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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>As
filed with the Securities and Exchange Commission on February 7, 2018</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Registration
No. 333-</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 14pt"><B>UNITED
STATES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 14pt"><B>SECURITIES
AND EXCHANGE COMMISSION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>WASHINGTON,
DC 20549</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 14pt"><B>FORM
S-8</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 14pt"><B>REGISTRATION
STATEMENT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>UNDER</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>THE
SECURITIES ACT OF 1933</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="img002_v1.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><B>Akoustis
Technologies, Inc.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(Exact
name of registrant as specified in its charter)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="width: 32%; font-family: Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Delaware</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(State
or other jurisdiction of</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>incorporation
or organization)</B></FONT></P></TD>
    <TD STYLE="width: 36%; font-family: Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>9805
Northcross Center Court, Suite A</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Huntersville,
NC 28078</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(Address
of principal executive offices, including zip code)</B></FONT></P></TD>
    <TD STYLE="width: 32%; font-family: Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>33-1229046</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(I.R.S.
Employer</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Identification
Number)</B></FONT></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>AKOUSTIS,
INC. 2014 STOCK PLAN</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>AKOUSTIS
TECHNOLOGIES, INC. 2015 EQUITY INCENTIVE PLAN</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(Full
title of the plan)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Jeffrey
B. Shealy</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Chief
Executive Officer</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Akoustis
Technologies, Inc.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>9805
Northcross Center Court, Suite A</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Huntersville,
NC 28078</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(704)
997-5735</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(Name,
address and telephone number, including area code,</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>of
agent for service)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Copy
to:</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Adam
P. Wheeler, Esq.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Womble
Bond Dickinson (US) LLP</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>1200
Nineteenth Street NW, Suite 500</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Washington,
DC 20036</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(202)
467-6900</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company or an emerging growth company. See the definitions of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer,&rdquo;
&ldquo;smaller reporting company,&rdquo; and &ldquo;emerging growth company&rdquo; in Rule 12b-2 of the Exchange Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="width: 18%; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Large
    accelerated filer</FONT></TD>
    <TD STYLE="width: 42%">&#9744;&nbsp;</TD>
    <TD STYLE="width: 31%; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accelerated
    filer </FONT></TD>
    <TD STYLE="width: 9%">&#9744;&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-accelerated
    filer</FONT></TD>
    <TD>&#9744; &nbsp;&nbsp;(Do not check if a smaller reporting company)</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Smaller
    reporting company<BR>
    Emerging growth company</FONT></TD>
    <TD>&#9745;<BR>
&#9745;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.
&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CALCULATION
OF REGISTRATION FEE</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Title of</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>securities</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>to be</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>registered</U></B></FONT></P></TD><TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid; border-top: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Amount</B></FONT><BR> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>to be</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>registered(1)</U></B></FONT></P></TD><TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid; border-top: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Proposed</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>maximum</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>offering</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>price</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>per share</U></B></FONT></P></TD><TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid; border-top: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Proposed</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>maximum</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>aggregate</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>offering</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>price</U></B></FONT></P></TD><TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid; border-top: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Amount of</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>registration</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>fee</U></B></FONT></P></TD><TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-align: justify; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; padding-left: 0.125in">Common Stock, par value $0.001 per share</TD><TD STYLE="width: 1%; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; border-bottom: Black 1pt solid; text-align: right">1,125,636</TD><TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">(2)</TD><TD STYLE="width: 1%; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 12%; border-bottom: Black 1pt solid; text-align: right">5.81</TD><TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">(4)</TD><TD STYLE="width: 1%; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 12%; border-bottom: Black 1pt solid; text-align: right">6,539,945.16</TD><TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">(4)</TD><TD STYLE="width: 1%; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 12%; border-bottom: Black 1pt solid; text-align: right">814.22</TD><TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left; border-right: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">160,000</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">(3)</TD><TD STYLE="border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5.81</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">(5)</TD><TD STYLE="border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">929,600.00</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">(5)</TD><TD STYLE="border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">115.74</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left; border-right: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; border-bottom: Black 1pt solid; border-left: Black 1pt solid; text-indent: 27pt; border-right: Black 1pt solid">Total:</TD><TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,285,636</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">929.96</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left; border-right: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
                                         registration statement (the &ldquo;Registration Statement&rdquo;) also covers additional
                                         shares of common stock, $0.001 par value per share (the &ldquo;Common Stock&rdquo;) of
                                         Akoustis Technologies, Inc. (the &ldquo;Company&rdquo; or the &ldquo;Registrant&rdquo;)
                                         that may be issuable pursuant to the antidilution provisions of the Plans (as defined
                                         below) by reason of any stock splits, stock dividends or similar transactions as permitted
                                         by Rule 416(a) and Rule 416(b) under the Securities Act of 1933, as amended (the &ldquo;Securities
                                         Act&rdquo;).</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
                                         Registration Statement registers 1,125,636 shares of the Registrant&rsquo;s Common Stock,
                                         of which 516,815 shares were issued under the Registrant&rsquo;s 2014 Stock Plan, as
                                         amended (the &ldquo;2014 Plan&rdquo;), and 608,821 shares were issued under the Registrant&rsquo;s
                                         2015 Equity Incentive Plan, as amended (the &ldquo;2015 Plan&rdquo; and, together with
                                         the 2014 Plan, the &ldquo;Plans&rdquo;).</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
                                         Registration Statement also registers 160,000 shares of Common Stock that may be issued
                                         pursuant to outstanding stock options (the &ldquo;Options&rdquo;) previously granted
                                         under the 2015 Plan.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Estimated
                                         solely for the purpose of calculating the registration fee pursuant to Rule 457(c) and
                                         457(h) of the Securities Act, based upon: the average ($5.81) of the high ($5.8874) and
                                         low ($5.73) prices of the Company&rsquo;s Common Stock, as reported by the NASDAQ Stock
                                         Market LLC on February 5, 2018.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Estimated
                                         solely for the purpose of calculating the registration fee pursuant to Rule 457(c) and
                                         457(h) of the Securities Act, based upon the weighted average of the exercise price for
                                         the Options.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">EXPLANATORY
NOTE</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
Registration Statement contains two parts. The first part contains a &ldquo;reoffer&rdquo; prospectus prepared in accordance with
Part I of Form S-3 (in accordance with Instruction C of the General Instructions to Form S-8). The prospectus permits reoffers
and resales of those shares referred to above that constitute &ldquo;control securities&rdquo; or &ldquo;restricted securities&rdquo;
within the meaning of Form S-8, by certain of the Company&rsquo;s stockholders, as more fully set forth therein. Pursuant to the
Note to Part I of Form S-8, the plan information specified by Part I of Form S-8 is not required to be filed with the Securities
and Exchange Commission (the &ldquo;SEC&rdquo;). The second part contains information required to be set forth in the registration
statement pursuant to Part II of Form S-8. The Company will provide without charge to any person, upon written or oral request
of such person, a copy of each document incorporated by reference in Item 3 of Part II of this Registration Statement (which documents
are also incorporated by reference in the prospectus as set forth in Form S-8), other than exhibits to such documents that are
not specifically incorporated by reference, the other documents required to be delivered to eligible employees pursuant to Rule
428(b) under the Securities Act and additional information about the Plans.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>REOFFER
PROSPECTUS</B></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: Red"><IMG SRC="img002_v1.jpg" ALT="(graphic)"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: Red"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>AKOUSTIS
TECHNOLOGIES, INC.</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9805
Northcross Center Court, Suite A&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Huntersville,
NC 28078&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(704)
997-5735</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>1,285,636
SHARES OF COMMON STOCK </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
reoffer prospectus relates to 1,285,636 shares of our common stock, par value $0.001 per share (&ldquo;Common Stock&rdquo;), that
may be offered and resold from time to time by certain eligible participants (each, an &ldquo;Eligible Participant&rdquo;) in
our 2014 Stock Plan, as amended (the &ldquo;2014 Plan&rdquo;) and our 2015 Equity Incentive Plan, as amended (the &ldquo;2015
Plan&rdquo; and, together with the 2014 Plan, the &ldquo;Plans&rdquo;) for their own account. Eligible Participants in our Plans
consist of employees, directors, officers and consultants of our company or its related entities. Selling stockholders will consist
of those Eligible Participants who are &ldquo;affiliates&rdquo; of our company (as defined in Rule 405 under the Securities Act
of 1933, as amended (the &ldquo;Securities Act&rdquo;)).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
selling stockholders may offer and sell their shares of Common Stock at various times and in various types of transactions, including
sales in the open market, sales in negotiated transactions and sales by a combination of these methods. Shares may be sold at
the market price of the Common Stock at the time of a sale, at prices relating to the market price over a period of time, or at
prices negotiated with the buyers of shares. The shares may be sold through underwriters or dealers which the selling stockholders
may select. If underwriters or dealers are used to sell the shares, we will name them and describe their compensation in a prospectus
supplement. For a description of the various methods by which the selling stockholders may offer and sell their Common Stock described
in this prospectus, see the section entitled &ldquo;Plan of Distribution&rdquo; on page 28 of this prospectus. We will receive
no part of the proceeds from sales made under this prospectus. The selling stockholders will bear all sales commissions and similar
expenses. Any other expenses incurred by us in connection with the registration and offering and not borne by the selling stockholders
will be borne by us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
shares of Common Stock will be issued pursuant to awards granted under the Plans and will be &ldquo;control securities&rdquo;
or &ldquo;restricted securities&rdquo; under the Securities Act before their sale under this prospectus. This prospectus has been
prepared for the purposes of registering the shares under the Securities Act to allow for future sales by selling stockholders
on a continuous or delayed basis to the public without restriction. The number of shares of Common Stock to be offered or resold
by means of this prospectus by each selling stockholder may not exceed, during any three-month period, the amount specified in
Rule 144(e) under the Securities Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Common Stock is traded on the NASDAQ Capital Market (&ldquo;NASDAQ&rdquo;) under the symbol &ldquo;AKTS.&rdquo; On February 6,
2018, the last reported sale price for our Common Stock was $6.02 per share.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
business and an investment in our securities involve a high degree of risk. Before making any investment in our securities, you
should read and carefully consider risks described in the &ldquo;Risk Factors&rdquo; section beginning on page 8 of this prospectus.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or
determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: White">The
date of this prospectus is February 7, 20</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">18</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>You
should rely only on the information contained in this prospectus. We have not authorized any other person to provide you with
information that is different from that contained in this prospectus. If anyone provides you with different or inconsistent information,
you should not rely on it. We take no responsibility for, and can provide no assurance as to the reliability of, any other information
that others may give you. The selling stockholders are offering to sell and seeking offers to buy these securities only in jurisdictions
where offers and sales are permitted. You should assume that the information contained in this prospectus is accurate only as
of the date of this prospectus, regardless of the time of delivery of this prospectus or of any sale of our Common Stock. Our
business, financial condition, results of operations and prospects may have changed since that date. We are not making an offer
of any securities in any jurisdiction where the offer is not permitted.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>TABLE
OF CONTENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; width: 95%; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 5%; border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Page</FONT></TD></TR>
<TR STYLE="background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a001_v2">Prospectus Summary</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1</FONT></TD></TR>
<TR STYLE="background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a002_v2">Note Regarding Forward-Looking Statements</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6</FONT></TD></TR>
<TR STYLE="background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a003_v2">Risk Factors</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8</FONT></TD></TR>
<TR STYLE="background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a004_v2">Determination of Offering Price</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">22</FONT></TD></TR>
<TR STYLE="background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a005_v2">Use of Proceeds</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">22</FONT></TD></TR>
<TR STYLE="background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a006_v2">Description of Securities</A></FONT></TD>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a001_v2"></A>PROSPECTUS
SUMMARY</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>The
following summary highlights information contained elsewhere in this prospectus. This summary is not complete and does not contain
all of the information that should be considered before investing in our Common Stock. Potential investors should read the entire
prospectus carefully, including the more detailed information regarding our business provided below in the &ldquo;Description
of Business&rdquo; section and the risks of purchasing our Common Stock discussed under the &ldquo;Risk Factors&rdquo; section.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unless
the context indicates or requires otherwise, all references in this registration statement to &ldquo;Akoustis Technologies,&rdquo;
&ldquo;Akoustis,&rdquo; the &ldquo;Company,&rdquo; &ldquo;we,&rdquo; &ldquo;us&rdquo; and &ldquo;our&rdquo; refer to Akoustis
Technologies, Inc. and its wholly owned consolidated subsidiaries, Akoustis, Inc., and Akoustis Manufacturing New York, Inc.,
each of which are Delaware corporations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
prospectus includes the trademarks of Akoustis, Inc., Akoustis<SUP>TM</SUP> and BulkOne&reg;, See &ldquo;Description of Business
- Intellectual Property&rdquo;. All references to Akoustis and BulkOne&reg; in this prospectus are intended to include reference
to such trademarks.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Overview</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Akoustis
is an early stage company focused on developing, designing and manufacturing innovative radio frequency (RF) filter products for
the mobile wireless device industry. We use a patented fundamentally new piezoelectric resonator technology that we call BulkONE&reg;
in the manufacturing of bulk acoustic wave (BAW) resonators, the building blocks of high selectivity &ldquo;RF&rdquo; filters
required to route signals in a smartphone or other mobile or wearable device, cellular infrastructure and WiFi routers. Filters
are a critical component of the RF front-end (RFFE), and their use has multiplied with the launch and licensing of 4G/LTE, emerging
5G and WiFi frequency bands. They are used to define the range of frequencies of radio signals that are transmitted (the &ldquo;passband&rdquo;)
and simultaneously reject unwanted signals.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
plan to use single-crystal piezoelectric materials to develop a new class of BAW RF filters with a fundamental advantage to reduce
losses over existing thin film RF filter technologies. We believe our technology will be disruptive to the RFFE market through
the following expected advantages:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Wider
                                         bandwidth coverage,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Smaller
                                         filter supports higher level of integration and lower manufacturing costs,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lower
                                         insertion loss,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Improved
                                         power compression and linearity,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reduced
                                         power amplifier cost, for the ultimate purpose of manufacturing our BAW RF filters,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reduced
                                         heat generation and reduced battery loading, and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reduced
                                         guard band between adjacent frequency bands.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Once
our technology is qualified for mass production, we expect to design and sell single-crystal BAW RF filter products using our
BulkONE&reg; technology. Our product focus is on innovative single-band filter products for the growing smartphone and RFFE module
market, which can be used to make duplexer or multiplexer filter products necessary for the mobile market. These products present
the greatest near-term potential for commercialization of our technology. According to a Mobile Experts May 2016 report, the mobile
filter market is expected to grow from $8.2 billion in 2017 to greater than $12 billion by 2021.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
a glossary of technical terms used herein, see &ldquo;Glossary&rdquo; below.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recent
Developments</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
March 23, 2017, we entered into an Asset Purchase Agreement and a Real Property Purchase Agreement (collectively, the &ldquo;STC-MEMS
Agreements&rdquo;) with The Research Foundation for the State University of New York (&ldquo;RF-SUNY&rdquo;) and Fuller Road Management
Corporation (&ldquo;FRMC&rdquo;), an affiliate of RF-SUNY (collectively, &ldquo;Sellers&rdquo;), respectively, to acquire certain
specified assets, including STC-MEMS, a semiconductor wafer-manufacturing and microelectromechanical systems (&ldquo;MEMS&rdquo;)
operation with associated wafer-manufacturing tools, and the associated real estate and improvements located in Canandaigua, New
York used in the operation of STC-MEMS (the assets and real estate and improvements referred to together herein as the &ldquo;STC-MEMS
Business&rdquo;). Pursuant to the STC-MEMS Agreements, the Company agreed to assume substantially all of the ongoing obligations
of the STC-MEMS Business incurred in the ordinary course of business following the acquisition date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
completed the acquisition of the STC-MEMS Business through our wholly-owned subsidiary, Akoustis Manufacturing New York, Inc.,
a Delaware corporation formed in connection with the acquisition, on June 26, 2017 for an aggregate purchase price of $2.8 million
in cash. The Company recorded net assets acquired of $6.3 million for purchase consideration of $4.6 million (includes $2.85 million
of cash paid at closing plus $1.7 million real estate contingent liability), which resulted in the recording of a bargain purchase
gain of $1.7 million.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
STC-MEMs acquisition allows the Company to internalize manufacturing, increase capacity and control its wafer supply chain for
single crystal BAW RF filters. We have now successfully transferred our research and development (&ldquo;R&amp;D&rdquo;) resonator
filter process flow into the facility, which recently received ISO 9001:2015 certification. We plan to utilize the facility to
optimize our BulkONE&reg; technology and to consolidate all aspects of wafer manufacturing for our disruptive and patented high
band BAW RF filters targeting the multi-billion dollar mobile and other wireless markets. This planned consolidation of the Company&rsquo;s
supply chain into the STC-MEMS Business started on June 26, 2017 and is expected to shorten time-to-market for our RF products,
greatly enhancing our ability to service customers upon completion of development and design specifications. Furthermore, we believe
that shorter time-to-market cycles provide us with the opportunity to increase the number of our potential customers.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
November 2017, we announced our first shipment of high performance single-crystal BAW diplexer filter module prototypes. These
initial prototypes were shipped pursuant to a customer engagement and purchase order announced by the Company in May 2017. The
purchase order covers the cost of engineering development and initial delivery of BAW RF diplexers for band-specific applications
in the frequency spectrum below 1.5GHz. Akoustis expects follow on shipments of small form-factor bandpass diplexer filter solutions
that replace larger legacy-filter technology, which enables system miniaturization without trading off performance.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
is the fourth BAW filter prototype shipment that Akoustis has recently made. In August and September 2017, AKTS separately announced
first shipments of high performance LTE-TDD Band 41, 2.6 GHz BAW RF filter prototypes that it believes will satisfy the challenging
filter requirements in the high growth 4G LTE mobile market in China, a first shipment of premium high-band BAW filter prototypes
for a radar application that will operate with a passband between 3.5GHz and 3.9GHz, and a first shipment of the industry&rsquo;s
first single-crystal 5.2GHz BAW RF filters for 802.11ac Tri-Band WiFi routers.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
December 2017, the Company closed a private placement in which it sold an aggregate 2,640,819 shares of Common Stock at $5.50
per share for aggregate gross proceeds before expenses of $14,524,504.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Capital
Needs</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company believes that it has sufficient cash to fund its operations into the first quarter of fiscal 2019.
However, there is no assurance that the Company&rsquo;s projections and estimates are accurate. In the event that the Company does
not obtain the funds needed to develop its technology and enable future sales, or the Company experiences costs in excess of estimates
to continue its R&amp;D plan, it is possible that the Company would not have sufficient resources to continue as a going concern
for the next year; these matters raise substantial doubt about the Company&rsquo;s ability to continue as a going concern. In order
to mitigate these risks, the Company is actively managing and controlling the Company&rsquo;s cash outflows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">About
This Offering</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
prospectus relates to the public offering, which is not being underwritten, by the selling stockholders listed in this prospectus,
of up to 1,285,636 shares of our Common Stock. Of the shares being offered, 1,125,636 are presently issued and outstanding and
160,000 are issuable upon exercise of stock options. The shares offered by this prospectus may be sold by the selling stockholders
from time to time in the open market, through negotiated transactions or otherwise at market prices prevailing at the time of
sale or at negotiated prices. We will receive none of the proceeds from the sale of the shares by the selling stockholders. We
will bear all expenses of registration incurred in connection with this offering, but all selling and other expenses incurred
by the selling stockholders will be borne by them.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Selected
Risks Associated with an Investment in Shares of Our Common Stock</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">An
investment in shares of our Common Stock is highly speculative and is subject to numerous risks described in the section entitled
&ldquo;Risk Factors&rdquo; and elsewhere in this prospectus. You should carefully consider these risks before making an investment.
Some of these risks include:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                         have a limited operating history upon which investors can evaluate our business and future
                                         prospects.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                         have a history of losses (we have incurred net losses of approximately $21.2 million
                                         for the period from May 12, 2014 (inception) to September 30, 2017), will need substantial
                                         additional funding to continue our operations and may not achieve or sustain profitability
                                         in the future.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
                                         we are unable to obtain additional financing on acceptable terms, we may have to curtail
                                         our growth or cease our development plans and operations.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">You
                                         could lose all of your investment.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">You
                                         may experience dilution of your ownership interests because of the future issuance of
                                         additional shares of our common or preferred stock or other securities that are convertible
                                         into or exercisable for our common or preferred stock.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                         may not generate revenues or achieve profitability.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
                                         products may not be able to be commercialized or accepted in the market.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
                                         we are unable to establish effective marketing and sales capabilities or enter into agreements
                                         with third parties to market and sell our RF filters, we may not be able to effectively
                                         generate product revenues.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
                                         we fail to obtain, maintain and enforce our intellectual property rights, we may not
                                         be able to prevent third parties from using our proprietary technologies and may lose
                                         access to technologies critical to our products.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Corporate
Information</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
principal executive offices are located at 9805 Northcross Center Court, Suite A, Huntersville, North Carolina 28078. Our telephone
number is (704) 997-5735. Our website address is <U>http://www.akoustis.com</U>. The information on, or that can be accessed through,
our website is not part of this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Implications
of Being an Emerging Growth Company</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are an &ldquo;emerging growth company,&rdquo; as defined in the Jumpstart Our Business Startups Act of 2012. We will remain an
emerging growth company until the earlier of (i) June 30, 2019, the last day of the fiscal year following the fifth anniversary
of the date of the first sale of our Common Stock pursuant to an effective registration statement under the Securities Act; (ii)
the last day of the fiscal year in which we have total annual gross revenues of $1.07 billion or more; (iii) the date on which
we have issued more than $1 billion in nonconvertible debt during the previous three years; or (iv) the date on which we are deemed
to be a large accelerated filer under applicable SEC rules. We expect that we will remain an emerging growth company for the foreseeable
future, but cannot retain our emerging growth company status indefinitely and will no longer qualify as an emerging growth company
on or before June 30, 2019. We refer to the Jumpstart Our Business Startups Act of 2012 herein as the &ldquo;JOBS Act,&rdquo;
and references herein to &ldquo;emerging growth company&rdquo; have the meaning associated with it in the JOBS Act. For so long
as we remain an emerging growth company, we are permitted and intend to rely on exemptions from specified disclosure requirements
that are applicable to other public companies that are not emerging growth companies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">These
exemptions include:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">not
                                         being required to comply with the requirement of auditor attestation of our internal
                                         control over financial reporting,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">not
                                         being required to comply with any requirement that may be adopted by the Public Company
                                         Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to
                                         the auditor&rsquo;s report providing additional information about the audit and the financial
                                         statements,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reduced
                                         disclosure obligations regarding executive compensation, and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">not
                                         being required to hold a nonbinding advisory vote on executive compensation (&ldquo;say-on-pay&rdquo;),
                                         and on the frequency of say-on-pay, and stockholder approval of any golden parachute
                                         payments not previously approved.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
as long as we continue to be an emerging growth company, we expect that we will take advantage of the reduced disclosure obligations
available to us as a result of that classification. We have taken advantage of certain of those reduced reporting burdens in this
prospectus. Accordingly, the information contained herein may be different than the information you receive from other public
companies in which you hold stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">An
emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities
Act for complying with new or revised accounting standards. This allows an emerging growth company to delay the adoption of certain
accounting standards until those standards would otherwise apply to private companies. We have irrevocably elected to avail ourselves
of this extended transition period, and as a result, we will not be required to adopt new or revised accounting standards on the
dates on which adoption of such standards is required for other public reporting companies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are also a &ldquo;smaller reporting company&rdquo; as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended
(the &ldquo;Exchange Act&rdquo;), and have elected to take advantage of certain of the scaled disclosure requirements available
for smaller reporting companies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Glossary</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following is a glossary of technical terms used herein:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Acoustic
                                         wave </B>&mdash; a mechanical wave that vibrates in the same direction as its direction
                                         of travel.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>AlN
                                         </B>&mdash; Aluminum Nitride</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Acoustic
                                         wave filter </B>&mdash; an electromechanical device that provides radio frequency control
                                         and selection, in which an electrical signal is converted into a mechanical wave in a
                                         device constructed of a piezoelectric material and then back to an electrical signal.</FONT></TD></TR></TABLE>

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<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Band,
                                         channel or frequency band </B>&mdash; a designated range of radio wave frequencies used
                                         to communicate with a mobile device.</FONT></TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Bulk
                                         acoustic wave (BAW) </B>&mdash; an acoustic wave traveling through a material exhibiting
                                         elasticity, typically vertical or perpendicular to the surface of a piezoelectric material.</FONT></TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Digital
                                         baseband </B>&mdash; the digital transceiver, which includes the main processor for the
                                         communication device.</FONT></TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Diplexer
                                         </B>&mdash; a device that can split and combine different wireless signals, for example,
                                         permitting two transmitters to share the same antenna.</FONT></TD></TR></TABLE>

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<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Duplexer
                                         </B>&mdash; a bi-directional device that connects the antenna to the transmitter and
                                         receiver of a wireless device and simultaneously filters both the transmit signal and
                                         receive signal.</FONT></TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Filter
                                         </B>&mdash; a series of interconnected resonators designed to pass (or select) a desired
                                         radio frequency signal and block unwanted signals.</FONT></TD></TR></TABLE>

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<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Insertion
                                         Loss</B> &mdash;The power losses associated with inserting a BAW filter into a circuit.</FONT></TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Piezoelectric
                                         materials </B>&mdash; certain solid materials (such as crystals and certain ceramics)
                                         that produce a voltage in response to applied mechanical stress, or that deform when
                                         a voltage is applied to them.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Quality
                                         factor, or Q </B>&mdash; energy stored divided by the energy dissipated per cycle. Higher
                                         Q represents a higher caliber of resonance, and implies mechanical and electrical factors
                                         responsible for energy dissipation are minimal. For a given amount of energy stored in
                                         a resonator, Q represents the number of cycles resonance will continue without additional
                                         input of energy into the system.</FONT></TD></TR></TABLE>

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<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Resonator
                                         </B>&mdash; a device whose impedance sharply changes over a narrow frequency range and
                                         is characterized by one or more &lsquo;resonance frequency&rsquo; due to a standing wave
                                         across the resonator&rsquo;s electrodes. The vibrations in a resonator can be characterized
                                         by mechanical &ldquo;acoustic&rdquo; waves which travel without a characteristic sound
                                         velocity. Resonators are the building blocks for RF filters used in mobile wireless devices.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>RF
                                         </B>&mdash; radio frequency.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>RF
                                         front-end (RFFE) </B>&mdash; the circuitries in a mobile device responsible for processing
                                         the analog radio signals and is located between the device&rsquo;s antenna and the digital
                                         baseband.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>TDD
                                         LTE </B>&mdash; Time Division Duplex- Long-Term Evolution or a wireless standard which
                                         shares the bandwidth between transmit and receive.</FONT></TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Trusted
                                         Foundry</B>&mdash; The Trusted Foundry Program was initiated by the Department of Defense
                                         in 2004 to ensure mission-critical national defense systems access to leading-edge integrated
                                         circuits from secure, domestic sources. Defense Microelectronics Activity (DMEA) is the
                                         manager of the Trusted Foundry Program for the U.S. Department of Defense (DoD). It is
                                         a joint DoD / National Security Agency (NSA) program and is administered by the NSA&rsquo;s
                                         Trusted Access Program Office (TAPO).</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Wafer
                                         </B>&mdash; a thin slice of semiconductor material used in electronics for the fabrication
                                         of integrated circuits.</FONT></TD></TR></TABLE>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="a002_v2"></A>NOTE
REGARDING FORWARD-LOOKING STATEMENTS</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
prospectus contains forward-looking statements, including, without limitation, in the sections captioned &ldquo;Description of
Business,&rdquo; &ldquo;Risk Factors,&rdquo; and &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and
Results of Operations,&rdquo; and elsewhere. Any and all statements contained in this prospectus that are not statements of historical
fact may be deemed forward-looking statements. Terms such as &ldquo;may,&rdquo; &ldquo;might,&rdquo; &ldquo;would,&rdquo; &ldquo;should,&rdquo;
&ldquo;could,&rdquo; &ldquo;project,&rdquo; &ldquo;estimate,&rdquo; &ldquo;predict,&rdquo; &ldquo;potential,&rdquo; &ldquo;strategy,&rdquo;
&ldquo;anticipate,&rdquo; &ldquo;attempt,&rdquo; &ldquo;develop,&rdquo; &ldquo;plan,&rdquo; &ldquo;help,&rdquo; &ldquo;believe,&rdquo;
&ldquo;continue,&rdquo; &ldquo;intend,&rdquo; &ldquo;expect,&rdquo; &ldquo;future,&rdquo; and terms of similar import (including
the negative of any of the foregoing) may be intended to identify forward-looking statements. However, not all forward-looking
statements may contain one or more of these identifying terms. Forward-looking statements in this prospectus may include, without
limitation, statements regarding (i) the plans and objectives of management for future operations, including plans or objectives
relating to the development of commercially viable radio frequency filters, (ii) a projection of income (including income/loss),
earnings (including earnings/loss) per share, capital expenditures, dividends, capital structure or other financial items, (iii)
our future financial performance, including any such statement contained in a discussion and analysis of financial condition by
management or in the results of operations included pursuant to the rules and regulations of the SEC, (iv) our ability to efficiently
utilize cash and cash equivalents to support our operations for a given period of time, (v) our ability to engage customers while
maintaining ownership of our intellectual property, and (vi) the assumptions underlying or relating to any statement described
in points (i) through (v) above.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may
not be realized because they are based upon our current projections, plans, objectives, beliefs, expectations, estimates and assumptions
and are subject to a number of risks and uncertainties and other influences, many of which are beyond our control. Actual results
and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements
as a result of these risks and uncertainties. Factors that may influence or contribute to the inaccuracy of the forward-looking
statements or cause actual results to differ materially from expected or desired results may include, without limitation:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                         inability to obtain adequate financing,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                         limited operating history,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                         inability to generate significant revenues or achieve profitability,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                         results of our research and development (R&amp;D) activities,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                         inability to achieve acceptance of our products in the market,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">general
                                         economic conditions, including upturns and downturns in the industry,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                         limited number of patents,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">failure
                                         to obtain, maintain and enforce our intellectual property rights,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                         inability to attract and retain qualified personnel,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                         reliance on third parties to complete certain processes in connection with the manufacture
                                         of our products,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">product
                                         quality and defects,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">existing
                                         or increased competition,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                         ability to market and sell our products,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                         inability to successfully integrate our STC-MEMS Business (as defined below under &ldquo;Description
                                         of Business &ndash; Recent Developments &ndash; Business Developments&rdquo;) in our
                                         business,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                         failure to innovate or adapt to new or emerging technologies,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                         failure to comply with regulatory requirements,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">results
                                         of any arbitration or litigation that may arise,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">stock
                                         volatility and illiquidity,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                         failure to implement our business plans or strategies,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                         failure to remediate the material weaknesses in our internal control over financial reporting,
                                         and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                         failure to maintain the Trusted Foundry accreditation of our New York fabrication facility.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
description of some of the risks and uncertainties that could cause our actual results to differ materially from those described
by the forward-looking statements in this prospectus appears in the section captioned &ldquo;Risk Factors&rdquo; and elsewhere
in this prospectus. Readers are cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties
related to them and to the risk factors. Except as may be required by law, we do not undertake any obligation to update the forward-looking
statements contained in this prospectus to reflect any new information or future events or circumstances or otherwise.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="a003_v2"></A>RISK
FACTORS</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>An
investment in shares of our Common Stock is highly speculative and involves a high degree of risk. We face a variety of risks
that may affect our operations or financial results and many of those risks are driven by factors that we cannot control or predict.
Before investing in our Common Stock, you should carefully consider the following risks, together with the financial and other
information contained in this prospectus. If any of the following risks actually occurs, our business, prospects, financial condition
and results of operations could be materially adversely affected. In that case, the trading price of our Common Stock would likely
decline and you may lose all or a part of your investment. Only those investors who can bear the risk of loss of their entire
investment should invest in our Common Stock.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prospective
investors should consider carefully whether an investment in the Company is suitable for them in light of the information contained
in this prospectus and the financial resources available to them. The risks described below do not purport to be all the risks
to which the Company or the Company could be exposed. This section is a summary of the risks that we presently believe are material
to the operations of the Company. Additional risks of which we are not presently aware or which we presently deem immaterial may
also impair the Company&rsquo;s business, financial condition or results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risks
Related to our Business and the Industry in Which We Operate</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have a limited operating history upon which investors can evaluate our business and future prospects.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are an early stage company that has not yet begun any commercial operations. Historically, we were a shell company with no operating
history and no assets other than cash. Upon consummation of a merger with Akoustis, Inc. in May 2015, we redirected our business
focus towards the development of advanced single-crystal BAW filter products for RF front-ends (RFFEs) for use in the mobile wireless
device industry. Although Akoustis since its inception focused its activity on R&amp;D of high efficiency acoustic wave resonator
technology utilizing single-crystal piezoelectric materials, this technology has not yet obtained marketing approval or been verified
in commercial manufacturing, and its RF filters have not generated any material level of sales.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Since
our expectations of potential customers and future demand for our products are based on estimates of planned operations rather
than experience, it is difficult for our management and our investors to accurately forecast and evaluate our future prospects
and our revenues. Our proposed operations are therefore subject to all of the risks inherent in light of the expenses, difficulties,
complications and delays frequently encountered in connection with the formation of any new business and the development of a
product, as well as those risks that are specific to our business in particular. An investment in an early stage company such
as ours involves a degree of risk, including the possibility that your entire investment may be lost. The risks include, but are
not limited to, our reliance on third parties to complete some processes for the manufacturing of our product, the possibility
that we will not be able to develop functional and scalable products, or that although functional and scalable, our products and/or
services will not be accepted in the market. To successfully introduce and market our products at a profit, we must establish
brand name recognition and competitive advantages for our products. There are no assurances that the Company can successfully
address these challenges. If it is unsuccessful, the Company and its business, financial condition and operating results will
be materially and adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may not generate revenues or achieve profitability.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have incurred operating losses since our inception and expect to continue to have negative cash flow from operations. We have
only generated minimal revenues from shipment of product while our primary sources of funds have been R&amp;D grants, private
placements of our equity, and debt. We have experienced net losses of approximately $21.2 million for the period from May 12,
2014 (inception) to September 30, 2017. Our future profitability will depend on our ability to create a sustainable business model
and generate revenues, which is subject to a number of factors, including our ability to successfully implement our strategies
and execute our R&amp;D plan, our ability to implement our improved design and cost reductions into manufacturing of our RF filters,
the availability of funding, market acceptance of our products, consumer demand for end products incorporating our products, our
ability to compete effectively in a crowded field, our ability to respond effectively to technological advances by timely introducing
our new technologies and products, and global economic and political conditions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
future profitability also depends on our expense levels, which are influenced by a number of factors, including the resources
we devote to developing and supporting our projects and potential products, the continued progress of our research and development
of potential products, our ability to improve R&amp;D efficiencies, license fees or royalties we may be required to pay, and the
potential need to acquire licenses to new technology, the availability of intellectual property for licensing or acquisition,
or the use of our technology in new markets, which could require us to pay unanticipated license fees and royalties in connection
with these licenses.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
development and commercialization efforts may prove more expensive than we currently anticipate, and we may not succeed in increasing
our revenues to offset higher expenses. These expenses, among other things, may cause our net income and working capital to decrease.
If we fail to generate revenue and manage our expenses, we may never achieve profitability, which would adversely and materially
affect our ability to provide a return to our investors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
industry and the markets in which the Company operates are highly competitive and subject to rapid technological change.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
markets in which we intend to compete are intensely competitive. We will operate primarily in the industry that designs and produces
semiconductor components for wireless communications and other wireless devices, which is subject to rapid changes in both product
and process technologies based on demand and evolving industry standards. The intended markets for our products are characterized
by:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">rapid
                                         technological developments and product evolution,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">rapid
                                         changes in customer requirements,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">frequent
                                         new product introductions and enhancements,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">continuous
                                         demand for higher levels of integration, decreased size and decreased power consumption,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">short
                                         product life cycles with declining prices over the life cycle of the product, and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">evolving
                                         industry standards.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
continuous evolutions of these technologies and frequent introduction of new products and enhancements have generally resulted
in short product life cycles for wireless semiconductor products, in general, and for RFFEs, in particular. Our R&amp;D activity
and resulting products could become obsolete or less competitive sooner than anticipated because of a faster than anticipated
change in one or more of the above-noted factors. Therefore, in order for our RF filters to be competitive and achieve market
acceptance, we need to keep pace with rapid development of new process technologies, which requires us to:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">respond
                                         effectively to technological advances by timely introducing our new technologies and
                                         products,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">successfully
                                         implement our strategies and execute our R&amp;D plan in practice,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">improve
                                         the efficiency of our technology, and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">implement
                                         our improved design and cost reductions into manufacturing of our RF filters.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are still developing our products, and they may not be accepted in the market.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although
we believe that our BulkONE&reg; acoustic wave resonator technology that utilizes single-crystal piezoelectric materials will
provide material advantages over existing RF filters and are currently developing various methods of integration suitable for
implementation of this technology to RF filters, we cannot be certain that our RF filters will be able to achieve or maintain
market acceptance. While we have fabricated R&amp;D resonators that demonstrate the feasibility of our BulkONE&reg; technology,
we are still in the process of stabilizing this technology into our NY fabrication facility for manufacturing of our RF filters,
and this technology is not verified yet in practice or on a commercial scale. There are also no records that can demonstrate our
ability to successfully overcome many of the risks and uncertainties frequently encountered by companies in new and rapidly evolving
fields. In addition to our limited operating history, we will depend on a limited number of manufacturers and customers for a
significant portion of our revenue in the future and we cannot guarantee their acceptance of our products. Each of these factors
may adversely affect our ability to implement our business strategy and achieve our business goals.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
successful development of our BulkONE&reg; technology and market acceptance of our RF filters will be highly complex and will
depend on the following principal competitive factors, including our ability to:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">comply
                                         with industry standards and effectively compete against current technology for producing
                                         RF acoustic wave filters,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">differentiate
                                         our products from offerings of our competitors by delivering RF filters that are higher
                                         in quality, reliability and technical performance,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">anticipate
                                         customer and market requirements, changes in technology and industry standards and timely
                                         develop improved technologies that meet high levels of satisfaction of our potential
                                         customers,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">maintain,
                                         grow and manage our internal teams to the extent we increase our operations and develop
                                         new segments of our business,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">develop
                                         and maintain successful collaborative, strategic, and other relationships with manufacturers,
                                         customers and contractors,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">protect,
                                         develop or otherwise obtain adequate intellectual property for our technology and our
                                         filters, and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">obtain
                                         strong financial, sales, marketing, technical and other resources necessary to develop,
                                         test, manufacture, commercialize and market our filters.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
we are unsuccessful in accomplishing these objectives, we may not be able to compete successfully against current and potential
competitors. As a result, our BulkOne&reg; technology and our RF filters may not be accepted in the market and we may never attain
profitability.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
will face intense competition, which may cause pricing pressures, decreased gross margins and loss of potential market share and
may materially and adversely affect our business, financial condition and results of operations.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
will compete with U.S. and international semiconductor manufacturers and mobile semiconductor companies of all sizes in terms
of resources and market share, some of whom have significantly greater financial, technical, manufacturing and marketing resources
than we do. We expect competition in our markets to intensify as new competitors enter the RF component market, existing competitors
merge or form alliances, and new technologies emerge. Our competitors may introduce new solutions and technologies that are superior
to our BAW technology, are verified on a commercial scale, and have achieved widespread market acceptance. Certain of our competitors
may be able to adapt more quickly than we can to new or emerging technologies and changes in customer requirements or may be able
to devote greater resources to the development, promotion and sale of their products than we can. This implementation may require
us to modify the manufacturing process for our filters, design new products to more stringent standards, and redesign some existing
products, which may prove difficult for us and result in delays in product deliveries and increased expenses.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Increased
competition could also result in pricing pressures, declining average selling prices for our RF filters, decreased gross margins
and loss of potential market share. We will need to make substantial investments to develop these enhancements and technologies,
and we cannot assure investors that we will have funds available for these investments or that these enhancements and technologies
will be successful. If a competing technology emerges that is, or is perceived to be, superior to our existing technology and
we are unable to adapt to these changes and to compete effectively, our market share and financial condition could be materially
and adversely affected, and our business, revenue, and results of operations could be harmed.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Changes
in general economic conditions, together with other factors, cause significant upturns and downturns in the industry, and our
business, therefore, may also experience cyclical fluctuations in the future.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">From
time to time, changes in general economic conditions, together with other factors, may cause significant upturns and downturns
in the semiconductor industry. These fluctuations are due to a number of factors, many of which are beyond our control, including:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">levels
                                         of inventory in our end markets,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">availability
                                         and cost of supply for manufacturing of our RF filters using our design,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes
                                         in end-user demand for the products manufactured with our technology and sold by our
                                         prospective customers,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">industry
                                         production capacity levels and fluctuations in industry manufacturing yields,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">market
                                         acceptance of our future customers&rsquo; products that incorporate our RF filters,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                         gain or loss of significant customers,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                         effects of competitive pricing pressures, including decreases in average selling prices
                                         of our RF filters,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">new
                                         product and technology introductions by competitors,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes
                                         in the mix of products produced and sold, and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">intellectual
                                         property disputes.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
a result, the demand for our products can change quickly and in ways we may not anticipate, and our business, therefore, may also
experience cyclical fluctuations in future operating results. In addition, future downturns in the electronic systems industry
could adversely impact our revenue and harm our business, financial condition and results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
we are unable to attract and retain qualified personnel to contribute to the development, manufacture and sale of our products,
we may not be able to effectively operate our business.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
the source of our technological and product innovations, our key technical personnel represent a significant asset. We believe
that our future success is highly dependent on the continued services of our current key officers, employees, and Board members,
as well as our ability to attract and retain highly skilled and experienced technical personnel. The loss of their services could
have a detrimental effect on our operations. Specifically, the loss of the services of Jeffrey Shealy, our President and Chief
Executive Officer, John Kurtzweil, our Chief Financial Officer, David Aichele, our Vice President of Business Development, Andrew
Wright, our General Counsel, any major change in our Board or management, or our inability to attract, retain and motivate qualified
personnel could have a material adverse effect on our ability to operate our business. The competition for management and technical
personnel is intense in the wireless semiconductor industry, and therefore, we cannot assure you that we will be able to attract
and retain qualified management and other personnel necessary for the design, development, manufacture and sale of our products.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Product
defects could adversely affect the results of our operations and may expose us to product liability claims.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
fabrication of RF filters is a complex and precise process. If we or any of our manufacturers fails to successfully manufacture
wafers that conform to our design specifications and the strict regulatory requirements of the Federal Communications Commission
(&ldquo;FCC&rdquo;), it may result in substantial risk of undetected flaws in components or other materials used by our manufacturers
during fabrication of our filters and could lead to product defects and costs to repair or replace these parts or materials. Any
such failure would significantly impact our ability to develop and implement our technology and to improve performance of our
RF filters. Our inability to comply with such requirements could result in significant costs, as well as negative publicity and
damage to our reputation that could reduce demand for our products.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
also could be subject to product liability lawsuits if the wireless devices containing our RF filters cause injury. Recently interest
groups have requested that the FCC investigate claims that wireless communications technologies pose health concerns and cause
interference with airbags, hearing aids and medical devices. Any such product liability claims may include allegations of defects
in manufacturing, defects in design, a failure to warn of dangers inherent in the product or inadequate disclosure of risks related
to the use of our product, negligence, strict liability and a breach of warranties. Claims could also be asserted under state
consumer protection acts.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
we are unable to establish effective marketing and sales capabilities or enter into agreements with third parties to market and
sell our RF filters, we may not be able to effectively generate product revenues.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have limited experience selling, marketing or distributing products and currently have a small internal marketing and sales force.
In order to launch and commercialize our technology and our RF filters, we must build on a territory-by-territory basis marketing,
sales, distribution, managerial and other non-technical capabilities or make arrangements with third parties to perform these
services, and we may not be successful in doing so. Therefore, we may choose to collaborate, either globally or on a territory-by-territory
basis, with third parties that have direct sales forces and established distribution systems, either to augment our own sales
force and distribution systems or in lieu of our own sales force and distribution systems. If so, our success will depend, in
part, on our ability to enter into and maintain collaborative relationships for such capabilities, such collaborator&rsquo;s strategic
interest in the products under development and such collaborator&rsquo;s ability to successfully market and sell any such products.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
we are unable to enter into such arrangements when needed on acceptable terms or at all, we may not be able to successfully commercialize
our filters. Further, to the extent that we depend on third parties for marketing and distribution, any revenues we receive will
depend upon the efforts of such third parties, and there can be no assurance that such efforts will be successful. If we decide
in the future to establish an internal sales and marketing team with technical expertise and supporting distribution capabilities
to commercialize our RF filters, it could be expensive and time consuming and would require significant attention of our executive
officers to manage. We may also not have sufficient resources to allocate to the sales and marketing of our filters. Any failure
or delay in the development of sales, marketing and distribution capabilities, either through collaboration with one or more third
parties or through internal efforts, would adversely impact the commercialization of any of our products that we obtain approval
to market. As a result, our future product revenue would suffer and we may incur significant additional losses</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risks
Related to Our Intellectual Property</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
we fail to obtain, maintain and enforce our intellectual property rights, we may not be able to prevent third parties from using
our proprietary technologies.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
long-term success largely depends on our ability to market technologically competitive products which, in turn, largely depends
on our ability to obtain and maintain adequate intellectual property protection and to enforce our proprietary rights without
infringing the proprietary rights of third parties. While we rely upon a combination of our patent applications currently pending
with the United State Patent and Trademark Office (&ldquo;USPTO&rdquo;), our trademarks, copyrights, trade secret protection and
confidentiality agreements to protect the intellectual property related to our technologies, there can be no assurance that:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                         currently pending or future patent applications will result in issued patents,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                         limited patent portfolio will provide adequate protection to our core technology,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">we
                                         will succeed in protecting our technology adequately in all key jurisdictions, or</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">we
                                         can prevent third parties from disclosure or misappropriation of our proprietary information
                                         which could enable competitors to quickly duplicate or surpass our technological achievements,
                                         thus eroding any competitive advantage we may derive from the proprietary information.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have a limited number of patent applications which may not result in issued patents or patents that fully protect our intellectual
property.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the United States and internationally we have twenty (20) pending patent applications; however, there is no assurance that any
of the pending applications or our future patent applications will result in patents being issued, or that any patents that may
be issued as a result of existing or future applications will provide meaningful protection or commercial advantage to us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
process of seeking patent protection in the United States and abroad can be long and expensive. Since patent applications in the
United States and most other countries are confidential for a period of time after filing, we cannot be certain at the time of
filing that we are the first to file any patent application related to our single-crystal acoustic wave filter technology. In
addition, patent applications are often published as part of the patent application process, even if such applications do not
issue as patents. When published, such applications will become publicly available, and proprietary information disclosed in the
application will become available to others. While at present we are unaware of competing patent applications, competing applications
could potentially surface.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Even
if all of our pending patent applications are granted and result in registration of our patents, we cannot predict the breadth
of claims that may be allowed or enforced, or that the scope of any patent rights could provide a sufficient degree of protection
that could permit us to gain or keep our competitive advantage with respect to these products and technologies. For example, we
cannot predict:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                         degree and range of protection any patents will afford us against competitors, including
                                         whether third parties will find ways to make, use, sell, offer to sell or import competitive
                                         products without infringing our patents,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">if
                                         and when patents will be issued,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">if
                                         third parties will obtain patents claiming inventions similar to those covered by our
                                         patents and patent applications,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">if
                                         third parties have blocking patents that could be used to prevent us from marketing our
                                         own patented products and practicing our own technology, or</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">whether
                                         we will need to initiate litigation or administrative proceedings (e.g. at the USPTO)
                                         in connection with patent rights, which may be costly whether we win or lose.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
a result, the patent applications we own may fail to result in issued patents in the United States. Third parties may challenge
the validity, enforceability or scope of any issued patents or patents issued to us in the future, which may result in those patents
being narrowed, invalidated or held unenforceable. Even if they are unchallenged, our patents and patent applications may not
adequately protect our intellectual property or prevent others from developing similar products that do not infringe the claims
made in our patents. If the breadth or strength of protection provided by the patents we hold or pursue is threatened, we may
not be able to prevent others from offering similar technology and products in the RFFE mobile market and our ability to commercialize
our RF filters with technology protected by those patents could be threatened.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
we fail to obtain issued patents outside of the United States, our ability to prevent misappropriation of our proprietary information
or infringement of our intellectual property rights in countries outside of the United States where our filters may be sold in
the future may be significantly limited. If we file foreign patent applications related to our pending U.S. patent applications
or to our issued patents in the United States, these applications may be contested and fail to result in issued patents outside
of the United States or we may be required to narrow our claims. Even if some or all of our patent applications are granted outside
of the United States and result in issued patents, effective enforcement of rights granted by these patents in some countries
may not be available due to the differences in foreign patent and other laws concerning intellectual property rights, a relatively
weak legal regime protecting intellectual property rights in these countries, and because it is difficult, expensive and time-consuming
to police unauthorized use of our intellectual property when infringers are overseas. This failure to obtain or maintain adequate
protection of our intellectual property rights outside of the United States could have a materially adverse effect on our business,
results of operations and financial conditions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may be involved in lawsuits to protect or enforce our patents, which could be expensive, time-consuming and unsuccessful.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Competitors
may infringe our patents or the patents of our potential licensors. To attempt to stop infringement or unauthorized use, we may
need to file infringement claims, which can be expensive and time consuming and distract management.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
we pursue any infringement proceeding, a court may decide that a patent of ours or our licensors is not valid or is unenforceable,
or may refuse to stop the other party from using the relevant technology on the grounds that our patents do not cover the technology
in question. Additionally, any enforcement of our patents may provoke third parties to assert counterclaims against us. Some of
our current and potential competitors have the ability to dedicate substantially greater resources to enforcing their intellectual
property rights than we have. Moreover, the legal systems of certain countries, particularly certain developing countries, do
not favor the enforcement of patents, which could reduce the likelihood of success of, or the amount of damages that could be
awarded resulting from, any infringement proceeding we pursue in any such jurisdiction. An adverse result in any infringement
litigation or defense proceedings could put one or more of our patents at risk of being invalidated, held unenforceable, or interpreted
narrowly and could put our patent applications at risk of not issuing, which could limit the ability of our filters to compete
in those jurisdictions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interference
proceedings could be provoked by third parties or brought by the USPTO to determine the priority of inventions with respect to
our patents or patent applications. An unfavorable outcome could require us to cease using the related technology or to attempt
to license rights to use it from the prevailing party. Our business could be harmed if the prevailing party does not offer us
a license on commercially reasonable terms, or at all.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
need to protect our trademark rights and disclosure of our trade secrets to prevent competitors from taking advantage of our goodwill.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe that the protection of our trademark rights is an important factor in product recognition, protecting our brand, maintaining
goodwill, and maintaining or increasing market share. We currently have two trademarks that we have filed to register with the
USPTO &mdash; the Akoustis and BulkONE&reg; marks &mdash; and we may expend substantial cost and effort in an attempt to register
new trademarks and maintain and enforce our trademark rights. If we do not adequately protect our rights in our trademarks from
infringement, any goodwill that we have developed in those trademarks could be lost or impaired.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Third
parties may claim that the sale or promotion of our products, when and if we have any, may infringe on the trademark rights of
others. Trademark infringement problems occur frequently in connection with the sale and marketing of products in the RFFE mobile
industry. If we become involved in any dispute regarding our trademark rights, regardless of whether we prevail, we could be required
to engage in costly, distracting and time-consuming litigation that could harm our business. If the trademarks we use are found
to infringe upon the trademark of another company, we could be liable for damages and be forced to stop using those trademarks,
and as result, we could lose all the goodwill that has been developed in those trademarks.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to the protection afforded by patents and trademarks, we seek to rely on copyright, trade secret protection and confidentiality
agreements to protect proprietary know-how that is not patentable, processes for which patents are difficult to enforce and any
other elements of our processes that involve proprietary know-how, information or technology that is not covered by patents. For
Akoustis, this includes chip layouts, circuit designs, resonator layouts and implementation, and membrane definition. Although
we require all of our employees and certain consultants and advisors to assign inventions to us, and all of our employees, consultants,
advisors and any third parties who have access to our proprietary know-how, information or technology to enter into confidentiality
agreements, our trade secrets and other proprietary information may be disclosed or competitors may otherwise gain access to such
information or independently develop substantially equivalent information. If we are unable to prevent material disclosure of
the intellectual property related to our technologies to third parties, we will not be able to establish or maintain the competitive
advantage that we believe is provided by such intellectual property, which would weaken our competitive market position, and materially
adversely affect our business and operational results.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Development
of certain technologies with our manufacturers may result in restrictions on jointly-developed intellectual property.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
order to maintain and expand our strategic relationship with manufacturers of our filters, we may, from time to time, develop
certain technologies jointly with these manufacturers and file for further intellectual property protection and/or seek to commercialize
such technologies. We may enter into joint development agreements with manufacturers to provide for joint development works and
joint intellectual property rights by us and by such manufacturer. Such agreements may restrict our commercial use of such intellectual
property, or may require written consent from, or a separate agreement with, that manufacturer. In other cases, we may not have
any rights to use intellectual property solely developed and owned by such manufacturer or another third party. If we cannot obtain
commercial use rights for such jointly-owned intellectual property or intellectual property solely owned by these manufacturers,
our future product development and commercialization plans may be adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may be subject to claims of infringement, misappropriation or misuse of third party intellectual property that, regardless of
merit, could result in significant expense and loss of our intellectual property rights.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
semiconductor industry is characterized by the vigorous pursuit and protection of intellectual property rights. We have not undertaken
a comprehensive review of the rights of third parties in our field. From time to time, we may receive notices or inquiries from
third parties regarding our products or the manner in which we conduct our business suggesting that we may be infringing, misappropriating
or otherwise misusing patent, copyright, trademark, trade secret and other intellectual property rights. Any claims that our technology
infringes, misappropriates or otherwise misuses the rights of third parties, regardless of their merit or resolution, could be
expensive to litigate or settle and could divert the efforts and attention of our management and technical personnel, cause significant
delays and materially disrupt the conduct of our business. We may not prevail in such proceedings given the complex technical
issues and inherent uncertainties in intellectual property litigation. If such proceedings result in an adverse outcome, we could
be required to:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">pay
                                         substantial damages, including treble damages if we were held to have willfully infringed,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">cease
                                         the manufacture, offering for sale or sale of the infringing technology or processes,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">expend
                                         significant resources to develop non-infringing technology or processes,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">obtain
                                         a license from a third party, which may not be available on commercially reasonable terms,
                                         or may not be available at all, or</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">lose
                                         the opportunity to license our technology to others or to collect royalty payments based
                                         upon successful protection and assertion of our intellectual property against others.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, our agreements with prospective customers and manufacturing partners may require us to indemnify such customers and
manufacturing partners for third party intellectual property infringement claims. Pursuant to such agreements, we may be required
to defend such customers and manufacturing partners against certain claims that could cause us to incur additional costs. While
we endeavor to include as part of such indemnification obligations a provision permitting us to assume the defense of any indemnification
claim, not all of our current agreements contain such a provision and we cannot provide any assurance that our future agreements
will contain such a provision, which could result in increased exposure to us in the case of an indemnification claim.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Defense
of any intellectual property infringement claims against us, regardless of their merit, would involve substantial litigation expense
and would be a significant diversion of resources from our business. In the event of a successful claim of infringement against
us, we may have to pay substantial damages, obtain one or more licenses from third parties, limit our business to avoid the infringing
activities, pay royalties and/or redesign our infringing technology or alter related formulations, processes, methods or other
technologies, any or all of which may be impossible or require substantial time and monetary expenditure. The occurrence of any
of the above events could prevent us from continuing to develop and commercialize our filters and our business could materially
suffer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risks
Related to our Financial Condition</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
have a history of losses, will need substantial additional funding to continue our operations and may not achieve or sustain profitability
in the future.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
operations have consumed substantial amounts of cash since inception. We have incurred losses since our incorporation and formation
in 2014. Although our newly acquired STC-MEMS Business has a potential revenue stream estimation of $1.5 million in the current
fiscal year, (which are not guaranteed), and although we plan to apply for additional grants in the calendar year 2018, we do
not expect meaningful revenues from our resonator technology until at least the second half of the calendar year 2018. There is
no guarantee that the grants we apply for will be awarded to us, and if our forecasts for the Company prove incorrect, the business,
operating results and financial condition of the Company will be materially and adversely affected. We anticipate that our operating
expenses will increase in the foreseeable future as we continue to pursue the development of our patent-pending single-crystal
acoustic wave filter technology, invest in marketing, sales and distribution of our RF filters to grow our business, acquire customers,
commercialize our technology in the mobile wireless market and continue the transition of our manufacturing to our STC-MEMS Business.
These efforts may prove more expensive than we currently anticipate, and we may not succeed in generating sufficient revenues
to offset these higher expenses. In addition, we expect to incur significant expenses related to regulatory requirements and our
ability to obtain, protect, and defend our intellectual property rights.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may also encounter unforeseen expenses, difficulties, complications, delays and other unknown factors that may increase our capital
needs and/or cause us to spend our cash resources faster than we expect. Accordingly, we will need to obtain substantial additional
funding in order to continue our operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
date, we have financed our operations through a mix of investments from private investors, the incurrence of debt, and grant funding,
and we expect to continue to utilize such means of financing for the foreseeable future. Additional funding from those or other
sources may not be available when or in the amounts needed, on acceptable terms, or at all. If we raise capital through the sale
of equity, or securities convertible into equity, it would result in dilution to our then existing stockholders, which could be
significant depending on the price at which we may be able to sell our securities. If we raise additional capital through the
incurrence of indebtedness, we would likely become subject to covenants restricting our business activities, and holders of debt
instruments may have rights and privileges senior to those of our equity investors. In addition, servicing the interest and principal
repayment obligations under debt facilities could divert funds that would otherwise be available to support research and development,
or commercialization activities. If we are unable to raise capital when needed or on attractive terms, we could be forced to delay,
reduce or eliminate our R&amp;D programs for our acoustic wave filter technology or any future commercialization efforts. Any
of these events could materially and adversely affect our business, financial condition and prospects, and could cause our business
to fail.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
independent registered public accounting firm has expressed doubt about our ability to continue as a going concern.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s historical financial statements have been prepared under the assumption that we will continue as a going concern.
