Slide 1: Investor Presentation March 2018
Investor Presentation March 2018 NASDAQ: ATOM 1
Slide 2: Note Regarding Forward-Looking Statements
Note Regarding Forward-Looking Statements 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,” “pr
Slide 3: Investment Overview
Investment Overview Mears Silicon Technology (MST®) is a semiconductor enhancement technology Improves electron mobility resulting in higher performance, lower power, and lower costs Capital-light IP licensing business Highly leverageable business model with strong cash position Robust and
Slide 4: Extending Moore's Law
Extending Moore’s Law The skyrocketing cost of new nodes MST: A way out FinFET MST can deliver a half to a full node of benefits 8 8 Extends life of depreciated fabs 7 7 Continues reducing the cost per transistor Cost per Million Gates (cents) 6 6 May solve problems in geometries smaller tha
Slide 5: MST Technology
MST Technology Potential Benefits • Improved Efficiency • Improved performance • Lower power consumption • Some combination of the two • Reduced Die Size • Lower power needs • Lower bottom line cost • Improved Yield • Less waste • Easier design parameters 5
Slide 6: Potential Benefits
Potential Benefits • Overall Improved Efficiency: Smartphone • 45%-52% added battery life (depending on usage) • Increased cost to add MST expected to be insignificant to total phone cost • Opportunity to increase performance instead of saving power • Reduced Die Size: Power Management Integrated Ci
Slide 7: Semiconductor Ecosystem
Semiconductor Ecosystem Process Equipment Wafer Fabrication Chip Makers / Sellers Development Manufacturers Foundries Integrated Device Manufacturers (IDM) Fabless Vertically Integrated Firms Supporting Ecosystem Semiconductor Equipment Manufacturers Electronic Design Automation Tools 7
Slide 8: Accelerating time to license
Accelerating time to license Customer Wafer Manufacturing Atomera MST® Deposition Customer MST® Deposition Phase 1 Phase 2 Phase3 Phase4 Phase 5 Phase 6 Planning Setup Integration Installation Qualification Production 1 Simulation 2 Faster 3 Readily EPI tool availability Reduces time and Results Con
Slide 9: Largest Companies with fabs
Largest Companies with fabs Market Total Capacity - Company Type 1 Samsung Semiconductor IDM Segment Memory Wf/mon. (200mm equ) 2,598,750 Total industry capacity 17.8M 2 TSMC Micron Technology Foundry IDM Logic Memory 2,012,317 1,540,500 wafers/month 3 SK Hynix Foundry Memory 1,530,000 Top 25 wa
Slide 10: Atomera Business Opportunity
Atomera Business Opportunity License Fees Engineering Service Fees Royalties Example 1. Worldwide Average Fab1 Example 2. Leading Foundry, 40nm Fab Monthly Fab Capacity Monthly Fab Capacity 40,000 80,000 (wafers/month) (wafers/month) Wafer ASP $1,637 Wafer ASP $3,000 Annual Revenue Potential2 $7.9M
Slide 11: Market Segment Strategy
Market Segment Strategy Leading Analog Mainstream Leading Planar 3D Analog, PMIC, RF IoT, RF, Automotive DRAM; Digital Processors FinFET, Nanowire Big Players: TSMC, TI, NXP, ST Big Players: TSMC, UMC, Big Players: TSMC, GF, Big Players: Intel, TSMC, Micro SMIC, Global Foundries Samsung, Hynix, Micr
Slide 12: Patent Portfolio
Patent Portfolio 22 New US Patents Applications Filed in 2017 • Strong Patent Portfolio 61 Issued US Patents • Covers core elements of MST • Constantly adding new patents MST CMOS Devices 5 • Discoverable and enforceable 7 • Infringement can be easily discovered MST Core Method and Devices using ele
Slide 13: Financials
Financials 2017 2016 FY 2017 FY 2016 Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q2 2016 GAAP Results Revenue $0.1M - $0.1M - - - - Gross Profit $0.1M - $0.1M - - - - Operating Expense ($13.3M) ($10.0M) ($2.7M) ($3.3M) ($3.7M) ($3.6M) ($1.9M) Net Loss ($13.1M) ($12.6M) ($2.6M) ($3.3M) ($3.6M) ($3.5M) ($2.6M) Lo
Slide 14: Summary
Summary High margin, recurring revenue financial model Well funded with strong cash position Solid progress with initial customers in pipeline Strong technology and patent position Experienced management team to execute business plan 14
Slide 15: What's New
What’s New March 2018 15
Slide 16: What's new – March 2018
What’s new – March 2018 Achieved first engineering service revenue of $110K in Q4 Now engaged with 14 customers, 6/2/6 in the three phases Working with customers in unexpected ways Skipping directly into phase 3 Considering licensing after phase one Installation prior to license executio
Slide 17: Customer Pipeline
Customer Pipeline Quarterly Customer Pipeline Growth Q417 3Q17 2Q17 1Q 17 4Q 16 3Q 16 IPO 0 2 4 6 8 10 12 14 Phase 1 Phase 2 Phase 3 Now engaged with 50% of the world’s top semiconductor makers* * 10 of the top 20 (IC Insights, McClean Report 2017) 17
Slide 18: Customer Engagement Changes
Customer Engagement Changes Customer Wafer Manufacturing Atomera MST® Deposition Customer MST® Deposition Phase 1 Phase 2 Phase3 Phase4 Phase 5 Phase 6 Planning Setup Integration Installation Qualification Production License Royalties License? 18
Slide 19: Early Installation Advantages
Early Installation Advantages Customer Wafer Manufacturing Atomera MST® Deposition Customer MST® Deposition Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Planning Setup Integration Qualification Production Phase 3+ Installation Significantly lowers cost of processing test wafers Speeds throughput by a
Slide 20: TCAD Modelling Advantage
TCAD Modelling Advantage TCAD allows customers simulate MST quickly and inexpensively Measured Simulated Results Results Engages customers earlier to understand how to use MST Benefits Without Best integration techniques MST Frequently causes more ownership on customer side Builds early
Slide 21: Financials
Financials 2017 2016 FY 2017 FY 2016 Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q2 2016 GAAP Results Revenue $0.1M - $0.1M - - - - Gross Profit $0.1M - $0.1M - - - - Operating Expense ($13.3M) ($10.0M) ($2.7M) ($3.3M) ($3.7M) ($3.6M) ($1.9M) Net Loss ($13.1M) ($12.6M) ($2.6M) ($3.3M) ($3.6M) ($3.5M) ($2.6M) Lo
Slide 22: NASDAQ: ATOM
NASDAQ: ATOM 22