BluGlass : Annual Report

ANNUAL FINANCIAL REPORT 2023

Lasers underpin all leading-edge industries and technology capabilities around the world today.

Lasers are an essential and ubiquitous technology, used in everything from raw materials processing, satellite communications, quantum computing, defence and aviation through to medical and biotech applications, and advanced manufacturing. With laser adoption accelerating to support these technologies, laser revenues are growing rapidly to represent a US$25B annual market by 2025.

Industry 4.0	Quantum
· Advanced
· Quantum sensing
manufacturing
· Quantum
· 3D printing
computing
· Materials
· Magnetic sensing
processing

Electrification

& Digitalisation

· Electric vehicles

· Autonomous

vehicles

· Computing & semiconductors · Drones

Heathcare

· Flow cytometry

· Optical coherence

tomography

· Optical magnetic

field sensing

· Viral and

Bacterial

mitigation

Laser technology underpins global megatrends

Metaverse

· Virtual reality

(VR)

· Mixed reality (MR) · Augmented reality (AR)

Defense &

Space

• • Quantum navigation
• Guidance systems
• • Tactical & strategic assets

Visible lasers are disrupting traditional markets

The fastest growing market segment in the laser industry is the visible, or Gallium Nitride (GaN) laser market, which spans the visible spectrum from the ultra-violet to green wavelengths. GaN lasers have many inherent advantages over traditional infrared laser applications, including superior brightness and higher energy absorption in metals, combined with more accurate, cleaner, faster materials processing - essential for today's increasingly miniaturised high-techapplications. Their unique performance properties are also enabling new applications in quantum sensing and computing, robotics, biotechnology, and medical therapies.

Visible light has higher absorption in key industrial metals

Cleaner, faster materials processing

Tighter beam focus and improved efficiency

Higher precision manufacturing, enabling increasingly advanced technology applications

Visible and UV light interacts favorably with quantum and organic (viruses, bacterica, cancer cells) materials

Key Metals	Improvement of energy
absorption in metals

Gold66x

Silver17x

Copper13x

Aluminium3x

Nickel1.5x

Steel1.5x

• GaN Laser Markets A$2.5B Opportunity by 2025

Industrial	Defence	Quantum &	Biotech	Display
Scientific	(AR/VR)
· Materials processing	· Navigation & guidance	· Materials processing	· Flow cytometry	· Augmented reality
· Machine vision & sensing	systems	· Machine vision & sensing	· Medical diagnostics	· Virtual reality & mixed
· 3D printing	· Detection & sensing	· 3D printing	· DNA sequences	reality
· Semiconductors	· Advanced materials	· Semiconductors	· Photodynamic therapy	· Pico projectors
	processing		· Biosciences	Heads up display

Developing leading-edge semiconductor manufacturing technology and devices for more than a decade, BluGlass Limited (ASX:BLG) is a global provider to the GaN photonics industries, delivering cutting-edge, custom lasers to the industrial, quantum, defence, biotech, and scientific markets.

BluGlass' full suite, end-to-end laser diode design, fabrication and packaging capability can provide custom and off-the-shelf solutions to solve its customers' unique product challenges. The company offers a spectrum of wavelengths from 405nm-525nm in both single and multi-mode options and in flexible form factors.

IN NEED OF NEW SUPPLIERS

Customers require enhanced performance, greater packaging

flexibility, and custom manufacutring capability

GaN lasers are used by global original equipment manufacturers (OEMs), systems integrators, electronics manufacturers, defence contractors and research organisations.

Australian manufacturer, BluGlass Limited, is one of only a handful of GaN laser manufacturers globally. Its state- of-the-art facilities and vertically integrated supply chain in Australia and the US reduce sovereign production risks for security-conscious customers.

Challenged by constrained supply Only a handful of captive global GaN laser suppliers in an emerging market with combined GaN laser systems revenue in excess of $1B and set to grow to $2.5B in 2025.

Competitors are largely focused on LEDs Most competitors are not dedicated GaN laser suppliers; they are captive in larger organizationsa with large differentiated product portfolios focused on LED and micro-LED markets.

Low mix/high volume business models Limited form factor flexibility, customisation and manufacturing agility in current business models is creating significant unmet needs in quantum, scientific defence and biotech verticals.

High barriers to market entry

WHAT WE DO:

Offering the World's Easiest to use GaN Laser Light

BluGlass' vertically integrated laser offering has been designed to meet the market and solve our customers biggest challenges

Flexible form factors will revolutionise how our customer use GaN laser light

Plug & Play & Custom Lasers

Offering underserved and custom wavelengths from 400nm-525nm

Single-mode and multi-mode products

Enhanced designs and novel device architectures for higher-power, higher- brightness lasers

BluGlass' Form Factor Offerings:

Single emitters

Laser diode bars

Chips-on-submounts (CoS)

TO Cans (various sizings)

C-Mounts,F-Mounts, Butterfly Pins

Vertically integrated from design and	Multi-chip Arrays
epitaxy to packaging and testing

Global Operations

Sydney, NSW, Australia	Silicon Valley, California, USA
	Nashua, New Hampshire, USA

Contents

CONTENTSCONTENTS

02	04	08	11
CHAIR AND	DIRECTORS' REPORT	INFORMATION ON	REMUNERATION
PRESIDENT'S LETTERS		DIRECTORS	REPORT
16	18	20	21
DIRECTORS' REPORT	AUDITORS	PROFIT OR LOSS AND	FINANCIAL
CONTINUED	INDEPENDENCE	COMPREHENSIVE	POSITION
	DECLARATION	INCOME
22	23	24	46
CHANGES IN EQUITY	CASHFLOWS	NOTES TO THE	DIRECTORS'
		FINANCIAL	DECLARATION
		STATEMENTS
47	51
INDEPENDENT	ADDITIONAL
AUDITOR'S REPORT	INFORMATION

BLUGLASS ANNUAL REPORT YEAR END 30 JUNE 2023 1