Nuburu Inc

The information under the caption “Notes to Condensed Consolidated Financial Statements – Note 6 – Commitments and Contingencies” of the unaudited condensed consolidated financial statements of this Quarterly Report is incorporated herein by reference.

In the normal course of business, the Company may become involved in legal proceedings. The Company will accrue a liability for legal proceedings when it is probable that a liability has been incurred and the amount can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. At September 30, 2024 and December 31, 2023, the Company was not involved in any material legal proceedings.

Subsequent to the quarter ended September 30, 2024, despite the Company calling a meeting of stockholders to approve the Esousa transaction (which failed for lack of achieving quorum) and expending significant efforts to satisfy required conditions, Esousa filed a complaint in the U.S. District Court for the Southern District of New York and enjoined the Company from issuing additional securities until such stockholder approval and other requirements are satisfied, significantly impacting the Company’s ability to raise capital critical to operations. Esousa subsequently settled its claims for a payment of $50,000 and a future payment of $100,000 upon the consummation of the very transactions it sought to enjoin in its complaint.