Applied Energetics Files Q2 2024 10-Q

TL;DR

AEGS filed its Q2 10-Q. Check financials.

AI Summary

Applied Energetics, Inc. filed its quarterly report on Form 10-Q for the period ended June 30, 2024. The company, formerly known as Ionatron, Inc., is based in Tucson, Arizona, and operates in the search, detection, navigation, and guidance systems sector. This filing provides an update on its financial and operational status for the quarter.

Why It Matters

This filing provides investors with the latest financial performance and operational details for Applied Energetics, Inc., crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: medium — As a 10-Q filing, it contains detailed financial information which can reveal significant risks or opportunities, requiring careful analysis.

Key Players & Entities

• APPLIED ENERGETICS, INC. (company) — Registrant
• June 30, 2024 (date) — Quarterly period end date
• 001-14015 (other) — Commission File Number
• 77-0262908 (other) — IRS Employer Identification Number
• IONATRON, INC. (company) — Former company name

FAQ

Key Financial Figures

• $0.001 — ich Registered Common Stock, par value $0.001 per share AERG OTCQB As of August 12,

Filing Documents

• ea0210881-10q_applied.htm (10-Q) — 494KB
• ea021088101ex31-1_applied.htm (EX-31.1) — 8KB
• ea021088101ex31-2_applied.htm (EX-31.2) — 8KB
• ea021088101ex32-1_applied.htm (EX-32.1) — 5KB
• ea021088101ex32-2_applied.htm (EX-32.2) — 5KB
• 0001213900-24-067762.txt ( ) — 3820KB
• aerg-20240630.xsd (EX-101.SCH) — 38KB
• aerg-20240630_cal.xml (EX-101.CAL) — 33KB
• aerg-20240630_def.xml (EX-101.DEF) — 207KB
• aerg-20240630_lab.xml (EX-101.LAB) — 394KB
• aerg-20240630_pre.xml (EX-101.PRE) — 210KB
• ea0210881-10q_applied_htm.xml (XML) — 312KB

SIGNATURES

SIGNATURES 26 i PART I. FINANCIAL INFORMATION ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS APPLIED ENERGETICS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS June 30, December 31, 2024 2023 (unaudited) Assets Current assets Cash and cash equivalents $ 2,793,973 $ 1,319,526 Accounts receivable, net 211,177 567,792 Other assets 296,488 148,338 Total current assets 3,301,638 2,035,656 Long-term assets Property and equipment - net 386,077 434,563 Right of use asset - operating 959,692 1,054,736 Security deposit 17,004 17,004 Total long-term assets 1,362,773 1,506,303 Total assets $ 4,664,411 $ 3,541,959 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 221,368 $ 312,958 Notes payable 141,977 - Due to related parties 50,000 50,000 Operating lease liability - current 191,526 166,927 Deferred Revenue - 308,908 Accrued expenses 45,282 40,510 Accrued dividends 48,079 48,079 Total current liabilities 698,232 927,382 Long-term liabilities Operating lease liability - non-current 894,264 994,491 Total long-term liabilities 894,264 994,491 Total liabilities 1,592,496 1,921,873 Stockholders' Equity Series A convertible preferred stock, $ .001 par value, 2,000,000 shares authorized and 13,602 shares issued and outstanding at June 30, 2024 and December 31, 2023 (Liquidation preference $ 340,050 and $ 340,050 , respectively) 14 14 Common stock, $ .001 par value, 500,000,000 shares authorized; 213,645,821 and 211,236,688 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively 213,646 211,237 Additional paid-in capital 118,344,878 112,223,129 Accumulated deficit ( 115,486,623 ) ( 110,814,294 ) Total stockholders' equity 3,071,915 1,620,086 Total Liabilities and Stockholders' Equity $ 4,664,411 $ 3,541,959 See accompanying notes to condensed consolidated

financial statements (unaudited)

financial statements (unaudited). 1 APPLIED ENERGETICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) FOR THE THREE MONTHS ENDED JUNE 30, FOR THE SIX MONTHS ENDED JUNE 30, 2024 2023 2024 2023 Revenue $ 780,643 $ 559,945 $ 914,878 $ 1,046,623 Cost of revenue 384,208 177,168 658,640 318,440 Gross profit 396,435 382,777 256,238 728,183 Operating expenses General and administrative 2,343,511 2,066,642 4,660,410 4,181,909 Selling and marketing 76,216 94,465 151,776 203,355 Research and development 37,923 52,756 118,703 112,736 Total operating expenses 2,457,650 2,213,863 4,930,889 4,498,000 Operating loss ( 2,061,215 ) ( 1,831,086 ) ( 4,674,651 ) ( 3,769,817 ) Other income/(expense) Other income 265 14,771 2,322 15,482 Interest expense - ( 1,909 ) - ( 1,909 ) Total other income/(expense) 265 12,862 2,322 13,573 Loss before provision for income taxes ( 2,060,950 ) ( 1,818,224 ) ( 4,672,329 ) ( 3,756,244 ) Provision for income taxes - - - - Net loss ( 2,060,950 ) ( 1,818,224 ) ( 4,672,329 ) ( 3,756,244 ) Preferred stock dividends ( 8,501 ) ( 8,501 ) ( 17,003 ) ( 17,003 ) Net loss attributable to common stockholders $ ( 2,069,451 ) $ ( 1,826,725 ) $ ( 4,689,329 ) $ ( 3,773,247 ) Net loss attributable to common stockholders per common share - basic and diluted $ ( 0.01 ) $ ( 0.01 ) $ ( 0.02 ) $ ( 0.02 ) Weighted average number of common shares outstanding 212,607,537 211,033,255 211,962,257 210,976,434 See accompanying notes to condensed consolidated

