are, in the opinion of management, necessary for the fair presentation of the Company’s financial position and its results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal year. The balance sheet information as of December 31, 2020, was derived from the audited financial statements included in the Company's financial statements as of and for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K filed with the SEC on February 19, 2021. These unaudited condensed financial statements should be read in conjunction with that report. |
Adoption of recent accounting standards | Adoption of recent accounting standards In December 2019, the FASB issued ASU No. 2019-12, Simplifying Accounting for Income Taxes Income taxes |
Recent accounting standards | Recent accounting standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Information about disaggregated revenue and timing of revenue | Information about disaggregated revenue and timing of revenue Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Primary geographic markets North America $ – $ – $ – $ 62 Asia Pacific – – 400 – Total $ – $ – $ 400 $ 62 Timing of revenue recognition Products and services transferred at a point in time $ – $ – $ 400 $ 62 Products and services transferred over time – – – – Total $ – $ – $ 400 $ 62 |
BASIC AND DILUTED LOSS PER SH_2
BASIC AND DILUTED LOSS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of anti dilutive shares | Schedule of anti dilutive shares Three and Nine Months Ended September 30, 2021 2020 Stock Options 2,975 3,463 Unvested restricted stock 452 716 Warrants 1 369 Total 3,428 4,548 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases | |
Components of lease costs | Components of lease costs Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Financing lease costs: Amortization of ROU Assets $ 211 $ – $ 211 $ – Interest on lease liabilities 52 – 52 – Operating lease costs Fixed lease costs 63 30 177 83 Variable lease costs – 9 – 36 Short-term lease costs 10 11 32 28 Total operating lease costs $ 336 $ 50 $ 472 $ 147 |
Schedule of future minimum lease payments | Schedule of future minimum lease payments For the Year Ended December 31, Financing leases Operating leases Remaining 2021 $ 597 $ 60 2022 1,436 239 2023 1,436 271 2024 1,436 278 2025 & thereafter 1,914 305 Total future minimum lease payments 6,819 1,153 Less imputed interest (743 ) (130 ) Total lease liability $ 6,076 $ 1,023 |
Supplemental non-cash activity related to operating leases | Supplemental non-cash activity related to operating leases Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Operating cash flow information: Cash paid for amounts included in the measurement of operating lease liabilities $ 52 $ 41 $ 90 $ 123 Cash paid for amounts included in the measurement of financing lease liabilities – – – – Non-cash activity: Right-of-use assets obtained in exchange for operating lease obligations $ – $ 681 $ 382 $ 681 Right-of-use assets obtained in exchange for financing lease obligations $ 6,383 $ – $ 6,383 $ – |
WARRANTS (Tables)
WARRANTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of warrant activity | Schedule of warrant activity Number of Shares Weighted- Average Exercise Price Weighted- Remaining Contractual Term (In Years) Outstanding at January 1, 2021 320 $ 9.47 Exercised (318 ) $ 9.38 Expired (1 ) $ 9.38 Outstanding at September 30, 2021 1 $ 33.75 0.5 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expense | Schedule of stock-based compensation expense Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Research and development $ 267 $ 319 $ 757 $ 843 General and administrative 442 470 1,451 1,269 Selling and Marketing 47 40 126 112 Total $ 756 $ 829 $ 2,334 $ 2,224 |
Schedule of stock option activity | Schedule of stock option activity Number of Shares Weighted- Average Exercise Prices per Share Weighted- Remaining Contractual Term (In Years) Intrinsic Outstanding at January 1, 2021 3,446 $ 5.97 Granted 153 $ 21.77 Exercised (506 ) $ 6.14 Forfeited (118 ) $ 4.50 Outstanding at September 30, 2021 2,975 $ 6.81 6.03 $ 48,544 Exercisable at September 30, 2021 2,310 $ 6.47 5.36 $ 38,471 |
Schedule of restricted stock option activity | Schedule of restricted stock option activity Number of Shares Weighted- Average Grant Date Outstanding at January 1, 2021 642 $ 4.43 Granted 89 $ 21.02 Vested (216 ) $ 6.39 Forfeited (63 ) $ 5.69 Outstanding non-vested shares at September 30, 2021 452 $ 6.58 |
