Aeluma Inc(ALMU) - 2025 Q3 - Quarterly Results

Company Overview and Highlights Aeluma, Inc. reported record Q3 FY2025 results, driven by NASDAQ uplisting, strong capital, and increasing demand in AI and defense sectors Third Quarter Fiscal Year 2025 Report Summary Aeluma, Inc. reported record third-quarter results for fiscal year 2025, ending March 31, 2025, with revenue growth of 265%. The company is building momentum through its NASDAQ uplisting, a strong capital position, and increasing demand across AI and defense sectors - Aeluma reported record third quarter with revenue growth of 265% for Q3 FY2025[1] - Momentum is building due to NASDAQ uplisting, strong capital position, and growing demand in AI and Defense markets[2] - Aeluma specializes in high-performance, scalable semiconductor technologies for mobile, automotive, AI, defense, aerospace, communication, and quantum computing[2] Management Commentary Jonathan Klamkin, Ph.D., Founder and CEO of Aeluma, expressed confidence in the company's strong growth trajectory, citing the successful NASDAQ uplist, oversubscribed capital raise, robust third-quarter revenue, and strong revenue backlog. He highlighted growing commercial interest in key markets like defense, aerospace, and AI infrastructure, anticipating a transition to commercialization - CEO Jonathan Klamkin believes Aeluma is poised for a strong growth trajectory due to NASDAQ uplist, oversubscribed capital raise, Q3 revenue, and strong revenue backlog[4] - Commercial interest in Aeluma's technology is growing across defense and aerospace, AI infrastructure, consumer sensing, quantum computing, and automotive[4] - Aeluma expects to transition to commercialization to support demands in high-growth markets[4] Recent Company Highlights Aeluma achieved several significant milestones, including a successful NASDAQ uplist and an oversubscribed public offering that raised $13.8 million in gross proceeds. The company also expanded its Board of Directors with a former NVIDIA finance leader, secured a U.S. Department of Energy contract, and increased its industry presence through various conferences and media features - NASDAQ Uplist and Capital Raise[5] - Closed oversubscribed public offering with $13.8 million gross proceeds, bringing total capital raised in fiscal year to nearly $17 million - Completed uplist to NASDAQ under ticker 'ALMU' - Board Expansion: Appointed former NVIDIA finance leader Mike Byron to the Board of Directors[5] - U.S. Department of Energy Contract: Secured funding to accelerate development of low-cost shortwave infrared photodetectors[5] - Industry Engagement & Visibility[5] - Showcased next-generation photonic solutions at SPIE Defense + Commercial Sensing - Became a member of the National Semiconductor Technology Center (NSTC) - Presented joint research at Optical Fiber Communications (OFC) Conference and featured in Laser Focus World and SemiWiki's CEO interview series Financial Performance Aeluma's financial performance for Q3 FY2025 shows significant revenue growth, a swing to net income, and strong cash position, supported by positive revenue guidance Third Quarter Fiscal Year 2025 Financial Results Aeluma reported Q3 FY25 revenue of $1.3 million, a 265% increase year-over-year, and achieved a net income of $1.5 million ($0.12 basic EPS), a significant turnaround from prior losses. This profit was primarily driven by a $2.6 million non-cash gain from derivative liabilities. Adjusted EBITDA for the quarter was $109 thousand, and cash and cash equivalents significantly increased to $15.9 million Key Financial Metrics (Q3 FY2025 vs. Prior Periods) | Metric | Q3 FY2025 (March 31, 2025) | Q2 FY2025 (Dec 31, 2024) | Q3 FY2024 (March 31, 2024) | YoY Change (Q3 FY25 vs Q3 FY24) | QoQ Change (Q3 FY25 vs Q2 FY25) | | :-------------------------------- | :------------------------- | :------------------------- | :------------------------- | :-------------------------------- | :-------------------------------- | | Revenue | $1.3 million | $1.6 million | $344 thousand | +265% | -18.75% | | Net Income (Loss) | $1.5 million | ($2.9 million) | ($963 thousand) | N/A (swing to profit) | N/A (swing to profit) | | Basic EPS | $0.12 | ($0.24) | ($0.08) | N/A | N/A | | Diluted EPS | $0.11 | ($0.24) | ($0.08) | N/A | N/A | | Adjusted EBITDA | $109 thousand | $648 thousand | ($685 thousand) | N/A (swing to profit) | -83.18% | | Cash & Cash Equivalents (as of period end) | $15.9 million | $3.1 million | $1.9 million | +736.84% | +412.90% | | Shares Outstanding (as of period end) | 15,795,467 | N/A | N/A | N/A | N/A | - Net income varied quarter-over-quarter primarily due to a non-cash gain of $2.6 million in fair value of derivative liabilities in Q3 FY25, following a $3.0 million loss in the prior quarter[7] - Non-GAAP net income for Q3 FY25 was $7 thousand[7] Revenue Guidance Aeluma successfully met its revenue target for the third quarter and remains on track to achieve its annual revenue guidance of approximately $4.4-4.6 million for fiscal year 2025. This confidence is underpinned by strong contract performance and expanding market opportunities - Aeluma met its revenue target for the quarter[10] - The company is tracking to meet its annual revenue guidance of approximately $4.4-4.6 million for fiscal 2025[10] - Confidence in growth trajectory is supported by strong contract performance and expanding market opportunities[10] Note about Non-GAAP Financial Measures This section clarifies that non-GAAP financial measures, including Non-GAAP net income (loss) and Adjusted EBITDA, are provided as supplemental information to offer additional insight into Aeluma's ongoing performance and core operational activities. These measures exclude specific items like stock-based compensation, depreciation, amortization, and changes in fair value of derivative liabilities, and should be evaluated in conjunction with GAAP measures - Non-GAAP financial measures are provided as supplemental information to management and investors, not as a substitute for GAAP[12] - Non-GAAP net income (loss) is defined as GAAP net income (loss) plus stock-based compensation expenses, amortization of discount on convertible notes, and changes in fair value of derivative liabilities[14] - Adjusted EBITDA is defined as non-GAAP net income (loss) plus depreciation and amortization expenses, less interest income[14] About Aeluma, Inc. Aeluma, Inc. specializes in photonics and optoelectronics, leveraging proprietary technology to manufacture high-performance semiconductor chips for diverse high-growth markets Company Profile and Technology Aeluma develops photonics and optoelectronics for sensing, computing, and communication applications, utilizing a proprietary technique to manufacture high-performance compound semiconductor chips on large-diameter substrates. This technology aims to enhance performance and scale manufacturing for diverse markets including mobile, defense, AI, automotive, AR/VR, quantum, and communication, distinguishing Aeluma through its unique manufacturing capabilities, rapid prototyping, and broad product offerings - Aeluma develops photonics and optoelectronics for sensing, computing, and communication applications[15] - The company has pioneered a technique to manufacture high-performance compound semiconductor chips on large-diameter substrates for mass-market microelectronics[15] - Aeluma's technology targets markets such as mobile, defense and aerospace, AI, automotive, AR/VR, quantum, and communication, differentiating itself with unique manufacturing, proprietary technology, rapid prototyping, and broad product offerings[15] Forward-Looking Statements This section provides a disclaimer regarding forward-looking statements, highlighting inherent risks and uncertainties that may cause actual results to differ materially Disclaimer on Future Projections This section serves as a disclaimer, stating that all non-historical statements in the press release, particularly those concerning market position, product development, manufacturing, sales, and partner relations, are forward-looking. These statements are subject to known and unknown risks, uncertainties, and assumptions that could cause actual results to differ materially, and the company disclaims any obligation to revise or update such information - All non-historical statements are forward-looking, including expectations regarding market position, product development, manufacturing, sales, and partner relations[16] - Forward-looking statements involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond the Company's control[16] - Actual results may differ materially from those in forward-looking statements, and the Company undertakes no obligation to revise or update future information[16] Contact Information This section provides essential contact details for Aeluma, Inc. and its investor relations firm, Bishop IR Company and Investor Relations Contacts This section provides contact details for Aeluma, Inc. and its dedicated investor relations firm, Bishop IR - Company Contact: Aeluma, Inc., (805) 351-2707, info@aeluma.com[17] - Investor Contact: Bishop IR, Mike Bishop, (415) 894-9633, ir@aeluma.com[17] Consolidated Financial Statements (Unaudited) This section presents Aeluma's unaudited consolidated financial statements, including balance sheets, statements of operations, cash flows, and GAAP/non-GAAP reconciliations Consolidated Balance Sheets The unaudited consolidated balance sheets present Aeluma's financial position as of March 31, 2025, December 31, 2024, and June 30, 2024. Notable changes include a substantial increase in cash and cash equivalents and the addition of a certificate of deposit, alongside the elimination of derivative liabilities and convertible notes, reflecting the impact of recent financing activities and the NASDAQ uplisting Consolidated Balance Sheet Highlights | Metric | March 31, 2025 | December 31, 2024 | June 30, 2024 | | :-------------------------------- | :---------------- | :---------------- | :---------------- | | Total Assets | $19,361,740 | $6,757,858 | $3,844,047 | | Cash and cash equivalents | $3,865,659 | $3,063,059 | $1,291,072 | | Certificate of deposit | $12,000,000 | - | - | | Total Current Assets | $17,225,995 | $4,530,169 | $1,392,846 | | Total Liabilities | $1,364,645 | $7,789,946 | $1,567,886 | | Derivative liabilities | - | $5,048,174 | - | | Convertible notes, net | - | $1,379,690 | - | | Total Stockholders' Equity (Deficit) | $17,997,095 | ($1,032,088) | $2,276,161 | - Cash and cash equivalents, along with certificate of deposit, significantly increased by March 31, 2025[19] - Derivative liabilities and convertible notes were reduced to zero by March 31, 2025, indicating conversion or settlement[19] Consolidated Statements of Operations The unaudited consolidated statements of operations detail Aeluma's financial performance for the three and nine months ended March 31, 2025, and 2024. For Q3 FY25, the company reported a net income of $1.5 million, a substantial improvement from prior losses, primarily driven by a $2.6 million non-cash gain from changes in the fair value of derivative liabilities Consolidated Statements of Operations Highlights | Metric | Three Months Ended March 31, 2025 | Three Months Ended Dec 31, 2024 | Three Months Ended March 31, 2024 | Nine Months Ended March 31, 2025 | Nine Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Revenue | $1,254,966 | $1,612,519 | $343,894 | $3,348,220 | $639,286 | | Total expenses | $2,086,436 | $1,222,921 | $1,306,662 | $4,521,472 | $4,213,564 | | Income (loss) from operations | ($831,470) | $389,598 | ($962,768) | ($1,173,252) | ($3,574,278) | | Changes in fair value of derivative liabilities | $2,577,103 | ($3,001,480) | - | ($277,942) | - | | Net income (loss) | $1,460,893 | ($2,894,824) | ($962,651) | ($2,163,550) | ($3,573,480) | | Basic EPS | $0.12 | ($0.24) | ($0.08) | ($0.18) | ($0.29) | | Diluted EPS | $0.11 | ($0.24) | ($0.08) | ($0.18) | ($0.29) | - Revenue for the nine months ended March 31, 2025, significantly increased to $3,348,220 from $639,286 in the prior year[21] - Net income for Q3 FY25 was $1,460,893, a substantial improvement from losses in the previous quarter and prior year quarter, largely due to the gain from changes in fair value of derivative liabilities[21] Reconciliation of GAAP and Non-GAAP Financial Measures This section provides a detailed reconciliation of GAAP net income (loss) to Non-GAAP net income (loss) and Adjusted EBITDA for the three and nine months ended March 31, 2025, and 2024. Adjustments primarily include stock-based compensation, amortization of discount on convertible notes, and changes in fair value of derivative liabilities Reconciliation of GAAP to Non-GAAP Net Income (Loss) and Adjusted EBITDA | Metric | Three Months Ended March 31, 2025 | Three Months Ended Dec 31, 2024 | Three Months Ended March 31, 2024 | Nine Months Ended March 31, 2025 | Nine Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | GAAP net income (loss) | $1,460,893 | ($2,894,824) | ($962,651) | ($2,163,550) | ($3,573,480) | | Total adjustments to GAAP net income (loss) | ($1,453,928) | $3,440,607 | $198,825 | $2,159,092 | $594,260 | | Non-GAAP net income (loss) | $6,965 | $545,783 | ($763,826) | ($4,458) | ($2,979,220) | | Adjusted EBITDA | $109,252 | $647,863 | ($684,965) | $299,931 | ($2,767,145) | - Non-GAAP adjustments include stock-based compensation, amortization of discount on convertible notes, and changes in fair value of derivative liabilities[23] - Non-GAAP net income for Q3 FY25 was $6,965, and Adjusted EBITDA was $109,252[23] Consolidated Statements of Cash Flows The unaudited consolidated statements of cash flows for the nine months ended March 31, 2025, and 2024, reveal a significant increase in cash and cash equivalents, primarily driven by substantial cash provided by financing activities. This includes proceeds from convertible notes issuance and a public offering, which offset cash used in operating and investing activities Consolidated Statements of Cash Flows Highlights (Nine Months Ended) | Metric | March 31, 2025 | March 31, 2024 | | :-------------------------------- | :---------------- | :---------------- | | Net cash used in operating activities | ($1,082,677) | ($2,876,190) | | Net cash used in investing activities | ($85,175) | ($316,934) | | Net cash provided by (used in) financing activities | $15,742,439 | ($4,001) | | Net change in cash and cash equivalent, and certificate of deposit | $14,574,587 | ($3,197,125) | | Cash and cash equivalent, and certificate of deposit, end of period | $15,865,659 | $1,874,565 | - Financing activities provided $15,742,439 in cash for the nine months ended March 31, 2025, including $3,145,000 from convertible notes and $12,587,439 from a public offering[25] - Supplemental non-cash disclosures include the conversion of $1,666,988 in convertible notes and $2,471,071 in derivative liabilities to stockholders' equity[25]