Nuburu, Inc. Segments Disclosure
NOTE 14. SEGMENT REPORTING
Operating segments are defined as components of an entity about which discrete financial information is evaluated regularly by the Chief Operating Decision Maker ("CODM") in deciding how to allocate resources and assess performance. The Company operates and manages its business as one business segment, which is high-power, high-brightness blue laser technology. Accordingly, the Company has one reportable segment. The Company has a single management team that reports to the , the Company's CODM, who comprehensively manages the entire Company. The accounting policies of the segment are the same as those described in the summary of significant accounting policies.
When evaluating the Company’s financial performance, the CODM is regularly provided with more detailed expense information than what is included in the Company’s statements of operations. The CODM uses net loss, as reported in the consolidated statements of operations, in evaluating the performance of the segment. Decisions regarding resource allocation are made primarily during the annual budget planning process and reallocated as needed throughout the year. The measure of segment assets is reported on the balance sheets as total assets.
The following table shows a reconciliation of the Company’s net loss, including the significant expense categories regularly provided to and reviewed by the CODM, as computed under U.S. GAAP, to the Company’s total net loss in the consolidated statements of operations:
|
|
Year Ended |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
|
|
|
|
|
|
|
||
Revenue |
|
$ |
152,127 |
|
|
$ |
2,085,532 |
|
Cost of revenue: |
|
|
|
|
|
|
||
Materials |
|
|
57,867 |
|
|
|
944,615 |
|
Direct labor |
|
|
1,336,722 |
|
|
|
1,457,823 |
|
Direct job costs |
|
|
222,835 |
|
|
|
2,833,893 |
|
Overhead |
|
|
588,052 |
|
|
|
459,102 |
|
Total cost of revenue |
|
|
2,205,476 |
|
|
|
5,695,433 |
|
Gross margin |
|
|
(2,053,349 |
) |
|
|
(3,609,901 |
) |
Operating expenses: |
|
|
|
|
|
|
||
Research and development |
|
|
1,821,816 |
|
|
|
5,462,680 |
|
Selling and marketing |
|
|
468,074 |
|
|
|
1,539,690 |
|
General and administrative |
|
|
8,807,651 |
|
|
|
11,117,525 |
|
Total operating expenses |
|
|
11,097,541 |
|
|
|
18,119,895 |
|
Other segment items (1) |
|
|
(21,364,864 |
) |
|
|
1,019,350 |
|
Segment net loss |
|
$ |
(34,515,754 |
) |
|
$ |
(20,710,446 |
) |
(1) Other segment items consist of interest income, interest expense, change in fair value of warrant liabilities, change in fair value of derivative liability, loss on extinguishment of debt and other income, net.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.