Revenue Growth - For the three months ended September 30, 2025, 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, 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]. - The company expects growth to continue in both Asia Pacific and North America, with revenue concentrated among a small number of customers[236]. Cost of Revenue - Cost of revenue for the three months ended September 30, 2025, increased by $9.6 million, or 2,020%, to $10.1 million, compared to $0.5 million for the same period in 2024[243]. - Cost of revenue for the nine months ended September 30, 2025, increased by $10.2 million, or 980%, to $11.2 million, compared to $1.0 million for the same period in 2024[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%, to $32.4 million 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 in 2024[247]. - SG&A expenses for the nine months ended September 30, 2025, rose by $25.7 million, or 177%, reaching $40.2 million from $14.5 million in 2024[248]. Net Loss and Cash Flow - The company reported a net loss of $26.3 million for the three months ended September 30, 2025, compared to a net loss of $25.6 million in 2024, representing a 3% increase[255]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $(39.4) million, compared to $(28.6) million in 2024, reflecting a 38% increase in losses[255]. - Net 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]. - Net cash used in operating activities increased to $57.3 million for the nine months ended September 30, 2025, from $35.8 million in the same period of 2024, primarily due to a $149.1 million increase in net loss[270]. Financing Activities - Net 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]. - The company raised net proceeds of $20.0 million from the sale of 5,673,734 shares under the Committed Equity Facility as of September 30, 2025[265]. - Net cash provided by financing activities was $31.8 million for the nine months ended September 30, 2025, down from $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]. Stock and Equity - As of September 30, 2025, the company had commitments to issue 29,318,739 shares of common stock under stock option awards[260]. - As of September 30, 2025, the company had cash and cash equivalents of $24.0 million and $30.0 million available to draw on the Committed Equity Facility[274]. Tax and Accounting - The deferred tax asset balance is subject to a full valuation allowance, with management's projections of future taxable income being a significant factor in determining the need for this allowance[287]. - Revenue recognition follows ASC 606, requiring significant estimates and assumptions regarding contracts with customers and performance obligations[289]. - The valuation of financial instruments, including the Committed Equity Facility and earnout shares, involves complex models such as Monte Carlo simulations and the Black-Scholes option pricing model[298][300]. Strategic 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]. - The company is evaluating strategies to mitigate the impact of new tariffs on its supply chain and costs, including exploring alternative sourcing and implementing price increases[223]. Company Classification - 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 due to annual revenues being less than $100.0 million and public float being less than $700.0 million[278].
Burtech Acquisition Corp.(BRKHU) - 2025 Q3 - Quarterly Report