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Akoustis conference call legal update ?7

21:50 13-May-24

A half dozen institutional AKTS shareholders have filed to sell just over 5M out 13.6M shares that they control, mostly from convertible debt.  This isn't dilution and Akoustis won't get any funds from it.  Rarely, insiders do something like this to facilitate another upcoming transaction, but I'm certainly not counting on it.  AKTS lost a quarter of its value today to trade down to 42 cents.

The Akoustis lawsuit has just concluded and the only important updates are on the court cases against Qorvo.  The main lawsuit that Akoustis is defending in Delaware should go to jury decision this week and be resolved by the end of next week.  If the jury returns a verdict against Akoustis it could result in an 8-figure expense.  I expect that would force the company into bankruptcy.  If the jury favors the Akoustis interpretation the impact is less clear.  The litigation in Texas has been joined by Cornell since the validity of that patent has been challenged, and is still early in procedures. 

Fees from these cases have been a significant expense, so reduction of them is a small silver lining.  AKTS is down 6% in the pre-market but still just above the 50 cent placement price.  I'm not taking chances on the stock, but thought it important to note separately that we should get a major change in outlook very soon.

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