Atomera Incorporated · NASDAQ:ATOM
Atomera — Investor Presentation (August 2021)
30 slides from Atomera's investor presentation, August 2021
Slide 1: Investor Presentation August 2021
Investor Presentation August 2021 Atomera Incorporated 1
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements concerning Atomera Incorporated (““Atomera,” the “Company,” “we,” “us,” and “our”). The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “plan,” “expect” and s
Slide 3: Investment Overview
Investment Overview ► Mears Silicon Technology (MST®) is a thin film used to enhance semiconductors § Results in higher performance, lower power, and lower costs for ICs ► Capital-light IP and technology licensing business § Robust and growing patent portfolio ► Engaged with 50% of world’s top semic
Slide 4: A Better Way for Industry R&D
A Better Way for Industry R&D In House R&D Industry Consortia Equipment OEMs Large Scale, Targeted Innovation Little Control No Longer Available Long Term Investment Inexpensive Expensive & Tied to & Low Risk Inefficient Equipment Sales Atomera Incorporated 4
Slide 5: MST Technology
MST Technology Potential Benefits ► Improved Efficiency § Higher transistor performance § Lower power consumption § Better reliability ► Lower cost § Reduced die size § Improved yield § Higher throughput ► Same benefits as a node shrink Atomera Incorporated 5
Slide 6: IP – 25% increase in issued patents YoY
IP – 25% increase in issued patents YoY 276 Patents Granted and Pending Discoverable These distinctive layers are visible on products using MST 114 US Patents 65 86 Foreign Pending 21 US 76 Foreign Patents Core MST Method and Device Extensive know-how MST Enabled Devices/Architecture Extends life an
Slide 7: Target Customers & Partners
Target Customers & Partners Integrated Device Manufacturers Foundry Fabless Tool Suppliers (Partners) Atomera Incorporated 7
Slide 8: Customer Engagement & Revenue Model
Customer Engagement & Revenue Model v Customer Wafer Manufacturing Atomera MST® Deposition Customer MST® Deposition 1. Planning 2. Setup 3. Integration 4. Installation 5. Qualification 6. Production Phase Engineering Service • MST deposition on customer wafers Fees • Integration consulting • Integra
Slide 9: Customer Engagement Model
Customer Engagement Model Customer Wafer Manufacturing Standard customer engagement Atomera MST® Deposition Customer MST® Deposition Planning Setup Integration Installation Qualification Production Phase Current joint Atomera MST® Deposition Customer MST® Deposition development Planning Setup Instal
Slide 10: Customer Pipeline
Customer Pipeline Number of Customer Engagements 27 24 21 18 15 12 9 6 3 0 O 21 21 16 16 17 17 17 17 18 18 18 18 19 19 19 19 20 20 20 20 IP 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Phase 1 Phase 2 Phase 3 Phase 4 • 19 customers, 25 engagements • Working with 50% of the world’s top
Slide 11: Royalty Opportunity
Royalty Opportunity ► ~370 wafer fabs operating worldwide ► Adoption of MST in one fab can make Atomera profitable from royalties alone § 2021 non-GAAP OPEX guidance is $14.00-14.5M Example 1 | Worldwide Average Fab Example 2 | Leading Foundry, 28nm Fab Monthly Fab Capacity1 Monthly Fab Capacity 49,
Slide 12: MST Customer Business Opportunity
MST Customer Business Opportunity ► Standard industry fab wafer pricing, GM, and cost GM$ MST Price GM% Increase Royalty Cost 28nm HP wafer $ 3,000 45% $ - $ - $ 1,650 28nm HP+ wafer $ 3,150 $150 price increase for +15% performance ► Fab gets a 30% performance improvement or 25% shrink via MST MST p
Slide 13: Customer Engagements / Cash Efficient Growth
Cash Efficient Growth 27 19 24 21 17 Customer Engagements TTM Cash Burn ($M) 18 15 15 13 12 11 9 9 6 3 7 0 5 IPO 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 16 16 17 17 17 17 18 18 18 18 19 19 19 19 20 20 20 20 Phase 1 Phase 2 Phase 3 Annual cash burn Atomera Incorporated 13
Slide 14: Financial Review
Financial Review Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Balance Sheet 6/30/21 GAAP Results Cash $34.3M Revenue $ - $ - $ - $0.4M $ - Debt - Gross Profit $ - $ - $ - $0.4M $ - Shares Outstanding 23.1M Operating Expense R&D $2.1M $2.0M $2.2M $2.2M $2.1M G&A $1.5M $1.3M $1.4M $1.5 $1.5M S&M $0.2M $0.2M $0.
