# Rayton

Producing next generation materials to power the semiconductor industry

- Canonical URL: https://wefunder.com/rayton
- Entity ID: wefunder:company:127376
- Last updated: 2026-06-16T05:02:56Z
- Generated at: 2026-06-16T10:22:21Z

## Quick facts
- Awarded two patents for our semiconductor wafers and the processes required to manufacture them
- Manufacturing process can yield up to 100 times the material as conventional methods
- Our tech has the potential to reduce the price of next-generation electronic wafers by up to 25%
- Backed by over 7,000 investors
- Key $2.5M world-class particle accelerator equipment is on site in Irvine, CA
- Accepted into the NVIDIA Inception Program
- Received a letter of support from a member of the US Congress

## Active fundraises
- wefunder:fundraise:75907: 506(b) successful (USD)
- wefunder:fundraise:75906: 4(a)(6) successful (USD)

## Story
Using patented, particle accelerator-based technology, we are producing engineered wafers that can serve as the basis for next-generation electronics impacting industries such as automotive, aerospace, 5G, LED, and solar.*The above image is CGI representation of a microchip.We believe we have now found a revolutionary new way of impacting multiple markets with our technology. Everything you are doing right now involves some kind of semiconductor. Rayton is pushing the limits of cost-effective production for these materials. We plan to use our technology to create lower-cost Gallium Arsenide wafers for the semiconductor industry as a whole, which can be used in automotive, aerospace, 5G, LED, and solar applications. The material we create serves as the foundation for all of these high-tech devices. Rayton intends to lower the cost of gallium arsenide material and then sell the wafers to the people who make these electronic devices.Rayton has completed the Research and Development stage where we identified the implantation conditions and the recipe needed to make our wafers. We have successfully created a prototype wafer in the laboratory. We are entering the Beta Phase of operations where we plan to use the commercial-grade, high volume equipment to produce samples and are currently in pre-production. We will then begin ramping up to the production of 25 wafers per hour to enter Phase One of production.UPDATEWe’ve officially reached the Beta Phase of our production process. This means we’ve received the world-class particle accelerator needed to move into a high-volume manufacturing phase. The particle accelerator is on site at Ryton's facility in Irvine, CA. This is a huge step forward in terms of production and revenue.*The above image is Rayton's accelerator on-site at our Irvine facility.To paint a picture, the equipment, which came to our new Irvine, CA, headquarters in December, required a 10-ton forklift to move from the truck to the warehouse. *The above images are of Rayton's accelerator's delivery.Once it was inside the warehouse, we then had to get it assembled and hooked up to high voltage power. It’s critical that every single piece of this equipment is installed correctly, which requires diligence (and patience) on our part. The facility build out is well under way; however, there is still work to do in terms of being able to produce sample material. We need to finish commissioning the facility and testing/optimizing the equipment. This will be carried out over the next couple months. *The above image is Rayton's accelerator on-site at our Irvine facility.The ProblemSilicon semi conductors simply don't cut it anymoreSilicon has played an essential role in the semiconductor industry to-date. However, we are now entering an age where certain applications require more expensive semiconductor material than silicon. In the high-frequency and high-power regimes, silicon is not suited to play a strong role.Semiconductors such as gallium nitride, gallium arsenide, and silicon carbide (GaN, GaAs, and SiC) have better electronic properties than silicon and are currently used in the manufacturing of high-speed, high-power electronics. (1) However, the material costs for GaN, GaAs, and SiC are magnitudes higher than silicon.The SolutionA unique process to lower the cost of this revolutionary technologyRayton has developed a unique technology that has the potential to reduce the price point for next-generation electronics by up to 25 percent. Because of this, Rayton can play a vital role in expediting the growth of 5G infrastructure, advanced automotive electronics, cellular technology, solar cells, and more. By lowering supply costs, Rayton achieves considerable market leverage, as we seek to supply all companies fabricating electronics on these advanced materials.*This image is an example of a wafer that Rayton would use in its manufacturing process.The MarketThe markets for products created on our wafers are diverse and increasing in demandIn the fast-growing 5G network, high-power coupled with high-frequency transistors are necessary in transmission towers and mobile handsets. GaN is particularly well suited for such applications. Further, the high-speed receivers in cellular phones will likely be built on GaAs wafers. (2)*Images are computer-generated demo versions.The high-speed and high-bandwidth requirements for the 5G cellular network will require the superior properties of GaAs and GaN. These materials are also used for a wide array of cellular components. In addition, they're necessary for many other products such as proximity sensors, Wi-Fi modules, flood illuminators, and dot projectors for facial recognition (VCSEL).