Atomera's Losses Widen Amid Revenue Collapse, R&D Spend Soars

TL;DR

**ATOM is burning cash faster than it's making it, and without a significant licensing deal, this stock is a speculative gamble at best.**

AI Summary

Atomera Inc. reported a significant increase in net loss for the nine months ended September 30, 2025, reaching $15.749 million, up from $13.778 million in the same period of 2024. Revenue plummeted to $15,000 for the nine months ended September 30, 2025, a substantial decrease from $112,000 in the prior year, and only $11,000 for the three months ended September 30, 2025, compared to $22,000 in 2024. This decline was coupled with a negative gross margin of $(175,000) for the nine-month period. Operating expenses rose to $16.336 million for the nine months ended September 30, 2025, from $14.466 million in 2024, driven by increased research and development costs of $9.563 million and general and administrative expenses of $6.301 million. The company maintained a cash and cash equivalents balance of $20.322 million as of September 30, 2025, down from $25.778 million at December 31, 2024. Atomera raised approximately $5.2 million in net proceeds from at-the-market stock sales during the nine months ended September 30, 2025, through its 2022 ATM and 2025 ATM facilities, helping to offset cash used in operating activities, which totaled $11.649 million. The company believes it has sufficient capital for at least 12 months.

Why It Matters

Atomera's continued inability to generate meaningful revenue, coupled with escalating operating expenses, signals a critical juncture for investors. The substantial net loss of $15.749 million and a mere $15,000 in revenue for the nine-month period highlight the challenges of commercializing its semiconductor technology. For employees, the long-term viability of the company hinges on successful technology licensing, while customers and the broader market await a breakthrough that justifies the significant R&D investment. The competitive landscape in semiconductor technology is fierce, and Atomera's current financial trajectory suggests it's falling behind without a clear path to profitability.

Risk Assessment

Risk Level: high — Atomera is an early-stage company with "only limited revenue-generating activities" and has incurred "recurring operating losses," totaling a net loss of $15.749 million for the nine months ended September 30, 2025. Its cash and cash equivalents decreased from $25.778 million to $20.322 million, and it used $11.649 million in operating activities during the same period, indicating a high burn rate relative to its cash reserves.

Analyst Insight

Investors should exercise extreme caution and consider this a highly speculative investment. Monitor closely for any significant licensing agreements or substantial revenue generation, as the current financial performance indicates a lack of commercial traction despite ongoing R&D investment. Without a clear path to profitability, the stock faces significant downside risk.

Financial Highlights

debt To Equity

0.15

revenue

$15,000

operating Margin

-109.4%

total Assets

$21,941,000

total Debt

$2,911,000

net Income

($15,749,000)

eps

($0.51)

gross Margin

-1166.7%

cash Position

$20,322,000

revenue Growth

-86.6%

Revenue Breakdown

Key Numbers

• $15.749M — Net Loss (Increased from $13.778M in 2024 for the nine months ended September 30.)
• $15K — Revenue (Decreased significantly from $112K in 2024 for the nine months ended September 30.)
• $(175K) — Gross Margin (Negative for the nine months ended September 30, 2025, compared to $2K in 2024.)
• $16.336M — Total Operating Expenses (Increased from $14.466M in 2024 for the nine months ended September 30.)
• $9.563M — Research and Development Expenses (Increased from $8.206M in 2024 for the nine months ended September 30.)
• $20.322M — Cash and Cash Equivalents (Decreased from $25.778M at December 31, 2024.)
• $11.649M — Net Cash Used in Operating Activities (Increased from $10.208M in 2024 for the nine months ended September 30.)
• $5.2M — Net Proceeds from ATM Stock Sales (Raised during the nine months ended September 30, 2025.)
• 31,510 — Shares Issued and Outstanding (As of September 30, 2025, up from 30,540 at December 31, 2024, indicating dilution.)
• $18.1M — Working Capital (As of September 30, 2025.)

Key Players & Entities

• Atomera Inc. (company) — registrant
• Oppenheimer & Co. Inc. (company) — agent for 2022 ATM
• Craig-Hallum Capital Group LLC (company) — agent for 2022 ATM and 2025 ATM
• Nasdaq Capital Market (regulator) — exchange where common stock is registered
• Securities and Exchange Commission (regulator) — filing oversight
• Financial Accounting Standards Board (regulator) — issuer of accounting standards
• $20.3 million (dollar_amount) — cash and cash equivalents as of September 30, 2025
• $15.749 million (dollar_amount) — net loss for the nine months ended September 30, 2025
• $15,000 (dollar_amount) — revenue for the nine months ended September 30, 2025
• $5.2 million (dollar_amount) — net proceeds from at-the-market stock sales for the nine months ended September 30, 2025

FAQ

Risk Factors

• Increasing Net Loss and Negative Gross Margin [high — financial]: The company reported a net loss of $15.749 million for the nine months ended September 30, 2025, an increase from $13.778 million in the prior year. Furthermore, the gross margin turned negative at $(175,000) for the same period, indicating that the cost of revenue exceeded revenue generated.
• Declining Revenue and High Operating Expenses [high — financial]: Revenue has plummeted to $15,000 for the nine months ended September 30, 2025, down from $112,000 in 2024. Concurrently, total operating expenses increased to $16.336 million from $14.466 million, driven by higher R&D and G&A costs.
• Cash Burn and Reliance on Stock Sales [medium — financial]: Net cash used in operating activities was $11.649 million for the nine months ended September 30, 2025. The company raised $5.2 million in net proceeds from ATM stock sales to offset this burn, but cash and cash equivalents decreased to $20.322 million from $25.778 million.
• Dependence on Future Product Success [high — operational]: Atomera's business model relies heavily on the successful development and commercialization of its proprietary materials engineering technology. Delays or failures in achieving technological milestones or market adoption could significantly impact future revenue and profitability.
• Dilution from Stock Issuances [medium — financial]: The company issued additional shares, increasing shares outstanding to 31,510 as of September 30, 2025, from 30,540 at December 31, 2024. This dilution, often a result of funding operations through stock sales, can negatively impact existing shareholders.

Industry Context

Atomera operates in the semiconductor materials sector, focusing on advanced materials for integrated circuits. This industry is characterized by high R&D intensity, long product development cycles, and significant capital requirements. Companies in this space often face intense competition from established players and require substantial investment to bring new technologies to market.

Regulatory Implications

As a publicly traded company, Atomera is subject to SEC regulations and reporting requirements. Compliance with these regulations is crucial. There are no specific regulatory risks highlighted in this filing beyond standard compliance, but the company's financial performance could attract scrutiny.

What Investors Should Do

1. Monitor R&D progress and commercialization efforts
2. Evaluate cash burn rate and funding strategy
3. Assess the viability of the core technology
4. Consider the impact of share dilution

Key Dates

• 2025-09-30: Nine Months Ended — Reported a net loss of $15.749 million on revenue of $15,000, with negative gross margin and increased operating expenses.
• 2025-09-30: ATM Stock Sales — Raised approximately $5.2 million in net proceeds, helping to offset operating cash burn.
• 2025-09-30: Cash and Cash Equivalents — Balance stood at $20.322 million, a decrease from $25.778 million at year-end 2024.
• 2024-09-30: Nine Months Ended — Reported a net loss of $13.778 million on revenue of $112,000, with a positive gross margin of $2,000.

Glossary

ATM

At-The-Market offering, a way for public companies to sell stock directly into the open market over time. (Atomera utilized ATM facilities to raise capital, indicating a need for funding operations.)

Accumulated Deficit

The total cumulative net losses of a company since its inception, less any net gains. (Atomera has an accumulated deficit of $237.269 million as of September 30, 2025, reflecting its history of losses.)

Gross Margin

The difference between revenue and cost of goods sold, expressed as a percentage or dollar amount. (Atomera reported a negative gross margin of $(175,000) for the nine months ended September 30, 2025, highlighting operational inefficiencies or pricing challenges.)

Operating Lease Right-of-Use Asset

An asset representing the right to use a leased asset over the lease term. (This reflects Atomera's obligations under operating leases, with a balance of $92,000 as of September 30, 2025.)

Financing Lease Right-of-Use Asset

An asset representing the right to use a leased asset over the lease term, treated similarly to a financed purchase. (This reflects Atomera's obligations under financing leases, with a balance of $744,000 as of September 30, 2025.)

Year-Over-Year Comparison

Compared to the nine months ended September 30, 2024, Atomera has experienced a dramatic downturn in financial performance. Revenue has fallen by 86.6% from $112,000 to $15,000, while the gross margin has shifted from a small positive of $2,000 to a significant negative of $(175,000). Net loss has widened by approximately 14.3% from $13.778 million to $15.749 million, driven by increased operating expenses, particularly in R&D and G&A. The company's cash position has also decreased, necessitating reliance on ATM stock sales.