Our independent registered public accounting firm has issued a report that included an explanatory paragraph referring to our
recurring net losses and accumulated deficit and expressing substantial doubt in our ability to continue as a going concern. Our
ability to continue as a going concern is dependent upon our ability to obtain additional equity financing or other capital, attain
further operating efficiencies, reduce expenditures, and, ultimately, to generate revenue. Our financial statements do not include
any adjustments that might result from the outcome of this uncertainty.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s management has also evaluated whether there are conditions and events that raise substantial doubt about the entity&rsquo;s
ability to continue as a going concern. As a result of that assessment, the Company has determined that if adequate funds are
not available to us when we need them either through capital or debt or through the commercialization of our products, those conditions
would indicate substantial doubt about our ability to continue as a going concern.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk
Related to Managing Any Growth We May Experience</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may engage in future acquisitions that could disrupt our business, cause dilution to our stockholders and harm our financial condition
and operating results.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
we currently have no specific plans to acquire any other businesses, we may, in the future, make acquisitions of, or investments
in, companies that we believe have products or capabilities that are a strategic or commercial fit with our current business or
otherwise offer opportunities for our company. In connection with these acquisitions or investments, we may:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">issue
                                         Common Stock or other forms of equity that would dilute our existing stockholders&rsquo;
                                         percentage of ownership,</FONT></TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">incur
                                         debt and assume liabilities, and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">incur
                                         amortization expenses related to intangible assets or incur large and immediate write-offs.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may not be able to complete acquisitions on favorable terms, if at all. If we do complete an acquisition, we cannot assure you
that it will ultimately strengthen our competitive position or that it will be viewed positively by customers, financial markets
or investors. Furthermore, future acquisitions could pose numerous additional risks to our expected operations, including:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">problems
                                         integrating the purchased business, products or technologies,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">challenges
                                         in achieving strategic objectives, cost savings and other anticipated benefits,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">increases
                                         to our expenses,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                         assumption of significant liabilities that exceed the limitations of any applicable indemnification
                                         provisions or the financial resources of any indemnifying party,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">inability
                                         to maintain relationships with prospective key customers, vendors and other business
                                         partners of the acquired businesses,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">diversion
                                         of management&rsquo;s attention from their day-to-day responsibilities,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">difficulty
                                         in maintaining controls, procedures and policies during the transition and integration,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">entrance
                                         into marketplaces where we have no or limited prior experience and where competitors
                                         have stronger marketplace positions,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">potential
                                         loss of key employees, particularly those of the acquired entity, and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">historical
                                         financial information may not be representative or indicative of our results as a combined
                                         company.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
business and operations would suffer in the event of system failures, and our operations are vulnerable to interruption by natural
disasters, terrorist activity, power loss and other events beyond our control, the occurrence of which could materially harm our
business.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Despite
the implementation of security measures, our internal computer systems and those of our contractors and consultants are vulnerable
to damage from computer viruses, unauthorized access as well as telecommunication and electrical failures. While we have not experienced
any such system failure, accident or security breach to date, if such an event were to occur and cause interruptions in our operations,
it could result in a material disruption of our R&amp;D. If any disruption or security breach resulted in a loss of or damage
to our data or applications, or inappropriate disclosure of confidential or proprietary information, we could incur liability
and/or the further development of our technology for RF filters could be delayed.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are also vulnerable to accidents, electrical blackouts, labor strikes, terrorist activities, war and other natural disasters and
other events beyond our control, and we have not undertaken a systematic analysis of the potential consequences to our business
as a result of any such events and do not have an applicable recovery plan in place. We currently do not carry other business
interruption insurance that would compensate us for actual losses from interruptions of our business that may occur, and any losses
or damages incurred by us could cause our business to materially suffer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risks
Related to Regulatory Requirements</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
could fail to maintain our Trusted Foundry accreditation in our New York Fabrication Facility.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although
our New York fabrication facility has not generated any revenue to date from its Trusted Foundry accreditation, a failure to maintain
that accreditation in the future could hamper our ability to generate product and foundry services revenue related to potential
Aerospace and Defense customers.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
may incur substantial expenses in connection with regulatory requirements, and any regulatory compliance failure could cause our
business to suffer.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
wireless communications industry is subject to ongoing regulatory obligations and review. See &ldquo;Description of Business &mdash;
Government Regulations&rdquo; below. Maintaining compliance with these requirements may result in significant additional expense
to us, and any failure to maintain such compliance could cause our business to suffer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Noncompliance
with applicable regulations or requirements could also subject us to investigations, sanctions, mandatory product recalls, enforcement
actions, disgorgement of profits, fines, damages, civil and criminal penalties, or injunctions. An adverse outcome in any such
litigation could require us to pay contractual damages, compensatory damages, punitive damages, attorneys&rsquo; fees and costs.
These enforcement actions could harm our business, financial condition and results of operations. If any governmental sanctions
are imposed, or if we do not prevail in any possible civil or criminal litigation, our business, financial condition and results
of operations could be materially adversely affected. In addition, responding to any action will likely result in a significant
diversion of management&rsquo;s attention and resources and an increase in professional fees.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Compliance
with regulations regarding the use of &ldquo;conflict minerals&rdquo; could limit the supply and increase the cost of certain
metals used in manufacturing our products.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Regulations
in the United States require that we determine whether certain materials used in our products, referred to as conflict minerals,
originated in the Democratic Republic of the Congo or adjoining countries, or originated from recycled or scrap sources. We are
required to comply with the SEC&rsquo;s conflict minerals rules, and we may incur costs associated with implementing and maintaining
policies and procedures to comply with the applicable rules and due diligence procedures. In addition, the verification and reporting
requirements could affect the sourcing and availability of minerals that are used in the manufacture of our products, and we may
face reputational and competitive challenges if we are unable to sufficiently verify the origins of all conflict minerals used
in our products. We may also face challenges with government regulators, potential customers, suppliers and manufacturers if we
are unable to sufficiently verify that the metals used in our products are conflict free.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>There
could be an adverse change or increase in the laws and/or regulations governing our business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
and our operating subsidiary are subject to various laws and regulations in different jurisdictions, and the interpretation and
enforcement of laws and regulations are subject to change. We also will be subject to different tax regulations in each of the
jurisdictions where we will conduct our business or where our management or the management of our operating subsidiary is located.
We expect that the scope and extent of regulation in these jurisdictions, as well as regulatory oversight and supervision, will
generally continue to increase. There can be no assurance that future regulatory, judicial and legislative changes in any jurisdiction
will not have a material adverse effect on us or hinder us in the operation of our business. In addition, we may incur substantial
costs in order to comply with current or future environmental, health and safety laws and regulations applicable to us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">These
current or future laws and regulations may impair our research, development or production efforts or impact the research activities
we pursue. Our failure to comply with these laws and regulations also may result in substantial fines, penalties or other sanctions,
which could cause our financial condition to suffer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Investment
Risks</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">You
could lose all of your investment.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">An
investment in our securities is speculative and involves a high degree of risk. Potential investors should be aware that the value
of an investment in the Company may go down as well as up. In addition, there can be no certainty that the market value of an
investment in the Company will fully reflect its underlying value. You could lose your entire investment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5pt; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
stock trades in low volumes, which may make it more difficult for investors to sell their shares quickly. </I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5pt; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Common Stock trades on the Nasdaq Capital Market, but it trades in low volumes, which may make it more difficult for investors
to sell their shares quickly. This situation may be attributable to a number of factors, including but not limited to the fact
that we are a development-stage company that is relatively unknown to stock analysts, stock brokers, institutional investors,
and others in the investor community. In addition, investors may be risk averse to investments in development-stage companies.
As a consequence, it may be more difficult for investors to sell their shares quickly and our stock price may be more sensitive
to sales of our Common Stock in the market. The low trading volume is outside of our control and may not increase or, if it increases,
may not be maintained.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>You
may experience dilution of your ownership interests because of the future issuance of additional shares of our common or preferred
stock or other securities that are convertible into or exercisable for our common or preferred stock, including as a result of
triggering price protection rights held by certain investors.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the future, we may issue our authorized but previously unissued equity securities, resulting in the dilution of the ownership
interests of our stockholders. The Company is authorized to issue an aggregate of 45,000,000 shares of Common Stock and 5,000,000
shares of preferred stock. We may issue additional shares of our Common Stock or other securities that are convertible into or
exercisable for our Common Stock in connection with hiring or retaining employees, future acquisitions, future sales of our securities
for capital raising purposes, or for other business purposes. For example, we issued approximately 5.4 million shares in private
placement offerings and approximately 1.6 million shares to new and continuing employees in calendar 2017, and we expect to hire
an additional 15 to 20 employees in the next 12 months. In addition, as of January 10, 2018, warrants and options to purchase
756,809 and 1,166,859 shares, respectively, of our Common Stock remained outstanding or had otherwise been granted to participants
in the Company&rsquo;s stock incentive plans, and restricted shares and restricted stock units for 771,494 shares of our Common
Stock had been granted to participants in the Company&rsquo;s stock incentive plans. In addition, certain investors have certain
price protection rights. Pursuant to such rights, if we issue shares of our Common Stock (subject to customary exceptions, including
issuances of awards under Company employee stock incentive programs and certain issuances in connection with credit arrangements)
at a price less than $5.50 per share, such investors will be entitled to receive (for no additional consideration) additional
shares of our Common Stock in an amount such that, when added to the number of shares of Common Stock they initially purchased,
will equal the number of shares of Common Stock that their initial investment would have purchased at the greater of the lower
purchase price and $5.00. The future issuance of additional shares of our Common Stock may create downward pressure on the trading
price of the Common Stock. We will need to raise additional capital in the near future to meet our working capital needs, and
there can be no assurance that we will not be required to issue additional shares, warrants or other convertible securities in
the future in conjunction with these capital raising efforts, including at a price (or exercise prices) below the price you paid
for your stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>The
ability of our Board of Directors to issue additional stock may prevent or make more difficult certain transactions, including
a sale or merger of the Company.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Board of Directors is authorized to issue up to 5,000,000 shares of preferred stock with powers, rights and preferences designated
by it. Shares of voting or convertible preferred stock could be issued, or rights to purchase such shares could be issued, to
create voting impediments or to frustrate persons seeking to effect a takeover or otherwise gain control of the Company. The ability
of the Board to issue such additional shares of preferred stock, with rights and preferences it deems advisable, could discourage
an attempt by a party to acquire control of the Company by tender offer or other means. Such issuances could therefore deprive
stockholders of benefits that could result from such an attempt, such as the realization of a premium over the market price for
their shares in a tender offer or the temporary increase in market price that such an attempt could cause. Moreover, the issuance
of such additional shares of preferred stock to persons friendly to the Board of Directors could make it more difficult to remove
incumbent managers and directors from office even if such change were to be favorable to stockholders generally.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
do not anticipate paying dividends on our Common Stock.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash
dividends have never been declared or paid on our Common Stock, and we do not anticipate such a declaration or payment for the
foreseeable future. We expect to use future earnings, if any, to fund business growth. Therefore, stockholders will not receive
any funds absent a sale of their shares of Common Stock. If we do not pay dividends, our Common Stock may be less valuable because
a return on your investment will only occur if our stock price appreciates. We cannot assure stockholders that our stock price
will appreciate or that they will receive a positive return on their investment if and when they sell their shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
are an emerging growth company, and the reduced disclosure requirements applicable to emerging growth companies will make our
Common Stock less attractive to investors.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are an emerging growth company under the JOBS Act. For as long as we continue to be an emerging growth company, we intend to take
advantage of certain exemptions from various reporting requirements that are applicable to other public companies including, but
not limited to, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements,
exemptions from the requirements of holding a nonbinding advisory stockholder vote on executive compensation (&ldquo;say-on-pay&rdquo;),
the frequency of say-on-pay and any golden parachute payments not previously approved, exemption from the requirement of auditor
attestation in the assessment of our internal control over financial reporting and exemption from any requirement that may be
adopted by the Public Company Accounting Oversight Board. If we do, the information that we provide stockholders may be different
than what is available with respect to other public companies. We cannot predict if investors will find our Common Stock less
attractive because we will rely on these exemptions. If some investors find our Common Stock less attractive as a result, there
may be a less active trading market for our Common Stock and our stock price may be more volatile.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards until such time as those standards
apply to private companies. We have irrevocably elected to take advantage of this extended transition period. Since we will not
be required to comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required
for other public companies, our financial statements may not be comparable to the financial statements of companies that comply
with the effective dates of those accounting standards.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
will remain an emerging growth company until the earliest of (1) the end of the fiscal year in which the market value of our Common
Stock that is held by non-affiliates exceeds $700 million as of the end of the second fiscal quarter, (2) the end of the fiscal
year in which we have total annual gross revenues of $1.07 billion or more during such fiscal year, (3) the date on which we issue
more than $1 billion in non-convertible debt in a three-year period or (4) June 30, 2019, the end of the fiscal year following
the fifth anniversary of the date of the first sale of our Common Stock pursuant to an effective registration statement filed
under the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;). Decreased disclosures in our SEC filings due
to our status as an &ldquo;emerging growth company&rdquo; may make it harder for investors to analyze our results of operations
and financial prospects.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Even
after we no longer qualify as an emerging growth company, we may still qualify as a &ldquo;smaller reporting company,&rdquo; which
would allow us to take advantage of many of the same exemptions from disclosure requirements, including not being required to
comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act and reduced disclosure obligations regarding
executive compensation. Some investors may find our Common Stock less attractive because we rely on these exemptions, there may
be a less active trading market for our Common Stock and our stock price may be more volatile.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Being
a public company is expensive and administratively burdensome.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
a public reporting company, we are subject to the information and reporting requirements of the Exchange Act, and other federal
securities laws, rules and regulations related thereto, including compliance with the Sarbanes-Oxley Act. Complying with these
laws and regulations requires the time and attention of our Board of Directors and management, and increases our expenses. Among
other things, we are required to:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">maintain
                                         and evaluate a system of internal control over financial reporting in compliance with
                                         the requirements of Section 404 of the Sarbanes-Oxley Act and the related rules and regulations
                                         of the SEC and the Public Company Accounting Oversight Board,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">maintain
                                         policies relating to disclosure control and procedures,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">prepare
                                         and distribute periodic reports in compliance with our obligations under federal securities
                                         laws,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">institute
                                         a more comprehensive compliance function, including with respect to corporate governance,
                                         and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">involve,
                                         to a greater degree, our outside legal counsel and accountants in the above activities.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
costs of preparing and filing annual and quarterly reports, proxy statements and other information with the SEC and furnishing
audited reports to stockholders is expensive and much greater than that of a privately-held company, and compliance with these
rules and regulations may require us to hire additional financial reporting, internal controls and other finance personnel, and
will involve a material increase in regulatory, legal and accounting expenses and the attention of management. There can be no
assurance that we will be able to comply with the applicable regulations in a timely manner, if at all. In addition, being a public
company makes it more expensive for us to obtain director and officer liability insurance. In the future, we may be required to
accept reduced coverage or incur substantially higher costs to obtain this coverage. These factors could also make it more difficult
for us to attract and retain qualified executives and members of our Board of Directors, particularly directors willing to serve
on the Audit Committee of our Board of Directors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>If
we fail to remediate the identified material weaknesses and maintain effective controls and procedures, we may not be able to
accurately report our financial results, which could have a material adverse effect on our operations, financial condition, and
the price of our Common Stock.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are required to maintain disclosure controls and procedures and internal control over financial reporting. Section 404 of the
Sarbanes-Oxley Act of 2002 requires us to include in our annual reports on Form 10-K an assessment by management of the effectiveness
of our internal control over financial reporting. As disclosed in Item 9A of our Annual Report on Form 10-K for the fiscal year
ended June 30, 2017, our management identified a material weakness in our internal control over financial reporting, causing our
disclosure controls and procedures and our internal control over financial reporting to be ineffective as of June 30, 2017, and
as further disclosed in Part I, Item 4 of our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017,
our management identified a material weakness in the design of our internal controls related to our accounting for and reporting
of stock-based compensation. A material weakness is a deficiency, or combination of deficiencies, such that there is a reasonable
possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a
timely basis. Remediation of the material weakness will require management attention and cause the Company to incur additional
expenses. If we fail to remediate the material weakness, or if we are unable to maintain effective controls and procedures in
the future, our ability to record, process, summarize, and report financial information accurately and within the time periods
specified in the rules and forms of the SEC could be adversely affected, we could lose investor confidence in the accuracy and
completeness of our financial reports, and we may be subject to investigation or sanctions by the SEC. Any such consequence or
other negative effect could adversely affect our operations, financial condition, and the price of our Common Stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, at such time, if any, as we are no longer a smaller reporting company or an emerging growth company, our independent
registered public accounting firm will have to attest to and report on management&rsquo;s assessment of the effectiveness of our
internal control over financial reporting. If and when we are required to have our independent registered public accounting firm
attest to management&rsquo;s assessment of the effectiveness of our internal control over financial reporting, if our independent
registered public accounting firm is not satisfied with the adequacy of our internal control over financial reporting, or if the
independent auditors interpret the requirements, rules, or regulations differently than we do, then they may decline to attest
to management&rsquo;s assessment or may issue a report that is qualified. Any of these events could result in a loss of investor
confidence in the reliability of our financial statements, which could negatively affect the price of our Common Stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="a004_v2"></A>DETERMINATION
OF OFFERING PRICE</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
currently is a limited public market for our Common Stock. The selling stockholders will determine at what price they may sell
the offered shares, and such sales may be made at prevailing market prices or at privately negotiated prices. See &ldquo;Plan
of Distribution&rdquo; below for more information.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a005_v2"></A>USE
OF PROCEEDS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
shares of Common Stock offered hereby are being registered for the account of the selling stockholders named in this prospectus.
As a result, all proceeds from the sales of the Common Stock will go to the selling stockholders and we will not receive any proceeds
from the resale of the Common Stock by the selling stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">However,
we will receive proceeds from the exercise of the stock options already granted under the Plans if and to the extent that any
such options are exercised by the selling stockholders. We would expect to use these proceeds, if any, for general working capital
purposes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a006_v2"></A>DESCRIPTION
OF SECURITIES</B></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have authorized capital stock consisting of 45,000,000 shares of Common Stock and 5,000,000 shares of preferred stock. As of the
date of this prospectus, we had 22,320,700 shares of Common Stock issued and outstanding, and no shares of preferred stock issued
and outstanding.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common
Stock</FONT></P>

<P STYLE="font: bold 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
holders of outstanding shares of Common Stock are entitled to receive dividends out of assets or funds legally available for the
payment of dividends at such times and in such amounts as the board from time to time may determine. Holders of Common Stock are
entitled to one vote for each share held on all matters submitted to a vote of stockholders. There is no cumulative voting of
the election of directors then standing for election. The Common Stock is not entitled to pre-emptive rights and is not subject
to conversion or redemption. Upon liquidation, dissolution or winding up of our company, the assets legally available for distribution
to stockholders are distributable ratably among the holders of the Common Stock after payment of liquidation preferences, if any,
on any outstanding payment of other claims of creditors. Each outstanding share of Common Stock is duly and validly issued, fully
paid and non-assessable.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Preferred
Stock</FONT></P>

<P STYLE="font: bold 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares
of preferred stock may be issued from time to time in one or more series, each of which will have such distinctive designation
or title as shall be determined by our Board of Directors prior to the issuance of any shares thereof. Preferred stock will have
such voting powers, whole or limited, or no voting powers, and such preferences and relative, participating, optional or other
special rights and such qualifications, limitations or restrictions thereof, as shall be stated in such resolution or resolutions
providing for the issue of such class or series of preferred stock as may be adopted from time to time by the Board of Directors
prior to the issuance of any shares thereof. The number of authorized shares of preferred stock may be increased or decreased
(but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of the voting
power of all the then outstanding shares of our capital stock entitled to vote generally in the election of the directors, voting
together as a single class, without a separate vote of the holders of the preferred stock, or any series thereof, unless a vote
of any such holders is required pursuant to any preferred stock designation.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
we do not currently have any plans for the issuance of additional preferred stock, the issuance of such preferred stock could
adversely affect the rights of the holders of Common Stock and, therefore, reduce the value of the Common Stock. It is not possible
to state the actual effect of the issuance of any shares of preferred stock on the rights of holders of the Common Stock until
the Board of Directors determines the specific rights of the holders of the preferred stock; however, these effects may include:</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Restricting
                                         dividends on the Common Stock;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Diluting
                                         the voting power of the Common Stock;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Impairing
                                         the liquidation rights of the Common Stock; or</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Delaying
                                         or preventing a change in control of the Company without further action by the stockholders.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
than in connection with shares of preferred stock (as explained above), which preferred stock is not currently designated nor
contemplated by us, we do not believe that any provision of our charter or By-Laws would delay, defer or prevent a change in control.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Transfer
Agent</FONT></P>

<P STYLE="font: bold 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
transfer agent for our Common Stock is Globex Transfer, LLC. The transfer agent&rsquo;s address is 780 Deltona Blvd., Suite 202,
Deltona, FL 32725 and its telephone number is 813-344-4490.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Anti-Takeover
Effects of Provisions of Our Certificate of Incorporation and By-Laws and Delaware State Law</FONT></P>

<P STYLE="font: bold 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
provisions of the General Corporation Law of the State of Delaware, or DGCL, and our Certificate of Incorporation and By-Laws
could have the effect of discouraging others from attempting an unsolicited offer to acquire our company. Such provisions may
also have the effect of preventing changes in our management. It is possible that these provisions could make it more difficult
to accomplish transactions that stockholders may otherwise deem to be in their best interests.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Authorized
but unissued shares. </I>The authorized but unissued shares of our Common Stock and our preferred stock are available for future
issuance without any further vote or action by our stockholders. These additional shares may be utilized for a variety of corporate
purposes, including future public or private offerings to raise additional capital, corporate acquisitions and employee benefit
plans. The existence of authorized but unissued shares of our Common Stock and our preferred stock could render more difficult
or discourage an attempt to obtain control over us by means of a proxy contest, tender offer, merger or otherwise.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Special
meeting of stockholders and advance notice requirements for stockholder proposals. </I>Our By-Laws require that special meetings
of stockholders be called only by a majority of our board of directors, by the chairman of the board, the Chief Executive Officer,
the President, or the Secretary. In addition, our By-Laws provide that candidates for director may be nominated and other business
brought before an annual meeting only by the board of directors or by a stockholder who gives written notice to us not less than
90 days, nor more than 120 days, prior to the one year anniversary of the date of the annual meeting of the previous year. These
provisions may have the effect of deterring unsolicited offers to acquire our company or delaying stockholder actions, even if
they are favored by the holders of a majority of our outstanding voting securities.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Business
combinations</I>. The DGCL generally prohibits a corporation from engaging in any business combination with any interested stockholder
for a three-year period following the time that the stockholder became an interested stockholder, unless:</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 5%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 2%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">prior
    to such time, our board of directors approved either the business combination or the transaction which resulted in the stockholder
    becoming an interested stockholder; </FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 5%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 2%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">upon
    consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder
    owned at least 85% of our voting stock outstanding at the time the transaction commenced, excluding certain shares; or </FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 5%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 2%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">at
    or subsequent to that time, the business combination is approved by our board of directors and by the affirmative vote of
    holders of at least 66 <SUP>2</SUP>&frasl;<SUB>3</SUB>% of the outstanding voting stock that is not owned by the interested
    stockholder.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Generally,
a &ldquo;business combination&rdquo; includes a merger, asset or stock sale or other transaction resulting in a financial benefit
to the interested stockholder. Subject to certain exceptions, an &ldquo;interested stockholder&rdquo; is a person who, together
with that person&rsquo;s affiliates and associates, owns, or within the previous three years owned, 15% or more of our voting
stock.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
certain circumstances, this provision could make it more difficult for a person who would be an &ldquo;interested stockholder&rdquo;
to effect various business combinations with a corporation for a three-year period. However, this provision generally does not
apply to a corporation that does not have a class of voting stock that is listed on a national securities exchange or held of
record by more than 2,000 stockholders. Accordingly, this provision does not currently apply to us.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a007_v2"></A>SELLING
STOCKHOLDERS</B></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
table below sets forth information concerning the resale of the shares by the selling stockholders. We will not receive any proceeds
from the resale of the shares by the selling stockholders.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
table below sets forth, as of January 29, 2018, (i) the name of each person who is offering the resale of shares by this prospectus
and their position with us; (ii) the number of shares (and the percentage, if 1% or more) of Common Stock beneficially owned (as
such term is defined in Rule 13d-3 under the Exchange Act) by each person; (iii) the number of shares that each selling stockholder
may offer for sale from time to time pursuant to this prospectus, whether or not such selling stockholder has a present intention
to do so; and (iv) the number of shares (and the percentage, if 1% or more) of Common Stock each person will own after the offering,
assuming they sell all of the shares offered. Unless otherwise indicated, beneficial ownership is direct and the person indicated
has sole voting and investment power. Unless otherwise indicated, the address for each selling stockholder listed in the table
below is c/o Akoustis Technologies, Inc., 9805 Northcross Center Court, Suite A, Huntersville, NC 28078.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
table below has been prepared based upon the information furnished to us by the selling stockholders as of January 29, 2018, and
we have not independently verified this information. The selling stockholders identified below may have sold, transferred or otherwise
disposed of some or all of their shares since the date on which the information in the following table is presented in transactions
exempt from or not subject to the registration requirements of the Securities Act. Information concerning the selling stockholders
may change from time to time and, if necessary, we will amend or supplement this prospectus accordingly. We cannot give an estimate
as to the number of shares of Common Stock that will actually be held by the selling stockholders upon termination of this offering
because the selling stockholders may offer some or all of their Common Stock under the offering contemplated by this prospectus
or acquire additional shares of Common Stock. The total number of shares that may be sold hereunder will not exceed the number
of shares offered hereby. Please read the section entitled &ldquo;Plan of Distribution&rdquo; in this prospectus.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; border-top: Black 1pt solid">Selling Stockholder</TD><TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; border-top: Black 1pt solid">Shares of Common Stock Beneficially Owned Prior to this Offering (1)</TD><TD STYLE="border-top: Black 1pt solid; font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; border-top: Black 1pt solid">Percentage of Common Stock Beneficially Owned Before Resale (3)</TD><TD STYLE="border-top: Black 1pt solid; font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; border-top: Black 1pt solid">Shares of Common Stock Offered for Resale in this Offering</TD><TD STYLE="border-top: Black 1pt solid; font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; border-top: Black 1pt solid">Shares of Common Stock Beneficially Owned After this Offering (2)</TD><TD STYLE="border-top: Black 1pt solid; font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; border-top: Black 1pt solid">Percentage of Common Stock Beneficially Owned After Resale (3)</TD><TD STYLE="border-top: Black 1pt solid; font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 25%; text-align: left">Alan Kathman (4)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">24,307</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">24,307</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Alexander Feldman</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,089</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,089</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Andrey Grinman (5)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,103</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,103</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Arthur Geiss (6)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">80,125</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">86,307</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,818</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Cindy Payne (7)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,375</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">57,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,375</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Dave Aichele (8)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">126,784</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">122,534</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,250</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">David Keller (9)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,205</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,205</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Hannah Stalvey (10)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,667</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,667</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Isik Kizilyalli (11)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">79,817</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">64,817</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">James R. Shealy (12)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">447,082</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.0</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">71,816</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">375,266</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.7</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Jeff McMahon (13)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">557,342</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.5</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">62,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">515,342</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.3</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Jeffrey Shealy (14)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,275,862</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14.7</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,239,862</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14.5</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Jerry Neal (15)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">521,545</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.3</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">62,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">479,545</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.1</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Lora Shealy (16)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mark Boomgarden (17)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">111,084</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">108,934</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,150</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Michael David Hodge, II (18)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Michael P. Lewis (19)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">34,234</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">34,234</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Mike McLain (20)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Ozgur Aktas (21)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,205</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,205</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Pinal Patel (22)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">29,957</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">29,957</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Ramakrishna Vetury (23)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">65,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">65,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Richard J. Brown (24)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,307</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,307</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Richard T. Ogawa (25)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">155,837</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">64,817</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">91,020</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Shawn Gibb (26)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">76,520</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">76,520</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Steve P. Denbaars (27)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">291,312</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.3</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">126,817</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">184,495</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Westbrook Hosse (28)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Total</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">1,285,636</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify; "><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">*Less
than 1%</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beneficial
ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect
to securities. Shares of Common Stock underlying options currently exercisable, or exercisable within 60 days after January 29,
2018 (as used in this section, the &ldquo;Determination Date&rdquo;), are deemed outstanding for purposes of computing the beneficial
ownership of the person holding such options but are not deemed outstanding for computing the beneficial ownership of any other
person. Except where we had knowledge of such ownership, the number presented in this column may not include shares held in street
name or through other entities over which the selling stockholder has voting and dispositive power.</FONT>&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assumes
all of the shares of Common Stock to be registered on the registration statement of which this prospectus is a part are sold in
the offering, that shares of Common Stock beneficially owned by such selling stockholder but not being offered pursuant to this
prospectus (if any) are not sold, and that no additional shares are purchased or otherwise acquired.&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Percentages
are based on the 22,320,700 shares of Common Stock issued and outstanding as of the Determination Date. Shares of our Common Stock
subject to options that are currently exercisable, or exercisable within 60 days of the Determination Date, are deemed to be outstanding
for the purpose of computing the percentage ownership of the person holding those options, but are not treated as outstanding
for the purpose of computing the percentage ownership of any other person.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes
6,914 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes
7,698 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.
Geiss is Co-Chairman of the Company&rsquo;s Board of Directors and provides consulting services to the Company through his company,
AEG Consulting, LLC (&ldquo;AEG Consulting&rdquo;). Includes 28,256 restricted shares that are subject to a repurchase option
by the Company. The repurchase option expires as the restricted shares vest over time. Includes 20,000 shares of Common Stock
issuable upon the exercise of vested options that are exercisable until May 22, 2025.&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(7)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ms.
