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Amplitech Group, Inc. (AMPG) SEC Filing 10-Q Quarterly Report for the period ending Thursday, September 30, 2021

SEC Filings

AMPG Registration of Securities

Amplitech Group, Inc.

CIK: 1518461 Ticker: AMPG

 

EXHIBIT 99.1

 

 

 

AmpliTech Q2 Revenue Rose 55% to $1.0M Driven by Expanding Sales Efforts

and Growing Demand for its Low Noise Signal Amplifiers That Enhance Satellite,

Telecom (5G) and Other Communications; Quarter-End Cash & Securities of $28.7M

 

BOHEMIA, NY, August 16, 2021 - AmpliTech Group, Inc. (Nasdaq: AMPG), a designer, developer and manufacturer of state-of-the-art communications components for satellite communications, space, telecom (5G/6G) and defense markets, today reported financial results for its second quarter and first six months of 2021 (Q2’21 and 6M’21) and reviewed its growth outlook.

 

AmpliTech is a world leading developer of Low Noise Amplifier (LNA) components which increase the power of a radio signal while eliminating the distortion or “noise” that can degrade or destroy digital signals. AmpliTech believes its LNA technology can play a vital role enabling substantial performance and bandwidth improvements in satellite communications and in achieving gigabit data transmission speeds in next generation 5G networks.

 

Highlights

 

·

Q2’21 revenue rose 55% to $1,024,410 vs. $660,699 in Q2’20 and increased 117% vs. Q1’21.

 

 

·

AmpliTech’s order backlog as of August 16th was $2.45M in contractual hardware and engineering services anticipated for delivery over the next three-to-six months, versus $2.4M at the close of Q1’21.

 

 

·

Secured Follow-On LNA Order from Fortune 500 global defense and aerospace company with expected shipment in Q3’21.

 

 

·

Secured $0.5M in orders in July for custom LNAs to be used in ground stations for geosynchronous equatorial orbit (GEO), low earth orbit (LEO) and medium earth orbit (MEO) satellite systems. Shipments also anticipated in Q3’21.

 

First Six Months Highlights

 

·

Completed a financial recapitalization and Nasdaq up-listing in the first half of 2021, yielding working capital of $29.8M as of June 30th. The capital is supporting expanded product development, sales and marketing and infrastructure investments while also providing the financial strength required to engage with global customer prospects previously outside AmpliTech’s reach.

 

 

·

Paid off $1M in debt, secured $0.2M in SBA loan forgiveness, purchased $0.4M in scientific equipment to enhance product development and testing and made a strategic investment in its secure LNA chip development joint venture partner SN2N.

 

 

·

Achieved design wins for AmpliTech’s LNA product suite which reaffirm its industry leading performance, extreme durability, and low power (and heat) dissipation. AMPG LNA components power satellite constellations and cellular/IoT devices, and its super-cooled cryogenic LNA components deliver signal amplification performance required for quantum computing systems and deep space research.

 

 

·

Began development, product testing and design integration for LNA chipsets with hardware encryption to power un-hackable 5G networks that deliver increased data flow and security to enable expanded content and data distribution as well as IoT device adoption

 

 

·

Built out expanded sales and marketing team and structure targeting major OEMs as well as system integrators to substantially expand the Company’s addressable market.

 

 

·

Established an on-site testing laboratory to expedite new product development while reducing variable R&D costs and increasing quality control.

 

 

 

  

Fawad Maqbool, President, CTO, and CEO, said, “Our Q2 results reflect initial benefits of our significantly enhanced financial position and the gradual return of customer prospects to more normal planning and procurement activity for projects where our low noise amplifier solutions can deliver game-changing performance and ROI. Importantly, our financial recapitalization is allowing AmpliTech to engage for the first time with a range of very large customer prospects that were previously out of our reach.

 

“We are making strategic investments in product development, sales & marketing and personnel and infrastructure to better position AmpliTech for hyper-growth opportunities we see across several markets, including satellite communications, the build out of true 5G infrastructure, quantum computing and space exploration.

 

“To address this very large and diversified base of long-term opportunities, we are transferring our decades of experience and industry-leading signal amplification technology into semiconductor chip-based solutions targeted for launch mid-next year. We have had excellent customer interest in these next-generation LNA solutions which will offer performance enhancements, built in hardware security, a far smaller footprint and a lower price point – for a very compelling ROI for customers.

 

“The next several years are expected to see unprecedented growth in the demand for wireless connectivity to power the proliferation of devices and rapid expansion in bandwidth requirements from cloud computing, content streaming, Internet of Things (IoT) applications, autonomous vehicles, quantum computing and space exploration.

 

Outlook  

“AmpliTech is positioning itself to be a key infrastructure provider to support satellite, 5G and other radio frequency communications infrastructure that will be scaling rapidly to address these growing needs. Given our substantially strengthened financial, product and industry position and the very favorable industry backdrop, we anticipate significant growth potential for our Company in the coming years.

 

“We expect our industry-leading product performance, new product offerings and growing end-market demand for cost effective digital bandwidth will drive substantial growth for AmpliTech for years to come. We are also working to identify potential tuck-in acquisitions of complementary businesses that can expand our customer capabilities, footprint and value-add.

 

“Our business development efforts are proceeding well, enabling a growing base of new customer dialogues that are progressing to custom designs as well as initial product testing. We anticipate generally improving market conditions over the balance of 2021, though with some potential for project delays related to the COVID-19 pandemic and its impact on customer activity, along with related supply chain challenges. Throughout, we will remain sharply focused on balancing our growth investments with our revenue ramp and margin profile in order to drive the business to positive cash flow and profitability.”

  

Q2’21 Results

Q2’21 revenue rose 55% to $1,024,410 vs. $660,699 in Q2’20 and increased 117% vs. Q1’21, reflecting the Company’s expanded sales efforts along with a return to more normal business conditions versus disruptions in customer activity related to the COVID-19 pandemic. AmpliTech was successful in rebuilding its order backlog during a strong period of product deliveries, yielding a current backlog of $2.45M which provides a solid outlook for the balance of the year.

 

 
2

 

 

Gross profit rose 52.5% to $344,623 in Q2’21 compared to $225,988 in Q2’20, reflecting the increase in revenue and a relatively stable gross margin of 33.6% in Q2’21 compared to 34% in Q2’20.

 

Selling, general and administrative expense increased to $1,043,550 in Q2’21 from $442,457 in Q2’20 principally due to investments in expanded sales, marketing, R&D, management, administrative and public-company activities and personnel intended to support long term growth. Q2’21 also included approximately $116,000 in expenses related to the Company’s common stock offering in the period, offset by a Q2’21 $232,200 gain on the extinguishment of debt reflecting forgiveness of the Company’s PPP loan.

 

AmpliTech reported a Q2’21 net loss of ($472,695), or ($0.05) per share, compared to a net loss of ($243,268), or ($0.10) per share, in Q2’20. Weighted average shares outstanding increased to 8,863,517 in Q2’21, reflecting shares issued in the Company’s common stock offerings in the first half of 2021, compared to 2,476,816 shares outstanding in Q2’20. As of August 10, 2021, AmpliTech had 9,343,671 shares of common stock outstanding.

 

Balance Sheet

AmpliTech had working capital of $29.8M at the close of Q2’21, including cash, cash equivalents and marketable securities totaling $28.7M, reflecting proceeds from the Company’s public offerings in February and April 2021.

 

About AmpliTech Group, Inc. (www.AmpliTechinc.com)

AmpliTech Group, Inc. designs, develops, and manufactures state-of-the-art radio frequency (RF) components for global satellite communications, telecom (5G & IoT), space, defense, and quantum computing markets as well as systems and component design consulting services. AmpliTech has a 13+ year track record of developing high performance, custom solutions to meet the unique needs of some of the largest companies in the global industries we serve. We are proud of the unique skills, experience and dedication of our focused team which enables us to deliver superior solutions, faster time to market, competitive pricing and excellent customer satisfaction and repeat business.

