Atomera Incorporated (ATOM): Business Model Canvas [Dec-2025 Updated]

You're digging into Atomera Incorporated (ATOM) to see if their Mears Silicon Technology (MST) is more than just great science-you want the business reality, and honestly, that's smart. As someone who has mapped these deep-tech plays for years, I see a clear blueprint: they are betting big on proprietary IP, funding heavy Research and Development (R&D)-which is their primary cost driver, with projected 2025 non-GAAP operating expenses between $17.25M-$17.50M-through strategic Joint Development Agreements with major manufacturers. Right now, revenue is just Non-Recurring Engineering (NRE) fees, guiding $75,000 to $125,000 for Q4 2025, but the whole structure is built to transition to high-volume royalties, using their $20.3 million cash, equivalents, and short-term investments (Q3 2025) to bridge the gap. Dive into the full Canvas below to see exactly how their Key Partnerships and Channels are set up to turn that tech into dollars.

Atomera Incorporated (ATOM) - Canvas Business Model: Key Partnerships

You're looking at the partnerships Atomera Incorporated is relying on to move its Mears Silicon Technology (MST) from development to volume royalty revenue, which is the core of their business model. As of late 2025, the landscape shows both progress and necessary adjustments, especially following the STMicroelectronics outcome.

Strategic marketing agreement with a major capital equipment provider

Atomera Incorporated announced an agreement with a leading capital equipment company in April 2025, designed to speed up the licensing and production cycles for MST. This partnership specifically targets advanced nodes, such as Gate-All-Around (GAA) transistors, and extends Atomera Incorporated's sales and marketing reach. By Q3 2025, management noted this partnership was starting to show results. This strategic move is intended to help Atomera Incorporated get more licensees into production faster as the partner sells more tools.

Joint Development Agreements (JDAs) with leading semiconductor manufacturers

Joint Development Agreements (JDAs) are crucial for Atomera Incorporated, as they represent the path toward definitive manufacturing and distribution licenses. While the company has a history of JDAs, including one signed in January 2021 with a leading semiconductor provider, the focus remains on converting these development efforts into commercial agreements. As of Q1 2025, Atomera Incorporated was engaged with a significant number of potential partners, reporting 21 customers and 26 engagements. The company is actively working to advance these engagements, though converting them to royalty-based manufacturing licenses remains a key risk area. Atomera Incorporated is also prioritizing MST starting wafer products for faster time to revenue, suggesting a shift in JDA focus.

Collaboration with Incize for GaN-on-Si and RF-SOI characterization

In July 2025, Atomera Incorporated announced a strategic collaboration with Incize, a Belgian characterization and modeling company, specifically to advance Gallium Nitride on Silicon (GaN-on-Si) technology. This joint program concentrates on optimizing device performance for high-frequency and high-power applications, targeting markets like wireless infrastructure (5G/6G) and advanced power electronics. The collaboration combines Atomera Incorporated's MST with Incize's state-of-the-art characterization platforms, covering substrate trap analysis, noise, linearity, thermal effects, and RF performance from DC to mmWave. This effort is part of a broader push, as Atomera Incorporated is also advancing MST applications in RF-SOI, specifically in low noise amplifiers (LNAs) to meet 5G demands.

Research partnerships with institutions like Sandia National Laboratories

Atomera Incorporated has an active user project at the Center for Integrated Nanotechnologies (CINT) at Sandia National Laboratories, a Department of Energy research center. This project, announced in late 2024, addresses the challenges of growing Gallium Nitride (GaN) films on Silicon (Si). The goal is to create the world's first GaN transistors and test data from wafers employing MST. By Q3 2025, Atomera Incorporated reported completing the world's first MST-enabled GaN devices, with early electrical data aligning with prior material-quality improvements. This partnership also supports Atomera Incorporated's pursuit of potential government funding, especially through CHIPS Act infrastructure.