*Images are computer-generated demo versions.The wafers used for fabrication of all these components can seamlessly be replaced by our engineered wafers without any modification of downstream equipment. Thus, Rayton’s end-product can be plugged into existing fabrication facilities, reducing material costs for those manufacturers.There are additional high-potential growth markets that our engineered wafers will significantly impact. These include automotive, aerospace, LEDs, and solar. For instance, modern automotive technologies such as RADAR, LIDAR, 3D Imaging, blind-spot detection, and 5G-based ‘vehicle-to-x’ communication -- many of which are critical for autonomous vehicles --rely upon devices built on GaAs wafers. What we doHow Rayton Changes the Semiconductor Equation*Images are computer-generated representations of Rayton's implantation process.Particle Accelerator TechnologyWe intend to use a high-current, high-voltage proton particle accelerator from Phoenix Laboratories to slice GaAs wafers, reducing waste by up to 50%. Our accelerator costs less and operates with less energy compared to competing particle accelerator methods. Because of this, our particle accelerator is capable of making up to 100 times as many wafers with the same amount of semiconductor material as our competitors use to make just one wafer. We have achieved a proof of concept wafer in the laboratory setting on non-commercial-grade equipment. *Images are computer-generated representations of our wafer product vs existing products. Not to scale.Manufacturing EfficiencyDiamond wire saws are currently the standard for cutting semiconductor materials for the electronics industry. This conventional method involves cutting the raw materials with a physical friction mechanic that wastes half the processed materials and cannot cut materials down to the two micron wafer thickness without significant yield loss or breakage.*Wafer images above are demo version. Not the Rayton wafer.Solar ApplicationsCost-effective, highly efficient, and lightweightRayton intends to continue servicing the solar industry by providing a cost effective solution to high-efficient and light-weight solar cell manufacturing. The record for single junction solar cell efficiency is held by GaAs based solar cells at 28% while silicon solar cells average about 21% in production volumes. These high-efficient GaAs-based solar cells are made using Metal Organic Chemical Vapor Deposition (MOCVD) equipment. A GaAs wafer is placed in a reactive MOCVD chamber, and the solar cell is grown on top of this GaAs wafer. The initial GaAs wafer can be reused, but this step has proven to be a bottleneck in the process.*Images are computer generated renderings. Product is not available on the market.Rayton believes that by bringing down the cost of this initial “building block” wafer, it will reduce the cost of the entire process and unlock these types of solar cells for commercial applications. Rayton plans to sell lower cost GaAs wafers to the companies who utilize MOCVD equipment for their products. There are applications of these high-efficient and light-weight solar cells which aid the world in transforming to a fully renewable source of energy.Where Rayton fits in Engineering state of the art GaAs wafersWhere does Rayton fit into the manufacturing vertical? We would buy GaAs wafers in bulk from producers like Freiberger, and Sumitomo. We would then conduct our process to lower the cost of the GaAs wafer. We would then sell our engineered GaAs wafers to the foundries like VPEC and IQE who grow devices on the wafers. They then sell these devices to the chipmakers who turn them into products used in the retail electronics we are all familiar with.About Our Fabrication ProcessFirst, protons are accelerated within our particle accelerator and implanted a few microns deep into a semiconductor wafer (e.g. GaAs, SiC, or GaN). Second, the implanted wafer is bonded to a less expensive, compatible carrier wafer. For example, sapphire is a good option as the carrier wafer for GaAs bonding. Third, with a thermal annealing process, a thin layer of the semiconductor material is exfoliated from its original wafer, while maintaining the bond with the carrier wafer. This process can be used to produce an engineered wafer that has a device layer of a few microns on a carrier wafer. For instance, two-micron thick layers of GaAs on sapphire can be produced. The advantage of this process is that the original wafer can be reused more than 100 times which produces over 100 engineered wafers for each source wafer.*Images are computer generated renderings of the Rayton processRayton's unique fabrication process makes use of a one-of-a-kind proton implanter jointly designed and built by Rayton and Phoenix Nuclear Labs.*This image is a 3D-CAD renderingThe high current of this proton implanter and a unique set of magnets to shape the proton beam allows for a potential throughput that is much higher than the current industry standard and can produce an estimated $30M USD in annual revenue per production line. We believe Rayton will be well situated in the supply chain for the aforementioned high-speed, high-power electronics industry.Specifically, we will fill the role of providing engineered substrates to epitaxy foundries and fabrication companies that will further develop the electronic components necessary for the 5G network, advanced automotive, cellular components, and other applications.Our Roadmap(300KeV proton implanter at Rayton's manufacturer's facility in Madison, WI)Current StageRayton 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. Then we hope to achieve the following: Once sales agreements are