 

Safe Harbor Statement

This release contains statements that constitute forward-looking statements. These statements appear in several places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's ability to execute its business plan as anticipated; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements because of various factors. Other risks are identified and described in more detail in the “Risk Factors” section of the Company’s filings with the SEC, all of which are available on our website. We undertake no obligation to update, and we do not have a policy of updating or revising, these forward-looking statements, except as required by applicable law.

 

Company 

 

Investor Relations 

 

Twitter: 

AmpliTechAMPG

Twitter:

AmpliTechIR

Instagram: 

AmpliTechAMPG

StockTwits:

AMPG_IR

Facebook: 

AmpliTechInc

 

 

 

 

 

 

 

Investor Contact

David Collins

Catalyst IR

AMPG@catalyst-ir.com or 212-924-9800

  

 
3

 

 

AmpliTech Group, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

 

 

 

For The Three Months Ended

 

 

For The Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$ 1,024,410

 

 

$ 660,699

 

 

 

1,497,386

 

 

$ 1,416,647

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

 

679,787

 

 

 

434,711

 

 

 

1,097,781

 

 

 

951,345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

344,623

 

 

 

225,988

 

 

 

399,605

 

 

 

465,302

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

 

1,043,550

 

 

 

442,457

 

 

 

1,952,105

 

 

 

981,018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss From Operations

 

 

(698,927 )

 

 

(216,469 )

 

 

(1,552,500 )

 

 

(515,716 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expenses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on extinguishment of debt

 

 

232,200

 

 

 

-

 

 

 

232,200

 

 

 

-

 

Unrealized gain (loss) on investments

 

 

672

 

 

 

-

 

 

 

672

 

 

 

-

 

Interest expense, net

 

 

(6,640 )

 

 

(26,799 )

 

 

(32,998 )

 

 

(50,513 )

Total other income (expense)

 

 

226,232

 

 

 

(26,799 )

 

 

199,874

 

 

 

(50,513 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss Before Income Taxes

 

 

(472,695 )

 

 

(243,268 )

 

 

(1,352,626 )

 

 

(566,229 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision For Income Taxes

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

$ (472,695 )

 

$ (243,268 )

 

$ (1,352,626 )

 

$ (566,229 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss Per Share;

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$ (0.05 )

 

$ (0.10 )

 

$ (0.19 )

 

$ (0.23 )

Diluted

 

$ (0.05 )

 

$ (0.10 )

 

$ (0.19 )

 

$ (0.23 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares Outstanding;

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

8,863,517

 

 

 

2,476,816

 

 

 

7,225,036

 

 

 

2,476,816

 

Diluted

 

 

8,863,517

 

 

 

2,476,816

 

 

 

7,225,036

 

 

 

2,476,816

 

 

 
4

 

 

AmpliTech Group, Inc.

Condensed Consolidated Balance Sheets

 

 

 

June 30,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Assets

 

(Unaudited)

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$ 27,624,397

 

 

$ 199,536

 

Accounts receivable, net

 

 

600,679

 

 

 

357,055

 

Marketable Securities

 

 

1,109,638

 

 

 

-

 

Inventories, net

 

 

806,224

 

 

 

517,338

 

Prepaid expenses

 

 

416,066

 

 

 

322,124

 

Total Current Assets

 

 

30,557,004

 

 

 

1,396,053

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

673,026

 

 

 

289,251

 

Right of use operating lease assets

 

 

300,367

 

 

 

347,156

 

Intangible assets, net

 

 

611,856

 

 

 

632,209

 

Goodwill

 

 

120,136

 

 

 

120,136

 

Investment

 

 

150,000

 

 

 

-

 

Security deposits

 

 

26,707

 

 

 

26,707

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$ 32,439,096

 

 

$ 2,811,512

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

 

352,478

 

 

$ 113,541

 

Customer deposits

 

 

128,080

 

 

 

15,300

 

Current portion of financing lease

 

 

32,877

 

 

 

32,084

 

Current portion of operating lease

 

 

86,997

 

 

 

87,930

 

Current portion of notes payable

 

 

