Atomera (ATOM) 10-Q 2 Aug 22 2022 Q2 Quarterly report Financial data

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