Payne served as the Company&rsquo;s Chief Financial Officer until July 14, 2017 when she voluntarily resigned and transitioned
into the position of Vice President of Finance. Ms. Payne resigned from all positions she held with the Company, effective January
12, 2018.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(8)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.
Aichele is the Company&rsquo;s Vice President of Business Development. Includes 75,000 restricted shares that are subject to a
repurchase option by the Company. The repurchase option expires as the restricted shares vest over time.&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(9)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes
16,205 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(10)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes
8,000 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(11)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes
16,205 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(12)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James
R. Shealy is the brother of the Company&rsquo;s President and Chief Executive Officer and has provided consulting services to
the Company. Includes 23,205 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires
as the restricted shares vest over time.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(13)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.
McMahon is a director of the Company. Includes 22,000 restricted shares that are subject to a repurchase option by the Company.
The repurchase option expires as the restricted shares vest over time. Includes 20,000 shares of Common Stock issuable upon the
exercise of vested options that are exercisable until May 22, 2025.&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(14)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jeffrey
Shealy is the President, Chief Executive Officer and a director of the Company. Includes 36,000 restricted shares that are subject
to a repurchase option by the Company. The repurchase option expires as the restricted shares vest over time.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(15)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.
Neal is Co-Chairman of the Company&rsquo;s Board of Director. Includes 22,000 restricted shares that are subject to a repurchase
option by the Company. The repurchase option expires as the restricted shares vest over time. Includes 20,000 shares of Common
Stock issuable upon the exercise of vested options that are exercisable until May 22, 2025.&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(16)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mrs.
Shealy is the Company&rsquo;s Human Resources Manager and the spouse of the Company&rsquo;s President and Chief Executive Officer.
Includes 4,000 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the
restricted shares vest over time.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(17)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.
Boomgarden served as the Company&rsquo;s Vice President of Operations until his resignation, effective September 15, 2017.&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(18)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes
32,500 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(19)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes
22,799 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(20)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes
27,000 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(21)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes
15,395 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(22)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes
15,104 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(23)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes
65,000 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(24)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes
14,077 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(25)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes
16,204 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(26)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes
51,000 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(27)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.
DenBaars is a director of the Company and has held such position since May 22, 2015. Prior to becoming a director, Mr. DenBaars
provided consulting services to Akoustis, Inc. Includes 38,205 restricted shares that are subject to a repurchase option by the
Company. The repurchase option expires as the restricted shares vest over time. Includes 20,000 shares of Common Stock issuable
upon the exercise of vested options that are exercisable until May 22, 2025.</FONT></P>



<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(28)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes
20,000 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.<BR STYLE="clear: both"></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a008_v2"></A>PLAN
OF DISTRIBUTION</B></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
shares of Common Stock covered by this reoffer prospectus are being registered by Akoustis for the account of the selling stockholders.
The shares of Common Stock offered may be sold from time to time directly by or on behalf of each selling stockholder in one or
more transactions on the NASDAQ Capital Market or any other stock exchange on which the Common Stock may be listed at the time
of sale, in privately negotiated transactions, or through a combination of such methods, at market prices prevailing at the time
of sale, at prices related to such prevailing market prices, at fixed prices (which may be changed) or at negotiated prices. The
selling stockholders may sell shares through one or more agents, brokers or dealers or directly to purchasers. Such brokers or
dealers may receive compensation in the form of commissions, discounts or concessions from the selling stockholders and/or purchasers
of the shares or both. Such compensation as to a particular broker or dealer may be in excess of customary commissions. The number
of shares of Common Stock to be offered or resold by means of this prospectus by each selling stockholder may not exceed, during
any three-month period, the amount specified in Rule 144(e) under the Securities Act.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with their sales, a selling stockholder and any participating broker or dealer may be deemed to be &ldquo;underwriters&rdquo;
within the meaning of the Securities Act, and any commissions they receive and the proceeds of any sale of shares may be deemed
to be underwriting discounts and commissions under the Securities Act. We are bearing all costs relating to the registration of
the shares of Common Stock. Any commissions or other fees payable to brokers or dealers in connection with any sale of the shares
will be borne by the selling stockholders or other party selling such shares. Sales of the shares must be made by the selling
stockholders in compliance with all applicable state and federal securities laws and regulations, including the Securities Act.
In addition to any shares sold hereunder, selling stockholders may sell shares of Common Stock in compliance with Rule 144. There
is no assurance that the selling stockholders will sell all or a portion of the Common Stock offered hereby. The selling stockholders
may agree to indemnify any broker, dealer or agent that participates in transactions involving sales of the shares against certain
liabilities in connection with the offering of the shares arising under the Securities Act. We have notified the selling stockholders
of the need to deliver a copy of this reoffer prospectus in connection with any sale of the shares.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of our Common Stock and activities of the selling
stockholders, which may limit the timing of purchases and sales of any of the shares of Common Stock by the selling stockholders
and any other participating person. Regulation M may also restrict the ability of any person engaged in the distribution of the
shares of Common Stock to engage in passive market-making activities with respect to the shares of Common Stock. Passive market
making involves transactions in which a market maker acts as both our underwriter and as a purchaser of our Common Stock in the
secondary market. All of the foregoing may affect the marketability of the shares of Common Stock and the ability of any person
or entity to engage in market-making activities with respect to the shares of Common Stock.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Once
sold under the registration statement of which this prospectus forms a part, the shares of Common Stock will be freely tradable
in the hands of persons other than our affiliates.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a009_v2"></A>LEGAL
MATTERS</B></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
validity of the shares of Common Stock offered pursuant to this prospectus will be passed upon for us by Womble Bond Dickinson
(US) LLP, Washington, DC.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a010_v2"></A>EXPERTS</B></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
consolidated financial statements of Akoustis Technologies, Inc. and Subsidiaries as of June 30, 2017 and 2016 and for the years
then ended, included in this prospectus and the registration statement of which this prospectus forms a part by reference from
the Company&rsquo;s Annual Report on Form 10-K for the year ended June 30, 2017, have been audited by Marcum LLP, independent
registered public accounting firm, as set forth in its report thereon (which contains an explanatory paragraph relating to substantial
doubt about the ability of Akoustis Technologies, Inc. to continue as a going concern as described in Note 2 to the consolidated
financial statements), which are incorporated herein by reference, have been so incorporated in reliance on such report given
upon such firm&rsquo;s authority as an expert in auditing and accounting.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
special purpose combined financial statements of The Research Foundation for the State University of New York and Fuller Road
Management Corporation, which comprise the special purpose statement of assets acquired and liabilities assumed as of June 26,
2017, and the related special purpose combined statements of revenues and direct expenses for the years ended June 30, 2016 and
2015, included in this prospectus and the registration statement of which this prospectus forms a part by reference from the Company&rsquo;s
Current Reports on Form 8-K/A filed with the SEC on September 12, 2017, have been audited by Marcum LLP, independent registered
public accounting firm, as set forth in its report thereon, which are incorporated herein by reference, have been so incorporated
in reliance on such report given upon such firm&rsquo;s authority as an expert in auditing and accounting.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a011_v2"></A>MATERIAL
CHANGES</B></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
have been no material changes in our affairs since the end of our last fiscal year on June 30, 2017 to the date of this prospectus,
other than those changes that have been described in our Quarterly Report on Form 10-Q that we filed with the SEC on November
14, 2017 and the Current Reports on Form 8-K and 8-K/A, as applicable, that we filed with the SEC on June 30, 2017, July 17, 2017,
July 18, 2017, July 20, 2017, September 6, 2017, September 12, 2017, September 29, 2017, October 6, 2017, November 17, 2017, December
7, 2017, December 15, 2017, December 21, 2017, and January 10, 2018.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a012_v2"></A>WHERE
YOU CAN FIND MORE INFORMATION</B></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
file annual reports, quarterly reports, current reports and other information with the SEC. You may read or obtain a copy of these
reports at our website address, www.akoustis.com, or at the SEC&rsquo;s public reference room at 100 F Street, N.E., Washington,
D.C. 20549. You may obtain information on the operation of the public reference room and their copy charges by calling the SEC
at 1-800-SEC-0330. The SEC maintains a website that contains registration statements, reports, proxy information statements and
other information regarding registrants that file electronically with the SEC. The address of the website is <I>http://www.sec.gov</I>.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have filed with the SEC a Registration Statement on Form S-8 under the Securities Act to register the shares offered by this prospectus.
This prospectus is part of that registration statement and constitutes a prospectus of the Company. This prospectus does not contain
all of the information set forth in the registration statement or the exhibits to the registration statement.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a013_v2"></A>INCORPORATION
BY REFERENCE</B></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
SEC allows us to incorporate by reference certain of our publicly filed documents into this prospectus, which means that we can
disclose important business and financial information to you that is not included in or delivered with this prospectus by referring
you to publicly filed documents that contain the omitted information. The information incorporated by reference is considered
to be part of this prospectus, and any later information that we file with the SEC will automatically update and supersede this
information. You will be deemed to have notice of all information incorporated by reference into this prospectus as if that information
were included in this prospectus.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
incorporate by reference into this prospectus the following documents or information filed with the SEC:</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 31.5pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%; padding-right: 31.5pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 94%; padding-right: 31.5pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Annual
    Report on Form 10-K for the year ended June 30, 2017 filed with the SEC on September 20, 2017;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 31.5pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%; padding-right: 31.5pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 94%; padding-right: 31.5pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amendment
    No. 1 to Annual Report on Form 10-K for the year ended June 30, 2017 filed with the SEC on September 26, 2017;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 31.5pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%; padding-right: 31.5pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 94%; padding-right: 31.5pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Quarterly
    Report on Form 10-Q for the quarter ended September 30, 2017 filed with the SEC on November 14, 2017; and</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 31.5pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%; padding-right: 31.5pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 94%; padding-right: 31.5pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Current
    Reports on Form 8-K and 8-K/A, as applicable (excluding any reports or portions thereof that are deemed to be furnished and
    not filed) with the SEC on June 30, 2017, July 17, 2017, July 18, 2017, July 20, 2017, September 6, 2017, September 12, 2017,
    September 29, 2017, October 6, 2017, November 17, 2017, December 7, 2017, December 15, 2017, December 21, 2017 and January
    10, 2018.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

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<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
will provide without charge to each person upon his or her written or oral request, a copy of any or all documents referred to
above which have been or may be incorporated by reference into this prospectus, excluding exhibits to those documents unless they
are specifically incorporated by reference into those documents. You can request those documents from Akoustis Technologies, Inc.,
at 9805 Northcross Center Court, Suite A, Huntersville, NC 28078, attn: Andrew Wright. You also may contact us at (704) 997-5735
or visit our website at <U>http://www.akoustis.com</U>, under the &ldquo;Investors&rdquo; section, for copies of those documents.
Our website and the information contained on, or that can be accessed through, our website are not a part of this prospectus,
and you should not rely on any such information in making your decision whether to purchase the shares offered hereby.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a014_v2"></A>INDEMNIFICATION
OF DIRECTORS AND OFFICERS</B></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section
102(b)(7) of the DGCL allows a corporation to provide in its certificate of incorporation that a director of the corporation will
not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director,
except where the director breached the duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly
violated a law, authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law or
obtained an improper personal benefit. The Company&rsquo;s certificate of incorporation provides for this limitation of liability.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section
145 of the DGCL, or Section 145, provides that a Delaware corporation may indemnify any person who was, is or is threatened to
be made, party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or
investigative (other than an action by or in the right of such corporation), by reason of the fact that such person is or was
an officer, director, employee or agent of such corporation or is or was serving at the request of such corporation as a director,
officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including attorneys&rsquo;
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such
action, suit or proceeding, provided such person acted in good faith and in a manner he or she reasonably believed to be in or
not opposed to the corporation&rsquo;s best interests and, with respect to any criminal action or proceeding, had no reasonable
cause to believe that his or her conduct was illegal. A Delaware corporation may indemnify any persons who were or are a party
to any threatened, pending or completed action or suit by or in the right of the corporation by reason of the fact that such person
is or was a director, officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including
attorneys&rsquo; fees) actually and reasonably incurred by such person in connection with the defense or settlement of such action
or suit, provided such person acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the
corporation&rsquo;s best interests, provided that no indemnification is permitted without judicial approval if the officer, director,
employee or agent is adjudged to be liable to the corporation. Where an officer or director is successful on the merits or otherwise
in the defense of any action referred to above, the corporation must indemnify him against the expenses which such officer or
director has actually and reasonably incurred.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section
145 further authorizes a corporation to purchase and maintain insurance on behalf of any person who is or was a director, officer,
employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or
agent of another corporation or enterprise, against any liability asserted against him and incurred by him in any such capacity,
or arising out of his or her status as such, whether or not the corporation would otherwise have the power to indemnify him under
Section 145.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s Certificate of Incorporation provides that the liability of directors for monetary damages shall be eliminated
to the fullest extent under applicable law. The Company&rsquo;s By-Laws state that the Company shall indemnify every present or
former director, officer, employee, or agent of the Company or person who is or was serving at the Company&rsquo;s request as
a director, officer, member, manager, partner, trustee, fiduciary, employee or agent of another corporation, limited liability
company, partnership, joint venture, trust, employee benefit plan or other enterprise (each an &ldquo;Indemnitee&rdquo;).</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s By-Laws provide that the Company shall indemnify an Indemnitee against all judgments, fines, amounts paid in settlement
and reasonable expenses actually and reasonably incurred by the Indemnitee in connection with any proceeding in which he was,
or is threatened to be made, a party by reason of his serving or having served, if it is determined that the Indemnitee (a) acted
in good faith, (b) reasonably believed that such action was in, or not opposed to, the Company&rsquo;s best interests and (c)
in the case of any criminal proceeding, had no reasonable cause to believe that his conduct was unlawful; provided, however, that
the Company shall not be obligated to indemnify an Indemnitee that was threatened to be made a party but does not become a party
unless the incurring of such expenses was authorized by or under the authority of the Board of Directors, and the Company shall
not be obligated to indemnify against any amount paid in settlement unless the Board of Directors has consented to such settlement.
In any action brought by or in the right of the Company to procure a judgment in its favor, no indemnification shall be made in
respect of any proceeding if a final adjudication establishes that the Indemnitee is liable to the Company, unless the court determines
that such person is fairly and reasonably entitled to indemnity. The Company may indemnify an Indemnitee who has served, or prepared
to serve, as a witness in, but is not a party to, any action, suit, or proceeding. The termination of any proceeding by judgment,
order, settlement or conviction, or on a plea of nolo contendere or its equivalent, is not of itself determinative that the Indemnitee
did not meet the requirements set forth in clauses (a) through (c) above.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expenses
incurred by any present or former director or officer of the Company in defending any civil, criminal, administrative, or investigative
action, suit, or proceeding, shall be paid by the Company in advance of the final disposition of such action, suit, or proceeding
upon receipt of an undertaking in writing by or on behalf of such person to repay such amount if it shall ultimately be determined
that such person is not entitled to indemnification. Expenses and costs incurred by other Indemnitees may be paid by the Company
in advance of the final disposition of such action, suit, or proceeding upon a similar undertaking.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
than discussed above, neither the Company&rsquo;s By-Laws nor its Certificate of Incorporation includes any specific indemnification
provisions for the Company&rsquo;s officers or directors against liability under the Securities Act. The Company has also purchased
insurance providing for indemnification of its directors and officers. Additionally, insofar as indemnification for liabilities
arising under the Securities Act may be permitted to directors, officers and controlling persons of the Company pursuant to the
foregoing provisions, or otherwise, the Company has been advised that, in the opinion of the SEC, such indemnification is against
public policy as expressed in the Securities Act and is, therefore, unenforceable.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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<P STYLE="margin: 0; font-family: Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PART
I</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">INFORMATION
REQUIRED IN THE SECTION 10(a) PROSPECTUS</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Item
1.</U> &nbsp;<U>Plan Information</U>.*</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Item
2.</U>&nbsp; <U>Registration Information and Employee Plan Annual Information</U>.*</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Information
                                         required by Part I to be contained in the Section 10(a) prospectus is omitted from this
                                         Registration Statement in accordance with Rule 428 under the Securities Act and the &ldquo;Note&rdquo;
                                         to Part I of Form S-8.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PART
II</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">INFORMATION
REQUIRED IN THE REGISTRATION STATEMENT</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Item
3</U>. <U>Incorporation of Documents by Reference</U>.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following documents filed by the Company with the SEC are incorporated herein by reference:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&rsquo;s Annual Report on Form 10-K for the year ended June 30, 2017 filed with the SEC on September 20, 2017;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendment
No. 1 to the Company&rsquo;s Annual Report on Form 10-K for the year ended June 30, 2017 filed with the SEC on September 26, 2017;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&rsquo;s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 filed with the SEC on November 14, 2017;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&rsquo;s Current Reports on Form 8-K and 8-K/A, as applicable, filed with the SEC on June 30, 2017, July 17, 2017, July
18, 2017, July 20, 2017, September 6, 2017, September 12, 2017, September 29, 2017, October 6, 2017, November 17, 2017, December
7, 2017, December 15, 2017, December 21, 2017, and January 10, 2018;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
other reports filed pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the &ldquo;Exchange
Act&rdquo;), since the year ended June 30, 2017; and</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
description of the Company&rsquo;s Common Stock as set forth in the Company&rsquo;s Registration Statement on Form S-1 (File No.
333-222552), filed with the SEC on January 16, 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
documents subsequently filed by the Company with the SEC under Sections 13(a), 13(c), 14 and 15(d), as applicable, of the Exchange
Act, prior to the filing of a post-effective amendment to this Registration Statement which indicates that all securities offered
have been sold or which deregisters all securities then remaining unsold, shall be deemed to be incorporated by reference into
this Registration Statement and to be a part hereof from the date of filing of such documents; provided, however, that documents
or information deemed to have been furnished and not filed in accordance with SEC rules shall not be deemed incorporated by reference
into this Registration Statement. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified
or superseded for the purposes of this Registration Statement to the extent that a statement contained herein or in any other
subsequently filed document which also is or deemed to be incorporated by reference herein modifies or supersedes such statement.
Any statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this
Registration Statement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Item
4</U>. <U>Description of Securities</U>. </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Item
5</U>. <U>Interests of Named Experts and Counsel</U>. </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Item
6</U>. <U>Indemnification of Directors and Officers</U>.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section
102(b)(7) of the DGCL allows a corporation to provide in its certificate of incorporation that a director of the corporation will
not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director,
except where the director breached the duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly
violated a law, authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law or
obtained an improper personal benefit. The Company&rsquo;s certificate of incorporation provides for this limitation of liability.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section
145 of the DGCL, or Section 145, provides that a Delaware corporation may indemnify any person who was, is or is threatened to
be made, party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or
investigative (other than an action by or in the right of such corporation), by reason of the fact that such person is or was
an officer, director, employee or agent of such corporation or is or was serving at the request of such corporation as a director,
officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including attorneys&rsquo;
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such
action, suit or proceeding, provided such person acted in good faith and in a manner he or she reasonably believed to be in or
not opposed to the corporation&rsquo;s best interests and, with respect to any criminal action or proceeding, had no reasonable
cause to believe that his or her conduct was illegal. A Delaware corporation may indemnify any persons who were or are a party
to any threatened, pending or completed action or suit by or in the right of the corporation by reason of the fact that such person
is or was a director, officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including
attorneys&rsquo; fees) actually and reasonably incurred by such person in connection with the defense or settlement of such action
or suit, provided such person acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the
corporation&rsquo;s best interests, provided that no indemnification is permitted without judicial approval if the officer, director,
employee or agent is adjudged to be liable to the corporation. Where an officer or director is successful on the merits or otherwise
in the defense of any action referred to above, the corporation must indemnify him against the expenses which such officer or
director has actually and reasonably incurred.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section
145 further authorizes a corporation to purchase and maintain insurance on behalf of any person who is or was a director, officer,
employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or
agent of another corporation or enterprise, against any liability asserted against him and incurred by him in any such capacity,
or arising out of his or her status as such, whether or not the corporation would otherwise have the power to indemnify him under
Section 145.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s Certificate of Incorporation provides that the liability of directors for monetary damages shall be eliminated
to the fullest extent under applicable law. The Company&rsquo;s By-Laws state that the Company shall indemnify every present or
former director, officer, employee, or agent of the Company or person who is or was serving at the Company&rsquo;s request as
a director, officer, member, manager, partner, trustee, fiduciary, employee or agent of another corporation, limited liability
company, partnership, joint venture, trust, employee benefit plan or other enterprise (each an &ldquo;Indemnitee&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s By-Laws provide that the Company shall indemnify an Indemnitee against all judgments, fines, amounts paid in settlement
and reasonable expenses actually and reasonably incurred by the Indemnitee in connection with any proceeding in which he was,
or is threatened to be made, a party by reason of his serving or having served, if it is determined that the Indemnitee (a) acted
in good faith, (b) reasonably believed that such action was in, or not opposed to, the Company&rsquo;s best interests and (c)
in the case of any criminal proceeding, had no reasonable cause to believe that his conduct was unlawful; provided, however, that
the Company shall not be obligated to indemnify an Indemnitee that was threatened to be made a party but does not become a party
unless the incurring of such expenses was authorized by or under the authority of the Board of Directors, and the Company shall
not be obligated to indemnify against any amount paid in settlement unless the Board of Directors has consented to such settlement.
In any action brought by or in the right of the Company to procure a judgment in its favor, no indemnification shall be made in
respect of any proceeding if a final adjudication establishes that the Indemnitee is liable to the Company, unless the court determines
that such person is fairly and reasonably entitled to indemnity. The Company may indemnify an Indemnitee who has served, or prepared
to serve, as a witness in, but is not a party to, any action, suit, or proceeding. The termination of any proceeding by judgment,
order, settlement or conviction, or on a plea of nolo contendere or its equivalent, is not of itself determinative that the Indemnitee
did not meet the requirements set forth in clauses (a) through (c) above.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expenses
incurred by any present or former director or officer of the Company in defending any civil, criminal, administrative, or investigative
action, suit, or proceeding, shall be paid by the Company in advance of the final disposition of such action, suit, or proceeding
upon receipt of an undertaking in writing by or on behalf of such person to repay such amount if it shall ultimately be determined
that such person is not entitled to indemnification. Expenses and costs incurred by other Indemnitees may be paid by the Company
in advance of the final disposition of such action, suit, or proceeding upon a similar undertaking.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
than discussed above, neither the Company&rsquo;s By-Laws nor its Certificate of Incorporation includes any specific indemnification
provisions for the Company&rsquo;s officers or directors against liability under the Securities Act. The Company has also purchased
insurance providing for indemnification of its directors and officers. Additionally, insofar as indemnification for liabilities
arising under the Securities Act may be permitted to directors, officers and controlling persons of the Company pursuant to the
foregoing provisions, or otherwise, the Company has been advised that, in the opinion of the SEC, such indemnification is against
public policy as expressed in the Securities Act and is, therefore, unenforceable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Item
7</U>. <U>Exemption From Registration Claimed</U>. </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
of the shares of Common Stock issued by us to the selling stockholders who are reoffering and reselling such shares of Common
Stock pursuant to this Registration Statement were issued in reliance upon the exemption from registration under Section 4(a)(2)
of the Securities Act relating to sales by an issuer not involving any public offering or Rule 701 promulgated under the Securities
Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Item
8</U>. <U>Exhibits</U></B>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
exhibits listed in the accompanying Exhibit Index are filed as a part of this Registration Statement:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Item
9</U>. <U>Undertakings</U>.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned Company hereby undertakes:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         file, during any period in which offers or sales are being made, a post-effective amendment
                                         to this Registration Statement:</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 1in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(i)</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">to
                                         include any prospectus required by Section 10(a)(3) of the Securities Act;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 1in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(ii)</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">to
                                         reflect in the prospectus any facts or events arising after the effective date of the
                                         Registration Statement (or the most recent post-effective amendment thereof) which, individually
                                         or in the aggregate, represent a fundamental change in the information set forth in the
                                         Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume
                                         of securities offered (if the total dollar value of securities offered would not exceed
                                         that which was registered) and any deviation from the low or high end of the estimated
                                         maximum offering range may be reflected in the form of prospectus filed with the Commission
                                         pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent
                                         no more than a 20 percent change in the maximum aggregate offering price set forth in
                                         the &ldquo;Calculation of Registration Fee&rdquo; table in the effective Registration
                                         Statement; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 1in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(iii)</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">to
                                         include any material information with respect to the plan of distribution not previously
                                         disclosed in the Registration Statement or any material change to such information in
                                         the Registration Statement;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>provided,
however</I>, that paragraphs (a)(1)(i) and (a)(1)(ii) above do not apply if the information required to be included in a post-effective
amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the Company pursuant to Section
13 or Section 15(d) of the Exchange Act that are incorporated by reference into this Registration Statement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">That,
                                         for the purpose of determining any liability under the Securities Act, each such post-effective
                                         amendment shall be deemed to be a new registration statement relating to the securities
                                         offered therein, and the offering of such securities at that time shall be deemed to
                                         be the initial <I>bona fide</I> offering thereof.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         remove from registration by means of a post-effective amendment any of the securities
                                         being registered which remain unsold at the termination of the offering.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 0; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                         undersigned Company hereby undertakes that, for the purposes of determining any liability
                                         under the Securities Act, each filing of the Company&rsquo;s annual report pursuant to
                                         Section 13(a) or 15(d) of the Exchange Act that is incorporated by reference into this
                                         Registration Statement shall be deemed to be a new registration statement relating to
                                         the securities offered therein, and the offering of such securities at that time shall
                                         be deemed to be the initial <I>bona fide</I> offering thereof.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(c)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Insofar
                                         as indemnification for liabilities arising under the Securities Act may be permitted
                                         to directors, officers and controlling persons of the Company pursuant to the foregoing
                                         provisions, or otherwise, the Company has been advised that in the opinion of the Commission
                                         such indemnification is against public policy as expressed in the Securities Act and
                                         is, therefore, unenforceable. In the event that a claim for indemnification against such
                                         liabilities (other than the payment by the Company of expenses incurred or paid by a
                                         director, officer or controlling person of the Company in the successful defense of any
                                         action, suit or proceeding) is asserted by such director, officer or controlling person
                                         in connection with the securities being registered, the Company will, unless in the opinion
                                         of its counsel the matter has been settled by controlling precedent, submit to a court
                                         of appropriate jurisdiction the question whether such indemnification by it is against
                                         public policy as expressed in the Securities Act and will be governed by the final adjudication
                                         of such issue.</FONT></TD>
</TR></TABLE>



<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SIGNATURES</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the requirements of the Securities Act of 1933, Akoustis Technologies, Inc. certifies that it has reasonable grounds to believe
that it meets all of the requirements for filing on Form S-8 and has duly caused this Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of Huntersville, State of North Carolina, on February 7,
2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">                                                                                                                                          <TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD><TD COLSPAN="2" STYLE="font-family: Times New Roman, Times, Serif"><B>AKOUSTIS
                                         TECHNOLOGIES, INC.</B></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD><TD COLSPAN="2" STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="width: 50%; font-family: Times New Roman, Times, Serif"></TD><TD STYLE="width: 3%; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif; width: 47%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
                                         Jeffrey B. Shealy </FONT></TD></TR>                                                                            <TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif">Jeffrey
                                         B. Shealy</TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
<TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif">President
                                         and Chief Executive Officer</TD></TR>
</TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>POWER
OF ATTORNEY</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
of the undersigned, being a director and/or officer of Akoustis Technologies, Inc. (the &ldquo;Company&rdquo;), hereby nominates,
constitutes and appoints Jeffrey B. Shealy, John T. Kurtzweil, Andrew Wright or any one of them severally, to be his or her true
and lawful attorney-in-fact and agent and to sign in his or her name and on his or her behalf in any and all capacities stated
below, and to file with the Securities and Exchange Commission (the &ldquo;Commission&rdquo;) this Registration Statement on Form
S-8 (the &ldquo;Registration Statement&rdquo;), and to file any and all amendments, including post-effective amendments, exhibits
and other documents and instruments in connection therewith, to the Registration Statement, making such changes to the Registration
Statement as such attorney-in-fact and agent deems appropriate, and generally to do all such things on his or her behalf in any
and all capacities stated below to enable the Company to comply with the provisions of the Securities Act of 1933, as amended
(the &ldquo;Securities Act&rdquo;), and all requirements of the Commission.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the requirements of the Securities Act, this Registration Statement has been signed by the following persons in the capacities
indicated on February 7, 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Signature</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Title</B></FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif; width: 47%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif; width: 28%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif; width: 20%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Jeffrey B. Shealy</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jeffrey
    B. Shealy</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">President,
                                         Chief Executive Officer and Director</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Principal
        Executive Officer)</FONT></P></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    John T. Kurtzweil</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">John
    T. Kurtzweil</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief
    Financial Officer</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Principal
    Financial Officer and Principal Accounting Officer)</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Arthur E. Geis</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Arthur
    E. Geis</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Co-Chairman
    of the Board</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Jerry D. Neal</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jerry
    D. Neal</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Co-Chairman
    of the Board</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Steven
    P. DenBaars</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</font></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jeffrey
    K. McMahon</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD COLSPAN="2" STYLE="text-align: center; font-family: Times New Roman, Times, Serif; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Signature</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Title&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif; width: 47%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif; width: 28%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif; width: 20%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Steven P. Miller</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Steven
    P. Miller</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Suzanne
    B. Rudy</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>EXHIBIT
INDEX</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit</B><BR>
                                       <B>Number</B></FONT></P></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Description</B></FONT></P></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; width: 8%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="s108855_ex4-1.htm">4.1*</A></FONT></TD>
    <TD STYLE="vertical-align: top; width: 2%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="s108855_ex4-1.htm">Specimen certificate representing the Common Stock of the Company</A></FONT></TD>
    <TD STYLE="width: 3%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1584754/000161577416008953/s104963_ex2-1.htm">4.2</A></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1584754/000161577416008953/s104963_ex2-1.htm">Plan
    of Conversion, dated December 15, 2016 <I>(incorporated by reference to Exhibit 2.1 to the Company&rsquo;s Current Report
    on Form 8-K filed with the SEC on December 16, 2016)</I></A></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1584754/000161577416008953/s104963_ex3-1.htm">4.3</A></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1584754/000161577416008953/s104963_ex3-1.htm">Articles
    of Conversion of the Company, as filed with the Nevada Secretary of State on December 15, 2016 <I>(incorporated by reference
    to Exhibit 3.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on December 16, 2016)</I></A></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1584754/000161577416008953/s104963_ex3-2.htm">4.4</A></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1584754/000161577416008953/s104963_ex3-2.htm">Certificate
    of Conversion of the Company, as filed with the Delaware Secretary of State on December 15, 2016 <I>(incorporated by reference
    to Exhibit 3.2 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on December 15, 2016)</I></A></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1584754/000161577416008953/s104963_ex3-3.htm">4.5</A></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1584754/000161577416008953/s104963_ex3-3.htm">Certificate
    of Incorporation, as filed with the Delaware Secretary of State on December 15, 2016&nbsp;<I>(incorporated by reference to
    Exhibit 3.3 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on December 15, 2016)</I></A></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1584754/000161577416008953/s104963_ex3-4.htm">4.6</A></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1584754/000161577416008953/s104963_ex3-4.htm">Bylaws
    of the Company&nbsp;<I>(incorporated by reference to Exhibit 3.4 to the Company&rsquo;s Current Report on Form 8-K filed with
    the SEC on December 15, 2016)</I></A></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><A HREF="s108855_ex5-1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.1*</FONT></A></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><A HREF="s108855_ex5-1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Legal Opinion of Womble Bond Dickinson (US) LLP</FONT></A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><A HREF="s108855_ex23-1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.1*</FONT></A></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><A HREF="s108855_ex23-1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent of Marcum LLP </FONT></A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><A HREF="s108855_ex5-1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.2*</FONT></A></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><A HREF="s108855_ex5-1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent of Womble Bond Dickinson (US) LLP <I>(included in Exhibit 5.1)</I></FONT></A></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24.1*</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Power
    of Attorney (included on Signature Page)</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1584754/000161577416007904/s104358_ex10-10.htm">99.1.1</A></FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1584754/000161577416007904/s104358_ex10-10.htm">Akoustis,
    Inc. 2014 Stock Plan <I>(incorporated by reference to Exhibit 10.10 to the Company&rsquo;s Transition Report on Form 10-K
    filed with the SEC on October 31, 2016)</I></A></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1584754/000161577417006718/s108057_ex10-2.htm">99.1.2</A></FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1584754/000161577417006718/s108057_ex10-2.htm">Declaration
    of Amendment to the Akoustis, Inc. 2014 Stock Plan <I>(incorporated by reference to Exhibit 10.2 to the Company&rsquo;s Quarterly
    Report on Form 10-Q filed with the SEC on November 14, 2017)</I></A></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1584754/000161577415001301/s101220_ex10-10.htm">99.2.1</A></FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1584754/000161577415001301/s101220_ex10-10.htm">Akoustis
    Technologies, Inc. 2015 Equity Incentive Plan&nbsp;<I>(incorporated by reference to Exhibit 10.10 to the Company&rsquo;s Current
    Report on Form 8-K filed with the SEC on May 29, 2015)</I></A></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1584754/000161577417006718/s108057_ex10-3.htm">99.2.2</A></FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1584754/000161577417006718/s108057_ex10-3.htm">Declaration
    of Amendment to the Akoustis Technologies, Inc. 2015 Equity Incentive Plan <I>(incorporated by reference to Exhibit 10.3 to
    the Company&rsquo;s Quarterly Report on Form 10-Q filed with the SEC on November 14, 2017)</I></A></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 1pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 1pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 1pt">&nbsp;</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT>&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Filed
                                         herewith</FONT></TD>
</TR></TABLE>

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[{"type": "S-8", "sequence": "1", "filename": "s108855_s8.htm", "description": "S-8", "secsgml_size_bytes": 509439}]
{"company-data": {"conformed-name": "Akoustis Technologies, Inc.", "cik": "0001584754", "assigned-sic": "3661", "irs-number": "331229046", "state-of-incorporation": "DE", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-222917", "film-number": "18581910"}, "business-address": {"street1": "9805 NORTHCROSS CENTER COURT, SUITE A", "city": "HUNTERSVILLE", "state": "NC", "zip": "28078", "phone": "7026054086"}, "mail-address": {"street1": "9805 NORTHCROSS CENTER COURT, SUITE A", "city": "HUNTERSVILLE", "state": "NC", "zip": "28078"}, "former-company": {"former-conformed-name": "DANLAX, CORP.", "date-changed": "20130820"}}
As
filed with the Securities and Exchange Commission on February 7, 2018
Registration
No. 333-
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
S-8
REGISTRATION
STATEMENT
UNDER
THE
SECURITIES ACT OF 1933
Akoustis
Technologies, Inc.
