Fourth quarter and full year total revenue
of $0.4 million and $1.4 million, representing a year-over-year
increase of 602% and 282%, respectively
Launched Second Generation Product - NUBURU
BL™-Series Lasers
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
fourth quarter and the fiscal year ended December 31, 2022.
“We ended 2022 on a high note as we began making deliveries
under our previously announced contracts with Essentium and AFWERX.
We have begun 2023 with the business momentum to pursue our
near-term commercial and operational objectives as we completed our
business combination and our listing on the NYSE American exchange
and we continue to ship lasers systems,” said Dr. Mark Zediker, CEO
and Co-Founder of NUBURU. “We also launched our latest product, the
NUBURU BL™-Series at the recent Photonics West show, which we
expect will further enhance our competitive position in today’s
market with shipments beginning in Q2.”
Dr. Zediker added, “These recent milestones further validate the
potential for our solutions in metal processing in attractive end
markets such as 3D printing, aerospace, consumer electronics and
e-mobility for the world’s transportation needs. NUBURU is
increasingly well positioned in key market segments where
innovative technology is most useful and appreciated.”
Fourth Quarter and Full Year Financial Highlights
(Unaudited)
Three Months Ended December
31,
$ Change
% Change
($ in thousands)
2022
2021
Revenue $
435
$
62
$
373
601.6
%
Total gross margin
(771
)
(689
)
(82
)
11.9
%
EBITDA⁽¹⁾
(3,859
)
(2,505
)
(1,354
)
54.1
%
Capital expenditures
(254
)
(110
)
(144
)
130.9
%
Free cash flow⁽¹⁾
(3,194
)
(1,943
)
(1,251
)
64.4
%
Year Ended December
31,
$ Change
% Change
($ in thousands)
2022
2021
Revenue $
1,440
$
377
$
1,063
282.0
%
Total gross margin
(3,419
)
(1,390
)
(2,029
)
146.0
%
EBITDA⁽¹⁾
(13,547
)
(8,838
)
(4,709
)
53.3
%
Capital expenditures
(536
)
(426
)
(110
)
25.8
%
Free cash flow⁽¹⁾
(10,764
)
(8,233
)
(2,531
)
30.7
%
______________
(1)
EBITDA and Free cash flow are non-GAAP financial measures. See “Use
of Non-GAAP Financial Measures” below for our definitions of, and
additional information about, EBITDA and Free cash flow and for a
reconciliation to the most directly comparable U.S. GAAP financial
measures.
“Our fourth quarter and full year 2022 results highlight the
continuation of our commercialization efforts. Despite the
difficult market conditions, we are pleased to have successfully
completed our business combination, which we believe has positioned
us well for continued growth in our target markets,” stated Brian
Knaley, CFO of NUBURU. “While we are pleased with our recent
performance, we are also extremely excited about our future
prospects, and we plan to provide the market with updated financial
guidance in March 2023.”
Recent Business Highlights
- NUBURU completed its business combination resulting in NUBURU
becoming a publicly listed company on the NYSE American
exchange.
- NUBURU announced the BL-Series Launch at Photonics West in
January 2023. The BL-Series lasers are designed as easy-to-service
packages that can readily integrate with scanners and beam delivery
systems.
- NUBURU has delivered multiple laser systems to Essentium for
qualification into their metal additive manufacturing system.
- NUBURU continues to deliver upon milestones per the previously
announced contract with the U.S. Air Force’s AFWERX. These
milestones included delivery of multiple systems to the AFWERX
sponsored additive program.
- With the closing of the business combination, NUBURU expanded
its board to include diverse and seasoned directors with the
requisite public company experience to advise on NUBURU’s entrance
to the public markets and the execution of its growth plans.
About NUBURU
Founded in 2015, NUBURU 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.
Use of Non-GAAP Financial Measures
In this press release, the Company includes EBITDA and Free cash
flow, which are non-GAAP performance measures that the Company uses
to supplement its results presented in accordance with U.S. GAAP.
