Nuburu(BURU) - 2024 Q2 - Quarterly Report

Financial Performance - Total revenue for the three months ended June 30, 2024, was $49,278, a decrease of 95.3$1,054,062 for the same period in 2023[117] - Net losses for the three months ended June 30, 2024, were $12,687,388, compared to$6,106,712 for the same period in 2023, reflecting a 107.5% increase in losses[117] - The company generated total revenue of $142,827 for the six months ended June 30, 2024, down 90.6$1,524,051 for the same period in 2023[117] - Revenue decreased by $1,004,784 to$49,278 for the three months ended June 30, 2024, compared to $1,054,062 in the same period in 2023[145] - Revenue decreased by$1,381,224 to $142,827 for the six months ended June 30, 2024, compared to$1,524,051 in the same period in 2023[151] - The company recorded a net loss of $18,388,041 for the six months ended June 30, 2024, compared to a net loss of$10,874,229 for the same period in 2023, indicating a significant increase in losses[160] - The company anticipates continued net losses for the foreseeable future, raising substantial doubt about its ability to continue as a going concern[160] Cost Management - The company initiated operational efficiency and cost reduction measures, including temporary employee furloughs, to align costs with anticipated near-term revenue[122] - Cost of revenue decreased by $1,751,538 to$733,726 for the three months ended June 30, 2024, compared to $2,485,264 in the same period in 2023[146] - Research and development expenses decreased by$936,030 to $683,381 for the three months ended June 30, 2024, compared to$1,619,411 in the same period in 2023[146] - Selling and marketing expenses decreased by $439,476 to$73,070 for the three months ended June 30, 2024, compared to $366,406 in the same period in 2023[147] - General and administrative expenses decreased by$912,995 to $2,111,018 for the three months ended June 30, 2024, compared to$3,024,013 in the same period in 2023[147] - Total operating expenses decreased by $2,845,891 to$6,722,759 for the six months ended June 30, 2024, compared to $9,568,650 in the same period in 2023[151] Cash Flow and Liquidity - Cash and cash equivalents decreased to$117,188 as of June 30, 2024, down from $2,148,700 as of December 31, 2023, highlighting liquidity challenges[159] - Net cash used in operating activities was$4,322,227 for the six months ended June 30, 2024, a decrease from $8,699,808 in the same period of 2023, primarily due to reduced operating expenses[167] - Net cash provided by financing activities was$2,290,715 for the six months ended June 30, 2024, a decrease from $13,270,162 in the same period of 2023[169] Debt and Financing - A loss on extinguishment of debt of$10,346,108 was recorded for the three months ended June 30, 2024[150] - The company incurred a loss on debt extinguishment of $10,346,108 in the first half of 2024 after issuing 2,248,312 shares to noteholders to extinguish$4.0 million of principal[158] - The company entered into a Securities Purchase Agreement on April 3, 2024, for $3,000,000 of newly issued shares, with only$644,936 advanced due to regulatory compliance delays[124] - The company plans to rely on private and public capital raising efforts to fund operations, with no assurance of successful implementation[161] Research and Development - The company has over 220 granted and pending patents globally, focusing on blue laser applications and technologies[116] - The company plans to continue investing in research and development to enhance its position in the blue laser industry and develop new products[135] - The company launched the BL-300 laser in early Q2 2024, expanding its BL product line[129] Stock and Market Information - A reverse stock split of 1-for-40 was executed on July 23, 2024, to address stock price deficiencies[123] - As of June 30, 2024, the company has no off-balance sheet arrangements, obligations, assets, or liabilities[180] - There have been no significant changes to critical accounting estimates during the six months ended June 30, 2024, compared to previous estimates[181] - The company is a smaller reporting company and is not required to provide additional market risk disclosures[183] Operational Performance - Loss from operations improved by $3,035,255 to$(3,405,777) for the three months ended June 30, 2024, compared to $(6,441,032) in the same period in 2023[145] - Interest expense increased by$929,230 to $(941,614) for the three months ended June 30, 2024, compared to$(12,384) in the same period in 2023[148] - Total gross margin for the six months ended June 30, 2024, was $(1,447,855), an improvement of$725,795 compared to $(2,173,650) in 2023[172] - The company has an accumulated deficit of$100,286,733 as of June 30, 2024, indicating significant historical losses[160]