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8-K - 8-K - Akoustis Technologies, Inc.s113475_8k.htm

 

Exhibit 99.1

 

O CTOBER 2018 INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY AKTS Investor Presentation 1

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY FORWARD - LOOKING STATEMENTS This document includes “forward - looking statements” within the meaning of Section 27 A of the Securities Act, and Section 21 E 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," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," “intend,” “forecast,” “seek,” "potential," "continue" and similar words, although some forward - looking statements are expressed differently . Forward - looking statements are neither historical facts nor assurances of future performance . 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 the results of our research and development activities, including uncertainties relating to semiconductor process manufacturing ; the development of our XBAW TM 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 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 ; the rate and degree of market acceptance of any of our products ; our ability to raise funding to support operations and the continued development and qualification of our products and the technologies underlying them ; and our ability to service our outstanding indebtedness . 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 . THESE MATERIALS DO NOT CONSTITUTE AN OFFER TO SELL, OR THE SOLICITATION OF ANY OFFER TO BUY, ANY SECURITIES OF AKOUSTIS TECHNOLOGIES, INC . , OR OF ANY OTHER ENTITY WHATSOEVER . ANY REPRESENTATION TO THE CONTRARY SHOULD BE IGNORED . “Akoustis®”, the Akoustis logo, “ BulkONE ®” and “XBAW TM ” are trademarks or registered trademarks of Akoustis Technologies, Inc . and/or its subsidiaries . 2

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY AKOUSTIS AT A GLANCE 3 • Ticker: AKTS (NASDAQ) • Corporate HQ: Huntersville, NC • Manufacturing (fully integrated): Canandaigua, NY • Founded: 2014 • Employees: 76 • $2.6 billion addressable market in 2017 , and expected to grow to $4.8B by 2021 – the fastest growing segment of $14B RFFE (radio frequency front end) (1) • Positioned to capitalize on escalating demands for mobile data requiring higher frequency operation (5G and unlicensed bands/ WiFi ) • Customer engagement, testing and pre - production orders from OEM, ODM, SoC and RF module maker partners across target markets • Vertically - integrated design and manufacturing (IDM) business model in premium RF filter market enables streamlined execution, quality assurance and cost efficiencies • Experienced management team with expertise in radio frequency technologies and microelectromechanical systems (“ MEMS ”) • Akoustis Technologies (“Akoustis” or “the Company”) designs and manufactures patented single crystal radio frequency (“ RF ”) BAW filters for the 4G/5G, WiFi, infrastructure and military markets • Product advantages include power handling, bandwidth, size and speed • First BAW RF manufacturing line completed and producing RF filters from a wafer process which is in control and predictable • Commercial portfolio includes 5.2 GHz BAW RF filter (WiFi) and 3.8 GHz filter (Radar); new contracts to develop two 5G Mobile Infrastructure filters (3.5 GHz, 3.6 GHz) and two 4G/LTE Infrastructure filters (1.8 GHz) Corporate Headquarters Huntersville, NC Snapshot Company Overview Investment Highlights Shares Outstanding ( 09/30 / 18 ) 22.4 M Debt (09/30/18) $ 15.0 M Cash ( 09/30/18 ) $ 9.1 M (1) Source: Mobile Experts 2016, March 2017 Update.

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY JEFF SHEALY FOUNDER & CEO Former VP & GM at RFMD (Qorvo) Co - founded RF Nitro (sold to RFMD) 22 YRS Industry Exp., MBA & PhD JOHN KURTZWEIL CFO Former CFO at Wolfspeed CREE, Extreme Networks; 30 YRS Industry Exp., CPA & MBA DAVID AICHELE VP BUS DEV Former Director RFMD (Qorvo) & Exec VP Private Company 23 YRS Industry Exp.,BSEE & MBA ROHAN HOULDEN VP ENG Former GM at Qorvo & Product Line Mgr. at Conexant 27 YRS Industry Exp., BSEE & MBA MARY WINTERS VP WAFER FAB Former Director MEMS ITC & Sr. Eng. Eastman Kodak 18 YRS Industry Exp., BSCE & MS UNIVERSITY PARTNERS COMMERCIAL PARTNERS National Science Foundation (NSF) EXECUTIVE LEADERSHIP & PARTNERS 4

