Applied Energetics Files Q3 2024 10-Q Report

TL;DR

**APPLIED ENERGETICS (AEI) FILED Q3 2024 10-Q - CHECK FINANCIALS**

AI Summary

Applied Energetics, Inc. filed its quarterly report on Form 10-Q for the period ended September 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. The filing details its financial performance and operational status for the third quarter of 2024.

Why It Matters

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

Risk Assessment

Risk Level: medium — As a publicly traded company filing a 10-Q, there are inherent risks associated with financial performance and market conditions.

Key Players & Entities

• APPLIED ENERGETICS, INC. (company) — Registrant
• September 30, 2024 (date) — Quarterly period end date
• IONATRON, INC. (company) — Former company name
• TUCSON, AZ (location) — Company business address
• 001-14015 (other) — Commission File Number

FAQ

Key Financial Figures

• $0.001 — ich Registered Common Stock, par value $0.001 per share AERG OTCQB As of November 1

Filing Documents

• ea0219100-10q_applied.htm (10-Q) — 551KB
• ea021910001ex31-1_applied.htm (EX-31.1) — 8KB
• ea021910001ex31-2_applied.htm (EX-31.2) — 8KB
• ea021910001ex32-1_applied.htm (EX-32.1) — 5KB
• ea021910001ex32-2_applied.htm (EX-32.2) — 5KB
• 0001213900-24-097856.txt ( ) — 4048KB
• aerg-20240930.xsd (EX-101.SCH) — 35KB
• aerg-20240930_cal.xml (EX-101.CAL) — 33KB
• aerg-20240930_def.xml (EX-101.DEF) — 209KB
• aerg-20240930_lab.xml (EX-101.LAB) — 399KB
• aerg-20240930_pre.xml (EX-101.PRE) — 224KB
• ea0219100-10q_applied_htm.xml (XML) — 347KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM 1. Condensed Consolidated Unaudited Financial Statements 1 Condensed Consolidated Balance Sheets as of September 30, 2024 (Unaudited) and December 31, 2023 1 Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 (Unaudited) 2 Condensed Consolidated Statements of Stockholders' Equity for the three and nine months ended September 30, 2024 and 2023 (Unaudited) 3 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 (Unaudited) 4 Notes to Condensed Consolidated Unaudited Financial Statements 5 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 ITEM 4.

Controls and Procedures

Controls and Procedures 23

OTHER INFORMATION

PART II. OTHER INFORMATION ITEM 1.

Legal Proceedings

Legal Proceedings 24 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 24 ITEM 5 Other Information 24 ITEM 6. Exhibits 25

