Akoustis Technologies (NASDAQ:AKTS), Inc., a company specializing in telephone and telegraph apparatus manufacturing, announced today the appointment of Kamran Cheema as its new Chief Executive Officer and member of the Board of Directors. The decision was made by the company's Board of Directors on September 20, 2024.
Mr. Cheema will serve on the Board until the 2024 annual meeting of stockholders, with his tenure extending until a successor is elected or in the event of his earlier departure. The company has not yet determined Mr. Cheema's committee assignments within the Board.
Prior to his appointment, there were no reported arrangements or understandings between Mr. Cheema and any other individuals concerning his role at Akoustis Technologies. Furthermore, Mr. Cheema does not hold any material interest in transactions that would necessitate disclosure under SEC regulations.
The company's headquarters are located in Huntersville, North Carolina, and it is incorporated in Delaware. Akoustis Technologies' common stock is traded on the Nasdaq Capital Market under the ticker symbol NASDAQ:AKTS.
In other recent news, Akoustis Technologies is grappling with significant financial uncertainty due to a series of legal setbacks. The company was found liable for trade secret misappropriation and patent infringement, with damages awarded to rival Qorvo (NASDAQ:QRVO) Inc. totaling approximately $38.6 million, plus an additional $11.7 million in attorneys' fees. The final judgment is still pending, and depending on the outcome, Akoustis may need to seek bankruptcy protection.
In the midst of these challenges, Akoustis has secured several 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 underscore the increasing demand for high-speed internet connectivity. The company reported a 7% revenue increase in Q3 FY2024, reaching $7.5 million.
However, Akoustis is also facing the risk of being delisted from Nasdaq due to non-compliance with the minimum bid price requirement. The company 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.
InvestingPro Insights
As Akoustis Technologies welcomes Kamran Cheema as its new CEO, investors may be curious about the company's current financial health and market performance. According to real-time data from InvestingPro, Akoustis Technologies is grappling with financial challenges. The company's market capitalization stands at a modest 7.07 million USD, reflecting its small size in the market. The firm's Price / Book multiple, as of the last twelve months leading up to Q3 2024, is notably low at 0.18, possibly indicating that the market values the company's assets at a discount relative to its equity.
InvestingPro Tips highlight that Akoustis Technologies operates with a significant debt burden and may have trouble making interest payments on its debt. This is a critical consideration for investors, as it could impact the company's financial stability and growth prospects. Additionally, the company's stock has experienced high price volatility, which might be a concern for investors looking for stable returns. For those interested in exploring further, there are additional InvestingPro Tips available, providing a comprehensive analysis of Akoustis Technologies' financial situation and market performance.
Investors and stakeholders following the leadership transition at Akoustis Technologies can gain valuable insights by keeping an eye on these financial metrics and InvestingPro Tips, which are part of the broader analysis available on the InvestingPro platform.
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