Aeluma, Inc.

Aeluma, Inc. develops high-performance photonic and electronic technologies for communications and sensing across telecom, artificial intelligence datacom, mobile, defense and aerospace, robotics, automotive, augmented reality/virtual reality, and quantum applications ¹. The company's proprietary platform combines compound semiconductor materials with large-diameter substrates to leverage manufacturing infrastructure used in high-volume microelectronics ². Technology and product development activities have focused on photodetectors, photodetector arrays, lasers, optical amplifiers, and other technologies, with photodetectors capable of detecting near-infrared and shortwave infrared light, and lasers and optical amplifiers primarily based on quantum dot technology ³. The platform may also be applied to other photonic and electronic devices, including transistors and solar cells ⁴. Industry demand is influenced by growth in AI computing and data center bandwidth, increasing use of optical interconnects, the need for improved sensing in consumer and industrial systems, defense demand for advanced domestic semiconductor technologies, and continued investment in quantum technologies ⁵.

The company competes in rapidly evolving semiconductor, sensor, and photonics markets, with competition based on performance, reliability, power consumption, size, integration, manufacturability, cost, production capacity, supply assurance, intellectual property, customer relationships, and time to market ⁶. In imaging and sensing, major suppliers include Sony, Samsung, OmniVision, onsemi, STMicroelectronics, Panasonic, Canon, SK hynix, and others, while traditional InGaAs sensor suppliers include Hamamatsu, Sumitomo, Teledyne FLIR, Excelitas, and others ⁷. Conventional InGaAs photodetectors are generally manufactured on relatively small InP substrates, commonly in the two- to four-inch range ⁸. The company's objective is to compete by enabling compound semiconductor performance at potentially substantially lower cost using large-diameter substrates and large-scale manufacturing methods ⁹. Potential competitive advantages include the ability to integrate high-performance compound semiconductor materials on large-diameter substrates, a platform addressing photodetectors, lasers, and nonlinear photonics, domestic research and wafer-production capabilities, and a capital-efficient manufacturing model ¹⁰. These potential advantages have not yet been demonstrated in large-volume commercial production ¹¹.

The company generates revenue from government development contracts, with emerging commercial development and product revenue ¹². Revenue currently consists primarily of government development contracts and limited commercial product sales, including small volumes of wafers and chips, engineering samples, non-recurring engineering projects, and initial commercial sales orders ¹³. The company is transitioning from a predominantly R&D-stage business toward commercialization ¹⁴. Customers and prospective customers include U.S. Government agencies and contractors, semiconductor and optical component companies, system integrators, module manufacturers, Tier-1 suppliers, and manufacturers of mobile and consumer electronics, data center and communications equipment, defense and aerospace systems, and quantum technologies ¹⁵. The company operates as a single reportable segment, with the chief executive officer using consolidated net income as the sole measure of segment profit or loss ¹⁶.

The company's technology is based on heterogeneous integration, combining materials with different physical properties within a single semiconductor platform, synthesizing compound semiconductor materials on large-diameter substrates such as silicon and gallium arsenide ¹⁷. Indium gallium arsenide can provide high sensitivity in the NIR and SWIR spectral regions, useful for three-dimensional sensing, low-light imaging, industrial and robotic vision, defense imaging, and optical communications ¹⁸. Silicon image sensors have declining sensitivity at longer NIR wavelengths and an absorption cutoff near 1,100 nanometers, while standard InGaAs devices commonly operate across approximately 900 to 1,700 nanometers ¹⁹. The company is also developing quantum dot laser technology for optical communications and sensing, with potential advantages including high power handling, reliability, and low noise relevant to data center interconnects, co-packaged optics, sensing, and quantum applications ²⁰. Additionally, the company is developing a nonlinear photonics platform for the generation and manipulation of photons used in quantum communication, computing, and sensing, with competing nonlinear photonic material systems including lithium niobate, aluminum nitride, barium titanate, and other emerging materials ²¹.

