Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 28, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-37850 | |
Entity Registrant Name | ATOMERA INCORPORATED | |
Entity Central Index Key | 0001420520 | |
Entity Tax Identification Number | 30-0509586 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 750 University Avenue | |
Entity Address, Address Line Two | Suite 280 | |
Entity Address, City or Town | Los Gatos | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95032 | |
City Area Code | (408) | |
Local Phone Number | 442-5248 | |
Title of 12(b) Security | Common stock: Par value $0.001 | |
Trading Symbol | ATOM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 23,627,796 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 21,838 | $ 28,699 |
Prepaid expenses and other current assets | 650 | 309 |
Total current assets | 22,488 | 29,008 |
Property and equipment, net | 176 | 196 |
Long-term prepaid maintenance and supplies | 91 | 91 |
Security deposit | 14 | 14 |
Operating lease right-of-use asset | 801 | 900 |
Financing lease right-of-use-asset | 5,212 | 5,851 |
Total assets | 28,782 | 36,060 |
Current liabilities: | ||
Accounts payable | 434 | 338 |
Accrued expenses | 213 | 203 |
Accrued payroll related expenses | 510 | 601 |
Current operating lease liability | 243 | 216 |
Current financing lease liability | 1,395 | 1,395 |
Total current liabilities | 2,795 | 2,753 |
Long-term operating lease liability | 658 | 768 |
Long-term financing lease liability | 3,579 | 4,158 |
Total liabilities | 7,032 | 7,679 |
Commitments and contingencies (see Note 10) | ||
Stockholders’ equity: | ||
Preferred stock $0.001 par value, authorized 2,500 shares; none issued and outstanding at June 30, 2022 and December 31, 2021 | 0 | 0 |
Common stock: $0.001 par value, authorized 47,500 shares; 23,457 and 23,207 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively; | 23 | 23 |
Additional paid-in capital | 196,148 | 194,212 |
Accumulated deficit | (174,421) | (165,854) |
Total stockholders’ equity | 21,750 | 28,381 |
Total liabilities and stockholders’ equity | $ 28,782 | $ 36,060 |
Condensed Balance Sheets (Una_2
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
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 | 23,457 | 23,207 |
Common stock, oustanding | 23,457 | 23,207 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 0 | $ 0 | $ 375 | $ 400 |
Cost of revenue | 0 | 0 | (81) | 0 |
Gross margin | 0 | 0 | 294 | 400 |
Operating expenses | ||||
Research and development | 2,433 | 2,069 | 4,772 | 4,298 |
General and administrative | 1,667 | 1,506 | 3,315 | 3,019 |
Selling and marketing | 347 | 137 | 672 | 403 |
Total operating expenses | 4,447 | 3,712 | 8,759 | 7,720 |
Loss from operations | (4,447) | (3,712) | (8,465) | (7,320) |
Other income (expense) | ||||
Interest income | 35 | 3 | 38 | 5 |
Interest expense | (69) | 0 | (140) | 0 |
Total other income (expense), net | (34) | 3 | (102) | 5 |
Net loss before income taxes | (4,481) | (3,709) | (8,567) | (7,315) |
Provision for income taxes | 0 | 17 | 0 | 31 |
Net loss | $ (4,481) | $ (3,726) | $ (8,567) | $ (7,346) |
Net loss per common share, basic | $ (0.20) | $ (0.17) | $ (0.37) | $ (0.33) |
Net loss per common share, diluted | $ (0.20) | $ (0.17) | $ (0.37) | $ (0.33) |
Weighted average number of common shares outstanding, basic | 22,936 | 22,492 | 22,894 | 22,292 |
Weighted average number of common shares outstanding, diluted | 22,936 | 22,492 | 22,894 | 22,292 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 22 | $ 187,463 | $ (150,140) | $ 37,345 |
Beginning balance, shares at Dec. 31, 2020 | 22,375 | |||
Stock-based compensation | 731 | 731 | ||
Stock-based compensation, shares | 71 | |||
At-the-market sale of stock, net of commissions and expenses | 243 | 243 | ||
At-the-market sale of stock, net of commissions and expenses, shares | 14 | |||
Stock option exercise | $ 1 | 2,514 | 2,515 | |
Stock option exercise, shares | 398 | |||
Warrant Exercise | ||||
Warrant Exercise, shares | 223 | |||
Forfeited restricted stock awards | ||||
Forfeited restricted stock awards, shares | (54) | |||
Net loss | (3,620) | (3,620) | ||
Ending balance, value at Mar. 31, 2021 | $ 23 | 190,951 | (153,760) | 37,214 |
Ending balance, shares at Mar. 31, 2021 | 23,027 | |||
Stock-based compensation | 847 | 847 | ||
Stock-based compensation, shares | 18 | |||
Stock option exercise | 354 | 354 | ||
