Akoustis Technologies faces Nasdaq delisting over price By Investing.com

Akoustis Technologies, Inc. (NASDAQ:), a manufacturer specializing in telephone and telegraph apparatus, has received a notice from Nasdaq stating that its stock is subject to delisting due to non-compliance with the minimum bid price requirement.

The company’s shares closed below the $1.00 threshold for 30 consecutive trading days, as initially reported on October 24, 2023.

The company, headquartered in Huntersville, North Carolina, was given until April 22, 2024, to meet the minimum bid price requirement but failed to do so. Akoustis was granted an additional 180 days to regain compliance, with the extended deadline set for October 21, 2024.

However, on August 19, 2024, Akoustis received a notice from Nasdaq indicating that the bid price for the company’s common stock had closed at $0.10 or less per share for 10 consecutive trading days, leading to a decision to delist the company’s stock.

In response, Akoustis plans to appeal the delisting decision by requesting a hearing before a Nasdaq Hearings Panel, which will stay any suspension or delisting actions until the hearing and any subsequent compliance period granted by the Panel.

In other recent news, Akoustis Technologies 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 developments highlight the increasing demand for high-speed internet connectivity. The company reported a 7% revenue increase in Q3 FY2024, reaching $7.5 million.

Despite the termination of a Wi-Fi 6E program, Akoustis remains optimistic about the Wi-Fi 7 market and plans to ramp up production. In response to the company’s Q3 earnings report, B.Riley maintained a Neutral rating for Akoustis Technologies.

Akoustis also 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

In light of Akoustis Technologies’ recent notice of potential delisting from Nasdaq, it’s crucial to examine the company’s financial health and market performance. According to InvestingPro data, Akoustis has a market capitalization of merely $11.36 million, reflecting the company’s significant reduction in market value. The stock’s Price / Book multiple is notably low at 0.24, which might attract investors looking for potentially undervalued stocks. However, the revenue growth of 24.47% over the last twelve months as of Q3 2024 suggests some operational progress, despite the company’s challenging financial situation.

InvestingPro Tips highlight several concerns for investors, such as Akoustis operating with a significant debt burden and analysts’ expectations that the company will not be profitable this year. These factors, combined with a history of weak gross profit margins and a stock price that has experienced considerable volatility, underscore the risks associated with investing in Akoustis at this time.

For investors seeking a deeper analysis, InvestingPro offers additional tips on Akoustis Technologies, which can be found at https://www.investing.com/pro/AKTS. These insights may provide further clarity on the company’s financial trajectory and market potential.

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