During fiscal year 2026, the company expanded internal test and prototyping capabilities through the acquisition of automated and semi-automated wafer probers, packaging and prototyping equipment, test and validation instruments, and related facility infrastructure ²². The company extended the lease for its principal facility through March 2031 to support anticipated growth ²³. The company announced relationships with Tower Semiconductor and Sumitomo Chemical Advanced Technologies for wafer production and fabrication ²⁴. The company joined the Midwest Microelectronics Consortium, a Microelectronics Commons hub focused on transitioning critical technologies to domestic manufacturing ²⁵. During fiscal year 2026, the company entered into six new government customer contracts, including with NASA, the State University of New York, and the Office of the Secretary of Defense, and continued performing under contracts with the U.S. Navy and U.S. Defense Advanced Research Projects Agency ²⁶. The company signed a letter of intent for up to $30 million of proposed funding under the CHIPS Act, administered by the U.S. Department of Commerce ²⁷. The company raised approximately $60 million through public offerings from March 2025 to date ²⁸.

For the fiscal year ended June 30, 2026, revenue decreased $204 thousand to $4.5 million, of which $4.3 million was derived from government contracts and $183 thousand from other products and services ²⁹. Revenue was $4.7 million, of which $4.4 million was derived from government contracts and $266 thousand from other products and services, for the same period of 2025 ³⁰. Operating expenses increased $7.8 million, or 115%, to $14.6 million for the fiscal year ended June 30, 2026, compared to $6.8 million for the same period in 2025 ³¹. Net loss was $9,159 thousand for the fiscal year ended June 30, 2026, compared to $3,022 thousand for the same period in 2025 ³². As of June 30, 2026, the company had cash, cash equivalents, and a certificate of deposit totaling $56.0 million, compared to $15.7 million as of June 30, 2025 ³³.

The company's growth strategy focuses on advancing a differentiated technology platform, focusing resources on selected high-value markets including AI datacom, mobile and consumer electronics, defense and aerospace, and quantum, with adjacent opportunities in robotics, automotive, and AR/VR ³⁴. The company plans to continue supplying engineering samples, prototype wafers and chips, small volume products, and development services while customers evaluate the technology ³⁵. The company intends to work directly with prospective customers and with system integrators, module manufacturers, Tier-1 suppliers, component suppliers, semiconductor companies, and government prime contractors ³⁶. The company also intends to continue working with external foundries, packaging providers, and integration partners to establish repeatable, qualified production flows that can support large volumes ³⁷. The timing and scale of commercialization will depend on several factors, including technical performance, reliability testing, customer qualification, product design decisions, supply chain readiness, and market demand ³⁸.

The company's growth is expected to be driven by AI infrastructure and optical communications, as AI clusters require increasingly high data transfer rates among processors, memory, and network equipment, increasing demand for optical transceivers, silicon photonics, lasers, and high-speed photodetectors ³⁹. The company's photodetector and quantum dot laser platforms are being developed for potential use in these applications ⁴⁰. In mobile, consumer, AR/VR, robotics, and automotive sensing, the company's photodetector platform is intended to address applications that require performance beyond conventional silicon sensors while maintaining a path toward large-volume manufacturing ⁴¹. In defense and aerospace, the company's government-funded programs include development of SWIR imaging, high-speed photodetectors, heterogeneous integration, and quantum photonic technologies ⁴². In quantum technologies, the company's quantum dot laser, nonlinear materials, and photodetector platforms are intended to support the transition from laboratory systems to manufacturable photonic integrated circuits ⁴³.

The company expects to continue investing in engineering, materials growth, wafer fabrication, packaging, testing, quality systems, sales, and business development ⁴⁴. The company's manufacturing strategy is to retain control of core materials, processes, and product know-how while using qualified third parties for production-scale processes and capacity, which may allow the company to scale more efficiently than constructing and operating a fully integrated production facility ⁴⁵. However, the company depends on third parties for portions of its manufacturing flow and may encounter capacity constraints, long lead times, process-transfer challenges, yield variability, quality issues, cost increases, equipment limitations, or disruptions ⁴⁶. The company will need to establish repeatable processes, quality systems, supplier controls, and customer-approved production flows before supporting material commercial volumes ⁴⁷.