finalized, Rayton will plan to move onto single-line production. Once we are hopefully in a revenue stage, Rayton will plan to 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. Please refer to our Risk Factors in our Form C filing. The information discussed here includes future projections that cannot be guaranteed.A breakdown of estimated costs and revenue for these three phases can be found below:Beta PhaseThe goal of our Beta phase is to hopefully bring us to a full proof-of-concept where we can begin marketing our product. The particle accelerator for producing engineered GaAs wafers is on site at Ryton's facility in Irvine, CA, allowing us to reach our Beta Phase of operations. Rayton does not currently manufacture GaAs wafers at high volume. Current manufacturing capabilities are for sample materials that can be used for testing purposes with potential customers. For example, a potential customer can be sent a Rayton wafer and then run it through their manufacturing lines and further upstream processes to make their devices and test them for quality assurance and performance metrics. Rayton intends to produce sample material by mid to late 2022. Once we have developed the full proof-of-concept and have generated interest from potential customers, additional capital investment will be required. We believe we would need to raise an additional $14M for equipment and operations to manufacture at commercial scale.The estimated timeline of our Beta Phase is 12 months beginning in Year 1 of our new plan, utilizing raised funds to achieve this phase. In creating our projections we 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.Phase OneWe will need to buy additional semiconductor processing equipment to move into a high volume manufacturing phase which could bring us into revenue. We currently estimate that the Company will need about $14M to get into a revenue phase that can generate approximately $9M per year or 120,000 wafers per year. Again, please note these are projections and cannot be guaranteed. The estimated timeline of Phase 1 is 12 months beginning in Year 2 and to achieve this goal we will also utilize raised funds. This means to enter this phase we will require additional fundraising to support this success. If we do not meet our funding goals, we will not be able to enter this phase. 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 expenses 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. These are assumptions are based on our breakdown of the costs currently associated with our product and may vary in the future.Phase TwoWe 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 could increase to the maximum throughput attainable for one accelerator of 432,000 wafers per year. This could possibly generate an estimated $32M per year in revenue. Expenditures on the capital equipment could be reduced through the lease or purchase of used equipment. Again, please note these are forward looking projections, please refer to our risk factors. These assumptions are based on the Company meeting Beta Phase and Phase One successfully. If we do not achieve these phases, Phase Two may not exist in the same capacity. The estimated timeline of Phase 2 is 12 months beginning in Year 3, utilizing a combination of raised funds and company revenue to achieve these goals. We have based our assumptions on the following: we estimate that we will be able to attain $32M in gross revenue in Year 3 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 expenses 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. Please note, these numbers are subject to change and cannot be guaranteed. Our assumptions are based on our analysis of the industry for GaAs wafers and the current need in the market. They are also based on our ability to increase production to scale, if these events do not occur there may be different results.Reminder: The above information includes forward looking statements regarding the Company's business. Please refer to our Risk Factors in our Form C for further details. There is no guarantee the Company will ever meet these projections and the information above includes estimates based on current data, actual results not guaranteed.Why Invest?Let's make history togetherYour investment will help Rayton to develop a full proof-of-concept, which will, in turn, allow us to begin marketing our product. Looking forward; by diversifying the applications of our products, we will be able to strengthen ourselves for market entry. Solar will continue to be a product at our roots, and we will continue to service the high-efficiency solar cell industry. We believe that initially bringing down the cost of GaAs wafers will have a ripple effect in bringing down the overall cost of GaAs-based solar cells.*Image is computer-generated rendering.The markets for our product are diverse and increasing in demand. The GaAs wafer market was $316.49M in 2019 and growing with a 7.2% compound annual growth rate (8). The overall GaAs device market is expected to grow to $22 billion by 2026 (9). We would like to enter this market with a “product zero” engineered GaAs wafer that we believe can be sold to the market at up to a twenty-five percent (25%) discount to competitive prices.Our technology is positioned to have a major impact in many industries. We are getting closer every single day. We have the machine, we have the patents, and we have the process flow. We are making history as one of the first democratically-funded technology companies. Join the 7,000 other shareholders who invested in Rayton and become part of this groundbreaking next-generation technology.

