Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 01, 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 | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 15,033,525 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Transition Period | true |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 9,957 | $ 17,369 |
Accounts receivable | 75 | 110 |
Prepaid expenses and other current assets | 227 | 248 |
Total current assets | 10,259 | 17,727 |
Property and equipment, net | 63 | 67 |
Deferred offering costs | 73 | 0 |
Security deposit | 13 | 13 |
Total assets | 10,408 | 17,807 |
Current liabilities: | ||
Accounts payable | 354 | 198 |
Accrued expenses | 319 | 239 |
Accrued payroll related expenses | 703 | 512 |
Deferred revenue | 75 | 0 |
Total liabilities | 1,451 | 949 |
Stockholders' equity: | ||
Preferred stock, $0.001 par value, authorized 2,500 shares; none issued and outstanding at September 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 September 30, 2018 and December 31, 2017, respectively. | 12 | 12 |
Additional paid-in capital | 127,708 | 125,911 |
Accumulated deficit | (118,763) | (109,065) |
Total stockholders' equity | 8,957 | 16,858 |
Total liabilities and stockholders' equity | $ 10,408 | $ 17,807 |
Condensed Balance Sheets (Una_2
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Sep. 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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 0 | $ 0 | $ 96 | $ 0 |
Cost of revenue | 0 | 0 | (113) | 0 |
Gross margin | 0 | 0 | (17) | 0 |
Operating Expenses: | ||||
Research and development | 1,922 | 1,602 | 5,350 | 4,502 |
General and administrative | 1,324 | 1,374 | 3,781 | 4,689 |
Selling and marketing | 237 | 350 | 695 | 1,367 |
Total operating expenses | 3,483 | 3,326 | 9,826 | 10,558 |
Loss from operations | (3,483) | (3,326) | (9,843) | (10,558) |
Other income/(expense): | ||||
Interest income | 48 | 42 | 145 | 106 |
Other expense | 0 | 0 | 0 | (6) |
Total other income/(expense), net | 48 | 42 | 145 | 100 |
Net loss | $ (3,435) | $ (3,284) | $ (9,698) | $ (10,458) |
Net loss per common share, basic and diluted | $ (0.28) | $ (0.28) | $ (0.80) | $ (0.90) |
Weighted average number of common shares outstanding, basic and diluted | 12,117 | 11,862 | 12,079 | 11,684 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Loss | $ (9,698) | $ (10,458) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 24 | 13 |
Stock-based compensation | 1,796 | 3,554 |
Loss on disposal of equipment | 1 | 1 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 35 | 0 |
Prepaid expenses and other current assets | 21 | (36) |
Accounts payable | 141 | (67) |
Accrued expenses | 58 | 131 |
Accrued payroll expenses | 191 | (233) |
Deferred revenue | 75 | 0 |
Net cash used in operating activities | (7,356) | (7,095) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisition of property and equipment | (21) | (17) |
Net cash used in investing activities | (21) | (17) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payment of offering costs | (35) | 0 |
Net cash used in financing activities | (35) | 0 |
Net decrease in cash and cash equivalents | (7,412) | (7,112) |
Cash and cash equivalents at beginning of period | 17,369 | 26,718 |
Cash and cash equivalents at end of period | $ 9,957 | $ 19,606 |
1. NATURE OF OPERATIONS
1. NATURE OF OPERATIONS | 9 Months Ended |
Sep. 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. On October 15, 2018, the Company issued an additional 2,625,500 shares of common stock at a public offering price of $4.75 per share. The Company intends to apply the net proceeds towards working capital and general corporate purposes. See Note 9 for additional information. |
2. LIQUIDITY AND MANAGEMENT PLA
2. LIQUIDITY AND MANAGEMENT PLANS | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
LIQUIDITY AND MANAGEMENT PLANS | 2. LIQUIDITY AND MANAGEMENT PLANS At September 30, 2018, the Company had cash and cash equivalents of approximately $10.0 million and working capital of approximately $8.8 million. The Company has only generated limited revenues since inception and has incurred recurring operating losses from inception to date. At September 30, 2018 the Company had an accumulated deficit of approximately $118.8 million. Based on the funds it has available as of the date of the filing of this report, which include the proceeds received from the Company’s October 2018 public offering of common shares, 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 | 9 Months Ended |
