| PROSPECTUS
SUPPLEMENT |
Filed
Pursuant to Rule 424(b)(5) |
| (To
Prospectus Dated April 24, 2024) |
Registration
No. 333-278657 |
AMPLITECH
GROUP, INC.
1,425,377
Shares of Common Stock
177,882
Prefunded Warrants to Purchase up to 177,882 Shares of Common Stock
177,882
Shares of Common Stock Underlying the Prefunded Warrants
We
are offering (i) 1,425,377 shares of our common stock, $0.001 par value per share, at an offering price of $0.92 per share and (ii) 177,882
pre-funded warrants (“Prefunded Warrants”) to purchase up to an aggregate of 177,882 shares of our common stock at an offering
price of $0.919 per Prefunded Warrant to purchase one share of common stock directly to institutional investors pursuant to this prospectus
supplement and the accompanying prospectus and a securities purchase agreement, dated as of November 24, 2024 and between the Company
and such institutional investors (the “Securities Purchase Agreement”).
A
holder of Prefunded Warrants will not have the right to exercise any portion of its Prefunded Warrants if the holder, together with its
affiliates and certain related parties, would beneficially own in excess of 4.99% (or, at the holder’s election, 9.99%)
of the number of shares of common stock outstanding immediately after giving effect to such exercise. Each Prefunded Warrant will
be exercisable for one share of common stock at an exercise price of $0.001 per share. Each Prefunded Warrant will be exercisable upon
issuance and will expire when exercised in full. This prospectus supplement also relates to the shares of common stock issuable upon
exercise of the Prefunded Warrants.
There
is no established public trading market for the Prefunded Warrants, and we do not expect a market to develop. In addition, we do not
intend to list the Prefunded Warrants on The Nasdaq Stock Market LLC (“Nasdaq”), any other national securities exchange or
any other nationally recognized trading system. Without an active trading market, the liquidity of such warrants will be limited.
Our
common stock and warrants are listed on the Nasdaq Capital Market and trade under the symbols “AMPG” and “AMPGW”
respectively. The last reported sale price of our Common Stock on the Nasdaq Capital Market on November 22, 2024, was $1.24 per share.
We are a “smaller reporting company” as defined under the federal securities laws and, as such, have elected to comply with
certain reduced reporting requirements for this prospectus supplement and may elect to do so in future filings.
As
of the date of this prospectus supplement, the aggregate market value of our outstanding common stock held by non-affiliates is approximately
$7,595,768.80 which is calculated based on 6,125,620 of our outstanding common stock held by non-affiliates and a price of $1.24 per
share, the closing price of our common stock on November 22, 2024, which is the highest closing sale price of our common stock on Nasdaq
Capital Market within the prior 60 days of this prospectus supplement. During the prior twelve calendar month period that ends on and
includes the date hereof, the Company sold an aggregate of 1,369,488 shares of common stock on September 11, 2024 for gross proceeds
of approximately $1,000,000 pursuant to General Instruction I.B.6 to Form S-3.
Investing
in our securities involves a high degree of risk. Before buying any of our securities, you should carefully read “Risk Factors”
on page S-7 of this prospectus supplement, and under similar headings in the other documents that are incorporated by reference into
this prospectus supplement and the accompanying prospectus.
We
have engaged Maxim Group LLC (“Maxim”) to act as our exclusive placement agent in connection with this offering to use their
reasonable best efforts to place the Shares and the Prefunded Warrants offered by this prospectus supplement. We have agreed to pay the
placement agent the fees set forth in the table below.
| | |
Per Share | | |
Per Prefunded Warrant | | |
Total | |
| Offering Price(1) | |
$ | 0.920 | | |
$ | 0.919 | | |
$ | 1,474,998 | |
| Placement Agent Fees(2) | |
$ | 0.064 | | |
$ | 0.064 | | |
$ | 103,250 | |
| Proceeds, before expenses, to us | |
$ | 0.856 | | |
$ | 0.855 | | |
$ | 1,371,748 | |
| |
(1) |
The
purchase price of the Prefunded Warrants is $0.919 per warrant, or $0.001 less than the per share purchase price of $0.92. |
| |
(2) |
We
have agreed to pay the placement agent a placement agent fee equal to 7.0% of the gross proceeds of this offering. We have agreed
to reimburse the placement agent for certain offering-related expenses up to an aggregate of $30,000. See “Plan of Distribution.” |
Delivery
of the Shares and Prefunded Warrants is expected to be made on or about November 26, 2024, subject to satisfaction of customary closing
conditions. We have not arranged to place the funds from the investors in an escrow, trust or similar account.
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.
Sole Placement Agent
MAXIM GROUP LLC
The
date of this prospectus supplement is November 24, 2024
TABLE OF CONTENTS
ABOUT
THIS PROSPECTUS SUPPLEMENT
On
April 12, 2024, we filed with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-3 (File
No. 333-278657) utilizing a shelf registration process relating to the securities described in this prospectus supplement, which registration
statement was declared effective on April 24, 2024. Under this shelf registration process, we may, from time to time, sell up to $200
million in the aggregate of shares of common stock, shares of preferred stock, warrants, rights, and units.
This
document consists of two parts. The first part is the prospectus supplement, including the documents incorporated by reference herein,
which describes the specific terms of this offering. The second part, the accompanying prospectus, including the documents incorporated
by reference therein, provides more general information. In general, when we refer only to the prospectus, we are referring to both parts
of this document combined. Before you invest, you should carefully read this prospectus supplement, the accompanying prospectus, all
information incorporated by reference herein and therein, as well as the additional information described under the heading “Where
You Can Find More Information.” These documents contain information you should carefully consider when deciding whether to invest
in our securities.
This
prospectus supplement may add, update or change information contained in the accompanying prospectus. To the extent there is a conflict
between the information contained in this prospectus supplement and the accompanying prospectus, you should rely on information contained
in this prospectus supplement, provided that if any statement in, or incorporated by reference into, one of these documents is inconsistent
with a statement in another document having a later date, the statement in the document having the later date modifies or supersedes
the earlier statement. Any statement so modified will be deemed to constitute a part of this prospectus supplement only as so modified,
and any statement so superseded will be deemed not to constitute a part of this prospectus supplement.
You
should rely only on the information contained in this prospectus supplement, the accompanying prospectus, any document incorporated by
reference herein or therein, or any free writing prospectuses we may provide to you in connection with this offering. Neither we nor
the placement agent have authorized anyone to provide you with any different information. We take no responsibility for and can provide
no assurance as to the reliability of, any other information that others may provide to you. The information contained in this prospectus
supplement, the accompanying prospectus, and in the documents incorporated by reference herein or therein is accurate only as of the
date such information is presented. Our business, financial condition, results of operations and prospects may have changed since that
date.
This
prospectus supplement and the accompanying prospectus do not constitute an offer to sell or the solicitation of an offer to buy any securities
other than the Shares and Prefunded Warrants to which it relates, nor does this prospectus supplement and the accompanying prospectus
constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction to any person to whom it is unlawful
to make such offer or solicitation in such jurisdiction.
We
note that the representations, warranties and covenants made by us in any agreement that is filed as an exhibit to any document that
is incorporated by reference herein were made solely for the benefit of the parties to such agreement, including, in some cases, for
the purpose of allocating risk among the parties to such agreement, and should not be deemed to be a representation, warranty or covenant
to you. Moreover, such representations, warranties or covenants were accurate only as of the date when made. Accordingly, such representations,
warranties and covenants should not be relied on as accurately representing the current state of our affairs.
Unless
otherwise expressly indicated or the context otherwise requires, we use the terms “AmpliTech,” the “Company,”
“we,” “us,” “our” or similar references to refer to AmpliTech Group, Inc. together with any subsidiaries.
WHERE
YOU CAN FIND MORE INFORMATION
We
have filed our registration statement on Form S-3 (File No. 333-278657) with the SEC under the Securities Act of 1933, as amended, or
the Securities Act. We also file annual, quarterly and current reports, proxy statements and other information with the SEC. You can
read and copy any document that we file with the SEC, including the registration statement and exhibits to the registration statement,
over the internet at the SEC’s website at www.sec.gov.
We
are subject to the information reporting requirements of the Exchange Act and we are required to file reports, proxy statements and other
information with the SEC. These reports, proxy statements, and other information are available for inspection and copying at the SEC’s
website referred to above. These documents may also be accessed on our web site at www.amplitechinc.com. Information contained on our
web site is not incorporated by reference into this prospectus supplement or the accompanying prospectus and you should not consider
information contained on our web site to be part of this prospectus or the accompanying prospectus. Information contained on or accessible
through our website is not a part of this prospectus, and the inclusion of our website address in this prospectus is an inactive textual
reference only.
This
prospectus supplement and the accompanying prospectus are part of a registration statement filed with the SEC and do not contain all
of the information in the registration statement. The full registration statement may be obtained from the SEC or us as indicated above.
Other documents establishing the terms of the offered securities are filed as exhibits to the registration statement or will be filed
through an amendment to our registration statement on Form S-3 or under cover of a Current Report on Form 8-K and incorporated into this
prospectus supplement by reference.
INFORMATION
WE INCORPORATED BY REFERENCE
The
SEC allows us to “incorporate by reference” into this prospectus supplement and the accompanying prospectus the information
we file with it, which means that we can disclose important information to you by referring you to those documents. The information incorporated
by reference is considered to be part of this prospectus supplement and the accompanying prospectus. Any statement contained herein or
in a document incorporated or deemed to be incorporated by reference into this document will be deemed to be modified or superseded for
purposes of the document to the extent that a statement contained in this document or any other subsequently filed document that is deemed
to be incorporated by reference into this document modifies or supersedes the statement. We incorporate by reference in this prospectus
supplement and the accompanying prospectus the following information (other than, in each case, documents or information deemed to have
been furnished and not filed in accordance with SEC rules):
| |
● |
our
Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (filed with the SEC on April 1, 2024); |
| |
|
|
| |
● |
our
Quarterly Reports on Form 10-Q filed with the SEC on May 28, 2024, August 14, 2024,and November 14, 2024; |
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|
|
| |
● |
our
Current Reports on Form 8-K filed with the SEC on March 26, 2024, May 16, 2024 May 24, 2024, May 30, 2024, August 1, 2024; September 11, 2024 and October 1, 2024; |
| |
|
|
| |
● |
our
Form 8-A12B, filed with the SEC on February 16, 2021; and |
| |
|
|
| |
● |
the
description of the securities of the Company contained in Exhibit 4.4 of our Annual Report on Form 10-K for the year ended December
31, 2020 (filed with the SEC on March 31, 2021). |
All
reports and other documents that we subsequently file with the SEC (excluding any portions of such documents that have been “furnished
to” but not “filed with” the SEC) pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date
of this prospectus supplement and before the later of (1) the completion of the offering of our common stock pursuant to this prospectus
supplement and (2) the date we stop offering our common stock pursuant to this prospectus supplement, will be deemed to be incorporated
by reference into this prospectus supplement and to be part of this prospectus supplement from the date of filing of such reports and
documents. These documents include periodic reports, such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K, as well as proxy statements. We will not, however, incorporate by reference in this prospectus any documents or
portions thereof that are not deemed “filed” with the SEC, including any information furnished pursuant to Item 2.02 or Item
7.01 of our Current Reports on Form 8-K after the date of this prospectus unless, and except to the extent, specified in such Current
Reports.
