Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 10, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | Atomera Inc | ||
Entity Central Index Key | 0001420520 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
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 | $ 162,598,698 | ||
Entity Common Stock, Shares Outstanding | 22,622,670 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Transition Period | true | ||
Entity a Well-known Seasoned Issuer | Yes | ||
Entity a Voluntary Filer | No | ||
Entity Shell Company | false | ||
Interactive Data Current | Yes | ||
Entity Incorporation State Country Code | DE | ||
Entity File Number | 001-37850 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 37,942 | $ 14,871 |
Prepaid expenses and other current assets | 132 | 132 |
Total current assets | 38,074 | 15,003 |
Property and equipment, net | 153 | 63 |
Operating lease right-of-use asset | 705 | 161 |
Long-term prepaid rent | 450 | 0 |
Security deposit | 13 | 13 |
Total assets | 39,395 | 15,240 |
Current liabilities: | ||
Accounts payable | 442 | 315 |
Accrued expenses | 211 | 145 |
Accrued payroll related expenses | 705 | 819 |
Current operating lease liability | 90 | 152 |
Deferred revenue | 0 | 37 |
Total liabilities | 1,448 | 1,468 |
Long term operating lease liability | 602 | |
Total liabilities | 2,050 | 1,468 |
Commitments and contingencies (see Note 8) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value, authorized 2,500 shares: none issued and outstanding at December 31, 2020 and 2019 | 0 | 0 |
Common stock, $0.001 par value, authorized 47,500 shares; 22,375 shares issued and outstanding at December 31, 2020 and 17,117 issued and outstanding as of December 31, 2019 | 22 | 17 |
Additional paid-in capital | 187,463 | 149,017 |
Accumulated deficit | (150,140) | (135,262) |
Total stockholders' equity | 37,345 | 13,772 |
Total liabilities and stockholders' equity | $ 39,395 | $ 15,240 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
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 | 22,375 | 17,117 |
Common stock, oustanding | 22,375 | 17,117 |
Statements of Operations
Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 62 | $ 533 |
Cost of revenue | 13 | 253 |
Gross margin | 49 | 280 |
Operating Expenses: | ||
Research and development | 8,424 | 7,748 |
General and administrative | 5,624 | 5,203 |
Selling and marketing | 921 | 954 |
Total operating expenses | 14,969 | 13,905 |
Loss from operations | (14,920) | (13,625) |
Other income: | ||
Interest income | 42 | 325 |
Total other income | 42 | 325 |
Net loss | $ (14,878) | $ (13,300) |
Net loss per common share, basic and diluted | $ (0.79) | $ (0.84) |
Weighted average number of common shares outstanding, basic and diluted | 18,752 | 15,852 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning balance, shares at Dec. 31, 2018 | 15,034,000 | |||
Beginning balance, value at Dec. 31, 2018 | $ 15 | $ 139,693 | $ (121,962) | $ 17,746 |
Stock-based compensation, shares | 408,000 | |||
Stock-based compensation, value | 2,929 | 2,929 | ||
Warrant modification | 0 | |||
Registered direct offering of common stock, net of commissions and other offering expenses, shares | 1,675,000 | |||
Registered direct offering of common stock, net of commissions and other offering expenses, value | $ 2 | 6,395 | 6,397 | |
Net loss | (13,300) | (13,300) | ||
Ending balance, shares at Dec. 31, 2019 | 17,117,000 | |||
Ending balance, value at Dec. 31, 2019 | $ 17 | 149,017 | (135,262) | 13,772 |
Stock-based compensation, shares | 463,000 | |||
Stock-based compensation, value | $ 1 | 3,040 | 3,041 | |
Warrant modification | 141 | 141 | ||
Warrant exercise, shares | 411,000 | |||
Warrant Exercise, value | 994 | 994 | ||
Stock option exercise, shares | 153,000 | |||
Stock option exercise, value | 889 | 889 | ||
Underwritten public offering of common stock, net of commissions and expenses, shares | 2,024,000 | |||
Underwritten public offering of common stock, net of commissions and expenses, value | $ 2 | 9,393 | 9,395 | |
At-the-market sale of stock, net of commissions and expenses, shares | 2,207,000 | |||
At-the-market sale of stock, net of commissions and expenses | $ 2 | 23,989 | 23,991 | |
Net loss | (14,878) | (14,878) | ||
Ending balance, shares at Dec. 31, 2020 | 22,375,000 | |||
Ending balance, value at Dec. 31, 2020 | $ 22 | $ 187,463 | $ (150,140) | $ 37,345 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Loss | $ (14,878) | $ (13,300) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 41 | 44 |
Right of use asset amortization | 138 | 134 |
Stock-based compensation | 3,041 | 2,929 |
Warrant modification expense | 141 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 0 | 185 |
Prepaid expenses and other current assets | 0 | 25 |
Long-term prepaid rent | (450) | 0 |
Accounts payable | 127 | (33) |
Accrued expenses | 66 | (75) |
Accrued payroll expenses | (114) | (165) |
Lease liability | (142) | (134) |
Deferred revenue | (37) | (18) |
Net cash used in operating activities | (12,067) | (10,408) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisition of property and equipment | (131) | (51) |
Net cash used in investing activities | (131) | (51) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from at-the-market sale of stock, net of commissions and expenses | 23,991 | 0 |
Proceeds from underwritten public offering, net of commissions and expenses | 9,395 | 0 |
Proceeds from registered direct offering of common stock, net of commissions and expenses | 0 | 6,397 |
Proceeds from exercise of stock options | 889 | 0 |
Proceeds from exercise of warrants | 994 | 0 |
Net cash provided by financing activities | 35,269 | 6,397 |
Net increase/(decrease) in cash and cash equivalents | 23,071 | (4,062) |
Cash and cash equivalents at beginning of year | 14,871 | 18,933 |
Cash and cash equivalents at end of year | 37,942 | 14,871 |
