Aeluma Inc(ALMU) - 2025 Q2 - Quarterly Results

Executive Summary & Business Update This section provides an overview of Aeluma's record second-quarter performance, strategic achievements, and management's outlook on future growth and market positioning Second Quarter Fiscal Year 2025 Highlights Aeluma reported record second-quarter revenue, driven by strategic execution of government and commercial contracts, and highlighted advancements in quantum dot photonic circuits and scalable sensing solutions across various high-growth markets Management Commentary Management highlights record second-quarter revenue driven by strategic contract execution and emphasizes the company's leadership in next-generation semiconductor applications across diverse high-growth markets - Aeluma's CEO, Jonathan Klamkin, stated that the second-quarter performance, with revenue reaching $1.6 million, demonstrates the potential of their high-performance semiconductor technologies, driven by strategic execution of government and commercial contracts[4] - The company is positioned as a leader in next-generation applications across AI, quantum computing, aerospace & defense, AR/VR, automotive, health, and mobile, with a focus on scaling the business to meet evolving market needs[4] Recent Company Achievements Aeluma achieved record quarterly revenue, secured a NASA contract, expanded its IP portfolio with new patent filings, joined AIM Photonics, and completed a key commercial development milestone - Recognized record high quarterly revenue of $1.6 million, growing over 500% year-over-year[5] - Secured a NASA contract to advance quantum dot photonic integrated circuits for aerospace and AI applications[5] - Filed two new patent applications for quantum computing and sensing, expanding its intellectual property portfolio[5] - Joined AIM Photonics as a full industry member to accelerate quantum dot laser technology for silicon photonics[5] - Completed a key technical milestone for an ongoing commercial development contract and entered negotiations for additional development contracts[5] Financial Performance Overview This section details Aeluma's second-quarter fiscal year 2025 financial results, including revenue, net loss, and non-GAAP measures, along with updated full-year revenue guidance and definitions of non-GAAP metrics Second Quarter Fiscal Year 2025 Financial Results Aeluma reported record Q2 FY2025 revenue of $1.6 million, a significant increase year-over-year and quarter-over-quarter. Despite revenue growth, the company incurred a GAAP net loss of $2.9 million, or ($0.24) per share, but achieved Non-GAAP income of $546 thousand and Adjusted EBITDA of $648 thousand. Cash and cash equivalents stood at $3.1 million Financial Metrics | Metric | Q2 FY2025 (Dec 31, 2024) | Q1 FY2025 (Sep 30, 2024) | Q2 FY2024 (Dec 31, 2023) | YoY Change (Q2 FY25 vs Q2 FY24) | QoQ Change (Q2 FY25 vs Q1 FY25) | | :----- | :----------------------- | :----------------------- | :----------------------- | :------------------------------ | :------------------------------ | | Revenue | $1.6 million | $481 thousand | $263 thousand | +509.5% | +232.6% | | Net Loss (GAAP) | $(2.9) million | $(730) thousand | $(1.1) million | +163.6% (larger loss) | +297.3% (larger loss) | | Net Loss per Share (GAAP) | $(0.24) | $(0.06) | $(0.09) | +166.7% (larger loss) | +300.0% (larger loss) | | Non-GAAP Income | $546 thousand | N/A | N/A | N/A | N/A | | Adjusted EBITDA | $648 thousand | $(457) thousand | $(924) thousand | N/A (positive vs negative) | N/A (positive vs negative) | | Cash and Cash Equivalents | $3.1 million | $3.5 million | $2.4 million | +29.2% | -11.4% | - Total shares outstanding were 12,242,481 as of December 31, 2024[9] Fiscal Year 2025 Revenue Guidance Aeluma raised its full-year fiscal 2025 revenue guidance by 10% to approximately $4.4-4.6 million, reflecting confidence in its growth trajectory and strong contract performance - Aeluma now expects full-year fiscal 2025 revenue of approximately $4.4-4.6 million[10] - This represents a 10% increase from its previous guidance provided on September 24, 2024[10] - The upward revision is attributed to confidence in the company's growth trajectory, supported by strong contract performance and expanding market opportunities[10] Non-GAAP Financial Measures The company uses Non-GAAP financial measures, including Non-GAAP net income and Adjusted EBITDA, to provide supplemental