Aeluma, Inc.

Aeluma, Inc. Annual Report - Plain English Breakdown
For Everyday Investors

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1. What Does Aeluma Do, and How Was This Year?

Aeluma builds advanced sensors and semiconductor chips used in self-driving cars, drones, and communication systems. This year, they focused on scaling production and securing deals with larger clients.

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2. Financial Performance: Growth vs. Losses

• Revenue: $12.5 million (up 25% from last year).
• Losses: $4.2 million (improved from a $6.8M loss last year).
• Key Growth Drivers: Increased sales to defense and automotive companies. Heavy R&D and factory investments continue.

TLDR: Sales are climbing, but profitability is still a future goal. Typical for a growing tech company.

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3. Wins vs. Challenges

✅ Big Wins:

• Landed first major contract with a top-10 automaker.
• Secured a U.S. government grant for defense tech development.
• Launched a new chip that’s 30% faster than previous models.

🚨 Challenges:

• Supply chain delays disrupted production for 3 months.
• 40% of revenue comes from just 2 customers (high risk if one leaves).

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4. Financial Health Check

• Cash on Hand: $8 million (down from $15M last year).
• Debt: $2 million (low for the industry).
• Cash Burn: Slower than last year, but they’ll likely need more funding in 12–18 months.

Investor Takeaway: Stable for now, but monitor cash reserves closely.

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5. Risks to Watch

• Customer Concentration: Reliance on a few big clients.
• Tech Competition: Larger rivals could undercut prices.
• Supply Chain: Global chip shortages remain a threat.

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6. Leadership and Strategy Shifts

• New CEO: Hired a semiconductor industry veteran with 20+ years’ experience.
• Board Upgrades: Added heavy hitters from NVIDIA, finance, and defense tech.
• Strategic Pivot: Focusing on defense/aerospace contracts for higher margins.

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7. What’s Next?

• Plans to launch a low-cost sensor in 2025.
• Targeting profitability by 2026 if sales grow as expected.
• Risks include economic slowdowns reducing tech spending.

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8. Market Trends

• Opportunities: Surging demand for chips in AI, electric vehicles, and robotics.
• Threats: U.S.-China trade rules could increase material costs.

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9. Bottom Line for Investors

Aeluma is growing fast with cutting-edge tech, but it’s still a high-risk bet. Pros: Strong leadership, niche market focus, and 25% revenue growth. Cons: Cash burn, customer concentration, and supply chain vulnerabilities. Best for investors comfortable with volatility and bullish on advanced sensors’ long-term potential.

Watch in 2024: Cash levels, customer diversity, and progress toward low-cost sensor launch.

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