Akoustis Technologies, Inc. (NASDAQ: AKTS) (“Akoustis” or
the “Company”), an integrated device manufacturer (IDM) of patented
bulk acoustic wave (BAW) high-band RF filters for mobile and other
wireless applications, will host an investor call to provide a
business update and outlook, followed by a Q & A session this
morning at 8:00 a.m. EST. The call-in numbers are 877-407-3982
(domestic) or 201-493-6780 (international). The conference call
will be webcast live on the Company’s website and will be available
for playback at the following URL:
https://ir.akoustis.com/ir-calendar.
Jeff Shealy, founder and CEO of Akoustis,
commented, “The December quarter continued our momentum as we drove
revenue from each of our major market segments including WiFi, 5G
mobile, 5G infrastructure and defense.” Mr. Shealy continued,
“Despite the ongoing COVID-19 pandemic, we achieved many of our
strategic milestones for the December quarter. We are actively
delivering volume production of our WiFi 6 tandem filter solution,
shipping multiple 5G small cell XBAW™ filter solutions, delivering
initial designs of our new 5G mobile filter solutions to multiple
customers and we are now entering the market with our WiFi 6E
coexistence XBAW® filter solutions. We expect continued top-line
growth moving forward and, given our growing backlog of
commercially available RF filter products and technology aimed at
large and growing markets, we plan to once again significantly
expand the capacity at our New York fab.”
Akoustis previously announced a 500% capacity
expansion at its New York fab, which is expected to be completed by
this June. To support the anticipated filter demand from multiple
5G handset, WiFi 6E and other customers in calendar 2022 and
beyond, the Company now plans to double its manufacturing capacity
once again beyond its previously stated plan by the end of calendar
2021.
Recent Business Highlights
- Akoustis to accelerate fab expansion by doubling manufacturing
capacity beyond current plan by the end of calendar 2021
- Received first development order from new RF module customer
for XBAW™ filters for integration into 5G mobile RF front end
solutions
- Received first development order from new (third) 5G mobile
customer, a tier-1 RF module maker
- Completed the process flow for our first chip-scale-package
(CSP) for XBAW® filters, aimed at the emerging 5G mobile
market
- Continued engagement with first 5G mobile customer and
currently executing against open purchase orders
- Ramped commercial production for new tier-1 consumer focused
tri-band WiFi 6 product, which is currently available for sale in
both online and retail box stores
- Announced two additional WiFi 6 customers and design wins
targeting production in calendar 2021
- Achieved design-lock with our new 5.5 GHz and 6.5 GHz WiFi 6E
coexistence filters
- Received a volume order from a tier-1 consumer-focused WiFi 6E
OEM
- Delivered multiple engineering samples to two existing tier-1
enterprise WiFi 6E customers
- Achieved robust sampling of WiFi 6E filters to tier-1 and
tier-2 OEMs, ODMs and SoC customers
- Shipped volume order to tier-1 small cell network
infrastructure customer in support of initial production ramp
- Received order for 3.6 GHz CBRS filters from SoC customer for
use in new reference design
- Began DARPA direct-to-phase II (DP2) contract to advance design
and manufacturing of XBAW™ technology for filters and other
sensors
- Expanded XBAW™ patent portfolio to 38 issued and licensed
patents plus 75 patents pending
Akoustis’ high frequency, high performance XBAW®
process and filters are experiencing growing interest as the
Company has entered production in multiple markets in calendar
2020, including 5G network infrastructure, high-band WiFi and
phased-array radar applications.
Akoustis has added 15 filters to its product
catalog including a 5.6 GHz WiFi filter, a 5.2 GHz WiFi filter, a
5.5 GHz WiFi-6E filter, a 6.5 GHz WiFi 6E filter, three small cell
5G network infrastructure filters including two Band n77 filters
and one Band n79 filter, a 3.8 GHz filter and five S-Band filters
for applications including defense phased-array radar applications,
a 3.6 GHz filter for the CBRS 5G infrastructure market and a C-Band
filter for the unmanned aircraft systems (UAS) market. The Company
is also developing several new filters for the sub-7 GHz bands
targeting 5G mobile device, network infrastructure, WiFi CPE and
defense markets.