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY JERRY NEAL CO - CHAIRMAN, DIRECTOR ART GEISS CO - CHAIRMAN, DIRECTOR STEVE DENBAARS DIRECTOR JEFF MCMAHON DIRECTOR SUZANNE RUDY DIRECTOR STEVE MILLER DIRECTOR SEASONED BOARD MEMBERS 5 Founded RFMD (now Qorvo) ; 35 YRS+ RF and Wireless Industry Experience Former VP Operations RFMD (now Qorvo) ; previous Alpha mgmt. (now Skyworks) Co - founded Nitres, Soraa, Soraa Laser Diode; UCSB Professor; Expert in III - N Materials Director at North Highland, 17 YRS+ Mgmt. Consulting Experience Former VP of Tax and Treasurer at Qorvo, UNC, UCSB degrees; Financial Expert Former President/CEO and Chairman at Sawtek ; Former Director at TriQuint

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY Mobile device RF complexity increasing: Multiband • Today greater than 40 bands • Next generation up to 100 bands • More bands drive greater co - existence needs Multimode • Next generation includes 2G, 3G, 4G, 5G • Expanding high band spectrum Multi Connectivity • Data speeds driving architecture • Utilizing unlicensed 5GHz spectrum Akoustis’ RF filter technology supports high band spectrum in smartphones enabling faster internet speeds MOBILE DEVICES REQUIRE RF FILTERS TO CONNECT 6

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY (1) Source: Barclays, Semiconductor Market Perspectives, 2017 . (2) Source: Mobil e Experts 201 8. RF Filter – FASTEST Growing Segment in the RF Front End (RFFE) $24.50 Early 5G Content 2020 RF MARKET DYNAMICS 7 RFFE values signal ‘selectivity’ over ‘manipulation’ $2.6B $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 2016 2017 2018 2019 2020 2021 Annual Revenue ($ B) (2) RF Front End (RFFE) TAM BAW Filter SAW Filter MIPI/CMOS Controllers Antenna Tuning Switches LNA Power Amplifiers $2.6B $4.8B

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY AKOUSTIS TARGET END MARKETS 4G LTE MOBILE 5G MOBILE WiFi BTS Military (1) Source: Mobile Experts 20 18. (2) Source: Mobile Experts 2018, ABI 2017, Akoustis . 1.8 - 3 GHz BAW Discrete/Multiplex Filter 3 - 6 GHz BAW Discrete/Multiplex Filter 2.4/5.2/5.7GHz BAW Discrete Filter 1.8 - 6 GHz BAW Discrete/Multiplex Filter 1 - 10 GHz Discrete, Multiplexer, Integrated Switch Filters Improve battery life & reduce dropped calls Size reduction, Improve battery life & reduce dropped calls Size reduction support 5 GHz, multiband simultaneous operation Size reduction support higher power, improve receive sensitivity Size reduction support higher power, $ 10.6 Billion (1) $ 1.0 Billion (2) 8 Application Akoustis Solutions Value Proposition 2020 Filter Market Size Smartphones, Tablets, Pucks Tri - Band Routers, Set - Top Boxes, CPE FD - MIMO, Small Cells Radar, Milcom

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY WHY SINGLE CRYSTAL FOR BAW? 9 High power, wide bandwidth RF filters operating at high frequency High s ound v elocity High m echanical c oupling High power handling Piezo Thickness (A) Sound Velocity Poly Piezo Higher Single Crystal Piezo Admittance Theta 4.7 4.8 4.9 5.0 5.1 5.2 Frequency (GHz) K t 2 >10% Input Power O u t p u t P o w e r Poly Piezo Single Crystal Piezo 3.7dB (2.3x) Higher (1) Source: Akoustis Measured Data, 2018. (2) Source: Akoustis ’ 2018 IEEE International Ultrasonics Symposium (IUS) Paper.

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY COMPETING BAW FILTER TECHNOLOGY 10 Polycrystalline Piezo Single Crystal Piezo Topside Air Cavity Topside Air Cavity Topside Air Cavity Backside Parasitic Backside Air Cavity Backside Air Cavity Polycrystalline Piezo Single Crystal Bulk Acoustic Resonator ( XBAW TM ) Poly Film Bulk Acoustic Resonator (FBAR) Poly Solidly - Mounted Resonator (SMR)

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY SINGLE CRYSTAL BAW (XBAW™) TECHNOLOGY: 1 to 7 GHz 11 FOM - Power Performance Frequency (GHz) 1 5 2 3 4 6 0 7 8 TC - SAW SAW Poly Crystal BAW • Single crystal XBAW enables high power performance RF filters from 1 to 7 GHz • Akoustis is first in market for 5 .2 GHz WiFi filters; 2 nd high - band (5.6GHz) WiFi solution in development • Announced contract to develop 5G Infrastructure base station filters • Pursuing new 5G engagements for Mobile where higher performance RF filters are required Military Automotive WiFi 4G High Bands 5G Mid Bands Market / Application n7/38/41 B25/3/40 L - Band S - Band C - Band DSRC 5.2/5.6/5.8GHz 2.4GHz B7/41 B42/43/48/49 n77/78 n79 6.3/6.7GHz Single Crystal BAW IHP SAW Micro RF Filter Technologies new

