Key highlights include the successful completion of a public offering that raised $12 million, boosting the company's cash position to approximately $6 million for planned acquisitions. The company has established Nuburu Defense LLC as its defence and security hub, which is pursuing acquisitions in electronic warfare and operational resilience, including a controlling interest in the SaaS startup Orbit S.r.l. Nuburu is also leveraging its partnership with Tekne S.p.A. to secure international defence contracts, such as a recent $6.6 million contract with a government agency in Bangladesh. Management anticipates that these strategic moves and new business lines will lead to renewed revenue growth starting with approximately $500,000 in billings in Q4 2025. Finally, the company is preparing for internal changes, including new governance evolutions and the hiring of a new financial controller, to support this significant expansion into high-growth defence markets.

1.0 Executive Overview: A Strategic Pivot to Defence & Security

Nuburu is executing a significant strategic transformation, repositioning the company from a component manufacturer to a technology leader focused on the high-growth Defence and security sectors. This pivot is being spearheaded by the newly established Nuburu Defence LLC, which will serve as the hub for synergistic acquisitions and partnerships designed to build a comprehensive Defence technology portfolio. This new direction leverages the company's core expertise in blue laser technology while expanding into adjacent, high-value markets.

The company's leadership is confident in this refined strategy, as articulated by Executive Chairman Alessandro Zamboni:

"Nuburu is making significant strides in our strategic transformation, particularly with the establishment of Nuburu Defence and our pursuit of synergistic acquisitions. While we are diligently working to improve our financial position, we are confident that our focus on blue laser technology and the Defence and security sectors will drive long-term growth and value creation for our shareholders."

This brief details the financial underpinnings of this transformation, the key strategic initiatives underway, and the significant market opportunities the company is poised to capture.

2.0 Fortifying the Financial Foundation for Growth

Executing an ambitious transformation plan centred on acquisitions requires a robust financial foundation. Nuburu has fortified its balance sheet, securing the necessary capital to execute its strategy with precision and enhance investor confidence.

Key recent financial developments include:

Successful Capital Raise: The company successfully completed a public offering, raising $12 million in gross proceeds. This vital infusion of capital enhances Nuburu's balance sheet and equity position, directly addressing the recapitalization plan accepted by the NYSE American.

Current Liquidity: As of today, Nuburu holds a cash position of approximately $6 million, specifically allocated to its acquisition program and strategic partnerships. This dedicated capital ensures the company can act decisively and opportunistically to close its targeted acquisitions without needing to seek additional near-term financing, de-risking the execution of the Transformation Plan.

Shareholder Dilution Mitigation: The Company does not anticipate issuing additional shares in connection with its Settlement Agreement with Silverback Capital Corporation (the "3(a)(10) Program"), providing a stable capital structure for current shareholders.

This fortified financial position provides the necessary resources to aggressively pursue the strategic initiatives that form the core of Nuburu's new growth trajectory.

3.0 Executing the Transformation: Pillars of the Acquisition and Partnership Strategy

Nuburu's transformation is being driven by a multi-pronged strategy of synergistic partnerships and targeted acquisitions. These moves are deliberate steps toward building an integrated Defence and security technology hub, leveraging both existing expertise and new capabilities.

3.1 The Tekne S.p.A. Partnership: Expanding Global Defence Reach

Following the agreement signed on August 27, 2025, the partnership with Italian Defence firm Tekne S.p.A. is already delivering tangible results. Nuburu played a key role in supporting Tekne to secure and successfully deliver a significant international contract worth $6.6 million with a government agency in Bangladesh. Looking forward, the strategic goal is to establish Nuburu Defence as a global Defence-tech hub for Tekne's non-Italian clients and prospects, a group that notably includes NATO countries.

3.2 The Orbit S.r.l. Acquisition: Entering the High-Growth SaaS Market

In a strategic move to enter the highly scalable Software as a Service (SaaS) market, Nuburu expects to finalize binding agreements for a controlling interest in Orbit S.r.l. by October 31, 2025. Orbit is a startup specializing in operational resilience. By integrating Orbit's SaaS-based operational resilience platform, Nuburu Defence will move beyond hardware into high-margin, recurring revenue software solutions. This immediately expands its offering to mission-critical infrastructure clients, creating a stickier and more profitable customer relationship.

3.3 The Strategic Partner Acquisition: Commercializing Blue Laser Defence Applications

Building on an agreement signed on September 23, 2025, Nuburu is working to acquire a controlling interest in a key strategic partner by year-end. The primary objective of this transaction is to integrate Nuburu's core blue laser technology to develop and commercialize cutting-edge Defence applications, directly connecting the company's foundational technology to its new strategic focus.

3.4 Organizational Enhancement: Building a Foundation for Scalability

To support this period of rapid growth and consolidation, Nuburu is enhancing its corporate structure and bolstering key functions.

Financial Oversight: A new financial controller has been hired (start date October 1, 2025) to oversee group finance processes, planning and control frameworks, and acquisition accounting.

Revenue Generation: An experienced specialist has been engaged to implement a group-level revenue office function to support current subsidiaries and future acquisitions.

These foundational investments in financial oversight and revenue generation are critical to de-risking the company's M&A strategy, ensuring that acquired assets are integrated efficiently and are immediately accretive to the top and bottom line.

4.0 Targeting Substantial and High-Growth Markets

Nuburu's strategic transformation is targeted at specific, large, and growing addressable markets where its technology and partnerships provide a distinct competitive advantage.

The company's focused entry into these lucrative markets provides a clear path to significant revenue growth and profitability.

5.0 Near-Term Outlook and Forward Momentum

The company's strategic actions are already translating into tangible forward momentum. This progress provides an early validation of the transformation plan's success.

Under its new model, the company, primarily via Nuburu Defence, anticipates initial billings of approximately $500,000 in Q4 2025.¹ This milestone represents the foundational phase of what is expected to be an upward revenue trajectory in 2026, which will be further accelerated by the finalization and consolidation of the announced acquisitions.

Demonstrating its proactive market positioning, Nuburu Defence, represented by Mr. A.D. Sinnot, will be attending AUSA 2025, the premier annual event for the Association of the United States Army, from October 13-15, 2025.

6.0 Conclusion: A Clear Trajectory for Long-Term Shareholder Value

Nuburu is decisively executing a well-defined strategic transformation to unlock significant growth and create shareholder value. By fortifying its financial position, the company has secured the resources to pursue a disciplined strategy of synergistic acquisitions and partnerships precisely targeted at the high-growth Defence, security, and SaaS markets. This combination of a fortified balance sheet, disciplined entry into multi-billion-dollar markets, and a sharp focus on integrating its core blue laser technology establishes a clear and compelling pathway for driving long-term, sustainable growth and shareholder value.

¹Note: Billings are a non-GAAP measure representing invoices sent to customers.