Supplemental Information: | ||
Cash paid for interest | 0 | 0 |
Cash paid for taxes | $ 0 | $ 0 |
1. NATURE OF OPERATIONS
1. NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2020 | |
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. Atomera is in an early stage company, having only recently begun limited revenue-generating activities, and is devoting substantially all of its efforts toward technology research and development and to commercially licensing its technology to designers and manufacturers of integrated circuits. The Company has primarily financed operations through private placements of equity and debt securities, the Company’s Initial Public Offering (the “IPO”) which was consummated on August 10, 2016, and subsequent public offerings of its common stock. |
2. LIQUIDITY AND MANAGEMENT PLA
2. LIQUIDITY AND MANAGEMENT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
LIQUIDITY AND MANAGEMENT PLANS | 2. LIQUIDITY AND MANAGEMENT PLANS At December 31, 2020, the Company had cash and cash equivalents of approximately $37.9 million and working capital of approximately $36.6 million. The Company has generated only limited revenues since inception and has incurred recurring operating losses. The Company’s operating plans for the next 12 months include increased research and development headcount 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 generated only limited revenue from its 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. The Company’s future capital requirements and the adequacy of its available funds will depend on many factors, including the Company’s ability to successfully commercialize its technology, competing technological and market developments, and the need to enter into collaborations with other companies or acquire technologies to enhance or complement its current offerings. If the Company is unable to secure additional capital, it may be required to curtail its research and development initiatives and take additional measures to reduce costs in order to conserve its cash. |
3. SUMMARY OF SIGNIFICANT ACCOU
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
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. 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, 2020, one customer represented 100% of revenue and, no customer represented a balance of accounts receivable at December 31, 2020. During the year ended December 31, 2019, six customers each represented approximately 26%, 19%, 16%, 16%, 13% and 9% of revenues. No customers represented a balance of accounts receivable at December 31, 2019. 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, 2020 and 2019, 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, 2020 and 2019, there were no allowances for doubtful accounts since the balances were either collected during the year or 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. 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 from 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 grant of rights in these integration license agreements is not distinct from the integration service. Accordingly, revenue from integration license agreements is recognized as the service is 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. Leases The Company accounts for leases in accordance with the authoritative guidance. On January 1, 2019, the Company adopted the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No 2016-02, Leases 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. 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, 2020 or 2019. 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, borrowing rates used for lease accounting and valuation allowance against deferred tax assets. 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 June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Recent accounting standards The Company has evaluated all issued but not yet effective accounting pronouncements and determined that they are either immaterial or not relevant to the Company except as noted below. In December 2019, the FASB issued ASU No. 2019-12, Simplifying Accounting for Income Taxes Income taxes In August 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). . |
4. REVENUE
4. REVENUE | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | 4. REVENUE The Company recognizes revenue in accordance with ASC 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. Revenue is recognized when the Company 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 agreements over a period of time. The following table provides information about disaggregated revenue by primary geographical markets and timing of revenue recognition for the years ended December 31, 2020 and 2019 (in thousands): Year Ended December 31, 2020 2019 Primary geographic markets North America $ 62 $ 188 Europe – 187 Asia Pacific – 158 Total $ 62 $ 533 Timing of revenue recognition Products and services transferred at a point in time $ 62 $ 378 Products and services transferred over time – 155 Total $ 62 $ 533 Unbilled contracts receivable and deferred revenue : Timing of revenue recognition may differ from the timing of invoicing customers. Accounts receivable includes amounts billed and currently due from customers. Unbilled contracts receivable represents unbilled amounts expected to be received from customers in future periods, where the revenue recognized to date exceeds the amount billed, and the right to receive payment is subject to the underlying contractual terms. Unbilled contracts receivable amounts may not exceed their net realizable value and are classified as long-term assets if the payments are expected to be received more than one year from the reporting date. The Company records deferred revenue when revenue will be recognized after invoicing. During the year ended December 31, 2020, the Company recognized approximately $37,000 of revenue that was included in deferred revenue as of December 31, 2019. |
