Akoustis Technologies, Inc. (NASDAQ:AKTS), a manufacturer of telephone and telegraph apparatus, is navigating a precarious financial situation following recent legal developments. On September 10, 2024, a U.S. District Court awarded rival Qorvo (NASDAQ:QRVO) Inc. approximately $7.3 million in pre- and post-judgment interest, adding to a previous $38.6 million damages and $11.7 million attorneys' fees awards.
The series of legal defeats stems from a jury verdict on May 17, 2024, where Akoustis was found liable for trade secret misappropriation and patent infringement, resulting in the substantial damages award to Qorvo. The latest court order, which includes the judgment interest, is not yet enforceable or appealable. It will form part of the final judgment, which will also address Akoustis' post-trial motions and Qorvo's counter-motions.
Akoustis is considering its options, including the possibility of filing an appeal once the final judgment is issued. If the company decides to appeal and posts an undertaking such as an appeal bond, the awards will not be enforceable until the appeals process is exhausted. As of September 11, 2024, the court had not ruled on the post-trial motions.
The outcome of these legal proceedings has cast doubt on Akoustis' financial health. The company is evaluating the potential impact on its operations and financial condition. Depending on the final judgment and its ability to secure financing, Akoustis may have to seek protection under bankruptcy laws.
This press release statement contains forward-looking statements regarding Akoustis' future actions and potential bankruptcy. These statements are subject to various risks and uncertainties, including the outcomes of any legal motions or appeals.
Akoustis has made no commitment to update any forward-looking statements publicly. The information is based on a SEC filing and reflects the company's current situation as it grapples with the repercussions of the legal battle with Qorvo.
In other recent news, Akoustis Technologies is facing significant financial uncertainty due to a recent legal decision. The company lost a lawsuit to Qorvo Inc ., resulting in a damages award of approximately $38.6 million and an additional $11.7 million in attorneys' fees. The final financial impact is still under evaluation by Akoustis Technologies, and depending on the outcome, the company may need to seek bankruptcy protection.
On a brighter note, Akoustis has secured multiple orders for its high-band RF filters, including a $13 million order for XBAW® filters for Wi-Fi Access Points, an $8 million order for Wi-Fi 6E and 7 access point filters, and a $2 million order for Wi-Fi 7 routers. These orders highlight the increasing demand for high-speed internet connectivity. In Q3 of FY2024, Akoustis reported a 7% revenue increase, reaching $7.5 million.
However, the company faces the risk of being delisted from Nasdaq due to non-compliance with the minimum bid price requirement, but plans to appeal the decision. Following the Q3 earnings report, B.Riley maintained a Neutral rating for Akoustis Technologies.
Lastly, Akoustis launched a direct stock offering of 50 million shares, managed by Roth Capital Partners, as part of its strategic approach towards financial management. These are the recent developments for Akoustis Technologies.
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