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• Aeluma, Inc. recently completed its underwritten public offering, raising approximately US$25.4 million in gross proceeds and boosting its cash position to about US$38 million to invest in manufacturing partnerships and engineering talent.

• This significant cash increase could further position Aeluma for operational expansion through new hires and enhanced manufacturing capabilities.

• To assess how these developments affect Aeluma’s investment narrative, we’ll focus on the company’s increased capacity to invest in growth initiatives.

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To own shares in Aeluma today is to believe the company can turn rapid revenue growth and cutting-edge photonics into lasting profitability, even in a competitive and volatile sector. The recent US$25.4 million public offering lifts Aeluma’s cash reserves to around US$38 million, giving the company more room to pursue manufacturing partnerships and attract engineering talent. This extra cash could accelerate key short-term catalysts like new product launches and customer wins, while potentially reducing worries about near-term funding pressures. Still, with a recent uptick in insider selling and a history of substantial shareholder dilution, questions remain about how quickly the business can transition from high growth to sustainable profit. The fresh cash raises the company’s ceiling for expansion, but does not remove risks around execution, dilution, or path to profitability. In contrast, investors should keep an eye on the ongoing dilution risk and shifting capital needs.

Our valuation report unveils the possibility Aeluma’s shares may be trading at a premium.

Opinions from 4 Simply Wall St Community members peg Aeluma’s fair value anywhere from US$1.58 to US$25.50 per share. With such a wide range of estimates and the company recently strengthening its cash reserves, views on Aeluma’s future profitability and dilution risk continue to divide market participants. Explore these different viewpoints to better understand both the opportunity and the uncertainty.

Explore 4 other fair value estimates on Aeluma – why the stock might be worth as much as 53% more than the current price!

Disagree with this assessment? Create your own narrative in under 3 minutes – extraordinary investment returns rarely come from following the herd.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ALMU.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

The rising costs of coffee beans are keeping roasters and their customers on edge.

Retail coffee prices jumped nearly 21% in August compared to the same time last year, and the Trump administration’s tariffs are partially to blame: In July, Brazil was slapped with one of the highest duties, at 50%, while Vietnam has 20% tariffs and Colombia has 10% tariffs.

America imports more than 99% of its coffee, according to the National Coffee Association. Most of it comes from Brazil — 30.7% of US coffee imports based on net weight, according to the UN Comtrade Database — Colombia (18.3%) and Vietnam (6.6%).

The average price of regular coffee at restaurants in August was 10 cents more than the same time last year, according to data from Toast, a restaurant management software provider. The increase brought the average price to $3.52.

Some relief may be on the way. In September, Rep. Don Bacon, a Republican from Nebraska, and Democratic Rep. Ro Khanna of California, introduced the bipartisan “No Coffee Tax Act” to exempt coffee products from tariffs.

Price hikes may cause some consumers to start brewing their coffee at home, but they will likely continue buying cups from local shops as occasional indulgences.

“(Consumers) may change brands, or they may shop for deals, or perhaps go down in quality — or what they perceive as a quality level — in order to save a little bit of money,” said Erin McLaughlin, a senior economist at the Conference Board, a nonprofit research group.

Coffee drinkers in the nation’s capital are seeing more expensive drip and espressos these days. According to data from Toast, a regular hot coffee in Washington, DC, averaged $4.21 in August, up 4% from last year. And the average price of a cold brew costs $5.35, up 3.7% year-over-year.

Swing’s Coffee Roasters, which was founded in 1916 and has three locations in Virginia and Washington, DC, has been hit with higher-than-usual costs. Owner Mark Warmuth told CNN that Trump’s tariffs caused a “really difficult situation across the board” when combined with environmental and labor factors that make coffee more expensive.

“Consumers are footing the bill for it,” Warmuth said, adding that “the only loser here is the consumer.”

The cost of a single cup could go up about 10 or 15 cents, Warmuth warned. Even if importing beans costs 50% more, it’s unlikely a single cup would also increase 50%.

DC coffee drinkers may wince at the price, but they aren’t likely to give up their caffeine fix.

“(Coffee is) kind of considered an affordable luxury. While it might go from $3 a cup to $3.50 a cup, that may not be enough in downtown DC to cause somebody to change their consumption habits,” he added.

Chris Vigilante, owner of Vigilante Coffee Company, which has two locations in California and Maryland, said an average pound of coffee has gone up from about $4 to as much as $6. And a 12-ounce bag of beans could increase by 50 cents to $1 for customers, he said.

Vigilante imports much of its coffee from Brazil, and other beans come from countries including Indonesia, Ethiopia and Colombia. Amid federal layoffs and other pressures affecting DC residents, he said Vigilante Coffee Company has considered importing coffee from other countries to “diversify our offerings and keep certain price points for our customer base.”

Despite price increases, Vigilante said he’s optimistic that there are still ways “folks can continue to enjoy great specialty coffee (that) works for their wallet.”

The 50% tariff on top US exporter Brazil, which has seen its coffee bean supply shrink due to a drought, weighs the heaviest on businesses.

Doug Ilg, the owner of Celtic Cup Coffee Roasting in Silver Spring, Maryland, has avoided Brazilian coffee because of the huge tariffs. He doesn’t import coffee himself but buys primarily from third parties and has noticed costs rise in the last eight months.

Trump’s tariffs “definitely changed things,” Ilg said.

For instance, customers now may pay roughly 63 cents more per pound of beans compared to January because of the additional cost of tariffs this year, he said.

The additional costs also put more pressure on small and medium-sized businesses that invest more upfront, said McLaughlin of the Conference Board.

Joel Finkelstein, the owner of Qualia Coffee, which sells at farmers’ markets around DC, said it’s “really hard” to anticipate where his business will be in a year or two because of factors such as uncertainty about pricing.

“Every small business, unless you’re in a very fortunate position, is constantly assessing whether it makes sense to stay open,” Finkelstein said.