Aeluma Inc

Previous wording

We have been developing our materials and characterization capabilities at our headquarters in Goleta, California, in connection with the further development of our business and the implementation of our plan of operations. We have installed some key manufacturing equipment at our headquarters and will continue to develop relationships with manufacturing partners to carry out certain steps of our manufacturing processes externally. We have gained access to a rapid prototyping facility and are leveraging this access to fabricate early-stage prototypes. In the future, we intend to implement appropriate quality and manufacturing controls. Some equipment was procured previously, and other equipment is being procured through purchase orders with equipment vendors.

Current wording

We have been developing our materials and characterization capabilities at our headquarters in Goleta, California, in connection with the further development of our business and the implementation of our plan of operations. We have installed key manufacturing equipment at our headquarters and will continue to develop relationships with manufacturing partners to carry out certain steps of our manufacturing processes externally. We have gained access to a rapid prototyping facility and are leveraging this access to fabricate early-stage prototypes. In the future, we intend to implement appropriate quality and manufacturing controls. Some equipment was procured previously, and other equipment is being procured through purchase orders with equipment vendors.

Previous wording

The cost of revenue consists of costs of materials, as well as direct compensation and expenses incurred to provide deliverables that resulted in payment of our success fee and wafers delivered. We anticipate that our cost of revenue will vary substantially depending on the nature of products and/or services delivered in each customer engagement.

Current wording

The cost of revenue consists of costs of materials, as well as direct compensation and expenses incurred to provide deliverables that resulted in payment of our success fee and wafers delivered. We anticipate that our cost of revenue will vary substantially depending on the nature of products and/or services delivered in each customer engagement. Research and development expenses consist primarily of compensation and related costs for personnel, including stock-based compensation and employee benefits, costs associated with design, fabrication, packaging and testing of our devices, and facility lease and utility expenses. We expense research and development expenses as incurred.

Previous wording

Other income, net of other expenses, consists primarily of income generated from subleasing a portion of our research and development facility and interest income.

Current wording

Other income, net of other expenses, consists primarily of interest income and income generated from subleasing a portion of our research and development facility. The sub-lease ended in March 2023

Previous wording

Six months ended December 31, 2023 compared to the six months ended December 31, 2022

Current wording

Nine months ended March 31, 2024 compared to the nine months ended March 31, 2023

Previous wording

Our results of operations for the six-month period ended December 31, 2023, as compared to the six-month period ended December 31, 2022, were as follows:

Current wording

Our results of operations for the nine-month period ended March 31, 2024, as compared to the nine-month period ended March 31, 2023, were as follows:

Previous wording

Revenue: Revenue increased 100% to $295,392, of which $32,400 was from product sales for sampling purchases and $262,992 was from government contracts, for the six months ended December 31, 2023. During the six months ended December 31, 2022, we were pre-revenue and, accordingly recorded no revenues.

Current wording

Revenue: Revenue increased 100% to $639,286, of which $32,400 was from product sales for sampling purchases and $606,886 was from government contracts, for the nine months ended March 31, 2024. During the nine months ended March 31, 2023, we were pre-revenue and, accordingly recorded no revenues.

Previous wording

Operating expenses: Operating expense increased $185,321 to $2,906,902 for the six months ended December 31, 2023 from $2,721,581 for the same period in 2022, due primarily to increased cost of revenue and stock-based compensation expenses, offset primarily by a reduction in consulting expenses.

Current wording

Operating expenses: Operating expense decreased $76,513 to $4,213,564 for the nine months ended March 31, 2024 from $4,290,077 for the same period in 2023, due primarily to a reduction in consulting expenses, offset partially by increased salaries and stock-based compensation expenses.

Previous wording

Other income: Other income decreased $110,310 to $681 for the six months ended December 31, 2023 from $110,991 for the same period in 2022. The decrease was due primarily to a $105,516 decrease in sub-lease income as the sublease ended in March 2023.

Current wording

Other income: Other income decreased $217,888 to $798 for the nine months ended March 31, 2024 from $218,686 for the same period in 2023. The decrease was due primarily to a $128,921 decrease in sub-lease income as the sublease ended in March 2023.

Previous wording

Income tax expense: We did not record income tax expense for either of the six months ended December 31, 2023 and 2022.

Current wording

Income tax expense: We did not record income tax expense for either of the nine months ended March 31, 2024 and 2023.

Previous wording

With the exception of some lingering supply chain challenges, the residual effects of the COVID-19 pandemic did not have a significant impact on the Company's results of operations or financial condition for the six months ended December 31, 2023.

Current wording

With the exception of some lingering supply chain challenges, the residual effects of the COVID-19 pandemic did not have a significant impact on the Company’s results of operations or financial condition for the nine months ended March 31, 2024.

