EXPONENTIAL TECH INVESTOR

5G FORTUNES

HOW TO MAKE A FORTUNE ON

THE NEXT TECH REVOLUTION

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5G Fortunes
How to Make a Fortune on the Next Tech Revolution
By Jeff Brown, Editor, Exponential Tech Investor
Welcome to Exponential Tech Investor. Our
mission is to profit from technology companies
on the verge of exponential growth. We do this
by investing in small- or micro-cap companies on
the verge of mass adoption.
In this report, I’ll show you one of the biggest
technology stories today. Then, I’ll reveal the one
company poised for 10x gains as this tech revolu-
tionizes modern communications.
From Sci-Fi to Reality
One of the biggest emerging trends in tech right
now is fifth-generation (5G) wireless technology,
and I’ve been watching it closely.
It’s a trend I’m deeply connected with. I worked
for many years as an executive in the wireless
industry with the top wireless network opera-
tors around the world. This has allowed me to
maintain important connections within the high
technology industry and stay on top of important
developments in the space.
So when I say that 5G is one of the biggest, most
revolutionary technological innovations of our
time, you can be certain I don’t say it lightly.
And that innovation won’t come overnight. A
massive infrastructure project is in the works,
right now, to make it all possible.
What we as everyday consumers don’t see is
that when you connect to the internet on your
computer, smartphone, or smart TV, a vast
physical communications infrastructure makes
2
that connection possible.
Hundreds of thousands of miles of transoceanic
cables connect to vast, land-based fiber-optic
networks, which in turn connect to consumers’
homes and businesses.
Over the years, these wireless networks – and
the infrastructure that supports them – have
evolved. But not all of it has lived up to consum-
ers’ expectations.
For example, the current 4G cellular networks
are a disappointment.
The developers who built the 4G network
thought it would deliver average download
speeds of 100 megabits per second (Mbps). But
in reality, many people only see speeds of about
10 Mbps.
(Megabits per second, or Mbps, is a common
measurement for internet connection and down-
load speeds. For example, to stream a high-defi-
nition video from Netflix, you need a download
speed of at least 5 Mbps.)
But with 5G, the peak speed jumps to 10 gigabits
per second (Gbps). One gigabit is 1,000 megabits.
So, at peak speed, 5G will be 1,000 times faster
than the average 4G connection we have today.
Even if we just assume that average 5G speeds
would be 10% of their potential, we’re still look-
ing at 1,000 Mbps. That means that average 5G
speeds will be 100 times faster than what we
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have today.
With that kind of speed, you’ll be able to down-
load a two-hour movie in 10 seconds. Dropped
phone calls and slow-loading web pages will be a
thing of the past.
Plus, some previously “sci-fi” tech will finally
become a reality. Technologies like self-driving
cars, augmented and virtual reality, and holo-
graphic projection will all operate over high-
speed 5G connections. The applications are
endless.
5G is a game changer because of all the techno-
logical innovation it will bring about.
Some estimates cite that it’ll be responsible for
$12 trillion worth of new goods and services by
2035. That’s about 56% of America’s total GDP
in 2019.
I simply cannot think of a trend with more profit
potential than 5G right now. But to really un-
derstand why 5G is so transformative, let’s look
back to the early days of wireless and see how far
we’ve come…
The History of Wireless Networks
At a very high level, here’s what each wireless
generation has enabled since 1G in 1983:
• 1G (deployed in the 1980s): Analog cellular
technology, very low bandwidth, designed
to enable mobile phone calls
• 2G (deployed in the 1990s): Digital cellu-
lar technology, digital voice phone calls,
enabled SMS (short messaging service –
sending texts)
• 3G (deployed in the 2000s): Widespread
use of CDMA technology, high-quality
audio for calls, early stages of low-quality
3
video over mobile, and internet access
• 4G (deployed in the 2010s): Significant
increase in data bandwidth enabling inter-
net browsing and streaming of high-quality
video, voice over IP technology (basically
free phone calls anywhere in the world
using services like Skype or any kind of
messaging application)
Wireless technology is what enables today’s
modern mobile phone networks. Since the first
generation in the 1980s, the industry has been
forced to develop the next generation of wireless
technology every 10 years or so.
I say “forced” because the industry basically
has had no choice… By the end of each wireless
generation, wireless networks become congest-
ed with traffic. And once that happens, wireless
network operators can no longer consistently
provide high-quality service to consumers.
What’s the problem? Why the congestion? Well,
one chart explains it all…
The chart on the next page shows the amount of
data and voice traffic transmitted over the world’s
wireless networks since the fourth quarter of
2014. And it shows the exponential growth in de-
mand for sending and receiving data (like images,
music downloads, and websites) over wireless
networks.
The amount of voice traffic (in gray) was roughly
constant over the last several years. But what’s
striking is that data (in blue) has exploded. As of
Q4 2019, our wireless networks are transmitting
40 exabytes of data every month.
To put that in perspective: Just one exabyte is
equivalent to 100,000 times all the printed mate-
rial in the Library of Congress.
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I know… it’s hard for us to get our

