AmpliTech Group, Inc.

AmpliTech Group Inc. operates in the high-power RF semiconductor 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 and the convergence of computing, communications, and consumer electronics with state-of-the-art signal processing capability with less power consumption.

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 also offers non-recurring engineering services on a project-by-project or time-plus-material basis. Key customer segments include global satellite communications, telecom (5G & IoT), space, defense, quantum computing, aerospace, governmental, and commercial satellite markets. The company aims to patent its proprietary IP and trade secrets and expand capabilities through strategic partnerships, joint ventures, mergers/acquisitions with key industry leaders in 5G/6G, quantum computing, and cybersecurity markets to scale products and revenue by developing full systems and subsystems.

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. The Specialty Microwave division designs and manufactures passive microwave components, RF subsystems, and specialized electronic assemblies for military and commercial markets, including flexible and rugged waveguides and adapters. The AGMDC division, a monolithic microwave integrated circuits (MMIC) chip design center, designs, develops, and manufactures state-of-the-art signal processing components for satellite and 5G communications networks, defense, space, and other commercial applications, having released over 125 new MMIC chip technology products. The SSM division is 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 LNA devices, and actively developing and manufacturing Open Radio Units for Sub 6GHz, including Massive MIMO, 64T64R ORAN, CAT B Radio Network products.

For the fiscal year ended December 31, 2025, total revenues increased to $25,195,930 ¹ from $9,508,372 ² in 2024, representing an 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 from 36.65% ¹¹. The company reported a net loss of $7,007,155 ¹² in 2025, an improvement from a net loss of $11,242,404 ¹³ in 2024. Basic and diluted EPS for 2025 was $(0.33) ¹⁴, compared to $(1.04) ¹⁵ in 2024. Cash and cash equivalents stood at $4,981,091 ¹⁶ as of December 31, 2025, down from $19,315,984 ¹⁷ in 2024. The company had working capital of $10,157,641 ¹⁸ and an accumulated deficit of $28,019,282 ¹⁹ as of December 31, 2025. Total liabilities were $18,616,618 ²⁰ as of December 31, 2025.

The significant revenue increase in 2025 was primarily driven by an asset acquisition in April 2025, which added a new revenue stream in 5G infrastructure products. This acquisition led to fulfilling purchase orders for customized 5G ORAN radio products for a major telecommunications provider, which accounted for 42.86% ²¹ of total revenues in 2025, or $10,797,628 ²². In contrast, the largest customer in 2024 represented approximately 13.97% ²³ of revenue through the Spectrum division, with revenues from this customer decreasing from $1,327,942 ²⁴ in 2024 to approximately $830,521 ²⁵ in 2025. The decrease in gross margin percentage is attributed to the lower gross margin profile of the 5G radio product line, which represented approximately 47.67% ²⁶ of total 2025 revenues, as fulfillment was through an existing contract manufacturer under a transitional model. Research and development costs decreased by $903,519 ²⁷, or 25.16% ²⁸, in 2025 to $2,687,176 ²⁹ from $3,590,695 ³⁰ in 2024, mainly due to the completion of the massive MIMO 64T64R Oran Cat B radio network.

During 2025, the company entered into an asset purchase agreement with Titan Crest, LLC to acquire intellectual property for 5G ORAN radio products for an aggregate purchase price of $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 was made on April 24, 2025. The remaining $500,000 ³⁶ in cash and $2,500,000 ³⁷ in restricted common stock are contingent upon the transfer of the 5G ORAN radio products’ technology and intellectual property rights, expected in Q2 2026. The company also entered into an equity distribution agreement for an At-the-Market Offering of up to $25 million ³⁸, though it was not utilized in 2025. A revolving line of credit for up to $750,000 ³⁹ was established with Dime Community Bank, with no outstanding balance as of December 31, 2025. The 2020 Equity Incentive Plan was amended to increase available shares by 2,800,000 ⁴⁰. A rights offering commenced in October 2025, which closed on January 14, 2026, generating approximately $9,072,816 ⁴¹ from Unit Subscription Rights, with net proceeds of approximately $8,103,909 ⁴².

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 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.