Stock option exercise, shares | 59 | |||
Net loss | (3,726) | (3,726) | ||
Ending balance, value at Jun. 30, 2021 | $ 23 | 192,152 | (157,486) | 34,689 |
Ending balance, shares at Jun. 30, 2021 | 23,104 | |||
Beginning balance, value at Dec. 31, 2021 | $ 23 | 194,212 | (165,854) | 28,381 |
Beginning balance, shares at Dec. 31, 2021 | 23,207 | |||
Stock-based compensation | 726 | 726 | ||
Stock-based compensation, shares | 161 | |||
Stock option exercise | 166 | 166 | ||
Stock option exercise, shares | 25 | |||
Net loss | (4,086) | (4,086) | ||
Ending balance, value at Mar. 31, 2022 | $ 23 | 195,104 | (169,940) | 25,187 |
Ending balance, shares at Mar. 31, 2022 | 23,393 | |||
Beginning balance, value at Dec. 31, 2021 | $ 23 | 194,212 | (165,854) | 28,381 |
Beginning balance, shares at Dec. 31, 2021 | 23,207 | |||
Ending balance, value at Jun. 30, 2022 | $ 23 | 196,148 | (174,421) | 21,750 |
Ending balance, shares at Jun. 30, 2022 | 23,457 | |||
Beginning balance, value at Mar. 31, 2022 | $ 23 | 195,104 | (169,940) | 25,187 |
Beginning balance, shares at Mar. 31, 2022 | 23,393 | |||
Stock-based compensation | 859 | 859 | ||
Stock-based compensation, shares | 33 | |||
At-the-market sale of stock, net of commissions and expenses | 185 | 185 | ||
At-the-market sale of stock, net of commissions and expenses, shares | 31 | |||
Net loss | (4,481) | (4,481) | ||
Ending balance, value at Jun. 30, 2022 | $ 23 | $ 196,148 | $ (174,421) | $ 21,750 |
Ending balance, shares at Jun. 30, 2022 | 23,457 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Loss | $ (8,567) | $ (7,346) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 39 | 26 |
Operating lease right of use asset amortization | 99 | 88 |
Financing lease right of use asset amortization | 638 | 0 |
Stock-based compensation | 1,585 | 1,578 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (341) | (527) |
Accounts payable | 96 | (31) |
Accrued expenses | 10 | (27) |
Accrued payroll expenses | (91) | (383) |
Operating lease liability | (83) | (12) |
Net cash used in operating activities | (6,615) | (6,634) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisition of property and equipment | (19) | (79) |
Net cash used in investing activities | (19) | (79) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from at-the-market sale of stock, net of commissions and expenses | 185 | 243 |
Proceeds from exercise of stock options | 166 | 2,869 |
Payments on principal of financing lease | (578) | 0 |
Net cash provided (used) by financing activities | (227) | 3,112 |
Net decrease in cash and cash equivalents | (6,861) | (3,601) |
Cash and cash equivalents at beginning of period | 28,699 | 37,942 |
Cash and cash equivalents at end of period | 21,838 | 34,341 |
Supplemental information: | ||
Cash paid for interest | 140 | 0 |
Cash paid for taxes | $ 0 | $ 66 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 6 Months Ended |
Jun. 30, 2022 | |
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 an early-stage company, having only recently begun limited revenue-generating activities, and is devoting substantially all its efforts toward technology research and development and to commercially licensing its technology to designers and manufacturers of integrated circuits. |
LIQUIDITY AND MANAGEMENT PLANS
LIQUIDITY AND MANAGEMENT PLANS | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
LIQUIDITY AND MANAGEMENT PLANS | 2. LIQUIDITY AND MANAGEMENT PLANS At June 30, 2022, the Company had cash and cash equivalents of approximately $ 21.8 19.7 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. On May 31, 2022, Atomera entered into an Equity Distribution Agreement with Oppenheimer & Co. Inc. and Craig-Hallum Capital Group LLC, as agents, under which the Company may offer and sell, from time to time at its sole discretion, shares of its $0.001 par value common stock, in “at the market” offerings to or through the agent as its sales agent, having an aggregate offering price of up to $ 50.0 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. 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. The Company’s operating plans for the next 12 months include increased research and development headcount. For capital needs beyond the next 12 months, the Company currently expects to rely on its ATM, but the terms on which any future stock sales will occur will depend on both market conditions and the Company’s business performance, so there can be no guarantee that funds will be available on commercially reasonable terms. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Significant accounting policies There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 15, 2022. Basis of presentation of unaudited condensed financial information The unaudited condensed financial statements of the Company for the three and six months ended June 30, 2022 and 2021 have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. However, such information reflects all adjustments (consisting solely of normal recurring adjustments) which are, in the opinion of management, necessary for the fair presentation of the Company’s financial position and its results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal year. The balance sheet information as of December 31, 2021, was derived from the audited financial statements included in the Company's financial statements as of and for the year ended December 31, 2021, included in the Company’s Annual Report on Form 10-K filed with the SEC on February 15, 2022. These unaudited condensed financial statements should be read in conjunction with that report. Adoption of recent accounting standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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). |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | 4. REVENUE The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) No. 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. The Company generates revenues from engineering service contracts, integration license agreements and joint development agreements. When the Company’s performance obligation is the promise to grant a license, revenue is recognized either at a point in time or over time. The following table provides information about disaggregated revenue by primary geographical markets and timing of revenue recognition (in thousands): Schedule of disaggregated revenue and timing of revenue Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Primary geographic markets North America $ – $ – $ 75 $ – Asia Pacific – – 300 400 Total $ – $ – $ 375 $ 400 Timing of revenue recognition Products and services transferred at a point in time $ – $ – $ 375 $ 400 Products and services transferred over time – – – – Total $ – $ – $ 375 $ 400 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. |
BASIC AND DILUTED LOSS PER SHAR
BASIC AND DILUTED LOSS PER SHARE | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED LOSS PER SHARE | 5. BASIC AND DILUTED LOSS PER SHARE Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the sum of the weighted average number of shares of common stock outstanding and the dilutive common stock equivalent shares outstanding during the period. The Company’s potentially dilutive common stock equivalent shares, which include incremental common shares issuable upon (i) the exercise of outstanding stock options and warrants and (ii) vesting of restricted stock units and restricted stock awards, are only included in the calculation of diluted net loss per share when their effect is dilutive. Since the Company has had net losses for all periods presented, all potentially dilutive securities are anti-dilutive. Accordingly, basic and diluted net loss per share are equal. The following potential common stock equivalents were not included in the calculation of diluted net loss per common share because the inclusion thereof would be anti-dilutive (in thousands): Schedule of anti dilutive shares Six Months Ended June 30, 2022 2021 Stock Options 3,008 3,033 Unvested restricted stock 456 515 Warrants – 2 Total 3,464 3,550 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
LEASES | 6. LEASES The Company accounts for leases over one year under ASC 842. Lease expense for the Company’s operating leases consists of the lease payments recognized on a straight-line basis over the lease term. Expenses for the Company’s financing leases consists of the amortization expenses recognized on a straight-line basis over the lease term and interest expense. The components of lease costs were as follows (in thousands): Components of lease costs Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Financing lease costs: Amortization of ROU assets $ 319 $ – $ 638 $ – Interest on lease liabilities 69 – 140 – Total financing lease costs $ 388 $ – $ 778 $ – Operating lease costs: Fixed