Sep. 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”) No. 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 nine months ended September 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 No. 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) Codification Improvements to Topic 842 Leases (Topic 842): Targeted Improvements. ASU No. 2018-10 provides certain amendments that affect narrow aspects of the guidance issued in ASU No. 2016-02. |
4. REVENUE
4. REVENUE | 9 Months Ended |
Sep. 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 amount of revenue that the Company recognizes reflects the consideration it expects to receive in exchange for goods or services and such revenue is recognized at the time when goods or services are transferred and/or delivered to its customers. The Company generates revenue from license fees for rights to use its intellectual property as well as 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. For recognizing licensing revenue, the Company must determine if the performance obligation has been met by when control is transferred to the customer. Revenue is recognized based on the following factors: (i) whether the license grant is distinct or combined with the transfer of goods or services, (ii) whether the license is a right to access intellectual property or a right to use the intellectual property. For licenses that are not distinct, but combined with other goods or services, the revenue is recognized at a point in time or over time in conjunction with the nature of the combined items or other combined obligations. If the license is determined to be distinct, revenue will be recognized (i) immediately if the license is a right to use intellectual property or (ii) over time if the licenses is a right to access intellectual property over a period of time. Revenue for the three and nine months ended September 30, 2018 and 2017 is as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Engineering services $ – $ – $ 96 $ – |
5. BASIC AND DILUTED LOSS PER S
5. BASIC AND DILUTED LOSS PER SHARE | 9 Months Ended |
Sep. 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 Nine Months Ended September 30, 2018 2017 Stock Options 2,477 2,111 Unvested restricted stock 276 127 Warrants 765 765 3,518 3,003 The calculation for basic and diluted loss per share excludes unvested restricted stock awards which are subject to forfeiture. |
6. WARRANTS
6. WARRANTS | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
WARRANTS | 6. WARRANTS A summary of warrant activity for the nine months ended September 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 September 30, 2018 765 $ 5.75 2.11 The warrants outstanding at September 30, 2018 had an intrinsic value of approximately $1.5 million based on a per-share stock price of $5.98 as of September 30, 2018. |
7. STOCK BASED COMPENSATION
7. STOCK BASED COMPENSATION | 9 Months Ended |
Sep. 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”) after its 2007 Stock Incentive Plan (“2007 Plan”) had expired in March 2017. 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 shares. 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 nine months ended September 30, 2018 and 2017 for stock options and restricted stock from the 2017 Plan and the 2007 Plan (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Research and development $ 149 $ 115 $ 409 $ 338 General and administrative 449 647 1,291 2,493 Selling and marketing 32 154 96 723 Total stock-based compensation expense $ 630 $ 916 $ 1,796 $ 3,554 As of September 30, 2018, there was approximately $4.5 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 2.3 years. The weighted average grant date fair value per share of the options granted under the Company’s 2007 and 2018 Plans was $2.17 and $3.00 for the nine months ended September 30, 3018 and 2017, respectively The following table summarizes stock option activity during the nine months ended September 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 September 30, 2018 2,477 $ 6.81 7.77 $ 296 Exercisable at September 30, 2018 1,387 $ 7.02 7.36 $ 93 During the nine months ended September 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 nine months ended September 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 (93 ) $ 6.22 Outstanding non-vested shares at September 30, 2018 276 $ 6.04 During the nine months ended September 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 | 9 Months Ended |
