Atomera (ATOM) 10-K 11 Mar 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Mar. 07, 2019	Jun. 30, 2018
Document And Entity Information
Entity Registrant Name	Atomera Inc
Entity Central Index Key	0001420520
Document Type	10-K
Trading Symbol	ATOM
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity's Reporting Status Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Public Float			$ 68,244,628
Entity Common Stock, Shares Outstanding		15,331,503
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2018
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Transition Period	true
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity Shell Company	false

Balance Sheets

Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 18,933	$ 17,369
Accounts receivable	185	110
Prepaid expenses and other current assets	170	248
Total current assets	19,288	17,727
Property and equipment, net	56	67
Security deposit	13	13
Total assets	19,357	17,807
Current liabilities:
Accounts payable	348	198
Accrued expenses	224	239
Accrued payroll related expenses	984	512
Deferred revenue	55	0
Total liabilities	1,611	949
Commitments and contingencies (see Note 7)
Stockholders' equity:
Preferred stock, $0.001 par value, authorized 2,500 shares; none issued and outstanding at December 31, 2018 and 2017	0	0
Common stock, $0.001 par value, authorized 47,500 shares; 15,034 shares issued and outstanding at December 31, 2018 and 12,161 issued and outstanding as of December 31, 2017	15	12
Additional paid-in capital	139,693	125,911
Accumulated deficit	(121,962)	(109,065)
Total stockholders' equity	17,746	16,858
Total liabilities and stockholders' equity	$ 19,357	$ 17,807

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 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	15,034	12,161
Common stock, oustanding	15,034	12,161

Statements of Operations

Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Revenue	$ 246	$ 110
Cost of revenue	148	39
Gross margin	98	71
Operating Expenses:
Research and development	7,318	5,826
General and administrative	4,956	5,796
Selling and marketing	957	1,659
Total operating expenses	13,231	13,281
Loss from operations	(13,133)	(13,210)
Other income/(expense):
Interest income	236	148
Other expense	0	(6)
Total other income/(expense), net	236	142
Net loss	$ (12,897)	$ (13,068)
Net loss per common share, basic and diluted (2017 Restated)	$ (1.02)	$ (1.11)
Weighted average number of common shares outstanding, basic and diluted (2017 Restated)	12,655	11,773

Statement of Stockholders' Equi

Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning balance, shares at Dec. 31, 2016	12,025
Beginning balance, value at Dec. 31, 2016	$ 12	$ 121,833	$ (95,997)	$ 25,848
Stock-based compensation, shares	126
Stock-based compensation, value		4,018		4,018
Common stock issued for services, shares	10
Common stock issued for services, value		60		60
Net loss			(13,068)	(13,068)
Ending balance, shares at Dec. 31, 2017	12,161
Ending balance, value at Dec. 31, 2017	$ 12	125,911	(109,065)	16,858
Stock-based compensation, shares	248
Stock-based compensation, value		2,425		2,425
Issuance of common stock in connection with October 15, 2018 offering, net of commissions, expenses and other offering costs, shares	2,625
Issuance of common stock in connection with October 15, 2018 offering, net of commissions, expenses and other offering costs, value	$ 3	11,357		11,360
Net loss			(12,897)	(12,897)
Ending balance, shares at Dec. 31, 2018	15,034
Ending balance, value at Dec. 31, 2018	$ 15	$ 139,693	$ (121,962)	$ 17,746

Statements of Cash Flows

Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (12,897)	$ (13,068)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	33	19
Stock-based compensation	2,425	4,018
Common stock issued for services	0	60
Loss on disposal of assets	1	2
Changes in operating assets and liabilities:
Accounts receivable	(75)	(110)
Prepaid expenses and other current assets	78	(152)
Security deposit	0	24
Accounts payable	150	(155)
Accrued expenses	(15)	71
Accrued payroll expenses	472	2
Deferred revenue	55	0
Net cash used in operating activities	(9,773)	(9,289)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment	(23)	(60)
Net cash used in investing activities	(23)	(60)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from public offering, net	11,360	0
Net cash provided by financing activities	11,360	0
Net increase/(decrease) in cash and cash equivalents	1,564	(9,349)
Cash and cash equivalents at beginning of year	17,369	26,718
Cash and cash equivalents at end of year	$ 18,933	$ 17,369

1. NATURE OF OPERATIONS

1. NATURE OF OPERATIONS	12 Months Ended
	Dec. 31, 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 under the name MEARS Technologies, Inc. and is engaged in the development, commercialization and licensing of proprietary processes and technologies for the semiconductor industry. On January 12, 2016, the Company changed its name to Atomera Incorporated. The Company is in the development stage, having only recently begun limited revenue-generating activities, 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, and its underwritten public offering of common stock which was consummated on October 15, 2018 (see Note 8).

