—Second quarter revenue of $1.1 million, representing a 2,000+% year-over-year increase—

—Completed a private placement with existing and new investors—

CENTENNIAL, Colo. — (BUSINESS WIRE) — August 10, 2023 — NUBURU, Inc. (“NUBURU” or the "Company") (NYSE American: BURU), a leading innovator in high-power and high-brightness industrial blue laser technology, today announced its financial results for the second quarter ended June 30, 2023.

Financial and Operational Highlights

• Total sales of $1.1 million, an increase of 2,125% compared to the second quarter of 2022.

• Announced a contract from NASA to demonstrate the feasibility of power beaming using a blue laser suitable for deployment on the moon or Mars.

• Announced a subsequent private placement from existing and new investors increasing the June 2023 capital raise to $9.2 million.

• Introduced the BL-1000 series, a next generation 1 kilowatt blue laser technology, to target large, fast-growing EV battery production, metal 3D printing and consumer electronics markets.

• Continued to deliver units to Essentium as part of a multi-year partnership focused on metal 3D printing for the aerospace, automotive, and defense markets.

• Delivered the first blue area printing head as part of the previously announced AFWERX contract to GE Additive for testing.

“We are pleased to report another period of strong financial performance, with total sales of $1.1 million in the second quarter of 2023,” said Dr. Mark Zediker, CEO and Co-Founder of NUBURU. “Our top line improved over 2,000% on a year-over-year basis, supported by the strong market adoption of our transformational blue laser technology and continued execution of product deliveries to our commercial customers, Essentium and GE Additive. Our heads-down approach in delivering the highest quality and energy efficient manufacturing solutions remains our top priority and is underpinned by the progress we’ve made in introducing additional product lines within our core technology portfolio.

“With the recent product launch of our new NUBURU BL™ Series Laser, our market positioning for long-term growth continues to develop,” added Zediker. “In tandem with the accelerating market demand we recognize for sustainable welding and 3D printing technologies, we’ve also witnessed an increased interest in our products by blue chip customers such as NASA. As announced earlier this month, we’ve signed a contract with NASA, showcasing the breadth of possible applications for our IP-protected technology.

“As we look forward to the remainder of the year, we remain cognizant of the supply chain conditions that present bottlenecks in the procurement process for scanner and lens related components. However, with alternative sourcing initiatives in place, we believe such material constraints will abate toward the end of the second half of this year. As part of our top-down approach to boost gross margins and revenue expansion, our team consistently assesses opportunities for implementing operational efficiencies and cost-saving measures – all of which reinforces our confidence in achieving Full Year sales in excess of $3 million.”

Financial Results for the Second Quarter Ended June 30, 2023 as Compared to the Second Quarter 2022

Total revenues were $1.1 million compared to $0.04 million, or a 2,125% year-over-year increase, primarily due to an increase in the number of laser system revenues and the product and customer mix of laser system revenues during the same period.

Total gross profit (loss) was $(1.4) million, compared to $(1.2) million, primarily attributable to a one-time write off of approximately $0.6 million related to excess and obsolete AO product line inventory.

Gross margin was (136)%, compared to (2,574)%, driven by increasing revenue and partially offset by the one-time impact of the AO product line inventory write off.

Total operating expenses were $5.0 million, compared to $2.7 million. The increase is primarily attributable to one-time professional fees associated with legal, compliance and accounting matters following the business combination and the transitioning to being a public company. Further contributors to the increase were regular general and administrative costs associated with the Company's status as a public company and increased costs for research and development of tooling and supplies related to the development of the BL product line.

Net loss was $6.1 million, or $0.18 per share, compared to $3.9 million, or $0.71 per share, as a result of the above-described increase in total operating expenses.

EBITDA was $(6.0) million, compared to $(3.8) million.

Capital expenditures were $0.5 million, compared to $0.1 million. The increase is primarily driven by the increase in production capabilities to support additional product lines.

Free cash flow was $(5.1) million, compared to $(2.9) million, primarily attributable to the increase in total operating expenses.

Cash and cash equivalents were $6.6 million as of June 30, 2023.

Financial Outlook

The Company reiterated its 2023 outlook of total revenue in excess of $3 million, EBITDA in the range of negative $21.0 million and negative $23.0 million, and free cash flow to be in the range of negative $24 million and negative $26 million. The Company believes that it has access to sufficient sources of capital to fund this business plan.

Conference Call and Webcast

NUBURU will hold a conference call to discuss financial results on Thursday, August 10, 2023 at 2:30 p.m. MT / 4:30 p.m. ET. The dial-in number is (888) 886-7786 for domestic callers, conference ID 67606887. A live webcast of the conference call will be available on the investor relations page of NUBURU's corporate website at http://ir.nuburu.net/events-and-presentations/default.aspx.

After the live webcast, a replay will remain available online on the investor relations page of NUBURU's website, under "Events & Presentations" for 90 days following the call.

About NUBURU®

Founded in 2015, NUBURU, Inc. (NYSEAM: BURU) is a developer and manufacturer of industrial blue lasers that leverage fundamental physics and their high-brightness, high-power design to produce faster, higher quality welds and parts than current lasers can provide in laser welding and additive manufacturing of copper, gold, aluminum and other industrially important metals. NUBURU’s industrial blue lasers produce minimal to defect-free welds that are up to eight times faster than the traditional approaches – all with the flexibility inherent to laser processing. For more information, please visit www.nuburu.net.

Non-GAAP Measures

This release includes GAAP and non-GAAP income and per-share earnings data and other GAAP and non-GAAP financial information. We believe that non-GAAP financial information, when taken collectively and in context, may be helpful to investors in assessing our operating performance and trends and in comparing our financial measures with those of comparable companies that may present similar non-GAAP financial measures. The non-GAAP measures included in this release are not in accordance with, or an alternative for, similar measures calculated under generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. NUBURU believes EBITDA and Free Cash Flow are useful in evaluating our operational performance. We use these non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We also use these non-GAAP measures to assess performance against business objectives, make business decisions, develop budgets, forecast future periods, assess trends, and evaluate financial impacts of various scenarios. Additionally, we believe that these non-GAAP measures, in combination with its financial results calculated in accordance with GAAP, provide investors with additional perspective. To gain a complete picture of all effects on our financial results from any and all events, management does (and investors should) rely upon the GAAP measures as well, as the items excluded from non-GAAP measures may contribute to not accurately reflecting the underlying performance of the company’s continuing operations for the period in which they are incurred. Furthermore, the use of non-GAAP measures has limitations in that such measures do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP, and these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures.