This shift involves creating a dedicated subsidiary, Nuburu Defense LLC, and executing a strategy of acquisition-led growth, including an alliance with Tekne S.p.A. for market entry and the planned acquisition of SaaS firm Orbit S.r.l. to broaden its technology base. The company is actively restructuring its finances, securing $12 million in gross proceeds from a recent offering to fund these initiatives while adhering to a disciplined capital management approach. Ultimately, this strategic reorientation aims to embed Nuburu's core blue laser technology into high-margin defense applications, targeting substantial addressable markets in Electronic Warfare and operational resilience. Key upcoming milestones, such as finalizing acquisitions by year-end, signal the immediate execution phase of this new growth strategy.

Executive Summary

Nuburu, Inc. is executing a fundamental corporate transformation, shifting its focus from a pure-play technology firm to a diversified entity centered on the Defence and security markets. This "Transformation Plan" leverages the company's core blue laser technology through a multi-faceted strategy of acquisition-led growth and strategic alliances. The entire initiative is spearheaded by a newly formed subsidiary, Nuburu Defence LLC, which serves as the central hub for all Defence-related activities.

The execution framework is already in motion with a strategic alliance with Tekne S.p.A., which has yielded a $6.6 million contract and positions Nuburu Defence as a future hub for Tekne's non-Italian and NATO clients. The company is also pursuing controlling interests in two synergistic firms: Orbit S.r.l., a SaaS company specializing in operational resilience, and an unnamed strategic partner that will integrate Nuburu's blue laser technology into Defence applications.

This ambitious pivot is supported by a strengthened financial position, including a recent $12 million capital raise, and enhanced internal governance through the hiring of a new financial controller and a revenue management specialist. The company is targeting large and growing markets, including the $19.4 billion Electronic Warfare sector and a $1.1 billion SaaS resilience market. Nuburu Defence anticipates initial billings of approximately $500,000 in Q4 2025, establishing a foundation for significant growth in 2026.

1. The Transformation Plan: A Strategic Overview

Nuburu is undergoing a comprehensive restructuring to reposition itself within the high-growth Defence and security sectors. The "Transformation Plan" is designed to create a robust, multi-faceted business that leverages the company's core technological expertise in new, synergistic applications. The strategy is built upon three foundational pillars.

Key Strategic Pillars:

Establishment of a Defence Hub: The creation of Nuburu Defence LLC, a dedicated subsidiary, serves as the central vehicle for executing the company's Defence and security strategy, including all acquisitions and alliances.

Acquisition-Led Growth: The plan involves the deployment of capital to acquire controlling interests in synergistic companies operating in Defence technology, security, and blue laser application fields.

Strategic Partnerships: The company is actively forging alliances with established industry players to de-risk market entry, secure contracts, and gain immediate credibility within the complex international Defence market.

2. Execution Framework: Key Acquisitions and Alliances

The success of Nuburu's transformation is contingent on a carefully orchestrated program of acquisitions and strategic partnerships designed to rapidly build capabilities and establish a significant market presence.

2.1 Alliance with Tekne S.p.A.

Signed on August 27, 2025, the strategic agreement with Tekne S.p.A. is a cornerstone of Nuburu's market entry strategy and has already produced tangible results.

Initial Success: The partnership was instrumental in supporting Tekne's successful delivery of a $6.6 million international contract for a government agency in Bangladesh.

Strategic Expansion: A plan is underway to position Nuburu Defence as a global Defence-tech hub for Tekne’s non-Italian clients, which includes NATO member countries.

Regulatory Progress: The alliance is expected to underpin a new Golden Power notification to be provided by Nuburu Defence, a critical step for operating within the European Defence framework.

2.2 Expansion into SaaS and Operational Resilience

Nuburu is broadening its technological portfolio through the planned acquisition of a controlling interest in Orbit S.r.l., a Software as a Service (SaaS) startup.

Objective: To integrate Orbit’s specialization in operational resilience with Nuburu Defence’s mission, thereby expanding the company’s platform offering to mission-critical infrastructures.

Strategic Value: This acquisition adds a scalable, high-margin software component to Nuburu's portfolio.