heads around how much informa-
tion that is.

And given the rate of growth,

wireless network congestion will
only get worse...

Have you had a dropped call in

the last 12 months? Or have you
dialed a number, someone picks
up, and you can’t hear them? Has
it taken too long to download a
web page? Can’t seem to receive
or send your email?

These problems are almost al-

ways due to network congestion.
Just like when there’s a traffic jam
on a highway and the cars aren’t moving… there
can be too much data on a wireless network, and
the digital packets of information just can’t get to
their destination.
There’s only one solution to fix that problem…
The world has to build new infrastructure to sup-
port the exponential growth in data traffic over
wireless networks. There’s no other way.
The Next Infrastructure Boom
And here’s the exciting part… It’s already be-
gun. The network build-out for 5G is happening
right now in the U.S. and in a limited number of
first-mover countries.
It’s important that we position ourselves now
in the Exponential Tech Investor portfolio to
profit from this massive trend. Not only will 5G
transform our lives and enable us to do things we
could have never done before… but it will also be
one of the single best investment opportunities
that we’ll see in the next 10 years.
What will 5G mean for consumers? How will it
be different from what we experience daily over
4G networks?
• Typical speeds on 5G will be an average of 1
gigabit per second (Gbps), which would be
100 times faster than what a U.S. consumer
experiences on 4G today.
• Self-driving cars will be connected in real
time over wireless networks.
• Companies will be piloting trucks for
logistics remotely, just as drones can be
flown from halfway around the world over
satellite networks.
• We’ll be able to surf the internet and make
phone calls while riding on a high-speed
train up to 310 miles per hour (500 km/
hour).
• Consumers will be able to “sit in” on meet-
ings by projecting themselves using holo-
graphic images in real time with no video

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or audio delay.
• And there will effectively be no latency
(delay) over 5G networks. Latency will drop
by 99% from more than 100 milliseconds
down to a mere 1 millisecond. Latency like
this would enable a doctor to operate on a
patient with robotic surgery… over a wireless
network.
5G wireless networking technology is not evolu-
tionary… it is revolutionary.
I hope that by reading this, you’re as excited as I
am with what’s coming. From my perspective, it
can’t happen fast enough. And the positive eco-
nomic implications are just incredible…
Massive Investment Leads
to Massive Growth
Very shortly, I’ll show you how we’ll invest in this
massive communications build-out. But first, let
me show you how the 5G build-out will impact
the world economy…
For the U.S. market alone, it’s expected that the
major wireless carriers (AT&T, Verizon, and the
combined T-Mobile/Sprint) will spend as much
as $275 billion on 5G wireless infrastructure.
To put that into more understandable terms,
this will result in an estimated three million jobs
created and $500 billion in GDP growth… again,
just in the U.S.
Globally, total investments will be on the order
of $200 billion per year through 2025. By my
calculations, total global investment will be on
the order of $2 trillion by the time the build-out
is done.
Put simply, this is the largest, most significant
communications infrastructure build-out the
5
world has ever seen. And it won’t come easy.
5G is very different from 4G technology. It’s
more expensive to build out, more complicated,
and far more powerful.
What’s important to understand is that there is
a fundamental, technical reason for why these
networks are more expensive to build.
3G and 4G technology used wireless towers that
could cover 30-45 miles of flat terrain. But 5G
network architecture is completely different.
It uses what’s called a “small cell” architecture,
which requires far more cell tower locations. For
major metropolitan areas, this could mean one
small cell tower on almost every street corner.
Today, there are about 200,000 cell phone
towers scattered across the U.S. Yet when the 5G
network is constructed, there will be more than
1,000,000 cell phone towers to support the high-
er bandwidth, higher speeds, and new services
delivered over 5G.
That’s at least a fivefold increase in the number
of towers needed for 5G compared to the previ-
ous generation.
There’s a good reason for this shift in architec-
ture… the congestion problem I mentioned earli-
er in this report.
Even with all of the improvements in wireless
communications technology over the last 10
years, dropped calls still happen all the time.
Right now, one small company is helping fix that.
Its game-changing technology is improving the
quality and performance of mobile phone calls.
I’m confident it’s going to do extremely well in the
future… and we could see 10x gains.
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Why 5G Won’t Make You Sick