## FAQ
1. **What are the patents that you have?**
   - Thanks Bobby – you can find our patents and the links to them below: Float zone silicon wafer manufacturing system and related process US 9,499,921 https://image-ppubs.uspto.gov/dirsearch-public/print/downloadPdf/9499921 Processes and apparatuses for manufacturing wafers US 9,404,198 https://image-ppubs.uspto.gov/dirsearch-public/print/downloadPdf/9404198 Let us know if you have any further questions!
2. **Hi Andrew, I invested via StartEngine 3 years ago. I would like to add on to that, but really can't because you have sett your minimum investment so high (again). As per SEC rules for CF investments, many 'small investors' can only invest $2,500 for an entire year. Your high m...**
   - We thank you for your previous investment and continued support. We do apologize that the minimum is above your barrier to entry this time. We have had it set at approximately $500 for all of our previous 4 raises, and assumed that since it has worked in the past then we shouldn’t change it because doing so would add unknown uncertainties which we are trying to minimize. Being the engineers we are – we try to minimize the amount of variables. However; I appreciate your perspective and I will ...
3. **So to get through Beta phase and phase 1 and to generating revenue. You are projecting you’ll need to raise 24 Million next 2-3 years (12 million per phase). Are you planning on raising that all through crowdfunding or you looking at possible VC funding also? I may have got so...**
   - We anticipate needing to raise around $700K to get through the Beta Phase where we aim to produce sample materials. Once the full proof of commercial production capabilities is complete then we believe this milestone will help with raising the funds for Phase One. For Phase One we currently estimate that the Company will need about $14M to get into a revenue phase that can generate approximately $9M per year or 120,000 wafers per year. We are looking at possible VC or strategic partner fundin...
4. **any updates? what is the estimated ROI say in 5 to 10 years**
   - We are continuing to raise the funds needed to produce sample wafers on our production grade equipment. We estimate that we need approximately $700K for this phase. We cannot say exactly what the ROI is, but in 5 years we would like to have completed Phase 2 of production and be manufacturing 90 wafers per hour or $32M per year in revenue.
5. **What is the price per share for this round?**
   - The price per share this round is $0.35/share

## Team
- Andrew Yakub (CEO, Chairman of the Board, Secretary, and Treasurer)
- Dr. James Rosenzweig (Director)
- Robert Julian (Director)

## Q&A
- Q: I invested in Rayton 6 years ago on StartEngine and the price per share was $1.52 and now the price per share is $0.35. Was there a reverse stock split or is my ROI from my initial investment gone down by 4x?