5. BASIC AND DILUTED LOSS PER S
5. BASIC AND DILUTED LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 Stock Options 3,446 2,934 Unvested restricted stock 642 486 Warrants 320 765 4,408 4,185 |
6. PROPERTY AND EQUIPMENT
6. PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 6. PROPERTY AND EQUIPMENT Property and equipment consisted of the following (in thousands): December 31, 2020 2019 Laboratory equipment $ 163 $ 123 Computer equipment 111 91 Furniture and fixtures 64 1 Software 6 6 Leasehold improvements 6 – Office equipment 4 4 354 225 Less: Accumulated depreciation and amortization (201 ) (162 ) $ 153 $ 63 Depreciation and amortization expense relating to property and equipment was approximately $41,000 and $44,000 for the years ended December 31, 2020 and 2019, 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. Leasehold improvements are amortized over the remaining life of the lease. |
7. LEASES
7. LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 7. LEASES The Company leases corporate office space in Los Gatos, California. In August 2020, the Company and its landlord amended the lease of this office. This amendment extends the expiration date of the lease from January 2021 to January 2026 and increases the space from 3,396 square feet to 4,101 square feet. Under ASC 842, the lease amendment was treated as a separate lease for the new space and a modification of the lease for the original space. An additional right-of-use (“ROU”) asset and lease liability of approximately $681,000 were recorded during the year ended December 31, 2020. The lease liability is based on the present value of the minimum lease payments, discounted using an estimated incremental borrowing rate of 5.5%. The lease contains escalating payments on the anniversary of the original commencement which are included in the measurement of the initial lease liability. Additional payments based on a change in the Company’s share of the operating expenses, including property taxes and insurance, are recorded as a period expense when incurred. Lease expense for operating leases consists of the lease payments recognized on a straight-line basis over the lease term. In January 2021, the Company recorded an additional ROU asset and corresponding liability of approximately $144,000 when the additional space became available for use. The components of operating lease costs were as follows (in thousands): Year Ended December 31, 2020 2019 Fixed lease costs $ 123 $ 108 Variable lease costs 36 53 Short term lease costs 39 31 Total operating costs $ 198 $ 192 Future minimum payments under non-cancellable leases as of December 31, 2020 were as follows (in thousands) and do not include the additional space that the Company took use of in January 2021: For the Year Ended December 31, Amount 2021 $ 108 2022 166 2023 170 2024 & thereafter 371 Total future minimum lease payments 815 Less imputed interest (123 ) $ 692 The below table provides supplemental information and non-cash activity related to the Company’s operating leases are as follows (in thousands): Year Ended December 31, 2020 2019 Operating cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ – $ 161 Non-cash activity: Right-of-use assets obtained in exchange for the lease obligations $ 681 $ 295 In October 2016, the Company entered into lease agreement for approximately 200 square feet of office space in Cambridge, Massachusetts. The lease, with current monthly payments of $2,942 per month, commenced on October 24, 2016. Because the lease is month to month and can be cancelled with a 30-day notice, the future lease payments are not included in the Company’s lease accounting under ASC Topic 842. In October 2019, the Company entered into an agreement to lease a tool for use in the development of the Company’s technology. The lease is for five years at $150,000 per month. A prepayment of $450,000 was made in the year ended December 31, 2020, this payment represents the final three payments under the lease and is recorded as a long-term prepaid until the lease commencement, at which time it will be record in accordance with ASC 842. |
8. COMMITMENTS AND CONTINGENCIE
8. COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 8. COMMITMENTS AND CONTINGENCIES 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. The Company is not party to any material litigation as of December 31, 2020 or through the date these financial statements have been issued. |
9. STOCKHOLDERS' EQUITY
9. STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | 9. STOCKHOLDERS’ EQUITY The Company is authorized to issue to up 2,500,000 shares of preferred stock, $.001 par value. As of December 31, 2020, and 2019, 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. On May 29, 2019, the Company closed a registered direct offering of 1,675,000 shares of common stock at a price of $4.00 per share. The Company received approximately $6.4 million of net proceeds after deducting commissions and other offering expenses. On May 15, 2020, the Company closed an underwritten public offering of 2,024,000 shares of common stock at a public offering price of $5.00 per share, resulting in approximately $9.4 million of net proceeds after deducting underwriting commission and other offering expenses. On September 2, 2020, Atomera entered into an Equity Distribution Agreement with Craig-Hallum Capital Group LLC, as agent, under which the Company may offer and sell, from time to time at its sole discretion, shares of our common stock having an aggregate offering price of up to $25.0 million in an “at-the-market” or ATM offering, to or through the agent. As of December 31, 2020, 2,206,895 shares had been sold at an average price of approximately $11.22, resulting in approximately $24.0 million of net proceeds to the Company after deducting commissions and other offering expenses. As of December 31, 2020, the Company has reserved approximately 3.8 million shares of common stock for issuance pursuant to outstanding stock options and warrants. |