With 5G wireless network construction happening at an accelerated pace and 5G wireless broad-
band internet services already appearing in markets around the U.S., consumers are now seeing
the first 5G smartphones for sale.

Not surprisingly, we’ve received a lot of questions about whether or not 5G wireless technology is
safe for consumers. It’s important for us to ask these questions and also to understand the facts
behind the research.

Mobile phones emit radiofrequency radiation, or radio waves, which are a form of non-ionizing
radiation. This kind of radiation is normal and all around us. Non-ionizing radiation only has
enough energy to excite a molecule, and the byproduct is merely heat.

Ionizing radiation, by contrast, is higher frequency and can be a severe health hazard. It can
cause radiation sickness, burns, cancer, and even genetic damage. Ionizing radiation is the kind
of radiation we find in using nuclear power.

It is important to be clear that 5G wireless technology is a form of non-ionizing radiation. And

for that matter, so is the current 4G wireless technology and every other generation prior to that.

Since radio frequencies (RF) have been used in radio, TV, wireless networks, and many other
services for decades, this is a careful area of study for regulatory agencies to ensure that these RF
waves have no negative impact on consumers’ health.

To be very clear, there has been no conclusive evidence that RF wireless technology causes any
side effects in consumers who use, or even those in the presence of, wireless networks.

A study in Denmark analyzed the records of more than 358,000 mobile phone subscribers with
brain tumor incidence data from the Danish Cancer Registry. The “analysis found no association
between cell phone use and the incidence of glioma, meningioma, or acoustic neuroma, even
among people who had been cell phone subscribers for 13 or more years.”

In 2018, there was some very bad reporting concerning a study on the effects of high exposure of
radiofrequency energy on rats. It found that male rats exposed to radio waves developed schwan-
nomas (small tumors) on their hearts at statistically higher rates than the control group. However,
mice and female rats exposed to the same radio waves did not develop any of these small tumors.

Somewhat ironically, those animals that were exposed to the radiofrequency radiation actually
lived longer than the control animals that weren’t.

Also worth mentioning is that there have only been a handful of documented cases in humans of
schwannomas of the heart… They are incredibly rare in humans.

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This study was conducted by the National Toxicology Program (NTP), which is part of the Na-
tional Institutes of Health (NIH). Worth noting is that the study was performed at the request of
the Food and Drug Administration (FDA), which is responsible for determining the safety of such
radiofrequency energy.

Left out of the negative reporting on this research was the fact that the study used levels of radiof-
requency energy that were considerably above what the FDA deems as the current safety limit for
cell phones. And the current safety limits have a 50-fold safety margin to ensure consumer safety.

In the words of the NTP, “The levels and duration of exposure to radiofrequency radiation were
much greater than what people experience with even the highest level of cell phone use, and ex-
posed the rodents’ whole bodies. So, these findings should not be directly extrapolated to human
cell phone usage.”

The FDA summarized that it had “not found sufficient evidence that there are adverse health effects
in humans caused by exposures at or under the current radiofrequency energy exposure limits.”

In support of the FDA’s position, the National Cancer Institute notes that it does not see increas-
ing numbers of brain tumors in the general population. Given that humans have been exposed to
radiofrequency energy for decades, if there was a direct correlation to our health, we should have
seen the impact already. So far, we have not.