information to management and investors, believing they offer additional insight into ongoing performance and core operational activities by excluding stock-based compensation, depreciation, amortization, amortization of discount on convertible notes, and changes in fair value of derivative liabilities - Non-GAAP financial measures are presented to provide supplemental information and additional insight into Aeluma's ongoing performance and core operational activities[12] - Non-GAAP net income is defined as GAAP net loss plus stock-based compensations, amortization of discount on convertible notes and changes in fair value of derivative liabilities[13] - Adjusted EBITDA is defined as non-GAAP net loss plus depreciation and amortization expenses, less interest income[13] Company Profile & Disclosures This section provides an overview of Aeluma's core business in optoelectronics, outlines forward-looking statement disclaimers, and lists company and investor contact information About Aeluma, Inc. Aeluma develops novel optoelectronics for sensing and communication, utilizing a pioneering technique to manufacture high-performance compound semiconductor chips on large-diameter substrates. This technology aims to enhance performance and scale manufacturing for various markets including automotive LiDAR, mobile, defense & aerospace, AR/VR, AI, quantum, and communication - Aeluma develops novel optoelectronics for sensing and communication applications[15] - The company has pioneered a technique to manufacture high-performance compound semiconductor chips on large-diameter substrates, critical for enhancing performance and scaling manufacturing[15] - Its transformative semiconductor chip technology may impact markets such as automotive LiDAR, mobile, defense & aerospace, AR/VR, AI, quantum, and communication[15] Forward-Looking Statements The press release contains forward-looking statements regarding market position, product development, manufacturing, sales, and partnerships, which are subject to known and unknown risks, uncertainties, and assumptions that could cause actual results to differ materially. The company disclaims any obligation to update these statements - All statements not historical are forward-looking, including expectations regarding market position, product development, manufacturing, sales, and partnerships[16] - These statements involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and may cause actual results to differ materially[16] - The Company undertakes no obligation to revise or update information in this release to reflect future events or circumstances[16] Company and Investor Contact Provides contact information for Aeluma, Inc. and its investor relations - Company contact: Aeluma, Inc., (805) 351-2707, info@aeluma.com[17] - Investor contact: Bishop IR, Mike Bishop, (415) 894-9633, ir@aeluma.com[17] Unaudited Consolidated Financial Statements This section presents Aeluma's unaudited consolidated balance sheets, statements of operations, reconciliation of GAAP and Non-GAAP net income, and statements of cash flows for specified periods Consolidated Balance Sheets The consolidated balance sheets provide a snapshot of Aeluma's financial position as of December 31, 2024, September 30, 2024, and December 31, 2023, detailing assets, liabilities, and stockholders' equity. Key changes include an increase in total assets and a significant rise in derivative liabilities and convertible notes Balance Sheet Items (USD) | Balance Sheet Item | Dec 31, 2024 | Sep 30, 2024 | Dec 31, 2023 | | :----------------- | :----------- | :----------- | :----------- | | Total Assets | $6,757,858 | $6,348,859 | $5,329,560 | | Cash and cash equivalents | $3,063,059 | $3,502,520 | $2,423,054 | | Accounts receivable | $1,324,632 | $322,189 | $192,992 | | Total Liabilities | $7,789,946 | $4,635,226 | $1,457,604 | | Derivative liabilities | $5,048,174 | $2,046,695 | $- | | Convertible notes, net | $1,379,690 | $1,096,646 | $- | | Total Stockholders' Equity | $(1,032,088) | $1,713,633 | $3,871,956 | - Total assets increased from $6,348,859 at September 30, 2024, to $6,757,858 at December 31, 2024[19] - Derivative liabilities significantly increased from $2,046,695 to $5,048,174 during the quarter ended December 31, 2024[19] Consolidated Statements of Operations The consolidated statements of operations detail Aeluma's revenue, operating expenses, and net loss for the three and six months