Financial Performance - Total revenue for the year ended December 31, 2024, was $152,127, a significant decrease from $2,085,532 in 2023, with net losses of $34,515,754 and $20,710,446 respectively[172] - Revenue for the year ended December 31, 2024, was $152,127, a decrease of $1,933,405 compared to $2,085,532 in 2023[218] - For the year ended December 31, 2024, the company incurred a net loss of $34,515,754, compared to a net loss of $20,710,446 for 2023, resulting in an accumulated deficit of $131,806,605[231] - EBITDA for the year ended December 31, 2024, was $(30,395,495), compared to $(19,457,385) in 2023, representing a decline of $10,938,110[245] - The company anticipates incurring net losses for the foreseeable future and expresses substantial doubt about its ability to continue as a going concern unless it implements its Transformation Plan[232] Operational Changes - The company has not yet achieved commercialization and expects continued losses, relying on capital from investors to support operations[171] - The company is pursuing an acquisition of technology and interests in defense and SaaS companies to expand its business[194] - The company will need to raise additional capital to support its operations, which may result in dilution for existing shareholders[235] Financing Activities - A reverse stock split of 1-for-40 was executed on July 23, 2024, to address stock price deficiencies[177] - The company entered into a Securities Purchase Agreement in April 2024 for $3,000,000, but only $644,936 has been received, leading to a notification of default[179] - During 2024, the company issued 837,116 pre-funded warrants, generating total cash proceeds of $2,139,866[181] - The company entered into a Master Agreement with Liqueous LP for a strategic financing framework, including an immediate capital infusion of $3.0 million and subsequent weekly capital infusions[188] - On January 13, 2025, the company agreed to a Transformation Plan with S.F.E. Equity Investments to finance operations for the next twelve months[191] - A settlement agreement with Liqueous LP was reached on January 14, 2025, involving payments totaling $1,500,000 contingent on the company's performance[192] - Net cash provided by financing activities was $4,677,578 for the year ended December 31, 2024, down from $17,976,360 in 2023[241] Expense Management - Cost of revenue decreased by $3,489,957 to $2,205,476 in 2024, consistent with the decline in revenue[219] - Research and development expenses decreased by $3,640,864 to $1,821,816 in 2024, primarily due to lower personnel costs and reduced spending on the BLTM series[220] - Selling and marketing expenses decreased by $1,071,616 to $468,074 in 2024, attributed to lower personnel costs and a decrease in consulting costs[221] - General and administrative expenses decreased by $2,309,874 to $8,807,651 in 2024, driven by reduced compliance costs and personnel expenses[222] - Interest income decreased by $100,206 to $17,166 in 2024 due to lower cash balances[223] - Interest expense increased by $2,482,361 to $3,346,896 in 2024, primarily due to higher debt balances[224] - The company recorded a loss on extinguishment of debt of $20,504,307 in 2024, related to the issuance of shares to extinguish $5,645,471 of principal and accrued interest[227] Cash Position - As of December 31, 2024, the company had cash and cash equivalents of $209,337, a significant decrease from $2,148,700 as of December 31, 2023[230] - Net cash used in operating activities was $6,616,941 for the year ended December 31, 2024, a decrease from $17,540,163 in 2023, primarily due to reduced operating expenses[239] Accounting and Reporting - Inventory is stated at the lower of average cost and net realizable value, with potential write-downs for excess and obsolescence[259] - Public Warrants and Junior Note Warrants are classified as liabilities at fair value, subject to re-measurement at each reporting period[260] - Equity-Classified Warrants are recorded at fair value as of the issuance date, estimated using the Black-Scholes option-pricing model[261] - Stock-based compensation is recorded based on fair values in accordance with FASB ASC Topic 718, impacting the financial statements[263] - Lease obligations are accounted for under FASB ASC Topic 842, with lease expenses recognized on a straight-line basis over the expected lease term[264] - Deferred income taxes are recognized for differences between financial statement and tax bases, with a full valuation allowance recorded for net deferred tax assets[266] - The company reviews new accounting standards for potential financial impacts on consolidated financial statements[267] - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[268] Stock and Market Activity - The company faced delisting from NYSE American in June 2024 but was reinstated on August 2, 2024, after resolving listing deficiencies[189][190] - Total gross margin improved to $(2,053,349) in 2024 from $(3,609,901) in 2023, indicating a positive change of $1,556,552[245] - The change in fair value of warrant liabilities resulted in a gain of $343,391 in 2024, compared to a gain of $1,766,513 in 2023[225]
Nuburu(BURU) - 2024 Q4 - Annual Report