For obvious reasons, I’ll be tracking this topic closely as 5G wireless networks become more wide-
spread. My readers know well that 5G wireless networks will use up to five times more cell phone
towers than 4G and more power in order to deliver higher speed to smartphones. It’s important
to note that all 5G-enabled smartphones will still meet the safety limits and standards set by the
Federal Communications Commission (FCC), which is informed by the FDA.

The above research should dispel any concerns you might have about 5G’s impact on your health.
But if you’re still worried about it, I’ll leave you with a couple extra steps you can take to minimize
your RF exposure…

First, use a landline phone whenever possible and try to avoid long conversations on mobile
phones. Second, when you do have long conversations on mobile phones, I recommend using
some kind of headset (wired or wireless) that allows you to talk without having the mobile phone
right next to your head. For those who are concerned, this is a simple precaution that anyone can
take.

We’re in for an incredible time as 5G wireless technology becomes available throughout the U.S.
and in other markets around the world. We’re going to see such incredible improvement in wire-
less service, we’ll wonder how we ever survived without it.

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 8

But before we get to that company, United States Radio Frequency Allocations
let’s take a closer look at what’s
going on with wireless communi-
cations technology today…

Growing Pains
As I showed in the chart on page
4, mobile data growth has been
exponential over the last few
years. Data usage has been dou-
bling roughly every 14–15 months.

This creates a major challenge for

wireless network operators like
AT&T, Verizon, and Sprint.

Wireless networks transmit data Source: NTIA

and phone calls through the air

in clearly defined radio frequen-
cy (RF) ranges. These frequency ranges are the
spectrum that is used for transmission. Wireless
network operators purchase or license the rights
to deliver a service using the spectrum.
The spectrum is typically thought of as a “public
good” and is usually regulated by each country’s
government and harmonized with adjacent coun-
tries in order to avoid unwanted signal interfer-
ence.
The problem is, when data traffic continues to
grow exponentially – doubling again and again
– more efficient technology and additional spec-
trum is required to avoid dropped calls and
signals.
You see, the spectrum allocated for services
transmitted over RF is jam-packed. The above
image will give you a feeling for how busy the
radio spectrum is. It represents the United States
market, but most countries have similar spec-
trum usages and allocation.
That’s where 1G, 2G, 3G, and 4G/LTE wireless
technologies come in…
Each generation tends to operate at much higher
frequencies in the radio spectrum. The reason is
that there is more spectrum available for use at
higher frequencies compared to where services
are being delivered today.
At the moment, the most widely deployed wire-
less technologies worldwide are the third gener-
ation (3G) and fourth generation (4G). The fifth
generation (5G) is not far behind, with some of
the earliest deployments beginning back in 2018.
The key thing to understand is that 3G and 4G
technologies are transmitted across a wide range
of frequencies – basically between 700 MHz
and 2200 MHz. As the world starts to progress
toward 5G deployments, the frequency range is
getting even higher – anywhere between 2400
MHz and 8600 MHz.
So we will continue to need new generations of
wireless technologies that are more efficient with