  - A: The 2017 price per share under the regulation A+ offering was $1.52, and the offering currently is at $0.35 per share. The current value of those shares purchased in 2017 are $0.35, and we would like to affirm that since it is an illiquid investment there is time for the company to grow into the 2017 valuation and beyond. At the time of our 2017 offering under Regulation A+, we believed that the valuation was in line with where it should be as a pre-revenue company with innovative technology that could dramatically impact the photovoltaic market. For instance, Solar City’s acquisition of Silevo in 2014 for $200 million influenced our valuation decision. We never obtained a third-party analysis to determine the valuation, and it was always the belief of management. While we maintain that we can achieve our Regulation A+ valuation as a company, we have pivoted and entered a new industry at a new market time. The reasoning behind the pivot and the challenges we experienced since the Regulation A+ offering are described in more detail in our ongoing reports filed with the Securities and Exchange Commission. We believe these new terms are appropriate for the pivot and market timing.
- Q: Can you explain why the CEO keeps loaning the company money at 10% interest rates instead of investing in the company? "In November 2018, the Company entered into three convertible notes with related parties. The first note was with a relative of the Company’s Chief Executive Officer, and has a principal balance of $166,000. The second note was with the Company’s Chief Executive Officer (“CEO”), and has a principal balance of $185,800. The third note was with a company that is co-owned by the Company’s CEO, and has a principal balance of $70,000. These notes accrue interest at 10% per annum and mature in November 2021" - https://www.sec.gov/Archives/edgar/data/1654124/000110465922101975/tm2226383d1_1sa.htm
  - A: In 2018 Mr. Yakub invested $255K into Rayton through convertible notes. These convertible notes were also offered to other accredited investors at the time, and so Mr. Yakub kept the structure of his investment the same as those. Convertible notes are used as an investment vehicle when a valuation is not yet determined for the company. There are no monthly payments required under the convertible notes and they do convert to common stock. In 2019 – 2020 Rayton issued a Regulation CF convertible note round in which over 1,000 investors took part. Rayton is currently offering a price round at $0.35 per share.
- Q: What is the price per share for this round?
  - A: The price per share this round is $0.35/share
- Q: For Several Years, Andrew Yakub Did Not Answer Investors Questions. Why Is He The Only Employee? Can People Trust Andrew? Please Update Investors Questions Andrew.
  - A: Hi Raymond, I apologize if the communication has not been to your preference. Yes, there have been times when a few weeks would go by without the company responding to comments online. It has never been to the length of years. We have been filing all of our SEC documents multiple times a year including the forms 1-K, 1-SA, and C-AR. I am the only full time employee because we have been running efficiently. We have been contracting most work out to part time contractors since their services have not been needed full time. The proceeds of this round will go towards building out our full time team again. Here is what we have accomplished with previous funds: - Purchased the $2.38M particle accelerator. It was factory tested and certified to perform with a world class beam current of 75mA and 300KeV beam energy; - Assembled this equipment at our site in Irvine, CA; - Installed high voltage power lines for the facility; - Installed 30KW of cooling and the infrastructure to service our equipment; - Designed and manufactured a custom end chamber system; - Simulated and designed custom cooling plate and magnet systems, and manufactured the cooling plate; - Engineered a recipe for GaAs wafers and successfully tested it on non-production grade equipment. Here is what we still need to do: - Purchase sulfur hexafluoride (insulating) gas management system; - Bring installation and training crew onsite; - Hire personnel to be trained; - Install, test, and debug end chamber systems; - Implant wafers with the beam so that they can be processed into sample wafers; - Process wafers in UCLA or UCI nano fabrication facility; we need to process the implanted wafers using our proprietary thermal steps in a cleanroom facility in order to create an engineered sample wafer that can then be sent out to potential customers. The equipment to conduct these processing steps can be rented at the UCLA or UCI facilities. Such a process is what we conducted in 2018.