10. WARRANTS
10. WARRANTS | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
WARRANTS | 10. 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, 2020 or 2019. A summary of warrant activity for the year ended December 31, 2020 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, 2020 765 $ 5.75 Exercised (435 ) $ 3.09 Expired (10 ) $ 0.15 Outstanding and exercisable at December 31, 2020 320 $ 9.47 0.6 The warrants outstanding at December 31, 2020 had an intrinsic value of approximately $2.1 million based on a per-share stock price of $16.09 as of December 31, 2020. On March 17, 2020, 196,602 warrants with an exercise price of $3.75 were set to expire. Prior to the expiration, the Company entered into an agreement with the warrant holders, whereby it modified the terms of the warrants to extend the expiration date until September 17, 2020 in exchange for the removal of a cashless exercise provision. No other terms were modified. Due to this modification, the Company incurred a modification expense of approximately $139,000 that is included in general and administrative expenses on the Statement of Operations for the year ended December 31, 2020. All of the modified warrants were exercised on August 6, 2020. On December 3, 2020, the Company modified 12,200 warrants with an original exercise price of $9.375 and an expiration date August 4, 2021. The warrants were modified to decrease the exercise price to $7.50 and change the expiration date to December 31, 2020. The warrants were then exercised December 4, 2020. Due to the modification, the Company incurred a modification expense of approximately $2,000 that is included in general and administrative expenses on the Statement of Operations for the year ended December 31, 2020. In December 2020, a warrant for 37,562 shares was presented for cashless exercise resulting in the issuance of 13,165 shares of common stock. |
11. STOCK BASED COMPENSATION
11. STOCK BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | 11. 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, 2020, awards aggregate of 2,669,760 shares of common stock had been granted under the 2017 Plan and total of 1,080,240 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, 2020 and 2019 for stock options and restricted stock (in thousands): Year Ended December 31, 2020 2019 Research and development $ 1,148 $ 839 General and administrative 1,741 1,956 Selling and Marketing 152 134 $ 3,041 $ 2,929 As of December 31, 2020, there was approximately $4.9 million of total unrecognized compensation expense related to non-vested share-based compensation arrangements that are expected to vest. This cost is expected to be recognized over a weighted-average period of 2.5 years. The 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 fair value of employee stock options issued was estimated using the following weighted-average assumptions: Year Ended December 31, 2020 2019 Weighted average exercise price: $ 4.20 $ 3.90 Weighted average grant date fair value per share: $ 2.80 $ 2.50 Assumptions: Expected volatility 77.8% 70.6% Weighted average expected term (in years) 6.0 6.0 Risk-free interest rate 0.71% 2.54% 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, 2020 (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, 2020 2,934 $ 6.36 – – Granted 664 $ 4.20 – – Exercised (152 ) $ 5.83 – – Expired – $ – – – Outstanding at December 31, 2020 3,446 $ 5.97 6.5 $ 35,001 Exercisable at December 31, 2020 2,518 $ 6.55 5.8 $ 24,155 During the year ended December 31, 2020, the Company granted options under its 2017 Plan purchase 664,128 shares of its common stock to its employees. The fair value of these options was approximately $1.9 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, 2020 (in thousands except per share data): Number of Shares Weighted-Average Grant Date Fair Value Outstanding at January 1, 2020 486 $ 4.50 Granted 463 $ 4.43 Vested (307 ) $ 4.53 Outstanding non-vested shares at December 31, 2020 642 $ 4.43 |
12. 401K PLAN
12. 401K PLAN | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
401K PLAN | 12. 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 the years ended December 31, 2020 and 2019, there were no matching contributions made by the Company. |
13. INCOME TAXES
13. INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 13. INCOME TAXES The loss before provision for income taxes consisted of the following (in thousands): Year Ended December 31, 2020 2019 Domestic $ (14,878 ) $ (13,300 ) International – – Total $ (14,878 ) $ (13,300 ) The Company had no income tax expense due to operating losses incurred for the years ended December 31, 2020 and 2019. 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 $3.8 million during the year ended December 31, 2020 and increased by approximately $2.6 million during the year ended December 31, 2019. The Company’s deferred tax assets are as follows (in thousands): Year Ended December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 24,125 $ 20,583 Tax credit 1,889 1,462 Fixed assets and intangibles 1,144 1,312 Stock compensation 1,321 1,304 Accruals and other 151 218 Lease liability 148 33 Total deferred tax assets 28,778 24,912 Deferred tax liabilities: Right of use asset (151 ) (35 ) Total deferred tax assets (151 ) (35 ) Valuation allowance (28,627 ) (24,877 ) Net deferred tax asset $ – $ – Net operating losses and tax credit carryforwards as of December 31, 2020, are as follows (in thousands): Amount Expiration in years Net operating losses, federal $ 40,419 No expiration Net operating losses, federal $ 65,802 2027-2037 Net operating losses, state $ 30,216 2030-2039 Tax credits, federal $ 1,731 2027-2039 Tax credits, state $ 425 No expiration Tax credits, state $ 1,000 2022-2035 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, 2020 2019 Statutory rate 21.00 % 21.00 % State rate 2.17 % 1.90 % Non-deductible items 0.84 % (1.34 )% Change in valuation allowance (25.29 )% (22.10 )% Change in tax credits 1.28 % 0.54 % 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, 2020 and 2019, 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 since inception (2007). 