Aeluma, Inc. (ALMU) - 10-K Summary for Fiscal Year Ended June 30, 2026
Business Context and Reporting Period
Aeluma, Inc. is an emerging growth company and smaller reporting company developing high-performance photonic and electronic technologies for AI datacom, defense, aerospace, and sensing applications. The company utilizes a heterogeneous integration platform combining compound semiconductors with large-diameter substrates. The reporting period covers the fiscal year ended June 30, 2026. Aeluma remains in the development stage, transitioning from R&D toward commercialization, with revenue primarily derived from U.S. government contracts.
Key Financial Metrics
| Metric | Fiscal 2026 | Fiscal 2025 |
|---|---|---|
| Revenue | $4.46 million | $4.67 million |
| Net Loss | $(9.16) million | $(3.02) million |
| Operating Expenses | $14.65 million | $6.81 million |
| Cash and Cash Equivalents | $56.01 million | $15.74 million |
| Net Working Capital | $55.4 million | $16.6 million |
| Stock-Based Compensation | $4.52 million | $1.89 million |
Liquidity: As of June 30, 2026, the company held $56.0 million in cash, cash equivalents, and certificates of deposit. The company has an "at-the-market" (ATM) offering program with $29.3 million in remaining capacity.
Material Changes vs. Prior Period
- Revenue Decline: Revenue decreased 4% to $4.46 million, driven by a reduction in government contract revenue ($4.3 million in 2026 vs. $4.4 million in 2025) and commercial product revenue ($0.18 million vs. $0.27 million).
- Expense Surge: Operating expenses increased 115% to $14.65 million. This was primarily due to higher material purchases for product delivery and increased compensation costs (salaries, stock-based compensation, and benefits) associated with hiring new employees to support business scaling.
- Net Loss Expansion: Net loss increased 203% to $9.16 million, reflecting the significant rise in operating expenses.
- Other Income: Other income turned positive at $1.03 million (primarily interest income), compared to an expense of $0.88 million in the prior year which included amortization of convertible notes and fair value changes of derivative liabilities.
- Capital Raise: The company raised approximately $43.5 million in net proceeds from public offerings during the fiscal year, significantly bolstering its cash position.
Outlook, Risks, and Management Commentary
- Government Funding: Aeluma signed a letter of intent for up to $30 million in proposed funding under the CHIPS and Science Act. This award is subject to definitive documentation and would require the issuance of equity to the U.S. Department of Commerce.
- Commercialization Strategy: The company is focusing on AI datacom, mobile, defense, and quantum markets. It relies on a capital-efficient model using external foundries (e.g., Tower Semiconductor, Sumitomo Chemical) for production-scale fabrication while maintaining internal R&D and prototyping.
- Internal Control Weakness: Management identified a material weakness in internal control over financial reporting as of June 30, 2026, citing insufficient personnel with technical accounting expertise. A full-time CFO was hired in August 2025, and additional accounting staff were added in August 2026 to remediate this issue.
- Risk Factors: Key risks include dependence on a limited number of government customers, the lengthy qualification process for commercial semiconductor products, reliance on third-party manufacturers, and the potential for future dilution if additional capital is raised.
Investor Verification Checklist
- CHIPS Act Award Status: Verify the execution of definitive award documents for the proposed $30 million CHIPS Act funding and the associated equity issuance terms.
- Remediation of Internal Controls: Monitor progress in remediating the material weakness in internal controls over financial reporting to ensure future reporting reliability.
- Customer Concentration: Assess the risk of revenue volatility given that 59% and 14% of 2026 revenue came from two customers (all government agencies).
- Commercial Pipeline: Evaluate the progress of initial commercial sales orders and the timeline for customer qualification in AI and defense sectors.
- Cash Burn Rate: Review the sustainability of the current cash position ($56 million) against the increasing operating expense trajectory ($14.6 million annually).