We
will provide to each person, including any beneficial owner, to whom a prospectus (or a notice of registration in lieu thereof) is delivered
a copy of any of these filings (other than an exhibit to these filings, unless the exhibit is specifically incorporated by reference
as an exhibit to this prospectus) at no cost, upon a request to us by writing or telephoning us at the following address and telephone
number:
AmpliTech Group, Inc.
155 Plant Avenue, Hauppauge, NY 11788
(631) 521-7831
SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This
prospectus supplement, including the documents incorporated by reference herein, may contain or incorporate “forward-looking statements”
within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements discuss matters that are not historical
facts. Because they discuss future events or conditions, forward-looking statements may include words such as “anticipate,”
“believe,” “estimate,” “intend,” “could,” “should,” “would,”
“may,” “seek,” “plan,” “might,” “will,” “expect,” “anticipate,”
“predict,” “project,” “forecast,” “potential,” “continue” negatives thereof
or similar expressions. Forward-looking statements speak only as of the date they are made, are based on various underlying assumptions
and current expectations about the future and are not guarantees. Such statements involve known and unknown risks, uncertainties and
other factors that may cause our actual results, level of activity, performance or achievement to be materially different from the results
of operations or plans expressed or implied by such forward-looking statements.
We
cannot predict all the risks and uncertainties. Accordingly, such information should not be regarded as representations that the results
or conditions described in such statements or that our objectives and plans will be achieved, and we do not assume any responsibility
for the accuracy or completeness of any of these forward-looking statements. These forward-looking statements are found at various places
throughout this prospectus supplement, including the documents incorporated by reference herein, and include information concerning possible
or assumed future results of our operations, including statements about potential acquisition or merger targets; business strategies;
future cash flows; financing plans; plans and objectives of management; any other statements regarding future acquisitions, future cash
needs, future operations, business plans and future financial results, and any other statements that are not historical facts. All written
and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by
the cautionary statements disclosed under “Risk Factors” in this prospectus supplement, as such risk factors may be amended,
supplemented or superseded from time to time by reports we file with the SEC, including subsequent Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K, and in any prospectus supplement. Accordingly, forward-looking statements should
not be relied upon as a predictor of actual results. Readers are urged to carefully review and consider the various disclosures made
in this report and in our other filings with the SEC that attempt to advise interested parties of the risks and factors that may affect
our business. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the
date of this prospectus supplement, except as required by law.
PROSPECTUS
SUPPLEMENT SUMMARY
This
summary contains basic information about us and this offering. Because it is a summary, it does not contain all of the information that
you should consider before deciding to invest in our securities. Before you decide to invest in our securities, you should read this
entire prospectus supplement and the accompanying prospectus carefully, any related free writing prospectus that we have authorized for
use in connection with the offering and the documents incorporated by reference herein, including the information under the heading “Risk
Factors.”
Overview
AmpliTech
Group Inc. (“AMPG,” “AmpliTech” or the “Company”), incorporated in 2010 in the state of Nevada, is
the parent company of AmpliTech, Inc., and the Company’s divisions, Specialty Microwave, Spectrum Semiconductor Materials, AmpliTech
Group MMIC Design Center (“AGMDC”) and AmpliTech Group True G Speed Services (“AGTGSS”).
AmpliTech,
Inc. designs, engineers and assembles micro-wave component-based amplifiers that meet individual customer specifications. Our products
consist of Radio Frequency (“RF”) amplifiers and related subsystems, operating at multiple frequencies from 50kHz to 44GHz,
including low noise amplifiers (“LNA”), medium power amplifiers, cryogenic amplifiers, and custom assembly designs for the
global satellite communications, telecom (5G & IoT), space, defense, and quantum computing markets. We also offer non-recurring engineering
services on a project-by-project basis, for a predetermined fixed contractual amount, or on a time plus material basis. We have both
domestic and international customers in such industries as aerospace, governmental, defense and commercial satellite.
Specialty
Microwave designs and manufactures state-of- the-art precision SATCOM microwave components, RF subsystems and specialized electronic
assemblies for the military and commercial markets, flexible and rugged waveguides, wave guide adapters and more.
On
November 19, 2021, AMPG entered into an Asset Purchase Agreement with Spectrum Semiconductor Materials Inc. (“SSM”), a globally
authorized distributor of integrated circuit (IC) packaging and lids for semiconductor device assembly, prototyping, testing, and production
requirements founded in 1990 and headquartered in San Jose, CA, pursuant to which AMPG acquired substantially all of the assets of the
Company (the Acquisition). The Acquisition was completed on December 15, 2021.
In
2021, the Company opened AGMDC, a monolithic microwave integrated circuits (“MMIC”) chip design center, in Texas and has
started to implement several of its proprietary amplifier designs into MMIC components. MMICs are semiconductor chips used in high-frequency
communications applications. MMICs are widely desired for power amplification solutions to service emerging technologies, such as phased
array antennas and quantum computing. MMICs carry a smaller footprint enabling them to be incorporated into a broader array of systems
while reducing costs. AGMDC designs, develops and manufactures state-of-the-art signal processing components for satellite and 5G communications
networks, defense, space and other commercial applications, allowing the Company to market its products to wider base of customers requiring
high technology in smaller packages.
In
August 2022, we formed our AGTGSS division to enable “true G speeds” to the industry. AGTGSS’ main function will be
to plan and configure 5G radio systems and make them O-RAN compliant. AGTGSS will implement AmpliTech’s low noise amplifier devices
in these systems to promote greater coverage, longer range and faster speeds.
Our
mission is to patent our proprietary IP and trade secrets that were used in small volume niche markets and expand our capabilities through
strategic partnerships, joint ventures, mergers/acquisitions with key industry leaders in the 5G/6G, quantum computing, and cybersecurity
markets. We believe this will enable us to scale up our products and revenue by developing full systems and subsystems with our unique
technology as a core component, which we expect will position us as a global leader in these rapidly emerging technology sectors and
addresses large volume markets as well, such as cellphone handsets, laptops, server networks, and many other applications that improve
everyday quality of life.
The
Company’s research and development initiative to expand its product line of low noise amplifiers to include its new 5G and wireless
infrastructure products, cryogenic amplifiers and MMIC designs is progressing significantly. Our combined engineering and manufacturing
resources are expected to complement the development of new subsystems for satellite, wireless, and 5G infrastructures, as well as advanced
military and commercial markets.
Our Corporate History and Structure
AmpliTech
Group Inc. was incorporated under the laws of the State of Nevada on December 30, 2010. On August 13, 2012, the Company acquired AmpliTech
Inc., by issuing 833,750 shares of the Company’s common stock to the shareholders of AmpliTech Inc. in exchange for 100% of the
outstanding shares of AmpliTech Inc. (the “Share Exchange”). After the Share Exchange, the selling shareholders owned 60,000
shares of the outstanding 893,750 shares of Company common stock, resulting in a change in control. Accordingly, the transaction was
accounted for as a reverse acquisition in which AmpliTech, Inc. was deemed to be the accounting acquirer, and the operations of the Company
were consolidated for accounting purposes. The capital balances have been retroactively adjusted to reflect the reverse acquisition.
AmpliTech
designs, engineers and assembles microwave component based low noise amplifiers (“LNA”) that meet individual customer specifications.
Application of the Company’s proprietary technology results in maximum frequency gain with minimal background noise distortion
as required by each customer. The Company has both domestic and international customers in such industries as aerospace, governmental,
defense and commercial satellite.
On
September 12, 2019, AmpliTech Group Inc. acquired substantially all of the assets of Specialty Microwave Corporation, a privately held
company based in Ronkonkoma, NY. The purchase included all inventory, orders, customers, property and equipment, and goodwill. Following
the closing of the asset purchase, we hired all eight team members of SMW. In connection with the acquisition, the Company began using
the trade name “Specialty Microwave”. The total consideration paid was $1,143,633, consisting of $668,633 in cash and a $475,000
promissory note with an interest rate of 6%.
Specialty
designs and manufactures passive microwave components and related subsystems that meet individual customer specifications for both domestic
and international customers for use in satellite communication ground networks.
On
February 17, 2021, AmpliTech Group Inc.’s common stock and warrants commenced trading on NASDAQ under the symbols “AMPG”
and “AMPGW,” respectively. A reverse split of the outstanding common stock at a 1-for-20 ratio became effective February
17, 2021, as of 12:01 a.m., Eastern Time. All share amounts have been retroactively re-stated to reflect the reverse split.
On
November 19, 2021, AmpliTech Group, Inc. entered into an Asset Purchase Agreement with SSM, pursuant to which AmpliTech would acquire
substantially all of the assets of SSM. SSM, located in Silicon Valley (San Jose, CA), was a global authorized distributor of IC packaging
and lids for semiconductor device assembly, prototyping, testing, and production requirements. The aggregate purchase price for the acquisition
was $10,123,276, subject to certain working capital and other adjustments. $665,200 of the aggregate purchase price was paid by the issuance
of 188,442 unregistered shares of AmpliTech common stock at the closing of the acquisition. The acquisition was completed on December
15, 2021.
In
2021, the Company opened a MMIC chip design center in Texas and has started to implement several of its proprietary amplifier designs
into MMIC components. MMICs are semiconductor chips used in high-frequency communications applications. MMICs are widely desired for
power amplification solutions to service emerging technologies, such as phased array antennas and quantum computing. MMICs carry a smaller
footprint enabling them to be incorporated into a broader array of systems while reducing costs. AGMDC designs, develops and manufactures
state-of-the-art signal processing components for satellite and 5G communications networks, defense, space and other commercial applications,
allowing the Company to market its products to a wider base of customers requiring high technology in smaller packages.
In
August 2022, our AGTGSS division was founded to serve and provide complete system integration and ORAN compliant O-RU’s (Radio
Units) for telcos, enabling the industry to access ‘True 5G Speeds’. AGTGSS provides Managed Services, Cyber Security, Cloud
Services, Data Sciences and Telco Cloud Services. AGTGSS will also be providing full installation of Private 5G Networks (P5G) which
includes the deployment of AmpliTech Group developed radio units. AGTGSS will implement AmpliTech’s low noise amplifier devices
in these systems to promote greater coverage, longer range and faster speeds.
Recent
Events
On
September 11, 2024, we completed an offering of 1,369,488 shares of common stock at an offering price of $0.7302 per share raising in
the aggregate $1,000,000 before expenses with a single institutional investor.
Implications
of Being a Smaller Reporting Company
We
are a “smaller reporting company” meaning that the market value of our common stock held by non-affiliates is less than $250.0
million measured on the last business day of our most recent second fiscal quarter or our annual revenue is less than $100.0 million
during the most recent completed fiscal year and the market value of our common stock held by non-affiliates is less than $700.0 million
measured on the last business day of our most recent second fiscal quarter. Accordingly, we may provide less public disclosure than larger
public companies, including the inclusion of only two years of audited financial statements and only two years of management’s
discussion and analysis of financial condition and results of operations disclosure. As a result, the information that we provide to
our stockholders may be different than you might receive from other public reporting companies in which you hold equity interests.