LIQUIDITY AND MANAGEMENT PLANS
LIQUIDITY AND MANAGEMENT PLANS (Details Narrative) $ in Thousands | Sep. 30, 2021USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cash and Cash Equivalents, at Carrying Value | $ 31,800 |
Working capital | $ 29,300 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ 400 | $ 62 |
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 400 | 62 |
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 62 |
Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ 400 | $ 0 |
REVENUE (Details Narrative)
REVENUE (Details Narrative) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized that was previously included in deferred revenue | $ 37 |
BASIC AND DILUTED LOSS PER SH_3
BASIC AND DILUTED LOSS PER SHARE (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential common stock equivalents | 3,428 | 4,548 | 3,428 | 4,548 |
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential common stock equivalents | 2,975 | 3,463 | 2,975 | 3,463 |
Unvested Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential common stock equivalents | 452 | 716 | 452 | 716 |
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential common stock equivalents | 1 | 369 | 1 | 369 |
LEASES (Details - Lease costs)
LEASES (Details - Lease costs) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Financing lease costs: | ||||
Amortization of ROU Assets | $ 211 | $ 0 | $ 211 | $ 0 |
Interest on lease liabilities | 52 | 0 | 52 | 0 |
Operating lease costs | ||||
Fixed lease costs | 63 | 30 | 177 | 83 |
Variable lease costs | 0 | 9 | 0 | 36 |
Short-term lease costs | 10 | 11 | 32 | 28 |
Total operating lease costs | $ 336 | $ 50 | $ 472 | $ 147 |
LEASES (Details - Minimum lease
LEASES (Details - Minimum lease payments) $ in Thousands | Sep. 30, 2021USD ($) |
Leases | |
Remaining 2021 | $ 597 |
Remaining 2021 | 60 |
2022 | 1,436 |
2022 | 239 |
2023 | 1,436 |
2023 | 271 |
2024 | 1,436 |
2024 | 278 |
2025 & thereafter | 1,914 |
2025 & thereafter | 305 |
Total future minimum lease payments | 6,819 |
Total future minimum lease payments | 1,153 |
Less imputed interest | (743) |
Less imputed interest | (130) |
Total lease liability | 6,076 |
Total lease liability | $ 1,023 |
LEASES (Details - Cash flow eff
LEASES (Details - Cash flow effect) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating cash flow information: | ||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 52 | $ 41 | $ 90 | $ 123 |
Cash paid for amounts included in the measurement of financing lease liabilities | 0 | 0 | 0 | 0 |
Non-cash activity: | ||||
Right-of-use assets obtained in exchange for operating lease obligations | 0 | 681 | 382 | 681 |
Right-of-use assets obtained in exchange for financing lease obligations | $ 6,383 | $ 0 | $ 6,383 | $ 0 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 2 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Aug. 01, 2021 | Mar. 31, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Aug. 31, 2020 | |
Operating Lease, Right-of-Use Asset | $ 950,000 | $ 705,000 | |||||
Operating Lease, Liability | 1,023,000 | ||||||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 6,170,000 | $ 0 | |||||
Finance Lease, Liability | $ 6,076,000 | ||||||
[custom:LeaseWeightedAverageDiscountRatePercent-0] | 5.25% | ||||||
Operating Lease, Weighted Average Remaining Lease Term | 4 years 4 months 24 days | ||||||
Finance Lease, Weighted Average Remaining Lease Term | 4 years 9 months 18 days | ||||||
Los Gatos, CA [Member] | |||||||
Operating Lease, Right-of-Use Asset | $ 144,000 | $ 681,000 | |||||
Operating Lease, Liability | $ 144,000 | $ 681,000 | |||||
Operating Lease, Weighted Average Discount Rate, Percent | 5.50% | ||||||
Tempe, AZ [Member] | |||||||
Operating Lease, Right-of-Use Asset | $ 238,000 | ||||||
Operating Lease, Liability | $ 238,000 | ||||||
Operating Lease, Weighted Average Discount Rate, Percent | 5.25% | ||||||
Tool Lease [Member] | |||||||
Lessee, Finance Lease, Term of Contract | 5 years | ||||||
Lessee, Finance Lease, Description | 150,000 per month | ||||||
Payments for Rent | $ 450,000 | ||||||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | $ 6,400,000 | ||||||
Finance Lease, Liability | $ 6,000,000 | ||||||
Finance Lease, Weighted Average Discount Rate, Percent | 5.25% |
WARRANTS (Details - Warrant act