Second Fiscal Quarter Financial
Performance
Condensed
Consolidated Statements of Operations |
(In
thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three |
|
|
For the
Three |
|
|
For the
Six |
|
|
For the
Six |
Months
Ended |
Months
Ended |
Months
Ended |
Months
Ended |
December 31, |
December 31, |
December 31, |
December 31, |
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
Revenue with customers |
|
$ |
1,308 |
|
|
|
$ |
518 |
|
|
|
$ |
1,944 |
|
|
|
$ |
1,061 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
2,602 |
|
|
|
|
787 |
|
|
|
|
4,251 |
|
|
|
|
1,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss) |
|
|
(1,294 |
) |
|
|
|
(269 |
) |
|
|
|
(2,307 |
) |
|
|
|
(62 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
5,566 |
|
|
|
|
4,897 |
|
|
|
|
11,946 |
|
|
|
|
9,967 |
|
General and administrative expenses |
|
|
3,361 |
|
|
|
|
2,759 |
|
|
|
|
6,288 |
|
|
|
|
5,569 |
|
Total operating expenses |
|
|
8,927 |
|
|
|
|
7,656 |
|
|
|
|
18,234 |
|
|
|
|
15,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(10,221 |
) |
|
|
|
(7,925 |
) |
|
|
|
(20,541 |
) |
|
|
|
(15,598 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (expense) income |
|
|
(1,703 |
) |
|
|
|
(1,102 |
) |
|
|
|
(3,135 |
) |
|
|
|
(2,096 |
) |
Rental income |
|
|
— |
|
|
|
|
55 |
|
|
|
|
— |
|
|
|
|
109 |
|
Change in fair value of contingent real estate liability |
|
|
— |
|
|
|
|
(16 |
) |
|
|
|
— |
|
|
|
|
(34 |
) |
Change in fair value of derivative liabilities |
|
|
14 |
|
|
|
|
(326 |
) |
|
|
|
(184 |
) |
|
|
|
(670 |
) |
Total other (expense) income |
|
|
(1,689 |
) |
|
|
|
(1,389 |
) |
|
|
|
(3,319 |
) |
|
|
|
(2,691 |
) |
Net loss |
|
$ |
(11,910 |
) |
|
|
|
(9,314 |
) |
|
|
$ |
(23,860 |
) |
|
|
$ |
(18,289 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share - basic and
diluted |
|
$ |
(0.30 |
) |
|
|
$ |
(0.30 |
) |
|
|
$ |
(0.61 |
) |
|
|
$ |
(0.59 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic and
diluted |
|
|
39,445,268 |
|
|
|
|
31,428,233 |
|
|
|
|
38,810,985 |
|
|
|
|
30,876,709 |
|
Akoustis Technologies,
Inc. |
|
Condensed
Consolidated Balance Sheets |
|
(In
thousands, except share data) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
December
31, |
|
|
June
30, |
|
|
|
2020 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
47,685 |
|
|
|
$ |
44,308 |
|
|
Accounts receivable, net |
|
|
746 |
|
|
|
|
351 |
|
|
Inventory, net |
|
|
651 |
|
|
|
|
136 |
|
|
Other current assets |
|
|
1,851 |
|
|
|
|
1,408 |
|
|
Total current assets |
|
|
50,933 |
|
|
|
|
46,203 |
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
25,080 |
|
|
|
|
23,605 |
|
|
|
|
|
|
|
|
|
|
|
Intangibles, net |
|
|
586 |
|
|
|
|
544 |
|
|
|
|
|
|
|
|
|
|
|
Operating lease right-of-use asset, net |
|
|
589 |
|
|
|
|
699 |
|
|
Restricted cash |
|
|
100 |
|
|
|
|
100 |
|
|
Other assets |
|
|
282 |
|
|
|
|
282 |
|
|
Total Assets |
|
$ |
77,570 |
|
|
|
$ |
71,433 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
4,570 |
|
|
|
$ |
5,899 |
|
|
Deferred revenue |
|
|
57 |
|
|
|
|
— |
|
|
Operating lease liability - current |
|
|
250 |
|
|
|
|
231 |
|
|