THE OFFERING
| Common
Stock offered by us |
|
1,425,377
shares |
| |
|
|
Offering
price per share of common stock and per Prefunded Warrant |
|
$0.92 |
| |
|
|
| Prefunded
Warrants offered by us |
|
Prefunded
Warrants to purchase up to 177,882 shares of common stock. Each Prefunded Warrant will be exercisable for one share of our common
stock. The purchase price of each Prefunded Warrant equals the price per share at which the shares of common stock are being sold
in this offering, minus $0.001, the exercise price per share of each Prefunded Warrant. This prospectus supplement also relates to
the shares of common stock issuable upon exercise of any Prefunded Warrants sold in this offering. The exercise price and number
of shares of common stock issuable upon exercise will be subject to certain further adjustments as described herein. See “Description
of Securities We Are Offering” on page S-10. |
| |
|
|
| Common
stock outstanding immediately before offering |
|
11,094,101
shares of common stock(1) |
| |
|
|
| Common
stock outstanding immediately after offering |
|
12,697,360(1)
shares assuming all of the Prefunded Warrants issued in this offering are exercised. |
| |
|
|
| Use
of Proceeds |
|
We
currently intend to use the net proceeds from this offering for working capital and general corporate purposes including, but not
limited to, research and development; engineering, operations, quality inspection, information technology and sales force expansion;
marketing and sales and working capital. We may also apply a portion of the net proceeds to the reduction of indebtedness. See ‘‘Use
of Proceeds’’ on page S-9 of this prospectus supplement. |
| |
|
|
| Risk
Factors |
|
Investing
in our securities involves a high degree of risk. See “Risk Factors” beginning on page S-7 of this prospectus supplement
for a discussion of factors you should consider carefully when making an investment decision. |
| |
|
|
| Exchange
Listing |
|
Our
common stock is traded on Nasdaq Capital Market under the symbol “AMPG.” We do not intend to apply for listing of the
Prefunded Warrants on Nasdaq or any other securities exchange or nationally recognized trading system. |
| |
|
|
| Transfer
Agent |
|
The
transfer agent and registrar for our common stock is VStock Transfer LLC. |
| (1) |
The
number of shares of common stock that will be outstanding after this offering as shown above is based on 11,094,101 shares of common
stock outstanding as of November 22, 2024 and assumes the sale of all the shares of common stock and exercise of all the Prefunded
Warrants being offered pursuant to this prospectus supplement, and excludes the following: |
| |
● |
1,284,858
shares of common stock issuable upon exercise
of stock options granted under the Equity Plan, at a weighted-average exercise price of $2.30, which are outstanding as of November
22, 2024 and subject to vesting; |
| |
● |
2,500
shares of common stock granted under the Equity Plan pursuant to the restricted stock award outstanding as of November 22, 2024 and
subject to vesting; |
| |
● |
3,296,942
shares of common stock issuable upon the exercise of the warrants outstanding as of November 22, 2024, at an exercise price of $7.83
per share |
Unless
otherwise indicated, all information in this prospectus supplement assumes no exercise of the outstanding options or warrants described
above.
RISK FACTORS
Investing
in our securities involves a high degree of risk. You should carefully consider the risks described below and all of the information
contained or incorporated by reference in this prospectus supplement, including the risk factors described in our Annual Report on Form
10-K for the year ended December 31, 2023, any subsequent Quarterly Reports on Form 10-Q, and all other information contained or incorporated
by reference into this prospectus supplement and the accompanying prospectus before deciding whether to purchase the securities offered
hereby. Our business, financial condition, results of operations and prospects could be materially and adversely affected by these risks.
Risks
Related to This Offering
Our
management will have broad discretion over the use of the net proceeds from this offering, you may not agree with how we use the proceeds,
and the proceeds may not be invested successfully.
Our
management will have broad discretion as to the use of the net proceeds from this offering and could use them for purposes other than
those contemplated at the time of commencement of this offering. Accordingly, you will be relying on the judgment of our management regarding
the use of these net proceeds, and you will not have the opportunity, as part of your investment decision, to assess whether the proceeds
are being used appropriately. It is possible that, pending their use, we may invest the net proceeds in a way that does not yield a favorable,
or any, return for us. The failure of our management to use such funds effectively could have a material adverse effect on our business,
financial condition, operating results and cash flows.
There
is no public market for the Prefunded Warrants being offered by us in this offering.
There
is no established public trading market for the Prefunded Warrants being sold in this offering, and we do not expect a market to develop.
In addition, we do not intend to apply to list the Prefunded Warrants on any securities exchange or recognized trading system. Without
an active market, the liquidity of the Prefunded Warrants will be limited.
Holders
of the Prefunded Warrants will have no rights as common stockholders until they acquire our common stock.
Until
you acquire shares of our common stock upon exercise of the Prefunded Warrants, you will have no rights with respect to our common stock
issuable upon exercise of the Prefunded Warrants, including the right to receive dividend payments, vote or respond to tender offers.
Upon exercise of your Prefunded Warrants, you will be entitled to exercise the rights of a common stockholder only as to matters for
which the record date occurs after the exercise date.
You
may experience future dilution as a result of future equity offerings and other issuances of our common stock or other securities. In
addition, this offering and future equity offerings and other issuances of our common stock or other securities may adversely affect
our common stock price.
In
order to raise additional capital, we may in the future offer additional shares of our common stock or other securities convertible into
or exchangeable for our common stock at prices that may not be the same as the price per share in this offering. We may not be able to
sell shares or other securities in any other offering at a price per share that is equal to or greater than the price per share paid
by the investors in this offering, and investors purchasing shares or other securities in the future could have rights superior to existing
stockholders. The price per share at which we sell additional shares of our common stock or securities convertible into common stock
in future transactions may be higher or lower than the price per Share and price per Prefunded Warrant in this offering. You will incur
dilution upon exercise of any outstanding stock options, warrants or upon the issuance of shares of common stock under our stock incentive
programs. In addition, the sale of Shares and Prefunded Warrants in this offering and any future sales of a substantial number of shares
of our common stock in the public market, or the perception that such sales may occur, could adversely affect the price of our common
stock. We cannot predict the effect, if any, that market sales of those shares of common stock or the availability of those shares for
sale will have on the market price of our common stock.
We
currently do not comply with the minimum bid price requirement under the Nasdaq Listing Rules, if we fail to comply with The Nasdaq Capital
Market continued listing requirements, our Common Stock may be delisted.
On
September 27, 2024, the Company received a notice (the “Notice”) from The NASDAQ Stock Market LLC indicating that the Company
is not in compliance with the minimum bid price requirement of $1.00 per share under the Nasdaq Listing Rules (the “Listing Rules”).
Based on the closing bid price of the Company’s listed securities for the last 30 consecutive business days from August 15, 2024
to September 26, 2024, the Company no longer meets the minimum bid price requirement set forth in Listing Rules 5550(a)(2). The Notice
is only a notification of deficiency and has no current effect on the listing or trading of the Company’s securities on The Nasdaq
Capital Market. The Notice states that under the Listing Rules 5810(c)(3)(A), the Company is provided with a compliance period of 180
calendar days, or until March 26, 2025, to regain compliance under the Listing Rules. To regain compliance under the Listing Rules, the
Company’s common stock must be at least $1.00 for a minimum of ten consecutive business days. In the event the Company does not
regain compliance by March 26, 2025, the Company may be eligible for additional time to regain compliance or may face delisting. The
Company intends to monitor the closing bid price of its common stock between now and March 26, 2025, and to evaluate its available options
to regain compliance within the compliance period.
The
listing of our Common Stock on The Nasdaq Capital Market is contingent upon our compliance with The Nasdaq Capital Market’s conditions
for continued listing. If we fail to meet any Nasdaq listing requirements, including the minimum bid price, and do not regain compliance,
we may be subject to delisting by Nasdaq. In the event our common stock is no longer listed for trading on Nasdaq, our trading volume
and share price may decrease and you may have a difficult time selling your shares of common stock. In addition, we may experience difficulties
in raising capital which could materially adversely affect our operations and financial results. Further, delisting from Nasdaq markets
could also have other negative effects, including potential loss of confidence by partners, lenders, suppliers and employees. Finally,
delisting could make it harder for you and the Company to sell the securities and hard for us to raise capital.
We
have material weaknesses in our internal accounting control over financial reporting.
Our
management has identified material weaknesses in our internal control over financial reporting related to lack of segregation of duties
resulting from our limited personnel and ineffective control over financial statement disclosure as controls were not designed and in
place to ensure that all disclosures required were originally addressed in our financial statements and has concluded that, due to such
material weaknesses, our disclosure controls and procedures were not effective as of December 31, 2023.
In
addition, during the three months ended March 31, 2024, we made several transactions in digital currency in the total amount of approximately
$3.25 million (the “Digital Currency Investment”) which was fraudulently induced. As a result, we identified further additional
material weaknesses regarding our internal controls over financial reporting including, but not limited to, the lack of segregation of
duties involved in the execution and approvals of wire transfers for material investments in digital assets.
We
have identified certain steps necessary to address the material weaknesses, and in the first and second quarter of 2024, we continued
to implement the remedial procedures. However, if not remediated, or if we identify further material weaknesses in our internal controls,
our failure to establish and maintain effective disclosure controls and procedures and internal control over financial reporting could
result in material misstatements in our financial statements and a failure to meet our reporting and financial obligations, each of which
could have a material adverse effect on our financial condition and the trading price of our common stock.
On
October 31, 2024, the Company received a shareholder letter demanding that the Company’s Board take action against certain and/or
former officers and directors of the Company asserting violations of fiduciary duties of good faith, loyalty and due care, and/or the
aiding and abetting of such breaches of fiduciary duty in connection with the Digital Currency Investment. We have established a Board
committee to review this letter and to prepare a response thereto. In addition, as previously discussed, the Company’s Board has
taken steps and adopted procedures in response to the material weakness related to the Digital Currency Investment.
USE OF PROCEEDS
We
estimate that the net proceeds from of sale of the Shares and Prefunded Warrants in this offering will be approximately $1,281,748, after
deducting the placement agent’s fees and the estimated offering expenses payable by us.
The
precise amount and timing of the application of such net proceeds will depend upon our funding requirements and the availability and
cost of other funds. Our board of directors and management will have considerable discretion in the application of the net proceeds from
this offering, and it is possible that we may allocate the proceeds differently than investors in the offering may desire or that we
may fail to maximize the return on these proceeds. You will be relying on the judgment of our management with regard to the use of proceeds
from this offering, and you will not have the opportunity, as part of your investment decision, to assess whether the proceeds are being
used appropriately.
We
currently intend to use the net proceeds from this offering for working capital and general corporate purposes including, but not limited
to, research and development; engineering, operations, quality inspection, information technology and sales force expansion; marketing
and sales and working capital. In addition, we may use part of the proceeds to reduce our loan with Altbang Lending II, LLC. The
loan with Altbang Lending was entered into on July 23, 2024 in the original amount of $1,300,000 including an origination fee of $26,000.
The loan is payable within 76 weeks through 38 bi-weekly payments of $44,816 and bears an annual interest rate of 21.2%.
DIVIDEND
POLICY
We
have never declared or paid dividends on our common stock. We do not anticipate paying any dividends on our common stock in the foreseeable
future. We currently intend to retain all available funds and any future earnings to fund the development and growth of our business.
Any future determination to declare dividends will be subject to the discretion of our Board of Directors and will depend on various
factors, including applicable laws, our results of operations, financial condition, future prospects and any other factors deemed relevant
by our Board of Directors.
DESCRIPTION
OF SECURITIES WE ARE OFFERING
Common Stock
We
are offering 1,425,377 shares of our common stock in this offering pursuant to this prospectus supplement and the accompanying
prospectus. As of November 22, 2024, there were 11,094,101 of common stock issued and outstanding, held by 45 stockholders of record.
Not reflected in the number of stockholders of record are persons who beneficially own shares of common stock held in nominee or street
name. See “Descriptions of Capital Stock” beginning on page 6 in the accompanying prospectus for more information regarding
our shares of common stock.
