Atomera (ATOM) 10-Q 9 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 08, 2018
Document And Entity Information
Entity Registrant Name	Atomera Inc
Entity Central Index Key	1,420,520
Document Type	10-Q
Trading Symbol	ATOM
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		12,408,525
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018
Entity Small Business	true
Entity Emerging Growth Company	true

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 12,254	$ 17,369
Accounts receivable	96	110
Prepaid expenses and other current assets	296	248
Total current assets	12,646	17,727
Property and equipment, net	65	67
Security deposit	13	13
Total assets	12,724	17,807
Current liabilities:
Accounts payable	339	198
Accrued expenses	285	239
Accrued payroll related expenses	338	512
Total liabilities	962	949
Stockholders' equity:
Preferred stock, $0.001 par value, authorized 2,500 shares; none issued and outstanding at June 30, 2018 and December 31, 2017	0	0
Common stock, $0.001 par value, authorized 47,500 shares; 12,409 and 12,161 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively.	12	12
Additional paid-in capital	127,078	125,911
Accumulated deficit	(115,328)	(109,065)
Total stockholders' equity	11,762	16,858
Total liabilities and stockholders' equity	$ 12,724	$ 17,807

Condensed Balance Sheets (Unau3

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2018	Dec. 31, 2017
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	12,409	12,161
Common stock, oustanding	12,409	12,161

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenue	$ 96	$ 0	$ 96	$ 0
Cost of revenue	(113)	0	(113)	0
Gross margin	(17)	0	(17)	0
Operating Expenses:
Research and development	1,738	1,444	3,428	2,900
General and administrative	1,254	1,712	2,457	3,315
Selling and marketing	212	508	458	1,017
Total operating expenses	3,204	3,664	6,343	7,232
Loss from operations	(3,221)	(3,664)	(6,360)	(7,232)
Other income/(expense):
Interest income	50	36	97	64
Other expense	0	(2)	0	(6)
Total other income/(expense), net	50	34	97	58
Net loss	$ (3,171)	$ (3,630)	$ (6,263)	$ (7,174)
Net loss per common share, basic and diluted	$ (0.26)	$ (0.31)	$ (0.52)	$ (0.62)
Weighted average number of common shares outstanding, basic and diluted	12,078	11,616	12,060	11,594

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (6,263)	$ (7,174)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	16	9
Stock-based compensation	1,166	2,638
Loss on disposal of equipment	1	0
Changes in operating assets and liabilities:
Accounts receivable	14	0
Prepaid expenses and other current assets	(48)	(95)
Accounts payable	141	(76)
Accrued expenses	46	37
Accrued payroll expenses	(174)	(319)
Net cash used in operating activities	(5,101)	(4,980)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment	(14)	(13)
Net cash used in investing activities	(14)	(13)
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash provided by financing activities	0	0
Net decrease in cash and cash equivalents	(5,115)	(4,993)
Cash and cash equivalents at beginning of period	17,369	26,718
Cash and cash equivalents at end of period	$ 12,254	$ 21,725

1. NATURE OF OPERATIONS

1. NATURE OF OPERATIONS	6 Months Ended
	Jun. 30, 2018
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 and is engaged in the development, commercialization and licensing of proprietary processes and technologies for the semiconductor industry. The Company is in the development stage, having not yet started planned principal operations, and is devoting substantially all of its efforts toward technology research and development. The Company has primarily financed operations through private placements of equity and debt securities and the Company’s Initial Public Offering (the “IPO”) which was consummated on August 10, 2016.

2. LIQUIDITY AND MANAGEMENT PLA

2. LIQUIDITY AND MANAGEMENT PLANS	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
LIQUIDITY AND MANAGEMENT PLANS	2. LIQUIDITY AND MANAGEMENT PLANS At June 30, 2018, the Company had cash and cash equivalents of approximately $12.3 million and working capital of approximately $11.7 million. The Company has only generated limited revenues since inception, all of which was non-recurring revenue recognized in the fourth quarter of 2017 and second quarter of 2018. The Company has incurred recurring operating losses from inception to date. At June 30, 2018 the Company had an accumulated deficit of approximately $115.3 million. 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 not yet generated recurring revenue from planned principal operations, 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.