2. LIQUIDITY AND MANAGEMENT PLA

2. LIQUIDITY AND MANAGEMENT PLANS	12 Months Ended
	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
LIQUIDITY AND MANAGEMENT PLANS	2. LIQUIDITY AND MANAGEMENT PLANS At December 31, 2018, the Company had cash and cash equivalents of approximately $18.9 million and working capital of approximately $17.7 million. The Company has only generated limited revenues since inception and has incurred recurring operating losses. At December 31, 2018, the Company had an accumulated deficit of approximately $122.0 million. The Company’s operating plans for the next 12 months include increased headcount in research and development and increased spending on outsourced fabrication and testing. 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	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and reflect the financial position, results of operations and cash flows for all periods presented. Fair Value of Financial Instruments Authoritative guidance requires disclosure of the fair value of financial instruments. The Company’s financial instruments consist of cash and cash equivalents, accounts receivable and accounts payable, the carrying amounts of which approximate their estimated fair values primarily due to the short-term nature of the instruments or based on information obtained from market sources and management estimates. The Company measures the fair value of certain of its financial assets and liabilities on a recurring basis. A fair value hierarchy is used to rank the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value which is not equivalent to cost will be classified and disclosed in one of the following three categories: Level 1 — Quoted prices (unadjusted) in active markets for identical assets and liabilities. Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as unadjusted quoted prices for similar assets and liabilities, unadjusted quoted prices in the markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Cash and cash equivalents The Company maintains its operating accounts in a single reputable financial institution. The balances are insured by the U.S. Federal Deposit Insurance Corporation (“FDIC”) up to specified limits. The Company’s cash and cash equivalents are maintained in checking accounts and money market funds with maturities of less than three months when purchased, which are readily convertible to known amounts of cash, and which in the opinion of management are subject to insignificant risk of loss in value. Concentration of Credit Risk and Major Customers Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash, cash equivalents and accounts receivable. During the year ended December 31, 2018, three customers each represented 72%, 20% and 8% of revenues and 43%, 30% and 27% of the accounts receivable balance at December 31, 2018. During the year ended December 31, 2017, one customer represented 100% of revenues and 100% of the accounts receivable balance at December 31, 2017. At times, the amounts on deposit at the financial institution exceed the federally insured limits. Management believes that the financial institutions which hold the Company’s cash is financially sound and, accordingly, minimal credit risk exists. As of December 31, 2018 and 2017, the Company’s cash balances were in excess of insured limits maintained at the financial institution. Accounts Receivable The Company grants credit to its business customers. Collateral is generally not required for trade receivables. The Company maintains allowances for potential credit losses when necessary. Trade accounts receivable are recorded net of allowances for cash discounts for prompt payment, doubtful accounts, and sales returns. The Company’s policy is to reserve for uncollectible accounts based on its best estimate of the amount of probable credit losses in its existing accounts receivable. The Company periodically reviews its accounts receivable to determine whether an allowance for doubtful accounts is necessary based on an analysis of past due accounts and other factors that may indicate that the realization of an account may be in doubt. Other factors that the Company considers include its existing contractual obligations, historical payment patterns of its customers and individual customer circumstances, and an analysis of days sales outstanding by customer. Account balances deemed to be uncollectible are charged to the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. At December 31, 2018 and 2017, there were no allowances for doubtful accounts since the balances were subsequently collected. Any allowances recorded are included in Accounts Receivable, net in the accompanying balance sheets. Impairment of long-lived assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that it is more likely than not that the asset’s carrying amount may not be recoverable. The Company conducts its long-lived asset impairment analyses in accordance with authoritative guidance which requires the Company to group assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset group against the sum of the undiscounted future cash flows. If the undiscounted cash flows do not indicate the carrying amount of the asset is recoverable, an impairment charge is measured as the amount by which the carrying amount of the asset group exceeds its fair value based on discounted cash flow analysis or appraisals. Property and equipment Items capitalized as property and equipment are stated at cost. Maintenance and routine repairs are charged to operations when incurred, while betterments and renewals are capitalized. Depreciation and amortization are computed using he straight-line method over the estimated useful lives of the respective assets starting when the asset is placed in service. Common stock warrants The Company classifies as equity any warrants that (i) require physical settlement or net-share settlement or (ii) provide the Company with a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the Company’s control), (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement) or (iii) that contain reset provisions that do not qualify for the scope exception. The Company assesses classification of its common stock warrants and other freestanding derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. The Company’s freestanding derivatives consist of warrants to purchase common stock that were issued in connection with its notes payable. The Company evaluated these warrants to assess their proper classification and determined that the common stock warrants meet the criteria for equity classification in the balance sheet. Such warrants are measured at fair value, which the Company determines using the Black-Scholes-Merton option-pricing model. Revenue The Company generates revenue from integration services which it delivers either pursuant to integration license agreements or delivery of engineering services. 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. The Company’s integration services generally consist of depositing its proprietary technology onto the customer’s semiconductor wafers and delivering such wafers back to the customer. Revenue from integration services is recognized as the performance obligations are satisfied, which is upon transfer of control of the wafers to the customer (generally upon shipment). For recognizing integration service revenue from integration license agreements, the Company assesses (i) whether the license grant is distinct or combined with the transfer of goods or services and (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 as the obligations to perform the combined services and/or deliver the combined goods are satisfied. The Company’s integration license agreements contain a technology grant as well as a performance obligation to deliver wafers with its technology deposited on them. The Company has determined the license grant is not distinct from the integration service. Accordingly, revenue from integration license agreements is recognized over time based on the Company’s estimate of the time during which the service will be provided to the customer. Deferred revenues consist of unearned amounts that have been billed to the customer in advance of the Company’s performance obligations. These amounts have not yet been recognized as revenue. Revenue for these items will be recognized in accordance with the Company’s revenue policy. Research and development expenses In accordance with authoritative guidance, the Company charges research and development costs to operations as incurred. Research and development expenses consist of personnel costs for the design, development, testing and enhancement of the Company’s technology, and certain other allocated costs, such as depreciation and other facilities related expenditures. Stock-based compensation The Company computes stock-based compensation in accordance with authoritative guidance. The Company uses the Black-Scholes-Merton option-pricing model to determine the fair value of its stock options. The Black-Scholes-Merton option-pricing model includes various assumptions, including the fair market value of the common stock of the Company, expected life of stock options, the expected volatility and the expected risk-free interest rate, among others. These assumptions reflect the Company’s best estimates, but they involve inherent uncertainties based on market conditions generally outside the control of the Company. Forfeitures are recorded when they occur. As a result, if other assumptions had been used, stock-based compensation cost, as determined in accordance with authoritative guidance, could have been materially impacted. Furthermore, if the Company uses different assumptions on future grants, stock-based compensation cost could be materially affected in future periods. The Company accounts for the fair value of equity instruments issued to non-employees using either the fair value of the services received or the fair value of the equity instrument, whichever is considered more reliable . Income Taxes In accordance with authoritative guidance, deferred tax assets and liabilities are recorded for temporary differences between the financial reporting and tax bases of assets and liabilities using the current enacted tax rate expected to be in effect when the differences are expected to reverse. A valuation allowance is recorded on deferred tax assets unless realization is considered more likely than not. The Company evaluates its tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are not recorded as a tax benefit or expense in the current year. The Company recognizes interest and penalties, if any, related to uncertain tax positions in interest expense. No interest and penalties related to uncertain tax positions were accrued at either December 31, 2018 or 2017. The Company follows authoritative guidance which requires the evaluation of existing tax positions. Management has analyzed all open tax years, as defined by the statute of limitations, for all major jurisdictions, which includes both federal and states where the Company has operations. Open tax years are those that are open for examination by taxing authorities. Use of estimates The preparation of financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates are used when accounting for revenue recognition, fair value of stock-based compensation and warrants, valuation allowance against deferred tax assets and related disclosures. Actual results could differ from those estimates. Subsequent events Management has evaluated subsequent events and transactions occurring through the date these financial statements were issued. See Note 14. 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) On August 26, 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) In May 2017, the FASB issued ASU No. 2017-09, Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act Recent accounting standards In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting

4. REVENUE

4. REVENUE	12 Months Ended
	Dec. 31, 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. The Company adopted Topic 606 in January 2018 and accordingly, 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 recognizes revenue when it satisfies a performance obligation by transferring the product or service to the customer, either at a point in time or over time. The Company usually recognizes revenue from integration service agreements at a point in time and integration license service agreements over a period of time. The Company has estimated that it will recognize approximately $155,000 in 2019 related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. Disaggregation of revenue: The following table provides information about disaggregated revenue by primary geographical markets and timing of revenue recognition for the year ended December 31, 2018 (in thousands): Integration Services Primary geographic markets Europe $ 226 Asia Pacific 20 Total $ 246 Timing of revenue recognition Products and services transferred at a point in time $ 176 Products and services transferred over time 70 Total $ 246 Deferred Revenue: The Company records deferred revenue for customers that were issued invoices, but the Company has not yet recognized the revenue based on its revenue recognition policy. During the year ended December 31, 2018, the Company did not recognize any revenue that was included in deferred revenue as of January 1, 2018. The Company did have approximately $55,000 in deferred revenue related to invoiced customers, but revenue has not yet been recognized as of December 31, 2018.