Key Financial Figures

• $0.001 — ch registered Common stock: Par value $0.001 ATOM Nasdaq Capital Market Indicate
• $50.0 million — ng aggregate offering proceeds of up to $50.0 million (the "2022 ATM"). The 2022 ATM Facility
• $150,000 — established a monthly lease payment of $150,000 per month. The lease contains a provisi
• $137,650 — payments for this tool were adjusted to $137,650 per month for the period August 1, 2023
• $124,071 — payments for this tool were adjusted to $124,071 per month for the period August 1, 2024
• $133,125 — payments for this tool were adjusted to $133,125 per month for the period August 1, 2025

Filing Documents

• atomera_i10q-093025.htm (10-Q) — 666KB
• atomera_ex3101.htm (EX-31.1) — 10KB
• atomera_ex3102.htm (EX-31.2) — 10KB
• atomera_ex3201.htm (EX-32.1) — 5KB
• 0001683168-25-007840.txt ( ) — 4158KB
• atom-20250930.xsd (EX-101.SCH) — 26KB
• atom-20250930_cal.xml (EX-101.CAL) — 47KB
• atom-20250930_def.xml (EX-101.DEF) — 110KB
• atom-20250930_lab.xml (EX-101.LAB) — 303KB
• atom-20250930_pre.xml (EX-101.PRE) — 245KB
• atomera_i10q-093025_htm.xml (XML) — 595KB

Financial Information

PART I. Financial Information Item 1.

Financial Statements

Financial Statements 3 Condensed Balance Sheets –September 30, 2025 (Unaudited) and December 31, 2024 3 Unaudited Condensed Statements of Operations – For the Three and Nine Months Ended September 30, 2025 and 2024 4 Unaudited Condensed Statements of Comprehensive Loss – For the Three and Nine Months Ended September 30, 2025 and 2024 5 Unaudited Condensed Statements of Stockholders' Equity – For the Three and Nine Months Ended September 30, 2025 and 2024 6 Unaudited Condensed Statements of Cash Flows – For the Nine Months Ended September 30, 2025 and 2024 7 Notes to the Unaudited Condensed Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 22 Item 4.

Controls and Procedures

Controls and Procedures 22

Other Information

PART II. Other Information Item 1A.

Risk Factors

Risk Factors 23 Item 5. Other Information 23 Item 6. Exhibits 23

Financial Information

PART I. Financial Information

Financial Statements

Item 1. Financial Statements Atomera Incorporated Condensed Balance Sheets (in thousands, except per share data) September 30, December 31, 2025 2024 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 20,322 $ 25,778 Short-term investments – 995 Accounts receivable 137 6 Interest receivable 64 73 Prepaid expenses and other current assets 517 240 Total current assets 21,040 27,092 Property and equipment, net 51 59 Long-term prepaid maintenance and supplies – 91 Security deposit 14 14 Operating lease right-of-use asset 92 280 Financing lease right-of-use-asset 744 1,588 Total assets $ 21,941 $ 29,124 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 617 $ 492 Accrued expenses 244 239 Accrued payroll-related expenses 1,112 1,328 Current operating lease liability 64 260 Current financing lease liability 730 1,253 Deferred revenue 144 4 Total current liabilities 2,911 3,576 Long-term operating lease liability – 22 Long-term financing lease liability – 449 Total liabilities 2,911 4,047 Commitments and contingencies (see Note 9) – – Stockholders' equity: Preferred stock $ 0.001 par value, authorized 2,500 shares; none issued and outstanding as of September 30, 2025 and December 31, 2024 – – Common stock: $ 0.001 par value, authorized 47,500 shares; 31,510 shares issued and outstanding as of September 30, 2025; and 30,540 shares issued and outstanding as of December 31, 2024 32 31 Additional paid in capital 256,267 246,565 Other comprehensive income – 1 Accumulated deficit ( 237,269 ) ( 221,520 ) Total stockholders' equity 19,030 25,077 Total liabilities and stockholders' equity $ 21,941 $ 29,124 The accompanying notes are an integral part of these condensed financial statements. 3 Atomera Incorporated Condensed Statements of Operations (Unaudited) (in thousands, except per share dat

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