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
1.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.

 

2.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

 

 

3.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:

1.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.
2.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.
3.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
4.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
5.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.
6.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.
7.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.
8.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