lease costs $ 62 $ 62 $ 124 $ 114 Variable lease costs – – – – Short-term lease costs 9 11 20 22 Total operating lease costs $ 71 $ 73 $ 144 $ 136 Future minimum payments under non-cancellable leases as of June 30, 2022 were as follows (in thousands): Schedule of future minimum lease payments For the Year Ended December 31, Financing leases Operating leases Remaining 2022 $ 718 $ 115 2023 1,436 296 2024 1,436 278 2025 1,436 284 2026 & thereafter 478 21 Total future minimum lease payments $ 5,504 $ 994 Less imputed interest (530 ) (93 ) Total lease liability $ 4,974 $ 901 The below table provides supplemental information and non-cash activity related to the Company’s operating and financing leases are as follows (in thousands): Supplemental non-cash activity related to operating leases Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Operating cash flow information: Cash paid for amounts included in the measurement of operating lease liabilities $ 54 $ 36 $ 108 $ 38 Cash paid for amounts included in the measurement of financing liabilities $ 359 $ – $ 718 $ – Non-cash activity: Right-of-use assets obtained in exchange for operating lease obligations $ – $ – $ – $ 382 The weighted average remaining discount rate is 5.25 3.6 4.1 In October 2016, the Company entered into a lease agreement for approximately 200 2,942 |
WARRANTS
WARRANTS | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
WARRANTS | 7. WARRANTS A summary of warrant activity for six months ended June 30, 2022 is as follows (in thousands except per share amounts and contractual term): Schedule of warrant activity Number of Shares Weighted Average Exercise Prices per Share Weighted Average Remaining Contractual Term (In Years) Intrinsic Value Outstanding at January 1, 2022 1 $ 33.75 Forfeited (1 ) $ 33.75 Outstanding and exercisable at June 30, 2022 – $ – – – |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | 8. STOCK BASED COMPENSATION In May 2017, the Company’s shareholders approved its 2017 Stock Incentive Plan (“2017 Plan”) after its 2007 Stock Incentive Plan (“2007 Plan”) had expired in March 2017. The 2017 Plan provides for the grant of non-qualified stock options and incentive stock options to purchase shares of the Company’s common stock and for the grant of restricted and unrestricted shares. The 2017 Plan provides for the issuance of 3,750 The following table summarizes the stock-based compensation expense recorded in the Company’s results of operations during the three and six months ended June 30, 2022 and 2021 for stock options and restricted stock granted under the 2017 Plan and 2007 Plan (in thousands): Schedule of stock-based compensation expense Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Research and development $ 295 $ 267 $ 539 $ 490 General and administrative 499 554 928 1,009 Selling and Marketing 65 26 118 79 Total $ 859 $ 847 $ 1,585 $ 1,578 As of June 30, 2022, there was approximately $ 7.9 2.3 The weighted average grant date fair value per share of the options granted under the Company’s 2017 Plan was $ 10.60 14.78 15.36 The following table summarizes stock option activity during the six months ended June 30, 2022 (in thousands except exercise prices and contractual terms): Schedule of stock option activity Number of Shares Weighted- Average Exercise Prices per Share Weighted- Remaining Contractual Term (In Years) Intrinsic Outstanding at January 1, 2022 2,869 $ 6.64 Granted 175 $ 14.54 Exercised (26 ) $ 6.55 Forfeited (3 ) $ 28.66 Expired (7 ) $ 33.09 Outstanding at June 30, 2022 3,008 $ 7.01 5.6 $ 9,419 Exercisable at June 30, 2022 2,454 $ 6.37 4.9 $ 7,809 During the six months ended June 30, 2022, the Company granted options under the 2017 Plan to purchase approximately 175 1.9 The Company issues restricted stock to employees, directors and consultants and estimates the fair value based on the closing price on the day of grant. The following table summarizes all restricted stock activity during the six months ended June 30, 2022 (in thousands except per share data): Schedule of restricted stock option activity Number of Shares Weighted-Average Grant Date Fair Value per Share Outstanding at January 1, 2022 386 $ 6.75 Granted 194 $ 14.41 Vested (124 ) $ 7.62 Outstanding non-vested shares at June 30, 2022 456 $ 9.77 During the six months ended June 30, 2022 the Company granted approximately 194 2.8 |