- Q: How many employees work for Rayton on salary? The company raised $8 million on StartEngine in 2017 yet in a recent SEC filing it was written "Substantial Doubt about the Company’s Ability to Continue as a Going Concern" - https://www.sec.gov/Archives/edgar/data/1654124/000164460022000075/raytoncar2021v2.pdf (page 1)
  - A: The company currently has one full time employee, Andrew Yakub. Our next step is to hire additional personnel and create sample wafers made on commercial grade equipment. We believe that we need to raise another $700K to do this. We have arrived at this figure because we accomplished this type of development with gallium arsenide in 2018 on equipment that is not high-volume, but that produces a similar implanted wafer as what we would obtain with commercial equipment. It cost us approximately $700K to run the engineering team to reach this goal, and now that we have the production grade equipment we need to do it again. Here is what we have accomplished with previous funds: - Purchased the $2.38M particle accelerator. It was factory tested and certified to perform with a world class beam current of 75mA and 300KeV beam energy; - Assembled this equipment at our site in Irvine, CA; - Installed high voltage power lines for the facility; - Installed 30KW of cooling and the infrastructure to service our equipment; - Designed and manufactured a custom end chamber system; - Simulated and designed custom cooling plate and magnet systems, and manufactured the cooling plate; - Perfected a recipe for GaAs wafers and successfully tested it on non-production grade equipment. Here is what we still need to do: - Purchase sulfur hexafluoride (insulating) gas management system; - Bring installation and training crew onsite; - Hire personnel to be trained; - Install, test, and debug end chamber systems; - Implant wafers with the beam so that they can be processed into sample wafers; - Process wafers in UCLA or UCI nano fabrication facility; we need to process the implanted wafers using our proprietary thermal steps in a cleanroom facility in order to create an engineered sample wafer that can then be sent out to potential customers. The equipment to conduct these processing steps can be rented at the UCLA or UCI facilities. Such a process is what we conducted in 2018.
- Q: Why does Mr. Yakub (CEO) keep taking out loans in Rayton's name against companies he owns? "The proceeds will be used to repay $150,000 in debt to ReGen America, Inc., 50% of which is owned by Mr. Yakub, incurred for the payment of a co-engineering development fee." - This company raised over $8 million in 2017 on Start Engine. Why is it taking out a $150K loan? Why can't Mr. Yakub just invest in Rayton?
  - A: In 2018 Mr. Yakub invested $255K into Rayton through convertible notes. These convertible notes were also offered to other accredited investors at the time, and so Mr. Yakub kept the structure of his investment the same as those. Convertible notes are used as an investment vehicle when a valuation is not yet determined for the company. There are no monthly payments required under the convertible notes and they do convert to common stock. In 2019 – 2020 Rayton issued a Regulation CF convertible note round in which over 1,000 investors took part. Rayton is currently offering a price round at $0.35 per share. The funds from the previous rounds were used to construct a state of the art particle accelerator which powers our proprietary process. We ran an engineering team to nail down our exact wafer production process and design the systems that will be used in the Beta Phase of operations. Additionally, we studied the industry and met with leading research institutions to find the product which offers Rayton the path of least resistance to a revenue generating phase.
- Q: Can anyone provide an update on how long before they reach the production phase?
- Q: Greetings, When will we get new updates.
- Q: Hello, great potential. Appreciate the pivot. Coming in late so sorry if duplicate questions. I read the intro and some Q&A and have some questions. 1. Do you have prospective customers that you have spoken with that are open to changing their mfg process? I see the potential; where is the rubber to the road? 2. How is a one-person corp valued at $54m with no sales yet? This is a real question. How do you arrive at this number? 3. Who are your competitors that provide SI alternatives with a smaller footprint? Thank you.
  - A: Hi Jeremy, 1) Recently, there has been a large multinational corporation who has reached out to us about helping them with their GaN production. We currently have our engineers in the laboratory working on producing GaN wafers for this company as well as others. 2) In determining our pre-money valuation for the previous round, we looked at the closest available public market comparable in our industry, Soitec. We took their revenue from 2021, and 2020 and compared it to their market capitalization. Soitec's average ratio of market capitalization to gross revenue is 6.788 over these past 2 years. We took Rayton's anticipated Phase One revenue of $9M and multiplied it by the 6.788 multiple to attain a valuation of $61.092M. We have reduced our valuation to $57,904,985.60 or $0.35 per share for this offering. While it will require approximately $14M for Rayton to achieve $9M per year in revenue, we believe that the majority of the $14M can be raised on debt against equipment. The Company set its valuation internally, without a formal-third party independent evaluation based on the belief and research of management. During these comparison years Soitec is a late stage company with decades of revenue. Rayton is currently not in this stage and we are projecting for a later date when we are in revenue. We believe that once we are in Phase I the similarities to Soitec during the revenue years we analyzed will be that we are manufacturing wafers at a high volume and selling them to the semiconductor industry. 3) For certain applications, such as 3-D dot projectors for facial recognition, there is no SI alternative. Our competitors for GaAs and GaN are companies like Sumitomo, and Soitec.