Short term loans payable |
|
|
594 |
|
|
|
|
— |
|
|
Current convertible notes payable, net |
|
|
9,795 |
|
|
|
|
— |
|
|
Total current liabilities |
|
|
15,266 |
|
|
|
|
6,130 |
|
|
|
|
|
|
|
|
|
|
|
Long-term Liabilities: |
|
|
|
|
|
|
|
|
Convertible notes payable, net |
|
|
14,351 |
|
|
|
|
21,628 |
|
|
Operating lease liability - non-current |
|
|
342 |
|
|
|
|
472 |
|
|
Long term loans payable |
|
|
1,010 |
|
|
|
|
1,591 |
|
|
Other long-term liabilities |
|
|
117 |
|
|
|
|
117 |
|
|
Total long-term liabilities |
|
|
15,820 |
|
|
|
|
23,808 |
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
31,086 |
|
|
|
|
29,938 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Preferred stock, par value $0.001: 5,000,000 shares authorized;
none issued and outstanding |
|
|
— |
|
|
|
|
— |
|
|
Common stock, $0.001 par value; 100,000,000 shares authorized;
41,399,075 and 37,990,380 shares issued and outstanding at December
31, 2020 and June 30, 2020, respectively |
|
|
41 |
|
|
|
|
38 |
|
|
Additional paid in capital |
|
|
173,918 |
|
|
|
|
145,072 |
|
|
Accumulated deficit |
|
|
(127,475 |
) |
|
|
|
(103,615 |
) |
|
Total Stockholders’ Equity |
|
|
46,484 |
|
|
|
|
41,495 |
|
|
Total Liabilities and Stockholders’
Equity |
|
$ |
77,570 |
|
|
|
$ |
71,433 |
|
|
The following Non-GAAP measures should not be
considered a substitute for, or superior to, financial measures
calculated in accordance with GAAP. These non-GAAP measures exclude
significant expenses that are required by GAAP to be recorded in
the Company's financial statements and are subject to inherent
limitations. Please see reconciliations to comparable GAAP measures
below under “Non-GAAP Measures.”
Non-GAAP Operating Loss and Non-GAAP Net Loss for the three
months ending December 31, 2020 and 2019 were as follows:
Akoustis Technologies, Inc. |
Unaudited Reconciliations of Non-GAAP Financial
Measures |
|
|
|
|
Three Months Ended |
|
December 31, 2020 |
December 31, 2019 |
(in thousands) |
GAAP operating loss |
($ |
10,221 |
) |
($ |
7,925 |
) |
Common stock issued for
services |
$ |
2,066 |
|
$ |
1,703 |
|
Non-GAAP operating loss |
($ |
8,155 |
) |
($ |
6,222 |
) |
|
|
|
|
|
|
|
Three Months Ended |
|
December 31, 2020 |
December 31, 2019 |
(in thousands) |
GAAP net loss |
|
(11,910 |
) |
|
(9,314 |
) |
Change in fair value of
contingent real estate liability |
|
0 |
|
|
16 |
|
Change in fair value of
derivative liabilities |
|
(14 |
) |
|
326 |
|
Debt discount
amortization |
|
1,314 |
|
|
711 |
|
Common stock issued for
services |
|
2,066 |
|
|
1,703 |
|
Non-GAAP net loss |
|
(8,544 |
) |
|
(6,558 |
) |
|
|
|
Weighted average common shares
outstanding - basic and diluted |
|
39,445,268 |
|
|
31,428,233 |
|
Non-GAAP net loss per common
share - basic and diluted |
($ |
0.22 |
) |
($ |
0.21 |
) |
|
|
|
|
|
|
|
Six Months Ended |
|
December 31, 2020 |
December 31, 2019 |
(in thousands) |
GAAP operating loss |
($ |
20,541 |
) |
($ |
15,598 |
) |
Common stock issued for
services |
$ |
4,093 |
|
$ |
3,305 |
|
Non-GAAP operating loss |
($ |
16,448 |
) |
($ |
12,293 |
) |
|
|
|
|
|
|
|
Six Months Ended |
|
December 31, 2020 |