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their use of allocated spectrum. Evolution of Wireless Communication
We’ll also need to continue to add
spectrum at higher frequencies as
The data rate for 5G will be 100,000
the demand for data consumption times more than the data rate for 2G
continues to increase.
That leads us to our recommen-
dation. This company provides a
critical component in the RF space
that improves the quality and per-
formance of mobile phone calls.
You can think of this company as a
backdoor play on the evolution of
wireless technology and the expo-
nential growth in data.
And best of all, almost no one has
heard of it…
Next-Generation Tech
Akoustis (AKTS) is a small company outside
of Charlotte, North Carolina, that’s been quietly
developing leading-edge technology for wireless
devices.
It was established in May 2014 by its CEO, Jeff
Shealy, who has spent the last 20 years of his
career in the RF/wireless industry. Jeff founded
a company called RF Nitro that was acquired
in 2001 by industry leader RF Micro Devices
(RFMD). He spent 13 years at RFMD. In 2015,
RFMD and another industry player called
TriQuint merged and formed a company called
Qorvo. I’ll come back to this in a moment.
Akoustis was essentially a scientific research
entity for its first several years of existence. Until
2017, the company was completely focused on
developing a new, novel technology that im-
proves the performance of wireless devices.
That novel technology is a new kind of radio
9
Full IP Efficiency
Data/PS 5G
4G
Digital (LTE)
3G
Analogue 2G
1G
X10 X200 X4200 X30000 X100000
Data rate increase
Source: 3GPP
frequency filter (RF filter) technology called a
“wide-band single-crystal bulk acoustic wave
resonator.” To keep things simple, we’ll refer to it
as a single-crystal BAW filter.
You might not know this, but every phone and
wireless device has RF filters. These allow the
phones to receive and transmit voice, video, and
data over the wireless network at certain fre-
quencies. They’re used by Wi-Fi networks as well.
Every mobile phone or wireless device contains
anywhere between 20 and 40 of these filters.
I won’t get too technical on the product, but
there are a few key things to know.
In May 2016, Akoustis published a breakthrough
single-crystal BAW filter design at a conference
held by the IEEE (Institute of Electrical and
Electronics Engineers). The IEEE is one of the
most well-respected trade organizations in high
technology, so the venue was significant.
The impact that Akoustis’ BAW filter has on the
performance of a mobile device is significant. It
has the ability to support two times the spectrum
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bandwidth compared to competing solutions,
which results in:
• Better signal strength
• Fewer dropped calls
• Lower power consumption
• Less heat generated by the phone
In short, this technology allows a mobile device
to access more spectrum with fewer filters due to
its ability to cover a wider spectrum bandwidth.
Aside from allowing users to dependably make
and receive phone calls, it also offers longer bat-
tery life. This is one of the most wanted features
by adult smartphone users. After all, if we don’t
have any power left in our batteries, it won’t mat-
ter how good our smartphone is.
But one of the biggest challenges that smartphone
and tablet manufacturers have is manufacturing
products that can survive a full day of usage with-
out needing to be recharged throughout the day.
So technologies that help to reduce power con-
sumption on smartphones are seen as absolutely
critical by the industry.
I’ll go into more details about Akoustis’ BAW
filter in a minute. But first, let’s take a look at the
overall RF filter market…
A Massive Market That
Continues to Expand
The market size for RF filters is massive. And for
a simple reason: Every single phone and wireless
device contains RF filters.
Think about that. Consumers purchase near-
ly two billion new phones every year, and that
number will increase as 5G rolls out. Every sin-
10
gle one of those phones will contain up to 40 RF
filters compatible at 5G frequencies. That’s a lot
of filters.
The total RF filter market is broken down into
two simple categories: “low band” filters, called
SAW filters, and “high band” filters, called BAW
filters.
SAW filters are used in low-RF bands, typically
2 GHz or less. BAW filters are used in high-RF
bands, typically 2 GHz up to potentially 20 GHz.
Again, Akoustis is focused entirely on BAW
filters.
About 28 billion RF filters were shipped in 2016,
generating nearly $12 billion in revenue. And the
RF market is forecast to grow to $19 billion by
2021.
The underlying driver for this market is the
migration from 4G wireless technology to
5G… which is being deployed worldwide right
now. And as the world upgrades its wireless
technology to meet the demands for more
data traffic… RF filters will get more and more
complex.
Increased RF complexity results in the need for
more RF filters in mobile devices. Put even more
simply, as data services are transmitted over
a larger amount of different parts of the radio
spectrum, more RF filters are required. In 2005,
which was when 3G technology was being widely
deployed, only two RF filters were required.
But by 2013, in the midst of 4G wireless technol-
ogy deployments, the amount of filters required
jumped by a factor of 10! By 2015, that number
doubled again to more than 40. Needless to say,
the number of filters required will increase again
during the migration to 5G wireless technology
and higher frequency bands.
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And this jump in filter complexity

has a direct impact on Akoustis’
bottom line.

Think about this: Every wireless

Annual Revenue (in Billions)

device contained about $0.75
worth of RF filters back in 2014.
That number grew to $4.00 per de-
vice in 2015… and $7.50 per device
in 2016. In 2017, as the 4G network
hit its limits, every wireless device
contained about $19.50 worth of
RF filters. That’s a 2,500% increase
over 2014.

