AmpliTech Group, Inc.

AmpliTech Group Inc. operates in the high-power RF semiconductors industry, characterized by high demand for complex, next-generation wireless signal processing applications, mass adoption of internet and web-based applications, and the ability to combine analog and digital signal processing into more integrated RF solutions. The industry also features widespread application of low-cost, high-performance wireless networks and the emergence of 5G/6G, WI-FI 6e, satellite, and advanced wireless network infrastructure rollouts. The company believes there is a growing opportunity for advanced RF subsystems, modules, and components, driven by demand for precise, high-speed signal conditioning interfaces, the convergence of computing, communications, and consumer electronics, and the need to complement OEM design and manufacturing capabilities by delivering quality and feature improvements, lowering production costs, and shortening product development cycles.

The company's core business model revolves around designing, engineering, assembling, and distributing microwave component-based amplifiers and related subsystems. Revenue is primarily generated from customer purchase orders for single-use products, with limited warranties provided. The company serves a diverse customer base including mobile network operators, private network providers, systems integrators, OEMs, government and defense-related organizations, research and academic institutions, and commercial enterprises. The company also offers non-recurring engineering services on a project-by-project or time-plus-material basis.

The AmpliTech Inc. division offers connectorized RF amplifiers and related subsystems, operating at frequencies from 50kHz to 44GHz, including low noise amplifiers (LNAs), medium power amplifiers, cryogenic amplifiers, low noise block-down converters (LNBs), and custom assembly designs. These products serve the global satellite communications, telecom (5G & IoT), space, defense, and quantum computing markets. The Specialty Microwave division designs and manufactures passive microwave components and related subsystems, such as SATCOM microwave components, RF subsystems, specialized electronic assemblies, flexible and rugged waveguides, and waveguide adapters for military and commercial markets. The AGMDC division, a monolithic microwave integrated circuits (MMIC) chip design center, designs, develops, and manufactures state-of-the-art signal processing components in chip form, including LNAs, power amplifiers, filters, attenuators, and thru lines, for satellite and 5G communications networks, defense, space, and other commercial applications. The SSM division acts as a globally authorized distributor of IC packaging and lids for semiconductor device assembly, prototyping, testing, and production requirements. The AGTGSS division focuses on planning and configuring 5G radio systems to be O-RAN compliant, implementing AmpliTech's low noise amplifier devices to enhance coverage, range, and speed. This division is actively developing and manufacturing Open Radio Units for Sub 6GHz, including a Massive MIMO, 64T64R ORAN, CAT B Radio Network, which is expected to be a flagship product.

For the fiscal year ended December 31, 2025, total revenue increased to $25,195,930 ¹ from $9,508,372 ² in 2024, representing a significant increase of approximately 164.99% ³. Cost of goods sold rose to $19,165,917 ⁴ in 2025 from $6,023,265 ⁵ in 2024, an increase of approximately 218.20% ⁶. Gross profit for 2025 was $6,030,013 ⁷, up from $3,485,107 ⁸ in 2024, an increase of 73.02% ⁹. However, gross profit as a percentage of sales decreased to 23.93% ¹⁰ in 2025 from 36.65% ¹¹ in 2024, primarily due to the lower gross margin profile of the 5G radio product line, which represented approximately 47.67% ¹² of total 2025 revenues. Selling, general and administrative expenses increased to $10,662,741 ¹³ in 2025 from $7,856,471 ¹⁴ in 2024, a 35.72% ¹⁵ increase. Research and development costs decreased by $903,519 ¹⁶, or 25.16% ¹⁷, from $3,590,695 ¹⁸ in 2024 to $2,687,176 ¹⁹ in 2025. The company reported a net loss of $7,007,155 ²⁰ in 2025, an improvement from the $11,242,404 ²¹ net loss in 2024. Basic and diluted EPS for 2025 was $(0.33) ²², compared to $(1.04) ²³ in 2024. As of December 31, 2025, cash and cash equivalents were $4,981,091 ²⁴, with rights offering subscription proceeds in escrow of $6,704,304 ²⁵. Total current assets were $25,060,382 ²⁶, and total current liabilities were $14,902,741 ²⁷, resulting in working capital of $10,157,641 ²⁸. The company had an accumulated deficit of $28,019,282 ²⁹ as of December 31, 2025. Net cash used in operating activities was $8,683,707 ³⁰ in 2025.

