Nuburu(BURU) - 2023 Q4 - Annual Report

Financial Performance - The company reported a net loss of $20,706,384 for the year ended December 31, 2023, compared to a net loss of$14,129,101 for the previous year, representing a 46% increase in losses [351]. - Revenue for the year ended December 31, 2023, was $2,085,532, an increase of 45$1,440,428 in 2022 [364]. - Cost of revenue increased to $5,695,433 in 2023 from$4,859,599 in 2022, resulting in a gross margin loss of $3,609,901 [364]. - Total operating expenses rose significantly to$18,225,819 in 2023, up from $10,578,618 in 2022, driven by increases in research and development, selling and marketing, and general and administrative expenses [364]. - The net loss for the year ended December 31, 2023, was$20,706,384, compared to a net loss of $14,129,101 in 2022, reflecting a worsening of approximately 46$0.63 for 2023, an improvement from a loss of $2.59 per share in 2022 [364]. Cash Flow and Financing - Cash used in operating activities was$17,540,163 for 2023, up from $10,227,730 in 2022, indicating a 72$9,225,000 from the issuance of Senior Convertible Notes and Warrants in June 2023, and $5,000,000 from Junior Notes and Warrants in November 2023 [351]. - The company reported a net cash provided by financing activities of$17,976,360 in 2023, compared to $7,636,447 in 2022, representing a 135$100,000,000 from the Lincoln Park Purchase Agreement [351]. - Cash and cash equivalents at the end of the period were $2,148,700, down from$2,880,254 at the beginning of the period, a decrease of 26% [361]. Operational Efficiency and Cost Management - The company has initiated measures to improve operational efficiency and reduce costs, including temporary furloughs of employees, to align costs with anticipated near-term revenue [324]. - The company is implementing Six Sigma Lean methodologies to enhance manufacturing processes and reduce costs, aiming to improve product quality and decrease defects [327]. - The company anticipates requiring additional engineers and production personnel as manufacturing ramps up to meet customer demand [327]. - The company has incurred additional annual expenses as a public company, including costs related to directors' and officers' liability insurance and increased personnel costs [323]. Customer Dependence and Revenue Concentration - As of December 31, 2023, two customers accounted for 39% and 29% of the company's revenue, indicating a significant reliance on a small number of customers [336]. - The company has not experienced any collection issues with accounts receivable, indicating a stable financial position regarding customer payments [335]. - Revenue increased by $645,104 during the year ended December 31, 2023, driven by a$346,000 increase from additional shipments of BLTM-250 lasers and $296,000 from government contracts [389]. Research and Development - Research and development expenses increased to$5,462,680 in 2023, up from $4,546,057 in 2022, indicating a focus on technology development [364]. - The company anticipates continued investment in research and development to enhance existing products and develop new technologies [381]. - Research and development expenses rose by$916,623 in 2023, mainly due to an increase of approximately $1,600,000 in personnel expenses [389]. Marketing and Sales - Selling and marketing expenses surged to$1,539,690 in 2023, compared to $708,144 in 2022, highlighting increased efforts in market outreach [364]. - Selling and marketing expenses increased by$831,546 during the year ended December 31, 2023, attributed to higher personnel costs, including expenses related to a new Chief Marketing and Sales Officer [389]. Financial Position and Liabilities - The total current liabilities decreased from $14,590,504 in 2022 to$10,028,688 in 2023, reflecting a reduction in financial obligations [341]. - The company has an accumulated deficit of $81,898,692 as of December 31, 2023, compared to$61,192,308 at the end of 2022, reflecting a 34% increase in the deficit [362]. - Total current assets decreased to $4,293,509 in 2023 from$8,485,401 in 2022, a decline of 49% [361]. Risks and Future Outlook - The company is subject to risks including rapid technological change and dependence on key individuals, which could materially affect future operating results [331]. - Future operations are subject to risks including the need for further technology development and securing long-term financing [368]. - The company expects to incur net losses for the foreseeable future while expanding operations and investing in manufacturing, sales, and marketing [391]. Internal Controls - No changes in internal control over financial reporting were reported [407]. - Management's report on internal controls over financial reporting was evaluated [405]. - No disagreements with accountants on accounting and financial disclosure were noted [409].