And Akoustis projects that every

wireless device will contain $24.50
worth of RF filters as 5G technolo-
gy hits its stride.

A Duopoly Creates a
Great Market Opportunity
Now, there’s something interest-
ing about the BAW filter market…
It is essentially a duopoly. It is
controlled by only two companies,
Qorvo and Broadcom.

I mentioned Qorvo earlier. As

I said, it was formed from the
merger of RFMD and TriQuint.
Broadcom is the result of the
acquisition of Broadcom by another
semiconductor company called
Avago, which was completed in
February 2016.
products. Buyers of BAW filters are desperate for
The mergers and acquisitions activity during the alternatives in this space. So there’s a massive
last several years has created this unique duopoly opportunity for a third player like Akoustis.
in the market.
Game-Changing Technology
The result has been a less competitive market for
The new BAW filter technology Akoustis has de-
companies that purchase BAW filters for their

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signed is revolutionary.
As I told you earlier, the single-crystal design is
capable of supporting a spectrum bandwidth that
is twice as wide as what’s currently used in the
market.
This leads to better signal strength, fewer
dropped calls, and prolonged battery life. It will
also result in the reduction of the number of fil-
ters required in a mobile device.
A reduction in components (filters) leads to sav-
ing space in the design… And space is at a premi-
um in smartphone design.
Now, it’s important to note that Akoustis’ single-
crystal BAW filters will be more expensive than
the lower-bandwidth BAW filters from Qorvo
and Broadcom that are commonly used in the
market.
This might sound like a competitive disadvan-
tage… But there are three reasons it’s not.
First, I believe that the use of Akoustis filters will
reduce the overall cost of the bill of materials for
mobile devices because fewer components re-
sults in lower costs.
Second, the reduction in battery consumption
will be the second major driver for using Akous-
tis’ BAW filters. I can foresee a 5%-10% reduc-
tion in power consumption.
You may think 10% isn’t much. But in terms of
power consumption, it is massive. Think about
an average day of usage with a mobile device. If
a device is used for eight hours (480 minutes)
for voice, video, and data, a 10% improvement
would result in an additional 48 minutes of us-
age. That’s a big deal.
Third, the low-bandwidth BAW filter business
12
has lower margins than the high-bandwidth
business. Akoustis will be the only player with
single-crystal high-bandwidth BAW filters, which
means that it will be able to charge a premium
for its products. This will result in a much
healthier gross margin, which will eventually
generate healthy free cash flow for the company.
And the Akoustis business model is actually pret-
ty simple.
In 2017, the company strategically acquired a
120,000-square-foot wafer manufacturing fa-
cility in New York to produce its patented BAW
filters.
This move enables Akoustis to consolidate all as-
pects of the manufacturing process, which reduc-
es its design and manufacturing time, improves
manufacturing quality, and increases its ability to
service customers. What’s more, the facility has
the production capacity to support up to $200
million per year in sales, with incremental invest-
ment.
Akoustis’ sales channel is also pretty straightfor-
ward. It generates business opportunities pri-
marily through three channels:
• Reference designs: Akoustis works directly
with mobile baseband semiconductor play-
ers like Qualcomm, MediaTek (Taiwan),
and Intel to design its technology for their
reference designs. Players like Qualcomm
create reference designs to make it easy for
less-sophisticated companies with fewer
in-house engineering resources to design
mobile devices. When Akoustis’ filters are
part of the reference design, it is highly
likely that the mobile device manufacturer
will use its product.
• Radio frequency front-end (RFFE) man-
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 13

