Akoustis Technologies, Inc. - FORM 8-K/A - EX-99.3 - EXHIBIT 99.3

Attached files

file	filename
EX-23.1 - EXHIBIT 23.1 - Akoustis Technologies, Inc.	s107717_ex23-1.htm
8-K/A - 8-K/A - Akoustis Technologies, Inc.	s107717_8ka.htm

Exhibit 99.3

AKOUSTIS TECHNOLOGIES, INC.

PRO FORMA FINANCIAL INFORMATION

TABLE OF CONTENTS

		Page No.

Unaudited Condensed Consolidated Pro-forma Financial Information

Unaudited Pro-forma Consolidated Balance Sheets as of March 31, 2017		F-1

Unaudited Pro-forma Consolidated Statements of Operations for the year ended June 30, 2016		F-2

Unaudited Pro-forma Consolidated Statement of Operations for the nine months ended March 31, 2017		F-3

Notes to the Unaudited Pro-forma Consolidated Financial Statements		F-4

Unaudited condensed consolidated pro–forma financial statements

Unaudited pro forma consolidated balance sheets as of March 31, 2017

	Akoustis			Acquired Business		Consolidated								Consolidated
	As of			As of		As of			Proforma AJEs					As of
	March 31, 2017			March 31, 2017		March 31, 2016			DR (CR)			#		March 31, 2016
	(unaudited)			(unaudited)		(unaudited)								(unaudited)

Assets
Current Assets:
Cash and cash equivalents	$	9,425,699		$	—	$	9,425,699		$	(2,846,049	)		1	$	6,579,650
Inventory		49,534			—		49,534			96,049			1		145,583
Prepaid expenses		125,714			—		125,714								125,714
Deposits		688,651			—		688,651								688,651
Total Current Assets		10,289,598			—		10,289,598			(2,750,000	)				7,539,598

Land		—			—		—			1,000,000			1		1,000,000

Building		—			—		—			3,000,000			1		3,000,000

Property and equipment, net		688,162			—		688,162			2,124,650			1		2,812,812

Intangible assets		117,854			—		117,854			81,773			1		199,627

Other		10,715			—		10,715								10,715
Total Assets	$	11,106,329		$	—	$	11,106,329		$	3,456,423				$	14,562,752

Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable and accrued expenses	$	1,271,794		$	—	$	1,271,794		$					$	1,271,794
Contingent real estate liability		—			—		—			1,730,542			1		1,730,542
Deferred revenue		30,500			—		30,500								30,500
Total Current Liabilities		1,302,294			—		1,302,294			1,730,542					3,032,836


Total Liabilities		1,302,294			—		1,302,294			1,730,542					3,032,836

Commitments and contingencies

Stockholders’ Equity:
Preferred stock, par value $0.001: 5,000,000 shares authorized; none issued and outstanding		—			—		—								—
Common stock, $0.001 par value; 45,000,000 shares authorized; 18,105,349 shares issued and outstanding		18,105			—		18,105								18,105
Additional paid-in capital		23,993,581			—		23,993,581								23,993,581
Accumulated deficit		(14,207,651	)		—		(14,207,651	)		1,725,881			1		(12,481,770	)
Total Stockholders’ Equity		9,804,035			—		9,804,035			1,725,881					11,529,916
Total Liabilities and Stockholders’ Equity	$	11,106,329		$	—	$	11,106,329		$	3,456,423				$	14,562,752

F-1

Unaudited pro forma consolidated statements of operations for the year ended June 30, 2016


	Akoustis For the Year Ended			Acquired Business For the Year Ended			Year Ended 6/30/16 Proforma								Proforma
	June 30, 2016			June 30, 2016			Consolidation			Proforma AJEs					Consolidation
	(unaudited)			(unaudited)			(unaudited)			DR (CR)			#		(unaudited)

REVENUES
Revenue	$	254,834		$	5,059,665		$	5,314,499		$					$	5,314,499
Total Revenues		254,834			5,059,665			5,314,499								5,314,499

OPERATING EXPENSES:
Research and development		1,758,701			—			1,758,701								1,758,701
General and administrative expenses		2,935,299			6,563,100			9,498,399			424,930 103,318 5,841			2 3 4		10,032,488

Total Operating Expenses		4,694,000			6,563,100			11,257,100			534,098					11,791,189

Loss from Operations		(4,439,166	)		(1,503,435	)		(5,942,601	)		(534,089	)				(6,476,690	)

Other income (expense)
Other income		500			—			500								500
Interest income		1,339			—			1,339								1,339
Change in fair value of derivative liabilities		(968,840	)		—			(968,840	)							(968,840	)
Total other income (expense)		(967,001	)		—			(967,001	)		—					(967,001	)

Net Loss	$	(5,406,167	)	$	(1,503,435	)	$	(6,909,602	)	$	(534,089	)			$	(7,443,691	)

Net loss per common share - basic and diluted	$	(0.40	)	$	(0.00	)	$	(0.52	)	$	(0.00	)			$	(0.56	)

Weighted average common shares outstanding-basic and diluted		13,349,482			0			13,349,482			—					13,349,482

F-2

Unaudited pro forma consolidated statements of operations for the nine months ended March 31, 2017

	Akoustis			Acquired Business			Nine Months
	For the Nine Months Ended			For the Nine Months Ended			Ended 3/31/17 Proforma								Proforma
	31-Mar-17			31-Mar-17			Consolidation			Proforma AJEs					Consolidation
	(unaudited)			(unaudited)			(unaudited)			DR (CR)			#		(unaudited)

REVENUES
Revenue	$	468,032		$	3,109,542		$	3,577,574		$	(48,000	)		8	$	3,529,574
Total Revenues		468,032			3,109,542			3,577,574			(48,000	)				3,529,574

