Applied Energetics, Inc. reported its financial results for the nine months ended September 30, 2024, revealing a mixed performance compared to the same period in 2023. Revenue for the nine months decreased by 5.50% to $1,662,598 from $1,759,433, primarily attributed to a decline in contract activity. In contrast, revenue for the third quarter increased by 4.90% to $747,720, up from $712,810 in the prior year, indicating some recovery in sales.

The company's gross profit for the third quarter significantly declined to $239,011 from $538,398 in the same quarter of 2023, reflecting a substantial increase in the cost of revenue, which rose by 192.67% to $508,709. For the nine-month period, gross profit also fell to $495,249 from $1,266,581, with total operating expenses increasing to $7,544,852 from $6,865,955, leading to an operating loss of $7,049,603, up from $5,599,374 in the previous year.

Net losses for the third quarter and nine-month period were $2,374,685 and $7,047,014, respectively, marking increases of 31.11% and 26.58% compared to the same periods in 2023. The company reported negative cash flows from operations of $3,734,000 for the nine months, an increase from $2,577,616 in the prior year.

As of September 30, 2024, Applied Energetics had cash and cash equivalents of $1,608,241, an increase from $1,319,526 at the end of 2023. Total assets decreased slightly to $3,508,739 from $3,541,959, while total liabilities also saw a reduction to $1,907,190 from $1,921,873. The accumulated deficit increased to $(117,861,308) from $(110,814,294).

Strategically, the company has been active in expanding its operational capacity, leasing additional space at the University of Arizona Tech Park and establishing a new Battle Lab for laser system testing. It has also engaged in various contracts and collaborations, including a recent agreement with the U.S. Department of Defense valued at $1,217,535.

Management is exploring additional equity financing to improve liquidity, while also facing challenges from market volatility and geopolitical tensions that may impact operations. The company has not paid dividends since 2013, and as of September 30, 2024, it reported dividend arrearages totaling approximately $388,129.