3. SUMMARY OF SIGNIFICANT ACCOU

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2018
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 March 6, 2018 other than the adoption of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) Basis of presentation of unaudited condensed financial information The unaudited condensed financial statements of the Company for the three and six months ended June 30, 2018 and 2017 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 the 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, 2017 was derived from the audited financial statements included in the Company's financial statements as of and for the year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 6, 2018. These financial statements should be read in conjunction with that report. Adoption of recent accounting standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) In May 2017, the FASB issued ASU No. 2017-09, C ompensation–Stock Compensation (Topic 718): Scope of Modification Accounting Recent accounting standards In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842)

4. REVENUE

4. REVENUE	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
REVENUE	4. REVENUE The adoption of ASU No. 2014-09 represents a change in accounting principle that will provide financial statement readers with enhanced revenue recognition disclosures. In accordance with Topic 606, the Company recognizes revenue when goods or services are transferred to customers in an amount that reflects the consideration which it expects to receive in exchange for those goods or services. The Company generates revenue from sales of its products and delivery of services to its customers. Revenue is recognized based on the following steps (i) identification of the contract, or contracts, with a customer, (ii) identification of the performance obligations in the contract, (iii) determination of the transaction price, (iv) allocation of the transaction price to the performance obligations of the contract, and (v) recognition of revenue when, or as, the Company satisfies a performance obligation. Revenue for the three and six months ended June 30, 2018 and 2017 is as follows (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Engineering services $ 96 $ – $ 96 $ –

5. BASIC AND DILUTED LOSS PER S

5. BASIC AND DILUTED LOSS PER SHARE	6 Months Ended
	Jun. 30, 2018
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): Three and Six Months Ended June 30, 2018 2017 Stock Options 2,477 2,107 Unvested restricted stock 299 523 Warrants 765 765 3,541 3,395 The calculation for basic and diluted loss per share excludes unvested restricted stock awards which are subject to forfeiture.

6. WARRANTS

6. WARRANTS	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
WARRANTS	6. WARRANTS A summary of warrant activity for the six months ended June 30, 2018 is as follows (shares in thousands except per share and contractual term): Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (In Years) Outstanding at January 1, 2018 765 $ 5.75 Outstanding at June 30, 2018 765 $ 5.75 2.36 The warrants outstanding at June 30, 2018 had an intrinsic value of approximately $1.5 million based on a per-share stock price of $6.12 as of June 30, 2018.

7. STOCK BASED COMPENSATION

7. STOCK BASED COMPENSATION	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK BASED COMPENSATION	7. STOCK BASED COMPENSATION In May 2017, the Company’s shareholders approved its 2017 Stock Incentive Plan (“2017 Plan”). 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 share grants. The 2017 Plan provides for the issuance of 3,750,000 shares of common stock. All of the Company’s employees and any subsidiary employees (including officers and directors who are also employees), as well as all of the Company’s nonemployee directors and other consultants, advisors and other persons who provide services to the Company will be eligible to receive incentive awards under the 2017 Plan. Generally stock options and restricted stock vest over a one to four-year period from the date of grant under the 2017 Plan. The following table summarizes the stock-based compensation expense recorded in the Company’s results of operations during the three and six months ended June 30, 2018 and 2017 for stock options and restricted stock from the 2017 Plan and 2007 Plan, the 2007 Plan expired in March 2017 (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Research and development $ 148 $ 135 $ 260 $ 223 General and administrative 443 994 842 1,846 Selling and Marketing 30 299 64 569 $ 621 $ 1,428 $ 1,166 $ 2,638 As of June 30, 2018, there was approximately $5.2 million of total unrecognized compensation expense related to non-vested share-based compensation arrangements that are expected to vest. This cost is expected to be recognized over a weighted-average period of 2.5 years. The weighted average grant date fair value per share of the options granted under the plans was $2.17 and $3.01 for the six months ended June 30, 3018 and 2017, respectively The following table summarizes stock option activity during the six months ended June 30, 2018 (in thousands except exercise prices and contractual terms): Number of Shares Weighted- Average Exercise Prices Weighted- Average Remaining Contractual Term (In Years) Intrinsic Outstanding at January 1, 2018 2,141 $ 7.03 Granted 338 $ 5.64 Expired (2 ) $ 59.10 Outstanding at June 30, 2018 2,477 $ 6.81 8.02 $ 403 Exercisable at June 30, 2018 1,246 $ 7.05 7.55 $ 115 During the six months ended June 30, 2018 the Company granted options under its 2017 Stock Incentive Plan to purchase approximately 338,000 shares of its common stock to its employees and consultants. The fair value of these options was approximately $733,000 at the time of grant. 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 six months ended June 30, 2018 (in thousands except per share data): Number of Shares Weighted- Average Grant Date Fair Value Outstanding at January 1, 2018 121 $ 6.90 Granted 248 $ 5.69 Vested (70 ) $ 6.09 Outstanding non-vested shares at June 30, 2018 299 $ 6.09 During the six months ended June 30, 2018 the Company granted approximately 248,000 restricted stock awards under its 2017 Stock Incentive Plan to its employees and directors. The fair value of these awards was approximately $1.4 million at the time of grant.

