Atomera CFO sells shares worth over $6,500 to cover tax

Atomera Inc (NASDAQ:ATOM) has reported that its Chief Financial Officer, Laurencio Francis, sold a total of $6,589 worth of shares at a price of $2.58 each. The transaction was executed on September 3, 2024, and was disclosed in a recent filing with the Securities and Exchange Commission.

The sale was conducted to cover tax withholding obligations related to the vesting of restricted stock grants. This is a common practice known as a "sell to cover" transaction, where shares are sold to satisfy mandatory tax withholding requirements. The transaction did not reflect a discretionary trade by the CFO, but rather a necessary step following the vesting of restricted stock.

Following this transaction, Laurencio Francis still holds a significant number of shares in the company, indicating continued vested interest in Atomera's performance and future. The disclosed sale provides transparency to investors and maintains compliance with regulatory requirements.

In other recent news, Atomera Incorporated reported its Q2 2024 earnings results, revealing a GAAP net loss of $4.4 million, which is an improvement from the $5.2 million loss in the same quarter of the previous year. The company also reported a revenue increase to $72,000 in Q2 2024, up from zero in the same quarter of the previous year. These recent developments also include the company's progress in smart power products with STMicroelectronics and a collaboration with Soitec on thin RF-SOI wafers, both aimed at manufacturing optimization and facilitating the adoption of MST technology.

Atomera is also actively pursuing opportunities in memory technology, advanced node markets, and GaN technology. The company submitted its first proposal under the CHIPS and Science Act and expects increased interest in funding opportunities. Despite operating at a net loss, the company has shown performance enhancements between 15% and 30% and has received positive feedback from potential partners in GaN on silicon technology.

Finally, Atomera anticipates its engagement with STMicroelectronics to form the base of its revenue in the next year and expects Q3 2024 revenues to be approximately $20,000. The company's operating expenses for the full year are projected to be lower than previously forecasted. These recent developments indicate Atomera's strategic advancements and collaborations in various market segments.

InvestingPro Insights

Atomera Inc's (NASDAQ:ATOM) recent financial performance and market activity provide an interesting context to the CFO's share sale. According to InvestingPro data, Atomera has a market capitalization of $72.85 million, which reflects the company's valuation in the eyes of investors. Despite a staggering revenue growth of over 9000% in the last twelve months as of Q2 2024, the company's gross profit margin stands impressively at 78.91%, underscoring the efficiency of its operations in generating profit from its revenues. Nevertheless, the company has been facing challenges, as reflected by its negative operating income margin of -3095.94% for the same period.

InvestingPro Tips suggest a mixed picture for Atomera. On the positive side, the company holds more cash than debt, indicating a strong balance sheet, and has liquid assets that exceed its short-term obligations, providing financial flexibility. However, analysts highlight concerns, such as the company's rapid cash burn and the expectation that it will not be profitable this year. The stock price has also experienced significant volatility, with a price drop of over 58% in the last year, and it does not pay dividends, which might be a consideration for income-focused investors.

For those interested in a deeper dive into Atomera's financial health and stock performance, InvestingPro offers additional tips and insights. Currently, there are 14 InvestingPro Tips available, which can provide investors with a more comprehensive understanding of the company's prospects and investment potential.

It's important to note that the CFO's sale of shares could be perceived in different contexts; while it was a "sell to cover" transaction and not a discretionary sale, the broader financial picture of Atomera, including its share price volatility and analyst expectations, is essential for investors to consider. For more detailed analysis and metrics, investors can refer to Atomera's profile on InvestingPro.

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