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 | — | 5,059,665 | 5,314,499 | 5,314,499 | ||||||||||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||||||||||
| Research and development | 1,758,701 | — | 1,758,701 | 2 | 1,758,701 | |||||||||||||||||||
| General and administrative expenses | 2,935,299 | 6,563,100 | 9,498,399 | 424,930 103,318 5,841 139,017 | 3 4 5 | 10,171,515 | ||||||||||||||||||
| — | — | — | ||||||||||||||||||||||
| Total Operating Expenses | 4,694,000 | 6,563,100 | 11,257,100 | 673,106 | 11,930,206 | |||||||||||||||||||
| �� | ||||||||||||||||||||||||
| Loss from Operations | (4,439,166 | ) | (1,503,435 | ) | (5,942,601 | ) | (673,106 | ) | (6,615,707 | ) | ||||||||||||||
| 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 | ) | $ | (673,106 | ) | $ | (7,582,708 | ) | |||||||||
| Net loss per common share - basic and diluted | $ | (0.40 | ) | $ | (0.00 | ) | $ | (0.52 | ) | $ | (0.00 | ) | $ | (0.57 | ) | |||||||||
| 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 | ) | 10 | $ | 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 4,381 104,263 | 6 7 8 9 | 9,898,444 | |||||||||||||||||
| (48,000 | ) | 10 | |||||||||||||||||||||
| — | — | — | — | ||||||||||||||||||||
| Total Operating Expenses | 7,124,350 | 4,907,961 | 12,032,311 | 456,831 | 12,489,142 | ||||||||||||||||||
| Operating Income (Loss) | (6,656,318 | ) | (1,798,419 | ) | (8,454,737 | ) | (504,831 | ) | (8,959,568 | ) | |||||||||||||
| 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 | ) | $ | (504,831 | ) | $ | (9,836,088 | ) | ||||||||
| Net loss per common share - basic and diluted | $ | (0.46 | ) | $ | (0.00 | ) | $ | (0.57 | ) | $ | (0.00 | ) | $ | (0.60 | ) | ||||||||
| 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) the 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 a twenty-five-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 amortization of the leasehold interests acquired for a full year with a three-year amortizable life on a straight-line basis as if they were acquired at the beginning of the fiscal year |
| 6. | 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. |
| 7. | To record depreciation of the building acquired for the nine-month period with a twenty-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. |
| 8. | 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. |
| 9. | To record amortization of the leasehold interests acquired for the nine-month period with a three-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. |
| 10. | 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