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | 9. PROVISION FOR INCOME TAXES The Company recorded a provision for income taxes of approximately $ 17,000 31,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS AND CONTINGENCIES Litigation, Claims and Assessments The Company may be subject to periodic lawsuits, investigations and claims that arise in the ordinary course of business. The Company is not party to any material litigation as of June 30, 2022, or through the date these financial statements have been issued. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 11. SUBSEQUENT EVENTS As of August 1, 2022 the Company has issued an additional 235,050 shares through its ATM offering at an average price per share of $11.33 resulting in additional net proceeds of approximately $2.6 million. Management has evaluated subsequent events and transactions through the date these financial statements were issued. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Significant accounting policies | Significant accounting policies There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 15, 2022. |
Basis of presentation of unaudited condensed financial information | Basis of presentation of unaudited condensed financial information The unaudited condensed financial statements of the Company for the three and six months ended June 30, 2022 and 2021 have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. However, such information reflects all adjustments (consisting solely of normal recurring adjustments) which are, in the opinion of management, necessary for the fair presentation of the Company’s financial position and its results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal year. The balance sheet information as of December 31, 2021, was derived from the audited financial statements included in the Company's financial statements as of and for the year ended December 31, 2021, included in the Company’s Annual Report on Form 10-K filed with the SEC on February 15, 2022. These unaudited condensed financial statements should be read in conjunction with that report. |
Adoption of recent accounting standards | Adoption of recent accounting standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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). |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregated revenue and timing of revenue | Schedule of disaggregated revenue and timing of revenue Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Primary geographic markets North America $ – $ – $ 75 $ – Asia Pacific – – 300 400 Total $ – $ – $ 375 $ 400 Timing of revenue recognition Products and services transferred at a point in time $ – $ – $ 375 $ 400 Products and services transferred over time – – – – Total $ – $ – $ 375 $ 400 |
BASIC AND DILUTED LOSS PER SH_2
BASIC AND DILUTED LOSS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of anti dilutive shares | Schedule of anti dilutive shares Six Months Ended June 30, 2022 2021 Stock Options 3,008 3,033 Unvested restricted stock 456 515 Warrants – 2 Total 3,464 3,550 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
Components of lease costs | Components of lease costs Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Financing lease costs: Amortization of ROU assets $ 319 $ – $ 638 $ – Interest on lease liabilities 69 – 140 – Total financing lease costs $ 388 $ – $ 778 $ – Operating lease costs: Fixed lease costs $ 62 $ 62 $ 124 $ 114 Variable lease costs – – – – Short-term lease costs 9 11 20 22 Total operating lease costs $ 71 $ 73 $ 144 $ 136 |
Schedule of future minimum lease payments | Schedule of future minimum lease payments For the Year Ended December 31, Financing leases Operating leases Remaining 2022 $ 718 $ 115 2023 1,436 296 2024 1,436 278 2025 1,436 284 2026 & thereafter 478 21 Total future minimum lease payments $ 5,504 $ 994 Less imputed interest (530 ) (93 ) Total lease liability $ 4,974 $ 901 |
Supplemental non-cash activity related to operating leases | Supplemental non-cash activity related to operating leases Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Operating cash flow information: Cash paid for amounts included in the measurement of operating lease liabilities $ 54 $ 36 $ 108 $ 38 Cash paid for amounts included in the measurement of financing liabilities $ 359 $ – $ 718 $ – Non-cash activity: Right-of-use assets obtained in exchange for operating lease obligations $ – $ – $ – $ 382 |