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY EXPANDING INTELLECTUAL PROPERTY (IP) PORTFOLIO • Foundational single crystal BAW devices and RF filters • Vertical portfolio from platform substrates to system application • 1 8 Patents (1) , 38 patents pending plus numerous trade secrets • Key University IP from Cornell in materials (1) Includes Akoustis issued patents, Cornell patent under license (see PR 9 - 7 - 16), and UCSB patents under agreement (see PR 9 - 22 - 15). http://www.akoustis.com/patents/ 12 Akoustis IP Portfolio

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY • Acquired 122,000 sq. ft. Silicon MEMS Wafer Fab Facility (June 2017), including 30,000 sq. ft. class 100/1000 clean room, 150 - mm wafer fab tools, 57 - acres of real property and MEMS Operations team • Consolidated Company’s supply chain (piezo materials, wafer fab, selective resonator trimming) into one turn - key facility with shorter cycle time and scalable manufacturing capacity (estimated up to 150,000 6” wafers starts per year when fully equipped) • ISO 9001:2015 registered quality management system • Completed first generation XBAW (XB1) process (July 2018) • Company transform ing into an Integrated Design and Manufacturer (IDM) QUALIFIED XBAW WAFER FAB – CANANDAIGUA, NY 13

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY TARGET MILESTONES (BY MARKET) 14 • Q4 CY18: First 5.2 GHz WiFi pre - production order • Q4 CY18: Deliver 5.6 GHz samples to target customers • 1H CY19: Complete wafer - level packaging design • 2H CY19: Design win from mobile customer • 1H CY19: Deliver 5G filter samples to potential customers • 2H CY19: Receive 5G infrastructure order • Q4 CY18: Ship 3.8 GHz filter against open production purchase order • Q4 CY18: Deliver two 4G LTE filter product prototypes for open purchase order • 1H CY19: Ship production product to current 4G LTE customer WiFi 5G Mobile 5G Infrastructure 4G Infrastructure / Defense 5x manufacturing capacity expansion planned over next 2 years to support business

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY RECENT DEVELOPMENTS 15 • October 4, 2018 – Recorded first RF BAW filter product revenue in September and received second production order for the AKF - 1938 (3.8 GHz) from a military OEM specializing in non - mobile communication systems • October 1, 2018 – Announced AKF - 1252 (5.2 GHz) filter design has been locked and is in pre - production; received first order from a RF distributor and testing with other potential customers, with the first order for WiFi applications expected in Q4 CY18 • October 1, 2018 – Announced an order from a 5G mobile infrastructure customer • August 1, 2018 – Added first CBRS (Citizens Broadband Radio Service) customer with purchase order of 3.6 GHz BAW RF filters • July 16, 2018 – Announced AKF - 1938 (3.8 GHz) BAW RF filter design win and commercial production order from a military OEM specializing in non - mobile communication systems • July 9, 2018 – Completed wafer technology qualification (XB1) for single crystal BAW RF filter products • June 20, 2018 – Introduced the industry’s first 5.2 GHz BAW RF co - existence filter , targeted towards future 4G LTE and 5G mobile devices • May 11, 2018 – Announced two new purchase orders for two 4G LTE BAW RF filters from a new tier - one mobile infrastructure OEM customer

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY GROWING, HIGH - FREQUENCY PRODUCT PORTFOLIO Band n78 Band n79 Band n77 Center Frequency (GHz) 3 6 AKF - 1335 AKF - 1652 AKF - 1252 AKF - 1125D AKF - 1125U AKF - 1256 AKF - 1938 AKF - 1336 Mobile Defense/Radar Infrastructure WiFi Bandwidth Performance 3.55 - 3.7 GHz 3.55 - 3.7 GHz 3.4 - 3.8 GHz 3.4 - 3.8 GHz 3.4 - 3.7 GHz 3.46 - 3.8 GHz 3.4 - 3.7 GHz 3.6 – 4.2 GHz 3.6 - 3.8 GHz 3.3 - 3.6 GHz 3.7 – 4.2 GHz 4.8 - 5.0 GHz 3.4 - 3.7 GHz 5.9 – 7.1 GHz (not yet ratified) 5.9 – 6.4 GHz 4.4 – 4.9 GHz 600 MHz (2X35 MHz) 600 MHz (2X35 MHz) 700 MHz Source: Qualcomm, Oct 2017, Huawei, 2017. Unlicensed 5 – 5.9 GHZ Global Spectrum Allocation Primary product focus is 3 - 6 GHz United States Canada European Union United Kingdom Germany France Italy China South Korea Japan Australia 16 Legend