5. BASIC AND DILUTED LOSS PER S

5. BASIC AND DILUTED LOSS PER SHARE	12 Months Ended
	Dec. 31, 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 by the weighted-average number of shares and dilutive share equivalents outstanding for the period, determined using the treasury-stock and if-converted methods. 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): Year Ended December 31, 2018 2017 Stock Options 2,477 2,141 Unvested restricted stock (2017 Restated) 258 121 Warrants 765 765 3,500 3,027

6. PROPERTY AND EQUIPMENT

6. PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	6. PROPERTY AND EQUIPMENT Property and equipment consisted of the following (in thousands): December 31, 2018 2017 Computer equipment $ 91 $ 77 Laboratory equipment 76 76 Software 6 6 Office equipment 4 1 Furniture and fixtures 1 1 178 161 Less: Accumulated depreciation and amortization (122 ) (94 ) $ 56 $ 67 Depreciation and amortization expense relating to property and equipment was approximately $33,000 and $19,000 for the years ended December 31, 2018 and 2017, respectively. The Company depreciates computer equipment, laboratory equipment and office equipment on straight-line basis over three years. Furniture and fixtures are depreciated on a straight-line basis over five years. The Company amortizes software on straight-line basis over three years.

7. COMMITMENTS AND CONTINGENCIE

7. COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	7. COMMITMENTS AND CONTINGENCIES Operating leases In October 2016, the Company entered into lease agreement for approximately 200 square feet of office space in Cambridge, Massachusetts. The lease with monthly payments of $2,074 per month commenced on October 24, 2016. The lease rate increased to $2,619 on January 1, 2019. The lease is a month to month and can be cancelled with a 30-day notice. 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 to $13,401 in February 2019 due to an annual 3% increase and an 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 2019 $ 147 2020 165 2021 14 Total $ 326 Licensing agreement In December 2006, the Company entered into licensing agreement with ASM International, NV, a semiconductor OEM 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 EPI machines or any other machines used to manufacture semiconductors. The ASM license is coterminous with patents licensed by ASM, which 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 technology manufactured prior to January 8, 2019 will be subject to the ASM license royalty. The Company incurred approximately $4,000 and $3,000 in royalty expense under this agreement for the years ended December 31, 2018 and 2017, respectively, which is included in cost of revenue in the statement of operations. As of the date of this filing the Company no longer is required to pay any further royalty payments under this agreement. Legal The Company may be involved, from time to time, in legal proceedings and claims arising in the ordinary course of its business. Such matters are subject to many uncertainties and outcomes and are not predictable with assurance. While management believes that such matters are currently insignificant, matters arising in the ordinary course of business for which the Company is or could become involved in litigation may have a material adverse effect on its business and financial condition. To the Company’s knowledge, neither the Company nor any of its properties are subject to any pending legal proceedings.

8. STOCKHOLDERS' EQUITY

8. STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2018
Equity [Abstract]
STOCKHOLDERS' EQUITY	8. STOCKHOLDERS’ EQUITY The Company is authorized to issue to up 2,500,000 shares of preferred stock, $.001 par value. As of December 31, 2018, no shares have been designated and no shares are issued and outstanding. Preferred stock may rank prior to common stock with respect to dividends rights, liquidation preferences, or both, and may have full or limited voting rights. In May 2017, the Company issued 10,000 shares of common stock to a consultant for services rendered. The shares were valued at fair value on the date issued and the Company recorded an expense of approximately $60,000 in general and administrative expenses on the statement of operations for the year ended December 31, 2017. In October 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 received approximately $11.4 million of net proceeds after deducting underwriting discounts and commission and other estimated offering expenses. As of December 31, 2018, the Company has reserved approximately 3.2 million shares of common stock for issuance pursuant to outstanding stock options and warrants.

9. WARRANTS

9. WARRANTS	12 Months Ended
	Dec. 31, 2018
Equity [Abstract]
WARRANTS	9. WARRANTS The Company estimated the fair value of warrants using the Black-Scholes option pricing model. There were no warrants issued in the year ending December 31, 2018 or 2017. A summary of warrant activity for the year ended December 31, 2018 is as follows (shares in thousands except per share and contractual term): Number of Shares Weighted- Average Exercise Prices Weighted-Average Remaining Contractual Term (In Years) Outstanding at January 1, 2018 765 $ 5.75 Outstanding and exercisable at December 31, 2018 765 $ 5.75 1.9 The warrants outstanding at December 31, 2018 had an intrinsic value of approximately $405,000 based on a per-share stock price of $2.87 as of December 31, 2018.