As required by the rules of the United States Securities and
Exchange Commission (“SEC”), the Company has provided herein a
reconciliation of the non-GAAP financial measures contained in this
press release to the most directly comparable measures under GAAP.
In addition to the Company’s results determined in accordance with
GAAP, the Company’s management believes these non-GAAP measures are
useful in evaluating its operational performance. The Company’s
management uses these non-GAAP financial information to evaluate
the Company’s ongoing operations and for internal planning and
forecasting purposes. The Company’s management believes that
non-GAAP financial information, when taken collectively and in
context, may be helpful to investors in assessing the Company’s
operating performance and trends and in comparing the Company’s
financial measures with those of comparable companies that may
present similar non-GAAP financial measures.
EBITDA and Free Cash Flow
The Company defines “EBITDA” as income (loss), plus (minus)
depreciation and amortization expenses, plus (minus) interest, plus
(minus) taxes and “Free cash flow” as net cash from (used in)
operating activities less capital expenditures. EBITDA and Free
cash flow are intended as supplemental measures of the Company’s
performance that are neither required by, nor presented in
accordance with, GAAP and these measures should not be considered a
substitute for net income (loss), and net cash used in operating
activities reported in accordance with GAAP. The Company’s
computation of EBITDA and Free cash flow may not be comparable to
other similarly titled measures computed by other companies,
because all companies may not calculate EBITDA or Free cash flow in
the same fashion.
Limitations of Non-GAAP Financial Measures
There are a number of limitations related to EBITDA, including
the following:
- EBITDA excludes certain recurring, non-cash charges, such as
depreciation of property and equipment and/or amortization of
intangible assets. While these are non-cash charges, the Company
may need to replace the assets being depreciated and amortized in
the future and EBITDA does not reflect cash requirements for these
replacements or new capital expenditure requirements.
- EBITDA does not reflect interest expense, net, which may
constitute a significant recurring expense in the future.
- Free cash flow does not reflect the impact of equity or debt
raises or repayment of debt or dividends paid.
Because of these and other limitations, EBITDA and Free cash
flow should not be considered in isolation or as a substitute for
performance measures calculated in accordance with GAAP. The
Company compensates for these limitations by relying primarily on
the Company’s GAAP results and using EBITDA and Free cash flow on a
supplemental basis. You should review the reconciliation of the
Company’s net loss to EBITDA and net loss to Free cash flow below
and not rely on any single financial measure to evaluate the
Company’s business.
The Company’s presentation of EBITDA should not be construed as
an inference that its future results will be unaffected by unusual
or non-recurring items and its presentation of Free cash flow does
not necessarily indicate whether cash flows will be sufficient to
fund its cash needs.
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. 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) the ability
to continue to meet the security exchange’s listing standards; (2)
failure to achieve expectations regarding its product development
and pipeline; (3) the inability to access sufficient capital to
operate as anticipated; (4) the risk that the business combination
disrupts current plans and operations of NUBURU as a result of the
consummation of the business combination; (5) the inability to
recognize the anticipated benefits of the business combination,
which may be affected by, among other things, competition, the
ability of the Company to grow and manage growth profitably,
maintain relationships with customers and suppliers and retain its
management and key employees; (6) changes in applicable laws or
regulations; (7) the possibility that NUBURU may be adversely
affected by other economic, business and/or competitive factors;
(8) the inability to obtain financing from Lincoln Park Capital;
(9) the impact of the COVID-19 pandemic, including any mutations or
variants thereof, and its effect on business and financial
conditions; (10) volatility in the markets caused by geopolitical
and economic factors; and (11) other risks and uncertainties set
forth in the sections entitled “Risk Factors” and “Cautionary Note
Regarding Forward-Looking Statements” in NUBURU’s Current Report on
Form 8-K filed by NUBURU with the Securities and Exchange
Commission (the “SEC”) on February 6, 2023, Quarterly Report on
Form 10-Q for the quarterly period ended September 30, 2022 filed
by NUBURU with the SEC on November 14, 2022 and the business
combination proxy statement/prospectus filed by NUBURU with the SEC
on December 12, 2022 and other documents filed with the SEC 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 securities
laws.
