Nuburu(BURU) - 2023 Q3 - Quarterly Report

Revenue Performance - The company reported a revenue decrease of $681,410 for the three months ended September 30, 2023, compared to the same period in 2022, primarily due to a reduction in laser system sales[57]. - Total revenue for the three months ended September 30, 2023, was$186,743, a decrease from $868,153 in the same period of 2022, representing a decline of approximately 78.5$1,710,794, an increase of 70.1% compared to $1,005,528 for the same period in 2022[242]. - The Company recognized$32,500 of revenue from contract liabilities during the nine months ended September 30, 2023, compared to nil in the same period of 2022[244]. Expenses and Losses - General and administrative expenses increased by $4,278,400 during the nine months ended September 30, 2023, compared to the same period in 2022, driven by higher professional fees related to legal, compliance, and accounting matters[63]. - Total operating expenses for the three months ended September 30, 2023, were$4,207,682, an increase of 44% from $2,918,935 in the same period of 2022[155]. - The net loss for the three months ended September 30, 2023, was$(5,085,301), compared to $(3,923,219) for the same period in 2022, reflecting a 29.6$15,959,530, compared to a net loss of $10,106,564 for the same period in 2022[173]. - The company anticipates incurring net losses for the foreseeable future, with no guarantee of achieving profitability even with increased revenue[199]. Cash Flow and Liquidity - Net cash used in operating activities was$13,259,181 for the nine months ended September 30, 2023, compared to $7,287,836 for the same period in 2022, reflecting increased operating expenses and changes in working capital[69]. - Cash and cash equivalents as of September 30, 2023, were$1,626,730, down from $2,880,254 as of December 31, 2022, indicating a decrease of approximately 43.6$1,626,730, down from $4,047,780 at the end of September 2022[173]. - The company has incurred operating losses and negative cash flows from operating activities since inception, indicating ongoing financial challenges[199]. Inventory and Assets - The company recorded a one-time charge of$868,002 to increase the AO-650 inventory reserve during the nine months ended September 30, 2023, due to the transition from the NUBURU AO series to the BLTM series[62]. - The company reported a significant increase in excess and obsolete inventory reserve adjustments, totaling $868,002 for the nine months ended September 30, 2023[173]. - The company’s inventories, net, increased to$1,086,741 as of September 30, 2023, from $972,695 as of December 31, 2022[208]. - The total assets as of September 30, 2023, were$9,094,896, down from $13,122,172 as of December 31, 2022, a decrease of approximately 30.5$9,225,000 from the issuance of convertible notes and warrants in June 2023[177]. - The company has entered into a Lincoln Park Purchase Agreement, raising approximately $2,100,000 of common stock during the nine months ended September 30, 2023[177]. - The Company issued Convertible Notes with a principal amount of$9,225,000, bearing an interest rate of 7.0% per annum, payable by June 23, 2026 or upon an Event of Default[270]. Business Operations and Strategy - The company announced the commercial launch of the BL-250 laser in January 2023 and the BL-1Kw in June 2023, shifting focus to manufacturing and shipping the BL series[49]. - The company aims to enhance productivity and cost efficiency for manufacturers in various sectors, including e-mobility and aerospace, through its high-power blue laser technology[45]. - The company expects selling and marketing expenses to rise in future periods as it expands its sales force and marketing efforts[55]. - The company expects to continue expanding operations by investing in manufacturing, sales and marketing, research and development, and infrastructure to support growth[199].