December 31, 2019 |
(in thousands) |
GAAP net loss |
($ |
23,860 |
) |
($ |
18,289 |
) |
Change in fair value of
contingent real estate liability |
$ |
0 |
|
$ |
34 |
|
Change in fair value of
derivative liabilities |
$ |
184 |
|
$ |
670 |
|
Debt discount
amortization |
$ |
2,346 |
|
$ |
1,490 |
|
Common stock issued for
services |
$ |
4,093 |
|
$ |
3,305 |
|
|
|
|
Non-GAAP net loss |
($ |
17,237 |
) |
($ |
12,789 |
) |
|
|
|
Weighted average common shares
outstanding - basic and diluted |
|
38,810,985 |
|
|
30,876,709 |
|
Non-GAAP net loss per common
share - basic and diluted |
($ |
0.44 |
) |
($ |
0.41 |
) |
Non-GAAP Measures
We regularly review a number of metrics,
including Non-GAAP Operating Loss and Non-GAAP Net Loss, which are
not financial measures calculated in accordance with generally
accepted accounting principles in the United States (“GAAP”).
Non-GAAP Operating Loss represents operating loss before common
stock issued for services. Non-GAAP Net Loss represents net
loss before change in fair value of contingent real estate
liability, change in fair value of derivative liabilities, debt
discount amortization and common stock issued for
services. The Company believes these non-GAAP measures provide
useful information to management, investors and financial analysts
regarding certain financial and business trends relating to the
Company’s financial condition and results of operations. We use
these non-GAAP measures to evaluate our business, measure our
performance, identify trends affecting our business, formulate
financial projections and make strategic decisions.
About Akoustis Technologies,
Inc.
Akoustis® (http://www.akoustis.com/) is a
high-tech BAW RF filter solutions company that is pioneering
next-generation materials science and MEMS wafer manufacturing
to address the market requirements for improved RF filters -
targeting higher bandwidth, higher operating frequencies and higher
output power compared to incumbent polycrystalline BAW
technology deployed today. The Company utilizes its proprietary
XBAW® manufacturing process to produce bulk acoustic wave RF
filters for mobile and other wireless markets, which
facilitate signal acquisition and accelerate band performance
between the antenna and digital back end. Superior performance is
driven by the significant advances of high-purity,
single-crystal and associated piezoelectric materials and the
resonator-filter process technology which drives electro-mechanical
coupling and translates to wide filter bandwidth.
Akoustis plans to service the fast growing
multi-billion-dollar RF filter market using its integrated
device manufacturer (IDM) business model. The Company owns and
operates a 120,000 sq. ft. ISO-9001:2015
registered commercial wafer-manufacturing facility located in
Canandaigua, NY, which includes a class 100 / class 1000 cleanroom
facility - tooled for 150-mm diameter wafers - for the
design, development, fabrication and packaging of RF filters, MEMS
and other semiconductor devices. Akoustis Technologies,
Inc. is headquartered in the Piedmont technology
corridor near Charlotte, North Carolina.