Prefunded Warrants
We
are also offering 177,882 Prefunded Warrants to purchase up to 177,882 shares of our common stock in this offering. The
following summary of certain terms and provisions of the Prefunded Warrants that are being offered hereby is not complete and is subject
to, and qualified in its entirety by, the provisions of the Prefunded Warrants, the form of which will be filed as an exhibit to a Current
Report on Form 8-K in connection with this offering and incorporated by reference into the registration statement of which this prospectus
supplement forms a part. Prospective investors should carefully review the terms and provisions of the form of Prefunded Warrant for
a complete description of the terms and conditions of the Prefunded Warrants.
Duration
and Exercise Price
Each
Prefunded Warrant offered hereby has an initial exercise price per share equal to $0.001. The Prefunded Warrants are immediately exercisable
and will expire when exercised in full. The exercise price and number of shares of common stock issuable upon exercise is subject to
appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting our common stock and
the exercise price.
Exercisability
The
Prefunded Warrants will be exercisable, at the option of the holder, in whole or in part, by delivering to us a duly executed exercise
notice accompanied by payment in full for the number of shares of our common stock purchased upon such exercise (except in the case of
a cashless exercise as discussed below). The holder (together with its affiliates) may not exercise any portion of such holder’s
Prefunded Warrant to the extent that the holder would own more than 4.99% (or at the election of the holder, 9.99%) of the outstanding
shares of common stock immediately after exercise, except that upon at least 61 days’ prior notice from the holder to us, the holder
may increase the amount of ownership of outstanding shares of common stock after exercising the holder’s Prefunded Warrant up to
9.99% of the number of shares of common stock outstanding immediately after giving effect to the exercise, as such percentage ownership
is determined in accordance with the terms of the Prefunded Warrant. No fractional shares of common stock will be issued in connection
with the exercise of a Prefunded Warrant. In lieu of fractional shares, we will either pay the holder an amount in cash equal to the
fractional amount multiplied by the exercise price or round up to the next whole share.
Cashless
Exercise
In
lieu of making the cash payment otherwise contemplated to be made to us upon such exercise in payment of the aggregate exercise price,
the holder may elect instead to receive upon such exercise (either in whole or in part) the net number of shares of common stock determined
according to a formula set forth in the Prefunded Warrants.
Fundamental Transactions
In
the event of any fundamental transaction, as described in the Prefunded Warrants and generally including any merger with or into another
entity, sale of all or substantially all of our assets, tender offer or exchange offer, or reclassification of our shares of common stock,
then upon any subsequent exercise of a Prefunded Warrant, the holder will have the right to receive as alternative consideration, for
each share of common stock that would have been issuable upon such exercise immediately prior to the occurrence of such fundamental transaction,
the number of shares of common stock of the successor or acquiring corporation or of our Company, if it is the surviving corporation,
and any additional consideration receivable upon or as a result of such transaction by a holder of the number of shares of common stock
for which the Prefunded Warrant is exercisable immediately prior to such event.
Transferability
Subject
to applicable laws, a Prefunded Warrant may be transferred at the option of the holder upon surrender of the Prefunded Warrant to us
together with the appropriate instruments of transfer and payment of funds sufficient to pay any transfer taxes (if applicable).
Exchange Listing
There
is no established trading market for the Prefunded Warrants. We do not intend to list the Prefunded Warrants on any securities exchange
or nationally recognized trading system.
Right as a Stockholder
Except
as otherwise provided in the Prefunded Warrants or by virtue of such holder’s ownership of shares of our common stock, a holder
of the Prefunded Warrants does not have the rights or privileges of holders of our common stock, including any voting rights, until such
Prefunded Warrants holder exercises his or her Prefunded Warrants.
CAPITALIZATION
The
following table sets forth our capitalization as of September 30, 2024:
| |
● |
on
an actual basis, as derived from our unaudited condensed consolidated financial statements as of September 30, 2024, which are incorporated
by reference into this prospectus supplement; and |
| |
|
|
| |
● |
on
an as-adjusted basis to reflect the issuance and sale of (i) 1,425,377 shares of common stock in this offering, at an offering price
of $0.92 per share and (ii) Prefunded Warrants to purchase 177,882 shares of our common stock in this offering, at an offering price
of $0.919 per Prefunded Warrant (assuming the exercise of the Prefunded Warrants), after deducting placement agent fees and estimated
offering expenses payable by us. |
You
should read this table together with our consolidated financial statements and notes included in the information incorporated by reference
into this prospectus supplement and the accompanying prospectus.
| | |
As of September 30, 2024 | |
| | |
Actual $ | | |
As-Adjusted $ | |
| | |
| |
| Shareholders’ Equity: | |
| | | |
| | |
| Common Stock (500,000,000 shares authorized, 11,091,601 shares issued outstanding, and 12,697,360 shares outstanding on an as-adjusted basis) | |
$ | 11,092 | | |
$ | 12,695 | |
| Additional paid-in capital | |
| 37,556,381 | | |
| 38,836,526 | |
| Accumulated deficit | |
| (17,190,841 | ) | |
| (17,190,841 | ) |
| Total Shareholders’ Equity | |
| 20,376,632 | | |
| 21,658,380 | |
| Total Capitalization | |
$ | 27,546,349 | | |
$ | 28,828,097 | |
The
foregoing table is based on 11,091,601 shares of common stock outstanding as of September 30, 2024 and excludes the following:
| |
● |
1,284,858
shares of common stock issuable upon exercise of stock options granted under the Equity Plan, at a weighted-average exercise price
of $2.30, which are outstanding as of September 30, 2024 and subject to vesting; |
| |
● |
5,000
shares of common stock underlying restricted stock units granted under the Equity Plan, which are outstanding as of September 30,
2024 and subject to vesting; and |
| |
● |
3,296,942
shares of common stock issuable upon the exercise of the warrants outstanding as of September 30, 2024 at an exercise price of $7.83
per share. |
Unless
otherwise indicated, all information in this prospectus supplement assumes no exercise of the outstanding options or warrants, or vesting
of restricted stock units described above.
DILUTION
Our
net tangible book value on September 30, 2024 was approximately $12,808,124 or $1.1548 per share. “Net tangible book
value” is total assets minus the sum of liabilities and intangible assets. “Net tangible book value per share” is net
tangible book value divided by the total number of shares of our outstanding common stock.
After
giving effect to the sale of (i) 1,425,377 shares of common stock in this offering, at an offering price of $0.92 per share and (ii)
Prefunded Warrants to purchase 177,882 shares of our common stock in this offering , at an offering price of $0.919 per Prefunded Warrant
(assuming the exercise of all the Prefunded Warrants), and after deducting the placement agent fees and estimated offering expenses
payable by us in connection with this offering, our as-adjusted net tangible book value as of September 30, 2024 would have been approximately
$14,089,872, or $1.1099 per share. This represents an immediate decrease in net tangible book value of $0.0449 per share
to our existing shareholders and an immediate accretion of $0.1899 per share to the investors participating in this offering.
The
following table illustrated this per-share dilution of our common stock:
| Offering price per share | |
$ | 0.92 | |
| Net tangible book value per share as of September 30, 2024 | |
$ | 1.1548 | |
| Decrease per share attributable to existing investors under this prospectus supplement | |
$ | (0.0449 | ) |
| As-adjusted net tangible book value per share after this offering | |
$ | 1.1099 | |
| Accretion per share to new investors in this offering | |
$ | 0.1899 | |
The
foregoing table is based on 11,091,601 shares of common stock outstanding as of September 30, 2024 and excludes the following:
| |
● |
1,284,858
shares of common stock issuable upon exercise of stock options granted under the Equity Plan, at a weighted-average exercise price
of $2.30, which are outstanding as of September 30, 2024 and subject to vesting; |
| |
● |
5,000
shares of common stock underlying restricted stock units granted under the Equity Plan, which are outstanding as of September 30,
2024 and subject to vesting; and |
| |
● |
3,296,942
shares of common stock issuable upon the exercise of the warrants outstanding as of September 30, 2024 at an exercise price of $7.83
per share. |
To
the extent that any of the above outstanding options or warrants are exercised, restricted stock units vest, or we issue additional shares
under our equity incentive plans, there will be further dilution to new investors. In addition, we may choose to raise additional capital
due to market conditions or strategic considerations even if we believe we have sufficient funds for our current or future operating
plans. To the extent that additional capital is raised through the sale of equity or convertible debt securities, the issuance of these
securities could result in further dilution to our shareholders.
PLAN
OF DISTRIBUTION
Maxim
Group LLC (the “placement agent” or “Maxim”) has agreed to act as the exclusive placement agent in connection
with this offering, subject to the terms and conditions of a placement agency agreement (the “Placement Agency Agreement”),
dated November 24, 2024, by and between us and Maxim. The placement agent is not purchasing or selling the Shares and Prefunded Warrants
offered by this prospectus supplement, nor is the placement agent required to arrange the purchase or sale of any specific number or
dollar amount of Shares or Prefunded Warrants, but has agreed to use its reasonable best efforts to arrange for the sale of all of the
Shares and Prefunded Warrants offered hereby. We have entered into securities purchase agreements (the “Securities Purchase
Agreements”) with institutional investors, pursuant to which we will sell to the investors an aggregate of 1,425,377
shares of common stock and Prefunded Warrants to purchase up to 177,882 shares of common stock in this takedown from our shelf
registration statement. We have negotiated the price for the securities offered in this offering with the investor. The factors considered
in determining the price included the recent market price of the shares of common stock, the general condition of the securities market
at the time of this offering, the history of, and the prospects, for the industry in which we compete, our past and present operations,
and our prospects for future revenue.
We
entered into the Securities Purchase Agreements directly with the investors on November 24, 2024, and we will only sell to investors
who have entered into a Securities Purchase Agreement.
We
expect to deliver the shares of common stock and the Prefunded Warrants being offered pursuant to this prospectus supplement on or about
November 26, 2024, subject to customary closing conditions.
We
have agreed to pay the placement agent a placement agent fee equal to 7.0% of the gross proceeds of this offering. We have also agreed
to reimburse the placement agent up to $30,000 in accountable expenses, including the placement agent’s legal counsel’s fees.
The
following table shows per share and total placement agent fees we will pay to the placement agent in connection with the sale of the
shares of common stock pursuant to this prospectus supplement and the accompanying prospectus, assuming the purchase of all of the shares
of common stock offered hereby:
| | |
Per Share | | |
Per Prefunded Warrant | | |
Total | |
| Offering Price | |
$ | 0.920 | | |
$ | 0.919 | | |
$ | 1,474,998 | |
| Placement Agent Fees | |
$ | 0.064 | | |
$ | 0.064 | | |
$ | 103,250 | |
| Proceeds, before expenses, to us | |
$ | 0.856 | | |
$ | 0.855 | | |
$ | 1,371,748 | |
After
deducting certain fees and expenses due to the placement agent and our estimated offering expenses, we expect the net proceeds from this
offering to be approximately$1,281,748.
Lock-Up Agreements
Our
directors, and executive officers have agreed for a period of 45 days, after the date of the closing of the offering, subject to certain
exceptions, not to directly or indirectly offer, sell, or otherwise transfer or dispose of, directly or indirectly, any common stock
of the Company or any securities convertible into or exercisable or exchangeable for common stock of the Company.
Securities
Issuance Standstill
We
have agreed, for a period of 45 days after the closing of this offering, that neither our Company nor any of our subsidiaries will issue,
enter into any agreement to issue, or announce the issuance or proposed issuance of any common stock or common stock equivalents or file
any registration statement, or amendment or supplement thereto, with the SEC, other than a prospectus filed with the SEC pursuant to
Rule 424(b) in connection with this offering or filing a registration statement on Form S-8 in connection with any employee benefit plan,
subject to certain exceptions in the Securities Purchase Agreement and Placement Agency Agreement.
