Aeluma, Inc.

Aeluma, Inc. 2024 Annual Report Review

Introduction

Aeluma, Inc. is a company focused on developing novel optoelectronic devices for sensing and communications applications. The company has pioneered a technique to manufacture devices using high-performance compound semiconductor materials on large-diameter substrates, which are commonly used to manufacture mass-market microelectronics. This enables cost-effective manufacturing of high-performance photodetectors and photodetector array circuits for imaging applications in mobile devices, as well as other technologies.

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Business Overview

Aeluma's technology has the potential to enhance the performance and capability of camera image sensors, light detection and ranging (LiDAR), augmented reality/virtual reality (AR/VR), facial recognition, and other applications. The company leverages compound semiconductor materials, allowing their devices to operate at longer wavelengths than traditional silicon-based image sensors, up to at least 1600 nm. This is advantageous for several reasons, including eye safety and improved imaging in low light and direct sunlight conditions.

Recent Developments

For the fiscal year ended June 30, 2024, Aeluma was awarded several contracts totaling $1,323,237, some of which are from the U.S. Navy, the Office of the Secretary of Defense, and the Department of Energy. These awards are firm fixed-price contracts that will be paid upon completion of certain milestones and may include deliveries of samples or materials.

Financial Performance

Revenue

Aeluma's revenue increased by $725,215, or 375.1%, to $918,554 for the year ended June 30, 2024, from $193,339 for the same period in 2023. This increase was primarily due to government contracts, which contributed $853,798 to the total revenue.

Operating Expenses

Operating expenses decreased by $221,162, or 3.9%, to $5,481,862 for the year ended June 30, 2024, from $5,703,024 for the same period in 2023. This decrease was primarily due to a reduction in consulting expenses, offset partially by increased salaries and stock-based compensation expenses.

Net Loss

Aeluma reported a net loss of $4,562,295 for the year ended June 30, 2024, compared to a net loss of $5,379,582 for the same period in 2023. The decrease in net loss was primarily due to the increase in revenue and the decrease in operating expenses.

Cash Flow

Net cash used in operating activities was $3,454,779 for the year ended June 30, 2024, compared to $3,637,972 for the same period in 2023. Net cash used in investing activities was $321,838 for the year ended June 30, 2024, compared to $672,545 for the same period in 2023. Net cash used in financing activities was $4,001 for the year ended June 30, 2024, compared to net cash provided by financing activities of $5,641,485 for the same period in 2023.

Risk Factors

Aeluma's 10-K filing highlights several risk factors, including the company's limited operating history, the need for additional financing, and the potential for significant additional expenditures to develop and expand its business. The company also faces competition from larger, more established companies in the optoelectronic devices market.

Conclusion

Aeluma, Inc. has shown significant growth in revenue and a reduction in net loss for the fiscal year ended June 30, 2024. The company's innovative technology and recent government contracts position it well for future growth. However, the company faces several risks, including the need for additional financing and competition from larger companies. Overall, Aeluma has a promising future, but potential investors should carefully consider the risks involved.

Investment Score

Based on the analysis of Aeluma's 10-K filing, the company receives an investment score of 7.5 out of 10. This score reflects the company's strong growth potential and innovative technology, balanced against the risks and challenges it faces.