8. COMMITMENTS AND CONTINGENCIE

8. COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	8. COMMITMENTS AND CONTINGENCIES Operating Leases On January 19, 2016, the Company entered into a real estate lease agreement for a 3,396 square foot office facility in Los Gatos, California as its new corporate headquarters. The lease commenced on February 1, 2016 and had a two-year term. The lease was amended in December 2017 to extend the lease terms for three years through January 31, 2021. The lease rate is $12,735 per month with annual increases of 3%. Approximate future minimum lease payments required under the operating leases are as follows (in thousands): Years ending December 31, Amount Remaining period in 2018 $ 76 2019 157 2020 162 2021 13 Total $ 408 Licensing agreement In December 2006, the Company entered into a licensing agreement with ASM International N.V., a vendor of semiconductor manufacturing equipment located in Almere, The Netherlands, pursuant to which ASM has granted to the Company a non-exclusive, worldwide license to make, and sublicense others to make, semiconductor devices using certain ASM patents. The ASM license restricts the Company and its sublicensees from using the ASM licensed rights in the manufacture of epitaxial deposition machines or any other machines used to manufacture semiconductors. The ASM license, which is coterminous with patents licensed by ASM, expires on January 8, 2019 and requires the Company to pay ASM a royalty of 5% of net royalty revenue, generally defined as gross royalty revenue less certain customer offsets and credits, from the sale of any product incorporating the ASM licensed patents not manufactured on ASM equipment and a royalty of 2.5% of net revenue from the sale of any product incorporating ASM licensed patents manufactured on ASM equipment. All semiconductor devices incorporating the Company’s MST ®

3. SUMMARY OF SIGNIFICANT ACC14

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
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 March 6, 2018 other than the adoption of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606)
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 six months ended June 30, 2018 and 2017 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 the 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, 2017 was derived from the audited financial statements included in the Company's financial statements as of and for the year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 6, 2018. These financial statements should be read in conjunction with that report.
Adoption of recent accounting standards	Adoption of recent accounting standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) In May 2017, the FASB issued ASU No. 2017-09, C ompensation–Stock Compensation (Topic 718): Scope of Modification Accounting
Recent accounting standards	Recent accounting standards In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842)

4. REVENUE (Tables)

4. REVENUE (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue from contracts	Three Months Ended Six Months Ended 2018 2017 2018 2017 Engineering services $ 96 $ – $ 96 $ –

5. BASIC AND DILUTED LOSS PER16

5. BASIC AND DILUTED LOSS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Schedule of potential common stock equivalents not included in the calculation of diluted net loss per common share	Three and Six Months Ended June 30, 2018 2017 Stock Options 2,477 2,107 Unvested restricted stock 299 523 Warrants 765 765 3,541 3,395

6. WARRANTS (Tables)

6. WARRANTS (Tables)	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Schedule of warrant activity	Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (In Years) Outstanding at January 1, 2018 765 $ 5.75 Outstanding at June 30, 2018 765 $ 5.75 2.36

7. STOCK BASED COMPENSATION (Ta

7. STOCK BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock-based compensation expense	Three Months Ended Six Months Ended 2018 2017 2018 2017 Research and development $ 148 $ 135 $ 260 $ 223 General and administrative 443 994 842 1,846 Selling and Marketing 30 299 64 569 $ 621 $ 1,428 $ 1,166 $ 2,638
Schedule of stock option activity	Number of Shares Weighted- Average Exercise Prices Weighted- Average Remaining Contractual Term (In Years) Intrinsic Outstanding at January 1, 2018 2,141 $ 7.03 Granted 338 $ 5.64 Expired (2 ) $ 59.10 Outstanding at June 30, 2018 2,477 $ 6.81 8.02 $ 403 Exercisable at June 30, 2018 1,246 $ 7.05 7.55 $ 115
Schedule of restricted stock option activity	Number of Shares Weighted- Average Grant Date Fair Value Outstanding at January 1, 2018 121 $ 6.90 Granted 248 $ 5.69 Vested (70 ) $ 6.09 Outstanding non-vested shares at June 30, 2018 299 $ 6.09

8. COMMITMENTS AND CONTINGENC19

8. COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum lease payments required under operating leases	Years ending December 31, Amount Remaining period in 2018 $ 76 2019 157 2020 162 2021 13 Total $ 408

2. LIQUIDITY AND MANAGEMENT P20

2. LIQUIDITY AND MANAGEMENT PLANS (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 12,254	$ 17,369	$ 21,725	$ 26,718
Working capital	11,700
Accumulated deficit	$ (115,328)	$ (109,065)

4. REVENUE (Details)

4. REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues	$ 96	$ 0	$ 96	$ 0
Engineering Services [Member]
Revenues	$ 96	$ 0	$ 96	$ 0

