Intellectual Property and Patents - The company currently holds 97 patents and has 31 pending patent applications as of September 1, 2024, covering its XBAW® RF filter technology[25] - As of September 1, 2024, the company's intellectual property portfolio includes 97 patents and 31 active and pending patent applications, with patents expiring between 2034 and 2040[76] - The company emphasizes the importance of protecting its intellectual property rights as central to its competitive position in the RF filter industry[25] - The company emphasizes the importance of maintaining a strong intellectual property position to compete effectively against larger competitors with more resources[80] Manufacturing and Technology Development - The manufacturing facility in Canandaigua, New York, spans 125,000 square feet and utilizes the first generation XBAW wafer process for high-performance RF filter circuits[24] - The company’s ability to scale its New York wafer fabrication facility while maintaining quality control is critical to its operations[9] - The company sources raw materials and process gases from multiple suppliers to ensure adequate supply as it ramps from R&D into high-volume manufacturing[73] - RFMi's supply chain relies heavily on Tai-Saw Technology Co., Ltd. for sourcing raw materials, with certain materials like HTCC ceramic packages being single-sourced, which poses risks for supply diversification[74] Market Engagement and Business Strategy - The company aims to engage with multiple wireless markets by providing standardized filters and customized solutions to meet customer specifications[26] - The company’s business model is designed to enable broader competition among front-end module manufacturers by marketing RF filter products to various OEMs[25] - The company’s strategy includes convincing customers in diverse industries, such as mobile phones and defense, to adopt its RF filter products[27] - The company plans to pursue RF filter design and R&D agreements, potentially subsidizing technology development costs and filter design costs while retaining ownership of its core XBAW technology[28] Financial Performance and Funding - The company has not achieved profitability and has funded operations largely through equity and debt securities[35] - The company entered into a securities purchase agreement to issue and sell 10,500,000 shares of Common Stock, generating gross proceeds of approximately $10.0 million[37] - An underwritten public offering of 23,000,000 shares of Common Stock was closed, resulting in net proceeds of approximately $10.4 million[38] - The company recorded an investment tax credit of $3.2 million during the fiscal year ended June 30, 2024, under the CHIPS Act, which provides a 25% refundable tax credit for domestic semiconductor manufacturing investments[90] Product Development and Market Trends - Two new bandedge RF filter products for Wi-Fi Automotive and Access Point applications are expected to ramp into production in the second half of calendar year 2024[29] - The company has shipped over 97 million XBAW filters to the 5G mobile, Wi-Fi, 5G infrastructure, and defense markets as of the end of fiscal 2024[54] - The projected increase in filter content in mobile phone front end modules is expected to drive significant growth in the RF Front End market, with annual revenue projected to reach $25 billion by 2027[52] - The demand for RF filters is driven by the transition to LTE and 5G technologies, with a significant increase in frequency bands creating a substantial opportunity in the RFFE industry[43] Legal and Regulatory Challenges - A jury awarded Qorvo approximately $38.6 million in damages related to a litigation case, raising substantial doubt about the company's ability to continue as a going concern[30][36] - The company incurred an aggregate of approximately $19.0 million in attorneys' fees and pre- and post-judgment interest awarded to Qorvo[36] - The company faces regulatory challenges from various governmental agencies, including the FCC, which may increase development and production costs and delay product launches[85] - Noncompliance with regulations could lead to significant financial penalties, including fines and damages, adversely affecting the company's financial condition[88] Research and Development - Research and development expenses totaled $30.0 million for the year ended June 30, 2024, compared to $33.2 million for the year ended June 30, 2023[57] - The company is currently in the "Beta" phase of its XP3F technology, having successfully completed Phase 1 of a contract with DARPA, and is pursuing additional government-funded projects[55] - The company has developed and introduced multiple new XBAW filters, focusing on improving the electromechanical coupling and quality factor of resonator technology[57] - The company plans to continue developing a series of filter designs targeting 4G/LTE, 5G, Wi-Fi, automotive, and defense frequency bands[46] Employment and Workforce - As of June 30, 2024, RFMi employed 117 full-time employees and plans to continue hiring for targeted positions to enhance technology and manufacturing capabilities[83] - The company is committed to diversifying its supply chain, although certain materials may not have alternative sources available in the foreseeable future[74]
Akoustis Technologies(AKTS) - 2024 Q4 - Annual Report