The significant operational developments during the period include the asset acquisition on March 26, 2025, from Titan Crest, LLC, for certain intellectual property related to 5G ORAN radio products. The aggregate purchase price was $8,000,000 ³¹, consisting of $4,000,000 ³² in cash and $4,000,000 ³³ in restricted shares of common stock. An initial payment of $3,500,000 ³⁴ in cash and $1,500,000 ³⁵ in restricted common stock (914,635 shares ³⁶ with a fair value of $1,710,367 ³⁷) was made on April 24, 2025. The remaining $500,000 ³⁸ in cash and $2,500,000 ³⁹ in restricted common stock are contingent upon the transfer of 5G ORAN radio products' technology and intellectual property rights, expected in Q2 2026. This acquisition led to a new customer representing 42.86% ⁴⁰ of total revenues in 2025, contributing $10,797,628 ⁴¹. The company also entered into a non-binding letter of intent on March 20, 2025, for the purchase of $78 million ⁴² of its Oran radios, with approximately $5 million ⁴³ in funded purchase orders received as of March 23, 2026, which began shipping in late December 2025 and are expected to be completed by Q2 2026. The company also acquired additional IP assets of $2,200,000 ⁴⁴ in September 2025 to support 5G development.

Management expects the gross margin profile of the 5G product line to improve materially as per-unit costs are reduced, following the transition of 5G radio fulfillment to its own dedicated production line, which became operational in 2026. This improvement, combined with the continued contribution of the higher-margin LNA/LNB product lines and economies of scale from increased 5G volumes, is anticipated to lead to an improvement in the blended consolidated gross margin in 2026 and beyond.

A major growth area for the company is its 5G ORAN radio products, stemming from the asset acquisition in March 2025. The company has already received approximately $5 million ⁴⁵ in funded purchase orders from a major telecommunications provider, which started shipping in late December 2025 and are anticipated to be completed within Q2 of 2026. Management expects to receive additional follow-up orders into 2027, building on a non-binding letter of intent for $78 million ⁴⁶ of these radios. The company owns intellectual property for several O-RAN 5G radios, including 4T4R, 8T8R, 32T32R, and 64T64R configurations, and its Massive MIMO, 64T64R ORAN, CAT B Radio Network is expected to become a flagship product, certified as meeting all ORAN KPI requirements. This product leverages proprietary technology, including existing core LNA products and MMICs from the AGMDC division, to provide true 5G speeds with improved signal strength, enhanced coverage, and increased user capacity, adhering to ORAN specifications for openness and interoperability.

Another significant growth area is the expansion of its product line to include cryogenic amplifiers and MMIC designs, alongside its new 5G and wireless infrastructure products. The company's AGMDC division has successfully transferred proprietary technology from connectorized products into MMICs, releasing over 125 new MMIC chip technology products since its inception. These MMICs are semiconductor chips for high-frequency communications, desired for power amplification in emerging technologies like phased array antennas and quantum computing, offering a smaller footprint and reduced costs. The company's re-designed cryogenic 4.0 – 8.0 GHz amplifiers for quantum computing have been tested and validated by a third-party laboratory for performance, targeting low-temperature applications such as quantum computing, medical applications, RF imaging, research & development, space communications, accelerators, radiometry, and telephony.

Operationally, the company is focused on product innovation, expanding its customer base, and reducing customer concentration risk through new relationships in the 5G infrastructure, satellite communications, and quantum computing markets. The transition of 5G radio fulfillment to its own dedicated production line, operational in 2026, is expected to improve the gross margin profile of the 5G product line by reducing per-unit costs. The company's manufacturing facility in Hauppauge, New York, more than triples its capacity and has room for expansion, with an established supply chain and local contract manufacturing sources expected to provide sufficient capacity for small and large orders (thousand+ units per month). The company also maintains a distribution center in San Jose, California, and an MMIC design center in Plano, Texas.

