Akoustis Technologies(AKTS) - 2023 Q3 - Quarterly Report

PART I — FINANCIAL INFORMATION Presents Akoustis Technologies, Inc.'s unaudited condensed consolidated financial statements and notes for March 31, 2023, and June 30, 2022 ITEM 1. FINANCIAL STATEMENTS Presents Akoustis Technologies, Inc.'s unaudited condensed consolidated financial statements and detailed notes for the periods ended March 31, 2023, and June 30, 2022 Condensed Consolidated Balance Sheets Summarizes the Company's financial position, including assets, liabilities, and equity, as of March 31, 2023, and June 30, 2022 | Metric (in thousands) | March 31, 2023 | June 30, 2022 | | :-------------------- | :------------- | :------------ | | Cash and cash equivalents | $52,749 | $80,485 | | Total current assets | $68,219 | $91,731 | | Total Assets | $157,505 | $161,338 | | Total current liabilities | $11,807 | $12,658 | | Total Liabilities | $57,046 | $57,908 | | Total Stockholders' Equity | $100,459 | $103,430 | Condensed Consolidated Statements of Operations Details the Company's revenues, costs, and net loss for the three and nine months ended March 31, 2023, and 2022 | Metric (in thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Nine Months Ended March 31, 2023 | Nine Months Ended March 31, 2022 | | :-------------------- | :-------------------------------- | :-------------------------------- | :------------------------------- | :------------------------------- | | Revenue | $7,356 | $4,607 | $18,788 | $10,146 | | Cost of revenue | $8,472 | $5,370 | $20,200 | $12,821 | | Gross profit (loss) | $(1,116) | $(763) | $(1,412) | $(2,675) | | Total operating expenses | $16,166 | $14,035 | $46,729 | $40,223 | | Loss from operations | $(17,282) | $(14,798) | $(48,141) | $(42,898) | | Net Loss | $(15,545) | $(14,825) | $(45,792) | $(42,920) | | Net loss per common share - basic and diluted | $(0.23) | $(0.27) | $(0.75) | $(0.81) | Condensed Consolidated Statements of Changes in Stockholders' Equity Outlines changes in the Company's equity, including common stock, additional paid-in capital, and accumulated deficit | Metric (in thousands) | March 31, 2023 | December 31, 2022 | | :-------------------- | :------------- | :---------------- | | Common Stock Par Value | $72 | $58 | | Additional Paid In Capital | $352,977 | $316,065 | | Accumulated Deficit | $(252,590) | $(237,045) | | Total Equity | $100,459 | $79,078 | - For the nine months ended March 31, 2023, common stock issued for cash, net of issuance costs, contributed $32,026 thousand to additional paid-in capital. Stock-based compensation added $7,454 thousand, and common stock issued in acquisition added $1,690 thousand[16] Condensed Consolidated Statements of Cash Flows Presents the Company's cash inflows and outflows from operating, investing, and financing activities | Metric (in thousands) | Nine Months Ended March 31, 2023 | Nine Months Ended March 31, 2022 | | :-------------------- | :------------------------------- | :------------------------------- | | Net Cash Used in Operating Activities | $(36,120) | $(33,273) | | Net Cash Used in Investing Activities | $(23,930) | $(25,556) | | Net Cash Provided by Financing Activities | $32,314 | $26,378 | | Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | $(27,736) | $(32,451) | | Cash, Cash Equivalents and Restricted Cash - End of Period | $52,749 | $55,871 | Notes to the Condensed Consolidated Financial Statements Provides detailed explanations and disclosures supporting the condensed consolidated financial statements Note 1. Organization Describes Akoustis Technologies, Inc.'s business, including its RF filter products, XBAW® technology, and recent acquisitions - Akoustis Technologies, Inc. develops, designs, and manufactures innovative radio frequency (RF) filter products for the wireless industry, utilizing its proprietary XBAW® technology and an integrated device manufacturing (IDM) business model. The company also sells complementary surface acoustic wave (SAW) products through its RFM Integrated Device, Inc. subsidiary and offers back-end semiconductor supply chain services via Grinding & Dicing Services, Inc., acquired in January 2023[22] Note 2. Liquidity Assesses the Company's ability to meet its short-term and long-term financial obligations - As of March 31, 2023, the Company had $52.7 million in cash and cash equivalents and $56.4 million in working capital[23] - The Company expects these funds to be sufficient for operations beyond the next twelve months, supported by $32.0 million net proceeds from a January 2023 public offering[24] - However, the Company has historically incurred operating losses and relies on additional financing, with $48.0 million remaining available under its ATM Sales Agreement[25] Note 3. Summary of Significant Accounting Policies Outlines the key accounting principles and methods used in preparing the financial statements - The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP and SEC rules for interim financial information[27] - There have been no material changes to the Company's significant accounting policies since the 2022 Annual Report[28] - The statements include accounts of Akoustis, Inc., RFM Integrated Device, Inc., and Grinding & Dicing Services, Inc., with all significant intercompany transactions eliminated[30] Note 4. Revenue Recognition from Contracts with Customers Explains the Company's policies and methods for recognizing revenue from its various customer contracts - The Company's primary revenue streams are foundry fabrication services (including XBAW foundry, NRE, and back-end supply chain services) and product sales (RF filters and amps)[32] - Revenue recognition occurs either over time or at a point in time, depending on contract terms for performance obligation satisfaction and title transfer[33] Revenue by Segment and Geographic Region (in thousands) | Geographic Region | Foundry Fabrication Services Revenue (3M Ended Mar 31, 2023) | Product Sales Revenue (3M Ended Mar 31, 2023) | Total Revenue (3M Ended Mar 31, 2023) | | :---------------- | :----------------------------------------- | :---------------------------- | :------------------------------------ | | Americas | $3,064 | $992 | $4,056 | | Asia | $271 | $2,420 | $2,691 | | Europe | $63 | $546 | $609 | | Total | $3,398 | $3,958 | $7,356 | | Geographic Region | Foundry Fabrication Services Revenue (9M Ended Mar 31, 2023) | Product Sales Revenue (9M Ended Mar 31, 2023) | Total Revenue (9M Ended Mar 31, 2023) | | :---------------- | :----------------------------------------- | :---------------------------- | :------------------------------------ | | Americas | $4,914 | $3,123 | $8,037 | | Asia | $1,244 | $7,254 | $8,498 | | Europe | $63 | $2,179 | $2,242 |