Ongoing technology integration efforts with STMicroelectronics

The collaboration with STMicroelectronics, a tier-1 fab, reached a turning point in Q3 2025. While Atomera Incorporated demonstrated significant performance improvements using MST on STMicroelectronics' 200mm wafer platform, the higher performance led to a reduction in device reliability that exceeded STMicroelectronics' specification limits. Subsequently, STMicroelectronics informed Atomera Incorporated that they are not currently planning to complete the validation of a new, breakthrough MST implementation for their aggressive 300mm BCD110 production timeframe, leaving Atomera Incorporated without a current line of sight to royalty revenue from that specific program. However, STMicroelectronics has reinforced that they will continue to work with Atomera Incorporated on other technology areas in which they are engaged. Atomera Incorporated is now accelerating customer evaluations in power and storage sectors to seize rapid revenue opportunities following this revision.

Here's a quick look at the financial context surrounding these development and partnership activities as of the end of Q3 2025:

The pipeline of engagement remains broad, covering several key semiconductor areas where MST is being evaluated:

• RF-SOI, including work on Low Noise Amplifiers (LNAs).
• Power devices, a segment where Atomera Incorporated aims to boost production output.
• Gate-All-Around (GAA) logic architectures.
• DRAM and advanced memory technologies.

Finance: review Q4 NRE revenue guidance against Q3 actuals by next week.

Atomera Incorporated (ATOM) - Canvas Business Model: Key Activities

You're looking at the core actions Atomera Incorporated (ATOM) must execute to make its business model work, especially as they push for commercialization in late 2025. This isn't about the money coming in or out, but the actual work required.

Advanced Research and Development (R&D) for MST applications

The fundamental activity is the ongoing technical work on Mears Silicon Technology (MST). This R&D effort is reflected in the operating expenses Atomera incurs to support its technology development pipeline.

GAAP operating expenses in the third quarter of 2025 were reported at $5.7 million, which was an increase from $4.8 million in the third quarter of 2024. For the full year 2025, the company is forecasting its non-GAAP operating expenses to be in the range of $17.25 million to $17.50 million.

Customer-specific technology integration and optimization

Atomera Incorporated (ATOM) must actively work with customers to integrate and optimize MST for specific device architectures. This is evidenced by the high level of hands-on work being performed.

Atomera Incorporated (ATOM) reported a record number of MST wafers processed for customers during the third quarter of 2025. The company is seeing broader interest across multiple segments, including:

• Gate All Around (GAA)
• DRAM
• RF SOI
• Power

Optimization efforts led to the discovery of a new MST implementation that simulations showed doubled performance improvements without negatively affecting device lifetime.

Intellectual Property (IP) portfolio development and defense

Protecting the core technology through patents is a non-negotiable key activity for a licensing company like Atomera Incorporated (ATOM). The latest reported size of this asset base is from Q2 2025.

The intellectual property portfolio for Atomera Incorporated (ATOM) reached 400 issued and pending patents as of the second quarter of 2025.

Licensing negotiation and sales acceleration via partner salesforce

Converting technical progress into signed agreements requires dedicated sales and negotiation efforts. Atomera Incorporated (ATOM) has recently taken steps to bolster this activity.

The company appointed Wei Na as Vice President of Sales to accelerate licensing, bringing 18 years in IP licensing experience. Management anticipates this hire will help convert the pipeline into agreements. The company expects to recognize between $75,000 and $125,000 of NRE revenue in Q4 2025, driven by ongoing wafer shipments to customers.

Processing a record number of MST wafers for customer demos

This activity directly supports the customer integration and licensing negotiation efforts, serving as a critical step before a formal license is secured. The volume of this work is a direct measure of current engagement intensity.

Atomera Incorporated (ATOM) achieved a record number of MST wafers processed for customers in the third quarter of 2025. This high volume of demo runs is intended to drive rapid revenue generation, particularly in RF-SOI and Gallium Nitride (GaN) applications.

The financial output from this activity in Q3 2025 was minimal, with reported revenue of $11,000. The net loss for Q3 2025 was $5.6 million, and the cash position at the end of September 30, 2025, stood at $20.3 million.

Atomera Incorporated (ATOM) - Canvas Business Model: Key Resources

You're looking at the core assets that Atomera Incorporated (ATOM) relies on to execute its technology licensing model. These aren't just line items; they are the foundation of the company's value proposition in the semiconductor space.