NUBURU Inc. BALANCE SHEETS
(Unaudited)
December 31,
2022
2021
ASSETS
Current assets:
Cash and cash equivalents
$
2,880,254
$
6,007,575
Accounts receivable
327,200
223,275
Inventories, net
972,695
410,098
Deferred financing costs
4,258,515
-
Prepaid expenses and other
46,737
70,073
Total current assets
8,485,401
6,711,021
Property and equipment, net
3,771,849
3,980,280
Construction in progress
188,912
-
Right-of-use assets
641,651
-
Deposits
34,359
34,359
TOTAL ASSETS
$
13,122,172
$
10,725,660
LIABILITIES AND STOCKHOLDERS'
(DEFICIT) EQUITY
Current liabilities:
Accounts payable
$
4,456,587
$
221,188
Accrued expenses
2,312,118
646,863
Operating lease liability
343,049
-
Contract liabilities
178,750
173,050
Convertible notes payable
7,300,000
-
Total current liabilities
14,590,504
1,041,101
Deferred rent
-
96,484
Operating lease liability, net of current
portion
373,907
-
Total liabilities
14,964,411
1,137,585
Stockholders' (deficit) equity:
Preferred stock
Series A preferred stock, $0.0001 par
value; 12,000,000 shares authorized, 8,000,000 issued and
outstanding; aggregate liquidation preference of $11,707,559 and
$11,227,559 at December 31, 2022 and 2021, respectively
800
800
Series A‑1 preferred stock, $0.0001 par
value; 3,520,914 shares authorized, 3,478,263 issued and
outstanding; aggregate liquidation preference of $5,669,728 and
$5,429,728 at December 31, 2022 and 2021, respectively
348
348
Series B preferred stock, $0.0001 par
value; 4,000,000 shares authorized, 3,123,088 issued and
outstanding; aggregate liquidation preference of $20,547,599 and
$19,610,673 at December 31, 2022 and 2021, respectively
312
312
Series B‑1 preferred stock, $0.0001 par
value; 24,625,000 shares authorized, 24,625,000 issued and
outstanding; aggregate liquidation preference of $22,513,127 and
$21,331,127 at December 31, 2022 and 2021, respectively
2,463
2,463
Series C preferred stock, $0.0001 par
value; 1,166,372 shares authorized, 1,166,372 and 1,128,594 issued
and outstanding as of December 31, 2022 and 2021, respectively;
aggregate liquidation preference of $12,030,361 and $11,303,062 at
December 31, 2022 and 2021, respectively
117
113
Common stock, $0.0001 par value;
72,000,000 shares authorized, 10,782,091 and 9,999,051 shares
issued and outstanding as of December 31, 2022 and 2021,
respectively
1,077
999
Additional paid‑in capital
59,344,952
56,646,247
Accumulated deficit
(61,192,308
)
(47,063,207
)
Total stockholders' (deficit) equity
(1,842,239
)
9,588,075
TOTAL LIABILITIES AND STOCKHOLDERS'
(DEFICIT) EQUITY
$
13,122,172
$
10,725,660
NUBURU Inc. STATEMENT OF
OPERATIONS (Unaudited)
Year Ended December 31,
2022
2021
Net revenues
$
1,440,428
$
376,665
Cost of revenues
Materials
472,440
24,605
Direct labor
1,742,796
570,432
Direct job costs
2,391,796
822,509
Overhead
252,567
348,723
Total cost of revenues
4,859,599
1,766,269
Gross deficit
(3,419,171
)
(1,389,604
)
Operating expenses
Research and development
4,546,057
2,463,307
Sales and marketing
708,144
1,647,552
General and administrative
5,324,417
3,884,677
Total operating expenses
10,578,618
7,995,536
Loss from operations
(13,997,789
)
(9,385,140
)
Other income (expense)
Interest income
43,976
1,165
Interest expense
(175,288
)
-
Total other income (expense)
(131,312
)
1,165
Net loss and comprehensive loss
$
(14,129,101
)
$
(9,383,975
)
Net loss available to common
stockholders
$
(17,317,546
)
$
(12,240,023
)
Net loss per common share – basic and