Previous wording

Our financial statements have been presented on the basis that are a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As presented in the financial statements, we incurred a net loss of $2,610,829 and $2,610,590 for the six months ended December 31, 2023 and 2022, respectively, and losses are expected to continue in the near term. The accumulated deficit was $11,672,895 at December 31, 2023. We have been funding our operations through private loans and the sale of common stock in private placement transactions.

Current wording

Our financial statements have been presented on the basis that are a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As presented in the financial statements, we incurred a net loss of $3,573,480 and $4,071,391 for the nine months ended March 31, 2024 and 2023, respectively, and losses are expected to continue in the near term. The accumulated deficit was $12,635,546 at March 31, 2024. We have been funding our operations through the sale of common stock in private placement transactions.

Previous wording

Management anticipates that significant additional expenditures will be necessary to develop and expand our business before significant positive operating cash flows can be achieved. Our ability to continue as a going concern is dependent upon our ability to raise additional capital and to ultimately achieve sustainable revenues and profitable operations. At December 31, 2023, we had $2,423,054 of cash and cash equivalents. These funds are insufficient to complete our business plan and as a consequence, we will need to seek additional funds, primarily through the issuance of debt or equity securities for cash to operate our business. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to us. Even if we are able to obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing or cause substantial dilution for our stockholders, in the case of equity financing.

Current wording

Management anticipates that significant additional expenditures will be necessary to develop and expand our business before significant positive operating cash flows can be achieved. Our ability to continue as a going concern is dependent upon our ability to raise additional capital and to ultimately achieve sustainable revenues and profitable operations. At March 31, 2024, we had $1,874,565 of cash and cash equivalents. These funds are insufficient to complete our business plan and as a consequence, we will need to seek additional funds, primarily through the issuance of debt or equity securities for cash to operate our business. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to us. Even if we are able to obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing or cause substantial dilution for our stockholders, in the case of equity financing.

Previous wording

We had working capital of $2,348,750 and $4,576,807 at December 31, 2023 and June 30, 2023, respectively. Current assets decreased $2,534,288 to $2,799.618 at December 31, 2023 from $5,333,906 at June 30, 2023, primarily due to a $2,648,636 decrease in cash. Current liabilities decreased $306,231 to $450,868 at December 31, 2023 from $757,099 at June 30, 2022, due primarily to decreases in accounts payable.

Current wording

We had working capital of $1,495,903 and $4,576,807 at March 31, 2024 and June 30, 2023, respectively. Current assets decreased $3,191,699 to $2,142,207 at March 31, 2024 from $5,333,906 at June 30, 2023, primarily due to a $3,197,125 decrease in cash. Current liabilities decreased $110,794 to $646,304 at March 31, 2024 from $757,099 at June 30, 2023, due primarily to decreases in accounts payable.

Previous wording

Net cash used in our operating activities were $2,480,345 and $2,001,195 for the six months ended December 31, 2023 and 2022, respectively, due primarily to net losses of $2,610,829 and $2,610,590 for the six months ended December 31, 2023 and 2022, respectively.

Current wording

Net cash used in our operating activities were $2,876,190 and $2,699,033 for the nine months ended March 31, 2024 and 2023, respectively, due primarily to net losses of $3,573,480 and $4,071,391 for the nine months ended March 31, 2024 and 2023, respectively.

Previous wording

Net cash used in our investing activities was $164,290 and $103,826 for the six months ended December 31, 2023 and 2022, respectively. Investing activities include purchase of equipment and payment for leasehold improvements.

Current wording

Net cash used in our investing activities was $316,934 and $255,579 for the nine months ended March 31, 2024 and 2023, respectively. Investing activities include purchase of equipment and payment for leasehold improvements.

Previous wording

Net cash used in our financing activities was $4,001 for the six months ended December 31, 2023 and net cash provided by our financing activities was $1,426,615 for the six months ended December 31, 2022. We paid $4,001 to purchase Lee McCarthy’s unvested restricted shares for the six months ended December 31, 2023 and received $1,426,615 from Private Placements, net of $124,385 offering cost.

Current wording

Net cash used in our financing activities was $4,001 for the nine months ended March 31, 2024 and net cash provided by our financing activities was $4,071,145 for the nine months ended March 31, 2023. We paid $4,001 to purchase Lee McCarthy’s unvested restricted shares for the nine months ended March 31, 2024 and received $4,071,145 from Private Placements, net of $270,855 offering cost.

Previous wording

A summary of our other critical accounting policies is included in our Annual Report on Form 10-K for the year ended June 30, 2023. During the six months ended December 31, 2023, there were no significant changes in our critical accounting policies.

Current wording

A summary of our other critical accounting policies is included in our Annual Report on Form 10-K for the year ended June 30, 2023. During the nine months ended March 31, 2024, there were no significant changes in our critical accounting policies.