Proprietary Mears Silicon Technology (MST) Intellectual Property (IP)

The primary key resource is the Proprietary Mears Silicon Technology (MST) Intellectual Property (IP). This is Atomera Incorporated's silicon-proven technology designed to increase performance and power efficiency in semiconductor transistors. The IP covers the MST ultra-thin film, which can be implemented using equipment already deployed in semiconductor manufacturing facilities. The company is actively seeing broader interest in MST across segments like GAA, DRAM, RFSOI, and power. Furthermore, Atomera Incorporated's founder and CTO, Robert Mears, noted that breakthroughs in advanced materials are empowering the industry to achieve higher performance with reduced space and energy requirements.

The value of this IP is further demonstrated by the recent technical progress, even as a collaboration with STMicroelectronics did not progress as hoped, yielding technical insights and credibility. Atomera Incorporated is now exploring a new MST implementation promising double the performance gains without affecting device longevity.

Financial Backing for Resource Sustenance

To maintain and advance these resources, the balance sheet provides the necessary runway. As of September 30, 2025, Atomera Incorporated reported $20.3 million in cash, cash equivalents, and short-term investments. This figure is down from $26.8 million at December 31, 2024. The company incurred a net loss of ($5.6) million in the third quarter of 2025, with 31.5 million shares outstanding as of September 30, 2025. The company also raised approximately $2 million under its ATM facility during Q3 2025 by selling about 393,000 shares at an average price of $5.23.

Internal Tools and Talent

The ability to simulate and validate the MST technology is critical, which relies on both specialized personnel and proprietary software tools. The talent pool is small but highly focused; as of August 30, 2025, PitchBook reported Atomera Incorporated had 22 total employees. This team supports the development and commercialization efforts, including the recent hiring of Wei Na, Vice President of Sales, who brings 18 years in IP licensing experience.

The company's internal simulation capability is anchored by its proprietary software suite, which is a key enabler for customer engagement.

The internal tools, specifically MSTcad™, are tightly coupled with the Synopsys Sentaurus™ TCAD Solution. This toolset allows Atomera Incorporated to model the intricate physical properties and evolution of MST during semiconductor manufacturing. The validation of physical characteristics and electrical performance simulated with MSTcad™ has been confirmed by Atomera Incorporated on silicon. This capability is crucial for providing valuable input for detailed analyses of expected gross margin and die shrinkage benefits from MST across multiple process nodes, from GAA to legacy planar nodes on both 300mm and 200mm wafer sizes.

The company is also focused on driving operational traction, evidenced by reporting a record number of MST wafers processed for customers in Q3 2025. For Q4 2025, Atomera Incorporated guided expected NRE revenue from these wafer shipments between $0.075 million and $0.125 million.

• Proprietary Mears Silicon Technology (MST) Intellectual Property (IP)
• Cash, equivalents, and short-term investments of $20.3 million (Q3 2025)
• Highly specialized R&D engineering and physics talent (Total employees: 22 as of August 30, 2025)
• Internal TCAD and AI tools for device simulation and optimization (MSTcad™)

Atomera Incorporated (ATOM) - Canvas Business Model: Value Propositions

You're looking at the core reasons why semiconductor firms would adopt Atomera Incorporated's Mears Silicon Technology (MST), even while the company is still in a pre-revenue phase, evidenced by a Q3 2025 net loss of $5.6 million.

The fundamental value proposition of MST is its ability to enhance transistor performance and power efficiency. This technology is a thin film of reengineered silicon, typically only 100 to 300 angstroms thick, applied as a channel enhancement to CMOS-type transistors.

The integration is designed to be cost-effective because Atomera Incorporated states MST can be implemented using equipment already deployed in semiconductor manufacturing facilities. This reduces the capital expenditure barrier for adoption by foundries and integrated device manufacturers.

Atomera Incorporated is actively demonstrating improvements in yields and enabling smaller chip sizes on wafers through its technology. The company is focusing on increasing wafer processing to drive revenue in RF-SOI and GaN applications.