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, 2020 and 2019 (in thousands): 2020 2019 January 1 – unrecognized tax benefits $ 865 $ 732 Increases (decreases) – prior year tax positions – – Increases – current year tax positions 205 133 December 31 - unrecognized tax benefits $ 1,070 $ 865 The following table summarizes the activity in the Company’s Valuation Allowance and Qualifying Accounts for the years ended December 31, 2020 and 2019 (in thousands): Balance at Beginning of Year Additions Deductions Balance at End of Year Deferred tax assets valuation allowance Year ended December 31, 2020 $ 24,877 $ 3,951 $ 201 $ 28,627 Year ended December 31, 2019 $ 22,276 $ 3,123 $ 522 $ 24,877 |
14. SUBSEQUENT EVENTS
14. SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 14. SUBSEQUENT EVENTS On January 5, 2021 the Company announced the completion of its ATM offering after an additional 14,680 shares were sold for an average price per share of $16.97 in January 2021 resulting in additional net proceeds of approximately $243,000. In January 2021, warrants for 317,488 shares were presented for cashless exercises resulting in the issuance of 223,487 shares of common stock. |
3. SUMMARY OF SIGNIFICANT ACC_2
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 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. |
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, 2020, one customer represented 100% of revenue and, no customer represented a balance of accounts receivable at December 31, 2020. During the year ended December 31, 2019, six customers each represented approximately 26%, 19%, 16%, 16%, 13% and 9% of revenues. No customers represented a balance of accounts receivable at December 31, 2019. 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, 2020 and 2019, 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, 2020 and 2019, there were no allowances for doubtful accounts since the balances were either collected during the year or 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. 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 from 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 grant of rights in these integration license agreements is not distinct from the integration service. Accordingly, revenue from integration license agreements is recognized as the service is 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. |
Leases | Leases The Company accounts for leases in accordance with the authoritative guidance. On January 1, 2019, the Company adopted the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No 2016-02, Leases |
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. |
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, 2020 or 2019. 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, borrowing rates used for lease accounting and valuation allowance against deferred tax assets. 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. |
Adoption of recent accounting standards | Adoption of recent accounting standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Recent accounting standards | Recent accounting standards The Company has evaluated all issued but not yet effective accounting pronouncements and determined that they are either immaterial or not relevant to the Company except as noted below. In December 2019, the FASB issued ASU No. 2019-12, Simplifying Accounting for Income Taxes Income taxes In August 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). . |
4. REVENUE (Tables)
4. REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from contracts | The following table provides information about disaggregated revenue by primary geographical markets and timing of revenue recognition for the years ended December 31, 2020 and 2019 (in thousands): Year Ended December 31, 2020 2019 Primary geographic markets North America $ 62 $ 188 Europe – 187 Asia Pacific – 158 Total $ 62 $ 533 Timing of revenue recognition Products and services transferred at a point in time $ 62 $ 378 Products and services transferred over time – 155 Total $ 62 $ 533 |
5. BASIC AND DILUTED LOSS PER_2
5. BASIC AND DILUTED LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of potential common stock equivalents not included in the calculation of diluted net loss per common share | 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, 2020 2019 Stock Options 3,446 2,934 Unvested restricted stock 642 486 Warrants 320 765 4,408 4,185 |
6. PROPERTY AND EQUIPMENT (Tabl
6. PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consisted of the following (in thousands): December 31, 2020 2019 Laboratory equipment $ 163 $ 123 Computer equipment 111 91 Furniture and fixtures 64 1 Software 6 6 Leasehold improvements 6 – Office equipment 4 4 354 225 Less: Accumulated depreciation and amortization (201 ) (162 ) $ 153 $ 63 |
7. LEASES (Tables)
7. LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Components of lease costs | The components of operating lease costs were as follows (in thousands): Year Ended December 31, 2020 2019 Fixed lease costs $ 123 $ 108 Variable lease costs 36 53 Short term lease costs 39 31 Total operating costs $ 198 $ 192 |
Schedule of future minimum lease payments | Future minimum payments under non-cancellable leases as of December 31, 2020 were as follows (in thousands) and do not include the additional space that the Company took use of in January 2021: For the Year Ended December 31, Amount 2021 $ 108 2022 166 2023 170 2024 & thereafter 371 Total future minimum lease payments 815 Less imputed interest (123 ) $ 692 |