The company's research and development initiative to expand its product line of low noise amplifiers to include new 5G and wireless infrastructure products, cryogenic amplifiers, and MMIC designs is progressing significantly. 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. The Massive MIMO, 64T64R ORAN, CAT B Radio Network is expected to become the company's flagship product, offering 16 Layers DL/ 8 Layers UL, CSI-RS and SRS beamforming capabilities, and beam steering technology, providing true 5G speeds with improved signal strength, enhanced coverage, and increased user capacity, adhering to ORAN specifications.

The company has received approximately $5 million ⁴³ in funded purchase orders for its Oran radios as of March 23, 2026. These orders began shipping in late December 2025 and are anticipated to be completed within Q2 of 2026, at which time the company expects to receive additional follow-up orders into 2027. The Second Milestone of the Titan APA, involving the transfer of 5G ORAN radio products' technology and intellectual property rights, is expected to be achieved towards the second quarter of 2026, which will trigger the payment of the remaining $500,000 ⁴⁴ in cash and issuance of $2,500,000 ⁴⁵ in restricted shares of common stock.

The company intends to continue to finance its internal growth with cash on hand and cash provided from operations, borrowings, debt or equity offerings, or some combination thereof. Management believes that its cash provided from operations and cash on hand as of the date of this Report will provide enough working capital to fund operations for the next twelve months. The Amended and Restated 2020 Equity Incentive Plan has 3,487,375 ⁴⁶ shares of common stock available for future issuance as of December 31, 2025.

The company faces risks related to global economic uncertainty and financial market volatility caused by political instability, changes in international trade relationships, and conflicts, such as those in the Middle East or between Russia and Ukraine. These factors could make it more difficult to access financing and adversely affect business and operations. Changes in US trade policy, including the imposition of tariffs, may also have a material adverse impact on the business. For example, while some IEEPA-based tariffs were terminated, tariffs under other authorities remain in effect, and the U.S. government may pursue additional or replacement tariffs.

The company faces several material risks, including significant fluctuations in revenue, earnings, and margins due to economic conditions and other factors, as evidenced by net losses of $7,007,155 ⁴⁷ in 2025 and $11,242,404 ⁴⁸ in 2024, and an accumulated deficit of $28,019,282 ⁴⁹ 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 ⁵⁰ of Oran radios will result in definitive purchase orders beyond the approximately $5 million ⁵¹ in funded orders received as of March 23, 2026. The company has significant customer concentration risk, with one customer accounting for 42.86% ⁵² of total sales in 2025, and the loss of this customer or a reduction in orders could materially impact the business. Supply chain constraints, including semiconductor shortages and increased costs of components and freight, may slow production, delay revenue recognition, and negatively impact gross margins. 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. Changes in product mix, particularly the growth of lower-margin 5G radio products, could cause overall gross margin to decline, as seen in the decrease to 23.93% ⁵³ in 2025 from 36.65% ⁵⁴ in 2024. Product defects, errors, or interoperability issues could damage reputation, incur significant costs, and impair future sales. The company may face costly intellectual property infringement claims and may not be able to obtain or enforce patent protection for its products or maintain trade secret confidentiality. Inaccuracies in customer demand and product mix estimates could negatively affect inventory levels, sales, and operating results. The company has identified material weaknesses in internal control over financial reporting, including lack of segregation of duties and ineffective control over financial statement disclosure, which could lead to material misstatements. The company may need to raise additional capital, which may not be available on favorable terms and could dilute existing shareholders.

Management's message to shareholders emphasizes a strategic pivot towards high-growth technology sectors, particularly 5G/6G, quantum computing, and cybersecurity, by leveraging proprietary IP and trade secrets to develop full systems and subsystems. This strategy is expected to scale products and revenue, positioning the company as a global leader in these emerging markets. Management is focused on product innovation, expanding its customer base, and reducing customer concentration risk through new relationships in 5G infrastructure, satellite communications, and quantum computing markets. The company has received approximately $5 million ⁵⁵ in funded purchase orders for its Oran radios as of March 23, 2026, with shipments starting in late December 2025 and anticipated completion in Q2 2026, expecting additional follow-up orders into 2027. Management expects the gross margin profile of the 5G product line to improve materially as per-unit costs are reduced with the transition to its dedicated production line, anticipating an improvement in blended consolidated gross margin in 2026 and beyond. Strategic priorities include the continued execution of new purchase orders for 5G ORAN radio products, expanding customer relationships in this segment, and improving the profitability of the 5G product line through internal production.