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY MOBILE WIRELESS / SMARTPHONE • Focus on new 3 - 6 GHz spectrum for 5G • 5G mobile design cycles ongoing to support late CY19 handsets launch • WiFi shift from dual - band to tri - band • MIMO/MU - MIMO architectures growing; driving radio content including filters • Value proposition: power, bandwidth, size Application Product Focus / Market Dynamics 17 Target Customers OEM / Transceiver RFFE Module Amps Filters Switches Ant. RFFE

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY Application BAW CAN ADDRESS HIGH - FREQUENCY WIFI BANDS • First to market with 5.2 GHz RF filter to replace larger dielectric resonator (DR) discrete RF filters • 5.6 GHz RF filter product samples expected Q4 CY18 • Focus on retail and enterprise models • Most platforms utilize discrete RF filters • New retail models every 6 months, new enterprise models every 12 - 18 months Target Customers 18 Product Focus / Market Dynamics

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY 19 Addresses 5 GHz co - existence in Tri - Band WiFi routers Industry Leading 5 GHz BAW Performance AKF - 1252 RF Product Features Reduced Size Ultra - small footprint 2.5 x 2 x 0.9 mm Laminate module Size reduction supports growing MU - MIMO complexity Frequency GHz Performance AKF - 1252 RF Filter solution optimized for Tri - Band WiFi Routers Wide Bandwidth Solution for U - NII - 1+2A Band Low Loss <1.2dB typical in U - NII - 1+2A band High Rejection >52dB in U - NII - 2C+3 band High Power Rating +30dBm maximum SPEC COMPLIANT 5.2 GHz BAW RF FILTER PRODUCT AVAILABLE

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY KEY ADVANTAGE FOR WIFI : SIZE REDUCTION Tri - band WiFi Architecture 3.0mm 8.2mm AKF - 1252 Akoustis Akoustis 5 GHz BAW filter is 2 3 x smaller : 103 mm 3 vs. 4.5 mm 3 4.2mm 2.5mm x 2.0mm x 0.9mm Source: Link - Sys AC2200 MU - MIMO Tri - Band Router . 20 Tri - Band 2.4/5.2/5.7 GHz WiFi Router (2x2 MIMO) 5.2GHz Radio

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY HISTORICAL FINANCIALS

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY INCOME STATEMENT 22 Fiscal Year Ended June 30, ($ in thousands, except per share data) 2018 2017 Revenue $1,208 $486 Cost of revenue 1,019 - Gross profit $188 $486 Operating expenses Research and development $13,267 $5,013 General and administrative expenses 8,804 6,157 Loss on disposal of fixed assets 45 - Impairment of assets held for sale 350 - Total operating expenses $22,466 $11,170 Loss from operations ($22,278) ($10,684) Other (expense) income Other income $0 - Interest income (329) 2 Bargain purchase - 1,726 Rental income 313 - Change in FV of contingent real estate liability 501 - Change in FV of derivative liabilities 54 (877) Total other income $539 $850 Net loss ($21,739) ($9,833) Basic and diluted net loss per share ($1.04) ($0.58) Source: Company’s FY2018 10 - K.

 

 

INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY BALANCE SHEET 23 June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Assets Liabilities Cash and cash equivalents $14,817 $9,632 Accounts payable and accrued expenses $2,593 $1,336 Accounts receivable 215 - Deferred revenue 53 15 Inventory 58 188 Total current liabilities $2,646 $1,351 Prepaid expenses 306 158 Deposits 484 43 Long-term Liabilities Total current assets $15,879 $10,021 Contingent real estate liability $1,230 $1,731 Convertible notes payable, net 11,465 - Property and equipment, net 12,820 7,854 Other long term liabilities 117 - Total long-term liabilities $12,812 $1,731 Intangibles, net 264 207 Total Liabilities $15,458 $3,081 Assets held for sale, net 333 - Stockholders' equity Other assets 11 11 Preferred stock - - Total assets $29,308 $18,092 Common stock 22 19 Additional paid in capital 52,074 31,500 Accumulated deficit (38,247) (16,508) Total stockholders' equity $13,850 $15,011 Total liabilities and stockholders' equity $29,308 $18,092 ($ in thousands) Source: Company’s FY2018 10 - K.