OPERATING EXPENSES:
Research and development		2,590,698			—			2,590,698								2,590,698
General and administrative expenses		4,533,652			4,907,961			9,441,613			318,698 77,489 4,381			5 6 7		9,794,181
											(48,000	)		8

Total Operating Expenses		7,124,350			4,907,961			12,032,311			352,568					12,384,879

Operating Income (Loss)		(6,656,318	)		(1,798,419	)		(8,454,737	)		(400,568	)				(8,855,305	)

Other income (expense)
Interest income		970			—			970								970
Change in fair value of derivative liabilities		(877,490	)		—			(877,490	)							(877,490	)
Total other income (expense)		(876,520	)		—			(876,520	)		—					(876,520	)

Net Income (Loss)	$	(7,532,838	)	$	(1,798,419	)	$	(9,331,257	)	$	(400,568	)			$	(9,731,825	)

Net loss per common share - basic and diluted	$	(0.46	)	$	(0.00	)	$	(0.57	)	$	(0.00	)			$	(0.59	)

Weighted average common shares outstanding-basic and diluted		16,419,225			0			16,419,225			—					16,419,225

F-3

AKOUSTIS TECHNOLOGIES, INC.

Notes to Unaudited Pro Forma Consolidated Financial Statements

Basis of Presentation

The following unaudited pro forma consolidated financial statements of Akoustis Technologies, Inc., (the “Company”) and the acquired assets from The Research Foundation for the State University of New York (“RF-SUNY”) and Fuller Road Management Corporation (“FRMC”), an affiliate of RF-SUNY (“Acquired Assets”) are provided to assist you in your analysis of the financial aspects of the proposed consolidated entity on a non-generally accepted accounting principle basis.

The unaudited pro forma consolidated statements of operations for the fiscal year ended June 30, 2016 and the nine months ended March 31, 2017 combined the historical statements of operations of the Company for the fiscal year ended June 30, 2016 with the fiscal year end special purpose combined statements of revenues and direct expenses of the Acquired Assets and the nine-month period ended March 31, 2017 of the Company and the nine-month period ended March 31, 2017 of the Acquired Assets.

The unaudited pro forma condensed combined balance sheet combines the historical balance sheets of the Company and the Acquired Assets as of March 31, 2017.

The pro forma is presented as if the below transaction was accounted for as an acquisition.

Acquisition of STC-MEMS

On March 23, 2017, Akoustis Technologies, Inc. (the “Company”) entered into a Definitive Asset Purchase Agreement (the “AP Agreement”) and a Definitive Real Property Purchase Agreement (the “RP Agreement”) (collectively, the “Agreements”) with The Research Foundation for the State University of New York (“RF-SUNY”) and Fuller Road Management Corporation (“FRMC”), an affiliate of RF-SUNY (collectively, “Sellers”) to acquire certain specified assets, including, the Smart Systems Technology & Commercialization Center (STC-MEMS), as well as the real estate and improvements associated with the facility (collectively the “FRMC Assets”). The facility, located in Canandaigua, New York, houses the operations of STC-MEMs (the assets and real estate and improvements referred to together herein as the “STC”) which was created in 2010 by RF-SUNY as an economic development project. The purpose of the initiative was to explore different technology opportunities with the goal of being a vertically integrated provider of foundry services that would offer its customers the capacity, infrastructure and operational capabilities of semiconductor and advanced manufacturing for aerospace, biomedical, communications, defense, and energy markets. The Company also agreed to assume substantially all the on-going obligations of STC incurred in the ordinary course of business including the 29 employees employed by RF-SUNY. The purchase closed on June 26, 2017.

The Company acquired STC through its wholly-owned subsidiary, Akoustis Manufacturing New York, Inc., (“Akoustis NY”), a Delaware corporation.

The purchase price paid for the transaction was an aggregate of approximately $4.48 million consisting of (i) $2.84 million in cash consideration and (ii) assumption of contingent real estate liability of approximately $1.73 million.

F-4

Pro-forma Adjustments

The pro-forma financial statements give effect to the following transactions as if they had occurred on the first day of the periods presented:

To record the payment of $2,846,049 and the assumption of a contingent real estate liability of $1,730,542 by Akoustis for the purchase of real estate with an appraised value of $4,000,000, fixed assets with an appraised value of $2,124,650; inventory for $96,049, and customer relationships of $81,773, resulting in a bargain purchase option of $1,725,881.

To record depreciation of the fixed assets acquired for a full year with a five-year depreciable life on a straight-line basis as if they were acquired at the beginning of the fiscal year.

To record depreciation of the building acquired for a full year with an eleven-year depreciable life on a straight-line basis as if they were acquired at the beginning of the fiscal year

To record amortization of the customer relationships acquired for a full year with a fourteen-year amortizable life on a straight-line basis as if they were acquired at the beginning of the fiscal year

To record depreciation of the fixed assets acquired for the nine-month period with a five-year depreciable life on a straight-line basis as if they were acquired at the beginning of the interim nine-month period ending March 31, 2017.

To record depreciation of the building acquired for the nine-month period with an eleven-year depreciable life on a straight-line basis as if they were acquired at the beginning of the interim nine-month period ending March 31, 2017.

To record amortization of the customer relationships acquired for the nine-month period with a fourteen-year amortizable life on a straight-line basis as if they were acquired at the beginning of the interim nine-month period ending March 31, 2017.

To eliminate related party transactions of $48,000 for Akoustis Inc. payment of fabrication services invoices to RF-SUNY in the nine-month period ending March 31, 2017.

F-5

Akoustis Technologies, Inc. - FORM 8-K/A - EX-99.3 - EXHIBIT 99.3 - October 6, 2017

Attached files

Akoustis Technologies, Inc. Reports