Atomera Incorporated · NASDAQ:ATOM
Atomera — Investor Presentation (November 2020)
25 slides from Atomera's investor presentation, November 2020
Slide 1: Investor Presentation
Investor Presentation November 2020
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 licensing business • Robust and growing patent portfolio • Engaged with 50% of world’s top semiconductor makers
Slide 4: A better way for industry R&D
A better way for industry R&D Industry Consortia Equipment OEMs In house R&D Atomera Little control No longer available Large scale, long term Targeted Innovation Expensive and Inefficient Tied to equipment sales investment Inexpensive and low risk 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 5
Slide 6: Patent Portfolio
Patent Portfolio 244 Patents Granted and Pending Discoverable 94 US Patents 93 57 36 Pending Foreign US 57 These distinctive layers are visible Foreign on products using MST Patents Extensive know-how Core MST Method and Device Extends life and value of patents MST Enabled Devices/Architecture Next-
Slide 7: Target Customers & Partners
Target Customers & Partners Integrated Device Manufacturers Foundry Fabless Tool Suppliers (Partners) 7
Slide 8: Customer engagement and revenue model
Customer engagement and 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 • MST deposition on customer wafers Engineering Service Fees • Integration consulting • Integ
Slide 9: Joint Development Agreements
Joint Development Agreements Target large potential customers Multiple production nodes Multiple technology and product divisions Agreement will be designed to integrate both development, licensing components and manufacturing requirements 9
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* 10 *
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 $12.75-13.25M Example 1. Worldwide Average Fab Example 2. Leading Foundry, 28nm Fab Monthly Fab Capacity1 Monthly Fab Capacity 49,0
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% improvem
Slide 13: Customer Engagements / 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 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 Phase 1 Phase 2 Phase 3 Annual cash burn 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 G&A $5.2 $1.4M $1.5M $1.3M $4.2M S
Slide 15: Summary
Summary High margin, recurring revenue financial model Strong technology and patent position Traction with many top industry players and growing licensee base Ramping commercial license revenues 15
Slide 16: Thank You
os e atomera Thank You
Slide 17: Backup Slides
Backup Slides atomera
Slide 18: MST: Mears Silicon Technology
MST® : Mears Silicon Technology Partial monolayers of Oxygen in Silicon Supported by major Semiconductor tool suppliers MST enhanced Transistors Quantum Engineered Silicon 18
Slide 19: 300mm Epi tool
300mm Epi tool Source: The McClean Report - 2019 300mm Epi Deposition Tool 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 20 Atomera Con
Slide 21: Atomera Licensees
Atomera Licensees Large fabless RF semiconductor company 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 avoids highest heat Mo
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 Expected to
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 Industry 0.5 top-runners 0.0 May 2019 Result Current Result Projected Current Result Feb-19 Atomera May-19 R&D fab Aug-19 Dec-19 Atomera R&D fab Mar-20 Jun-20 Advanced fab Sep-20 Control MST SP Industry Top Runner 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 reduction 25 better matching A-D convertors 20 SRAM σΔVth [mV] Flash 15 DRAM sense amplifiers 10 MST can reduce mismatch by more than 50% 5 Details available