Rayton

Evolving the Semiconductor Industry

Rayton

Evolving the Semiconductor Industry

Irvine, CA
Technology
Rayton Solar, Inc. (dba Rayton) uses patented, particle accelerator-based technology to produce engineered wafers that can serve as the basis for next-generation electronics impacting industries such as automotive, aerospace, 5G, LED, and solar. We are currently in our Beta Phase of our product and still in development.

$3,441

raised
$8,554,600
previously crowdfunded
5
Investors
$57.7M
Valuation
$0.35
Price per Share
$500.15
Min. Investment
Common
Shares Offered
Equity
Offering Type
$3.01M
Offering Max
Reg CF
Offering

$3,441

raised
$8,554,600
previously crowdfunded
5
Investors
$57.7M
Valuation
$0.35
Price per Share
$500.15
Min. Investment
Common
Shares Offered
Equity
Offering Type
$3.01M
Offering Max
Reg CF
Offering

Stack Owner's Bonus & Rewards!

Members get an extra 10% shares in addition to rewards below!

Rewards

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$500+
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StartEngine Owner’s Bonus
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2
days
22
hours
14
mins
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Reasons to Invest

Manufacturing process can yield up to 100 times the material as conventional methods.
Awarded two patents for our groundbreaking semiconductor wafers and the processes required to manufacture them.
Backed by over 7,000 investors.

Evolving the Semiconductor Industry

*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.

UPDATE



We’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. 


Update: Please note that as of September 2022, the Company no longer has cash on hand which is why we are fundraising. Further, the Company has defaulted on prior convertible notes which are due. Please review all of our offering materials for full details on these convertible notes, refer to our Risk Factors and Company Securities section for more details. Without additional funds, this may lead to potential risks for the company to continue operating on an ongoing basis. 


*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 Problem


Silicon semi conductors simply don't cut it anymore

Silicon 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 Solution


A unique process to lower the cost of this revolutionary technology

Rayton 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 Market


The markets for products created on our wafers are diverse and increasing in demand

In 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. (4, 5, 6, 7)


(Sources: 2, 4, 5, 6, 7)

What We Do


How Rayton Changes the Semiconductor Equation

*Images are computer-generated representations of Rayton's implantation process.


Particle Accelerator Technology


We 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 Efficiency


Diamond 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 Applications


Cost-effective, highly efficient, and lightweight

Rayton 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 wafers

Where 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 Process


First, 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 process


Rayton'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 rendering


The 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 Stage

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. 


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 Forward Looking Information legend at the end of our Campaign Page along with reading 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 Phase


The 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 One

We 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 Two

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 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.vExpenditures 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 & legend at the end of our Campaign Page. 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 and our Forward Looking Information legend at the bottom of this Campaign Page 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


Lets make history together

Your 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.


Source 8: 99Strategy report "Gallium Arsenide (GaAs) Wafer Market Research: Global Status & Forecast by Geography, Type & Application (2016-2026)"

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Offering Summary


Company

:

Rayton Solar, Inc.

Corporate Address

:

16600 Aston St, Irvine, CA 92606

Offering Minimum

:

$9,999.85

Offering Maximum

:

$3,010,999.95

Minimum Investment Amount

(per investor)

:

$500.15











Terms


Offering Type

:

Equity

Security Name

:

Common Stock

Minimum Number of Shares Offered

:

28,571

Maximum Number of Shares Offered

:

8,602,857

Price per Share

:

$0.35

Pre-Money Valuation

:

$57,729,621.25











*Maximum Number of Shares Offered subject to adjustment for bonus shares. See Bonus info below.

Voting Rights of Securities Sold in this Offering

Voting Proxy. Subscriber shall appoint the Chief Executive Officer of the Company (the “CEO”), or his or her successor, as the Subscriber’s true and lawful proxy and attorney, with the power to act alone and with full power of substitution, to, consistent with this instrument and on behalf of the Subscriber, (i) vote all Securities, (ii) give and receive notices and communications, (iii) execute any instrument or document that the CEO determines is necessary or appropriate in the exercise of its authority under this instrument, and (iv) take all actions necessary or appropriate in the judgment of the CEO for the accomplishment of the foregoing. The proxy and power granted by the Subscriber pursuant to this Section are coupled with an interest. Such proxy and power will be irrevocable. The proxy and power, so long as the Subscriber is an individual, will survive the death, incompetency and disability of the Subscriber and, so long as the Subscriber is an entity, will survive the merger or reorganization of the Subscriber or any other entity holding the Securities. However, the Proxy will terminate upon the closing of a firm commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933 covering the offer and sale of Common Stock or the effectiveness of a registration statement under the Securities Exchange Act of 1934 covering the Common Stock.

FORWARD-LOOKING INFORMATION LEGEND

THE OFFERING MATERIALS MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD-LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.

PLEASE REFER TO OUR NOTICE OF DEFAULT IN OUR OFFERING MATERIALS REGARDING THE COMPANY'S CURRENT OUTSTANDING CONVERTIBLE NOTES.

Investment Incentives and Bonuses*

Time-Based:

Friends and Family Early Bird

Invest within the first 48 hours and receive 20% bonus shares.

Early Bird

Invest within the first week and receive 10% bonus shares.

*In order to receive perks from an investment, one must submit a single investment in the same offering that meets the minimum perk requirement. Bonus shares from perks will not be granted if an investor submits multiple investments that, when combined, meet the perk requirement. All perks occur when the offering is completed.

The 10% Bonus for StartEngine Shareholders

Rayton Solar, Inc. will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.

This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Common Stock at $0.35 / share, you will receive 110 shares of Common Stock, meaning you'll own 110 shares for $0.35 / share. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.

This 10% Bonus is only valid during the investors eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are canceled or fail.

Investors will receive the highest single bonus they are eligible for among the bonuses based on the amount invested and time of offering elapsed (if any). Eligible investors will also receive the Owner’s Bonus in addition to the aforementioned bonus.

Irregular Use of Proceeds

The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Salary payments made to one’s self, a friend or relative. Vendor payments. Any expense labeled “Travel and Entertainment”. Inter company debt or back payments.

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Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$2,769,234.00 USD
$1,770,584.00 USD
Cash And Cash Equivalents
$575,168.00 USD
$10,109.00 USD
Accounts Receivable
$0.00 USD
$0.00 USD
Short Term Debt
$835,373.00 USD
$346,934.00 USD
Long Term Debt
$9,280.00 USD
$582,813.00 USD
Revenues And Sales
$0.00 USD
$0.00 USD
Costs Of Goods Sold
$0.00 USD
$0.00 USD
Taxes Paid
$800.00 USD
$800.00 USD
Net Income
-$642,901.00 USD
-$1,061,719.00 USD

Risks

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.


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