(Exact
name of registrant as specified in its charter)
Delaware
(State
or other jurisdiction of
incorporation
or organization)
9805
Northcross Center Court, Suite A
Huntersville,
NC 28078
(Address
of principal executive offices, including zip code)
33-1229046
(I.R.S.
Employer
Identification
Number)
AKOUSTIS,
INC. 2014 STOCK PLAN
AKOUSTIS
TECHNOLOGIES, INC. 2015 EQUITY INCENTIVE PLAN
(Full
title of the plan)
Jeffrey
B. Shealy
Chief
Executive Officer
Akoustis
Technologies, Inc.
9805
Northcross Center Court, Suite A
Huntersville,
NC 28078
(704)
997-5735
(Name,
address and telephone number, including area code,
of
agent for service)
Copy
to:
Adam
P. Wheeler, Esq.
Womble
Bond Dickinson (US) LLP
1200
Nineteenth Street NW, Suite 500
Washington,
DC 20036
(202)
467-6900
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer,"
"smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large
    accelerated filer
☐
Accelerated
    filer
☐
Non-accelerated
    filer
☐   (Do not check if a smaller reporting company)
Smaller
    reporting company
Emerging growth company
☑
☑
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.
☐
CALCULATION
OF REGISTRATION FEE
Title of
securities
to be
registered
Amount
to be
registered(1)
Proposed
maximum
offering
price
per share
Proposed
maximum
aggregate
offering
price
Amount of
registration
fee
Common Stock, par value $0.001 per share
1,125,636
(2)
$
5.81
(4)
$
6,539,945.16
(4)
$
814.22
160,000
(3)
$
5.81
(5)
$
929,600.00
(5)
$
115.74
Total:
1,285,636
$
929.96
(1)
This
                                         registration statement (the "Registration Statement") also covers additional
                                         shares of common stock, $0.001 par value per share (the "Common Stock") of
                                         Akoustis Technologies, Inc. (the "Company" or the "Registrant")
                                         that may be issuable pursuant to the antidilution provisions of the Plans (as defined
                                         below) by reason of any stock splits, stock dividends or similar transactions as permitted
                                         by Rule 416(a) and Rule 416(b) under the Securities Act of 1933, as amended (the "Securities
                                         Act").
(2)
This
                                         Registration Statement registers 1,125,636 shares of the Registrant's Common Stock,
                                         of which 516,815 shares were issued under the Registrant's 2014 Stock Plan, as
                                         amended (the "2014 Plan"), and 608,821 shares were issued under the Registrant's
                                         2015 Equity Incentive Plan, as amended (the "2015 Plan" and, together with
                                         the 2014 Plan, the "Plans").
(3)
This
                                         Registration Statement also registers 160,000 shares of Common Stock that may be issued
                                         pursuant to outstanding stock options (the "Options") previously granted
                                         under the 2015 Plan.
(4)
Estimated
                                         solely for the purpose of calculating the registration fee pursuant to Rule 457(c) and
                                         457(h) of the Securities Act, based upon: the average ($5.81) of the high ($5.8874) and
                                         low ($5.73) prices of the Company's Common Stock, as reported by the NASDAQ Stock
                                         Market LLC on February 5, 2018.
(5)
Estimated
                                         solely for the purpose of calculating the registration fee pursuant to Rule 457(c) and
                                         457(h) of the Securities Act, based upon the weighted average of the exercise price for
                                         the Options.
EXPLANATORY
NOTE
This
Registration Statement contains two parts. The first part contains a "reoffer" prospectus prepared in accordance with
Part I of Form S-3 (in accordance with Instruction C of the General Instructions to Form S-8). The prospectus permits reoffers
and resales of those shares referred to above that constitute "control securities" or "restricted securities"
within the meaning of Form S-8, by certain of the Company's stockholders, as more fully set forth therein. Pursuant to the
Note to Part I of Form S-8, the plan information specified by Part I of Form S-8 is not required to be filed with the Securities
and Exchange Commission (the "SEC"). The second part contains information required to be set forth in the registration
statement pursuant to Part II of Form S-8. The Company will provide without charge to any person, upon written or oral request
of such person, a copy of each document incorporated by reference in Item 3 of Part II of this Registration Statement (which documents
are also incorporated by reference in the prospectus as set forth in Form S-8), other than exhibits to such documents that are
not specifically incorporated by reference, the other documents required to be delivered to eligible employees pursuant to Rule
428(b) under the Securities Act and additional information about the Plans.
1
REOFFER
PROSPECTUS
AKOUSTIS
TECHNOLOGIES, INC.
9805
Northcross Center Court, Suite A
Huntersville,
NC 28078
(704)
997-5735
1,285,636
SHARES OF COMMON STOCK
This
reoffer prospectus relates to 1,285,636 shares of our common stock, par value $0.001 per share ("Common Stock"), that
may be offered and resold from time to time by certain eligible participants (each, an "Eligible Participant") in
our 2014 Stock Plan, as amended (the "2014 Plan") and our 2015 Equity Incentive Plan, as amended (the "2015
Plan" and, together with the 2014 Plan, the "Plans") for their own account. Eligible Participants in our Plans
consist of employees, directors, officers and consultants of our company or its related entities. Selling stockholders will consist
of those Eligible Participants who are "affiliates" of our company (as defined in Rule 405 under the Securities Act
of 1933, as amended (the "Securities Act")).
The
selling stockholders may offer and sell their shares of Common Stock at various times and in various types of transactions, including
sales in the open market, sales in negotiated transactions and sales by a combination of these methods. Shares may be sold at
the market price of the Common Stock at the time of a sale, at prices relating to the market price over a period of time, or at
prices negotiated with the buyers of shares. The shares may be sold through underwriters or dealers which the selling stockholders
may select. If underwriters or dealers are used to sell the shares, we will name them and describe their compensation in a prospectus
supplement. For a description of the various methods by which the selling stockholders may offer and sell their Common Stock described
in this prospectus, see the section entitled "Plan of Distribution" on page 28 of this prospectus. We will receive
no part of the proceeds from sales made under this prospectus. The selling stockholders will bear all sales commissions and similar
expenses. Any other expenses incurred by us in connection with the registration and offering and not borne by the selling stockholders
will be borne by us.
The
shares of Common Stock will be issued pursuant to awards granted under the Plans and will be "control securities"
or "restricted securities" under the Securities Act before their sale under this prospectus. This prospectus has been
prepared for the purposes of registering the shares under the Securities Act to allow for future sales by selling stockholders
on a continuous or delayed basis to the public without restriction. The number of shares of Common Stock to be offered or resold
by means of this prospectus by each selling stockholder may not exceed, during any three-month period, the amount specified in
Rule 144(e) under the Securities Act.
Our
Common Stock is traded on the NASDAQ Capital Market ("NASDAQ") under the symbol "AKTS." On February 6,
2018, the last reported sale price for our Common Stock was $6.02 per share.
Our
business and an investment in our securities involve a high degree of risk. Before making any investment in our securities, you
should read and carefully consider risks described in the "Risk Factors" section beginning on page 8 of this prospectus.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or
determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The
date of this prospectus is February 7, 20
18
1
You
should rely only on the information contained in this prospectus. We have not authorized any other person to provide you with
information that is different from that contained in this prospectus. If anyone provides you with different or inconsistent information,
you should not rely on it. We take no responsibility for, and can provide no assurance as to the reliability of, any other information
that others may give you. The selling stockholders are offering to sell and seeking offers to buy these securities only in jurisdictions
where offers and sales are permitted. You should assume that the information contained in this prospectus is accurate only as
of the date of this prospectus, regardless of the time of delivery of this prospectus or of any sale of our Common Stock. Our
business, financial condition, results of operations and prospects may have changed since that date. We are not making an offer
of any securities in any jurisdiction where the offer is not permitted.
TABLE
OF CONTENTS
Page
Prospectus Summary
1
Note Regarding Forward-Looking Statements
6
Risk Factors
8
Determination of Offering Price
22
Use of Proceeds
22
Description of Securities
23
Selling Stockholders
24
Plan of Distribution
29
Legal Matters
29
Experts
29
Material Changes
30
Where You Can Find More Information
30
Incorporation By Reference
30
Indemnification of Directors and Officers
31
2
PROSPECTUS
SUMMARY
The
following summary highlights information contained elsewhere in this prospectus. This summary is not complete and does not contain
all of the information that should be considered before investing in our Common Stock. Potential investors should read the entire
prospectus carefully, including the more detailed information regarding our business provided below in the "Description
of Business" section and the risks of purchasing our Common Stock discussed under the "Risk Factors" section.
Unless
the context indicates or requires otherwise, all references in this registration statement to "Akoustis Technologies,"
"Akoustis," the "Company," "we," "us" and "our" refer to Akoustis
Technologies, Inc. and its wholly owned consolidated subsidiaries, Akoustis, Inc., and Akoustis Manufacturing New York, Inc.,
each of which are Delaware corporations.
This
prospectus includes the trademarks of Akoustis, Inc., Akoustis
TM
and BulkOne®, See "Description of Business
- Intellectual Property". All references to Akoustis and BulkOne® in this prospectus are intended to include reference
to such trademarks.
Overview
Akoustis
is an early stage company focused on developing, designing and manufacturing innovative radio frequency (RF) filter products for
the mobile wireless device industry. We use a patented fundamentally new piezoelectric resonator technology that we call BulkONE®
in the manufacturing of bulk acoustic wave (BAW) resonators, the building blocks of high selectivity "RF" filters
required to route signals in a smartphone or other mobile or wearable device, cellular infrastructure and WiFi routers. Filters
are a critical component of the RF front-end (RFFE), and their use has multiplied with the launch and licensing of 4G/LTE, emerging
5G and WiFi frequency bands. They are used to define the range of frequencies of radio signals that are transmitted (the "passband")
and simultaneously reject unwanted signals.
We
plan to use single-crystal piezoelectric materials to develop a new class of BAW RF filters with a fundamental advantage to reduce
losses over existing thin film RF filter technologies. We believe our technology will be disruptive to the RFFE market through
the following expected advantages:
●
Wider
                                         bandwidth coverage,
●
Smaller
                                         filter supports higher level of integration and lower manufacturing costs,
●
Lower
                                         insertion loss,
●
Improved
                                         power compression and linearity,
●
Reduced
                                         power amplifier cost, for the ultimate purpose of manufacturing our BAW RF filters,
●
Reduced
                                         heat generation and reduced battery loading, and
●
Reduced
                                         guard band between adjacent frequency bands.
Once
our technology is qualified for mass production, we expect to design and sell single-crystal BAW RF filter products using our
BulkONE® technology. Our product focus is on innovative single-band filter products for the growing smartphone and RFFE module
market, which can be used to make duplexer or multiplexer filter products necessary for the mobile market. These products present
the greatest near-term potential for commercialization of our technology. According to a Mobile Experts May 2016 report, the mobile
filter market is expected to grow from $8.2 billion in 2017 to greater than $12 billion by 2021.
For
a glossary of technical terms used herein, see "Glossary" below.
1
Recent
Developments
On
March 23, 2017, we entered into an Asset Purchase Agreement and a Real Property Purchase Agreement (collectively, the "STC-MEMS
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"), respectively, to acquire certain
specified assets, including STC-MEMS, a semiconductor wafer-manufacturing and microelectromechanical systems ("MEMS")
operation with associated wafer-manufacturing tools, and the associated real estate and improvements located in Canandaigua, New
York used in the operation of STC-MEMS (the assets and real estate and improvements referred to together herein as the "STC-MEMS
Business"). Pursuant to the STC-MEMS Agreements, the Company agreed to assume substantially all of the ongoing obligations
of the STC-MEMS Business incurred in the ordinary course of business following the acquisition date.
We
completed the acquisition of the STC-MEMS Business through our wholly-owned subsidiary, Akoustis Manufacturing New York, Inc.,
a Delaware corporation formed in connection with the acquisition, on June 26, 2017 for an aggregate purchase price of $2.8 million
in cash. The Company recorded net assets acquired of $6.3 million for purchase consideration of $4.6 million (includes $2.85 million
of cash paid at closing plus $1.7 million real estate contingent liability), which resulted in the recording of a bargain purchase
gain of $1.7 million.
The
STC-MEMs acquisition allows the Company to internalize manufacturing, increase capacity and control its wafer supply chain for
single crystal BAW RF filters. We have now successfully transferred our research and development ("R&D") resonator
filter process flow into the facility, which recently received ISO 9001:2015 certification. We plan to utilize the facility to
optimize our BulkONE® technology and to consolidate all aspects of wafer manufacturing for our disruptive and patented high
band BAW RF filters targeting the multi-billion dollar mobile and other wireless markets. This planned consolidation of the Company's
supply chain into the STC-MEMS Business started on June 26, 2017 and is expected to shorten time-to-market for our RF products,
greatly enhancing our ability to service customers upon completion of development and design specifications. Furthermore, we believe
that shorter time-to-market cycles provide us with the opportunity to increase the number of our potential customers.
In
November 2017, we announced our first shipment of high performance single-crystal BAW diplexer filter module prototypes. These
initial prototypes were shipped pursuant to a customer engagement and purchase order announced by the Company in May 2017. The
purchase order covers the cost of engineering development and initial delivery of BAW RF diplexers for band-specific applications
in the frequency spectrum below 1.5GHz. Akoustis expects follow on shipments of small form-factor bandpass diplexer filter solutions
that replace larger legacy-filter technology, which enables system miniaturization without trading off performance.
This
is the fourth BAW filter prototype shipment that Akoustis has recently made. In August and September 2017, AKTS separately announced
first shipments of high performance LTE-TDD Band 41, 2.6 GHz BAW RF filter prototypes that it believes will satisfy the challenging
filter requirements in the high growth 4G LTE mobile market in China, a first shipment of premium high-band BAW filter prototypes
for a radar application that will operate with a passband between 3.5GHz and 3.9GHz, and a first shipment of the industry's
first single-crystal 5.2GHz BAW RF filters for 802.11ac Tri-Band WiFi routers.
In
December 2017, the Company closed a private placement in which it sold an aggregate 2,640,819 shares of Common Stock at $5.50
per share for aggregate gross proceeds before expenses of $14,524,504.
Capital
Needs
The Company believes that it has sufficient cash to fund its operations into the first quarter of fiscal 2019.
However, there is no assurance that the Company's projections and estimates are accurate. In the event that the Company does
not obtain the funds needed to develop its technology and enable future sales, or the Company experiences costs in excess of estimates
to continue its R&D plan, it is possible that the Company would not have sufficient resources to continue as a going concern
for the next year; these matters raise substantial doubt about the Company's ability to continue as a going concern. In order
to mitigate these risks, the Company is actively managing and controlling the Company's cash outflows.
2
About
This Offering
This
prospectus relates to the public offering, which is not being underwritten, by the selling stockholders listed in this prospectus,
of up to 1,285,636 shares of our Common Stock. Of the shares being offered, 1,125,636 are presently issued and outstanding and
160,000 are issuable upon exercise of stock options. The shares offered by this prospectus may be sold by the selling stockholders
from time to time in the open market, through negotiated transactions or otherwise at market prices prevailing at the time of
sale or at negotiated prices. We will receive none of the proceeds from the sale of the shares by the selling stockholders. We
will bear all expenses of registration incurred in connection with this offering, but all selling and other expenses incurred
by the selling stockholders will be borne by them.
Selected
Risks Associated with an Investment in Shares of Our Common Stock
An
investment in shares of our Common Stock is highly speculative and is subject to numerous risks described in the section entitled
"Risk Factors" and elsewhere in this prospectus. You should carefully consider these risks before making an investment.
Some of these risks include:
●
We
                                         have a limited operating history upon which investors can evaluate our business and future
                                         prospects.
●
We
                                         have a history of losses (we have incurred net losses of approximately $21.2 million
                                         for the period from May 12, 2014 (inception) to September 30, 2017), will need substantial
                                         additional funding to continue our operations and may not achieve or sustain profitability
                                         in the future.
●
If
                                         we are unable to obtain additional financing on acceptable terms, we may have to curtail
                                         our growth or cease our development plans and operations.
●
You
                                         could lose all of your investment.
●
You
                                         may experience dilution of your ownership interests because of the future issuance of
                                         additional shares of our common or preferred stock or other securities that are convertible
                                         into or exercisable for our common or preferred stock.
●
We
                                         may not generate revenues or achieve profitability.
●
Our
                                         products may not be able to be commercialized or accepted in the market.
●
If
                                         we are unable to establish effective marketing and sales capabilities or enter into agreements
                                         with third parties to market and sell our RF filters, we may not be able to effectively
                                         generate product revenues.
●
If
                                         we fail to obtain, maintain and enforce our intellectual property rights, we may not
                                         be able to prevent third parties from using our proprietary technologies and may lose
                                         access to technologies critical to our products.
Corporate
Information
Our
principal executive offices are located at 9805 Northcross Center Court, Suite A, Huntersville, North Carolina 28078. Our telephone
number is (704) 997-5735. Our website address is
http://www.akoustis.com
. The information on, or that can be accessed through,
our website is not part of this prospectus.
Implications
of Being an Emerging Growth Company
We
are an "emerging growth company," as defined in the Jumpstart Our Business Startups Act of 2012. We will remain an
emerging growth company until the earlier of (i) June 30, 2019, the last day of the fiscal year following the fifth anniversary
of the date of the first sale of our Common Stock pursuant to an effective registration statement under the Securities Act; (ii)
the last day of the fiscal year in which we have total annual gross revenues of $1.07 billion or more; (iii) the date on which
we have issued more than $1 billion in nonconvertible debt during the previous three years; or (iv) the date on which we are deemed
to be a large accelerated filer under applicable SEC rules. We expect that we will remain an emerging growth company for the foreseeable
future, but cannot retain our emerging growth company status indefinitely and will no longer qualify as an emerging growth company
on or before June 30, 2019. We refer to the Jumpstart Our Business Startups Act of 2012 herein as the "JOBS Act,"
and references herein to "emerging growth company" have the meaning associated with it in the JOBS Act. For so long
as we remain an emerging growth company, we are permitted and intend to rely on exemptions from specified disclosure requirements
that are applicable to other public companies that are not emerging growth companies.
3
These
exemptions include:
●
not
                                         being required to comply with the requirement of auditor attestation of our internal
                                         control over financial reporting,
●
not
                                         being required to comply with any requirement that may be adopted by the Public Company
                                         Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to
                                         the auditor's report providing additional information about the audit and the financial
                                         statements,
●
reduced
                                         disclosure obligations regarding executive compensation, and
●
not
                                         being required to hold a nonbinding advisory vote on executive compensation ("say-on-pay"),
                                         and on the frequency of say-on-pay, and stockholder approval of any golden parachute
                                         payments not previously approved.
For
as long as we continue to be an emerging growth company, we expect that we will take advantage of the reduced disclosure obligations
available to us as a result of that classification. We have taken advantage of certain of those reduced reporting burdens in this
prospectus. Accordingly, the information contained herein may be different than the information you receive from other public
companies in which you hold stock.
An
emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities
Act for complying with new or revised accounting standards. This allows an emerging growth company to delay the adoption of certain
accounting standards until those standards would otherwise apply to private companies. We have irrevocably elected to avail ourselves
of this extended transition period, and as a result, we will not be required to adopt new or revised accounting standards on the
dates on which adoption of such standards is required for other public reporting companies.
We
are also a "smaller reporting company" as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), and have elected to take advantage of certain of the scaled disclosure requirements available
for smaller reporting companies.
Glossary
The
following is a glossary of technical terms used herein:
●
Acoustic
                                         wave
— a mechanical wave that vibrates in the same direction as its direction
                                         of travel.
●
AlN
— Aluminum Nitride
●
Acoustic
                                         wave filter
— an electromechanical device that provides radio frequency control
                                         and selection, in which an electrical signal is converted into a mechanical wave in a
                                         device constructed of a piezoelectric material and then back to an electrical signal.
●
Band,
                                         channel or frequency band
— a designated range of radio wave frequencies used
                                         to communicate with a mobile device.
●
Bulk
                                         acoustic wave (BAW)
— an acoustic wave traveling through a material exhibiting
                                         elasticity, typically vertical or perpendicular to the surface of a piezoelectric material.
●
Digital
                                         baseband
— the digital transceiver, which includes the main processor for the
                                         communication device.
4
●
Diplexer
— a device that can split and combine different wireless signals, for example,
                                         permitting two transmitters to share the same antenna.
●
Duplexer
— a bi-directional device that connects the antenna to the transmitter and
                                         receiver of a wireless device and simultaneously filters both the transmit signal and
                                         receive signal.
●
Filter
— a series of interconnected resonators designed to pass (or select) a desired
                                         radio frequency signal and block unwanted signals.
●
Insertion
                                         Loss
—The power losses associated with inserting a BAW filter into a circuit.
●
Piezoelectric
                                         materials
— certain solid materials (such as crystals and certain ceramics)
                                         that produce a voltage in response to applied mechanical stress, or that deform when
                                         a voltage is applied to them.
●
Quality
                                         factor, or Q
— energy stored divided by the energy dissipated per cycle. Higher
                                         Q represents a higher caliber of resonance, and implies mechanical and electrical factors
                                         responsible for energy dissipation are minimal. For a given amount of energy stored in
                                         a resonator, Q represents the number of cycles resonance will continue without additional
                                         input of energy into the system.
●
Resonator
— a device whose impedance sharply changes over a narrow frequency range and
                                         is characterized by one or more 'resonance frequency' due to a standing wave
                                         across the resonator's electrodes. The vibrations in a resonator can be characterized
                                         by mechanical "acoustic" waves which travel without a characteristic sound
                                         velocity. Resonators are the building blocks for RF filters used in mobile wireless devices.
●
RF
— radio frequency.
●
RF
                                         front-end (RFFE)
— the circuitries in a mobile device responsible for processing
                                         the analog radio signals and is located between the device's antenna and the digital
                                         baseband.
●
TDD
                                         LTE
— Time Division Duplex- Long-Term Evolution or a wireless standard which
                                         shares the bandwidth between transmit and receive.
●
Trusted
                                         Foundry
— The Trusted Foundry Program was initiated by the Department of Defense
                                         in 2004 to ensure mission-critical national defense systems access to leading-edge integrated
                                         circuits from secure, domestic sources. Defense Microelectronics Activity (DMEA) is the
                                         manager of the Trusted Foundry Program for the U.S. Department of Defense (DoD). It is
                                         a joint DoD / National Security Agency (NSA) program and is administered by the NSA's
                                         Trusted Access Program Office (TAPO).
●
Wafer
— a thin slice of semiconductor material used in electronics for the fabrication
                                         of integrated circuits.
5
NOTE
REGARDING FORWARD-LOOKING STATEMENTS
This
prospectus contains forward-looking statements, including, without limitation, in the sections captioned "Description of
Business," "Risk Factors," and "Management's Discussion and Analysis of Financial Condition and
Results of Operations," and elsewhere. Any and all statements contained in this prospectus that are not statements of historical
fact may be deemed forward-looking statements. Terms such as "may," "might," "would," "should,"
"could," "project," "estimate," "predict," "potential," "strategy,"
"anticipate," "attempt," "develop," "plan," "help," "believe,"
"continue," "intend," "expect," "future," and terms of similar import (including
the negative of any of the foregoing) may be intended to identify forward-looking statements. However, not all forward-looking
statements may contain one or more of these identifying terms. Forward-looking statements in this prospectus may include, without
limitation, statements regarding (i) the plans and objectives of management for future operations, including plans or objectives
relating to the development of commercially viable radio frequency filters, (ii) a projection of income (including income/loss),
earnings (including earnings/loss) per share, capital expenditures, dividends, capital structure or other financial items, (iii)
our future financial performance, including any such statement contained in a discussion and analysis of financial condition by
management or in the results of operations included pursuant to the rules and regulations of the SEC, (iv) our ability to efficiently
utilize cash and cash equivalents to support our operations for a given period of time, (v) our ability to engage customers while
maintaining ownership of our intellectual property, and (vi) the assumptions underlying or relating to any statement described
in points (i) through (v) above.