Sep. 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 term for three years through January 31, 2021. The lease rate was increased from $12,735 to $12,888 in October 2018 with annual increases of 3%. The increase in cost was due to annual adjustment of direct costs, in accordance with provisions of the lease. Approximate future minimum lease payments required under the operating leases are as follows (in thousands): Years ending December 31, Amount Remaining period in 2018 $ 26 2019 159 2020 163 2021 14 Total $ 362 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 ® |
9. SUBSEQUENT EVENTS
9. SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 9. SUBSEQUENT EVENTS On October 2, 2018, the Company entered into an integration agreement with STMicroelectronics (“ST”). The integration license gives ST certain rights to integrate the Company’s MST technology into their products and is the first of a three-phase licensing process with the next two being manufacturing and distribution phases. On October 15, 2018, the Company closed an underwritten public offering of 2,625,000 shares of common stock at a public offering price of $4.75 per share. The Company has granted the underwriters a 30-day option to purchase up to an additional 393,750 shares of its common stock, to cover over allotments, if any, at an exercise price of $4.75 per share. The Company received approximately $11.3 million of net proceeds after deducting underwriting discounts and commission and other estimated offering expenses. |
3. SUMMARY OF SIGNIFICANT ACC_2
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 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”) No. 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 nine months ended September 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 No.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) Codification Improvements to Topic 842 Leases (Topic 842): Targeted Improvements. ASU No. 2018-10 provides certain amendments that affect narrow aspects of the guidance issued in ASU 2016-02. |
4. REVENUE (Tables)
4. REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from contracts | Three Months Ended Nine Months Ended 2018 2017 2018 2017 Engineering services $ – $ – $ 96 $ – |
5. BASIC AND DILUTED LOSS PER_2
5. BASIC AND DILUTED LOSS PER SHARE (Tables) | 9 Months Ended |
Sep. 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 Nine Months Ended September 30, 2018 2017 Stock Options 2,477 2,111 Unvested restricted stock 276 127 Warrants 765 765 3,518 3,003 |
6. WARRANTS (Tables)
6. WARRANTS (Tables) | 9 Months Ended |
Sep. 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 September 30, 2018 765 $ 5.75 2.11 |
7. STOCK BASED COMPENSATION (Ta
7. STOCK BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock-based compensation expense | Three Months Ended Nine Months Ended 2018 2017 2018 2017 Research and development $ 149 $ 115 $ 409 $ 338 General and administrative 449 647 1,291 2,493 Selling and marketing 32 154 96 723 Total stock-based compensation expense $ 630 $ 916 $ 1,796 $ 3,554 |
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 September 30, 2018 2,477 $ 6.81 7.77 $ 296 Exercisable at September 30, 2018 1,387 $ 7.02 7.36 $ 93 |
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 (93 ) $ 6.22 Outstanding non-vested shares at September 30, 2018 276 $ 6.04 |
8. COMMITMENTS AND CONTINGENC_2
8. COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 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 $ 26 2019 159 2020 163 2021 14 Total $ 362 |
2. LIQUIDITY AND MANAGEMENT P_2
2. LIQUIDITY AND MANAGEMENT PLANS (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 9,957 | $ 17,369 | $ 19,606 | $ 26,718 |
Working capital | 8,800 | |||
Accumulated deficit | $ (118,763) | $ (109,065) |
4. REVENUE (Details)
4. REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue from Engineering Services | $ 0 | $ 0 | $ 96 | $ 0 |