WARRANTS (Details - Warrant activity) - Warrant [Member] - $ / shares | 1 Months Ended | 9 Months Ended |
Jan. 31, 2021 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants outstanding, beginning balance | 320,000 | 320,000 |
Weighted-average exercise price, warrants outstanding, beginning balance | $ 9.47 | $ 9.47 |
Warrants exercised | (317,488) | (318,000) |
Weighted-average exercise price, warrants exercised | $ 9.38 | |
Expired | (1,000) | |
Expired | $ 9.38 | |
Warrants outstanding, ending balance | 1,000 | |
Weighted-average exercise price, warrants outstanding, ending balance | $ 33.75 | |
Weighted-average remaining contractual term | 6 months |
WARRANTS (Details Narrative)
WARRANTS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | |
Jan. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Warrant modification expense | $ 0 | $ 139 | |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 223,487 | ||
Warrant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Warrant intrinsic value | $ 0 | ||
Stock price | $ 23.09 | ||
Warrant modification expense | $ 139 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | 317,488 | 318,000 |
STOCK BASED COMPENSATION (Detai
STOCK BASED COMPENSATION (Details - Compensation Expense) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Allocated stock-based compensation | $ 756 | $ 829 | $ 2,334 | $ 2,224 |
Research and Development Expense [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Allocated stock-based compensation | 267 | 319 | 757 | 843 |
General and Administrative Expense [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Allocated stock-based compensation | 442 | 470 | 1,451 | 1,269 |
Selling and Marketing [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Allocated stock-based compensation | $ 47 | $ 40 | $ 126 | $ 112 |
STOCK BASED COMPENSATION (Det_2
STOCK BASED COMPENSATION (Details - Stock Option Activity) - Equity Option [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, beginning balance | 3,446 |
Weighted average exercise price, options outstanding beginning balance | $ 5.97 |
Options granted | 153 |
Weighted average exercise price, options granted | $ 21.77 |
Options exercised | (506) |
Weighted average exercise price, options exercised | $ 6.14 |
Options Forfeited | (118) |
Weighted average exercise price, options Forfeited | $ 4.50 |
Options outstanding, ending balance | 2,975 |
Weighted average exercise price, options outstanding, ending balance | $ 6.81 |
Weighted average remaining contractual term, options outstanding | 6 years 10 days |
Intrinsic value, options outstanding ending balance | $ 48,544 |
Options exercisable | 2,310 |
Weighted average exercise price, options exercisable | $ 6.47 |
Weighted average remaining contractual term, options exercisable | 5 years 4 months 9 days |
Intrinsic value, options exercisable | $ 38,471 |
STOCK BASED COMPENSATION (Det_3
STOCK BASED COMPENSATION (Details - Restricted stock) - Restricted Stock [Member] shares in Thousands | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock outstanding, beginning balance | shares | 642 |
Restricted stock outstanding, beginning balance | $ / shares | $ 4.43 |
Restricted stock granted | shares | 89 |
Restricted stock granted | $ / shares | $ 21.02 |
Restricted stock vested | shares | (216) |
Restricted stock vested | $ / shares | $ 6.39 |
Restricted stock Forfeited | shares | (63) |
Restricted stock Forfeited | $ / shares | $ 5.69 |
Restricted stock outstanding, ending balance | shares | 452 |
Restricted stock outstanding, ending balance | $ / shares | $ 6.58 |
STOCK BASED COMPENSATION (Det_4
STOCK BASED COMPENSATION (Details Narrative) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 6,100 | $ 6,100 | ||
Unrecognized compensation weighted average period | 2 years 3 months 18 days | |||
Weighted average grant date fair value per share | $ 13.77 | $ 7.64 | $ 15.29 | $ 2.80 |
Options granted | 153 | |||
Fair value of options granted | $ 2,300 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock granted | 89 | |||
Fair value of restricted stock granted | $ 1,900 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 63 | |||
2017 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for issuance | 3,750 | 3,750 |
PROVISION FOR INCOME TAXES (Det
PROVISION FOR INCOME TAXES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income taxes expenses | $ 17 | $ 0 | $ 48 | $ 0 |