financial statements (unaudited)

financial statements (unaudited). 2 APPLIED ENERGETICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' (DEFICIT) EQUITY FOR THE THREE MONTHS ENDED JUNE 30, 2024 AND 2023 (Unaudited) Preferred Stock Common Stock Additional Paid- In Accumulated Total Stockholders' (Deficit) Shares Amount Shares Amount Capital Deficit Equity Balance at December 31, 2023 13,602 $ 14 211,236,688 $ 211,237 $ 112,223,129 $ ( 110,814,294 ) $ 1,620,086 Stock-based compensation - - - - 955,730 - 955,730 Common stock issued on exercise of options - - 60,000 60 12,540 - 12,600 Common stock issued on exercise of warrants - - 66,000 66 3,894 - 3,960 Common stock issued for settlement of restricted stock units - - 11,666 12 ( 12 ) - - Common stock withheld to cover income tax withholding obligations - - ( 3,715 ) ( 4 ) ( 7,515 ) - ( 7,519 ) Net loss for the period ended March 31, 2024 - - - - - ( 2,611,379 ) ( 2,611,379 ) Balance at March 31, 2024 13,602 $ 14 211,370,639 $ 211,371 $ 113,187,766 $ ( 113,425,673 ) $ ( 26,522 ) Stock-based compensation - - - - 920,847 - 920,847 Common stock issued on exercise of options - - 280,000 280 60,720 - 61,000 Common stock issued on exercise of warrants - - 99,000 99 5,840 - 5,939 Issuance of common stock under the market offering - - 1,896,182 1,896 4,169,705 - 4,171,601 Net loss for the period ended June 30, 2024 - - - - - ( 2,060,950 ) ( 2,060,950 ) Balance at June 30 ,2024 13,602 $ 14 213,645,821 $ 213,646 $ 118,344,878 $ ( 115,486,623 ) $ 3,071,915 Preferred Stock Common Stock Additional Paid-In Accumulated Total Stockholders' (Deficit) Shares Amount Shares Amount Capital Deficit Equity Balance at December 31, 2022 13,602 $ 14 210,848,671 $ 210,849 $ 108,830,982 $ ( 103,463,859 ) $ 5,577,986 Stock-based compensation - - - - 758,187 - 758,187 RSU restrict

financial statements (unaudited)

financial statements (unaudited). 3 APPLIED ENERGETICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) For the Six Months Ended June 30, 2024 2023 Cash Flows From Operating Activities Net loss $ ( 4,672,329 ) $ ( 3,756,244 ) Adjustments to reconcile net loss to net cash used in operating activities: Noncash stock-based compensation expense 1,876,577 1,624,949 Amortization of ROU assets 95,044 57,632 Depreciation and amortization 103,921 53,375 Amortization of prepaid assets 109,445 640,042 Changes in assets and liabilities: Accounts receivable 356,615 117,656 Prepaid and deposits ( 68,293 ) ( 742,035 ) ROU liabilities ( 75,628 ) ( 47,471 ) Deferred Revenue ( 308,908 ) - Accounts payable ( 91,590 ) ( 11,947 ) Accrued expenses and compensation 4,772 ( 4,331 ) Net cash used in operating activities ( 2,670,374 ) ( 2,068,374 ) Cash Flows From Investing Activities Purchase of equipment ( 55,435 ) ( 70,631 ) Net cash used in investing activities ( 55,435 ) ( 70,631 ) Cash Flows From Financing Activities Repayment on note payable ( 47,325 ) ( 451,847 ) Proceeds from sale of common stock 4,171,601 155,541 Tax withholdings related to net share settlement of RSU's ( 7,519 ) - Proceeds from the exercise of stock options and warrants 83,499 16,750 Net cash provided by financing activities 4,200,256 ( 279,556 ) Net change in cash and cash equivalents 1,474,447 ( 2,418,561 ) Cash and cash equivalents, beginning of year 1,319,526 5,640,308 Cash and cash equivalents, at end of period $ 2,793,973 $ 3,221,747 Supplemental disclosure of cash flow information Cash paid for interest $ - $ 1,909 Cash paid for taxes $ - $ - Non-cash investing and financing activities Insurance financing for prepaid insurance $ 189,302 $ 175,435 See accompanying notes to condensed consolidated financial statements (unaudited). 4 APPLIED ENERGETICS, INC. NOTES TO

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