Nuburu Inc. will restate its unaudited condensed consolidated financial statements for the three and six months ended June 30, 2026, following the identification of a material accounting error.

The Board of Directors and management concluded that the previously issued statements should no longer be relied upon. The correction increases the company’s asset value by $761,001.

Nature of the Error

The error stemmed from the fair value calculation of a convertible note receivable funded by Nuburu to Tekne S.p.A. ("Tekne"). The original principal amount of the note was €13,000,000 ($14,852,214).

Nuburu had used a Tekne equity value of €15.2 million ($17.4 million) to value the receivable as of June 30, 2026. This input was incorrect. The company should have used an equity value of €25.4 million ($29.0 million), which was the same value used to measure its Tekne investment at that date.

Valuation Correction Details

Correcting the equity value input and the derived volatility changed the conversion option related to the Tekne Convertible Note Receivable. The option value increased from €0.7 million ($0.8 million) to €1.3 million ($1.5 million).

Consequently, the fair value of the Tekne Convertible Note Receivable increased from €20,523,000 ($23,446,999) to €21,189,000 ($24,208,000). This represents an increase of $761,001.

The change in fair value of convertible notes receivable for the three and six months ended June 30, 2026, increases by the same amount of $761,001.

Regulatory Compliance

Nuburu determined the misstatement to be material. The company is restating the financial statements in accordance with Accounting Standards Codification Topic 250, Accounting Changes and Error Corrections. The restatement will be included in an amendment to its Q2 2026 Form 10-Q.

U.S. dollar equivalents of euro amounts were calculated at an exchange rate of €1.00 to $1.142478, the rate used to translate the fair value of the Tekne Convertible Note Receivable as of June 30, 2026.

NUBURU, Inc. (NYSE: BURU) has secured its first pilot order for a 1W laser dazzler system from a tier-one, government-owned defense integrator in a major Asia-Pacific market. The purchase supports customer evaluation and establishes a potential pathway to a follow-on program of up to 500 additional units.

The 1W configuration is designed for visual warning and deterrence in close-range protective missions for law enforcement, public security, and border security. It may also serve as a close-range counter-UAS optical interference tool against UAV electro-optical sensors, subject to mission-specific technical validation.

Customer Context and Deal Structure

The customer operates at the center of a national-scale government security and defense electronics ecosystem, with capabilities spanning electronic warfare, secure communications, sensors, and integrated command-and-control systems. This marks the customer’s second commercial engagement with NUBURU, following an approximately $250,000 order for a higher-power 7W laser dazzler system announced on March 31, 2026.

The initial pilot is limited in scope and is not expected to be financially material to NUBURU. However, based on indicative production pricing, a follow-on program of 500 units could represent a hardware contract value exceeding US$1.6 million, depending on final configuration and customization requirements. The opportunity remains preliminary and non-binding, with volumes and pricing subject to successful evaluation and definitive agreements.

What the Numbers Show

NUBURU’s balance sheet position has strengthened significantly alongside this commercial progress. The company reported stockholders’ equity of $9.37 million at June 30, 2026, marking a second consecutive quarter of positive equity. This contrasts sharply with the $15.18 million deficit recorded at December 31, 2025. The improvement follows a July public offering that raised approximately $38.0 million, proceeds from which were used to repay approximately $16.75 million of principal obligations, including the December 2025 debenture and Lyocon acquisition notes.

Platform Expansion and Regulatory Milestones

This order builds on NUBURU’s September 3, 2026 expansion of its Optical Systems Hub into law enforcement and public security markets across the United States and NATO countries. The 1W and higher-power counter-UAS configurations are distinct mission systems within this hub, drawing on a shared optical-engineering platform and common beam-control capabilities.

In other developments, NUBURU received Italian Government Golden Power authorization in August for NUBURU Defense LLC’s proposed acquisition of a 70% interest in Tekne S.p.A. The transaction has not yet closed. Additionally, NUBURU resumed trading on NYSE American under the symbol "BURU" on September 14, 2026.