10. STOCK BASED COMPENSATION

10. STOCK BASED COMPENSATION	12 Months Ended
	Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK BASED COMPENSATION	10. STOCK BASED COMPENSATION On March 14, 2007, the Company’s stockholders approved the 2007 Equity Incentive Plan (the “2007 Plan”). The 2007 Plan expired in March 2017, however all options and warrants outstanding at the time of the expiration remained outstanding and exercisable by their term. At the time of the expiration of the 2007 plan, options to purchase 2,106,637 shares of common stock were outstanding. 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 Company reserved a total of 3,750,000 shares of common stock for issuance under the 2017 Plan. All employees, officers, directors, consultants, advisors and other persons who provide services to the Company or any subsidiaries of the Company are eligible to receive incentive awards under the 2017 Plan. As of December 31, 2018, awards aggregate of 676,712 shares of common stock had been granted under the 2017 Plan and total of 3,073,288 shares of common stock are reserved for issuance. The following table summarizes the stock-based compensation expense recorded in the Company’s results of operations during the years ended December 31, 2018 and 2017 for stock options and restricted stock (in thousands): Year Ended December 31, 2018 2017 Research and development $ 558 $ 435 General and administrative 1,738 2,822 Selling and Marketing 129 761 $ 2,425 $ 4,018 As of December 31, 2018, there was approximately $4.3 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 2.1 years. The Company records compensation expense for employee awards with graded vesting using the straight-line method. The Company records compensation expense for nonemployee awards with graded vesting using the accelerated expense attribution method. The Company recognizes compensation expense over the requisite service period applicable to each individual award, which generally equals the vesting term. The Company estimates the fair value of each option award using the Black-Scholes-Merton option pricing model. Forfeitures are recognized when realized. The Company estimated the fair value of employee and non-employee stock options using the Black-Scholes option pricing model. The fair value of employee stock options is being amortized on a straight-line basis over the requisite service periods of the respective awards. The Company recognizes forfeitures as they occur rather than estimate their forfeiture rate. The fair value of employee stock options issued was estimated using the following weighted-average assumptions: Year Ended December 31, 2018 2017 Weighted average exercise price: $ 5.64 $ 6.73 Weighted average grant date fair value: $ 3.63 $ 2.94 Assumptions: Expected volatility 70.6 % 42.7 % Weighted average expected term (in years) 6.0 6.0 Risk-free interest rate 2.71 % 2.16 % Expected dividend yield 0.0 % 0.0 % The risk-free interest rate was obtained from U.S. Treasury rates for the applicable periods. The Company’s expected volatility was based upon the historical volatility of the Company. The expected life of the Company’s options was determined using the simplified method as a result of limited historical data regarding the Company’s activity. The dividend yield considers that the Company has not historically paid dividends and does not expect to pay dividends in the foreseeable future. The following table summarizes stock option activity during the year ended December 31, 2018 (in thousands except exercise prices and contractual terms): Number of Shares Weighted- Average Exercise Prices Weighted-Average Remaining Contractual Term (In Years) Intrinsic Value Outstanding at January 1, 2018 2,141 $ 7.03 Granted 338 $ 5.64 Exercised – $ – Expired (2 ) $ 59.10 Outstanding at December 31, 2018 2,477 $ 6.81 7.5 $ – Exercisable at December 31, 2018 1,537 $ 6.98 7.2 $ – During the year ended December 31, 2018, the Company granted options under its 2017 Plan purchase 337,924 shares of its common stock to its employees. The fair value of these options was approximately $1.2 million. 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 year ended December 31, 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 (111 ) $ 6.19 Cancelled – $ – Outstanding non-vested shares at December 31, 2018 258 $ 6.04

11. 401K PLAN

11. 401K PLAN	12 Months Ended
	Dec. 31, 2018
Retirement Benefits [Abstract]
401K PLAN	11. 401(k) PLAN During 2002, the Company established a plan under Section 401(k) of the Internal Revenue Code (the 401(k) Plan). The 401(k) Plan covers substantially all of its employees who have attained 18 years of age. Employees may elect to contribute part of their annual compensation to the 401(k) Plan, up to the maximum deferral allowance for individuals by the Internal Revenue Service under Code Section 401(k), and the Company may make a matching contribution. During 2018 and 2017, there were no matching contributions made by the Company.

12. INCOME TAXES

12. INCOME TAXES	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	12. INCOME TAXES On December 22, 2017, the 2017 Tax Cut and Jobs Act (“the Act”) was enacted into law and the new legislation contains several key tax provisions, including a one-time mandatory transition tax on undistributed foreign earnings and a reduction of the corporate income tax rate to 21% effective January 1, 2018, among others. The Company is required to recognize the effect of the tax law changes in the period of enactment, such as determining the estimated transition tax, re-measuring its U.S. deferred tax assets and liabilities at a 21% rate as well as reassessing the net realizability of its deferred tax assets and liabilities. The one-time transition tax does not apply to the Company as it does not have any undistributed foreign earnings. The provisional amount related to the re-measurement of its deferred tax balance was a reduction of approximately $9.9 million as of December 31, 2017. Due to the corresponding valuation allowance fully offsetting deferred taxes, there was no income statement impact. Upon completion of the Company’s 2017 U.S. income tax return in 2018, the Company re-assessed its provisional estimate within the measurement period guidance outlined in SAB 118 and determined that the original estimate of $9.9 million was materially correct. The loss before provision for income taxes consisted of the following (in thousands): Year Ended December 31, 2018 2017 Domestic $ (12,897 ) $ (13,068 ) International – – Total $ (12,897 ) $ (13,068 ) The Company had no income tax expense due to operating losses incurred for the years ended December 31, 2018 and 2017. The Company accounts for income taxes in accordance with ASC 740, which requires that the tax benefit of net operating losses, temporary differences and credit carryforwards be recorded as an asset to the extent that management assesses that realization is "more likely than not." Realization of the future tax benefits is dependent on the Company's ability to generate sufficient taxable income within the carryforward period. Because of the Company's recent history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not likely to be realized and, accordingly, has provided a full valuation allowance. The valuation allowance increased by approximately $2.8 million during the year ended December 31, 2018 and decreased by approximately $5.3 million during the year ended December 31, 2017. The Company’s deferred tax assets are as follows (in thousands): Year Ended December 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 17,309 $ 14,907 Tax credit 1,233 1,074 Fixed assets and intangibles 1,528 1,784 Stock compensation 1,994 1,621 Accruals and other 212 111 Total deferred tax assets $ 22,276 $ 19,497 Valuation allowance (22,276 ) (19,497 ) Net deferred tax asset $ – $ – Net operating losses and tax credit carryforwards as of December 31, 2018, are as follows (in thousands): Amount Expiration in years Net operating losses, federal $ 11,185 No expiration Net operating losses, federal $ 63,507 2027-2037 Net operating losses, state $ 26,657 2030-2038 Tax credits, federal $ 1,132 2027-2038 Tax credits, state $ 180 No expiration Tax credits, state $ 731 2022-2033 The effective tax rate of the Company’s provision (benefit) for income taxes differs from the federal statutory rate as follows: Year ending December 31, 2018 2017 Statutory rate 21 % 34.00 % State rate 1.17 % 1.13 % Non-deductible items (0.75 )% (1.07 )% Change in valuation allowance (21.54 )% (34.77 )% Change in tax credits 0.12 % 0.71 % Changes in deferred tax assets due to tax reform – (75.66 )% Changes in valuation allowance due to tax reform – 75.66 % Total – – Utilization of U.S. net operating losses and tax credit carryforwards may be limited by “ownership change” rules, as defined in Section 382 of the Internal Revenue Code. Similar rules may apply under state tax laws. The Company has not conducted a study to-date to assess whether a limitation would apply under Section 382 of the Internal Revenue Code as and when it starts utilizing its net operating losses and tax credits. The Company will continue to monitor activities in the future. In the event the Company previously experienced an ownership change, or should experience an ownership change in the future, the amount of net operating losses and research and development credit carryovers available in any taxable year could be limited and may expire unutilized. The Company establishes reserves for uncertain tax positions based on the largest amount that is more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. It is the Company’s policy to recognize interest and penalties related to income tax matters in income tax expense. As of December 31, 2018 and 2017, respectively, the Company has no accrued interest or penalties related to uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. In the normal course of business, the Company is subject to examination by their respective taxing authorities. The Company is not currently under audit by the Internal Revenue Service or other similar state or local authority. The statute of limitations remains effectively open for all tax years from inception (2007) through 2018. Tax years outside the normal statute of limitations remain open to examination by tax authorities due to tax attributes generated in earlier years which have been carried forward and may be examined and adjusted in subsequent years when utilized. The following table summarizes the activity related to the Company’s gross unrecognized tax benefits for the years ended December 31, 2018 and 2017 (in thousands): 2018 2017 January 1 – unrecognized tax benefits $ 606 $ 510 Increases (decreases) – prior year tax positions 4 (3 ) Increases – current year tax positions 122 99 December 31 - unrecognized tax benefits $ 732 $ 606 The following table summarizes the activity in the Company’s Valuation Allowance and Qualifying Accounts for the years ended December 31, 2018 and 2017 (in thousands): Balance at Beginning of Year Additions Deductions Balance at End of Year Deferred tax assets valuation allowance Year ended December 31, 2018 $ 19,497 $ 3,035 $ 256 $ 22,276 Year ended December 31, 2017 $ 24,819 $ 892 $ 6,214 $ 19,497