diluted
$
(1.64
)
$
(1.23
)
Weighted average common shares outstanding
– basic and diluted
10,590,335
9,973,846
NUBURU Inc. STATEMENTS OF CASH
FLOWS (Unaudited)
Year Ended December 31,
2022
2021
Cash flows from operating activities
Net loss
$
(14,129,101
)
$
(9,383,975
)
Adjustments to reconcile net loss to cash
used in operating activities:
Depreciation and amortization
450,505
546,944
Share based compensation expense
2,362,340
441,367
Loss on disposal of property and
equipment
-
147,469
Excess and obsolete inventory reserve
adjustments
(590,137
)
236,748
Inventory lower of cost and net realizable
value adjustments
332,021
329,331
Changes in operating assets and
liabilities:
Inventories
(199,429
)
(234,503
)
Accounts Receivable
(103,925
)
(170,275
)
Prepaid expenses and other
23,336
(45,813
)
Operating lease right-of-use asset
292,932
-
Accounts payable
628,702
(24,147
)
Accrued expenses
1,013,437
223,631
Contract liabilities
5,700
137,274
Operating lease liability
(314,111
)
-
Deferred rent
-
(10,846
)
Net cash used in operating activities
(10,227,730
)
(7,806,795
)
Cash flows from investing activities
Proceeds from the sale of property and
equipment
-
195,492
Purchases of property and equipment
(536,038
)
(426,445
)
Net cash used in investing activities
(536,038
)
(230,953
)
Cash flows from financing activities
Proceeds from issuance of convertible
promissory note
7,300,000
-
Proceeds from issuance of common stock ‑
options exercised
147,557
7,800
Proceeds from issuance of preferred
stock
188,890
5,642,970
Net cash provided by financing
activities
7,636,447
5,650,770
Net decrease in cash and cash
equivalents
(3,127,321
)
(2,386,978
)
Cash and cash equivalents, beginning of
period
6,007,575
8,394,553
Cash and cash equivalents, end of
period
$
2,880,254
$
6,007,575
Supplemental non-cash flow investing and
financing activities:
Right-of-use asset obtained in exchange
for new operating lease liability
$
934,583
$
-
Deferred financing costs included in
accounts payable and accrued expenses
$
4,258,515
$
-
Reconciliation of Non-GAAP Financial Measures:
The following tables reconcile the Company’s net loss (the most
directly comparable GAAP measure to EBITDA) to EBITDA for the
periods presented and the Company’s net cash used in operating
activities (the most directly comparable GAAP measure to Free Cash
Flow) to Free cash flow for the periods presented:
Three Months EndedDecember 31, ($ in thousands)
2022
2021
Net loss
$
(4,022
)
$
(2,644
)
Income tax expense
-
-
Interest (Income) expense, net
93
-
Depreciation and amortization
70
139
EBITDA
(3,859
)
(2,505
)
Three Months EndedDecember 31, ($ in
thousands)
2022
2021
Net cash used in operating activities
$
(2,940
)
$
(1,833
)
Capital expenditures
(254
)
(110
)
Free cash flow
(3,194
)
(1,943
)
Year EndedDecember 31, ($ in thousands)
2022
2021
Net loss
$
(14,129
)
$
(9,384
)
Income tax expense
-
-
Interest (Income) expense, net
131
(1
)
Depreciation and amortization
451
547
EBITDA
(13,547
)
(8,838
)
Year EndedDecember 31, ($ in thousands)
2022
2021
Net cash used in operating activities
$
(10,228
)
$
(7,807
)
Capital expenditures
(536
)
(426
)
Free cash flow
(10,764
)
(8,233
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230221005548/en/
NUBURU - Media Contact Brian Knaley ir@nuburu.net
NUBURU - Investor Relations Contact Maria Hocut
Maria@blueshirtgroup.com
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