Aeluma, Inc. (ALMU) - Q1 2026 (Ended Sept 30, 2025) Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended September 30, 2025. Aeluma, Inc. is a semiconductor company developing novel optoelectronic and electronic devices using compound semiconductors on large-diameter substrates. The company operates R&D and manufacturing facilities in Goleta, California, and serves commercial and government sectors including defense, aerospace, AI, and mobile applications.
Key Financial Metrics
| Metric | Q1 2026 (Sept 30, 2025) | Q1 2025 (Sept 30, 2024) |
|---|---|---|
| Revenue | $1.385 million | $0.481 million |
| Net Loss | $(1.493) million | $(0.730) million |
| Loss Per Share (Basic/Diluted) | $(0.09) | $(0.06) |
| Cash & Cash Equivalents | $25.920 million | $1.291 million (beginning of period) |
| Total Cash, Equivalents & CDs | $38.147 million | $3.503 million (end of prior period) |
| Working Capital | $39.456 million | $16.630 million (June 30, 2025) |
| Total Liabilities | $1.760 million | $1.508 million (June 30, 2025) |
| Stock-Based Compensation | $1.056 million | $0.167 million |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 188% to $1.385 million, driven primarily by government contracts ($1.34 million) compared to $431 thousand in the prior year.
- Expense Expansion: Operating expenses rose 147% to $2.993 million. This increase was due to higher material purchases for revenue delivery and increased compensation costs (salaries and stock-based compensation) from new hires supporting business expansion.
- Liquidity Transformation: Cash and cash equivalents increased by $22.4 million. This was driven by a public offering in September 2025 yielding $23.4 million in net proceeds, offsetting operating cash outflows of $0.815 million.
- Debt Elimination: Convertible notes issued in August 2024 were fully converted to equity in March 2025. Consequently, there is no amortization of discount on convertible notes in the current period, unlike the prior year.
Guidance, Outlook, and Risks
- Capital Raise: The company completed a September 2025 public offering of 1.955 million shares at $13.00 per share, raising $23.4 million net. Proceeds are designated for manufacturing expansion, hiring, and working capital.
- Going Concern: Management states that substantial doubt regarding the company's ability to continue as a going concern has been alleviated following the capital raises, providing sufficient liquidity for at least the next 12 months.
- Government Contracts: Recent awards include contracts with NASA (quantum computing/sensing), the U.S. Navy (submarine imaging sensors), and the Department of Energy (SWIR photodetectors). Total remaining performance obligations on government contracts are $9.0 million.
- Internal Controls: Management concluded that disclosure controls and procedures were not effective as of September 30, 2025, due to insufficient staffing in the finance department. Remediation is underway, including the recent hiring of a new CFO.
- Risk Factors: Risks include potential impacts from U.S. federal government shutdowns on revenue and operations, reliance on government contracts, and the need for future financing to support long-term growth.
Investor Verification Checklist
- Revenue Concentration: Verify the sustainability of revenue given that 65% and 17% of Q1 2026 revenue came from two specific customers (Customers E and B), which are government agencies.
- Internal Control Remediation: Monitor the progress of hiring qualified accounting personnel and the effectiveness of new internal controls to address the material weakness identified.
- Contract Milestones: Track the achievement of milestones for the $9.0 million in remaining government performance obligations to ensure future revenue recognition.
- Burn Rate vs. Cash Runway: Assess if the $38.1 million cash balance is sufficient to cover the current operating loss trajectory ($1.5M/quarter) while scaling manufacturing operations.
- Dilution: Review the impact of the recent equity issuances (March and September offerings) and outstanding options/warrants on future earnings per share.