MST provides a path to lower Low Noise Amplifier (LNA) power consumption in RF-SOI devices. Atomera Incorporated determined that MST can significantly improve LNA performance by lowering the circuit bias current, which directly reduces power consumption in these critical receiver circuits in mobile phones.

The technology is positioned to enable advanced node technologies like Gate-All-Around (GAA). Atomera Incorporated reported signing an OEM partnership in Q1 2025 specifically to accelerate GAA transistor validation.

The company's current operational and IP status underpins these value propositions:

• MST is being validated across GAA, DRAM, RF-SOI, and power segments.
• Atomera Incorporated is working with 20 customers across 26 engagements as of Q2 2025.
• The intellectual property portfolio stands at 402 patents issued and pending as of Q2 2025.
• The full-year 2025 non-GAAP operating expense is forecast between $17.25 million and $17.50 million.

Here is a snapshot of Atomera Incorporated's financial and operational context as of late 2025, which frames the urgency and potential of these value propositions:

The company anticipates recognizing up to $125,000 of NRE revenue in Q4 2025 from ongoing wafer shipments.

Atomera Incorporated (ATOM) - Canvas Business Model: Customer Relationships

You're looking at how Atomera Incorporated (ATOM) builds and maintains its crucial ties with semiconductor manufacturers, which is the lifeblood of its licensing model. This isn't a simple transactional relationship; it's deeply technical and collaborative, especially in the early stages.

High-touch, collaborative Joint Development Agreement (JDA) model

Atomera Incorporated (ATOM) relies heavily on a high-touch approach, primarily through the Joint Development Agreement (JDA) structure. This model is specifically designed for large customers who operate across multiple production nodes and product divisions, aiming for deep penetration and faster technology adoption across their lines. As of the second quarter of 2025, the company reported working with 20 customers across 26 engagements, which included relationships with more than half of the world's top semiconductor manufacturers. This engagement depth is critical because it moves the relationship beyond a simple vendor status into a true technical partnership.

The customer engagement pipeline, as detailed in Q2 2025, shows the focus on active development:

• Integration phase: 14 customers
• Setup phase: 2 customers
• Installation phase: 10 customers

While the collaboration with STMicroelectronics for the BCD110 platform did not proceed to market incorporation, it still yielded valuable technical insights and market credibility, which the company is using to strengthen other engagements. The focus areas for current active programs are broad, spanning Gate-All-Around (GAA) logic, DRAM, RF-SOI, and power segments. The operational momentum is signaled by the record number of MST wafers processed for customers reported in the third quarter of 2025.

Dedicated engineering support for technology integration and qualification

The JDA model necessitates dedicated engineering support to shepherd the Mears Silicon Technology (MST) through integration and qualification within the customer's complex fabrication flow. This support is about proving the technical and economic advantage of MST across various process technologies. A significant step to formalize this support structure was the strategic marketing agreement announced in April 2025 with a global leader in chip fabrication technology. This collaboration is specifically aimed at perfecting MST implementation on the partner's cutting-edge machinery, ensuring smoother integration into advanced node production processes. Furthermore, Atomera Incorporated (ATOM) is actively engaged in device-level testing, such as with Sandia National Labs on Gallium Nitride (GaN) devices.

Long-term, royalty-based licensing for mass production

The ultimate goal of the early-stage, high-touch engagement is to transition to a long-term, royalty-based licensing agreement for mass production. This is the core revenue stream Atomera Incorporated (ATOM) is driving toward. The financial reality of this pre-revenue stage is evident in the Q3 2025 results, where the company reported a GAAP net loss of $5.6 Million, or $0.17 per share. The company recorded a negative gross margin in Q3 2025, which management attributed to the timing mismatch of incurring wafer deposition costs ahead of revenue recognition. Near-term revenue visibility comes from Non-Recurring Engineering (NRE) fees associated with wafer shipments; the guidance for Q4 2025 NRE revenue was set between $75,000 to $125,000. The trailing twelve months (TTM) revenue as of November 2025 stood at $0.03 Million USD.

