Atomera Incorporated · NASDAQ:ATOM
Atomera — Investor Presentation (January 2021)
25 slides from Atomera's investor presentation, January 2021
Slide 1: Investor Presentation
Investor Presentation January 2021 1/15/21 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 1/15/21 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 1/15/21 Atomera Incorporated 5
Slide 6: Patent Portfolio
Patent Portfolio 267 Patents Granted and Pending Discoverable These distinctive layers are visible on products using MST 112 US Patents 80 59 Foreign 21 Pending US 75 Foreign Patents Core MST Method and Device Extensive know-how MST Enabled Devices/Architecture Extends life and value of patents Next
Slide 7: Target Customers & Partners
Target Customers & Partners Integrated Device Manufacturers Foundry Fabless Tool Suppliers (Partners) 1/15/21 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: Joint Development Agreements
Joint Development Agreements ► Targets large potential customers § Multiple production nodes § Multiple technology and product divisions § Designed to integrate both development, licensing components and manufacturing requirements ► First major agreement signed at end of 2020 with market leading sem
Slide 10: Customer Pipeline
Customer Pipeline Number of Customer Engagements 27 24 21 18 15 12 9 6 3 0 IPO 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 16 16 17 17 17 17 18 18 18 18 19 19 19 19 20 20 20 Phase 1 Phase 2 Phase 3 • 19 customers, 25 engagements • Working with 50% of the world’s top semiconductor makers* * At
Slide 11: Royalty Opportunity
Royalty Opportunity ► ~370 wafer fabs operating worldwide ► Adoption of MST in one fab can make Atomera profitable from royalties alone § 2020 non-GAAP OPEX guidance is $12.00-12.25M 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 § 15% performance improvement option raises price by $150 Wafer GM$ selling Increase Fab wafer Price GM% over base Cost* 28nm HP wafer - base $ 3,000 45% $ - $ 1,650 28nm HP+ wafer $ 3,150 45% $ 68 $ 1,733 15% impr
Slide 13: Customer Engagements and Cash Efficient Growth
Cash Efficient Growth 27 19 24 21 17 Customer Engagements Annual 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 16 16 17 17 17 17 18 18 18 18 19 19 19 19 20 20 Phase 1 Phase 2 Phase 3 Annual cash burn 1/15/21 Atomera Incorporated 13
Slide 14: Financial Review
Financial Review FY 2019 Q1 '20 Q2 '20 Q3 '20 YTD 2020 Balance Sheet 09/30/20 GAAP Results Cash $25.30M Revenue $0.53M $0.06M $ - $ - $0.06M Debt - Gross Profit $0.28M $0.05M $ - $ - $0.05M Shares Outstanding 21.0M Operating Expense R&D $7.7 $2.1M $2.1M $2.0M $6.2M $25M ATM ($24.2M net) completed G&
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 1/15/21 Atomera Incorporated 15
Slide 16: Thank You
Thank You 1/15/21 Atomera Incorporated 16
Slide 17: Backup Slides
Backup Slides 1/15/21 Atomera Incorporated 17
Slide 18: 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 1/15/21 Atomera Incorporated 18
Slide 19: 300mm Epi Tool
300mm Epi Tool Source: The McClean Report - 2019 300mm Epi Deposition Tool 1/15/21 Atomera Incorporated 19
Slide 20: 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 1/15
Slide 21: Atomera Licensees
Atomera Licensees Large fabless RF semiconductor company 1/15/21 Atomera Incorporated 21
Slide 22: 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 23: 5V Analog Breakthrough
5V Analog Breakthrough ► 3. Breakthrough performance achieved on 5V analog products ► Large segment of the overall analog market ► Atomera has targeted ~20% improvement on 5V devices ► In April Atomera demonstrated a 50%+ improvement § Using MST-SP technology § Relatively fast and easy to implement
Slide 24: MST-SP Progress
MST-SP Progress MST SP Progress 3.0 2.5 2.0 RSP 1.5 2 (mΩ-mm ) 1.0 0.5 0.0 Feb-19 May-19 Aug-19 Dec-19 Mar-20 Jun-20 Sep-20 Control MST SP Industry Top Runner 1/15/21 Atomera Incorporated 24
Slide 25: 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