Revenue Growth - For the three months ended September 30, 2025, total revenue increased 1,419% to $11.9 million, compared to $0.8 million for the same period in 2024, primarily due to hardware sales to a new customer[232] - For the nine months ended September 30, 2025, total revenue increased 857% to $14.9 million, compared to $1.6 million for the same period in 2024, driven by hardware sales of $10.4 million in Q3 2025[234] Cost of Revenue - Cost of revenue for the three months ended September 30, 2025, increased by 2,020% to $10.1 million, compared to $0.5 million for the same period in 2024, primarily due to higher hardware costs[243] - Cost of revenue for the nine months ended September 30, 2025, increased by 980% to $11.2 million, compared to $1.0 million for the same period in 2024, driven by higher hardware costs[244] Research and Development (R&D) Expenses - R&D expenses for the three months ended September 30, 2025, increased by $3.9 million, or 67%, to $9.7 million compared to $5.8 million for the same period in 2024[245] - For the nine months ended September 30, 2025, R&D expenses rose by $16.6 million, or 106%, reaching $32.4 million, up from $15.8 million in 2024[246] Selling, General and Administrative (SG&A) Expenses - SG&A expenses for the three months ended September 30, 2025, increased by $8.8 million, or 158%, to $14.3 million compared to $5.5 million for the same period in 2024[247] - For the nine months ended September 30, 2025, SG&A expenses increased by $25.7 million, or 177%, to $40.2 million, up from $14.5 million in 2024[248] Net Loss - The net loss for the three months ended September 30, 2025, was $26.3 million, compared to a net loss of $25.6 million in 2024, representing a 3% increase[255] - For the nine months ended September 30, 2025, the net loss was $203.6 million, a 274% increase from a net loss of $54.5 million in 2024[255] Cash Flow - Cash used in operating activities for the nine months ended September 30, 2025, was $57.3 million, compared to $35.8 million in 2024[269] - Cash provided by financing activities for the nine months ended September 30, 2025, was $31.8 million, down from $102.4 million in 2024[269] - Net cash used in operating activities increased to $57.3 million for the nine months ended September 30, 2025, compared to $35.8 million for the same period in 2024, primarily due to a $149.1 million increase in net loss[270] - Cash used in investing activities was $0.7 million for the nine months ended September 30, 2025, down from $1.2 million in 2024[271] - Net cash provided by financing activities was $31.8 million for the nine months ended September 30, 2025, compared to $102.4 million in 2024, with significant contributions from a $20.0 million Committed Equity Facility and $15.9 million from Merger and PIPE financing[272] Equity and Financing - The company entered into a $50.0 million common stock purchase agreement to accelerate commercialization of its South Asia smart infrastructure contract and invest in next-generation chip development[226] - The company raised approximately $30.0 million through a securities purchase agreement, intending to use the net proceeds for general corporate and working capital purposes[227] - The company entered into a Committed Equity Facility allowing the sale of up to $50 million of newly issued shares, with $20 million net proceeds from 5,673,734 shares sold as of September 30, 2025[265] Partnerships and Initiatives - As of September 30, 2025, there were 53 proof-of-concept initiatives in progress with potential customers[229] - As of September 30, 2025, the company had 42 partners working to integrate its products and services into their offerings[230] - As of September 30, 2025, the company confirmed 26 design wins with partners or customers[231] Company Classification and Accounting - The company is classified as an emerging growth company (EGC) under the JOBS Act, allowing it to delay compliance with certain accounting standards until it no longer qualifies as an EGC[275] - The company has elected to utilize smaller reporting company (SRC) status, which is available as long as annual revenues remain below $100.0 million and public float is less than $700.0 million[278] - The accounting for the Merger was treated as a reverse recapitalization, with no goodwill or intangible assets recognized, and net assets stated at historical cost[283] Tax and Valuation - The company’s deferred tax asset balance is subject to a full valuation allowance, with management's projections of future taxable income being a significant factor in this assessment[287] - The valuation of financial instruments, including the Committed Equity Facility and earnout shares, involves complex estimates and assumptions, impacting the company's financial results[296]
BurTech Acquisition (BRKH) - 2025 Q3 - Quarterly Report