Revenue Performance - Total revenue for the three months ended September 30, 2024, was $186,743, compared to $0 for the same period in 2023, with net losses of $4,377,522 and $5,085,301 respectively[150] - For the nine months ended September 30, 2024, total revenue was $142,827, down from $1,710,794 in 2023, with net losses increasing to $22,765,563 from $15,959,530[150] - Nuburu's revenue for the three months ended September 30, 2024, decreased by $186,743 compared to the same period in 2023, primarily due to cost reduction measures including employee furloughs[186] - Revenue decreased by $1,567,967 for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to cost reduction measures including employee furloughs[195] - Revenue for 2024 was $142,827, a decrease of $1,567,967 compared to $1,710,794 in 2023, representing a decline of approximately 91.66%[222] Expenses and Cost Management - Cost of revenue decreased by $755,753 during the same period, attributed to a reduction in direct labor costs of approximately $383,000 and direct job costs and materials of approximately $326,000[187] - Research and development expenses decreased by $1,141,976, mainly due to lower personnel costs of approximately $1,010,000 and reduced spending on the BLTM series[188] - Selling and marketing expenses decreased by $410,182, primarily due to lower personnel costs and consulting expenses[189] - General and administrative expenses decreased by $394,520, driven by reduced compliance costs and personnel costs, partially offset by increased professional service costs[190] - Cost of revenue decreased by $2,862,772 during the nine months ended September 30, 2024, mainly due to a reduction in direct job costs and materials related to decreased production of laser systems[196] - Research and development expenses decreased by $2,643,816 for the nine months ended September 30, 2024, primarily due to lower personnel costs and reduced spending on the BLTM series[197] - Selling and marketing expenses decreased by $680,324 during the nine months ended September 30, 2024, attributed to lower personnel costs and the reversal of stock compensation expenses[198] - General and administrative expenses decreased by $1,468,429 for the nine months ended September 30, 2024, driven by reduced compliance costs and personnel expenses[199] Financial Position and Cash Flow - Cash and cash equivalents decreased to $232,075 as of September 30, 2024, down from $2,148,700 as of December 31, 2023[206] - Net cash used in operating activities was $5,499,839 for the nine months ended September 30, 2024, a decrease from $13,259,181 in the same period in 2023[214] - Net cash provided by financing activities was $3,583,214 for the nine months ended September 30, 2024, compared to $13,148,567 for the same period in 2023[217] - Net cash used in operating activities for the nine months ended September 30, 2024, was $(5,499,839), down from $(13,259,181) in 2023, indicating improved cash flow management[229] - The company reported no off-balance sheet arrangements as of September 30, 2024, indicating a stable financial position[230] Losses and Financial Outlook - The company expects to incur significant expenses and operating losses as it continues research and development and seeks to commercialize its products[151] - The company anticipates continued net losses for the foreseeable future, raising substantial doubt about its ability to continue as a going concern[207] - Net loss for the nine months ended September 30, 2024, was $22,765,563, compared to a net loss of $15,959,530 for the same period in 2023[207] - Net loss for the three months ended September 30, 2024, was $(4,377,522), compared to $(5,085,301) in 2023, indicating a reduction in losses of approximately 13.91%[228] Capital and Financing Activities - A reverse stock split of 1-for-40 was executed on July 23, 2024, following stockholder approval[155] - The company entered into a Securities Purchase Agreement on April 3, 2024, for $3,000,000 in new shares, but only $644,936 has been advanced[156] - During the three months ended September 30, 2024, the company issued 665,410 pre-funded warrants for total cash proceeds of $600,000[157] - The company has negotiated a Master Agreement with Liqueous LP for a strategic financing framework, including an immediate capital infusion of $3.0 million[162] - The effective interest rate of the August 2024 Convertible Notes was 180.2% as of September 30, 2024[161] Gains and Liabilities - A gain of $369,674 was recorded in the change in fair value of warrant liabilities for the third quarter of 2024, compared to a gain of $167,108 in the same period of 2023[193] - A gain of $141,100 was recorded in the change in fair value of derivative liability, which was not present in the third quarter of 2023[194] - A loss on extinguishment of debt of $1,339,017 was recorded for the three months ended September 30, 2024, related to the issuance of shares to extinguish principal and accrued interest under Senior and Junior Notes[194] Non-GAAP Measures - The company utilizes non-GAAP measures such as EBITDA and Free cash flow to assess operational performance, which may not be comparable to similar measures from other companies[224] - EBITDA for the nine months ended September 30, 2024, was $(19,364,982), compared to $(15,506,324) in the same period of 2023, reflecting a decline of approximately 24.06%[228] - Free cash flow for the nine months ended September 30, 2024, was $(5,499,839), an improvement of $8,902,252 from $(14,402,091) in 2023[229] - Total gross margin for 2024 was $(1,807,805), an improvement of $1,294,805 from $(3,102,610) in 2023[222] Patent and Technology Development - The company has over 220 granted and pending patents globally, focusing on blue laser applications and technologies[146] Accounting and Estimates - The company continues to evaluate its accounting estimates and has not made significant changes during the nine months ended September 30, 2024[233]
Nuburu(BURU) - 2024 Q3 - Quarterly Report