13. PRIOR PERIOD FINANCIAL STAT

13. PRIOR PERIOD FINANCIAL STATEMENT REVISION	12 Months Ended
	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prior Period Financial Statement Revision	13. PRIOR PERIOD FINANCIAL STATEMENT REVISION During the first quarter of 2018, the Company identified an error related to the calculation of its basic and diluted weighted average number of common shares outstanding. The Company was inadvertently including unvested restricted stock awards in its calculation of average number of commons shares outstanding. The Company assessed the materiality of this error on its financial statements for prior periods in accordance with the SEC Staff Accounting Bulletin (“SAB”) No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, codified in Accounting Standards Codification (ASC) 250-10-20, Error in Previously Issued Financial Statements The effects of the correction of the immaterial error on the Company’s Financial Statements was as follows (in thousands): December 31, 2017 Statement of Operations Amounts Previously Reported Adjustment As Revised Net loss $ (13,068 ) ̶ $ (13,068 ) Net loss per common share, basic and diluted $ (1.08 ) $ (0.03 ) $ (1.11 ) Weighted average number of common shares outstanding, basic and diluted 12,124 (351 ) 11,773

14. SUBSEQUENT EVENTS

14. SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	14. SUBSEQUENT EVENTS The Company has evaluated subsequent events since December 31, 2018, the date of these financials. On February 27, 2019, the Compensation Committee of the Board of Directors of the Company approved the issuance of 297,978 shares of Restricted Stock Awards and 442,309 Stock Options to its employees.

3. SUMMARY OF SIGNIFICANT ACC_2

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and reflect the financial position, results of operations and cash flows for all periods presented.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Authoritative guidance requires disclosure of the fair value of financial instruments. The Company’s financial instruments consist of cash and cash equivalents, accounts receivable and accounts payable, the carrying amounts of which approximate their estimated fair values primarily due to the short-term nature of the instruments or based on information obtained from market sources and management estimates. The Company measures the fair value of certain of its financial assets and liabilities on a recurring basis. A fair value hierarchy is used to rank the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value which is not equivalent to cost will be classified and disclosed in one of the following three categories: Level 1 — Quoted prices (unadjusted) in active markets for identical assets and liabilities. Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as unadjusted quoted prices for similar assets and liabilities, unadjusted quoted prices in the markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Cash and cash equivalents	Cash and cash equivalents The Company maintains its operating accounts in a single reputable financial institution. The balances are insured by the U.S. Federal Deposit Insurance Corporation (“FDIC”) up to specified limits. The Company’s cash is maintained in checking accounts and money market funds with maturities of less than three months when purchased, which are readily convertible to known amounts of cash, and which in the opinion of management are subject to insignificant risk of loss in value.
Concentration of Credit Risk and Major Customers	Concentration of Credit Risk and Major Customers Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash, cash equivalents and accounts receivable. During the year ended December 31, 2018, three customers each represented 72%, 20% and 8% of revenues and 43%, 30% and 27% of the accounts receivable balance at December 31, 2018. During the year ended December 31, 2017, one customer represented 100% of revenues and 100% of the accounts receivable balance at December 31, 2017. At times, the amounts on deposit at the financial institution exceed the federally insured limits. Management believes that the financial institutions which hold the Company’s cash is financially sound and, accordingly, minimal credit risk exists. As of December 31, 2018 and 2017, the Company’s cash balances were in excess of insured limits maintained at the financial institution.
Accounts receivable	Accounts Receivable The Company grants credit to its business customers. Collateral is generally not required for trade receivables. The Company maintains allowances for potential credit losses when necessary. Trade accounts receivable are recorded net of allowances for cash discounts for prompt payment, doubtful accounts, and sales returns. The Company’s policy is to reserve for uncollectible accounts based on its best estimate of the amount of probable credit losses in its existing accounts receivable. The Company periodically reviews its accounts receivable to determine whether an allowance for doubtful accounts is necessary based on an analysis of past due accounts and other factors that may indicate that the realization of an account may be in doubt. Other factors that the Company considers include its existing contractual obligations, historical payment patterns of its customers and individual customer circumstances, and an analysis of days sales outstanding by customer. Account balances deemed to be uncollectible are charged to the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. At December 31, 2018 and 2017, there were no allowances for doubtful accounts since the balances were subsequently collected. Any allowances recorded are included in Accounts Receivable, net in the accompanying balance sheets.
Impairment of long-lived assets	Impairment of long-lived assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that it is more likely than not that the asset’s carrying amount may not be recoverable. The Company conducts its long-lived asset impairment analyses in accordance with authoritative guidance which requires the Company to group assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset group against the sum of the undiscounted future cash flows. If the undiscounted cash flows do not indicate the carrying amount of the asset is recoverable, an impairment charge is measured as the amount by which the carrying amount of the asset group exceeds its fair value based on discounted cash flow analysis or appraisals.
Property and equipment	Property and equipment Items capitalized as property and equipment are stated at cost. Maintenance and routine repairs are charged to operations when incurred, while betterments and renewals are capitalized. Depreciation and amortization are computed using he straight-line method over the estimated useful lives of the respective assets starting when the asset is placed in service.
Common stock warrants	Common stock warrants The Company classifies as equity any warrants that (i) require physical settlement or net-share settlement or (ii) provide the Company with a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the Company’s control), (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement) or (iii) that contain reset provisions that do not qualify for the scope exception. The Company assesses classification of its common stock warrants and other freestanding derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. The Company’s freestanding derivatives consist of warrants to purchase common stock that were issued in connection with its notes payable. The Company evaluated these warrants to assess their proper classification and determined that the common stock warrants meet the criteria for equity classification in the balance sheet. Such warrants are measured at fair value, which the Company determines using the Black-Scholes-Merton option-pricing model.
Revenue	Revenue The Company generates revenue from integration services which it delivers either pursuant to integration license agreements or delivery of engineering services. 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. The Company’s integration services generally consist of depositing its proprietary technology onto the customer’s semiconductor wafers and delivering such wafers back to the customer. Revenue from integration services is recognized as the performance obligations are satisfied, which is upon transfer of control of the wafers to the customer (generally upon shipment). For recognizing integration service revenue from integration license agreements, the Company assesses (i) whether the license grant is distinct or combined with the transfer of goods or services and (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 as the obligations to perform the combined services and/or deliver the combined goods are satisfied. The Company’s integration license agreements contain a technology grant as well as a performance obligation to deliver wafers with its technology deposited on them. The Company has determined the license grant is not distinct from the integration service. Accordingly, revenue from integration license agreements is recognized over time based on the Company’s estimate of the time during which the service will be provided to the customer. Deferred revenues consist of unearned amounts that have been billed to the customer in advance of the Company’s performance obligations. These amounts have not yet been recognized as revenue. Revenue for these items will be recognized in accordance with the Company’s revenue policy.
Research and development expenses	Research and development expenses In accordance with authoritative guidance, the Company charges research and development costs to operations as incurred. Research and development expenses consist of personnel costs for the design, development, testing and enhancement of the Company’s technology, and certain other allocated costs, such as depreciation and other facilities related expenditures.
Stock-based compensation	Stock-based compensation The Company computes stock-based compensation in accordance with authoritative guidance. The Company uses the Black-Scholes-Merton option-pricing model to determine the fair value of its stock options. The Black-Scholes-Merton option-pricing model includes various assumptions, including the fair market value of the common stock of the Company, expected life of stock options, the expected volatility and the expected risk-free interest rate, among others. These assumptions reflect the Company’s best estimates, but they involve inherent uncertainties based on market conditions generally outside the control of the Company. Forfeitures are recorded when they occur. As a result, if other assumptions had been used, stock-based compensation cost, as determined in accordance with authoritative guidance, could have been materially impacted. Furthermore, if the Company uses different assumptions on future grants, stock-based compensation cost could be materially affected in future periods. The Company accounts for the fair value of equity instruments issued to non-employees using either the fair value of the services received or the fair value of the equity instrument, whichever is considered more reliable. The Company utilizes the Black-Scholes-Merton option-pricing model to measure the fair value of options issued to non-employees.
Income Taxes	Income Taxes In accordance with authoritative guidance, deferred tax assets and liabilities are recorded for temporary differences between the financial reporting and tax bases of assets and liabilities using the current enacted tax rate expected to be in effect when the differences are expected to reverse. A valuation allowance is recorded on deferred tax assets unless realization is considered more likely than not. The Company evaluates its tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are not recorded as a tax benefit or expense in the current year. The Company recognizes interest and penalties, if any, related to uncertain tax positions in interest expense. No interest and penalties related to uncertain tax positions were accrued at either December 31, 2018 or 2017. The Company follows authoritative guidance which requires the evaluation of existing tax positions. Management has analyzed all open tax years, as defined by the statute of limitations, for all major jurisdictions, which includes both federal and states where the Company has operations. Open tax years are those that are open for examination by taxing authorities.
Use of estimates	Use of estimates The preparation of financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates are used when accounting for revenue recognition, fair value of stock-based compensation and warrants, valuation allowance against deferred tax assets and related disclosures. Actual results could differ from those estimates.
Subsequent events	Subsequent events Management has evaluated subsequent events and transactions occurring through the date these financial statements were issued. See Note 14.