In
addition, we have also agreed not to enter into any “variable rate transactions,” as described in the Securities Purchase
Agreement, for 45 days following the closing of this offering.
Right
of First Refusal
Pursuant
to the terms of the Placement Agency Agreement dated September 9, 2024, for a period of 9 months from the closing of a registered direct
offering on September 11, 2024, we previously granted Maxim the right of first refusal to act as sole managing underwriter and sole book
runner, sole placement agent, or sole sales agent, for any and all future public or private equity, equity-linked, or debt (excluding
commercial bank debt) offerings of our Company or any successor to or any subsidiary of our Company for which we retain the service of
an underwriter, agent, advisor, finder, or other person or entity in connection with such offering during such 9 month period (the
“Right of First Refusal”). We have agreed not to offer to retain any entity or person in connection with any such offering
on terms more favorable than terms on which we offer to retain the placement agent.
Tail
Fee
Upon
consummation of this offering, we agreed to pay to the placement agent a tail fee equal to 7.0% the aggregate gross proceeds raised from
any investor who was contacted or introduced by the placement agent in connection with this offering in any other financing of equity
or equity-linked capital-raising activity during the 9 month period following the completion of this offering.
Indemnification
We
have agreed to indemnify the placement agent and specified other persons against certain civil liabilities and to reimburse the placement
agent related fees and expenses that may be incurred by the placement agent in investigating, preparing, pursuing, or defending actions
related to such civil liabilities.
The
placement agent may be deemed to be an underwriter within the meaning of Section 2(a)(11) of the Securities Act, and any commissions
received by it, and any profit realized on the resale of the shares of common stock sold by it while acting as principal, might be deemed
to be underwriting discounts or commissions under the Securities Act. As an underwriter, the placement agent would be required to comply
with the Securities Act and the Exchange Act, including without limitation, Rule 10b-5 and Regulation M under the Exchange Act. These
rules and regulations may limit the timing of purchases and sales of common stock by the placement agent acting as principal. Under these
rules and regulations, the placement agent:
| |
● |
may
not engage in any stabilization activity in connection with our securities; and |
| |
● |
may
not bid for or purchase any of our securities, or attempt to induce any person to purchase any of our securities, other than as permitted
under the Exchange Act, until it has completed its participation in the distribution in the securities offered by this prospectus
supplement. |
Other
Relationships
Pursuant
to the terms of the Placement Agency Agreement dated September 9, 2024, for a period of 9 months from the closing of a registered direct
offering on September 11, 2024 for the sale of 1,369,488 shares of common stock (“September Offering”), we previously granted
Maxim the Rights of First Refusal as disclosed above. In connection with the September Offering, Maxim acted as our placement agent.
The
placement agent and certain of its affiliates are full service financial institutions engaged in various activities, which may include
securities trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment,
hedging, financing, and brokerage activities. The placement agent and certain of its affiliates may, in the future, perform various commercial
and investment banking and financial advisory services for us and our affiliates, for which they would receive customary fees and expenses.
In
the ordinary course of their various business activities, the placement agent and certain of its affiliates may make or hold a broad
array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including
bank loans) for their own account and the accounts of their customers, and such investment and securities activities may involve securities
and/or instruments issued by us and our affiliates. The placement agent and certain of its respective affiliates may also communicate
independent investment recommendations, market color, or trading ideas and/or publish or express independent research views in respect
of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long and/or short positions in
such securities and instruments.
LEGAL
MATTERS
Certain
legal matters in connection with this offering and the validity of the securities offered by this prospectus supplement will be passed
upon for us by Lewis Brisbois Bisgaard & Smith LLP, San Francisco, California. Sullivan & Worcester, LLP, New York, New York
is acting as counsel to placement agent in connection with this offering.
EXPERTS
Our
financial statements as of December 31, 2023 and December 31, 2022 have been included in reliance on the report of Sadler, Gibb &
Associates, LLC, an independent registered public accounting firm, as stated in its report incorporated by reference herein, and have
been so incorporated in reliance upon such report and upon the authority of such firm as experts in accounting and auditing.
PROSPECTUS
AMPLITECH GROUP, INC.
$200,000,000
Common Stock
Preferred Stock
Warrants
Rights
Units
From
time to time, we may offer and sell up to $200,000,000 in aggregate of the securities described in this prospectus separately or together
in any combination, in one or more classes or series, in amounts, at prices and on terms that we will determine at the time of the offering.
This
prospectus provides a general description of the securities we may offer. We may provide specific terms of securities to be offered in
one or more supplements to this prospectus. We may also provide a specific plan of distribution for any securities to be offered in a
prospectus supplement. Prospectus supplements may also add, update or change information in this prospectus. You should carefully read
this prospectus and the applicable prospectus supplement, together with any documents incorporated by reference herein, before you invest
in our securities.
Our
common stock and warrants are listed on the Nasdaq Capital Market and trade under the symbols “AMPG” and “AMPGW”
respectively. Each prospectus supplement will indicate if the securities to be offered thereby will be listed on any securities exchange.
The
aggregate market value of our outstanding common stock held by non-affiliates is $16,476,289 based on 9,717,113 shares of outstanding
common stock, of which 6,780,366 shares are held by non-affiliates, and a per share price of $2.43 which was the closing sale price of
our common stock as quoted on the Nasdaq Capital Market on April 8, 2024. During the 12-calendar month period that ends on, and includes,
the date of this prospectus, we have not offered and sold any of our securities pursuant to General Instruction I.B.6 of Form S-3.
Investing
in any of our securities involves a high degree of risk. Please read carefully the section entitled “Risk Factors” on page
7 of this prospectus, the “Risk Factors” section contained in the applicable prospectus supplement and the information included
and incorporated by reference in 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 April 24, 2024
TABLE OF CONTENTS
ABOUT
THIS PROSPECTUS
This
prospectus is part of a registration statement on Form S-3 that we filed with the Securities and Exchange Commission, or the SEC, using
a “shelf” registration or continuous offering process. Under this shelf registration process, we may, from time to time,
sell any combination of the securities described in this prospectus in one or more offerings up to a total aggregate offering price of
$200,000,000.
This
prospectus provides a general description of the securities we may offer. We may provide specific terms of securities to be offered in
one or more supplements to this prospectus. We may also provide a specific plan of distribution for any securities to be offered in a
prospectus supplement. Prospectus supplements may also add, update or change information in this prospectus. If the information varies
between this prospectus and the accompanying prospectus supplement, you should rely on the information in the accompanying prospectus
supplement.
Before
purchasing any securities, you should carefully read both this prospectus and any prospectus supplement, together with the additional
information described under the heading “Information We Incorporate by Reference.” You should rely only on the information
contained or incorporated by reference in this prospectus, any prospectus supplement and any free writing prospectus prepared by or on
behalf of us or to which we have referred you. Neither we nor any underwriters have authorized any other person to provide you with different
information. 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. You should assume that the
information contained in this prospectus, any prospectus supplement or any free writing prospectus is accurate only as of the date on
its respective cover, and that any information incorporated by reference is accurate only as of the date of the document incorporated
by reference, unless we indicate otherwise. Our business, financial condition, results of operations and prospects may have changed since
those dates. This prospectus contains summaries of certain provisions contained in some of the documents described herein, but reference
is made to the actual documents for complete information. All of the summaries are qualified in their entirety by the actual documents.
Copies of some of the documents referred to herein have been filed, will be filed or will be incorporated by reference as exhibits to
the registration statement of which this prospectus is a part, and you may obtain copies of those documents as described below under
the heading “Where You Can Find More Information.”
This
prospectus and any applicable prospectus supplement do not constitute an offer to sell or the solicitation of an offer to buy any securities
other than the registered securities to which they relate. We are not making offers to sell common stock or any other securities described
in this prospectus in any jurisdiction in which an offer or solicitation is not authorized or in which we are not qualified to do so
or to anyone to whom it is unlawful to make an offer or solicitation.
Unless
otherwise expressly indicated or the context otherwise requires, we use the terms “AmpliTech,” the “Company,”
“we,” “us,” “our” or similar references to refer to AmpliTech Group, Inc. together with any subsidiaries.
WHERE
YOU CAN FIND MORE INFORMATION
We
have filed our registration statement on Form S-3 with the SEC under the Securities Act of 1933, as amended, or the Securities Act. We
also file annual, quarterly and current reports, proxy statements and other information with the SEC. You may read and copy any document
that we file with the SEC, including the registration statement and the exhibits to the registration statement, at the SEC’s Public
Reference Room located at 100 F Street, N.E., Washington D.C. 20549. You may obtain further information on the operation of the Public
Reference Room by calling the SEC at 1-800-SEC-0330. Our SEC filings are also available to the public at the SEC’s web site at
www.sec.gov. These documents may also be accessed on our web site at www.amplitechinc.com. Information contained on our web site is not
incorporated by reference into this prospectus and you should not consider information contained on our web site to be part of this prospectus.
This
prospectus and any prospectus supplement are part of a registration statement filed with the SEC and do not contain all of the information
in the registration statement. The full registration statement may be obtained from the SEC or us as indicated above. Other documents
establishing the terms of the offered securities are filed as exhibits to the registration statement or will be filed through an amendment
to our registration statement on Form S-3 or under cover of a Current Report on Form 8-K and incorporated into this prospectus by reference.
INFORMATION
WE INCORPORATED BY REFERENCE
The
SEC allows us to “incorporate by reference” into this prospectus the information we file with it, which means that we can
disclose important information to you by referring you to those documents. The information incorporated by reference is considered to
be part of this prospectus. Any statement contained herein or in a document incorporated or deemed to be incorporated by reference into
this document will be deemed to be modified or superseded for purposes of the document to the extent that a statement contained in this
document or any other subsequently filed document that is deemed to be incorporated by reference into this document modifies or supersedes
the statement. We incorporate by reference in this prospectus the following information (other than, in each case, documents or information
deemed to have been furnished and not filed in accordance with SEC rules):
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our
Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (filed with the SEC on April 1, 2024); |
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our
Current Report on Form 8-K filed with the SEC on March 26, 2024; |
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our
Form 8-A12B, filed with the SEC on February 16, 2021; and |
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the
description of the securities of the Company contained in Exhibit 4.4 of our Annual Report on Form 10-K for the year ended December
31, 2020 (filed with the SEC on March 31, 2021). |
We
also incorporate by reference each of the documents that we file with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Securities
Exchange Act of 1934, as amended, or the Exchange Act, (i) after the date of this prospectus and prior to effectiveness of this registration
statement on Form S-3 and (ii) on or after the date of this prospectus and prior to the termination of the offerings under this prospectus
and any prospectus supplement. These documents include periodic reports, such as Annual Reports on Form 10-K, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K, as well as proxy statements. We will not, however, incorporate by reference in this prospectus
any documents or portions thereof that are not deemed “filed” with the SEC, including any information furnished pursuant
to Item 2.02 or Item 7.01 of our Current Reports on Form 8-K after the date of this prospectus unless, and except to the extent, specified
in such Current Reports.
We
will provide to each person, including any beneficial owner, to whom a prospectus (or a notice of registration in lieu thereof) is delivered
a copy of any of these filings (other than an exhibit to these filings, unless the exhibit is specifically incorporated by reference
as an exhibit to this prospectus) at no cost, upon a request to us by writing or telephoning us at the following address and telephone
number:
AmpliTech Group, Inc.