135,456

 

 

 

205,592

 

Line of credit

 

 

-

 

 

 

200,000

 

Total Current Liabilities

 

 

735,888

 

 

 

654,447

 

 

 

 

 

 

 

 

 

 

Long Term Liabilities

 

 

 

 

 

 

 

 

Finance lease, net of current portion

 

 

34,520

 

 

 

51,159

 

Operating lease, net of current portion

 

 

222,218

 

 

 

267,050

 

Notes payable, net of current portion

 

 

269,424

 

 

 

1,398,574

 

Total Liabilities

 

 

1,262,050

 

 

 

2,371,230

 

 

 

 

 

 

 

 

 

 

Commitments and Contingencies

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity

 

 

 

 

 

 

 

 

Series A convertible preferred stock, par value $0.001, 1,000,000 shares authorized, 0 issued and outstanding

 

 

-

 

 

 

-

 

Common Stock, par value $0.001, 500,000,000 shares authorized, 9,343,671 and 4,839,448 shares issued and outstanding, respectively

 

 

9,344

 

 

 

4,839

 

Additional paid-in capital

 

 

34,388,700

 

 

 

2,303,815

 

Accumulated deficit

 

 

(3,220,998 )

 

 

(1,868,372 )

 

 

 

 

 

 

 

 

 

Total Stockholders' Equity

 

 

31,177,046

 

 

 

440,282

 

 

 

 

 

 

 

 

 

 

Total Liabilities and

 

 

 

 

 

 

 

 

Stockholders' Equity

 

$ 32,439,096

 

 

$ 2,811,512

 

 

 
5

 


The following information was filed by Amplitech Group, Inc. (AMPG) on Tuesday, August 17, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Amplitech Group, Inc.'s 10-Q Quarterly Report:

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Cover
Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (Parenthetical)
Condensed Consolidated Statements Of Cash Flows (Unaudited)
Condensed Consolidated Statements Of Operations (Unaudited)
Condensed Consolidated Statements Of Stockholders' Equity (Unaudited)
Commitments And Contingencies
Cost-Method Investment
Cost-Method Investment (Details Narrative)
Intangible Assets
Intangible Assets (Details 1)
Intangible Assets (Details Narrative)
Intangible Assets (Details)
Intangible Assets (Tables)
Inventories
Inventories (Details)
Inventories (Tables)
Lease (Details 1)
Lease (Details 2)
Lease (Details 3)
Lease (Details Narrative)
Lease (Details)
Leases
Leases (Tables)
Line Of Credit
Line Of Credit (Details Narrative)
Marketable Securities
Marketable Securities (Details Narrative)
Marketable Securities (Details)
Marketable Securities (Tables)
Note Payable (Tables)
Notes Payable
Notes Payable (Details Narrative)
Notes Payable (Details)
Organization And Business Description
Organization And Business Description (Details Narrative)
Property And Equipment
Property And Equipment (Details Narrative)
Property And Equipment (Details)
Property And Equipment (Tables)
Revenues
Revenues (Details)
Revenues (Tables)
Stockholders Equity (Details 1)
Stockholders Equity (Details Narrative)
Stockholders Equity (Details)
Stockholders Equity (Tables)
Stockholders' Equity
Subsequent Events
Subsequent Events (Details Narrative)
Summary Of Significant Accounting Policies
Summary Of Significant Accounting Policies (Details 1)
Summary Of Significant Accounting Policies (Details Narrative)
Summary Of Significant Accounting Policies (Details)
Summary Of Significant Accounting Policies (Policies)
Summary Of Significant Accounting Policies (Tables)

Material Contracts, Statements, Certifications & more

Amplitech Group, Inc. provided additional information to their SEC Filing as exhibits

Ticker: AMPG
CIK: 1518461
Form Type: 10-Q Quarterly Report
Accession Number: 0001477932-21-008367
Submitted to the SEC: Mon Nov 15 2021 4:07:00 PM EST
Accepted by the SEC: Mon Nov 15 2021
Period: Thursday, September 30, 2021
Industry: Communications Equipment

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