Applied Energetics Reports 91% Revenue Decline and Increased Net Loss in Q2 2025

Applied Energetics, Inc. reported a significant decline in financial performance for the second quarter of 2025, with revenues dropping to $70,335, a decrease of approximately 91% compared to $780,643 in the same period of 2024. For the first half of 2025, the company generated $280,088 in revenue, down 69% from $914,878 in the prior year. The decline in revenue was attributed to the suspension of work on two active contracts due to a lack of funding, although the contracts remain open. The company continues to pursue alternative funding sources while advancing its technology through internal research and development.

The company's net loss for the second quarter of 2025 was $3,785,749, an increase of 84% from the net loss of $2,060,950 reported in the same quarter of 2024. For the first half of 2025, the net loss reached $6,891,415, compared to $4,672,329 in the previous year, reflecting increased general and administrative expenses, as well as higher selling and marketing costs. General and administrative expenses rose to $2,823,159 for the second quarter, up from $2,343,511 in the prior year, driven by higher professional fees and non-cash compensation.

In terms of operational developments, Applied Energetics has made strides in its technological capabilities, achieving over 1 gigawatt of peak optical power in its ultrashort pulse laser systems. The company has also opened a new Battle Lab facility designed for testing and demonstrating advanced laser technologies. Additionally, Applied Energetics is collaborating with Kord Technologies to integrate its ultrashort pulse technology into Kord's high-energy laser weapon system, which may lead to future contract opportunities.

As of June 30, 2025, Applied Energetics reported total assets of $3,531,171, a significant increase from $2,070,869 at the end of 2024, primarily due to increased cash reserves and investments in property and equipment. The company had total current liabilities of $994,659, resulting in a working capital surplus of $221,896. However, the company faces ongoing liquidity challenges, with negative cash flows from operations of $4,127,663 for the first half of 2025. Management is actively exploring additional equity financing to improve its liquidity position.

Looking ahead, Applied Energetics remains cautious about its financial outlook, given the uncertainty surrounding government contract funding and the potential for further losses. The company is focused on developing its technology and securing new contracts while navigating the challenges posed by the current geopolitical and economic environment. Despite these challenges, management believes that its innovative technologies position the company for future growth and opportunities in the directed energy market.