Akoustis Technologies, Inc.

Climate Impact & Sustainability Data (2021, 2022, 2024)

Impact of the COVID-19 pandemic on operations, financial condition, and ability to access capital markets.
Inability to generate revenues or achieve profitability.
Inability to obtain adequate financing and sustain operations.
Competition from established BAW filter suppliers.
Scaling manufacturing operations while maintaining quality control.
Shortages in supplies needed for manufacturing.

Implemented social distancing measures, remote work, and shift changes to mitigate COVID-19 risks.
Pursuing RF filter design and R&D development agreements and potential joint ventures.
Focusing on commercialization of wide bandwidth RF filters.
Developing a series of filter designs for 4G/LTE, 5G, WiFi, and defense frequency bands.
Continuously improving manufacturing yields and quality control.

Impact of the COVID-19 pandemic on operations, financial condition, and access to capital markets.
Increases in prices for raw materials, labor, and fuel due to rising inflation.
Inability to obtain adequate financing and sustain its status as a going concern.
Challenges in scaling its New York wafer fabrication facility while maintaining quality control and avoiding delays in output.
Supply chain disruptions due to global shortages in manufacturing capacities and COVID-19 containment measures in China.
Intense competition in the RF filter market.
Risks related to doing business in foreign countries and having counterparties based in foreign countries, including geopolitical changes in China-Taiwan relations and sanctions against Russia.

Implemented proactive, precautionary actions to protect employee health and safety in response to the COVID-19 pandemic.
Actively monitoring the COVID-19 situation and taking further actions to alter business operations as needed.
Carefully maintaining and increasing key inventory levels to manage the impact of supply shortages.
Incurring higher costs to secure available inventory and extending purchase commitments with suppliers.
Focusing on superior filter designs and a pure-play filter supplier business model to compete effectively.
Implementing a compliance program to ensure product offerings meet environmental regulations.
Intending to diversify its supply chain for RFMi products.

Maintaining relationships with multiple suppliers for most raw materials and components, but acknowledging dependence on a limited number of sole-source suppliers.

Qorvo Litigation resulted in a jury verdict against the company, awarding Qorvo approximately $38.6 million in damages, and subsequent court orders awarding Qorvo approximately $19 million in attorneys' fees and interest. This severely constrained liquidity and raises substantial doubt about the company's ability to continue as a going concern.
Limited operating history.
Inability to generate revenues or achieve profitability.
Material weaknesses in internal control over financial reporting.
Supply chain disruptions.
Intense competition.
Risks related to doing business in foreign countries.
Dependence on a few large customers.
Global shortages in manufacturing capacities.
Cyclicality in the semiconductor market.
Recent departures of executive officers and directors.
Limited experience selling, marketing, or distributing products.
Security breaches and other disruptions could compromise proprietary information.

Undertaken significant expense reductions and cost-saving measures.
Pursuing financial and strategic alternatives.
Implementing improved design and cost reductions into manufacturing of RF filters.
Working to remediate material weaknesses in internal control over financial reporting.
Maintaining relationships with suppliers located around the world.
Implementing improvements to network security safeguards.
Devoting increasing resources to the security of information technology systems.