4. REVENUE (Tables)

4. REVENUE (Tables)	12 Months Ended
	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenue from contracts	Integration Services Primary geographic markets Europe $ 226 Asia Pacific 20 Total $ 246 Timing of revenue recognition Products and services transferred at a point in time $ 176 Products and services transferred over time 70 Total $ 246

5. BASIC AND DILUTED LOSS PER_2

5. BASIC AND DILUTED LOSS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2018
Earnings Per Share [Abstract]
Schedule of potential common stock equivalents not included in the calculation of diluted net loss per common share	Year Ended December 31, 2018 2017 Stock Options 2,477 2,141 Unvested restricted stock (2017 Restated) 258 121 Warrants 765 765 3,500 3,027

6. PROPERTY AND EQUIPMENT (Tabl

6. PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	December 31, 2018 2017 Computer equipment $ 91 $ 77 Laboratory equipment 76 76 Software 6 6 Office equipment 4 1 Furniture and fixtures 1 1 178 161 Less: Accumulated depreciation and amortization (122 ) (94 ) $ 56 $ 67

7. COMMITMENTS AND CONTINGENC_2

7. COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum lease payments required under operating leases	Years ending December 31, Amount 2019 $ 147 2020 165 2021 14 Total $ 326

9. WARRANTS (Tables)

9. WARRANTS (Tables)	12 Months Ended
	Dec. 31, 2018
Equity [Abstract]
Schedule of warrant activity	Number of Shares Weighted- Average Exercise Prices Weighted-Average Remaining Contractual Term (In Years) Outstanding at January 1, 2018 765 $ 5.75 Outstanding and exercisable at December 31, 2018 765 $ 5.75 1.9

10. STOCK BASED COMPENSATION (T

10. STOCK BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock-based compensation expense	Year Ended December 31, 2018 2017 Research and development $ 558 $ 435 General and administrative 1,738 2,822 Selling and Marketing 129 761 $ 2,425 $ 4,018
Schedule of weighted-average assumptions	Year Ended December 31, 2018 2017 Weighted average exercise price: $ 5.64 $ 6.73 Weighted average grant date fair value: $ 3.63 $ 2.94 Assumptions: Expected volatility 70.6 % 42.7 % Weighted average expected term (in years) 6.0 6.0 Risk-free interest rate 2.71 % 2.16 % Expected dividend yield 0.0 % 0.0 %
Schedule of stock option activity	Number of Shares Weighted- Average Exercise Prices Weighted-Average Remaining Contractual Term (In Years) Intrinsic Value Outstanding at January 1, 2018 2,141 $ 7.03 Granted 338 $ 5.64 Exercised – $ – Expired (2 ) $ 59.10 Outstanding at December 31, 2018 2,477 $ 6.81 7.5 $ – Exercisable at December 31, 2018 1,537 $ 6.98 7.2 $ –
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 (111 ) $ 6.19 Cancelled – $ – Outstanding non-vested shares at December 31, 2018 258 $ 6.04