The
forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may
not be realized because they are based upon our current projections, plans, objectives, beliefs, expectations, estimates and assumptions
and are subject to a number of risks and uncertainties and other influences, many of which are beyond our control. Actual results
and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements
as a result of these risks and uncertainties. Factors that may influence or contribute to the inaccuracy of the forward-looking
statements or cause actual results to differ materially from expected or desired results may include, without limitation:
●
our
                                         inability to obtain adequate financing,
●
our
                                         limited operating history,
●
our
                                         inability to generate significant revenues or achieve profitability,
●
the
                                         results of our research and development (R&D) activities,
●
our
                                         inability to achieve acceptance of our products in the market,
●
general
                                         economic conditions, including upturns and downturns in the industry,
●
our
                                         limited number of patents,
●
failure
                                         to obtain, maintain and enforce our intellectual property rights,
●
our
                                         inability to attract and retain qualified personnel,
●
our
                                         reliance on third parties to complete certain processes in connection with the manufacture
                                         of our products,
●
product
                                         quality and defects,
●
existing
                                         or increased competition,
●
our
                                         ability to market and sell our products,
●
our
                                         inability to successfully integrate our STC-MEMS Business (as defined below under "Description
                                         of Business – Recent Developments – Business Developments") in our
                                         business,
●
our
                                         failure to innovate or adapt to new or emerging technologies,
6
●
our
                                         failure to comply with regulatory requirements,
●
results
                                         of any arbitration or litigation that may arise,
●
stock
                                         volatility and illiquidity,
●
our
                                         failure to implement our business plans or strategies,
●
our
                                         failure to remediate the material weaknesses in our internal control over financial reporting,
                                         and
●
our
                                         failure to maintain the Trusted Foundry accreditation of our New York fabrication facility.
A
description of some of the risks and uncertainties that could cause our actual results to differ materially from those described
by the forward-looking statements in this prospectus appears in the section captioned "Risk Factors" and elsewhere
in this prospectus. Readers are cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties
related to them and to the risk factors. Except as may be required by law, we do not undertake any obligation to update the forward-looking
statements contained in this prospectus to reflect any new information or future events or circumstances or otherwise.
7
RISK
FACTORS
An
investment in shares of our Common Stock is highly speculative and involves a high degree of risk. We face a variety of risks
that may affect our operations or financial results and many of those risks are driven by factors that we cannot control or predict.
Before investing in our Common Stock, you should carefully consider the following risks, together with the financial and other
information contained in this prospectus. If any of the following risks actually occurs, our business, prospects, financial condition
and results of operations could be materially adversely affected. In that case, the trading price of our Common Stock would likely
decline and you may lose all or a part of your investment. Only those investors who can bear the risk of loss of their entire
investment should invest in our Common Stock.
Prospective
investors should consider carefully whether an investment in the Company is suitable for them in light of the information contained
in this prospectus and the financial resources available to them. The risks described below do not purport to be all the risks
to which the Company or the Company could be exposed. This section is a summary of the risks that we presently believe are material
to the operations of the Company. Additional risks of which we are not presently aware or which we presently deem immaterial may
also impair the Company's business, financial condition or results of operations.
Risks
Related to our Business and the Industry in Which We Operate
We
have a limited operating history upon which investors can evaluate our business and future prospects.
We
are an early stage company that has not yet begun any commercial operations. Historically, we were a shell company with no operating
history and no assets other than cash. Upon consummation of a merger with Akoustis, Inc. in May 2015, we redirected our business
focus towards the development of advanced single-crystal BAW filter products for RF front-ends (RFFEs) for use in the mobile wireless
device industry. Although Akoustis since its inception focused its activity on R&D of high efficiency acoustic wave resonator
technology utilizing single-crystal piezoelectric materials, this technology has not yet obtained marketing approval or been verified
in commercial manufacturing, and its RF filters have not generated any material level of sales.
Since
our expectations of potential customers and future demand for our products are based on estimates of planned operations rather
than experience, it is difficult for our management and our investors to accurately forecast and evaluate our future prospects
and our revenues. Our proposed operations are therefore subject to all of the risks inherent in light of the expenses, difficulties,
complications and delays frequently encountered in connection with the formation of any new business and the development of a
product, as well as those risks that are specific to our business in particular. An investment in an early stage company such
as ours involves a degree of risk, including the possibility that your entire investment may be lost. The risks include, but are
not limited to, our reliance on third parties to complete some processes for the manufacturing of our product, the possibility
that we will not be able to develop functional and scalable products, or that although functional and scalable, our products and/or
services will not be accepted in the market. To successfully introduce and market our products at a profit, we must establish
brand name recognition and competitive advantages for our products. There are no assurances that the Company can successfully
address these challenges. If it is unsuccessful, the Company and its business, financial condition and operating results will
be materially and adversely affected.
We
may not generate revenues or achieve profitability.
We
have incurred operating losses since our inception and expect to continue to have negative cash flow from operations. We have
only generated minimal revenues from shipment of product while our primary sources of funds have been R&D grants, private
placements of our equity, and debt. We have experienced net losses of approximately $21.2 million for the period from May 12,
2014 (inception) to September 30, 2017. Our future profitability will depend on our ability to create a sustainable business model
and generate revenues, which is subject to a number of factors, including our ability to successfully implement our strategies
and execute our R&D plan, our ability to implement our improved design and cost reductions into manufacturing of our RF filters,
the availability of funding, market acceptance of our products, consumer demand for end products incorporating our products, our
ability to compete effectively in a crowded field, our ability to respond effectively to technological advances by timely introducing
our new technologies and products, and global economic and political conditions.
Our
future profitability also depends on our expense levels, which are influenced by a number of factors, including the resources
we devote to developing and supporting our projects and potential products, the continued progress of our research and development
of potential products, our ability to improve R&D efficiencies, license fees or royalties we may be required to pay, and the
potential need to acquire licenses to new technology, the availability of intellectual property for licensing or acquisition,
or the use of our technology in new markets, which could require us to pay unanticipated license fees and royalties in connection
with these licenses.
8
Our
development and commercialization efforts may prove more expensive than we currently anticipate, and we may not succeed in increasing
our revenues to offset higher expenses. These expenses, among other things, may cause our net income and working capital to decrease.
If we fail to generate revenue and manage our expenses, we may never achieve profitability, which would adversely and materially
affect our ability to provide a return to our investors.
The
industry and the markets in which the Company operates are highly competitive and subject to rapid technological change.
The
markets in which we intend to compete are intensely competitive. We will operate primarily in the industry that designs and produces
semiconductor components for wireless communications and other wireless devices, which is subject to rapid changes in both product
and process technologies based on demand and evolving industry standards. The intended markets for our products are characterized
by:
●
rapid
                                         technological developments and product evolution,
●
rapid
                                         changes in customer requirements,
●
frequent
                                         new product introductions and enhancements,
●
continuous
                                         demand for higher levels of integration, decreased size and decreased power consumption,
●
short
                                         product life cycles with declining prices over the life cycle of the product, and
●
evolving
                                         industry standards.
The
continuous evolutions of these technologies and frequent introduction of new products and enhancements have generally resulted
in short product life cycles for wireless semiconductor products, in general, and for RFFEs, in particular. Our R&D activity
and resulting products could become obsolete or less competitive sooner than anticipated because of a faster than anticipated
change in one or more of the above-noted factors. Therefore, in order for our RF filters to be competitive and achieve market
acceptance, we need to keep pace with rapid development of new process technologies, which requires us to:
●
respond
                                         effectively to technological advances by timely introducing our new technologies and
                                         products,
●
successfully
                                         implement our strategies and execute our R&D plan in practice,
●
improve
                                         the efficiency of our technology, and
●
implement
                                         our improved design and cost reductions into manufacturing of our RF filters.
We
are still developing our products, and they may not be accepted in the market.
Although
we believe that our BulkONE® acoustic wave resonator technology that utilizes single-crystal piezoelectric materials will
provide material advantages over existing RF filters and are currently developing various methods of integration suitable for
implementation of this technology to RF filters, we cannot be certain that our RF filters will be able to achieve or maintain
market acceptance. While we have fabricated R&D resonators that demonstrate the feasibility of our BulkONE® technology,
we are still in the process of stabilizing this technology into our NY fabrication facility for manufacturing of our RF filters,
and this technology is not verified yet in practice or on a commercial scale. There are also no records that can demonstrate our
ability to successfully overcome many of the risks and uncertainties frequently encountered by companies in new and rapidly evolving
fields. In addition to our limited operating history, we will depend on a limited number of manufacturers and customers for a
significant portion of our revenue in the future and we cannot guarantee their acceptance of our products. Each of these factors
may adversely affect our ability to implement our business strategy and achieve our business goals.
9
The
successful development of our BulkONE® technology and market acceptance of our RF filters will be highly complex and will
depend on the following principal competitive factors, including our ability to:
●
comply
                                         with industry standards and effectively compete against current technology for producing
                                         RF acoustic wave filters,
●
differentiate
                                         our products from offerings of our competitors by delivering RF filters that are higher
                                         in quality, reliability and technical performance,
●
anticipate
                                         customer and market requirements, changes in technology and industry standards and timely
                                         develop improved technologies that meet high levels of satisfaction of our potential
                                         customers,
●
maintain,
                                         grow and manage our internal teams to the extent we increase our operations and develop
                                         new segments of our business,
●
develop
                                         and maintain successful collaborative, strategic, and other relationships with manufacturers,
                                         customers and contractors,
●
protect,
                                         develop or otherwise obtain adequate intellectual property for our technology and our
                                         filters, and
●
obtain
                                         strong financial, sales, marketing, technical and other resources necessary to develop,
                                         test, manufacture, commercialize and market our filters.
If
we are unsuccessful in accomplishing these objectives, we may not be able to compete successfully against current and potential
competitors. As a result, our BulkOne® technology and our RF filters may not be accepted in the market and we may never attain
profitability.
We
will face intense competition, which may cause pricing pressures, decreased gross margins and loss of potential market share and
may materially and adversely affect our business, financial condition and results of operations.
We
will compete with U.S. and international semiconductor manufacturers and mobile semiconductor companies of all sizes in terms
of resources and market share, some of whom have significantly greater financial, technical, manufacturing and marketing resources
than we do. We expect competition in our markets to intensify as new competitors enter the RF component market, existing competitors
merge or form alliances, and new technologies emerge. Our competitors may introduce new solutions and technologies that are superior
to our BAW technology, are verified on a commercial scale, and have achieved widespread market acceptance. Certain of our competitors
may be able to adapt more quickly than we can to new or emerging technologies and changes in customer requirements or may be able
to devote greater resources to the development, promotion and sale of their products than we can. This implementation may require
us to modify the manufacturing process for our filters, design new products to more stringent standards, and redesign some existing
products, which may prove difficult for us and result in delays in product deliveries and increased expenses.
Increased
competition could also result in pricing pressures, declining average selling prices for our RF filters, decreased gross margins
and loss of potential market share. We will need to make substantial investments to develop these enhancements and technologies,
and we cannot assure investors that we will have funds available for these investments or that these enhancements and technologies
will be successful. If a competing technology emerges that is, or is perceived to be, superior to our existing technology and
we are unable to adapt to these changes and to compete effectively, our market share and financial condition could be materially
and adversely affected, and our business, revenue, and results of operations could be harmed.
10
Changes
in general economic conditions, together with other factors, cause significant upturns and downturns in the industry, and our
business, therefore, may also experience cyclical fluctuations in the future.
From
time to time, changes in general economic conditions, together with other factors, may cause significant upturns and downturns
in the semiconductor industry. These fluctuations are due to a number of factors, many of which are beyond our control, including:
●
levels
                                         of inventory in our end markets,
●
availability
                                         and cost of supply for manufacturing of our RF filters using our design,
●
changes
                                         in end-user demand for the products manufactured with our technology and sold by our
                                         prospective customers,
●
industry
                                         production capacity levels and fluctuations in industry manufacturing yields,
●
market
                                         acceptance of our future customers' products that incorporate our RF filters,
●
the
                                         gain or loss of significant customers,
●
the
                                         effects of competitive pricing pressures, including decreases in average selling prices
                                         of our RF filters,
●
new
                                         product and technology introductions by competitors,
●
changes
                                         in the mix of products produced and sold, and
●
intellectual
                                         property disputes.
As
a result, the demand for our products can change quickly and in ways we may not anticipate, and our business, therefore, may also
experience cyclical fluctuations in future operating results. In addition, future downturns in the electronic systems industry
could adversely impact our revenue and harm our business, financial condition and results of operations.
If
we are unable to attract and retain qualified personnel to contribute to the development, manufacture and sale of our products,
we may not be able to effectively operate our business.
As
the source of our technological and product innovations, our key technical personnel represent a significant asset. We believe
that our future success is highly dependent on the continued services of our current key officers, employees, and Board members,
as well as our ability to attract and retain highly skilled and experienced technical personnel. The loss of their services could
have a detrimental effect on our operations. Specifically, the loss of the services of Jeffrey Shealy, our President and Chief
Executive Officer, John Kurtzweil, our Chief Financial Officer, David Aichele, our Vice President of Business Development, Andrew
Wright, our General Counsel, any major change in our Board or management, or our inability to attract, retain and motivate qualified
personnel could have a material adverse effect on our ability to operate our business. The competition for management and technical
personnel is intense in the wireless semiconductor industry, and therefore, we cannot assure you that we will be able to attract
and retain qualified management and other personnel necessary for the design, development, manufacture and sale of our products.
Product
defects could adversely affect the results of our operations and may expose us to product liability claims.
The
fabrication of RF filters is a complex and precise process. If we or any of our manufacturers fails to successfully manufacture
wafers that conform to our design specifications and the strict regulatory requirements of the Federal Communications Commission
("FCC"), it may result in substantial risk of undetected flaws in components or other materials used by our manufacturers
during fabrication of our filters and could lead to product defects and costs to repair or replace these parts or materials. Any
such failure would significantly impact our ability to develop and implement our technology and to improve performance of our
RF filters. Our inability to comply with such requirements could result in significant costs, as well as negative publicity and
damage to our reputation that could reduce demand for our products.
We
also could be subject to product liability lawsuits if the wireless devices containing our RF filters cause injury. Recently interest
groups have requested that the FCC investigate claims that wireless communications technologies pose health concerns and cause
interference with airbags, hearing aids and medical devices. Any such product liability claims may include allegations of defects
in manufacturing, defects in design, a failure to warn of dangers inherent in the product or inadequate disclosure of risks related
to the use of our product, negligence, strict liability and a breach of warranties. Claims could also be asserted under state
consumer protection acts.
11
If
we are unable to establish effective marketing and sales capabilities or enter into agreements with third parties to market and
sell our RF filters, we may not be able to effectively generate product revenues.
We
have limited experience selling, marketing or distributing products and currently have a small internal marketing and sales force.
In order to launch and commercialize our technology and our RF filters, we must build on a territory-by-territory basis marketing,
sales, distribution, managerial and other non-technical capabilities or make arrangements with third parties to perform these
services, and we may not be successful in doing so. Therefore, we may choose to collaborate, either globally or on a territory-by-territory
basis, with third parties that have direct sales forces and established distribution systems, either to augment our own sales
force and distribution systems or in lieu of our own sales force and distribution systems. If so, our success will depend, in
part, on our ability to enter into and maintain collaborative relationships for such capabilities, such collaborator's strategic
interest in the products under development and such collaborator's ability to successfully market and sell any such products.
If
we are unable to enter into such arrangements when needed on acceptable terms or at all, we may not be able to successfully commercialize
our filters. Further, to the extent that we depend on third parties for marketing and distribution, any revenues we receive will
depend upon the efforts of such third parties, and there can be no assurance that such efforts will be successful. If we decide
in the future to establish an internal sales and marketing team with technical expertise and supporting distribution capabilities
to commercialize our RF filters, it could be expensive and time consuming and would require significant attention of our executive
officers to manage. We may also not have sufficient resources to allocate to the sales and marketing of our filters. Any failure
or delay in the development of sales, marketing and distribution capabilities, either through collaboration with one or more third
parties or through internal efforts, would adversely impact the commercialization of any of our products that we obtain approval
to market. As a result, our future product revenue would suffer and we may incur significant additional losses
Risks
Related to Our Intellectual Property
If
we fail to obtain, maintain and enforce our intellectual property rights, we may not be able to prevent third parties from using
our proprietary technologies.
Our
long-term success largely depends on our ability to market technologically competitive products which, in turn, largely depends
on our ability to obtain and maintain adequate intellectual property protection and to enforce our proprietary rights without
infringing the proprietary rights of third parties. While we rely upon a combination of our patent applications currently pending
with the United State Patent and Trademark Office ("USPTO"), our trademarks, copyrights, trade secret protection and
confidentiality agreements to protect the intellectual property related to our technologies, there can be no assurance that:
●
our
                                         currently pending or future patent applications will result in issued patents,
●
our
                                         limited patent portfolio will provide adequate protection to our core technology,
●
we
                                         will succeed in protecting our technology adequately in all key jurisdictions, or
●
we
                                         can prevent third parties from disclosure or misappropriation of our proprietary information
                                         which could enable competitors to quickly duplicate or surpass our technological achievements,
                                         thus eroding any competitive advantage we may derive from the proprietary information.
We
have a limited number of patent applications which may not result in issued patents or patents that fully protect our intellectual
property.
In
the United States and internationally we have twenty (20) pending patent applications; however, there is no assurance that any
of the pending applications or our future patent applications will result in patents being issued, or that any patents that may
be issued as a result of existing or future applications will provide meaningful protection or commercial advantage to us.
12
The
process of seeking patent protection in the United States and abroad can be long and expensive. Since patent applications in the
United States and most other countries are confidential for a period of time after filing, we cannot be certain at the time of
filing that we are the first to file any patent application related to our single-crystal acoustic wave filter technology. In
addition, patent applications are often published as part of the patent application process, even if such applications do not
issue as patents. When published, such applications will become publicly available, and proprietary information disclosed in the
application will become available to others. While at present we are unaware of competing patent applications, competing applications
could potentially surface.
Even
if all of our pending patent applications are granted and result in registration of our patents, we cannot predict the breadth
of claims that may be allowed or enforced, or that the scope of any patent rights could provide a sufficient degree of protection
that could permit us to gain or keep our competitive advantage with respect to these products and technologies. For example, we
cannot predict:
●
the
                                         degree and range of protection any patents will afford us against competitors, including
                                         whether third parties will find ways to make, use, sell, offer to sell or import competitive
                                         products without infringing our patents,
●
if
                                         and when patents will be issued,
●
if
                                         third parties will obtain patents claiming inventions similar to those covered by our
                                         patents and patent applications,
●
if
                                         third parties have blocking patents that could be used to prevent us from marketing our
                                         own patented products and practicing our own technology, or
●
whether
                                         we will need to initiate litigation or administrative proceedings (e.g. at the USPTO)
                                         in connection with patent rights, which may be costly whether we win or lose.
As
a result, the patent applications we own may fail to result in issued patents in the United States. Third parties may challenge
the validity, enforceability or scope of any issued patents or patents issued to us in the future, which may result in those patents
being narrowed, invalidated or held unenforceable. Even if they are unchallenged, our patents and patent applications may not
adequately protect our intellectual property or prevent others from developing similar products that do not infringe the claims
made in our patents. If the breadth or strength of protection provided by the patents we hold or pursue is threatened, we may
not be able to prevent others from offering similar technology and products in the RFFE mobile market and our ability to commercialize
our RF filters with technology protected by those patents could be threatened.
If
we fail to obtain issued patents outside of the United States, our ability to prevent misappropriation of our proprietary information
or infringement of our intellectual property rights in countries outside of the United States where our filters may be sold in
the future may be significantly limited. If we file foreign patent applications related to our pending U.S. patent applications
or to our issued patents in the United States, these applications may be contested and fail to result in issued patents outside
of the United States or we may be required to narrow our claims. Even if some or all of our patent applications are granted outside
of the United States and result in issued patents, effective enforcement of rights granted by these patents in some countries
may not be available due to the differences in foreign patent and other laws concerning intellectual property rights, a relatively
weak legal regime protecting intellectual property rights in these countries, and because it is difficult, expensive and time-consuming
to police unauthorized use of our intellectual property when infringers are overseas. This failure to obtain or maintain adequate
protection of our intellectual property rights outside of the United States could have a materially adverse effect on our business,
results of operations and financial conditions.
13
We
may be involved in lawsuits to protect or enforce our patents, which could be expensive, time-consuming and unsuccessful.
Competitors
may infringe our patents or the patents of our potential licensors. To attempt to stop infringement or unauthorized use, we may
need to file infringement claims, which can be expensive and time consuming and distract management.
If
we pursue any infringement proceeding, a court may decide that a patent of ours or our licensors is not valid or is unenforceable,
or may refuse to stop the other party from using the relevant technology on the grounds that our patents do not cover the technology
in question. Additionally, any enforcement of our patents may provoke third parties to assert counterclaims against us. Some of
our current and potential competitors have the ability to dedicate substantially greater resources to enforcing their intellectual
property rights than we have. Moreover, the legal systems of certain countries, particularly certain developing countries, do
not favor the enforcement of patents, which could reduce the likelihood of success of, or the amount of damages that could be
awarded resulting from, any infringement proceeding we pursue in any such jurisdiction. An adverse result in any infringement
litigation or defense proceedings could put one or more of our patents at risk of being invalidated, held unenforceable, or interpreted
narrowly and could put our patent applications at risk of not issuing, which could limit the ability of our filters to compete
in those jurisdictions.
Interference
proceedings could be provoked by third parties or brought by the USPTO to determine the priority of inventions with respect to
our patents or patent applications. An unfavorable outcome could require us to cease using the related technology or to attempt
to license rights to use it from the prevailing party. Our business could be harmed if the prevailing party does not offer us
a license on commercially reasonable terms, or at all.
We
need to protect our trademark rights and disclosure of our trade secrets to prevent competitors from taking advantage of our goodwill.
We
believe that the protection of our trademark rights is an important factor in product recognition, protecting our brand, maintaining
goodwill, and maintaining or increasing market share. We currently have two trademarks that we have filed to register with the
USPTO — the Akoustis and BulkONE® marks — and we may expend substantial cost and effort in an attempt to register
new trademarks and maintain and enforce our trademark rights. If we do not adequately protect our rights in our trademarks from
infringement, any goodwill that we have developed in those trademarks could be lost or impaired.
Third
parties may claim that the sale or promotion of our products, when and if we have any, may infringe on the trademark rights of
others. Trademark infringement problems occur frequently in connection with the sale and marketing of products in the RFFE mobile
industry. If we become involved in any dispute regarding our trademark rights, regardless of whether we prevail, we could be required
to engage in costly, distracting and time-consuming litigation that could harm our business. If the trademarks we use are found
to infringe upon the trademark of another company, we could be liable for damages and be forced to stop using those trademarks,
and as result, we could lose all the goodwill that has been developed in those trademarks.
In
addition to the protection afforded by patents and trademarks, we seek to rely on copyright, trade secret protection and confidentiality
agreements to protect proprietary know-how that is not patentable, processes for which patents are difficult to enforce and any
other elements of our processes that involve proprietary know-how, information or technology that is not covered by patents. For
Akoustis, this includes chip layouts, circuit designs, resonator layouts and implementation, and membrane definition. Although
we require all of our employees and certain consultants and advisors to assign inventions to us, and all of our employees, consultants,
advisors and any third parties who have access to our proprietary know-how, information or technology to enter into confidentiality
agreements, our trade secrets and other proprietary information may be disclosed or competitors may otherwise gain access to such
information or independently develop substantially equivalent information. If we are unable to prevent material disclosure of
the intellectual property related to our technologies to third parties, we will not be able to establish or maintain the competitive
advantage that we believe is provided by such intellectual property, which would weaken our competitive market position, and materially
adversely affect our business and operational results.
14
Development
of certain technologies with our manufacturers may result in restrictions on jointly-developed intellectual property.
In
order to maintain and expand our strategic relationship with manufacturers of our filters, we may, from time to time, develop
certain technologies jointly with these manufacturers and file for further intellectual property protection and/or seek to commercialize
such technologies. We may enter into joint development agreements with manufacturers to provide for joint development works and
joint intellectual property rights by us and by such manufacturer. Such agreements may restrict our commercial use of such intellectual
property, or may require written consent from, or a separate agreement with, that manufacturer. In other cases, we may not have
any rights to use intellectual property solely developed and owned by such manufacturer or another third party. If we cannot obtain
commercial use rights for such jointly-owned intellectual property or intellectual property solely owned by these manufacturers,
our future product development and commercialization plans may be adversely affected.
We
may be subject to claims of infringement, misappropriation or misuse of third party intellectual property that, regardless of
merit, could result in significant expense and loss of our intellectual property rights.
The
semiconductor industry is characterized by the vigorous pursuit and protection of intellectual property rights. We have not undertaken
a comprehensive review of the rights of third parties in our field. From time to time, we may receive notices or inquiries from
third parties regarding our products or the manner in which we conduct our business suggesting that we may be infringing, misappropriating
or otherwise misusing patent, copyright, trademark, trade secret and other intellectual property rights. Any claims that our technology
infringes, misappropriates or otherwise misuses the rights of third parties, regardless of their merit or resolution, could be
expensive to litigate or settle and could divert the efforts and attention of our management and technical personnel, cause significant
delays and materially disrupt the conduct of our business. We may not prevail in such proceedings given the complex technical
issues and inherent uncertainties in intellectual property litigation. If such proceedings result in an adverse outcome, we could
be required to:
●
pay
                                         substantial damages, including treble damages if we were held to have willfully infringed,
●
cease
                                         the manufacture, offering for sale or sale of the infringing technology or processes,
●
expend
                                         significant resources to develop non-infringing technology or processes,
●
obtain
                                         a license from a third party, which may not be available on commercially reasonable terms,
                                         or may not be available at all, or
●
lose
                                         the opportunity to license our technology to others or to collect royalty payments based
                                         upon successful protection and assertion of our intellectual property against others.
In
addition, our agreements with prospective customers and manufacturing partners may require us to indemnify such customers and
manufacturing partners for third party intellectual property infringement claims. Pursuant to such agreements, we may be required
to defend such customers and manufacturing partners against certain claims that could cause us to incur additional costs. While
we endeavor to include as part of such indemnification obligations a provision permitting us to assume the defense of any indemnification
claim, not all of our current agreements contain such a provision and we cannot provide any assurance that our future agreements
will contain such a provision, which could result in increased exposure to us in the case of an indemnification claim.
Defense
of any intellectual property infringement claims against us, regardless of their merit, would involve substantial litigation expense
and would be a significant diversion of resources from our business. In the event of a successful claim of infringement against
us, we may have to pay substantial damages, obtain one or more licenses from third parties, limit our business to avoid the infringing
activities, pay royalties and/or redesign our infringing technology or alter related formulations, processes, methods or other
technologies, any or all of which may be impossible or require substantial time and monetary expenditure. The occurrence of any
of the above events could prevent us from continuing to develop and commercialize our filters and our business could materially
suffer.
15
Risks
Related to our Financial Condition
We
have a history of losses, will need substantial additional funding to continue our operations and may not achieve or sustain profitability
in the future.
Our
operations have consumed substantial amounts of cash since inception. We have incurred losses since our incorporation and formation
in 2014. Although our newly acquired STC-MEMS Business has a potential revenue stream estimation of $1.5 million in the current
fiscal year, (which are not guaranteed), and although we plan to apply for additional grants in the calendar year 2018, we do
not expect meaningful revenues from our resonator technology until at least the second half of the calendar year 2018. There is
no guarantee that the grants we apply for will be awarded to us, and if our forecasts for the Company prove incorrect, the business,
operating results and financial condition of the Company will be materially and adversely affected. We anticipate that our operating
expenses will increase in the foreseeable future as we continue to pursue the development of our patent-pending single-crystal
acoustic wave filter technology, invest in marketing, sales and distribution of our RF filters to grow our business, acquire customers,
commercialize our technology in the mobile wireless market and continue the transition of our manufacturing to our STC-MEMS Business.
These efforts may prove more expensive than we currently anticipate, and we may not succeed in generating sufficient revenues
to offset these higher expenses. In addition, we expect to incur significant expenses related to regulatory requirements and our
ability to obtain, protect, and defend our intellectual property rights.
We
may also encounter unforeseen expenses, difficulties, complications, delays and other unknown factors that may increase our capital
needs and/or cause us to spend our cash resources faster than we expect. Accordingly, we will need to obtain substantial additional
funding in order to continue our operations.
To
date, we have financed our operations through a mix of investments from private investors, the incurrence of debt, and grant funding,
and we expect to continue to utilize such means of financing for the foreseeable future. Additional funding from those or other
sources may not be available when or in the amounts needed, on acceptable terms, or at all. If we raise capital through the sale
of equity, or securities convertible into equity, it would result in dilution to our then existing stockholders, which could be
significant depending on the price at which we may be able to sell our securities. If we raise additional capital through the
incurrence of indebtedness, we would likely become subject to covenants restricting our business activities, and holders of debt
instruments may have rights and privileges senior to those of our equity investors. In addition, servicing the interest and principal
repayment obligations under debt facilities could divert funds that would otherwise be available to support research and development,
or commercialization activities. If we are unable to raise capital when needed or on attractive terms, we could be forced to delay,
reduce or eliminate our R&D programs for our acoustic wave filter technology or any future commercialization efforts. Any
of these events could materially and adversely affect our business, financial condition and prospects, and could cause our business
to fail.
Our
independent registered public accounting firm has expressed doubt about our ability to continue as a going concern.
The
Company's historical financial statements have been prepared under the assumption that we will continue as a going concern.