The company's capital allocation priorities include funding R&D efforts, expanding engineering capabilities, and supporting general corporate operations ⁴⁸. The company has an at-the-market offering program to sell up to $50 million of common stock, with $29.3 million in remaining capacity ⁴⁹. During May and June 2026, the company sold 830,484 shares of common stock under the ATM program, resulting in net proceeds of $20.1 million, after deducting commissions and other offering expenses ⁵⁰. The company has never paid any cash dividends on its capital stock and does not anticipate paying any cash dividends on its common stock in the foreseeable future, intending to retain future earnings to fund ongoing operations and future capital requirements ⁵¹.

The company faces headwinds including the potential for government contracts to be terminated for convenience, with the potential impact of DOGE on government spending potentially leading to an increase in such terminations ⁵². The company also faces risks from changes in federal regulatory agencies and policies, including the Department of Commerce, which administers the CHIPS Program, and changes in administration, funding, eligibility requirements, implementation, or priorities of these programs could affect access to government programs, incentives, approvals, or other resources ⁵³. The company's growth, profitability, and cash flows depend upon its ability to successfully implement its growth strategy, which is dependent on factors including expanding its ecosystem of partners, acquiring new customers, scaling its business model, ensuring a consistent and timely supply chain, expanding its presence within verticals, continuing to innovate product offerings, and selectively pursuing strategic and value-enhancing acquisitions ⁵⁴.

The company faces execution risks including the lengthy and expensive customer qualification process, which may continue for a few months or longer, and a design win does not obligate a customer to place purchase orders or proceed to volume production ⁵⁵. The company also faces risks from its dependence on a limited number of customers, and the loss of one or more of these customers could have a material adverse effect on its business ⁵⁶. The company expects to depend on third-party manufacturers to build portions of its products, making it susceptible to manufacturing delays and pricing fluctuations ⁵⁷. The semiconductor industry is highly cyclical, and significant downturns or upturns in customer demand can materially adversely affect the company's business and results of operations ⁵⁸.

The company has a limited operating history and remains in the early development stages, not in volume production for any product offerings, which makes it difficult to evaluate its business and prospects ⁵⁹. The company has identified material weaknesses in its internal control over financial reporting, with an insufficient number of personnel with appropriate technical accounting and SEC reporting expertise, which could result in material misstatements in future financial statements ⁶⁰. The company generates a substantial portion of its revenue from contracts with U.S. federal government agencies, which are subject to risks including termination for convenience, budgetary cycles, and audits ⁶¹. The company expects to depend on a limited number of customers, and the loss of one or more of these customers could have a material adverse effect on its business ⁶². The company relies on third-party manufacturers for portions of its manufacturing flow, and any disruption could severely impair its ability to fulfill orders ⁶³. The company's manufacturing processes rely on raw materials such as indium, gallium, and arsenic, and shortages or increased prices could materially adversely affect its results of operations ⁶⁴.

Management's message emphasizes the company's transition from a predominantly R&D-stage business toward commercialization, with operating priorities to advance product development, complete customer and manufacturing qualifications, deliver on existing commercial and government contracts, increase manufacturing readiness, and convert qualified customer engagements into recurring product revenue ⁶⁵. Management highlights the company's capital-efficient manufacturing model, combining internal materials production, process-development, prototyping, and test capabilities with external fabrication, packaging, and integration ⁶⁶. Management also emphasizes the company's strategy to leverage funded development and strategic relationships, using government sponsored R&D programs, customer funded engineering programs, strategic partnerships, and initial product sales to advance technology readiness and support the transition to commercial products ⁶⁷. Management believes that current cash and cash equivalents balances, cash generated from operations, and the ability to raise additional funds pursuant to the ATM program will be sufficient to fund business operations and capital expenditures for the next twelve months and beyond ⁶⁸.