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS APPLIED ENERGETICS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31, 2024 2023 (unaudited) Assets Current assets Cash and cash equivalents $ 1,608,241 $ 1,319,526 Accounts receivable, net 190,443 567,792 Other assets 227,139 148,338 Total current assets 2,025,823 2,035,656 Long-term assets Property and equipment - net 328,831 434,563 Right of use asset - operating 1,137,081 1,054,736 Security deposit 17,004 17,004 Total long-term assets 1,482,916 1,506,303 Total assets $ 3,508,739 $ 3,541,959 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 351,350 $ 312,958 Notes payable 94,651 - Due to related parties 50,000 50,000 Operating lease liability - current 250,021 166,927 Deferred Revenue 20,218 308,908 Accrued expenses 74,365 40,510 Accrued dividends 48,079 48,079 Total current liabilities 888,684 927,382 Long-term liabilities Operating lease liability - non-current 1,018,506 994,491 Total long-term liabilities 1,018,506 994,491 Total liabilities 1,907,190 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 September 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; 213,760,508 and 211,236,688 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively 213,761 211,237 Additional paid-in capital 119,249,082 112,223,129 Accumulated deficit ( 117,861,308 ) ( 110,814,294 ) Total stockholders' equity 1,601,549 1,620,086 Total Liabilities and Stockholders' Equity $ 3,508,739 $ 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 SEPTEMBER 30, FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 2023 2024 2023 Revenue $ 747,720 $ 712,810 $ 1,662,598 $ 1,759,433 Cost of revenue 508,709 174,412 1,167,349 492,852 Gross profit 239,011 538,398 495,249 1,266,581 Operating expenses General and administrative 2,457,321 2,219,641 7,117,731 6,401,550 Selling and marketing 86,398 94,092 238,174 297,447 Research and development 70,244 54,222 188,947 166,958 Total operating expenses 2,613,963 2,367,955 7,544,852 6,865,955 Operating loss ( 2,374,952 ) ( 1,829,557 ) ( 7,049,603 ) ( 5,599,374 ) Other income/(expense) Other income 267 20,287 2,589 35,769 Interest expense - ( 1,908 ) - ( 3,817 ) Total other income/(expense) 267 18,379 2,589 31,952 Loss before provision for income taxes ( 2,374,685 ) ( 1,811,178 ) ( 7,047,014 ) ( 5,567,422 ) Provision for income taxes - - - - Net loss ( 2,374,685 ) ( 1,811,178 ) ( 7,047,014 ) ( 5,567,422 ) Preferred stock dividends ( 8,501 ) ( 8,501 ) ( 25,504 ) ( 25,504 ) Net loss attributable to common stockholders $ ( 2,383,186 ) $ ( 1,819,679 ) $ ( 7,072,518 ) $ ( 5,592,926 ) Net loss attributable to common stockholders per common share - basic and diluted $ ( 0.01 ) $ ( 0.01 ) $ ( 0.03 ) $ ( 0.03 ) Weighted average number of common shares outstanding 213,753,429 211,133,165 212,565,838 211,046,786 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 NINE MONTHS ENDED SEPTEMBER 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 Stock-based compensation - - - - 979,099 - 979,099 Common stock issued for settlement of restricted stock units - - 175,000 175 ( 175 ) - - Common stock withheld to cover income tax withholding obligations - - ( 60,313 ) ( 60 ) ( 74,720 ) - ( 74,780 ) Net loss for the period ended September 30, 2024 - - - - -

financial statements (unaudited)

financial statements (unaudited). 3 APPLIED ENERGETICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) For the Nine Months Ended September 30, 2024 2023 Cash Flows from Operating Activities Net loss $ ( 7,047,014 ) $ ( 5,567,422 ) Adjustments to reconcile net loss to net cash used in operating activities: Noncash stock-based compensation expense 2,855,676 2,528,293 Amortization of ROU assets 152,192 97,245 Depreciation and amortization 161,167 90,564 Amortization of prepaid assets 167,035 153,366 Changes in assets and liabilities: Accounts receivable 377,349 ( 50,902 ) Prepaid and deposits ( 56,534 ) ( 254,479 ) ROU liabilities ( 127,428 ) ( 77,286 ) Deferred Revenue ( 288,690 ) 366,006 Accounts payable 38,392 115,130 Accrued expenses and compensation 33,855 21,869 Net cash used in operating activities ( 3,734,000 ) ( 2,577,616 ) Cash Flows from Investing Activities Purchase of equipment ( 55,435 ) ( 177,904 ) Net cash used in investing activities ( 55,435 ) ( 177,904 ) Cash Flows from Financing Activities Repayment on note payable ( 94,651 ) ( 503,694 ) Proceeds from sale of common stock 4,171,601 - Proceeds from note payable - 155,541 Tax withholdings related to net share settlement of RSU's ( 82,299 ) ( 136,671 ) Proceeds from the exercise of stock option and warrants 83,499 18,750 Net cash provided by (used in) financing activities 4,078,150 ( 466,074 ) Net change in cash and cash equivalents 288,715 ( 3,221,594 ) Cash and cash equivalents, beginning of year 1,319,526 5,640,308 Cash and cash equivalents, at end of period $ 1,608,241 $ 2,418,714 Supplemental disclosure of cash flow information Cash paid for interest $ 4,941 $ 3,817 Cash paid for taxes $ - $ - Non-cash investing and financing activities Insurance financing for prepaid insurance $ 189,302 $ 155,541 Implementation of ASC 842 $ 234,537 $ 766,281 See ac

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