Timeline: The company expects to finalize binding agreements for the transaction by October 31, 2025.

2.3 Integration of Core Blue Laser Technology

To vertically integrate its foundational technology into new Defence applications, Nuburu is pursuing a controlling interest in an unnamed key strategic partner, based on an agreement announced on September 23, 2025.

Objective: To directly embed Nuburu's core blue laser technology into cutting-edge Defence applications.

Strategic Value: This transaction vertically aligns Nuburu’s technological expertise with the product development and commercialization needs of the Defence market.

Timeline: The acquisition is targeted for finalization by the end of 2025.

3. Financial and Organizational Readiness

Nuburu has implemented a series of financial and organizational measures to create a solid foundation capable of supporting its acquisition and growth strategy.

3.1 Capital Structure and Funding

The company has secured capital to fund its near-term objectives while adhering to its financial recovery plan.

Capital Injection: A recently completed public offering raised gross proceeds of $12 million USD, enhancing the balance sheet in line with a recapitalization plan accepted by the NYSE.

Current Liquidity: Nuburu reports a cash position of approximately $6 million USD, which is specifically designated for funding the acquisitions program and other strategic partnerships.

Shareholder Dilution: The company has affirmed that it does not anticipate issuing additional shares in connection with its Settlement Agreement with Silverback Capital Corporation.

3.2 Governance and Infrastructure Enhancements

To manage its expanded and more complex business model, Nuburu has made strategic hires to enhance its corporate governance and operational functions.

Financial Oversight: A new financial controller was hired, starting October 1, 2025, to oversee financial processes, manage group planning and control, and support the complexities of acquisition accounting.

Revenue Management: An experienced specialist has been engaged to implement a group-level revenue office function, a critical role for integrating subsidiaries and managing revenue from newly acquired entities.

4. Market Rationale and Commercial Projections

Nuburu's strategic pivot is a direct response to significant opportunities in high-value, high-margin sectors where its technology and new business lines are well-positioned.

4.1 Target Addressable Markets (TAM)

The company is targeting distinct, large, and expanding markets with its new strategy.

Target Sector    Market Projection & Attributes

Electronic Warfare        Projected to reach $19.4 billion by 2028. This market is targeted via the Tekne partnership and the acquisition of the unnamed blue laser partner.

SaaS (Security & Operational Resilience)          Projected TAM of $1.1 billion in 2033. This market, targeted via the Orbit S.r.l. acquisition, is a highly scalable model with anticipated EBITDA exceeding 40%.

The scale of this market opportunity is further validated by the existing portfolio of key partner Tekne, which currently stands at approximately $500 million.

4.2 Near-Term Financial Outlook

The initial financial impact of the new strategy is expected to materialize in the immediate future.

Q4 2025 Billings: Nuburu Defence anticipates generating billings of approximately $500,000 in the fourth quarter of 2025.

Foundation for Growth: This figure represents a critical foundational milestone, establishing a baseline for an expected upward revenue trajectory in 2026 as the new acquisitions are consolidated.

5. Strategic Outlook and Key Milestones

Nuburu has articulated a cohesive and ambitious strategy that integrates acquisitions, partnerships, and internal restructuring to reposition the company for long-term value creation in the Defence and security markets. This vision is reinforced by the company's leadership.

"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." Alessandro Zamboni, Executive Chairman of Nuburu

Key Upcoming Milestones

The following near-term objectives will serve as critical indicators of the successful execution of the Transformation Plan:

AUSA 2025 Attendance (October 13-15, 2025): Nuburu Defence, represented by A.D. Sinnot, will attend this major U.S. Army event, signalling its formal entry into the American Defence community.

Orbit S.r.l. Acquisition (by October 31, 2025): Target date for finalizing binding agreements to acquire a controlling interest in the SaaS operational resilience firm.

Strategic Partner Acquisition (by year-end 2025): Target timeframe for finalizing the acquisition of a controlling interest in the key partner focused on blue laser Defence applications.

Establishment of U.S. Defence Hub (Ongoing): The company is evaluating a new operating office in Virginia, signalling a commitment to establishing a physical presence in the U.S. Defence industrial base.