12. INCOME TAXES (Tables)

12. INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Net income/(loss) before provision for income taxes table	Year Ended December 31, 2018 2017 Domestic $ (12,897 ) $ (13,068 ) International – – Total $ (12,897 ) $ (13,068 )
Schedule of deferred tax assets	Year Ended December 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 17,309 $ 14,907 Tax credit 1,233 1,074 Fixed assets and intangibles 1,528 1,784 Stock compensation 1,994 1,621 Accruals and other 212 111 Total deferred tax assets $ 22,276 $ 19,497 Valuation allowance (22,276 ) (19,497 ) Net deferred tax asset $ – $ –
Schedule of net operating losses	Amount Expiration in years Net operating losses, federal $ 11,185 No expiration Net operating losses, federal $ 63,507 2027-2037 Net operating losses, state $ 26,657 2030-2038 Tax credits, federal $ 1,132 2027-2038 Tax credits, state $ 180 No expiration Tax credits, state $ 731 2022-2033
Schedule of effective income tax rates	Year ending December 31, 2018 2017 Statutory rate 21% 34.00% State rate 1.17% 1.13% Non-deductible items (0.75)% (1.07)% Change in valuation allowance (21.54)% (34.77)% Change in tax credits 0.12% 0.71% Changes in deferred tax assets due to tax reform – (75.66)% Changes in valuation allowance due to tax reform – 75.66% Total – –
Schedule of unrecognized tax benefits	2018 2017 January 1 – unrecognized tax benefits $ 606 $ 510 Increases (decreases) – prior year tax positions 4 (3 ) Increases – current year tax positions 122 99 December 31 - unrecognized tax benefits $ 732 $ 606
Activity in the Valuation Allowance and Qualifying Accounts	Balance at Beginning of Year Additions Deductions Balance at End of Year Deferred tax assets valuation allowance Year ended December 31, 2018 $ 19,497 $ 3,035 $ 256 $ 22,276 Year ended December 31, 2017 $ 24,819 $ 892 $ 6,214 $ 19,497

13. PRIOR PERIOD FINANCIAL ST_2

13. PRIOR PERIOD FINANCIAL STATEMENT REVISION (Tables)	12 Months Ended
	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prior Period Financial Statement Revision	December 31, 2017 Statement of Operations Amounts Previously Reported Adjustment As Revised Net loss $ (13,068 ) ̶ $ (13,068 ) Net loss per common share, basic and diluted $ (1.08 ) $ (0.03 ) $ (1.11 ) Weighted average number of common shares outstanding, basic and diluted 12,124 (351 ) 11,773

2. LIQUIDITY AND MANAGEMENT P_2

2. LIQUIDITY AND MANAGEMENT PLANS (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 18,933	$ 17,369	$ 26,718
Working capital	17,700
Accumulated deficit	$ (121,962)	$ (109,065)

3. SUMMARY OF SIGNIFICANT ACC_3

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Allowance for doubtful accounts	$ 0	$ 0
Asset impairment expense	0	0
Interest or penalties related to uncertain tax positions	$ 0	$ 0
Sales Revenue Net [Member] | Customer 1 [Member]
Concentration risk percentage	72.00%	100.00%
Sales Revenue Net [Member] | Customer 2 [Member]
Concentration risk percentage	20.00%
Sales Revenue Net [Member] | Customer 3 [Member]
Concentration risk percentage	8.00%
Accounts Receivable [Member] | Customer 1 [Member]
Concentration risk percentage	43.00%	100.00%
Accounts Receivable [Member] | Customer 2 [Member]
Concentration risk percentage	30.00%
Accounts Receivable [Member] | Customer 3 [Member]
Concentration risk percentage	27.00%

4. REVENUE (Details)

4. REVENUE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenue	$ 246	$ 110
Transferred at Point in Time [Member]
Revenue	176
Transferred Over Time [Member]
Revenue	70
Europe [Member]
Revenue	226
Asia Pacific [Member]
Revenue	$ 20

4. REVENUE (Details Narrative)

4. REVENUE (Details Narrative)	12 Months Ended
	Dec. 31, 2019USD ($)
Performance Obligations [Member]
Expected revenue from performance obligations that are unsatisfied or partially unsatisfied at the end of this reporting period.	$ 155,000

5. BASIC AND DILUTED LOSS PER_3

5. BASIC AND DILUTED LOSS PER SHARE (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Potential common stock equivalents	3,500	3,027
Stock Options [Member]
Potential common stock equivalents	2,477	2,141
Unvested Restricted Stock [Member]
Potential common stock equivalents	258	121
Warrants [Member]
Potential common stock equivalents	765	765

6. PROPERTY AND EQUIPMENT (Deta

6. PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Property and equipment, gross	$ 178	$ 161
Accumulated depreciation and amortization	(122)	(94)
Property and equipment, net	56	67
Computer Equipment [Member]
Property and equipment, gross	91	77
Laboratory equipment [Member]
Property and equipment, gross	76	76
Software [Member]
Property and equipment, gross	6	6
Office Equipment [Member]
Property and equipment, gross	4	1
Furniture and Fixtures [Member]
Property and equipment, gross	$ 1	$ 1

6. PROPERTY AND EQUIPMENT (De_2

6. PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 33	$ 19
Estimated useful lives of property		3-5 years
Estimated useful live of software		3 years

7. COMMITMENTS AND CONTINGENC_3

7. COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Dec. 31, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019	$ 147
2020	165
2021	14
Total future minimum payments due	$ 326

7. COMMITMENTS AND CONTINGENC_4

7. COMMITMENTS AND CONTINGENCIES (Details Narrative)	12 Months Ended
	Dec. 31, 2018USD ($)ft²	Dec. 31, 2017USD ($)
ASM International [Member]
Royalty expense | $	$ 4,000	$ 3,000
Cambridge, MA [Member]
Lease initial date	Oct. 24, 2016
Area rented	200
Lease description	$2074 per month. The lease rate increased to $2,619 on January 1, 2019. Lease is month-to-month and can be cancelled with a 30-day notice.
Los Gatos, CA [Member]
Lease initial date	Feb. 1, 2016
Area rented	3,396
Lease description	The lease rate was increased to $13,401 in February 2019
Lease expiration date	Jan. 31, 2021

8. STOCKHOLDERS' EQUITY (Detail

8. STOCKHOLDERS' EQUITY (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Stock issued for services, value		$ 60
Proceeds from issuance of common stock	$ 11,360	$ 0
Shares reserved for options and warrants	3,200,000
Public Offering [Member]
Stock issued new, shares	2,625,000
Proceeds from issuance of common stock	$ 11,400
Stock price	$ 4.75
Consultant [Member]
Stock issued for services, shares		10,000
Stock issued for services, value		$ 60

9. WARRANTS (Details)

9. WARRANTS (Details) - Warrants [Member] shares in Thousands	12 Months Ended
	Dec. 31, 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	1 year 10 months 24 days

