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Nuburu(BURU) - 2024 Q1 - Quarterly Report
BURUNuburu(BURU)2024-05-15 21:25

Revenue and Financial Performance - Total revenue for the three months ended March 31, 2024, was 93,549,comparedto93,549, compared to 469,989 for the same period in 2023, indicating a significant decline in revenue [229]. - Net losses for the three months ended March 31, 2024, were 5,700,653,comparedto5,700,653, compared to 4,767,517 for the same period in 2023, reflecting an increase in losses [229]. - Revenue decreased by 376,440duringthethreemonthsendedMarch31,2024,comparedtothesameperiodin2023,primarilyduetoadecreaseinlasersystemsales[307].−Sellingandmarketingexpensesincreasedby376,440 during the three months ended March 31, 2024, compared to the same period in 2023, primarily due to a decrease in laser system sales [307]. - Selling and marketing expenses increased by 169,334 during the three months ended March 31, 2024, compared to the same period in 2023, attributed to the hiring of new personnel [308]. - Cost of revenue decreased by 355,481duringthethreemonthsendedMarch31,2024,comparedtothesameperiodin2023,mainlyduetoreducedproductionoflasersystems[291].LiquidityandCapitalResources−AsofMarch31,2024,cashandcashequivalentswere355,481 during the three months ended March 31, 2024, compared to the same period in 2023, mainly due to reduced production of laser systems [291]. Liquidity and Capital Resources - As of March 31, 2024, cash and cash equivalents were 231,885, down from 2,148,700asofDecember31,2023,highlightingliquiditychallenges[270].−Thecompanyhasfundedcapitalexpendituresandworkingcapitalrequirementsthroughdebtandequityfinancing,asithasyettogeneratemeaningfulrevenuefromoperations[269].−Thecompanyreceivednetproceedsof2,148,700 as of December 31, 2023, highlighting liquidity challenges [270]. - The company has funded capital expenditures and working capital requirements through debt and equity financing, as it has yet to generate meaningful revenue from operations [269]. - The company received net proceeds of 3,243,079 from the Business Combination, prior to transaction and issuance costs [277]. - The company plans to issue up to $50 million of securities in non-public offerings, with a maximum discount of up to 30% below the market price of its Common Stock [296]. Research and Development - The company anticipates significant increases in research and development expenses as it expands its product portfolio [287]. - The company is focusing on optimizing the BL-250 and BL-300 laser systems, which may impact production levels [291]. - The company expects to require additional engineers and production personnel as it ramps up manufacturing capabilities [284]. Operational Challenges and Strategies - The company expects to incur significant expenses and operating losses for the foreseeable future as it devotes substantial resources to commercializing new products [220]. - The company is implementing measures to improve operational efficiency and reduce costs, including temporary employee furloughs [295]. - The company must redeem the maximum portion of the Preferred Stock in cash at an amount equal to the Original Issuance Price under certain circumstances on the second anniversary of the Closing Date [270]. Customer Adoption and Market Dynamics - The company anticipates that the adoption timeline for customers from first contact to first purchase order may range up to 22-24 months [228]. - The company’s financial results will depend on customer recognition of the benefits of its blue laser technology, which has a lengthy selection process of up to 24 months [280]. - The company has over 220 granted and pending patents and patent applications globally, focusing on blue laser applications and technologies [218].