WARRANTS (Tables)
WARRANTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of warrant activity | Schedule of warrant activity Number of Shares Weighted Average Exercise Prices per Share Weighted Average Remaining Contractual Term (In Years) Intrinsic Value Outstanding at January 1, 2022 1 $ 33.75 Forfeited (1 ) $ 33.75 Outstanding and exercisable at June 30, 2022 – $ – – – |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expense | Schedule of stock-based compensation expense Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Research and development $ 295 $ 267 $ 539 $ 490 General and administrative 499 554 928 1,009 Selling and Marketing 65 26 118 79 Total $ 859 $ 847 $ 1,585 $ 1,578 |
Schedule of stock option activity | Schedule of stock option activity Number of Shares Weighted- Average Exercise Prices per Share Weighted- Remaining Contractual Term (In Years) Intrinsic Outstanding at January 1, 2022 2,869 $ 6.64 Granted 175 $ 14.54 Exercised (26 ) $ 6.55 Forfeited (3 ) $ 28.66 Expired (7 ) $ 33.09 Outstanding at June 30, 2022 3,008 $ 7.01 5.6 $ 9,419 Exercisable at June 30, 2022 2,454 $ 6.37 4.9 $ 7,809 |
Schedule of restricted stock option activity | Schedule of restricted stock option activity Number of Shares Weighted-Average Grant Date Fair Value per Share Outstanding at January 1, 2022 386 $ 6.75 Granted 194 $ 14.41 Vested (124 ) $ 7.62 Outstanding non-vested shares at June 30, 2022 456 $ 9.77 |
LIQUIDITY AND MANAGEMENT PLANS
LIQUIDITY AND MANAGEMENT PLANS (Details Narrative) - USD ($) $ in Thousands | Jun. 30, 2022 | May 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Cash and Cash Equivalents, at Carrying Value | $ 21,800 | |
Working capital | $ 19,700 | |
Aggregate offering price | $ 50,000 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ 375 | $ 400 |
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 375 | 400 |
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 75 | 0 |
Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ 300 | $ 400 |
BASIC AND DILUTED LOSS PER SH_3
BASIC AND DILUTED LOSS PER SHARE (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common stock equivalents | 3,464 | 3,550 |
Share-Based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common stock equivalents | 3,008 | 3,033 |
Unvested Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common stock equivalents | 456 | 515 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common stock equivalents | 0 | 2 |
LEASES (Details - Lease costs)
LEASES (Details - Lease costs) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Financing lease costs: | ||||
Amortization of ROU assets | $ 319 | $ 0 | $ 638 | $ 0 |
Interest on lease liabilities | 69 | 0 | 140 | 0 |
Total financing lease costs | 388 | 0 | 778 | 0 |
Operating lease costs: | ||||
Fixed lease costs | 62 | 62 | 124 | 114 |
Variable lease costs | 0 | 0 | 0 | 0 |
Short-term lease costs | 9 | 11 | 20 | 22 |
Total operating lease costs | $ 71 | $ 73 | $ 144 | $ 136 |
LEASES (Details - Minimum lease
LEASES (Details - Minimum lease payments) $ in Thousands | Jun. 30, 2022 USD ($) |
Operating Leases [Member] | |
Debt Instrument [Line Items] | |
Remaining 2022 | $ 115 |
2023 | 296 |
2024 | 278 |
2025 | 284 |
2026 & thereafter | 21 |
Total future minimum lease payments | 994 |
Less imputed interest | (93) |
Total lease liability | 901 |
Financing Leases [Member] | |
Debt Instrument [Line Items] | |
Remaining 2022 | 718 |
2023 | 1,436 |
2024 | 1,436 |
2025 | 1,436 |
2026 & thereafter | 478 |
Total future minimum lease payments | 5,504 |
Less imputed interest | (530) |
Total lease liability | $ 4,974 |
LEASES (Details - Cash flow eff
LEASES (Details - Cash flow effect) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating cash flow information: | ||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 54 | $ 36 | $ 108 | $ 38 |
Cash paid for amounts included in the measurement of financing liabilities | 359 | 0 | 718 | 0 |
Non-cash activity: | ||||
Right-of-use assets obtained in exchange for operating lease obligations | $ 0 | $ 0 | $ 0 | $ 382 |
LEASES (Details Narrative)
LEASES (Details Narrative) $ in Thousands | Jun. 30, 2022 USD ($) | Oct. 31, 2016 ft² |
Leases | ||
Operating Lease, Weighted Average Discount Rate, Percent | 5.25% | |
Operating Lease, Weighted Average Remaining Lease Term | 3 years 7 months 6 days | |
Finance Lease, Weighted Average Remaining Lease Term | 4 years 1 month 6 days | |