Our independent registered public accounting firm has issued a report that included an explanatory paragraph referring to our
recurring net losses and accumulated deficit and expressing substantial doubt in our ability to continue as a going concern. Our
ability to continue as a going concern is dependent upon our ability to obtain additional equity financing or other capital, attain
further operating efficiencies, reduce expenditures, and, ultimately, to generate revenue. Our financial statements do not include
any adjustments that might result from the outcome of this uncertainty.
The
Company's management has also evaluated whether there are conditions and events that raise substantial doubt about the entity's
ability to continue as a going concern. As a result of that assessment, the Company has determined that if adequate funds are
not available to us when we need them either through capital or debt or through the commercialization of our products, those conditions
would indicate substantial doubt about our ability to continue as a going concern.
Risk
Related to Managing Any Growth We May Experience
We
may engage in future acquisitions that could disrupt our business, cause dilution to our stockholders and harm our financial condition
and operating results.
While
we currently have no specific plans to acquire any other businesses, we may, in the future, make acquisitions of, or investments
in, companies that we believe have products or capabilities that are a strategic or commercial fit with our current business or
otherwise offer opportunities for our company. In connection with these acquisitions or investments, we may:
●
issue
                                         Common Stock or other forms of equity that would dilute our existing stockholders'
                                         percentage of ownership,
16
●
incur
                                         debt and assume liabilities, and
●
incur
                                         amortization expenses related to intangible assets or incur large and immediate write-offs.
We
may not be able to complete acquisitions on favorable terms, if at all. If we do complete an acquisition, we cannot assure you
that it will ultimately strengthen our competitive position or that it will be viewed positively by customers, financial markets
or investors. Furthermore, future acquisitions could pose numerous additional risks to our expected operations, including:
●
problems
                                         integrating the purchased business, products or technologies,
●
challenges
                                         in achieving strategic objectives, cost savings and other anticipated benefits,
●
increases
                                         to our expenses,
●
the
                                         assumption of significant liabilities that exceed the limitations of any applicable indemnification
                                         provisions or the financial resources of any indemnifying party,
●
inability
                                         to maintain relationships with prospective key customers, vendors and other business
                                         partners of the acquired businesses,
●
diversion
                                         of management's attention from their day-to-day responsibilities,
●
difficulty
                                         in maintaining controls, procedures and policies during the transition and integration,
●
entrance
                                         into marketplaces where we have no or limited prior experience and where competitors
                                         have stronger marketplace positions,
●
potential
                                         loss of key employees, particularly those of the acquired entity, and
●
historical
                                         financial information may not be representative or indicative of our results as a combined
                                         company.
Our
business and operations would suffer in the event of system failures, and our operations are vulnerable to interruption by natural
disasters, terrorist activity, power loss and other events beyond our control, the occurrence of which could materially harm our
business.
Despite
the implementation of security measures, our internal computer systems and those of our contractors and consultants are vulnerable
to damage from computer viruses, unauthorized access as well as telecommunication and electrical failures. While we have not experienced
any such system failure, accident or security breach to date, if such an event were to occur and cause interruptions in our operations,
it could result in a material disruption of our R&D. If any disruption or security breach resulted in a loss of or damage
to our data or applications, or inappropriate disclosure of confidential or proprietary information, we could incur liability
and/or the further development of our technology for RF filters could be delayed.
We
are also vulnerable to accidents, electrical blackouts, labor strikes, terrorist activities, war and other natural disasters and
other events beyond our control, and we have not undertaken a systematic analysis of the potential consequences to our business
as a result of any such events and do not have an applicable recovery plan in place. We currently do not carry other business
interruption insurance that would compensate us for actual losses from interruptions of our business that may occur, and any losses
or damages incurred by us could cause our business to materially suffer.
17
Risks
Related to Regulatory Requirements
We
could fail to maintain our Trusted Foundry accreditation in our New York Fabrication Facility.
Although
our New York fabrication facility has not generated any revenue to date from its Trusted Foundry accreditation, a failure to maintain
that accreditation in the future could hamper our ability to generate product and foundry services revenue related to potential
Aerospace and Defense customers.
We
may incur substantial expenses in connection with regulatory requirements, and any regulatory compliance failure could cause our
business to suffer.
The
wireless communications industry is subject to ongoing regulatory obligations and review. See "Description of Business —
Government Regulations" below. Maintaining compliance with these requirements may result in significant additional expense
to us, and any failure to maintain such compliance could cause our business to suffer.
Noncompliance
with applicable regulations or requirements could also subject us to investigations, sanctions, mandatory product recalls, enforcement
actions, disgorgement of profits, fines, damages, civil and criminal penalties, or injunctions. An adverse outcome in any such
litigation could require us to pay contractual damages, compensatory damages, punitive damages, attorneys' fees and costs.
These enforcement actions could harm our business, financial condition and results of operations. If any governmental sanctions
are imposed, or if we do not prevail in any possible civil or criminal litigation, our business, financial condition and results
of operations could be materially adversely affected. In addition, responding to any action will likely result in a significant
diversion of management's attention and resources and an increase in professional fees.
Compliance
with regulations regarding the use of "conflict minerals" could limit the supply and increase the cost of certain
metals used in manufacturing our products.
Regulations
in the United States require that we determine whether certain materials used in our products, referred to as conflict minerals,
originated in the Democratic Republic of the Congo or adjoining countries, or originated from recycled or scrap sources. We are
required to comply with the SEC's conflict minerals rules, and we may incur costs associated with implementing and maintaining
policies and procedures to comply with the applicable rules and due diligence procedures. In addition, the verification and reporting
requirements could affect the sourcing and availability of minerals that are used in the manufacture of our products, and we may
face reputational and competitive challenges if we are unable to sufficiently verify the origins of all conflict minerals used
in our products. We may also face challenges with government regulators, potential customers, suppliers and manufacturers if we
are unable to sufficiently verify that the metals used in our products are conflict free.
There
could be an adverse change or increase in the laws and/or regulations governing our business.
We
and our operating subsidiary are subject to various laws and regulations in different jurisdictions, and the interpretation and
enforcement of laws and regulations are subject to change. We also will be subject to different tax regulations in each of the
jurisdictions where we will conduct our business or where our management or the management of our operating subsidiary is located.
We expect that the scope and extent of regulation in these jurisdictions, as well as regulatory oversight and supervision, will
generally continue to increase. There can be no assurance that future regulatory, judicial and legislative changes in any jurisdiction
will not have a material adverse effect on us or hinder us in the operation of our business. In addition, we may incur substantial
costs in order to comply with current or future environmental, health and safety laws and regulations applicable to us.
These
current or future laws and regulations may impair our research, development or production efforts or impact the research activities
we pursue. Our failure to comply with these laws and regulations also may result in substantial fines, penalties or other sanctions,
which could cause our financial condition to suffer.
Investment
Risks
You
could lose all of your investment.
An
investment in our securities is speculative and involves a high degree of risk. Potential investors should be aware that the value
of an investment in the Company may go down as well as up. In addition, there can be no certainty that the market value of an
investment in the Company will fully reflect its underlying value. You could lose your entire investment.
18
Our
stock trades in low volumes, which may make it more difficult for investors to sell their shares quickly.
Our
Common Stock trades on the Nasdaq Capital Market, but it trades in low volumes, which may make it more difficult for investors
to sell their shares quickly. This situation may be attributable to a number of factors, including but not limited to the fact
that we are a development-stage company that is relatively unknown to stock analysts, stock brokers, institutional investors,
and others in the investor community. In addition, investors may be risk averse to investments in development-stage companies.
As a consequence, it may be more difficult for investors to sell their shares quickly and our stock price may be more sensitive
to sales of our Common Stock in the market. The low trading volume is outside of our control and may not increase or, if it increases,
may not be maintained.
You
may experience dilution of your ownership interests because of the future issuance of additional shares of our common or preferred
stock or other securities that are convertible into or exercisable for our common or preferred stock, including as a result of
triggering price protection rights held by certain investors.
In
the future, we may issue our authorized but previously unissued equity securities, resulting in the dilution of the ownership
interests of our stockholders. The Company is authorized to issue an aggregate of 45,000,000 shares of Common Stock and 5,000,000
shares of preferred stock. We may issue additional shares of our Common Stock or other securities that are convertible into or
exercisable for our Common Stock in connection with hiring or retaining employees, future acquisitions, future sales of our securities
for capital raising purposes, or for other business purposes. For example, we issued approximately 5.4 million shares in private
placement offerings and approximately 1.6 million shares to new and continuing employees in calendar 2017, and we expect to hire
an additional 15 to 20 employees in the next 12 months. In addition, as of January 10, 2018, warrants and options to purchase
756,809 and 1,166,859 shares, respectively, of our Common Stock remained outstanding or had otherwise been granted to participants
in the Company's stock incentive plans, and restricted shares and restricted stock units for 771,494 shares of our Common
Stock had been granted to participants in the Company's stock incentive plans. In addition, certain investors have certain
price protection rights. Pursuant to such rights, if we issue shares of our Common Stock (subject to customary exceptions, including
issuances of awards under Company employee stock incentive programs and certain issuances in connection with credit arrangements)
at a price less than $5.50 per share, such investors will be entitled to receive (for no additional consideration) additional
shares of our Common Stock in an amount such that, when added to the number of shares of Common Stock they initially purchased,
will equal the number of shares of Common Stock that their initial investment would have purchased at the greater of the lower
purchase price and $5.00. The future issuance of additional shares of our Common Stock may create downward pressure on the trading
price of the Common Stock. We will need to raise additional capital in the near future to meet our working capital needs, and
there can be no assurance that we will not be required to issue additional shares, warrants or other convertible securities in
the future in conjunction with these capital raising efforts, including at a price (or exercise prices) below the price you paid
for your stock.
The
ability of our Board of Directors to issue additional stock may prevent or make more difficult certain transactions, including
a sale or merger of the Company.
Our
Board of Directors is authorized to issue up to 5,000,000 shares of preferred stock with powers, rights and preferences designated
by it. Shares of voting or convertible preferred stock could be issued, or rights to purchase such shares could be issued, to
create voting impediments or to frustrate persons seeking to effect a takeover or otherwise gain control of the Company. The ability
of the Board to issue such additional shares of preferred stock, with rights and preferences it deems advisable, could discourage
an attempt by a party to acquire control of the Company by tender offer or other means. Such issuances could therefore deprive
stockholders of benefits that could result from such an attempt, such as the realization of a premium over the market price for
their shares in a tender offer or the temporary increase in market price that such an attempt could cause. Moreover, the issuance
of such additional shares of preferred stock to persons friendly to the Board of Directors could make it more difficult to remove
incumbent managers and directors from office even if such change were to be favorable to stockholders generally.
We
do not anticipate paying dividends on our Common Stock.
Cash
dividends have never been declared or paid on our Common Stock, and we do not anticipate such a declaration or payment for the
foreseeable future. We expect to use future earnings, if any, to fund business growth. Therefore, stockholders will not receive
any funds absent a sale of their shares of Common Stock. If we do not pay dividends, our Common Stock may be less valuable because
a return on your investment will only occur if our stock price appreciates. We cannot assure stockholders that our stock price
will appreciate or that they will receive a positive return on their investment if and when they sell their shares.
19
We
are an emerging growth company, and the reduced disclosure requirements applicable to emerging growth companies will make our
Common Stock less attractive to investors.
We
are an emerging growth company under the JOBS Act. For as long as we continue to be an emerging growth company, we intend to take
advantage of certain exemptions from various reporting requirements that are applicable to other public companies including, but
not limited to, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements,
exemptions from the requirements of holding a nonbinding advisory stockholder vote on executive compensation ("say-on-pay"),
the frequency of say-on-pay and any golden parachute payments not previously approved, exemption from the requirement of auditor
attestation in the assessment of our internal control over financial reporting and exemption from any requirement that may be
adopted by the Public Company Accounting Oversight Board. If we do, the information that we provide stockholders may be different
than what is available with respect to other public companies. We cannot predict if investors will find our Common Stock less
attractive because we will rely on these exemptions. If some investors find our Common Stock less attractive as a result, there
may be a less active trading market for our Common Stock and our stock price may be more volatile.
Under
the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards until such time as those standards
apply to private companies. We have irrevocably elected to take advantage of this extended transition period. Since we will not
be required to comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required
for other public companies, our financial statements may not be comparable to the financial statements of companies that comply
with the effective dates of those accounting standards.
We
will remain an emerging growth company until the earliest of (1) the end of the fiscal year in which the market value of our Common
Stock that is held by non-affiliates exceeds $700 million as of the end of the second fiscal quarter, (2) the end of the fiscal
year in which we have total annual gross revenues of $1.07 billion or more during such fiscal year, (3) the date on which we issue
more than $1 billion in non-convertible debt in a three-year period or (4) June 30, 2019, the end of the fiscal year following
the fifth anniversary of the date of the first sale of our Common Stock pursuant to an effective registration statement filed
under the Securities Act of 1933, as amended (the "Securities Act"). Decreased disclosures in our SEC filings due
to our status as an "emerging growth company" may make it harder for investors to analyze our results of operations
and financial prospects.
Even
after we no longer qualify as an emerging growth company, we may still qualify as a "smaller reporting company," which
would allow us to take advantage of many of the same exemptions from disclosure requirements, including not being required to
comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act and reduced disclosure obligations regarding
executive compensation. Some investors may find our Common Stock less attractive because we rely on these exemptions, there may
be a less active trading market for our Common Stock and our stock price may be more volatile.
Being
a public company is expensive and administratively burdensome.
As
a public reporting company, we are subject to the information and reporting requirements of the Exchange Act, and other federal
securities laws, rules and regulations related thereto, including compliance with the Sarbanes-Oxley Act. Complying with these
laws and regulations requires the time and attention of our Board of Directors and management, and increases our expenses. Among
other things, we are required to:
●
maintain
                                         and evaluate a system of internal control over financial reporting in compliance with
                                         the requirements of Section 404 of the Sarbanes-Oxley Act and the related rules and regulations
                                         of the SEC and the Public Company Accounting Oversight Board,
●
maintain
                                         policies relating to disclosure control and procedures,
●
prepare
                                         and distribute periodic reports in compliance with our obligations under federal securities
                                         laws,
●
institute
                                         a more comprehensive compliance function, including with respect to corporate governance,
                                         and
●
involve,
                                         to a greater degree, our outside legal counsel and accountants in the above activities.
20
The
costs of preparing and filing annual and quarterly reports, proxy statements and other information with the SEC and furnishing
audited reports to stockholders is expensive and much greater than that of a privately-held company, and compliance with these
rules and regulations may require us to hire additional financial reporting, internal controls and other finance personnel, and
will involve a material increase in regulatory, legal and accounting expenses and the attention of management. There can be no
assurance that we will be able to comply with the applicable regulations in a timely manner, if at all. In addition, being a public
company makes it more expensive for us to obtain director and officer liability insurance. In the future, we may be required to
accept reduced coverage or incur substantially higher costs to obtain this coverage. These factors could also make it more difficult
for us to attract and retain qualified executives and members of our Board of Directors, particularly directors willing to serve
on the Audit Committee of our Board of Directors.
If
we fail to remediate the identified material weaknesses and maintain effective controls and procedures, we may not be able to
accurately report our financial results, which could have a material adverse effect on our operations, financial condition, and
the price of our Common Stock.
We
are required to maintain disclosure controls and procedures and internal control over financial reporting. Section 404 of the
Sarbanes-Oxley Act of 2002 requires us to include in our annual reports on Form 10-K an assessment by management of the effectiveness
of our internal control over financial reporting. As disclosed in Item 9A of our Annual Report on Form 10-K for the fiscal year
ended June 30, 2017, our management identified a material weakness in our internal control over financial reporting, causing our
disclosure controls and procedures and our internal control over financial reporting to be ineffective as of June 30, 2017, and
as further disclosed in Part I, Item 4 of our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017,
our management identified a material weakness in the design of our internal controls related to our accounting for and reporting
of stock-based compensation. A material weakness is a deficiency, or combination of deficiencies, such that there is a reasonable
possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a
timely basis. Remediation of the material weakness will require management attention and cause the Company to incur additional
expenses. If we fail to remediate the material weakness, or if we are unable to maintain effective controls and procedures in
the future, our ability to record, process, summarize, and report financial information accurately and within the time periods
specified in the rules and forms of the SEC could be adversely affected, we could lose investor confidence in the accuracy and
completeness of our financial reports, and we may be subject to investigation or sanctions by the SEC. Any such consequence or
other negative effect could adversely affect our operations, financial condition, and the price of our Common Stock.
In
addition, at such time, if any, as we are no longer a smaller reporting company or an emerging growth company, our independent
registered public accounting firm will have to attest to and report on management's assessment of the effectiveness of our
internal control over financial reporting. If and when we are required to have our independent registered public accounting firm
attest to management's assessment of the effectiveness of our internal control over financial reporting, if our independent
registered public accounting firm is not satisfied with the adequacy of our internal control over financial reporting, or if the
independent auditors interpret the requirements, rules, or regulations differently than we do, then they may decline to attest
to management's assessment or may issue a report that is qualified. Any of these events could result in a loss of investor
confidence in the reliability of our financial statements, which could negatively affect the price of our Common Stock.
21
DETERMINATION
OF OFFERING PRICE
There
currently is a limited public market for our Common Stock. The selling stockholders will determine at what price they may sell
the offered shares, and such sales may be made at prevailing market prices or at privately negotiated prices. See "Plan
of Distribution" below for more information.
USE
OF PROCEEDS
The
shares of Common Stock offered hereby are being registered for the account of the selling stockholders named in this prospectus.
As a result, all proceeds from the sales of the Common Stock will go to the selling stockholders and we will not receive any proceeds
from the resale of the Common Stock by the selling stockholders.
However,
we will receive proceeds from the exercise of the stock options already granted under the Plans if and to the extent that any
such options are exercised by the selling stockholders. We would expect to use these proceeds, if any, for general working capital
purposes.
22
DESCRIPTION
OF SECURITIES
We
have authorized capital stock consisting of 45,000,000 shares of Common Stock and 5,000,000 shares of preferred stock. As of the
date of this prospectus, we had 22,320,700 shares of Common Stock issued and outstanding, and no shares of preferred stock issued
and outstanding.
Common
Stock
The
holders of outstanding shares of Common Stock are entitled to receive dividends out of assets or funds legally available for the
payment of dividends at such times and in such amounts as the board from time to time may determine. Holders of Common Stock are
entitled to one vote for each share held on all matters submitted to a vote of stockholders. There is no cumulative voting of
the election of directors then standing for election. The Common Stock is not entitled to pre-emptive rights and is not subject
to conversion or redemption. Upon liquidation, dissolution or winding up of our company, the assets legally available for distribution
to stockholders are distributable ratably among the holders of the Common Stock after payment of liquidation preferences, if any,
on any outstanding payment of other claims of creditors. Each outstanding share of Common Stock is duly and validly issued, fully
paid and non-assessable.
Preferred
Stock
Shares
of preferred stock may be issued from time to time in one or more series, each of which will have such distinctive designation
or title as shall be determined by our Board of Directors prior to the issuance of any shares thereof. Preferred stock will have
such voting powers, whole or limited, or no voting powers, and such preferences and relative, participating, optional or other
special rights and such qualifications, limitations or restrictions thereof, as shall be stated in such resolution or resolutions
providing for the issue of such class or series of preferred stock as may be adopted from time to time by the Board of Directors
prior to the issuance of any shares thereof. The number of authorized shares of preferred stock may be increased or decreased
(but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of the voting
power of all the then outstanding shares of our capital stock entitled to vote generally in the election of the directors, voting
together as a single class, without a separate vote of the holders of the preferred stock, or any series thereof, unless a vote
of any such holders is required pursuant to any preferred stock designation.
While
we do not currently have any plans for the issuance of additional preferred stock, the issuance of such preferred stock could
adversely affect the rights of the holders of Common Stock and, therefore, reduce the value of the Common Stock. It is not possible
to state the actual effect of the issuance of any shares of preferred stock on the rights of holders of the Common Stock until
the Board of Directors determines the specific rights of the holders of the preferred stock; however, these effects may include:
●
Restricting
                                         dividends on the Common Stock;
●
Diluting
                                         the voting power of the Common Stock;
●
Impairing
                                         the liquidation rights of the Common Stock; or
●
Delaying
                                         or preventing a change in control of the Company without further action by the stockholders.
Other
than in connection with shares of preferred stock (as explained above), which preferred stock is not currently designated nor
contemplated by us, we do not believe that any provision of our charter or By-Laws would delay, defer or prevent a change in control.
Transfer
Agent
The
transfer agent for our Common Stock is Globex Transfer, LLC. The transfer agent's address is 780 Deltona Blvd., Suite 202,
Deltona, FL 32725 and its telephone number is 813-344-4490.
23
Anti-Takeover
Effects of Provisions of Our Certificate of Incorporation and By-Laws and Delaware State Law
The
provisions of the General Corporation Law of the State of Delaware, or DGCL, and our Certificate of Incorporation and By-Laws
could have the effect of discouraging others from attempting an unsolicited offer to acquire our company. Such provisions may
also have the effect of preventing changes in our management. It is possible that these provisions could make it more difficult
to accomplish transactions that stockholders may otherwise deem to be in their best interests.
Authorized
but unissued shares.
The authorized but unissued shares of our Common Stock and our preferred stock are available for future
issuance without any further vote or action by our stockholders. These additional shares may be utilized for a variety of corporate
purposes, including future public or private offerings to raise additional capital, corporate acquisitions and employee benefit
plans. The existence of authorized but unissued shares of our Common Stock and our preferred stock could render more difficult
or discourage an attempt to obtain control over us by means of a proxy contest, tender offer, merger or otherwise.
Special
meeting of stockholders and advance notice requirements for stockholder proposals.
Our By-Laws require that special meetings
of stockholders be called only by a majority of our board of directors, by the chairman of the board, the Chief Executive Officer,
the President, or the Secretary. In addition, our By-Laws provide that candidates for director may be nominated and other business
brought before an annual meeting only by the board of directors or by a stockholder who gives written notice to us not less than
90 days, nor more than 120 days, prior to the one year anniversary of the date of the annual meeting of the previous year. These
provisions may have the effect of deterring unsolicited offers to acquire our company or delaying stockholder actions, even if
they are favored by the holders of a majority of our outstanding voting securities.
Business
combinations
. The DGCL generally prohibits a corporation from engaging in any business combination with any interested stockholder
for a three-year period following the time that the stockholder became an interested stockholder, unless:
●
prior
    to such time, our board of directors approved either the business combination or the transaction which resulted in the stockholder
    becoming an interested stockholder;
●
upon
    consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder
    owned at least 85% of our voting stock outstanding at the time the transaction commenced, excluding certain shares; or
●
at
    or subsequent to that time, the business combination is approved by our board of directors and by the affirmative vote of
    holders of at least 66
2
⁄
3
% of the outstanding voting stock that is not owned by the interested
    stockholder.
Generally,
a "business combination" includes a merger, asset or stock sale or other transaction resulting in a financial benefit
to the interested stockholder. Subject to certain exceptions, an "interested stockholder" is a person who, together
with that person's affiliates and associates, owns, or within the previous three years owned, 15% or more of our voting
stock.
Under
certain circumstances, this provision could make it more difficult for a person who would be an "interested stockholder"
to effect various business combinations with a corporation for a three-year period. However, this provision generally does not
apply to a corporation that does not have a class of voting stock that is listed on a national securities exchange or held of
record by more than 2,000 stockholders. Accordingly, this provision does not currently apply to us.
SELLING
STOCKHOLDERS
The
table below sets forth information concerning the resale of the shares by the selling stockholders. We will not receive any proceeds
from the resale of the shares by the selling stockholders.
The
table below sets forth, as of January 29, 2018, (i) the name of each person who is offering the resale of shares by this prospectus
and their position with us; (ii) the number of shares (and the percentage, if 1% or more) of Common Stock beneficially owned (as
such term is defined in Rule 13d-3 under the Exchange Act) by each person; (iii) the number of shares that each selling stockholder
may offer for sale from time to time pursuant to this prospectus, whether or not such selling stockholder has a present intention
to do so; and (iv) the number of shares (and the percentage, if 1% or more) of Common Stock each person will own after the offering,
assuming they sell all of the shares offered. Unless otherwise indicated, beneficial ownership is direct and the person indicated
has sole voting and investment power. Unless otherwise indicated, the address for each selling stockholder listed in the table
below is c/o Akoustis Technologies, Inc., 9805 Northcross Center Court, Suite A, Huntersville, NC 28078.
24
The
table below has been prepared based upon the information furnished to us by the selling stockholders as of January 29, 2018, and
we have not independently verified this information. The selling stockholders identified below may have sold, transferred or otherwise
disposed of some or all of their shares since the date on which the information in the following table is presented in transactions
exempt from or not subject to the registration requirements of the Securities Act. Information concerning the selling stockholders
may change from time to time and, if necessary, we will amend or supplement this prospectus accordingly. We cannot give an estimate
as to the number of shares of Common Stock that will actually be held by the selling stockholders upon termination of this offering
because the selling stockholders may offer some or all of their Common Stock under the offering contemplated by this prospectus
or acquire additional shares of Common Stock. The total number of shares that may be sold hereunder will not exceed the number
of shares offered hereby. Please read the section entitled "Plan of Distribution" in this prospectus.
25
Selling Stockholder
Shares of Common Stock Beneficially Owned Prior to this Offering (1)
Percentage of Common Stock Beneficially Owned Before Resale (3)
Shares of Common Stock Offered for Resale in this Offering
Shares of Common Stock Beneficially Owned After this Offering (2)
Percentage of Common Stock Beneficially Owned After Resale (3)
Alan Kathman (4)
24,307
*
24,307
—
*
Alexander Feldman
12,089
*
12,089
—
*
Andrey Grinman (5)
8,103
*
8,103
—
*
Arthur Geiss (6)
80,125
*
86,307
13,818
*
Cindy Payne (7)
66,375
*
57,000
9,375
*
Dave Aichele (8)
126,784
*
122,534
4,250
*
David Keller (9)
16,205
*
16,205
—
*
Hannah Stalvey (10)
10,667
*
10,667
—
*
Isik Kizilyalli (11)
79,817
*
64,817
15,000
*
James R. Shealy (12)
447,082
2.0
%
71,816
375,266
1.7
%
Jeff McMahon (13)
557,342
2.5
%
62,000
515,342
2.3
%
Jeffrey Shealy (14)
3,275,862
14.7
%
36,000
3,239,862
14.5
%
Jerry Neal (15)
521,545
2.3
%
62,000
479,545
2.1
%
Lora Shealy (16)
4,000
*
4,000
—
*
Mark Boomgarden (17)
111,084
*
108,934
2,150
*
Michael David Hodge, II (18)
46,000
*
46,000
—
*
Michael P. Lewis (19)
34,234
*
34,234
—
*
Mike McLain (20)
27,000
*
27,000
—
*
Ozgur Aktas (21)
16,205
*
16,205
—
*
Pinal Patel (22)
29,957
*
29,957
—
*
Ramakrishna Vetury (23)
65,000
*
65,000
—
*
Richard J. Brown (24)
32,307
*
32,307
—
*
Richard T. Ogawa (25)
155,837
*
64,817
91,020
*
Shawn Gibb (26)
76,520
*
76,520
—
*
Steve P. Denbaars (27)
291,312
1.3
%
126,817
184,495
*
Westbrook Hosse (28)
20,000
*
20,000
—
*
Total
1,285,636
*Less
than 1%
(1)         Beneficial
ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect
to securities. Shares of Common Stock underlying options currently exercisable, or exercisable within 60 days after January 29,
2018 (as used in this section, the "Determination Date"), are deemed outstanding for purposes of computing the beneficial
ownership of the person holding such options but are not deemed outstanding for computing the beneficial ownership of any other
person. Except where we had knowledge of such ownership, the number presented in this column may not include shares held in street
name or through other entities over which the selling stockholder has voting and dispositive power.
(2)         Assumes
all of the shares of Common Stock to be registered on the registration statement of which this prospectus is a part are sold in
the offering, that shares of Common Stock beneficially owned by such selling stockholder but not being offered pursuant to this
prospectus (if any) are not sold, and that no additional shares are purchased or otherwise acquired.
(3)         Percentages
are based on the 22,320,700 shares of Common Stock issued and outstanding as of the Determination Date. Shares of our Common Stock
subject to options that are currently exercisable, or exercisable within 60 days of the Determination Date, are deemed to be outstanding
for the purpose of computing the percentage ownership of the person holding those options, but are not treated as outstanding
for the purpose of computing the percentage ownership of any other person.
26
(4)         Includes
6,914 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.
(5)         Includes
7,698 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.
(6)         Mr.
Geiss is Co-Chairman of the Company's Board of Directors and provides consulting services to the Company through his company,
AEG Consulting, LLC ("AEG Consulting"). Includes 28,256 restricted shares that are subject to a repurchase option
by the Company. The repurchase option expires as the restricted shares vest over time. Includes 20,000 shares of Common Stock
issuable upon the exercise of vested options that are exercisable until May 22, 2025.
(7)         Ms.
Payne served as the Company's Chief Financial Officer until July 14, 2017 when she voluntarily resigned and transitioned
into the position of Vice President of Finance. Ms. Payne resigned from all positions she held with the Company, effective January
12, 2018.
(8)         Mr.
Aichele is the Company's Vice President of Business Development. Includes 75,000 restricted shares that are subject to a
repurchase option by the Company. The repurchase option expires as the restricted shares vest over time.
(9)         Includes
16,205 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.
(10)       Includes
8,000 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.