ended December 31, 2024, and prior periods. Revenue saw substantial growth, but increased operating expenses and significant other expenses, particularly from changes in fair value of derivative liabilities, led to a higher net loss Statements of Operations (USD) | Metric | Three Months Ended Dec 31, 2024 | Three Months Ended Sep 30, 2024 | Three Months Ended Dec 31, 2023 | Six Months Ended Dec 31, 2024 | Six Months Ended Dec 31, 2023 | | :----- | :------------------------------ | :------------------------------ | :------------------------------ | :---------------------------- | :---------------------------- | | Revenue | $1,612,519 | $480,735 | $262,992 | $2,093,254 | $295,392 | | Cost of revenue | $584,549 | $314,575 | $136,767 | $899,124 | $151,906 | | Research and development | $268,061 | $401,074 | $651,099 | $669,135 | $1,485,968 | | General and administrative | $370,311 | $496,466 | $603,925 | $866,777 | $1,269,028 | | Loss from operations | $389,598 | $(731,380) | $(1,128,799) | $(341,782) | $(2,611,510) | | Changes in fair value of derivative liabilities | $(3,001,480) | $146,435 | $- | $(2,855,045) | $- | | Net loss | $(2,894,824) | $(729,619) | $(1,128,520) | $(3,624,443) | $(2,610,829) | | Net loss per share - basic and diluted | $(0.24) | $(0.06) | $(0.09) | $(0.30) | $(0.21) | - Revenue for the three months ended December 31, 2024, increased by over 500% year-over-year to $1,612,519[21] - The net loss for the three months ended December 31, 2024, was significantly impacted by a $(3,001,480) change in fair value of derivative liabilities[21] Reconciliation of GAAP and Non-GAAP Net Income (Loss) This section provides a reconciliation between GAAP net loss and Non-GAAP net income (loss), as well as Adjusted EBITDA, for the three and six months ended December 31, 2024, and prior periods. It details adjustments for stock-based compensation, amortization of discount on convertible notes, and changes in fair value of derivative liabilities Reconciliation (USD) | Metric | Three Months Ended Dec 31, 2024 | Three Months Ended Sep 30, 2024 | Three Months Ended Dec 31, 2023 | Six Months Ended Dec 31, 2024 | Six Months Ended Dec 31, 2023 | | :----- | :------------------------------ | :------------------------------ | :------------------------------ | :---------------------------- | :---------------------------- | | GAAP net loss | $(2,894,824) | $(729,619) | $(1,128,520) | $(3,624,443) | $(2,610,829) | | Total adjustments to GAAP net loss | $3,440,607 | $172,413 | $142,900 | $3,613,020 | $395,434 | | Non-GAAP net income (loss) | $545,783 | $(557,206) | $(985,620) | $(11,423) | $(2,215,395) | | Adjusted EBITDA | $647,863 | $(457,183) | $(923,900) | $190,680 | $(2,084,293) | | Non-GAAP net income (loss) per share | $0.04 | $(0.05) | $(0.08) | $- | $(0.18) | - Non-GAAP adjustments for the three months ended December 31, 2024, totaled $3,440,607, primarily driven by changes in fair value of derivative liabilities ($3,001,480)[22] - Aeluma reported a positive Non-GAAP net income of $545,783 and Adjusted EBITDA of $647,863 for the quarter ended December 31, 2024, contrasting with GAAP net loss[22] Consolidated Statements of Cash Flows The consolidated statements of cash flows present the cash inflows and outflows from operating, investing, and financing activities for the six months ended December 31, 2024, and December 31, 2023. Net cash used in operating activities decreased, while financing activities provided significant cash, primarily from note issuance, leading to a positive net change in cash Cash Flow Items (USD) | Cash Flow Item | Six Months Ended Dec 31, 2024 | Six Months Ended Dec 31, 2023 | | :------------- | :---------------------------- | :---------------------------- | | Net loss | $(3,624,443) | $(2,610,829) | | Net cash used in operating activities | $(1,332,216) | $(2,480,345) | | Net cash used in investing activities | $(40,797) | $(164,290) | | Net cash provided by (used in) financing activities | $3,145,000 | $(4,001) | | Net change in cash | $1,771,987 | $(2,648,636) | | Cash, end of period | $3,063,059 | $2,423,054 | - Net cash used in operating activities decreased from $(2,480,345) in the six months ended December 31, 2023, to $(1,332,216) in the same period of 2024[24] - Financing activities provided $3,145,000 in cash for the six months ended December 31, 2024, primarily from note issuance, a significant change from the $(4,001) used in the prior year[24]