155 Plant Avenue, Hauppauge, NY 11788
(631) 521-7831
SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This
prospectus, including the documents incorporated by reference herein, may contain or incorporate “forward-looking statements”
within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements discuss matters that are not historical
facts. Because they discuss future events or conditions, forward-looking statements may include words such as “anticipate,”
“believe,” “estimate,” “intend,” “could,” “should,” “would,”
“may,” “seek,” “plan,” “might,” “will,” “expect,” “anticipate,”
“predict,” “project,” “forecast,” “potential,” “continue” negatives thereof
or similar expressions. Forward-looking statements speak only as of the date they are made, are based on various underlying assumptions
and current expectations about the future and are not guarantees. Such statements involve known and unknown risks, uncertainties and
other factors that may cause our actual results, level of activity, performance or achievement to be materially different from the results
of operations or plans expressed or implied by such forward-looking statements.
We
cannot predict all the risks and uncertainties. Accordingly, such information should not be regarded as representations that the results
or conditions described in such statements or that our objectives and plans will be achieved, and we do not assume any responsibility
for the accuracy or completeness of any of these forward-looking statements. These forward-looking statements are found at various places
throughout this prospectus, including the documents incorporated by reference herein, and include information concerning possible or
assumed future results of our operations, including statements about potential acquisition or merger targets; business strategies; future
cash flows; financing plans; plans and objectives of management; any other statements regarding future acquisitions, future cash needs,
future operations, business plans and future financial results, and any other statements that are not historical facts. All written and
oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the
cautionary statements disclosed under “Risk Factors” in this prospectus, as such risk factors may be amended, supplemented
or superseded from time to time by reports we file with the SEC, including subsequent Annual Reports on Form 10-K, Quarterly Reports
on Form 10-Q and Current Reports on Form 8-K, and in any prospectus supplement. Accordingly, forward-looking statements should be not
be relied upon as a predictor of actual results. Readers are urged to carefully review and consider the various disclosures made in this
report and in our other filings with the SEC that attempt to advise interested parties of the risks and factors that may affect our business.
We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this
prospectus, except as required by law.
AmpliTech
Group, Inc.
AmpliTech
Group Inc. (“AMPG,” “AmpliTech” or the “Company”), incorporated in 2010 in the state of Nevada, is
the parent company of AmpliTech, Inc., and the Company’s divisions, Specialty Microwave, Spectrum Semiconductor Materials, AmpliTech
Group MMIC Design Center (“AGMDC”) and AmpliTech Group True G Speed Services (“AGTGSS”).
AmpliTech,
Inc. designs, engineers and assembles micro-wave component-based amplifiers that meet individual customer specifications. Our products
consist of Radio Frequency (“RF”) amplifiers and related subsystems, operating at multiple frequencies from 50kHz to 44GHz,
including low noise amplifiers (“LNA”), medium power amplifiers, cryogenic amplifiers, and custom assembly designs for the
global satellite communications, telecom (5G & IoT), space, defense, and quantum computing markets. We also offer non-recurring engineering
services on a project-by-project basis, for a predetermined fixed contractual amount, or on a time plus material basis. We have both
domestic and international customers in such industries as aerospace, governmental, defense and commercial satellite.
Specialty
Microwave designs and manufactures state-of- the-art precision SATCOM microwave components, RF subsystems and specialized electronic
assemblies for the military and commercial markets, flexible and rugged waveguides, wave guide adapters and more.
On
November 19, 2021, AMPG entered into an Asset Purchase Agreement with Spectrum Semiconductor Materials Inc. (“SSM”), a globally
authorized distributor of integrated circuit (IC) packaging and lids for semiconductor device assembly, prototyping, testing, and production
requirements founded in 1990 and headquartered in San Jose, CA, pursuant to which AMPG acquired substantially all of the assets of the
Company (the Acquisition). The Acquisition was completed on December 15, 2021.
In
2021, the Company opened AGMDC, a monolithic microwave integrated circuits (“MMIC”) chip design center, in Texas and has
started to implement several of its proprietary amplifier designs into MMIC components. MMICs are semiconductor chips used in high-frequency
communications applications. MMICs are widely desired for power amplification solutions to service emerging technologies, such as phased
array antennas and quantum computing. MMICs carry a smaller footprint enabling them to be incorporated into a broader array of systems
while reducing costs. AGMDC designs, develops and manufactures state-of-the-art signal processing components for satellite and 5G communications
networks, defense, space and other commercial applications, allowing the Company to market its products to wider base of customers requiring
high technology in smaller packages.
In
August 2022, we formed our AGTGSS division to enable “true G speeds” to the industry. AGTGSS’ main function will be
to plan and configure 5G radio systems and make them O-RAN compliant. AGTGSS will implement AmpliTech’s low noise amplifier devices
in these systems to promote greater coverage, longer range and faster speeds.
Our
mission is to patent our proprietary IP and trade secrets that were used in small volume niche markets and expand our capabilities through
strategic partnerships, joint ventures, mergers/acquisitions with key industry leaders in the 5G/6G, quantum computing, and cybersecurity
markets. We believe this will enable us to scale up our products and revenue by developing full systems and subsystems with our unique
technology as a core component, which we expect will position us as a global leader in these rapidly emerging technology sectors and
addresses large volume markets as well, such as cellphone handsets, laptops, server networks, and many other applications that improve
everyday quality of life.
The
Company’s research and development initiative to expand its product line of low noise amplifiers to include its new 5G and wireless
infrastructure products, cryogenic amplifiers and MMIC designs is progressing significantly. Our combined engineering and manufacturing
resources are expected to complement the development of new subsystems for satellite, wireless, and 5G infrastructures, as well as advanced
military and commercial markets.
Our
Corporate History and Structure
AmpliTech
Group Inc. was incorporated under the laws of the State of Nevada on December 30, 2010. On August 13, 2012, the Company acquired AmpliTech
Inc., by issuing 833,750 shares of the Company’s common stock to the shareholders of AmpliTech Inc. in exchange for 100% of the
outstanding shares of AmpliTech Inc. (the “Share Exchange”). After the Share Exchange, the selling shareholders owned 60,000
shares of the outstanding 893,750 shares of Company common stock, resulting in a change in control. Accordingly, the transaction was
accounted for as a reverse acquisition in which AmpliTech, Inc. was deemed to be the accounting acquirer, and the operations of the Company
were consolidated for accounting purposes. The capital balances have been retroactively adjusted to reflect the reverse acquisition.
AmpliTech
designs, engineers and assembles microwave component based low noise amplifiers (“LNA”) that meet individual customer specifications.
Application of the Company’s proprietary technology results in maximum frequency gain with minimal background noise distortion
as required by each customer. The Company has both domestic and international customers in such industries as aerospace, governmental,
defense and commercial satellite.
On
September 12, 2019, AmpliTech Group Inc. acquired substantially all of the assets of Specialty Microwave Corporation, a privately held
company based in Ronkonkoma, NY. The purchase included all inventory, orders, customers, property and equipment, and goodwill. Following
the closing of the asset purchase, we hired all eight team members of SMW. In connection with the acquisition, the Company began using
the trade name “Specialty Microwave”. The total consideration paid was $1,143,633, consisting of $668,633 in cash and a $475,000
promissory note with an interest rate of 6%.
Specialty
designs and manufactures passive microwave components and related subsystems that meet individual customer specifications for both domestic
and international customers for use in satellite communication ground networks.
On
February 17, 2021, AmpliTech Group Inc.’s common stock and warrants commenced trading on NASDAQ under the symbols “AMPG”
and “AMPGW,” respectively. A reverse split of the outstanding common stock at a 1-for-20 ratio became effective February
17, 2021, as of 12:01 a.m., Eastern Time. All share amounts have been retroactively re-stated to reflect the reverse split.
On
November 19, 2021, AmpliTech Group, Inc. entered into an Asset Purchase Agreement with SSM, pursuant to which AmpliTech would acquire
substantially all of the assets of SSM. SSM, located in Silicon Valley (San Jose, CA), was a global authorized distributor of IC packaging
and lids for semiconductor device assembly, prototyping, testing, and production requirements. The aggregate purchase price for the acquisition
was $10,123,276, subject to certain working capital and other adjustments. $665,200 of the aggregate purchase price was paid by the issuance
of 188,442 unregistered shares of AmpliTech common stock at the closing of the acquisition. The acquisition was completed on December
15, 2021.
In
2021, the Company opened a MMIC chip design center in Texas and has started to implement several of its proprietary amplifier designs
into MMIC components. MMICs are semiconductor chips used in high-frequency communications applications. MMICs are widely desired for
power amplification solutions to service emerging technologies, such as phased array antennas and quantum computing. MMICs carry a smaller
footprint enabling them to be incorporated into a broader array of systems while reducing costs. AGMDC designs, develops and manufactures
state-of-the-art signal processing components for satellite and 5G communications networks, defense, space and other commercial applications,
allowing the Company to market its products to a wider base of customers requiring high technology in smaller packages.
In
August 2022, our AGTGSS division was founded to serve and provide complete system integration and ORAN compliant O-RU’s (Radio
Units) for telcos, enabling the industry to access ‘True 5G Speeds’. AGTGSS provides Managed Services, Cyber Security, Cloud
Services, Data Sciences and Telco Cloud Services. AGTGSS will also be providing full installation of Private 5G Networks (P5G) which
includes the deployment of AmpliTech Group developed radio units. AGTGSS will implement AmpliTech’s low noise amplifier devices
in these systems to promote greater coverage, longer range and faster speeds.
RISK
FACTORS
Investing
in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider any risk factors
set forth in the applicable prospectus supplement and in the documents incorporated by reference in this prospectus. See “Where
You Can Find More Information” and “Information We Incorporate By Reference.” Each of the risks described in these
documents could materially and adversely affect our business, financial condition, results of operations and prospects, and could result
in a partial or complete loss of your investment. Additional risks and uncertainties not presently known to us, or that we currently
deem immaterial, may also adversely affect our business. In addition, past financial performance may not be a reliable indicator of future
performance and historical trends should not be used to anticipate results or trends in future periods.
USE
OF PROCEEDS
We
will retain broad discretion over the use of the net proceeds from the sale of the securities offered hereby. Unless otherwise specified
in any prospectus supplement, we currently intend to use the net proceeds from the sale of our securities offered under this prospectus
for working capital and general corporate purposes including, but not limited to, research and development; engineering, operations,
quality inspection, information technology and sales force expansion; marketing and sales and working capital. Pending any specific application,
we may initially invest funds in short-term marketable securities or apply them to the reduction of indebtedness.
DESCRIPTION
OF CAPITAL STOCK
The
following information describes the common stock, par value $0.001 per share, as well as certain provisions of our amended and restated
articles of incorporation (our “Articles of Incorporation”) and our amended and restated bylaws (“Bylaws”). This
description is only a summary. You should also refer to our Articles of Incorporation and Bylaws, which have been filed with the SEC
as exhibits to the registration statement of which this prospectus forms a part.
Authorized
and Outstanding Capital Stock
Our
authorized capital stock consists of 500,000,000 shares of common stock, $0.001 par value per share, and 1,000,000 shares of blank check
preferred stock, $0.001 par value per share. As of April 8, 2024, there are 9,717,113 shares of common stock and 0 shares of preferred
stock outstanding.