(11)       Includes
16,205 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.
(12)       James
R. Shealy is the brother of the Company's President and Chief Executive Officer and has provided consulting services to
the Company. Includes 23,205 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires
as the restricted shares vest over time.
(13)       Mr.
McMahon is a director of the Company. Includes 22,000 restricted shares that are subject to a repurchase option by the Company.
The repurchase option expires as the restricted shares vest over time. Includes 20,000 shares of Common Stock issuable upon the
exercise of vested options that are exercisable until May 22, 2025.
(14)       Jeffrey
Shealy is the President, Chief Executive Officer and a director of the Company. Includes 36,000 restricted shares that are subject
to a repurchase option by the Company. The repurchase option expires as the restricted shares vest over time.
(15)       Mr.
Neal is Co-Chairman of the Company's Board of Director. Includes 22,000 restricted shares that are subject to a repurchase
option by the Company. The repurchase option expires as the restricted shares vest over time. Includes 20,000 shares of Common
Stock issuable upon the exercise of vested options that are exercisable until May 22, 2025.
(16)       Mrs.
Shealy is the Company's Human Resources Manager and the spouse of the Company's President and Chief Executive Officer.
Includes 4,000 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the
restricted shares vest over time.
(17)       Mr.
Boomgarden served as the Company's Vice President of Operations until his resignation, effective September 15, 2017.
(18)       Includes
32,500 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.
(19)       Includes
22,799 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.
(20)       Includes
27,000 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.
(21)       Includes
15,395 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.
(22)       Includes
15,104 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.
(23)       Includes
65,000 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.
(24)       Includes
14,077 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.
(25)       Includes
16,204 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.
(26)       Includes
51,000 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.
27
(27)       Mr.
DenBaars is a director of the Company and has held such position since May 22, 2015. Prior to becoming a director, Mr. DenBaars
provided consulting services to Akoustis, Inc. Includes 38,205 restricted shares that are subject to a repurchase option by the
Company. The repurchase option expires as the restricted shares vest over time. Includes 20,000 shares of Common Stock issuable
upon the exercise of vested options that are exercisable until May 22, 2025.
(28)       Includes
20,000 restricted shares that are subject to a repurchase option by the Company. The repurchase option expires as the restricted
shares vest over time.
28
PLAN
OF DISTRIBUTION
The
shares of Common Stock covered by this reoffer prospectus are being registered by Akoustis for the account of the selling stockholders.
The shares of Common Stock offered may be sold from time to time directly by or on behalf of each selling stockholder in one or
more transactions on the NASDAQ Capital Market or any other stock exchange on which the Common Stock may be listed at the time
of sale, in privately negotiated transactions, or through a combination of such methods, at market prices prevailing at the time
of sale, at prices related to such prevailing market prices, at fixed prices (which may be changed) or at negotiated prices. The
selling stockholders may sell shares through one or more agents, brokers or dealers or directly to purchasers. Such brokers or
dealers may receive compensation in the form of commissions, discounts or concessions from the selling stockholders and/or purchasers
of the shares or both. Such compensation as to a particular broker or dealer may be in excess of customary commissions. The number
of shares of Common Stock to be offered or resold by means of this prospectus by each selling stockholder may not exceed, during
any three-month period, the amount specified in Rule 144(e) under the Securities Act.
In
connection with their sales, a selling stockholder and any participating broker or dealer may be deemed to be "underwriters"
within the meaning of the Securities Act, and any commissions they receive and the proceeds of any sale of shares may be deemed
to be underwriting discounts and commissions under the Securities Act. We are bearing all costs relating to the registration of
the shares of Common Stock. Any commissions or other fees payable to brokers or dealers in connection with any sale of the shares
will be borne by the selling stockholders or other party selling such shares. Sales of the shares must be made by the selling
stockholders in compliance with all applicable state and federal securities laws and regulations, including the Securities Act.
In addition to any shares sold hereunder, selling stockholders may sell shares of Common Stock in compliance with Rule 144. There
is no assurance that the selling stockholders will sell all or a portion of the Common Stock offered hereby. The selling stockholders
may agree to indemnify any broker, dealer or agent that participates in transactions involving sales of the shares against certain
liabilities in connection with the offering of the shares arising under the Securities Act. We have notified the selling stockholders
of the need to deliver a copy of this reoffer prospectus in connection with any sale of the shares.
The
anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of our Common Stock and activities of the selling
stockholders, which may limit the timing of purchases and sales of any of the shares of Common Stock by the selling stockholders
and any other participating person. Regulation M may also restrict the ability of any person engaged in the distribution of the
shares of Common Stock to engage in passive market-making activities with respect to the shares of Common Stock. Passive market
making involves transactions in which a market maker acts as both our underwriter and as a purchaser of our Common Stock in the
secondary market. All of the foregoing may affect the marketability of the shares of Common Stock and the ability of any person
or entity to engage in market-making activities with respect to the shares of Common Stock.
Once
sold under the registration statement of which this prospectus forms a part, the shares of Common Stock will be freely tradable
in the hands of persons other than our affiliates.
LEGAL
MATTERS
The
validity of the shares of Common Stock offered pursuant to this prospectus will be passed upon for us by Womble Bond Dickinson
(US) LLP, Washington, DC.
EXPERTS
The
consolidated financial statements of Akoustis Technologies, Inc. and Subsidiaries as of June 30, 2017 and 2016 and for the years
then ended, included in this prospectus and the registration statement of which this prospectus forms a part by reference from
the Company's Annual Report on Form 10-K for the year ended June 30, 2017, have been audited by Marcum LLP, independent
registered public accounting firm, as set forth in its report thereon (which contains an explanatory paragraph relating to substantial
doubt about the ability of Akoustis Technologies, Inc. to continue as a going concern as described in Note 2 to the consolidated
financial statements), which are incorporated herein by reference, have been so incorporated in reliance on such report given
upon such firm's authority as an expert in auditing and accounting.
29
The
special purpose combined financial statements of The Research Foundation for the State University of New York and Fuller Road
Management Corporation, which comprise the special purpose statement of assets acquired and liabilities assumed as of June 26,
2017, and the related special purpose combined statements of revenues and direct expenses for the years ended June 30, 2016 and
2015, included in this prospectus and the registration statement of which this prospectus forms a part by reference from the Company's
Current Reports on Form 8-K/A filed with the SEC on September 12, 2017, have been audited by Marcum LLP, independent registered
public accounting firm, as set forth in its report thereon, which are incorporated herein by reference, have been so incorporated
in reliance on such report given upon such firm's authority as an expert in auditing and accounting.
MATERIAL
CHANGES
There
have been no material changes in our affairs since the end of our last fiscal year on June 30, 2017 to the date of this prospectus,
other than those changes that have been described in our Quarterly Report on Form 10-Q that we filed with the SEC on November
14, 2017 and the Current Reports on Form 8-K and 8-K/A, as applicable, that we filed with the SEC on June 30, 2017, July 17, 2017,
July 18, 2017, July 20, 2017, September 6, 2017, September 12, 2017, September 29, 2017, October 6, 2017, November 17, 2017, December
7, 2017, December 15, 2017, December 21, 2017, and January 10, 2018.
WHERE
YOU CAN FIND MORE INFORMATION
We
file annual reports, quarterly reports, current reports and other information with the SEC. You may read or obtain a copy of these
reports at our website address, www.akoustis.com, or at the SEC's public reference room at 100 F Street, N.E., Washington,
D.C. 20549. You may obtain information on the operation of the public reference room and their copy charges by calling the SEC
at 1-800-SEC-0330. The SEC maintains a website that contains registration statements, reports, proxy information statements and
other information regarding registrants that file electronically with the SEC. The address of the website is
http://www.sec.gov
.
We
have filed with the SEC a Registration Statement on Form S-8 under the Securities Act to register the shares offered by this prospectus.
This prospectus is part of that registration statement and constitutes a prospectus of the Company. This prospectus does not contain
all of the information set forth in the registration statement or the exhibits to the registration statement.
INCORPORATION
BY REFERENCE
The
SEC allows us to incorporate by reference certain of our publicly filed documents into this prospectus, which means that we can
disclose important business and financial information to you that is not included in or delivered with this prospectus by referring
you to publicly filed documents that contain the omitted information. The information incorporated by reference is considered
to be part of this prospectus, and any later information that we file with the SEC will automatically update and supersede this
information. You will be deemed to have notice of all information incorporated by reference into this prospectus as if that information
were included in this prospectus.
We
incorporate by reference into this prospectus the following documents or information filed with the SEC:
●
Annual
    Report on Form 10-K for the year ended June 30, 2017 filed with the SEC on September 20, 2017;
●
Amendment
    No. 1 to Annual Report on Form 10-K for the year ended June 30, 2017 filed with the SEC on September 26, 2017;
●
Quarterly
    Report on Form 10-Q for the quarter ended September 30, 2017 filed with the SEC on November 14, 2017; and
●
Current
    Reports on Form 8-K and 8-K/A, as applicable (excluding any reports or portions thereof that are deemed to be furnished and
    not filed) with the SEC on June 30, 2017, July 17, 2017, July 18, 2017, July 20, 2017, September 6, 2017, September 12, 2017,
    September 29, 2017, October 6, 2017, November 17, 2017, December 7, 2017, December 15, 2017, December 21, 2017 and January
    10, 2018.
30
We
will provide without charge to each person upon his or her written or oral request, a copy of any or all documents referred to
above which have been or may be incorporated by reference into this prospectus, excluding exhibits to those documents unless they
are specifically incorporated by reference into those documents. You can request those documents from Akoustis Technologies, Inc.,
at 9805 Northcross Center Court, Suite A, Huntersville, NC 28078, attn: Andrew Wright. You also may contact us at (704) 997-5735
or visit our website at
http://www.akoustis.com
, under the "Investors" section, for copies of those documents.
Our website and the information contained on, or that can be accessed through, our website are not a part of this prospectus,
and you should not rely on any such information in making your decision whether to purchase the shares offered hereby.
INDEMNIFICATION
OF DIRECTORS AND OFFICERS
Section
102(b)(7) of the DGCL allows a corporation to provide in its certificate of incorporation that a director of the corporation will
not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director,
except where the director breached the duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly
violated a law, authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law or
obtained an improper personal benefit. The Company's certificate of incorporation provides for this limitation of liability.
Section
145 of the DGCL, or Section 145, provides that a Delaware corporation may indemnify any person who was, is or is threatened to
be made, party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or
investigative (other than an action by or in the right of such corporation), by reason of the fact that such person is or was
an officer, director, employee or agent of such corporation or is or was serving at the request of such corporation as a director,
officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including attorneys'
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such
action, suit or proceeding, provided such person acted in good faith and in a manner he or she reasonably believed to be in or
not opposed to the corporation's best interests and, with respect to any criminal action or proceeding, had no reasonable
cause to believe that his or her conduct was illegal. A Delaware corporation may indemnify any persons who were or are a party
to any threatened, pending or completed action or suit by or in the right of the corporation by reason of the fact that such person
is or was a director, officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including
attorneys' fees) actually and reasonably incurred by such person in connection with the defense or settlement of such action
or suit, provided such person acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the
corporation's best interests, provided that no indemnification is permitted without judicial approval if the officer, director,
employee or agent is adjudged to be liable to the corporation. Where an officer or director is successful on the merits or otherwise
in the defense of any action referred to above, the corporation must indemnify him against the expenses which such officer or
director has actually and reasonably incurred.
Section
145 further authorizes a corporation to purchase and maintain insurance on behalf of any person who is or was a director, officer,
employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or
agent of another corporation or enterprise, against any liability asserted against him and incurred by him in any such capacity,
or arising out of his or her status as such, whether or not the corporation would otherwise have the power to indemnify him under
Section 145.
The
Company's Certificate of Incorporation provides that the liability of directors for monetary damages shall be eliminated
to the fullest extent under applicable law. The Company's By-Laws state that the Company shall indemnify every present or
former director, officer, employee, or agent of the Company or person who is or was serving at the Company's request as
a director, officer, member, manager, partner, trustee, fiduciary, employee or agent of another corporation, limited liability
company, partnership, joint venture, trust, employee benefit plan or other enterprise (each an "Indemnitee").
31
The
Company's By-Laws provide that the Company shall indemnify an Indemnitee against all judgments, fines, amounts paid in settlement
and reasonable expenses actually and reasonably incurred by the Indemnitee in connection with any proceeding in which he was,
or is threatened to be made, a party by reason of his serving or having served, if it is determined that the Indemnitee (a) acted
in good faith, (b) reasonably believed that such action was in, or not opposed to, the Company's best interests and (c)
in the case of any criminal proceeding, had no reasonable cause to believe that his conduct was unlawful; provided, however, that
the Company shall not be obligated to indemnify an Indemnitee that was threatened to be made a party but does not become a party
unless the incurring of such expenses was authorized by or under the authority of the Board of Directors, and the Company shall
not be obligated to indemnify against any amount paid in settlement unless the Board of Directors has consented to such settlement.
In any action brought by or in the right of the Company to procure a judgment in its favor, no indemnification shall be made in
respect of any proceeding if a final adjudication establishes that the Indemnitee is liable to the Company, unless the court determines
that such person is fairly and reasonably entitled to indemnity. The Company may indemnify an Indemnitee who has served, or prepared
to serve, as a witness in, but is not a party to, any action, suit, or proceeding. The termination of any proceeding by judgment,
order, settlement or conviction, or on a plea of nolo contendere or its equivalent, is not of itself determinative that the Indemnitee
did not meet the requirements set forth in clauses (a) through (c) above.
Expenses
incurred by any present or former director or officer of the Company in defending any civil, criminal, administrative, or investigative
action, suit, or proceeding, shall be paid by the Company in advance of the final disposition of such action, suit, or proceeding
upon receipt of an undertaking in writing by or on behalf of such person to repay such amount if it shall ultimately be determined
that such person is not entitled to indemnification. Expenses and costs incurred by other Indemnitees may be paid by the Company
in advance of the final disposition of such action, suit, or proceeding upon a similar undertaking.
Other
than discussed above, neither the Company's By-Laws nor its Certificate of Incorporation includes any specific indemnification
provisions for the Company's officers or directors against liability under the Securities Act. The Company has also purchased
insurance providing for indemnification of its directors and officers. Additionally, insofar as indemnification for liabilities
arising under the Securities Act may be permitted to directors, officers and controlling persons of the Company pursuant to the
foregoing provisions, or otherwise, the Company has been advised that, in the opinion of the SEC, such indemnification is against
public policy as expressed in the Securities Act and is, therefore, unenforceable.
32
PART
I
INFORMATION
REQUIRED IN THE SECTION 10(a) PROSPECTUS
Item
1.
Plan Information
.*
Item
2.
Registration Information and Employee Plan Annual Information
.*
*
Information
                                         required by Part I to be contained in the Section 10(a) prospectus is omitted from this
                                         Registration Statement in accordance with Rule 428 under the Securities Act and the "Note"
                                         to Part I of Form S-8.
PART
II
INFORMATION
REQUIRED IN THE REGISTRATION STATEMENT
Item
3
.
Incorporation of Documents by Reference
.
The
following documents filed by the Company with the SEC are incorporated herein by reference:
(a)       The
Company's Annual Report on Form 10-K for the year ended June 30, 2017 filed with the SEC on September 20, 2017;
(b)       Amendment
No. 1 to the Company's Annual Report on Form 10-K for the year ended June 30, 2017 filed with the SEC on September 26, 2017;
(c)       The
Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 filed with the SEC on November 14, 2017;
(d)       The
Company's Current Reports on Form 8-K and 8-K/A, as applicable, filed with the SEC on June 30, 2017, July 17, 2017, July
18, 2017, July 20, 2017, September 6, 2017, September 12, 2017, September 29, 2017, October 6, 2017, November 17, 2017, December
7, 2017, December 15, 2017, December 21, 2017, and January 10, 2018;
(e)       All
other reports filed pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), since the year ended June 30, 2017; and
(f)       The
description of the Company's Common Stock as set forth in the Company's Registration Statement on Form S-1 (File No.
333-222552), filed with the SEC on January 16, 2018.
All
documents subsequently filed by the Company with the SEC under Sections 13(a), 13(c), 14 and 15(d), as applicable, of the Exchange
Act, prior to the filing of a post-effective amendment to this Registration Statement which indicates that all securities offered
have been sold or which deregisters all securities then remaining unsold, shall be deemed to be incorporated by reference into
this Registration Statement and to be a part hereof from the date of filing of such documents; provided, however, that documents
or information deemed to have been furnished and not filed in accordance with SEC rules shall not be deemed incorporated by reference
into this Registration Statement.
Any
statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified
or superseded for the purposes of this Registration Statement to the extent that a statement contained herein or in any other
subsequently filed document which also is or deemed to be incorporated by reference herein modifies or supersedes such statement.
Any statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this
Registration Statement.
Item
4
.
Description of Securities
.
Not
applicable.
33
Item
5
.
Interests of Named Experts and Counsel
.
Not
applicable.
Item
6
.
Indemnification of Directors and Officers
.
Section
102(b)(7) of the DGCL allows a corporation to provide in its certificate of incorporation that a director of the corporation will
not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director,
except where the director breached the duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly
violated a law, authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law or
obtained an improper personal benefit. The Company's certificate of incorporation provides for this limitation of liability.
Section
145 of the DGCL, or Section 145, provides that a Delaware corporation may indemnify any person who was, is or is threatened to
be made, party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or
investigative (other than an action by or in the right of such corporation), by reason of the fact that such person is or was
an officer, director, employee or agent of such corporation or is or was serving at the request of such corporation as a director,
officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including attorneys'
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such
action, suit or proceeding, provided such person acted in good faith and in a manner he or she reasonably believed to be in or
not opposed to the corporation's best interests and, with respect to any criminal action or proceeding, had no reasonable
cause to believe that his or her conduct was illegal. A Delaware corporation may indemnify any persons who were or are a party
to any threatened, pending or completed action or suit by or in the right of the corporation by reason of the fact that such person
is or was a director, officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including
attorneys' fees) actually and reasonably incurred by such person in connection with the defense or settlement of such action
or suit, provided such person acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the
corporation's best interests, provided that no indemnification is permitted without judicial approval if the officer, director,
employee or agent is adjudged to be liable to the corporation. Where an officer or director is successful on the merits or otherwise
in the defense of any action referred to above, the corporation must indemnify him against the expenses which such officer or
director has actually and reasonably incurred.
Section
145 further authorizes a corporation to purchase and maintain insurance on behalf of any person who is or was a director, officer,
employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or
agent of another corporation or enterprise, against any liability asserted against him and incurred by him in any such capacity,
or arising out of his or her status as such, whether or not the corporation would otherwise have the power to indemnify him under
Section 145.
The
Company's Certificate of Incorporation provides that the liability of directors for monetary damages shall be eliminated
to the fullest extent under applicable law. The Company's By-Laws state that the Company shall indemnify every present or
former director, officer, employee, or agent of the Company or person who is or was serving at the Company's request as
a director, officer, member, manager, partner, trustee, fiduciary, employee or agent of another corporation, limited liability
company, partnership, joint venture, trust, employee benefit plan or other enterprise (each an "Indemnitee").
The
Company's By-Laws provide that the Company shall indemnify an Indemnitee against all judgments, fines, amounts paid in settlement
and reasonable expenses actually and reasonably incurred by the Indemnitee in connection with any proceeding in which he was,
or is threatened to be made, a party by reason of his serving or having served, if it is determined that the Indemnitee (a) acted
in good faith, (b) reasonably believed that such action was in, or not opposed to, the Company's best interests and (c)
in the case of any criminal proceeding, had no reasonable cause to believe that his conduct was unlawful; provided, however, that
the Company shall not be obligated to indemnify an Indemnitee that was threatened to be made a party but does not become a party
unless the incurring of such expenses was authorized by or under the authority of the Board of Directors, and the Company shall
not be obligated to indemnify against any amount paid in settlement unless the Board of Directors has consented to such settlement.
In any action brought by or in the right of the Company to procure a judgment in its favor, no indemnification shall be made in
respect of any proceeding if a final adjudication establishes that the Indemnitee is liable to the Company, unless the court determines
that such person is fairly and reasonably entitled to indemnity. The Company may indemnify an Indemnitee who has served, or prepared
to serve, as a witness in, but is not a party to, any action, suit, or proceeding. The termination of any proceeding by judgment,
order, settlement or conviction, or on a plea of nolo contendere or its equivalent, is not of itself determinative that the Indemnitee
did not meet the requirements set forth in clauses (a) through (c) above.
34
Expenses
incurred by any present or former director or officer of the Company in defending any civil, criminal, administrative, or investigative
action, suit, or proceeding, shall be paid by the Company in advance of the final disposition of such action, suit, or proceeding
upon receipt of an undertaking in writing by or on behalf of such person to repay such amount if it shall ultimately be determined
that such person is not entitled to indemnification. Expenses and costs incurred by other Indemnitees may be paid by the Company
in advance of the final disposition of such action, suit, or proceeding upon a similar undertaking.
Other
than discussed above, neither the Company's By-Laws nor its Certificate of Incorporation includes any specific indemnification
provisions for the Company's officers or directors against liability under the Securities Act. The Company has also purchased
insurance providing for indemnification of its directors and officers. Additionally, insofar as indemnification for liabilities
arising under the Securities Act may be permitted to directors, officers and controlling persons of the Company pursuant to the
foregoing provisions, or otherwise, the Company has been advised that, in the opinion of the SEC, such indemnification is against
public policy as expressed in the Securities Act and is, therefore, unenforceable.
Item
7
.
Exemption From Registration Claimed
.
All
of the shares of Common Stock issued by us to the selling stockholders who are reoffering and reselling such shares of Common
Stock pursuant to this Registration Statement were issued in reliance upon the exemption from registration under Section 4(a)(2)
of the Securities Act relating to sales by an issuer not involving any public offering or Rule 701 promulgated under the Securities
Act.
Item
8
.
Exhibits
.
The
exhibits listed in the accompanying Exhibit Index are filed as a part of this Registration Statement:
Item
9
.
Undertakings
.
(a)       The
undersigned Company hereby undertakes:
(1)
To
                                         file, during any period in which offers or sales are being made, a post-effective amendment
                                         to this Registration Statement:
(i)
to
                                         include any prospectus required by Section 10(a)(3) of the Securities Act;
(ii)
to
                                         reflect in the prospectus any facts or events arising after the effective date of the
                                         Registration Statement (or the most recent post-effective amendment thereof) which, individually
                                         or in the aggregate, represent a fundamental change in the information set forth in the
                                         Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume
                                         of securities offered (if the total dollar value of securities offered would not exceed
                                         that which was registered) and any deviation from the low or high end of the estimated
                                         maximum offering range may be reflected in the form of prospectus filed with the Commission
                                         pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent
                                         no more than a 20 percent change in the maximum aggregate offering price set forth in
                                         the "Calculation of Registration Fee" table in the effective Registration
                                         Statement; and
(iii)
to
                                         include any material information with respect to the plan of distribution not previously
                                         disclosed in the Registration Statement or any material change to such information in
                                         the Registration Statement;
provided,
however
, that paragraphs (a)(1)(i) and (a)(1)(ii) above do not apply if the information required to be included in a post-effective
amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the Company pursuant to Section
13 or Section 15(d) of the Exchange Act that are incorporated by reference into this Registration Statement.
35
(2)
That,
                                         for the purpose of determining any liability under the Securities Act, each such post-effective
                                         amendment shall be deemed to be a new registration statement relating to the securities
                                         offered therein, and the offering of such securities at that time shall be deemed to
                                         be the initial
bona fide
offering thereof.
(3)
To
                                         remove from registration by means of a post-effective amendment any of the securities
                                         being registered which remain unsold at the termination of the offering.
(b)
The
                                         undersigned Company hereby undertakes that, for the purposes of determining any liability
                                         under the Securities Act, each filing of the Company's annual report pursuant to
                                         Section 13(a) or 15(d) of the Exchange Act that is incorporated by reference into this
                                         Registration Statement shall be deemed to be a new registration statement relating to
                                         the securities offered therein, and the offering of such securities at that time shall
                                         be deemed to be the initial
bona fide
offering thereof.
(c)
Insofar
                                         as indemnification for liabilities arising under the Securities Act may be permitted
                                         to directors, officers and controlling persons of the Company pursuant to the foregoing
                                         provisions, or otherwise, the Company has been advised that in the opinion of the Commission
                                         such indemnification is against public policy as expressed in the Securities Act and
                                         is, therefore, unenforceable. In the event that a claim for indemnification against such
                                         liabilities (other than the payment by the Company of expenses incurred or paid by a
                                         director, officer or controlling person of the Company in the successful defense of any
                                         action, suit or proceeding) is asserted by such director, officer or controlling person
                                         in connection with the securities being registered, the Company will, unless in the opinion
                                         of its counsel the matter has been settled by controlling precedent, submit to a court
                                         of appropriate jurisdiction the question whether such indemnification by it is against
                                         public policy as expressed in the Securities Act and will be governed by the final adjudication
                                         of such issue.
36
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, Akoustis Technologies, Inc. certifies that it has reasonable grounds to believe
that it meets all of the requirements for filing on Form S-8 and has duly caused this Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of Huntersville, State of North Carolina, on February 7,
2018.
AKOUSTIS
                                         TECHNOLOGIES, INC.
By:
/s/
                                         Jeffrey B. Shealy
Jeffrey
                                         B. Shealy
President
                                         and Chief Executive Officer
POWER
OF ATTORNEY
Each
of the undersigned, being a director and/or officer of Akoustis Technologies, Inc. (the "Company"), hereby nominates,
constitutes and appoints Jeffrey B. Shealy, John T. Kurtzweil, Andrew Wright or any one of them severally, to be his or her true
and lawful attorney-in-fact and agent and to sign in his or her name and on his or her behalf in any and all capacities stated
below, and to file with the Securities and Exchange Commission (the "Commission") this Registration Statement on Form
S-8 (the "Registration Statement"), and to file any and all amendments, including post-effective amendments, exhibits
and other documents and instruments in connection therewith, to the Registration Statement, making such changes to the Registration
Statement as such attorney-in-fact and agent deems appropriate, and generally to do all such things on his or her behalf in any
and all capacities stated below to enable the Company to comply with the provisions of the Securities Act of 1933, as amended
(the "Securities Act"), and all requirements of the Commission.
Pursuant
to the requirements of the Securities Act, this Registration Statement has been signed by the following persons in the capacities
indicated on February 7, 2018.
Signature
Title
/s/
    Jeffrey B. Shealy
Jeffrey
    B. Shealy
President,
                                         Chief Executive Officer and Director
(Principal
        Executive Officer)
/s/
    John T. Kurtzweil
John
    T. Kurtzweil
Chief
    Financial Officer
(Principal
    Financial Officer and Principal Accounting Officer)
/s/
    Arthur E. Geis
Arthur
    E. Geis
Co-Chairman
    of the Board
/s/
    Jerry D. Neal
Jerry
    D. Neal
Co-Chairman
    of the Board
Steven
    P. DenBaars
Director
Jeffrey
    K. McMahon
Director
37
Signature
Title
/s/
    Steven P. Miller
Steven
    P. Miller
Director
Suzanne
    B. Rudy
Director
38
EXHIBIT
INDEX
Exhibit
Number
Description
4.1*
Specimen certificate representing the Common Stock of the Company
4.2
Plan
    of Conversion, dated December 15, 2016
(incorporated by reference to Exhibit 2.1 to the Company's Current Report
    on Form 8-K filed with the SEC on December 16, 2016)
4.3
Articles
    of Conversion of the Company, as filed with the Nevada Secretary of State on December 15, 2016
(incorporated by reference
    to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the SEC on December 16, 2016)
4.4
Certificate
    of Conversion of the Company, as filed with the Delaware Secretary of State on December 15, 2016
(incorporated by reference
    to Exhibit 3.2 to the Company's Current Report on Form 8-K filed with the SEC on December 15, 2016)
4.5
Certificate
    of Incorporation, as filed with the Delaware Secretary of State on December 15, 2016
(incorporated by reference to
    Exhibit 3.3 to the Company's Current Report on Form 8-K filed with the SEC on December 15, 2016)
4.6
Bylaws
    of the Company
(incorporated by reference to Exhibit 3.4 to the Company's Current Report on Form 8-K filed with
    the SEC on December 15, 2016)
5.1*
Legal Opinion of Womble Bond Dickinson (US) LLP
23.1*
Consent of Marcum LLP
23.2*
Consent of Womble Bond Dickinson (US) LLP
(included in Exhibit 5.1)
24.1*
Power
    of Attorney (included on Signature Page)
99.1.1
Akoustis,
    Inc. 2014 Stock Plan
(incorporated by reference to Exhibit 10.10 to the Company's Transition Report on Form 10-K
    filed with the SEC on October 31, 2016)
99.1.2
Declaration
    of Amendment to the Akoustis, Inc. 2014 Stock Plan
(incorporated by reference to Exhibit 10.2 to the Company's Quarterly
    Report on Form 10-Q filed with the SEC on November 14, 2017)
99.2.1
Akoustis
    Technologies, Inc. 2015 Equity Incentive Plan
(incorporated by reference to Exhibit 10.10 to the Company's Current
    Report on Form 8-K filed with the SEC on May 29, 2015)
99.2.2
Declaration
    of Amendment to the Akoustis Technologies, Inc. 2015 Equity Incentive Plan
(incorporated by reference to Exhibit 10.3 to
    the Company's Quarterly Report on Form 10-Q filed with the SEC on November 14, 2017)
*
Filed
                                         herewith
39