9. WARRANTS (Details Narrative)

9. WARRANTS (Details Narrative) - Warrants [Member] $ / shares in Units, $ in Thousands	Dec. 31, 2018USD ($)$ / shares
Intrinsic value | $	$ 405
Stock price | $ / shares	$ 2.87

10. STOCK BASED COMPENSATION (D

10. STOCK BASED COMPENSATION (Details - Compensation Expense) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Allocated stock-based compensation	$ 2,425	$ 4,018
Research and Development [Member]
Allocated stock-based compensation	558	435
General and Administrative [Member]
Allocated stock-based compensation	1,738	2,822
Selling and Marketing [Member]
Allocated stock-based compensation	$ 129	$ 761

10. STOCK BASED COMPENSATION _2

10. STOCK BASED COMPENSATION (Details Assumptions) - Options [Member] - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Weighted average exercise price	$ 5.64	$ 6.73
Weighted average grant date fair value	$ 3.63	$ 2.94
Expected volatility	70.60%	42.70%
Weighted average expected term (in years)	6 years	6 years
Risk-free interest rate	2.71%	2.16%
Expected dividend yield	0.00%	0.00%

10. STOCK BASED COMPENSATION _3

10. STOCK BASED COMPENSATION (Details - Stock Option Activity) - Options [Member] $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 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 exercised | shares	0
Options expired | shares	(2)
Options outstanding, ending balance | shares	2,477
Options exercisable | shares	1,537
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 exercised | $ / shares
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	$ 6.98
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 6 months
Weighted average remaining contractual term, options exercisable	7 years 2 months 12 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Intrinsic Value [Roll Forward]
Intrinsic value, options outstanding ending balance | $	$ 0
Intrinsic value, options exercisable | $	$ 0

10. STOCK BASED COMPENSATION _4

10. STOCK BASED COMPENSATION (Details - Restricted stock) - Restricted Stock [Member] shares in Thousands	12 Months Ended
	Dec. 31, 2018$ / sharesshares
Number of shares
Restricted stock outstanding, beginning balance	121
Restricted stock granted	248
Restricted stock vested	(111)
Restricted stock cancelled	0
Restricted stock outstanding, ending balance	258
Weighted-Average Grant Date Fair Value
Restricted stock outstanding, beginning balance | $ / shares	$ 6.90
Restricted stock granted | $ / shares	5.69
Restricted stock vested | $ / shares	6.19
Restricted stock outstanding, ending balance | $ / shares	$ 6.04

10. STOCK BASED COMPENSATION _5

10. STOCK BASED COMPENSATION (Details Narrative) - USD ($) $ in Thousands	12 Months Ended	20 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Unrecognized compensation expense	$ 4,300	$ 4,300
Unrecognized compensation weighted average period	2 years 1 month 6 days
Options [Member]
Options outstanding	2,477,000	2,477,000	2,141,000
Options granted	338,000
Fair value of options granted	$ 1,200
2017 Plan [Member]
Shares authorized for issuance	3,750,000	3,750,000
Options granted		676,712
Remaining shares available for grant	3,073,288	3,073,288

11. 401K PLAN (Details Narrativ

11. 401K PLAN (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Retirement Benefits [Abstract]
Company contributions to pension plan	$ 0	$ 0

12. INCOME TAXES (Details - Net

12. INCOME TAXES (Details - Net loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Net loss before provision for income taxes	$ (12,897)	$ (13,068)
Domestic [Member]
Net loss before provision for income taxes	(12,897)	(13,068)
International [Member]
Net loss before provision for income taxes	$ 0	$ 0

12. INCOME TAXES (Details - Def

12. INCOME TAXES (Details - Deferred tax assets) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Net operating loss carryforwards	$ 17,309	$ 14,907
Tax credit	1,233	1,074
Fixed assets and intangibles	1,528	1,784
Stock compensation	1,994	1,621
Accruals and other	212	111
Total deferred tax assets	22,276	19,497
Valuation allowance	(22,276)	(19,497)	$ (24,819)
Net deferred tax asset	$ 0	$ 0

12. INCOME TAXES (Details - NOL

12. INCOME TAXES (Details - NOL) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)
Federal [Member]
Net operating loss	$ 11,185
Net operating loss expiration dates	No expiration
Tax credits	$ 1,132
Tax credits expiration dates	2027-2038
Federal [Member]
Net operating loss	$ 63,507
Net operating loss expiration dates	2027-2037
State [Member]
Net operating loss	$ 26,657
Net operating loss expiration dates	2030-2037
Tax credits	$ 180
Tax credits expiration dates	No expiration
State [Member]
Tax credits	$ 731
Tax credits expiration dates	2022-2033

12. INCOME TAXES (Details - Eff

12. INCOME TAXES (Details - Effective rate)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Statutory rate	21.00%	34.00%
State rate	1.17%	1.13%
Non-deductible items	(0.75%)	(1.07%)
Change in valuation allowance	(21.54%)	(34.77%)
Change in tax credits	0.12%	0.71%
Changes in deferred tax assets due to tax reform	0.00%	(75.66%)
Changes in valuation allowance due to tax reform	0.00%	75.66%
Total	0.00%	0.00%

12. INCOME TAXES (Details - Unr

12. INCOME TAXES (Details - Unrecognized tax benefits) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Unrecognized tax benefit, beginning balance	$ 606	$ 510
Increase - prior year tax position	4
Decrease - prior year tax position		(3)
Increase - current year tax position	122	99
Unrecognized tax benefit, ending balance	$ 732	$ 606

12. INCOME TAXES (Details - D_2

12. INCOME TAXES (Details - Deferred valuation allowance) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Deferred tax asset valuation allowance, beginning balance	$ 19,497	$ 24,819
Additions	3,035	892
Deductions	256	6,214
Deferred tax asset valuation allowance, ending balance	$ 22,276	$ 19,497

12. INCOME TAXES (Details Narra

12. INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Reduction of deferred tax balance due to tax reform		$ (9,900)
Increase (decrease) in valuation allowance	$ 2,800	$ (5,300)

13. PRIOR PERIOD FINANCIAL ST_3

13. PRIOR PERIOD FINANCIAL STATEMENT REVISION (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Net loss	$ (12,897)	$ (13,068)
Net loss per common share, basic and diluted	$ (1.02)	$ (1.11)
Weighted average number of common shares outstanding, basic and diluted	12,655	11,773
Calculation of shares [Member] | Scenario Previously Reported [Member]
Net loss		$ (13,068)
Net loss per common share, basic and diluted		$ (1.08)
Weighted average number of common shares outstanding, basic and diluted		12,124
Calculation of shares [Member] | Restatement Adjustment [Member]
Net loss
Net loss per common share, basic and diluted		$ (0.03)
Weighted average number of common shares outstanding, basic and diluted		(351)