Here's a quick look at the financial context surrounding this customer conversion effort as of late 2025:

Strategic sales focus led by new VP of Sales, Wei Na

To accelerate the conversion of this active pipeline into actual license agreements, Atomera Incorporated (ATOM) made a key leadership appointment. Wei Na joined as the new Vice President of Sales on October 28, 2025. This move signals a clear prioritization of commercial execution. Na brings nearly 30 years of semiconductor experience, with a particularly relevant 18 years dedicated to IP licensing. His background includes successfully scaling the embedded flash IP licensing business at SiFive and Cypress/Infineon, selling directly to the exact customer base Atomera targets. His mandate is to lead global sales strategy and execution, coordinating internal teams, contractors, and representatives to convert the strong pipeline into revenue-generating license and commercialization agreements. His ability to connect with engineers and navigate complex organizational decision cycles is seen as a direct catalyst for growth.

Atomera Incorporated (ATOM) - Canvas Business Model: Channels

Direct sales and business development team

• Hired Wei Na as Vice President of Sales to drive growth in advanced materials.
• Wei Na brings 18 years in IP licensing experience.
• Sales and marketing expenses were 'basically flat' in Q3 2025.
• The compensation expenses for new sales and marketing leadership roles are built into the operating expense plan.

Strategic partner's extensive global sales and marketing resources

Atomera Incorporated announced a strategic marketing agreement in April 2025 with a global leader in chip fabrication technology. This collaboration is designed to accelerate the adoption of Mears Silicon Technology (MST). The agreement allows Atomera Incorporated to leverage the capital equipment company's extensive salesforce and strong relationships with chipmakers. This channel is focused on perfecting MST implementation on the partner's cutting-edge machinery for advanced node customers.

Direct engagement with customer R&D and process engineering teams

Atomera Incorporated maintains active engagement across its customer pipeline. The company reported working with 20 customers across 26 engagements as of Q2 2025. Progress continues with STMicroelectronics, focusing on manufacturability and throughput optimization for high-volume production. The company processed a record number of MST wafers for customers in Q3 2025. Despite this, Q2 2025 revenue was zero, and Q1 2025 revenue was only $4,000. Atomera Incorporated anticipates recognizing up to $125,000 of NRE revenue in Q4 2025 from ongoing wafer shipments.

Industry conferences and technical presentations (e.g., CINT Annual User Meeting)

• Atomera Incorporated highlighted MST as a toolbox for engineering silicon virtual substrates at the 2025 CINT Annual User Meeting.
• The company is advancing MST applications in RF SOI, particularly in low noise amplifiers (LNAs) to meet 5G demands.
• The business model is focused on deploying proprietary technology into the semiconductor industry via licensing.

Atomera Incorporated (ATOM) - Canvas Business Model: Customer Segments

You're looking at the customer base for Atomera Incorporated (ATOM) as of late 2025. The company is operating in a pre-revenue licensing model, meaning the customer segments are defined by the technology application areas where their Mears Silicon Technology (MST) is being integrated and validated, rather than by direct sales figures per segment.

As of the second quarter of 2025, Atomera Incorporated reported working with 20 customers across 26 engagements total. This pipeline includes relationships with more than half of the world's top semiconductor manufacturers. The overall target market is the $600 billion semiconductor market.

The customer segments are directly tied to the four key technology focus areas Atomera Incorporated highlighted:

• RFSOI (Radio Frequency Silicon-on-Insulator)
• Advanced Nodes (like GAA)
• DRAM (Dynamic Random-Access Memory)
• Power (including GaN)

The company's Q3 2025 net loss was ($5.6) million, with cash, cash equivalents, and short-term investments standing at $20.3 million as of September 30, 2025. This financial reality underscores the urgency of converting these customer engagements into commercial licensing agreements.

Here is a breakdown mapping the required segments to the known technology focus and engagement status:

The engagement with STMicroelectronics, a major player in power and RF-SOI, did not progress as hoped for one platform, as they decided to take their BCD110 product to market without MST. Still, this collaboration provided valuable technical insights and market credibility.

The company is prioritizing MST starting wafers for RF-SOI and GaN applications for a faster time-to-revenue, while pursuing OEM-enabled GAA/DRAM/power integrations for larger returns.

Finance: review Q4 2025 NRE revenue guidance of $75,000-$125,000 against current cash burn rate by end of next week.