Office space | ft² | 200 | |
Monthly lease payment | $ | $ 2,942 |
WARRANTS (Details - Warrant act
WARRANTS (Details - Warrant activity) - Warrant [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Warrants outstanding, beginning balance | shares | 1 |
Weighted-average exercise price, warrants outstanding, beginning balance | $ / shares | $ 33.75 |
Forfeited | shares | (1) |
Weighted average exercise prices per share, Forfeited | $ / shares | $ 33.75 |
Warrants outstanding, ending balance | shares | 0 |
Number of shares, exercisable | shares | 0 |
Weighted average exercise price , exercisable | $ / shares | |
Weighted-average exercise price, warrants outstanding, ending balance | $ / shares | |
Intrinsic value outstanding, ending balance | $ | $ 0 |
Intrinsic value, exercisable | $ | $ 0 |
STOCK BASED COMPENSATION (Detai
STOCK BASED COMPENSATION (Details - Compensation Expense) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Allocated stock-based compensation | $ 859 | $ 847 | $ 1,585 | $ 1,578 |
Research and Development Expense [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Allocated stock-based compensation | 295 | 267 | 539 | 490 |
General and Administrative Expense [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Allocated stock-based compensation | 499 | 554 | 928 | 1,009 |
Selling and Marketing [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Allocated stock-based compensation | $ 65 | $ 26 | $ 118 | $ 79 |
STOCK BASED COMPENSATION (Det_2
STOCK BASED COMPENSATION (Details - Stock Option Activity) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Options granted | 175 |
Equity Option [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Options outstanding, beginning balance | 2,869 |
Weighted average exercise price, options outstanding beginning balance | $ / shares | $ 6.64 |
Options granted | 175 |
Weighted average exercise price, options granted | $ / shares | $ 14.54 |
Options exercised | (26) |
Weighted average exercise price, options exercised | $ / shares | $ 6.55 |
Options Forfeited | (3) |
Weighted average exercise price, options Forfeited | $ / shares | $ 28.66 |
Option Expired | (7) |
Weighted average exercsie prices per share expired | $ / shares | $ 33.09 |
Options outstanding, ending balance | 3,008 |
Weighted average exercise price, options outstanding, ending balance | $ / shares | $ 7.01 |
Weighted average remaining contractual term, options outstanding | 5 years 7 months 6 days |
Intrinsic value, options outstanding ending balance | $ | $ 9,419 |
Options exercisable | 2,454 |
Weighted average exercise price, options exercisable | $ / shares | $ 6.37 |
Weighted average remaining contractual term, options exercisable | 4 years 10 months 24 days |
Intrinsic value, options exercisable | $ | $ 7,809 |
STOCK BASED COMPENSATION (Det_3
STOCK BASED COMPENSATION (Details - Restricted stock) shares in Thousands | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Restricted stock granted | 194 |
Restricted Stock [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Restricted stock outstanding, beginning balance | 386 |
Restricted stock outstanding, beginning balance | $ / shares | $ 6.75 |
Restricted stock granted | 194 |
Restricted stock granted | $ / shares | $ 14.41 |
Restricted stock vested | (124) |
Restricted stock vested | $ / shares | $ 7.62 |
Restricted stock outstanding, ending balance | 456 |
Restricted stock outstanding, ending balance | $ / shares | $ 9.77 |
STOCK BASED COMPENSATION (Det_4
STOCK BASED COMPENSATION (Details Narrative) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Options granted | 175 | ||
Restricted stock granted | 194 | ||
Equity Option [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 7,900 | ||
Unrecognized compensation weighted average period | 2 years 3 months 18 days | ||
Weighted average grant date fair value per share | $ 14.78 | $ 10.60 | $ 15.36 |
Options granted | 175 | ||
Fair value of options granted | $ 1,900 | ||
Restricted Stock [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Restricted stock granted | 194 | ||
Fair value of restricted stock granted | $ 2,800 | ||
2017 Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares authorized for issuance | 3,750 |
PROVISION FOR INCOME TAXES (Det
PROVISION FOR INCOME TAXES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income Tax Expense (Benefit) | $ 0 | $ 17 | $ 0 | $ 31 |