Supplemental non-cash actiity related to operating leases | The below table provides supplemental information and non-cash activity related to the Company’s operating leases are as follows (in thousands): Year Ended December 31, 2020 2019 Operating cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ – $ 161 Non-cash activity: Right-of-use assets obtained in exchange for the lease obligations $ 681 $ 295 |
10. WARRANTS (Tables)
10. WARRANTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of warrant activity | . A summary of warrant activity for the year ended December 31, 2020 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, 2020 765 $ 5.75 Exercised (435 ) $ 3.09 Expired (10 ) $ 0.15 Outstanding and exercisable at December 31, 2020 320 $ 9.47 0.6 |
11. STOCK BASED COMPENSATION (T
11. STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expense | The following table summarizes the stock-based compensation expense recorded in the Company’s results of operations during the years ended December 31, 2020 and 2019 for stock options and restricted stock (in thousands): Year Ended December 31, 2020 2019 Research and development $ 1,148 $ 839 General and administrative 1,741 1,956 Selling and Marketing 152 134 $ 3,041 $ 2,929 |
Schedule of weighted-average assumptions | The fair value of employee stock options issued was estimated using the following weighted-average assumptions: Year Ended December 31, 2020 2019 Weighted average exercise price: $ 4.20 $ 3.90 Weighted average grant date fair value per share: $ 2.80 $ 2.50 Assumptions: Expected volatility 77.8% 70.6% Weighted average expected term (in years) 6.0 6.0 Risk-free interest rate 0.71% 2.54% Expected dividend yield 0.0% 0.0% |
Schedule of stock option activity | The following table summarizes stock option activity during the year ended December 31, 2020 (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, 2020 2,934 $ 6.36 – – Granted 664 $ 4.20 – – Exercised (152 ) $ 5.83 – – Expired – $ – – – Outstanding at December 31, 2020 3,446 $ 5.97 6.5 $ 35,001 Exercisable at December 31, 2020 2,518 $ 6.55 5.8 $ 24,155 |
Schedule of restricted stock option activity | The following table summarizes all restricted stock activity during the year ended December 31, 2020 (in thousands except per share data): Number of Shares Weighted-Average Grant Date Fair Value Outstanding at January 1, 2020 486 $ 4.50 Granted 463 $ 4.43 Vested (307 ) $ 4.53 Outstanding non-vested shares at December 31, 2020 642 $ 4.43 |
13. INCOME TAXES (Tables)
13. INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Net income/(loss) before provision for income taxes table | The loss before provision for income taxes consisted of the following (in thousands): Year Ended December 31, 2020 2019 Domestic $ (14,878 ) $ (13,300 ) International – – Total $ (14,878 ) $ (13,300 ) |
Schedule of deferred tax assets | The Company’s deferred tax assets are as follows (in thousands): Year Ended December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 24,125 $ 20,583 Tax credit 1,889 1,462 Fixed assets and intangibles 1,144 1,312 Stock compensation 1,321 1,304 Accruals and other 151 218 Lease liability 148 33 Total deferred tax assets 28,778 24,912 Deferred tax liabilities: Right of use asset (151 ) (35 ) Total deferred tax assets (151 ) (35 ) Valuation allowance (28,627 ) (24,877 ) Net deferred tax asset $ – $ – |
Schedule of net operating losses | Net operating losses and tax credit carryforwards as of December 31, 2020, are as follows (in thousands): Amount Expiration in years Net operating losses, federal $ 40,419 No expiration Net operating losses, federal $ 65,802 2027-2037 Net operating losses, state $ 30,216 2030-2039 Tax credits, federal $ 1,731 2027-2039 Tax credits, state $ 425 No expiration Tax credits, state $ 1,000 2022-2035 |
Schedule of effective income tax rates | 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, 2020 2019 Statutory rate 21.00 % 21.00 % State rate 2.17 % 1.90 % Non-deductible items 0.84 % (1.34 )% Change in valuation allowance (25.29 )% (22.10 )% Change in tax credits 1.28 % 0.54 % Total – – |
Schedule of unrecognized tax benefits | The following table summarizes the activity related to the Company’s gross unrecognized tax benefits for the years ended December 31, 2020 and 2019 (in thousands): 2020 2019 January 1 – unrecognized tax benefits $ 865 $ 732 Increases (decreases) – prior year tax positions – – Increases – current year tax positions 205 133 December 31 - unrecognized tax benefits $ 1,070 $ 865 |
Schedule of activity in the Valuation Allowance and Qualifying Accounts | The following table summarizes the activity in the Company’s Valuation Allowance and Qualifying Accounts for the years ended December 31, 2020 and 2019 (in thousands): Balance at Beginning of Year Additions Deductions Balance at End of Year Deferred tax assets valuation allowance Year ended December 31, 2020 $ 24,877 $ 3,951 $ 201 $ 28,627 Year ended December 31, 2019 $ 22,276 $ 3,123 $ 522 $ 24,877 |
2. LIQUIDITY AND MANAGEMENT P_2
2. LIQUIDITY AND MANAGEMENT PLANS (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cash and cash equivalents | $ 37,942 | $ 14,871 | $ 18,933 |
Working capital | $ 36,600 |
3. SUMMARY OF SIGNIFICANT ACC_3
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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] | ||
Concentration risk percentage | 100.00% | |
Sales Revenue Net [Member] | Customer 1 [Member] | ||
Concentration risk percentage | 26.00% | |
Sales Revenue Net [Member] | Customer 2 [Member] | ||
Concentration risk percentage | 19.00% | |
Sales Revenue Net [Member] | Customer 3 [Member] | ||
Concentration risk percentage | 16.00% | |
Sales Revenue Net [Member] | Customer 4 [Member] | ||
Concentration risk percentage | 16.00% | |
