Rayton plans to use this fundraising round for the advancement of our beta phase production. During this phase, Rayton will produce engineered wafers in-house to sample out to epitaxy and wafer foundries for high-speed high-power electronic components. 

Once sales agreements are finalized, Rayton will then move onto single-line production. Once in revenue, Rayton will invest in more equipment to increase the throughput of the single accelerator line to reach the maximum production capability of the full-line production phase. 

We will need to buy additional semiconductor processing equipment to move into a high volume manufacturing phase which will bring us into revenue. We will need about $14M to get the company into a revenue phase that can generate approximately $9M per year or 120,000 wafers per year.

The estimated timeline of Phase 1 is 12 months beginning in Year 2. We estimate that we will be able to attain $9M in gross revenue per year provided that the company is able to attain approximately $10.12M in production equipment.

We estimate that in this phase there will be $1.965M in operating expense and $2.52M in COGS. This assumes $100 per GaAs wafer with 100 uses per wafer and $20 per wafer for the handle substrates. We assume 2 shifts per day at 8 hours per shift with 300 days of operation in the year. We assume that our wholesale price per wafer would be $75.

The Beta phase will bring us to a full proof-of-concept where we can begin marketing our product. We need to make the final payment on the accelerator once testing is complete. This is in the amount of $954K. We have already paid about $1.4M on the accelerator. The rest of the proceeds will go towards operating the company to create samples and prepare us to raise additional capital.

The estimated timeline of our Beta Phase is 12 months beginning in Year 1. In creating our projections, we relied on assumptions that the Company will be able to make the final payment on the accelerator which is required for our product and begin using it to build sample materials. We also assume that the company will be able to create sample materials with the funds available and we estimate operating costs during this phase to be approximately $60K per month.

We need to add on the additional semiconductor processing equipment in order to increase the throughput of the full manufacturing line. By adding this additional equipment, we can increase to the maximum throughput attainable for one accelerator of 432,000 wafers per year. This will generate an estimated $32M per year in revenue. Expenditures on the capital equipment could be reduced through the lease or purchase of used equipment.

The estimated timeline of Phase 2 is 12 months beginning in Year 3. We estimate that we will be able to attain $32M in gross revenue per year provided that the company is able to attain approximately $15.5M in additional production equipment. We estimate that in this phase there will be $5.197M in operating expense and $9.072M in COGS. This assumes $100 per GaAs wafer with 100 uses per wafer and $20 per wafer for the handle substrates. We assume 2 shifts per day at 8 hours per shift with 300 days of operation in the year. We assume that our wholesale price per wafer would be $75.