APPLIED ENERGETICS, INC. SEC 10-Q Report

Applied Energetics, Inc., a company specializing in the development of advanced laser technologies and directed energy solutions, has released its Form 10-Q report for the second quarter of 2025. The report outlines significant financial and operational developments, reflecting the company's ongoing efforts to innovate in the directed energy sector despite facing financial challenges.

Financial Highlights

Revenue: $280,088, a decrease of 69.39% compared to the same period in 2024 due to the suspension of work on two unfunded contracts.

Gross Profit: $168,684, reflecting a significant decrease in revenue and cost of revenue.

Operating Loss: $(6,891,432), an increase in loss due to higher general and administrative expenses, selling and marketing expenses, and research and development expenses.

Net Loss: $(6,891,415), an increase of 47.49% compared to the same period in 2024, primarily due to increased expenses and reduced revenue.

Net Loss Attributable to Common Stockholders Per Common Share - Basic and Diluted: $(0.03), reflecting the increased net loss and unchanged share count.

Business Highlights

Revenue Segments: During the three months ended June 30, 2025, one customer accounted for 100% of the revenue recognized, totaling $70,334. For the six months ended June 30, 2025, two customers accounted for 100% of the revenue recognized, totaling $280,088.

New Production Launches: In February 2025, Applied Energetics opened its new Battle Lab, a facility designed to test, demonstrate, and advance emerging laser technologies. The lab is expected to support laser system testing against relevant targets and emerging threats.

Ongoing Business Operations: The company continued its strategic collaboration with Kord Technologies, Inc. to explore the development and integration of an advanced pulsed laser system with Kord’s FIREFLYTM High Energy Laser Weapon System.

Ongoing Business Operations: Applied Energetics is working under a contract with the Department of the Navy, Office of Naval Research, to develop a high-peak and high-average power USP optical system, although funding for this contract has been discontinued.

Ongoing Business Operations: The company is also working on a Phase II Small Business Technology Transfer contract with the U.S. Army to develop an IR laser system, with work continuing through November 14, 2025.

Future Outlook: The company plans to continue research and development of its technology on an internal basis and focus on strategic partnerships and additional government contracts to accelerate the technology readiness level of its solutions.

Future Outlook: Despite funding challenges, the company remains optimistic about the innovative nature of its technology and its potential for development, growth, and market opportunities in the directed energy sector.

SEC Filing: APPLIED ENERGETICS, INC. [ AERG ] - 10-Q - Aug. 13, 2025