Sales Revenue Net [Member] | Customer 5 [Member] | ||
Concentration risk percentage | 13.00% | |
Sales Revenue Net [Member] | Customer 6 [Member] | ||
Concentration risk percentage | 9.00% | |
Accounts Receivable [Member] | ||
Concentration risk percentage | 0.00% | 0.00% |
4. REVENUE (Details)
4. REVENUE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | $ 62 | $ 533 |
Transferred at Point in Time [Member] | ||
Revenue | 62 | 378 |
Transferred Over Time [Member] | ||
Revenue | 0 | 155 |
North America [Member] | ||
Revenue | 62 | 188 |
Europe [Member] | ||
Revenue | 0 | 187 |
Asia Pacific [Member] | ||
Revenue | $ 0 | $ 158 |
4. REVENUE (Details Narrative)
4. REVENUE (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized that was previously included in deferred revenue | $ 37,000 |
5. BASIC AND DILUTED LOSS PER_3
5. BASIC AND DILUTED LOSS PER SHARE (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Potential common stock equivalents | 4,408 | 4,185 |
Stock Options [Member] | ||
Potential common stock equivalents | 3,446 | 2,934 |
Unvested Restricted Stock [Member] | ||
Potential common stock equivalents | 642 | 486 |
Warrants [Member] | ||
Potential common stock equivalents | 320 | 765 |
6. PROPERTY AND EQUIPMENT (Deta
6. PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property and equipment, gross | $ 354 | $ 225 |
Accumulated depreciation and amortization | (201) | (162) |
Property and equipment, net | 153 | 63 |
Laboratory equipment [Member] | ||
Property and equipment, gross | 163 | 123 |
Computer Equipment [Member] | ||
Property and equipment, gross | 111 | 91 |
Furniture and Fixtures [Member] | ||
Property and equipment, gross | 64 | 1 |
Software [Member] | ||
Property and equipment, gross | 6 | 6 |
Leasehold improvements [Member] | ||
Property and equipment, gross | 6 | 0 |
Office Equipment [Member] | ||
Property and equipment, gross | $ 4 | $ 4 |
6. PROPERTY AND EQUIPMENT (De_2
6. PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 41 | $ 44 |
Estimated useful lives of property | 3-5 years | |
Estimated useful live of software | 3 years |
7. LEASES (Details - Lease cost
7. LEASES (Details - Lease costs) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Fixed lease costs | $ 123 | $ 108 |
Variable lease costs | 36 | 53 |
Short term lease costs | 39 | 31 |
Total operating costs | $ 198 | $ 192 |
7. LEASES (Details - Minimum le
7. LEASES (Details - Minimum lease payments) $ in Thousands | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 108 |
2022 | 166 |
2023 | 170 |
2024 & thereafter | 371 |
Total future minimum lease payments | 815 |
Less imputed interest | (123) |
Total lease liability | $ 692 |
7. LEASES (Details - Cash flow
7. LEASES (Details - Cash flow effect) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating cash flow information: | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 0 | $ 161 |
Non-cash activity: | ||
Right-of-use assets obtained in exchange for the lease obligations | $ 681 | $ 295 |
7. LEASES (Details Narrative)
7. LEASES (Details Narrative) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2016USD ($)ft² | Dec. 31, 2020USD ($) | |
Operating lease right-of-use asset | $ 161 | $ 705 | |
Operating lease liability | $ 692 | ||
Incremental borrowing rate | 5.50% | ||
Additional right-of-use assets | $ 144 | ||
Additional lease liability | 144 | ||
Long-term prepaid rent | 0 | $ 450 | |
Lease office space | ft² | 200 | ||
Monthly payments | $ 150 | $ 2,942 | |
Option to terminate lease | Cancelled with a 30-day notice | ||
Lease term | 5 years | ||
CALIFORNIA | |||
Operating lease right-of-use asset | $ 681 | ||
Operating lease liability | $ 681 |
9. STOCKHOLDERS' EQUITY (Detail
9. STOCKHOLDERS' EQUITY (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Proceeds from issuance of common stock | $ 0 | $ 6,397 |
Shares reserved for options and warrants | 3,800,000 | |
Equity Distribution Agreement [Member] | Craig Hallum Capital Group LLC [Member] | ||
Stock issued new, shares | 2,206,895 | |
Proceeds from issuance of common stock | $ 24,000 | |
Stock price | $ 11.22 | |
Maximum offering price | $ 25,000 | |
Public Offering [Member] | ||
Stock issued new, shares | 2,024,000 | |
Proceeds from issuance of common stock | $ 9,400 | |
Stock price | $ 5 | |
Direct Offering [Member] | ||
Stock issued new, shares | 1,675,000 | |
Proceeds from issuance of common stock | $ 6,400 | |
Stock price | $ 4 |
10. WARRANTS (Details)
10. WARRANTS (Details) - Warrants [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Warrants outstanding, beginning balance | shares | 765 |
Warrants exercised | shares | (435) |
Warrant expired | shares | (10) |
Warrants outstanding, ending balance | shares | 320 |
Weighted-average exercise price, warrants outstanding, beginning balance | $ / shares | $ 5.75 |
Weighted-average exercise price, warrants exercised | $ / shares | 3.09 |
Weighted-average exercise price, warrants expired | $ / shares | 0.15 |
Weighted-average exercise price, warrants outstanding, ending balance | $ / shares | $ 9.47 |
Weighted-average remaining contractual term | 7 months 6 days |
10. WARRANTS (Details Narrative
10. WARRANTS (Details Narrative) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)$ / shares | |
Warrant modification expense | $ 139 |
Warrants [Member] | |
Intrinsic value | $ 2,100 |
Stock price | $ / shares | $ 16.09 |
11. STOCK BASED COMPENSATION (D
11. STOCK BASED COMPENSATION (Details - Compensation Expense) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Allocated stock-based compensation | $ 3,041 | $ 2,929 |
Research and Development [Member] | ||
Allocated stock-based compensation | 1,148 | 839 |
General and Administrative [Member] | ||
Allocated stock-based compensation | 1,741 | 1,956 |
Selling and Marketing [Member] | ||
Allocated stock-based compensation | $ 152 | $ 134 |
11. STOCK BASED COMPENSATION _2
