Akoustis Announces Third Quarter FY24 Financial Results (2024)

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Instead, these forward-looking statementsare 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 limited operating history; our inability to raise additional capital in order to continue as a going concern; our inability to generate revenues or achieve profitability; the failure of our common stock to meet the minimum requirements for continued listing on the Nasdaq Capital Market, the impact of a pandemic or epidemic or natural disaster, including the COVID-19 pandemic, the Russian-Ukrainian and Middle East conflicts and other sources of volatility on our operations, financial condition and the worldwide economy, including our ability to access the capital markets; increases in prices for raw materials, labor, and fuel caused by rising inflation; our inability to obtain adequate financing and sustain our status as a going concern; the results of our research and development activities; our inability to achieve acceptance of our products in the market; general economic conditions, including upturns and downturns in the industry; existing or increased competition; our inability to successfully scale our New York wafer fabrication facility and related operations while maintaining quality control and assurance and avoiding delays in output; contracting with customers and other parties with greater bargaining power and agreeing to terms and conditions that may adversely affect our business; the possibility that the anticipated benefits from business acquisitions will not be realized in full or at all or may take longer to realize than expected; the possibility that costs or difficulties related to the integration of acquired businesses’ operations will be greater than expected and the possibility of disruptions to our business during integration efforts and strain on management time and resources; risks related to doing business in foreign countries, including rising tensions between the United States and China; any cybersecurity breaches or other disruptions compromising our proprietary information and exposing us to liability; our limited number of patents; failure to obtain, maintain, and enforce our intellectual property rights; claims of infringement, misappropriation or misuse of third party intellectual property, including the lawsuit filed by Qorvo, Inc.in October 2021, that, regardless of merit, has resulted in significant expense; our inability to attract and retain qualified personnel; the outcome of current and any future litigation; our reliance on third parties to complete certain processes in connection with the manufacture of our products; product quality and defects; our inability to successfully manufacture, market and sell products based on our technologies; our ability to meet the required specifications of customers and achieve qualification of our products for commercial manufacturing in a timely manner; our failure to innovate or adapt to new or emerging technologies, including in relation to our competitors; our failure to comply with regulatory requirements; stock volatility and illiquidity; our failure to implement our business plans or strategies; our failure to maintain effective internal control over financial reporting; our failure to obtain or maintain a Trusted Foundry accreditation or our New York fabrication facility; and shortages in supplies needed to manufacture our products, or needed by our customers to manufacture devices incorporating our products.

Unaudited Reconciliations of Non-GAAP Financial MeasuresThree Months EndedMarch 31, 2024March 31, 2023(in thousands)GAAP operating loss$ (22,608)$ (17,282)Amortization of acquisition-related intangible assets 646 659 Recognition of acquisition-related promissory note 333 333Gain on sale of fixed assets - (121)Goodwill impairment loss8,051-Common stock issued for services 1,035 3,211 Non-GAAP operating loss$ (12,543)$ (13,200)Weighted average common shares outstanding - basic and diluted 91,281,779 68,195,181 Non-GAAP operating loss per common share - basic and diluted$ (0.14)$ (0.19)Three Months EndedMarch 31, 2024March 31, 2024(in thousands)GAAP net loss$ (23,308)$ (15,545)Change in fair value of contingent consideration - (268)Change in fair value of derivative liabilities (52) 383Amortization of acquisition-related intangible assets 646 659 Recognition of acquisition-related promissory note 333 333Debt discount amortization 152 131 Gain on sale of fixed assets -(121)Tax adjustments related to acquisitions-(2,420)Goodwill impairment loss8,051-Common stock issued for services 1,035 3,211 Non-GAAP net loss $ (13,143) $ (13,637)Weighted average common shares outstanding - basic and diluted 91,281,779 65,195,181 Non-GAAP net loss per common share - basic and diluted$ (0.14)$ (0.20)Nine Months Ended(in thousands)March 31, 2024March 31, 2024GAAP net loss$ (59,287)$ (48,140)Amortization of acquisition-related intangible assets 1,939 1,354 Recognition of acquisition-related promissory note 1,000 333Gain on sale of fixed assets 268 (105)Goodwill impairment loss8,051-Common stock issued for services 3,235 7,455 Non-GAAP net loss $ (44,794) $ (39,103)Weighted average common shares outstanding - basic and diluted 78,845,986 60,925,124 Non-GAAP net loss per common share - basic and diluted$ (0.57)$ (0.64)Nine Months Ended(in thousands)March 31, 2024March 31,2023GAAP net loss$ (59,147)$ (45,792)Change in fair value of contingent consideration - (1,438)Change in fair value of derivative liabilities (2,058) (456)Amortization of acquisition-related intangible assets 1,939 1,354 Recognition of acquisition-related promissory note 1,000 333Debt discount amortization 464 421 Gain on sale of fixed assets 268(105)Tax adjustments related to acquisitions -(2,420)Goodwill impairment loss8,051-Common stock issued for services 3,235 7,455 Non-GAAP net loss $ (46,248) $ (40,648)Weighted average common shares outstanding - basic and diluted 78,845,986 60,925,124 Non-GAAP net loss per common share - basic and diluted$ (0.59)$ (0.67) 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”).

Condensed Consolidated Statements of Operations(In thousands, except per share data)(Unaudited) For the ThreeMonths Ended March 31, 2024For the ThreeMonths Ended March 31, 2023For the NineMonths Ended March 31, 2024For the NineMonths Ended March 31, 2023Revenue$7,510$7,356$21,529$18,788Cost of revenue7,1618,47221,58320,200Gross profit (loss)349(1,116)(54)(1,412)Operating expensesResearch and development5,9717,34922,72925,079General and administrative expenses8,9358,81728,45321,650Other operating expenses8,051—8,051—Total operating expenses22,95716,16659,23346,729Loss from operations(22,608)(17,282)(59,287)(48,141)Other (expense) incomeInterest (expense) income(745)(510)(1,909)(1,955)Other (expense) income(5)(2)(4)(10)Change in fair value of contingent consideration—268—1,438Change in fair value of derivative liabilities52(383)2,058456Total other (expense) income(698)(627)145(71)Net loss before income taxes$(23,306)$(17,909)$(59,142)$(48,212)Income Taxes(2)2,364(5)2,420Net Loss$(23,308)$(15,545)$(59,147)$(45,792)Net loss per common share - basic and diluted$(0.26)$(0.23)$(0.75)$(0.75)Weighted average common shares outstanding - basic and diluted91,281,77968,195,18178,845,98660,925,124 The following non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP.

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Author / Journalist: Akoustis, Inc.

Category: Technology

Akoustis Announces Third Quarter FY24 Financial Results (2024)

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