Engineering Services [Member] | ||||
Revenue from Engineering Services | $ 0 | $ 0 | $ 96 | $ 0 |
5. BASIC AND DILUTED LOSS PER_3
5. BASIC AND DILUTED LOSS PER SHARE (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Potential common stock equivalents | 3,518 | 3,003 |
Stock Options [Member] | ||
Potential common stock equivalents | 2,477 | 2,111 |
Unvested Restricted Stock [Member] | ||
Potential common stock equivalents | 276 | 127 |
Warrants [Member] | ||
Potential common stock equivalents | 765 | 765 |
6. WARRANTS (Details)
6. WARRANTS (Details) - Warrants [Member] shares in Thousands | 9 Months Ended |
Sep. 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 1 month 9 days |
6. WARRANTS (Details Narrative)
6. WARRANTS (Details Narrative) - Warrants [Member] $ / shares in Units, $ in Thousands | Sep. 30, 2018USD ($)$ / shares |
Intrinsic value | $ | $ 1,500 |
Stock price | $ / shares | $ 5.98 |
7. STOCK BASED COMPENSATION (De
7. STOCK BASED COMPENSATION (Details - Compensation Expense) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Allocated stock-based compensation | $ 630 | $ 916 | $ 1,796 | $ 3,554 |
Research and Development [Member] | ||||
Allocated stock-based compensation | 149 | 115 | 409 | 338 |
General and Administrative [Member] | ||||
Allocated stock-based compensation | 449 | 647 | 1,291 | 2,493 |
Selling and Marketing [Member] | ||||
Allocated stock-based compensation | $ 32 | $ 154 | $ 96 | $ 723 |
7. STOCK BASED COMPENSATION (_2
7. STOCK BASED COMPENSATION (Details - Stock Option Activity) - Options [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding, beginning balance | shares | 2,141 |
Options granted | shares | 338 |
Options expired | shares | (2) |
Options outstanding, ending balance | shares | 2,477 |
Options exercisable | shares | 1,387 |
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 | $ 7.02 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted-Average Remaining Contractual Term [Roll Forward] | |
Weighted average remaining contractual term, options outstanding | 7 years 9 months 7 days |
Weighted average remaining contractual term, options exercisable | 7 years 4 months 9 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Intrinsic Value [Roll Forward] | |
Intrinsic value, options outstanding ending balance | $ | $ 296 |
Intrinsic value, options exercisable | $ | $ 93 |
7. STOCK BASED COMPENSATION (_3
7. STOCK BASED COMPENSATION (Details - Restricted stock) - Restricted Stock [Member] shares in Thousands | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Number of shares | |
Restricted stock outstanding, beginning balance | shares | 121 |
Restricted stock granted | shares | 248 |
Restricted stock vested | shares | (93) |
Restricted stock outstanding, ending balance | shares | 276 |
Weighted-Average Grant Date Fair Value | |
Restricted stock outstanding, beginning balance | $ / shares | $ 6.90 |
Restricted stock granted | $ / shares | 5.69 |
Restricted stock vested | $ / shares | 6.22 |
Restricted stock outstanding, ending balance | $ / shares | $ 6.04 |
7. STOCK BASED COMPENSATION (_4
7. STOCK BASED COMPENSATION (Details Narrative) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Options [Member] | ||
Unrecognized compensation expense | $ 4,500 | |
Unrecognized compensation weighted average period | 2 years 3 months 19 days | |
Options granted | 338 | |
Fair value of options granted | $ 733 | |
Weighted average grant date fair value per share | $ 2.17 | $ 3 |
Restricted Stock [Member] | ||
Restricted stock granted | 248 | |
2017 Plan [Member] | ||
Shares authorized for issuance | 3,750 | |
2017 Plan [Member] | Restricted Stock [Member] | ||
Restricted stock granted | 248 | |
Fair value of restricted stock granted | $ 1,400 |
8. COMMITMENTS AND CONTINGENC_3
8. COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remaining period in 2018 | $ 26 |
2,019 | 159 |
2,020 | 163 |
2,021 | 14 |
Total future minimum payments due | $ 362 |
8. COMMITMENTS AND CONTINGENC_4
8. COMMITMENTS AND CONTINGENCIES (Details Narrative) - Office Space [Member] - California (Los Gatos) [Member] - Real Estate Lease Agreement [Member] | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Monthly lease payment | $ 12,735 |
Frequency of payment | Monthly |
Lease expiration date | Jan. 31, 2021 |
Royalty expense | $ 5,000 |