- Q: The cost of a single coat beginning or "seed" wafer is negligible when compared to the completed product on a 12 inch wafer. What is the value proposition for a company to purchase from you when transit time back and forth to Irvine from the major manufacturing sites in Asia in particular are less than dynamic? Samsung, TSMC and others bulk manufacturers begin starts on thousands of wafers a day. Wouldn't the better investment be in licensing your technology rather than trying to complete with these behemoths?
  - A: Hi Jim, Thank you for your questions. We do not aim to compete with Samsung or TSMC. Currently those companies do not make their own wafers, and rely on other companies to sell them wafers. When you look at compound semiconductors such as GaAs – the cost of the seed wafer is significant. 100x more expensive than Si for GaAs, and over 1,000x more for GaN. Our value proposition is up to a 25% discount on the market value for wafers that companies process into devices. This equates to tens of millions of dollars saved per year for certain companies. We aim to ship 120,000 - 432,000 wafers per year to future customers, and would only need to ship the wafers once – I would like to clarify that there is no need for them to be sent back and forth. We do not see shipping this many wafers to our future customers as being prohibitive to our business model and believe it to be a well understood aspect of the industry. We believe licensing would be difficult and expensive for us to enforce worldwide, and thus have opted to manufacture and sell our wafers. Also, part of our mission is to bring back US based manufacturing, so we plan to do that right here in America!
- Q: Why would a chipmaker buy from you with a single "oven" for CVD GaaS when companies like Applied Materials and Lam Research have higher thru-put devices available with a smaller footprint?
  - A: Hi Jim, We do not utilize a CVD reactor, and thus do not compete with Applied Materials or Lam Research. The CVD reactor step would occur after our step. We take a wafer made in a conventional way, usually through a Czochralski process, and then utilize our ion implanter to extract ultra thin layers, approximately 2 microns, and then bond that extracted layer to a less expensive handle wafer. The extracted layer is up to 100 times thinner than the original Czochralski process wafer. The handle wafer is of conventional thickness so that this new engineered wafer can be run through conventional semiconductor processing equipment. The CVD equipment you mentioned would be part of the downstream steps one would need to conduct in order to make a device. We would sell to the people with this equipment, and you can make a range of different devices depending on what downstream steps you do. We are aiming to produce 120,000 wafers per year in Phase 1 and 432,000 wafers per year in Phase 2. These targets are in line with competitive industry throughput for a manufacturing facility.
- Q: What is the price of each share of Rayton??,
  - A: Hi George, The price this round is $0.35 per share.
- Q: On two different occasions I invested $500 in Rayton. I realize that only over time will this investment provide a payback of sorts. What is a realistic time frame for Rayton to begin to pay any kind of dividend for the investments made in the past?
  - A: Hi Mark, Everyday we work towards bringing the company into a revenue stage. We would not be able to pay dividends until at least this stage. Provided that the company is able to raise enough funds to run and operate our equipment – it would take 8-12 months to generate revenue from that point.
- Q: Can I get a refund
  - A: Hi Loretta, Rayton is not offering any stock buybacks at this time.
- Q: I invested in Rayton in 2019 via startengine on a convertible note. My understanding is I should have been sent a check, but startengine is saying I have shares yet won't produce any evidence of my shares. I've tried contacting rayton multiple times regarding my investment and they refuse to reply. I'd like more information regarding my investment in this company made over 3 years ago. If I have shares, how many? Where is the proof the convertible note converted to shares? where can I sell these shares?
  - A: Hi Matthew, I will email you. The convertible notes converted to shares in Rayton. Start Engine told us that they sent an email about this to all the noteholders from that round, but we do not have a record of that email either. We have you on file and I will email you with the details in terms of how many shares you have, etc.