Note 2. Going Concern and Liquidity

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of September 30, 2024, the Company had cash and cash equivalents of $12.1 million and working capital deficit of $54.4 million. In the absence of additional liquidity, the Company anticipates that its existing cash resources, with a continued focus on cash conservation, is sufficient to fund its operations into the third quarter of fiscal 2025. There is no assurance that the Company’s projections and estimates are accurate. On May 17, 2024, after a trial in the U.S. District Court for the District of Delaware in the matter of Qorvo Inc. vs. Akoustis Technologies, Inc. DE Case 1:21-cv-01417-JPM (the “Qorvo Litigation”), the jury in the Qorvo Litigation awarded Qorvo approximately $38.6 million in damages. On September 9 and 10, 2024, the District Court issued orders awarding Qorvo an aggregate of approximately $19.0 in attorneys’ fees and pre- and post-judgment interest. These matters raise substantial doubt about the Company’s ability to continue as a going concern within one year from the date of this filing, which would require us to obtain additional equity financing or other capital. These condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Unless we appeal the outcome of the Qorvo Litigation and post an undertaking (such as an appeal bond), we will be forced to pursue a reorganization proceeding under Chapter 11 of the U.S. Bankruptcy Code.