Forward-Looking Statements
This document includes “forward- This document
includes “forward-looking statements” within the meaning of Section
27A of the Securities Act, and Section 21E of the Securities
Exchange Act of 1934, as amended, that are intended to be covered
by the “safe harbor” created by those sections. These
forward-looking statements include, but are not limited to,
statements about our estimates, expectations, beliefs, intentions,
plans or strategies for the future (including our possible future
results of operations, business strategies, competitive position,
potential growth opportunities, potential market opportunities and
the effects of competition), and the assumptions underlying such
statements. Forward-looking statements include all statements that
are not historical facts and typically are identified by use of
terms such as "may," “might,” “would,” "will," "should," "could,"
“project,” "expect," "plan," “strategy,” "anticipate," “attempt,”
“develop,” “help,” "believe," "estimate," "predict," “intend,”
“forecast,” “seek,” "potential," "continue," “future,” and similar
words (including the negative of any of the foregoing), although
some forward-looking statements are expressed differently.
Forward-looking statements are neither historical facts nor
assurances of future results, performance, events or circumstances.
Instead, these forward-looking statements are based on
management’s current beliefs, expectations and assumptions and are
subject to risks and uncertainties. Factors that could cause
actual results to differ materially from those currently
anticipated include, without limitation, risks relating to our
ability to obtain adequate financing and sustain our status as a
going concern; our limited operating history; the results of our
research and development activities, including uncertainties
relating to semiconductor process manufacturing; the development of
our XBAW® technology and products presently under development and
the anticipated timing of such development; our ability to protect
our intellectual property rights that are valuable to our business,
including patent and other intellectual property rights; our
reliance on third parties to complete certain processes in
connection with the manufacture of our products; product quality
and defects; existing or increased competition; our ability to
successfully manufacture, market and sell products based on our
technologies; the ability to achieve qualification of our products
for commercial manufacturing in a timely manner and the size and
growth of the potential markets for any products so qualified; our
ability to successfully scale our New York wafer fabrication
facility and related operations while maintaining quality control
and assurance and avoiding delays in output; the rate and degree of
market acceptance of any of our products; our ability to achieve
design wins from current and future customers; contracting with
customers and other parties with greater bargaining power and
agreeing to terms and conditions that may adversely affect our
business; risks related to doing business in foreign countries; any
security breaches or other disruptions compromising our proprietary
information and exposing us to liability; our ability to raise
funding to support operations and the continued development and
qualification of our products and the technologies underlying them;
our ability to service our outstanding indebtedness represented by
our $15.0 million principal amount of convertible senior secured
notes due in March 2021; and the impact of a pandemic or epidemic
or a natural disaster, including the COVID-19 pandemic, on our
operations, financial condition and the worldwide economy,
including its impact on our ability to access the capital markets;
our ability to maintain effective internal control over financial
reporting; and our ability to obtain and maintain the Trusted
Foundry accreditation of our New York wafer fabrication facility.
These and other risks and uncertainties are described in more
detail in the Risk Factors and Management’s Discussion and Analysis
of Financial Condition and Results of Operations sections of the
Company’s most recent Annual Report on Form 10-K and in
subsequently filed Quarterly Reports on Form 10-Q. Considering
these risks, uncertainties and assumptions, the forward-looking
statements regarding future events and circumstances discussed in
this document may not occur, and actual results could differ
materially and adversely from those anticipated or implied in the
forward-looking statements. You should not rely upon
forward-looking statements as predictions of future events. The
forward-looking statements included in this document speak only as
of the date hereof and, except as required by law, we undertake no
obligation to update publicly or privately any forward-looking
statements, whether written or oral, for any reason after the date
of this document to conform these statements to new information,
actual results or to changes in our expectations.
Contact:
COMPANY:
Tom Sepenzis
Akoustis Technologies
VP of Corporate Development & IR
(980) 689-4961
tsepenzis@akoustis.com
The Del Mar Consulting Group, Inc.
Robert B. Prag, President
(858) 794-9500
bprag@delmarconsulting.com
Akoustis Technologies (NASDAQ:AKTS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Akoustis Technologies (NASDAQ:AKTS)
Historical Stock Chart
From Apr 2023 to Apr 2024