Atomera Incorporated (ATOM) - Canvas Business Model: Cost Structure

You're looking at the core spending areas for Atomera Incorporated as of late 2025, which is heavily weighted toward developing and protecting its Mears Silicon Technology (MST).

Research and Development (R&D) expenses are definitely the primary cost driver here, reflecting the deep investment needed to advance semiconductor materials technology.

For the nine months ended September 30, 2025, Atomera Incorporated incurred $9.6 million in research and development expenses. This was an increase of approximately 17% from the $8.2 million recorded for the same period in 2024.

The full-year 2025 non-GAAP operating expense projection is set in the range of $17.25 million-$17.50 million. This non-GAAP measure excludes certain non-cash items, most notably stock-based compensation.

Here's a look at the operating expense components based on the latest reported quarter:

Legal and patent maintenance costs for the IP portfolio are critical, though Atomera Incorporated reports these within the broader G&A or R&D buckets. We know the patent portfolio exceeded 400 issued and pending patents as of mid-2025. While specific maintenance spend isn't itemized, the general cost environment for IP saw USPTO fees increase effective January 19, 2025, with an average increase of 7.5% across filing, search, examination, and issuance fees.

Wafer processing and outsourced fabrication services costs are explicitly called out as a driver of R&D spending. The increase in R&D expenses in Q3 2025 included a $544,000 rise that reflected higher outsourced device fabrication work, alongside increased compensation expenses. This shows direct spending on customer-relevant processing.

General and administrative (G&A) and stock-based compensation are intertwined in the reported figures. General and administrative expenses increased by $353,000 in Q3 2025, primarily consisting of higher stock compensation expense. Stock-based compensation expense itself was $1.3 million in Q3 2025, up from $907,000 in Q3 2024, reflecting the adoption of performance-based RSUs (PSUs).

You can see the key cost components that make up the operating burn:

• Research and Development (Nine Months Ended Sept 30, 2025): $9.6 million
• Stock-Based Compensation (Q3 2025): $1.3 million
• Increase in R&D due to Outsourced Fabrication (Q3 2025 vs prior): Contributed to a $544,000 R&D expense increase
• G&A Increase (Q3 2025 vs prior): $353,000 increase, largely stock compensation driven

The company's cash position is what funds this cost structure. Atomera Incorporated reported a balance of cash and cash equivalents of $20.3 million as of September 30, 2025. Finance: draft 13-week cash view by Friday.

Atomera Incorporated (ATOM) - Canvas Business Model: Revenue Streams

You're looking at the current, near-term revenue picture for Atomera Incorporated (ATOM), which is heavily weighted toward upfront, non-recurring engineering fees as the company pushes its Mears Silicon Technology (MST) toward high-volume adoption. The business model is clearly structured around generating initial cash flow from customer validation work before the primary, long-term goal of royalty streams materializes.

The current revenue recognition is primarily driven by Minimal Non-Recurring Engineering (NRE) fees from customer engagements, which cover the costs associated with initial process integration and wafer shipments for demonstration purposes. This is the most immediate source of income while the technology qualifies for high-volume manufacturing agreements.

Here's a quick look at the most recent and near-term expected revenue components:

The primary long-term goal for Atomera Incorporated (ATOM) remains securing Future high-volume manufacturing royalties. This is the intended high-leverage component of the IP licensing model, where revenue scales with the success of the customer's final product incorporating MST. However, you should note that the near-term path to this was impacted by STMicroelectronics' decision not to include MST in their current BCD110 platform, which eliminated the immediate line-of-sight for royalties from that specific program.

To be fair, the Engineering services revenue remains minimal right now, reflecting the early stage of commercialization. For instance, the Q3 2025 revenue was reported at just $11,000. This is distinct from the larger, expected NRE revenue recognized in the following quarter.

The current revenue focus can be summarized by the types of near-term income streams being prioritized:

• Minimal Non-Recurring Engineering (NRE) fees from customer engagements.
• Revenue recognized from MST deposition on wafers shipped to customers.
• The pursuit of commercial licenses to accelerate time-to-revenue.