Slide 15: Summary
Summary ► High margin, recurring revenue financial model ► Strong technology, patent position, and balance sheet ► Traction with many top industry players and growing licensee base ► Ramping commercial license revenues Atomera Incorporated 15
Slide 16: Thank You
Thank You Atomera Incorporated 16
Slide 17: Backup Slides
Backup Slides Atomera Incorporated 17
Slide 18: Customer Engagement Model
Customer Engagement Model Customer Wafer Manufacturing Standard customer engagement Atomera MST® Deposition Customer MST® Deposition Planning Setup Integration Installation Qualification Production Phase Joint development Atomera MST® Deposition Customer MST® Deposition engagement Planning Setup Int
Slide 19: MST technology focus areas
MST technology MST-SP focus areas MST for RF-SOI MST for Advanced Nodes Atomera 19
Slide 20: Atomera MSTcad
Atomera MSTcad™ ► Leading semiconductor companies use TCAD to model manufacturing processes § MSTcad is an add-on for MST ► MSTcad can speeds up the time needed to evaluate multiple MST integration options ► Lowers cost of MST evaluation ► Speeds time to successful wafer runs ► Fewer wafer runs lead
Slide 21: Capacity challenge and opportunity
Capacity challenge and opportunity ► Chip shortages create challenge § Shortages focused on legacy nodes ► Legacy nodes made up 52% of production in 2020 § 41% at 40nm and below § 22% at 0.18u and below ► MST provides an option to increase capacity in older production lines Atomera Incorporated 21
Slide 22: MST enables legacy capacity expansion
MST enables legacy capacity expansion ► MST provides 30% performance advantage § 0.13u analog design § MST vs control silicon ► Enables a die shrink of 15-20% ► Smaller die means more manufacturing capacity § Without the cost of building a new fab Atomera Incorporated 22
Slide 23: MST 28nm benefits
MST 28nm benefits MST shows 30% ► Performance improvements due to MST can be higher performance traded for area reduction ► 28nm PDK SPICE model used to showcase: § Logic scaling with MST shows 22-25% area reduction • Using a NAND2 gate § Analog scaling with MST shows up to 21% area reduction ► Impl
Slide 24: Joint Development Agreements
Joint Development Agreements ► Advantages of joint development § Atomera and customer engineers aligned on common goal § Customer “resident expert” team develops expertise on Atomera technology § Resident experts become natural advocates ► First JDA signed with market leading semiconductor company §
Slide 25: MST: Mears Silicon Technology
MST: Mears Silicon Technology Quantum Engineered Silicon Partial Monolayers of MST Enhanced Oxygen in Silicon Transistors Supported by Major Semiconductor Tool Suppliers Atomera Incorporated 25
Slide 26: 300mm Epi Tool
300mm Epi Tool Source: The McClean Report - 2019 300mm Epi Deposition Tool Atomera Incorporated 26
Slide 27: Atomera MSTcad Progress
Atomera MSTcad™ Progress ► Leading semiconductor companies use TCAD ► MST is modelled with a TCAD add-on called MSTcad ► These plots show silicon verification of MSTcad simulations ► Enables good electrical match-up for 5V NMOS and MST SP ► Should speed time to successful results with customers Atom
Slide 28: Atomera Licensees
Atomera Licensees Large fabless RF semiconductor company Market Leading semiconductor company Atomera Incorporated 28
Slide 29: MST1 vs MST2
MST1 vs MST2 ► MST1 § Blanket technology § Easy to integrate § Deposited at beginning of mfg process § Degraded by high heat in STI/Well module § Faster time to market for low heat processes § Used for FinFET, RFSOI, newer process nodes ► MST2 § Selective technology • Integrated after STI/Well so av
Slide 30: MST Matching Performance
MST Matching Performance 35 ► Transistor mismatch is an industry problem Si control 30 ► Certain circuit designs benefit from mismatch MST process 25 reduction Better Matching § A-D convertors 20 σΔVth [mV] § SRAM 15 § Flash 10 § DRAM sense amplifiers ► MST can reduce mismatch by more than 50% 5 1.8