Regarding capital allocation, research and development costs for 2025 were $2,687,176 ⁴⁷, a decrease from $3,590,695 ⁴⁸ in 2024, mainly due to the completion of the massive MIMO 64T64R Oran Cat B radio network. The company intends to continue financing its internal growth with cash on hand, cash provided from operations, borrowings, debt or equity offerings, or a combination thereof. Management believes current cash and cash provided from operations will fund operations for the next twelve months. The company does not anticipate paying any cash dividends on its common stock for the foreseeable future, intending to retain all available funds and future earnings for business development and growth.

Management has explicitly flagged several structural headwinds and execution risks. The Second Milestone of the Titan APA, involving a remaining $500,000 ⁴⁹ in cash and $2,500,000 ⁵⁰ in restricted common stock, is expected to be achieved towards Q2 2026, but there is no assurance it will be completed or that anticipated financial and strategic benefits will materialize. Purchase orders, including the $78 million ⁵¹ non-binding letter of intent for Oran radios, are subject to cancellation, modification, or delays. The company faces significant dependence on a single customer, which accounted for 42.86% ⁵² of total sales in 2025, and the loss or reduction of orders from this customer would materially adversely affect the business. Supply chain constraints, including semiconductor shortages and commodity scarcity, may slow production and delay revenue recognition, while increased costs of components and freight, along with potential tariffs and inflation, could negatively impact results of operations and financial condition.

The company faces several material risks, including significant fluctuations in revenue, earnings, and margins due to economic conditions and demand for new products, as evidenced by net losses of $7,007,155 ⁵³ in 2025 and $11,242,404 ⁵⁴ in 2024, and an accumulated deficit of $28,019,282 ⁵⁵ as of December 31, 2025. There is no assurance that the Second Milestone of the Titan asset purchase agreement will be achieved, or that the non-binding letter of intent for $78 million ⁵⁶ in Oran radios will result in definitive purchase orders, with only approximately $5 million ⁵⁷ in funded orders received as of March 23, 2026. A significant customer concentration risk exists, with one customer accounting for 42.86% ⁵⁸ of total sales in 2025, the loss of which would materially impact the business. Supply chain constraints, including semiconductor shortages and increased costs of components and freight, could delay production and revenue recognition. The market is highly competitive, with established players having greater resources, and the company's ability to compete depends on maintaining market share, expanding channel partnerships, securing cost-effective supplies, developing innovative products, and protecting intellectual property. Global economic uncertainty, political instability, and changes in international trade relationships, such as tariffs imposed by the U.S. on imports from various countries, could adversely affect access to financing, business operations, and costs. Breaches of network or information technology security, natural disasters, or terrorist attacks could disrupt systems and operations, compromise sensitive information, and damage reputation. Changes in product mix, particularly the lower gross margin profile of the 5G radio product line, could cause overall gross margin to decline. Product defects, errors, or interoperability issues could affect reputation, incur significant costs, and impair future sales. The company may face costly intellectual property infringement claims and may be unable to obtain or protect its own intellectual property rights, potentially leading to increased competition and lower revenues. Inaccuracies in customer demand estimates could negatively affect inventory levels and sales. The company has identified material weaknesses in internal control over financial reporting, including a lack of segregation of duties and ineffective controls over financial statement disclosure, which could result in material misstatements. The company may need to raise additional capital, which may not be available on favorable terms and could dilute existing stockholders.

Management's message to shareholders emphasizes a strategic pivot towards high-growth technology sectors, particularly 5G/6G, quantum computing, and cybersecurity, aiming to leverage proprietary IP and trade secrets to scale products and revenue by developing full systems and subsystems. The company is actively focused on product innovation, expanding its customer base, and reducing customer concentration risk through new relationships in these emerging markets. Management expects the gross margin profile of the 5G product line to improve materially in 2026 and beyond as fulfillment transitions to its dedicated production line, which became operational in 2026, leading to reduced per-unit costs and improved blended consolidated gross margin. Key strategic priorities include the commercialization of existing core technology into high-volume sectors and obtaining patents, as well as new product development. The company has received approximately $5 million ⁵⁹ in funded purchase orders for its Oran radios as of March 23, 2026, which began shipping in late December 2025 and are anticipated to be completed within Q2 of 2026, with expectations for additional follow-up orders into 2027.