Common
Stock
Holders
of our common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders, and
do not have cumulative voting rights. Subject to preferences that may be applicable to any outstanding shares of preferred stock, holders
of common stock are entitled to receive ratably such dividends, if any, as may be declared from time to time by our Board of Directors
out of funds legally available for dividend payments. All outstanding, shares of common stock are fully paid and nonassessable, and the
shares of common stock to be issued upon completion of this offering will be fully paid and nonassessable. The holders of common stock
have no preferences or rights of cumulative voting, conversion, or pre-emptive or other subscription rights. There are no redemption
or sinking fund provisions applicable to the common stock. In the event of any liquidation, dissolution or winding-up of our affairs,
holders of common stock will be entitled to share ratably in any of our assets remaining after payment or provision for payment of all
of our debts and obligations and after liquidation payments to holders of outstanding shares of preferred stock, if any.
Our
common stock is traded on Nasdaq under the symbol “AMPG.”
The
transfer agent and registrar for our common stock is VStock Transfer LLC.
Preferred Stock
The
Board generally will be authorized, without further stockholder approval, to issue from time to time up to an aggregate of 1,000,000
shares of preferred stock, in one or more series. Each series of preferred stock will have the number of shares, designations,
preferences, voting powers (or special, preferential or no voting powers), relative, participating, optional or other special rights
and privileges and such qualifications, limitations or restrictions as is determined by the Board, which may include, among others,
the right to provide that the shares of each such series may be: (i) subject to redemption at such time or times and at such price
or prices; (ii) entitled to receive dividends (which may be cumulative or non-cumulative) at such rates, on such conditions, and at
such times, and payable in preference to, or in such relation to, the dividends payable on any other class or classes or any other
series; (iii) entitled to such rights upon the dissolution of, or upon any distribution of the assets of, the Company; (iv)
convertible into, or exchangeable for, shares of any other class or classes of stock, or of any other series of the same or any
other class or classes of stock of the Company at such price or prices or at such rates of exchange and with such adjustments, if
any; or (v) entitled to the benefit of such limitations, if any, on the issuance of additional shares of such series or shares of
any other series of preferred stock. Our stockholders have granted the Board authority to issue the preferred stock and to
determine the rights and preferences of the preferred stock in order to eliminate delays associated with a stockholder vote on
specific issuances. The rights of the holders of common stock will be subordinate to the rights of holders of any preferred stock
issued in the future. The issuance of preferred stock, while providing desirable flexibility in connection with possible
acquisitions and other corporate purposes, could adversely affect the voting power or other rights of the holders of common stock,
and could make it more difficult for a third party to acquire, or discourage a third party from attempting to acquire, a majority of
our outstanding voting stock.
Anti-Takeover
Effects of Some Provisions of Nevada Law
The
following provisions of the Nevada Revised Statutes (“NRS”) could, if applicable, have the effect of discouraging takeovers
of our company.
Transactions
with Interested Stockholders. The NRS prohibits a publicly-traded Nevada company from engaging in any business combination with an
interested stockholder for a period of three years following the date that the stockholder became an interested stockholder unless, prior
to that date, the Board of Directors of the corporation approved either the business combination itself or the transaction that resulted
in the stockholder becoming an interested stockholder.
An
“interested stockholder” is defined as any entity or person beneficially owning, directly or indirectly, 10% or more of the
outstanding voting stock of the corporation and any entity or person affiliated with, controlling, or controlled by any of these entities
or persons. The definition of “business combination” is sufficiently broad to cover virtually any type of transaction that
would allow a potential acquirer to use the corporation’s assets to finance the acquisition or otherwise benefit its own interests
rather than the interests of the corporation and its stockholders.
In
addition, business combinations that are not approved and therefore take place after the three year waiting period may also be prohibited
unless approved by the board of directors and stockholders or the price to be paid by the interested stockholder is equal to the highest
of (i) the highest price per share paid by the interested stockholder within the 3 years immediately preceding the date of the announcement
of the business combination or in the transaction in which he or she became an interested stockholder, whichever is higher; (ii) the
market value per common share on the date of announcement of the business combination or the date the interested stockholder acquired
the shares, whichever is higher; or (iii) if higher for the holders of preferred stock, the highest liquidation value of the preferred
stock.
Acquisition
of a Controlling Interest. The NRS contains provisions governing the acquisition of a “controlling interest” and provides
generally that any person that acquires 20% or more of the outstanding voting shares of an “issuing corporation,” defined
as Nevada corporation that has 200 or more stockholders at least 100 of whom are Nevada residents (as set forth in the corporation’s
stock ledger); and does business in Nevada directly or through an affiliated corporation, may be denied voting rights with respect to
the acquired shares, unless a majority of the disinterested stockholder of the corporation elects to restore such voting rights in whole
or in part.
The
statute focuses on the acquisition of a “controlling interest” defined as the ownership of outstanding shares sufficient,
but for the control share law, to enable the acquiring person, directly or indirectly and individually or in association with others,
to exercise (i) one-fifth or more, but less than one-third; (ii) one-third or more, but less than a majority; or (iii) a majority or
more of the voting power of the corporation in the election of directors.
The
question of whether or not to confer voting rights may only be considered once by the stockholders and once a decision is made, it cannot
be revisited. In addition, unless a corporation’s articles of incorporation or bylaws provide otherwise (i) acquired voting securities
are redeemable in whole or in part by the issuing corporation at the average price paid for the securities within 30 days if the acquiring
person has not given a timely information statement to the issuing corporation or if the stockholders vote not to grant voting rights
to the acquiring person’s securities; and (ii) if voting rights are granted to the acquiring person, then any stockholder who voted
against the grant of voting rights may demand purchase from the issuing corporation, at fair value, of all or any portion of their securities.
The
provisions of this section do not apply to acquisitions made pursuant to the laws of descent and distribution, the enforcement of a judgment,
or the satisfaction of a security interest, or acquisitions made in connection with certain mergers or reorganizations.
DESCRIPTION
OF WARRANTS
General
The
following description, together with the additional information we include in any applicable prospectus supplement, summarizes the material
terms and provisions of the warrants that we may offer under this prospectus, which consist of warrants to purchase shares of common
stock, and/or preferred stock in one or more series. Warrants may be offered independently or together with shares of common stock, and/or
preferred stock offered by any prospectus supplement and may be attached to or separate from those securities.
While
the terms we have summarized below will generally apply to any future warrants we may offer under this prospectus, we will describe the
particular terms of any warrants that we may offer in more detail in the applicable prospectus supplement. The specific terms of any
warrants may differ from the description provided below as a result of negotiations with third parties in connection with the issuance
of those warrants, as well as for other reasons. Because the terms of any warrants we offer under a prospectus supplement may differ
from the terms we describe below, you should rely solely on information in the applicable prospectus supplement if that summary is different
from the summary in this prospectus.
We
will issue the warrants under a warrant agreement, which we will enter into with a warrant agent to be selected by us. We use the term
“warrant agreement” to refer to any of these warrant agreements. We use the term “warrant agent” to refer to
the warrant agent under any of these warrant agreements. The warrant agent will act solely as an agent of ours in connection with the
warrants and will not act as an agent for the holders or beneficial owners of the warrants.
We
will incorporate by reference into the registration statement of which this prospectus is a part the form of warrant agreement, including
a form of warrant certificate that describes the terms of the series of warrants we are offering before the issuance of the related series
of warrants. The following summaries of material provisions of the warrants and the warrant agreements are subject to, and qualified
in their entirety by reference to, all the provisions of the warrant agreement applicable to a particular series of warrants. We urge
you to read any applicable prospectus supplement related to the warrants that we sell under this prospectus, as well as the complete
warrant agreement that contain the terms of the warrants and defines your rights as a warrant holder.
We
will describe in the applicable prospectus supplement the terms relating to a series of warrants.
If
warrants for the purchase of shares of common stock or preferred stock are offered, the prospectus supplement will describe the following
terms, to the extent applicable:
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offering price and the aggregate number of warrants offered; |
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total number of shares that can be purchased if a holder of the warrants exercises them; |
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the
number of warrants being offered with each share of common stock; |
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the
date on and after which the holder of the warrants can transfer them separately from the related shares of common stock or preferred
stock; |
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the
number of shares of common stock or preferred stock that can be purchased if a holder exercises the warrant and the price at which
those shares may be purchased upon exercise, including, if applicable, any provisions for changes to or adjustments in the exercise
price and in the securities or other property receivable upon exercise; |
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the
terms of any rights to redeem or call, or accelerate the expiration of, the warrants; |
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the
date on which the right to exercise the warrants begins and the date on which that right expires; |
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federal
income tax consequences of holding or exercising the warrants; and |
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any
other specific terms, preferences, rights or limitations of, or restrictions on, the warrants. |
Warrants
for the purchase of shares of common stock or preferred stock will be in registered form only.
A
holder of warrant certificates may exchange them for new certificates of different denominations, present them for registration of transfer
and exercise them at the corporate trust office of the warrant agent or any other office indicated in the applicable prospectus supplement.
Until any warrants to purchase shares of common stock or preferred stock are exercised, holders of the warrants will not have any rights
of holders of the underlying shares of common stock or preferred stock, including any rights to receive dividends or to exercise any
voting rights, except to the extent set forth under “Warrant Adjustments” below.
Exercise
of Warrants
Each
holder of a warrant is entitled to purchase the number of shares of common stock or preferred stock, as the case may be, at the exercise
price described in the applicable prospectus supplement. After the close of business on the day when the right to exercise terminates
(or a later date if we extend the time for exercise), unexercised warrants will become void.
A
holder of warrants may exercise them by following the general procedure outlined below:
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deliver
to the warrant agent the payment required by the applicable prospectus supplement to purchase the underlying security; |
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properly
complete and sign the reverse side of the warrant certificate representing the warrants; and |
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deliver
the warrant certificate representing the warrants to the warrant agent within five business days of the warrant agent receiving payment
of the exercise price. |
If
you comply with the procedures described above, your warrants will be considered to have been exercised when the warrant agent receives
payment of the exercise price, subject to the transfer books for the securities issuable upon exercise of the warrant not being closed
on such date. After you have completed those procedures and subject to the foregoing, we will, as soon as practicable, issue and deliver
to you the shares of common stock or preferred stock that you purchased upon exercise. If you exercise fewer than all of the warrants
represented by a warrant certificate, a new warrant certificate will be issued to you for the unexercised amount of warrants. Holders
of warrants will be required to pay any tax or governmental charge that may be imposed in connection with transferring the underlying
securities in connection with the exercise of the warrants.
Amendments
and Supplements to the Warrant Agreements
We
may amend or supplement a warrant agreement without the consent of the holders of the applicable warrants to cure ambiguities in the
warrant agreement, to cure or correct a defective provision in the warrant agreement, or to provide for other matters under the warrant
agreement that we and the warrant agent deem necessary or desirable, so long as, in each case, such amendments or supplements do not
materially adversely affect the interests of the holders of the warrants.
Warrant Adjustments
Unless
the applicable prospectus supplement states otherwise, the exercise price of, and the number of securities covered by, a warrant for
shares of common stock or preferred stock will be adjusted proportionately if we subdivide or combine our common stock or preferred stock,
as applicable. In addition, unless the prospectus supplement states otherwise, if we, without payment:
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issue
shares of common stock or preferred stock or other securities convertible into or exchangeable for common stock or preferred stock,
or any rights to subscribe for, purchase or otherwise acquire any other foregoing, as a dividend or distribution to all or substantially
all holders of our common stock or preferred stock; |
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pay
any cash to all or substantially all holders of our common stock or preferred stock, other than a cash dividend paid out of our current
or retained earnings; |
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issue
any evidence of our indebtedness or rights to subscribe for or purchase our indebtedness to all or substantially all holders of our
common stock or preferred stock; or |
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issue
common stock, preferred stock or additional shares or other securities or property to all or substantially all holders of our common
stock or preferred stock by way of spinoff, split-up, reclassification, combination of shares or similar corporate rearrangement; |
then
the holders of common stock warrants or preferred stock warrants will be entitled to receive upon exercise of the warrants, in addition
to the securities otherwise receivable upon exercise of the warrants and without paying any additional consideration, the amount of shares
and other securities and property such holders would have been entitled to receive had they held the common stock or preferred stock
issuable under the warrants on the dates on which holders of those securities received or became entitled to receive such additional
shares and other securities and property.
Except
as stated above, the exercise price and number of securities covered by a warrant for shares of common stock or preferred stock, and
the amounts of other securities or property to be received, if any, upon exercise of those warrants, will not be adjusted or provided
for if we issue those securities or any securities convertible into or exchangeable for those securities, or securities carrying the
right to purchase those securities or securities convertible into or exchangeable for those securities.
Holders
of common stock warrants or preferred stock warrants may have additional rights under the following circumstances:
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certain
reclassifications, capital reorganizations or changes of the common stock or preferred stock; |
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certain
share exchanges, mergers, or similar transactions involving us that result in changes of the common stock or preferred stock; or |
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certain
sales or dispositions to another entity of all or substantially all of our property and assets. |
If
one of the above transactions occurs and holders of our common stock or preferred stock are entitled to receive shares, securities or
other property with respect to or in exchange for their securities, the holders of the common stock warrants or preferred stock warrants
then-outstanding, as applicable, will be entitled to receive upon exercise of their warrants the kind and amount of shares and other
securities or property that they would have received upon the applicable transaction if they had exercise.
DESCRIPTION
OF RIGHTS
The
following description, together with the additional information we include in any applicable prospectus supplement, summarizes the general
features of the rights that we may offer under this prospectus. We may issue rights to our stockholders to purchase shares of our common
stock and/or any of the other securities offered hereby. Each series of rights will be issued under a separate rights agreement to be
entered into between us and a bank or trust company, as rights agent. When we issue rights, we will provide the specific terms of the
rights and the applicable rights agreement in a prospectus supplement. Because the terms of any rights we offer under a prospectus supplement
may differ from the terms we describe below, you should rely solely on information in the applicable prospectus supplement if that summary
is different from the summary in this prospectus. We will incorporate by reference into the registration statement of which this prospectus
is a part the form of rights agreement that describes the terms of the series of rights we are offering before the issuance of the related
series of rights. The applicable prospectus supplement relating to any rights will describe the terms of the offered rights, including,
where applicable, the following:
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the
date for determining the persons entitled to participate in the rights distribution; |
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the
exercise price for the rights; |
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the
aggregate number or amount of underlying securities purchasable upon exercise of the rights; |
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the
number of rights issued to each stockholder and the number of rights outstanding, if any; |
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the
extent to which the rights are transferable; |
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the
date on which the right to exercise the rights will commence and the date on which the right will expire; |
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the
extent to which the rights include an over-subscription privilege with respect to unsubscribed securities; |
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anti-dilution
provisions of the rights, if any; and |
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any
other terms of the rights, including terms, procedures and limitations relating to the distribution, exchange and exercise of the
rights. |
Holders
may exercise rights as described in the applicable prospectus supplement. Upon receipt of payment and the rights certificate properly
completed and duly executed at the corporate trust office of the rights agent or any other office indicated in the prospectus supplement,
we will, as soon as practicable, forward the securities purchasable upon exercise of the rights. If less than all of the rights issued
in any rights offering are exercised, we may offer any unsubscribed securities directly to persons other than stockholders, to or through
agents, underwriters or dealers or through a combination of such methods, including pursuant to standby underwriting arrangements, as
described in the applicable prospectus supplement.
DESCRIPTION
OF UNITS
We
may issue units comprising two or more securities described in this prospectus in any combination. For example, we might issue units
consisting of a combination of common stock and warrants to purchase common stock. The following description sets forth certain general
terms and provisions of the units that we may offer pursuant to this prospectus. The particular terms of the units and the extent, if
any, to which the general terms and provisions may apply to the units so offered will be described in the applicable prospectus supplement.
Each
unit will be issued so that the holder of the unit also is the holder of each security included in the unit. Thus, the unit will have
the rights and obligations of a holder of each included security. Units will be issued pursuant to the terms of a unit agreement, which
may provide that the securities included in the unit may not be held or transferred separately at any time or at any time before a specified
date. A copy of the forms of the unit agreement and the unit certificate relating to any particular issue of units will be filed with
the SEC each time we issue units, and you should read those documents for provisions that may be important to you. For more information
on how you can obtain copies of the forms of the unit agreement and the related unit certificate, see “Where You Can Find More
Information.”
The
prospectus supplement relating to any particular issuance of units will describe the terms of those units, including, to the extent applicable,
the following:
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the
designation and terms of the units and the securities comprising the units, including whether and under what circumstances those
securities may be held or transferred separately; |
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any
provision for the issuance, payment, settlement, transfer or exchange of the units or of the securities comprising the units; and |
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whether
the units will be issued in fully registered or global form. |
PLAN
OF DISTRIBUTION
We
may sell the securities from time to time, by a variety of methods, including the following:
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on
any national securities exchange or quotation service on which our securities may be listed at the time of sale, including Nasdaq; |
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in
the over-the-counter market; |
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in
transactions otherwise than on such exchange or in the over-the-counter market, which may include privately negotiated transactions
and sales directly to one or more purchasers; |
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through
ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; |
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through
purchases by a broker-dealer as principal and resale by the broker-dealer for its account; |
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through
underwriters, broker-dealers, agents, in privately negotiated transactions, or any combination of these methods; |
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through
short sales; |
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through
the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise; |
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combination of any of these methods; or |
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by
any other method permitted pursuant to applicable law. |
The
securities may be distributed from time to time in one or more transactions:
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at
a fixed price or prices, which may be changed; |
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at
market prices prevailing at the time of sale; |
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at
prices related to such prevailing market prices; or |
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at
negotiated prices. |
Offers
to purchase the securities being offered by this prospectus may be solicited directly. Agents may also be designated to solicit offers
to purchase the securities from time to time. Any agent involved in the offer or sale of our securities will be identified in a prospectus
supplement.
If
a dealer is utilized in the sale of the securities being offered by this prospectus, the securities will be sold to the dealer, as principal.
The dealer may then resell the securities to the public at varying prices to be determined by the dealer at the time of resale.
If
an underwriter is utilized in the sale of the securities being offered by this prospectus, an underwriting agreement will be executed
with the underwriter at the time of sale and the name of any underwriter will be provided in the prospectus supplement that the underwriter
will use to make resales of the securities to the public. In connection with the sale of the securities, we, or the purchasers of securities
for whom the underwriter may act as agent, may compensate the underwriter in the form of underwriting discounts or commissions. The underwriter
may sell the securities to or through dealers, and those dealers may receive compensation in the form of discounts, concessions or commissions
from the underwriters and/or commissions from the purchasers for which they may act as agent. Unless otherwise indicated in a prospectus
supplement, an agent will be acting on a best efforts basis and a dealer will purchase securities as a principal, and may then resell
the securities at varying prices to be determined by the dealer.
Any
compensation paid to underwriters, dealers or agents in connection with the offering of the securities, and any discounts, concessions
or commissions allowed by underwriters to participating dealers will be provided in the applicable prospectus supplement. Underwriters,
dealers and agents participating in the distribution of the securities may be deemed to be underwriters within the meaning of the Securities
Act, and any discounts and commissions received by them and any profit realized by them on resale of the securities may be deemed to
be underwriting discounts and commissions. In compliance with the guidelines of the Financial Industry Regulatory Authority, Inc., or
FINRA, the maximum amount of underwriting compensation, including underwriting discounts and commissions, to be paid in connection with
any offering of securities pursuant to this prospectus may not exceed 8% of the aggregate principal amount of securities offered. We
may enter into agreements to indemnify underwriters, dealers and agents against civil liabilities, including liabilities under the Securities
Act, or to contribute to payments they may be required to make in respect thereof and to reimburse those persons for certain expenses.
The securities may or may not be listed on a national securities exchange. To facilitate the offering of securities, certain persons
participating in the offering may engage in transactions that stabilize, maintain or otherwise affect the price of the securities. This
may include over-allotments or short sales of the securities, which involve the sale by persons participating in the offering of more
securities than were sold to them. In these circumstances, these persons would cover such over-allotments or short positions by making
purchases in the open market or by exercising their over-allotment option, if any. In addition, these persons may stabilize or maintain
the price of the securities by bidding for or purchasing securities in the open market or by imposing penalty bids, whereby selling concessions
allowed to dealers participating in the offering may be reclaimed if securities sold by them are repurchased in connection with stabilization
transactions. The effect of these transactions may be to stabilize or maintain the market price of the securities at a level above that
which might otherwise prevail in the open market. These transactions may be discontinued at any time.
If
indicated in the applicable prospectus supplement, underwriters or other persons acting as agents may be authorized to solicit offers
by institutions or other suitable purchasers to purchase the securities at the public offering price set forth in the prospectus supplement,
pursuant to delayed delivery contracts providing for payment and delivery on the date or dates stated in the prospectus supplement. These
purchasers may include, among others, commercial and savings banks, insurance companies, pension funds, investment companies and educational
and charitable institutions. Delayed delivery contracts will be subject to the condition that the purchase of the securities covered
by the delayed delivery contracts will not at the time of delivery be prohibited under the laws of any jurisdiction in the United States
to which the purchaser is subject. The underwriters and agents will not have any responsibility with respect to the validity or performance
of these contracts.
We
may engage in at-the-market offerings into an existing trading market in accordance with rule 415(a)(4) under the Securities Act. In
addition, we may enter into derivative transactions with third parties, or sell securities not covered by this prospectus to third parties
in privately negotiated transactions. If the applicable prospectus supplement so indicates, in connection with those derivatives, the
third parties may sell securities covered by this prospectus and the applicable prospectus supplement, including in short sale transactions.
If so, the third party may use securities pledged by us, or borrowed from us or others to settle those sales or to close out any related
open borrowings of common stock, and may use securities received from us in settlement of those derivatives to close out any related
open borrowings of our common stock. In addition, we may loan or pledge securities to a financial institution or other third party that
in turn may sell the securities using this prospectus and an applicable prospectus supplement. Such financial institution or other third
party may transfer its economic short position to investors in our securities or in connection with a concurrent offering of other securities.
The
underwriters, dealers and agents may engage in transactions with us, or perform services for us, in the ordinary course of business for
which they receive compensation.
LEGAL MATTERS
Unless
otherwise indicated in the applicable prospectus supplement, certain legal matters in connection with the offering and the validity of
the securities offered by this prospectus, and any supplement thereto, will be passed upon by Sichenzia Ross Ference Carmel LLP. A partner
of Sichenzia Ross Ference Carmel LLP owns 50,000 shares of our common stock.
EXPERTS
Our
financial statements as of December 31, 2023 and December 31, 2022 have been included in reliance on the report of Sadler, Gibb &
Associates, LLC, an independent registered public accounting firm, as stated in its report incorporated by reference herein, and have
been so incorporated in reliance upon such report and upon the authority of such firm as experts in accounting and auditing.
AmpliTech Group, Inc.
1,425,377
Shares of Common Stock
177,882
Prefunded Warrants to Purchase up to 177,882 Shares of Common Stock
177,882
Shares of Common Stock Underlying the Prefunded Warrants
Sole
Placement Agent
MAXIM GROUP LLC
The
date of this prospectus supplement is November 24, 2024
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