ufacturers: Designing the components for

radio frequencies is widely known as an
art form. It requires a lot of fine-tuning. As
a result, many mobile phone manufactur-
ers use an RF module (which includes not
only the BAW filter but also a switch and
an amplifier all used to receive and send
radio frequencies) to simplify the design
process. Companies like Skyworks, Qorvo,
Samsung (Korea), and Murata (Japan) are
well-known for manufacturing these front-
end modules. Akoustis sells its products The market doesn’t realize it yet, but Akoustis
directly to these players. will be a classic exponential growth story where
one year the revenues are nonexistent, the next
• Direct to the manufacturers: Mobile device
they are material but not too significant, and the
manufacturers that have enough in-house
following year… explosive growth.
engineering resources are able to design
their entire products. Akoustis will look Akoustis has demonstrated the ability to execute
to sell directly to these major players like the manufacturing of its BAW filters efficiently, and
Samsung, Apple, and Huawei (China). the company is well-positioned to become a major
player in the multibillion-dollar BAW market.
You can see this relationship between Akoustis,
component manufacturers, and smartphone To give you a feel for how quickly Akoustis could
manufacturers in the graph above. grow its revenues, in 2019, there were about 1.4
billion smartphones shipped globally.
It’s important to note that this is a long sales
cycle. If Akoustis designs its product into a The high-end smartphone market is one of
reference design this year, production will most Akoustis’ major targets for its new technology.
likely not happen until next year. The same is Targeting the high end makes sense. It’s where
true for any designs that it might have with RFFE the manufacturers and their customers will rec-
module manufacturers. Revenue will start to flow ognize the value of the higher performance that
from these strategic wins 9–24 months in the Akoustis’ technology brings.
future.
The high-end market comprises roughly 30%-
Extraordinary Growth Potential 35% of global smartphone shipments. At 30%,
2017 is the year Akoustis went from being a sci- this would represent more than 400 million
entific research entity to a commercial enterprise units shipping in 2019.
with a high-tech portfolio of products.
On average, a high-end smartphone has about
Akoustis now has a suite of BAW filter products 10 BAW filters. I estimate that Akoustis’ average
available, and the company has already an- revenue per phone would be around $3.
nounced multiple large-scale production orders
from major enterprise customers. If I’m right about how disruptive – and valuable

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– Akoustis’ technology will be, I think Akoustis
could capture about 10% of the high-end smart-
phone market share by the end of 2020. This
would result in an annual run rate of $126 mil-
lion in revenue.
Think about that. Akoustis has the potential to
grow from zero revenue in 2016 to more than
$120 million in just four years.
Dominant Intellectual Property
Position
Earlier, I noted that Akoustis was essentially a
scientific research company for its first several
years of operation. And during that time, Akous-
tis quietly amassed a solid patent portfolio for its
new single-crystal BAW filter technology. As of
early 2019, Akoustis already had 29 patents as
well as 54 patents pending approval.
While most of the market failed to notice, Akous-
tis cleverly created a dominant intellectual prop-
erty position in single-crystal BAW filter devices.
Essentially, it controls all of the foundational
intellectual property (IP) for these filters.
But this case is even better… Akoustis is the only
company that holds the foundational IP for sin-
gle-crystal BAW filter devices.
And because of the benefits these BAW filters
will bring to the industry, there will be rapidly
growing demand for Akoustis’ technology.
And there will be only two ways to get it… by
buying the BAW filters from Akoustis or buy-
ing the company outright. That means Akoustis
could become an attractive acquisition target.
Obvious candidates looking to buy Akoustis
would be Qorvo, Broadcom, Qualcomm, Sky-
works, or even a private equity firm that under-
14
stands the value of Akoustis’ IP like I do.
Now’s the Perfect Time to Get In
To say that Akoustis is “under the radar” is an
understatement. If you were to ask 10 of your
friends and colleagues, I’d bet that exactly zero of
them have heard of the company.
The stock wasn’t even listed on the Nasdaq until
March 13, 2016. Prior to that, Akoustis was
trading over-the-counter (OTC), with few shares
trading daily.
And Akoustis has remained off Wall Street’s ra-
dar, even after its up-listing on the Nasdaq… But
that’s quickly changing.
The word is getting out…
And that’s why now is the absolute perfect time
to get into AKTS.
Action to Take: Buy Akoustis (AKTS)
up to $8. For our most up-to-date risk
management, please refer to our online
portfolio here.
Note: If this stock is trading above our
recommended buy price at the time of
reading, my official recommendation is
patience. Technology stocks experience
natural volatility that almost always gives
us a great entry point. I want to make sure
readers invest in the best companies at a
great price.
Regards,
Jeff Brown
Editor, Exponential Tech Investor
www.bonnerandpartners.com
 15

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