NUBURU, Inc. Announces Third Quarter 2023 Results and Operational Updates

Forward-Looking Statements

This press release contains certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including certain financial forecasts and projections and relationships with customers and third parties. All statements other than statements of historical fact contained in this press release may be forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “plan,” “seek,” “targets,” “projects,” “could,” “would,” “continue,” “forecast” or the negatives of these terms or variations of them or similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements are based upon estimates, forecasts and assumptions that, while considered reasonable by NUBURU and its management, are inherently uncertain and many factors may cause the company’s actual results to differ materially from current expectations which include, but are not limited to: (1) manufacturing and delivery of products could be delayed by supply constraints, manufacturing capacity constraints, shortages of skilled labor, unexpected defects or bugs in the manufacturing process or the product, and other risks typical for highly sophisticated products, particularly at an early stage of manufacturing ramp; (2) delays or other difficulties in product development; (3) the inability to access sufficient capital, whether from Lincoln Park Capital or other sources, to operate as anticipated; (4) customers may order fewer products than anticipated; (5) the Company may receive less revenue than anticipated from multi-year, multi-company government contracts; (6) failure to retain and recruit key personnel, including key executives and skilled engineers, could compromise the Company’s ability to sell products or to develop new products in timely fashion; (6) the Company could be adversely affected by other economic, business and competitive factors, including volatility in the financial system and markets caused by geopolitical and economic factors; (7) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in NUBURU’s most recent periodic report on Form 10-K or Form 10-Q and other documents filed with the Securities and Exchange Commission from time to time. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. NUBURU does not give any assurance that it will achieve its expected results. NUBURU assumes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by applicable law.

NUBURU, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenues

$

186,743

 

$

868,153

 

$

1,710,794

 

 

$

1,005,528

 

Cost of revenues

 

 

1,115,703

 

 

 

1,832,036

 

 

 

4,813,404

 

 

 

3,653,980

 

Gross margin

 

(928,960

)

 

(963,883

)

 

(3,102,610

)

 

 

(2,648,452

)

Operating expenses:

 

 

 

Research and development

 

1,348,450

 

 

1,066,161

 

 

4,300,166

 

 

 

2,684,694

 

Selling and marketing

 

 

523,627

 

 

 

95,670

 

 

 

1,066,289

 

 

 

603,629

 

General and administrative

 

2,335,605

 

 

1,757,104

 

 

8,409,877

 

 

 

4,131,477

 

Total operating expenses

 

4,207,682

 

 

2,918,935

 

 

13,776,332

 

 

 

7,419,800

 

Loss from operations

 

 

(5,136,642

)

 

 

(3,882,818

)

 

 

(16,878,942

)

 

 

(10,068,252

)

Interest income

 

 

46,998

 

 

 

14,875

 

 

 

91,914

 

 

 

19,178

 

Interest expense

 

 

(162,765

)

 

 

(55,276

)

 

 

(175,149

)

 

 

(57,490

)

Other income, net

 

167,108

 

 

 

 

1,002,647

 

 

 

 

Loss before provision for income taxes

 

$

(5,085,301

)

 

$

(3,923,219

)

 

$

(15,959,530

)

 

$

(10,106,564

)

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

Net loss and comprehensive loss

$

(5,085,301

)

$

(3,923,219

)

$

(15,959,530

)

 

$

(10,106,564

)

Net loss per share, basic and diluted

$

(0.14

)

$

(0.71

)

$

(0.50

)

 

$

(1.86

)

Weighted-average common shares used to compute net loss per share attributable to common stockholders, basic and diluted

 

35,425,105

 

 

5,537,557

 

 

31,955,539

 

 

 

5,421,056

 

NUBURU, INC.

Condensed Consolidated Balance Sheets

(Unaudited)

 

 

 

September 30,
2023

 

December 31,
2022

 

 

(Unaudited)

 

 

ASSETS

 

 

 

 

Current assets

 

 

 

Cash and cash equivalents

 

$

1,626,730

 

 

$

2,880,254

 

Accounts receivable, net

 

 

469,904

 

 

 

327,200

 

Inventories, net of allowance of $1,047,830 and $292,990, respectively

 

 

1,086,741

 

 

 

972,695

 

Deferred financing costs

 

 

65,000

 

 

 

4,258,515

 

Prepaid expenses and other current assets

 

 

579,244

 

 

 

46,737

 

Total current assets

 

 

3,827,619

 

 

 

8,485,401

 

Property and equipment, net

 

 

4,763,058

 

 

 

3,771,849

 

Construction in progress

 

 

59,672

 

 

 

188,912

 

Right-of-use assets

 

 

410,188

 

 

 

641,651

 

Other assets

 

 

34,359

 

 

 

34,359

 

TOTAL ASSETS

 

$

9,094,896

 

 

$

13,122,172

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable

 

$

4,184,347

 

 

$

4,456,587

 

Accrued expenses

 

 

1,669,842

 

 

 

2,312,118

 

Current portion of operating lease liability

 

 

366,033

 

 

 

343,049

 

Contract liabilities

 

 

230,075

 

 

 

178,750

 

Current portion of convertible notes payable

 

 

 

 

 

7,300,000

 

Total current liabilities

 

 

6,450,297

 

 

 

14,590,504

 

Operating lease liability

 

 

95,409

 

 

 

373,907

 

Convertible notes payable

 

 

6,713,241

 

 

 

 

Warrant liabilities

 

 

334,216

 

 

 

 

TOTAL LIABILITIES

 

 

13,593,163

 

 

 

14,964,411

 

Commitments and Contingencies (Note 6)

 

 

 

 

Stockholders’ Equity (Deficit)

 

 

 

 

Convertible preferred stock, $0.0001 par value; 50,000,000 shares authorized; 3,038,905 and 23,237,703 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively

 

 

304

 

 

 

4,040

 

Common stock, $0.0001 par value; 250,000,000 shares authorized; 35,554,624 and 5,556,857 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively

 

 

3,555

 

 

 

1,077

 

Additional paid-in capital

 

 

72,649,712

 

 

 

59,344,952

 

Accumulated deficit

 

 

(77,151,838

)

 

 

(61,192,308

)

Total Stockholders’ Equity (Deficit)

 

 

(4,498,267

)

 

 

(1,842,239

)

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

$

9,094,896

$

13,122,172


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