5. BASIC AND DILUTED LOSS PER22

5. BASIC AND DILUTED LOSS PER SHARE (Details) - shares shares in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Potential common stock equivalents	3,541	3,395
Stock Options [Member]
Potential common stock equivalents	2,477	2,107
Unvested Restricted Stock [Member]
Potential common stock equivalents	299	523
Warrants [Member]
Potential common stock equivalents	765	765

6. WARRANTS (Details)

6. WARRANTS (Details) - Warrants [Member] shares in Thousands	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Warrants and Rights Note Disclosure, Shares Outstanding [Roll Forward]
Outstanding at beginning | shares	765
Outstanding at ending | shares	765
Warrants and Rights Note Disclosure, Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning | $ / shares	$ 5.75
Outstanding at ending | $ / shares	$ 5.75
Warrants and Rights Note Disclosure, Weighted Average Remaining Contractual Term [Roll Forward]
Outstanding at ending	2 years 4 months 10 days

6. WARRANTS (Details Narrative)

6. WARRANTS (Details Narrative) - Warrants [Member] $ / shares in Units, $ in Thousands	Jun. 30, 2018USD ($)$ / shares
Intrinsic value | $	$ 1,500
Stock price | $ / shares	$ 6.12

7. STOCK BASED COMPENSATION (De

7. STOCK BASED COMPENSATION (Details - Compensation Expense) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Allocated stock-based compensation	$ 621	$ 1,428	$ 1,166	$ 2,638
Research and Development [Member]
Allocated stock-based compensation	148	135	260	223
General and Administrative [Member]
Allocated stock-based compensation	443	994	842	1,846
Selling and Marketing [Member]
Allocated stock-based compensation	$ 30	$ 299	$ 64	$ 569

7. STOCK BASED COMPENSATION (26

7. STOCK BASED COMPENSATION (Details - Stock Option Activity) - Options [Member] $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding, beginning balance | shares	2,141,000
Options granted | shares	338,000
Options expired | shares	(2,000)
Options outstanding, ending balance | shares	2,477,000
Options exercisable | shares	1,246,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Prices [Roll Forward]
Weighted average exercise price, options outstanding beginning balance | $ / shares	$ 7.03
Weighted average exercise price, options granted | $ / shares	5.64
Weighted average exercise price, options expired | $ / shares	59.10
Weighted average exercise price, options outstanding, ending balance | $ / shares	6.81
Weighted average exercise price, options exercisable | $ / shares	$ 7.05
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted-Average Remaining Contractual Term [Roll Forward]
Weighted average remaining contractual term, options outstanding	8 years 7 days
Weighted average remaining contractual term, options exercisable	7 years 6 months 18 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Intrinsic Value [Roll Forward]
Intrinsic value, options outstanding ending balance | $	$ 403
Intrinsic value, options exercisable | $	$ 115

7. STOCK BASED COMPENSATION (27

7. STOCK BASED COMPENSATION (Details - Restricted stock) - Restricted Stock [Member] shares in Thousands	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Number of shares
Restricted stock outstanding, beginning balance | shares	121
Restricted stock granted | shares	248
Restricted stock vested | shares	(70)
Restricted stock outstanding, ending balance | shares	299
Weighted-Average Grant Date Fair Value
Restricted stock outstanding, beginning balance | $ / shares	$ 6.90
Restricted stock granted | $ / shares	5.69
Restricted stock vested | $ / shares	6.09
Restricted stock outstanding, ending balance | $ / shares	$ 6.09

7. STOCK BASED COMPENSATION (28

7. STOCK BASED COMPENSATION (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Options [Member]
Unrecognized compensation expense	$ 5,200
Unrecognized compensation weighted average period	2 years 6 months
Options granted	338,000
Fair value of options granted	$ 733
Weighted average grant date fair value per share	$ 2.17	$ 3.01
Restricted Stock [Member]
Restricted stock granted	248,000
2017 Plan [Member]
Shares authorized for issuance	3,750,000
2017 Plan [Member] | Restricted Stock [Member]
Restricted stock granted	248,000
Fair value of restricted stock granted	$ 1,400

8. COMMITMENTS AND CONTINGENC29

8. COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Jun. 30, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remaining period in 2018	$ 76
2,019	157
2,020	162
2,021	13
Total future minimum payments due	$ 408

8. COMMITMENTS AND CONTINGENC30

8. COMMITMENTS AND CONTINGENCIES (Details Narrative) - Office Space [Member] - California (Los Gatos) [Member] - Real Estate Lease Agreement [Member]	6 Months Ended
	Jun. 30, 2018USD ($)
Monthly lease payment	$ 12,735
Frequency of payment	Monthly
Lease expiration date	Jan. 31, 2021
Royalty obligation	$ 5,000