11. STOCK BASED COMPENSATION (Details Assumptions) - Options [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted average exercise price | $ 4.20 | $ 3.90 |
Weighted average grant date fair value | $ 2.80 | $ 2.50 |
Expected volatility | 77.80% | 70.60% |
Weighted average expected term (in years) | 6 years | 6 years |
Risk-free interest rate | 0.71% | 2.54% |
Expected dividend yield | 0.00% | 0.00% |
11. STOCK BASED COMPENSATION _3
11. STOCK BASED COMPENSATION (Details - Stock Option Activity) - Options [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding, beginning balance | shares | 2,934 |
Options granted | shares | 664 |
Options exercised | shares | (152) |
Options expired | shares | 0 |
Options outstanding, ending balance | shares | 3,446 |
Options exercisable | shares | 2,518 |
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 | $ 6.36 |
Weighted average exercise price, options granted | $ / shares | 4.20 |
Weighted average exercise price, options exercised | $ / shares | 5.83 |
Weighted average exercise price, options expired | $ / shares | .00 |
Weighted average exercise price, options outstanding, ending balance | $ / shares | 5.97 |
Weighted average exercise price, options exercisable | $ / shares | $ 6.55 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted-Average Remaining Contractual Term [Roll Forward] | |
Weighted average remaining contractual term, options outstanding | 6 years 6 months |
Weighted average remaining contractual term, options exercisable | 5 years 9 months 18 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Intrinsic Value [Roll Forward] | |
Intrinsic value, options outstanding ending balance | $ | $ 35,001 |
Intrinsic value, options exercisable | $ | $ 24,155 |
11. STOCK BASED COMPENSATION _4
11. STOCK BASED COMPENSATION (Details - Restricted stock) - Restricted Stock [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Number of shares | |
Restricted stock outstanding, beginning balance | shares | 486 |
Restricted stock granted | shares | 463 |
Restricted stock vested | shares | (307) |
Restricted stock cancelled | shares | 642 |
Weighted-Average Grant Date Fair Value | |
Restricted stock outstanding, beginning balance | $ / shares | $ 4.50 |
Restricted stock granted | $ / shares | 4.43 |
Restricted stock vested | $ / shares | 4.53 |
Restricted stock outstanding, ending balance | $ / shares | $ 4.43 |
11. STOCK BASED COMPENSATION _5
11. STOCK BASED COMPENSATION (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Unrecognized compensation expense | $ 4,900 | |
Unrecognized compensation weighted average period | 2 years 6 months | |
Options [Member] | ||
Options outstanding | 3,446,000 | 2,934,000 |
Options granted | 664,000 | |
Fair value of options granted | $ 1,900 | |
2017 Plan [Member] | ||
Shares authorized for issuance | 3,750,000 | |
Options granted | 2,669,760 | |
Remaining shares available for grant | 1,080,240 |
12. 401K PLAN (Details Narrativ
12. 401K PLAN (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Company contributions to pension plan | $ 0 | $ 0 |
13. INCOME TAXES (Details - Net
13. INCOME TAXES (Details - Net loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net loss before provision for income taxes | $ (14,878) | $ (13,300) |
Domestic [Member] | ||
Net loss before provision for income taxes | (14,878) | (13,300) |
International [Member] | ||
Net loss before provision for income taxes | $ 0 | $ 0 |
13. INCOME TAXES (Details - Def
13. INCOME TAXES (Details - Deferred tax assets) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | |||
Net operating loss carryforwards | $ 24,125 | $ 20,583 | |
Tax credit | 1,889 | 1,462 | |
Fixed assets and intangibles | 1,144 | 1,312 | |
Stock compensation | 1,321 | 1,304 | |
Accruals and other | 151 | 218 | |
Lease liability | 148 | 33 | |
Total deferred tax assets | 28,778 | 24,912 | |
Deferred tax liabilities: | |||
Right of use asset | (151) | (35) | |
Total deferred tax assets | (151) | (35) | |
Valuation allowance | (28,627) | (24,877) | $ (22,276) |
Net deferred tax asset | $ 0 | $ 0 |
13. INCOME TAXES (Details - NOL
13. INCOME TAXES (Details - NOL) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Federal [Member] | |
Net operating loss | $ 40,419 |
Net operating loss expiration dates | No expiration |
Tax credits | $ 1,731 |
Tax credits expiration dates | 2027-2039 |
Federal [Member] | |
Net operating loss | $ 65,802 |
Net operating loss expiration dates | 2027-2037 |
State [Member] | |
Net operating loss | $ 30,216 |
Net operating loss expiration dates | 2030-2039 |
Tax credits | $ 425 |
Tax credits expiration dates | No expiration |
State [Member] | |
Tax credits | $ 1,000 |
Tax credits expiration dates | 2022-2035 |
13. INCOME TAXES (Details - Eff
13. INCOME TAXES (Details - Effective rate) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Statutory rate | 21.00% | 21.00% |
State rate | 2.17% | 1.90% |
Non-deductible items | 0.84% | (1.34%) |
Change in valuation allowance | (25.29%) | (22.10%) |
Change in tax credits | 1.28% | 0.54% |
Total | 0.00% | 0.00% |
13. INCOME TAXES (Details - Unr
13. INCOME TAXES (Details - Unrecognized tax benefits) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefit, beginning balance | $ 865 | $ 732 |
Increase - prior year tax position | 0 | 0 |
Increase - current year tax position | 205 | 133 |
Unrecognized tax benefit, ending balance | $ 1,070 | $ 865 |
13. INCOME TAXES (Details - D_2
13. INCOME TAXES (Details - Deferred valuation allowance) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Deferred tax asset valuation allowance, beginning balance | $ 24,877 | $ 22,276 |
Additions | 3,951 | 3,123 |
Deductions | 201 | 522 |
Deferred tax asset valuation allowance, ending balance | $ 28,627 | $ 24,877 |
13. INCOME TAXES (Details Narra
13. INCOME TAXES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Increase in valuation allowance | $ 3,800 | $ 2,600 |