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Nauticus Robotics Announces Results for the Second Quarter of 2024

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HOUSTON, Aug. 13, 2024 /PRNewswire/ — Nauticus Robotics, Inc. (NASDAQ: KITT), a leading innovator in subsea robotics and software, today announced its financial results for the quarter ended June 30, 2024.

“I would like to thank our existing lenders for their continued support. Their steady conversion of warrants and convertible debentures improve our market cap and reduce our interest burden and our leverage,” said John Gibson, Nauticus’ CEO and President. “We successfully completed Phase I of a program for the largest offshore producer in Brazil. This phase has been billed and collected. We expect to complete Phase II without additional deepwater tests and can execute a significant portion of Phase III while in the Gulf of Mexico this year. We are committed to delivering supervised autonomy to subsea assets during Q3.”

Operational Highlights

Vehicle 2 Testing: Nauticus’ flagship vehicle, Aquanaut Mark 2 (Vehicle 2), underwent planned maintenance this quarter before shipping to Florida Atlantic University (FAU) for open water testing of capabilities refined after the vehicle’s initial Gulf of Mexico (GOM) testing during the first half of the year. The vehicle is planned to ship to Louisiana this month in anticipation of completing qualification testing.

Vehicle 1 Assembly: Vehicle 1 deepwater electronics upgrades are ongoing. Once the vehicle is fully assembled it is planned to ship to FAU to continue development and testing of the next set of vehicle capabilities. Vehicle 1 will become the test and qualification vehicle for these capabilities while Vehicle 2 remains revenue generating. Once new capability qualifications are complete, they will be loaded onto Vehicle 2 to expand Nauticus’ revenue generating opportunities by having two working vehicles with additional capabilities.

Vehicle 3 Assembly: Assembly of Vehicle 3 remains pending. Company focus has been on Vehicles 1 and 2 throughout the quarter.

FAU versus GOM Testing: The partnership with FAU for open water testing allows Nauticus to continue testing Vehicle 2 at a reduced cost compared to GOM open water testing. In addition, FAU provides the team with warehousing and shop facilities to perform minor maintenance as needed. The Atlantic Coast provides multiple deepwater locations close to shore containing bottom artifacts to fully test sensors and capabilities. These benefits will continue with testing of Vehicle 1 once its deepwater upgrades are complete.

Revenue: Nauticus reported second-quarter revenue of $0.5 million, compared to $1.1 million for the prior-year period and $0.5 million for the prior quarter. Q2 includes revenue recognized for the largest South American deepwater operator, an important step in reducing dependence on historical defense revenues.

Operating Expenses: Total expenses during the second quarter were $6.5 million, a $1.5 million decrease from the prior-year period, and a $0.5 million increase from Q1 2024.

Net Income: For the second quarter, Nauticus recorded a net loss of $5.4 million, or basic loss per share of $2.75. This compares with a net income of $20.7 million from the same period in 2023, and a net income of $0.4 million in the prior quarter.

Adjusted Net Loss: Nauticus reported adjusted net loss of $9.0 million for the second quarter, compared to $6.8 million for the same period in 2023. Adjusted net loss is a non-GAAP measure which excludes the impact of certain items, as shown in the non-GAAP reconciliation table below.

2024 G&A Cost: Nauticus reported G&A second-quarter costs of $3.2 million, which is a decrease of $2.3 million compared to the same period in 2023.

Balance Sheet and Liquidity

As of June 30, 2024, the Company had cash and cash equivalents of $8.1 million, compared to $0.8 million as of December 31, 2023.

In Q2, the Company closed additional debt financing of $1 million and raised $9.4 million through an at-the-market equity offering to provide liquidity needed for operations and testing.

Conference Call Details

Nauticus will host a conference call on August 14, 2024 at 10:00 a.m. Central Daylight Time (11:00 a.m. EDT) to discuss its results for the quarter ending June 30, 2024. To participate in the earnings conference call, participants should dial toll free at 800-445-7795, conference ID: KITT, or access the listen-only webcast at the following link: https://events.q4inc.com/attendee/706796022. A link to the webcast will also be available on the Company’s website (https://ir.nauticusrobotics.com/). Following the conclusion of the call, a recording will be available on the Company’s website.

About Nauticus Robotics

Nauticus Robotics, Inc. develops autonomous robots for the ocean industries. Autonomy requires the extensive use of sensors, artificial intelligence, and effective algorithms for perception and decision allowing the robot to adapt to changing environments. The company’s business model includes using robotic systems for service, selling vehicles and components, and licensing of related software to both the commercial and defense business sectors. Nauticus has designed and is currently testing and certifying a new generation of vehicles to reduce operational cost and gather data to maintain and operate a wide variety of subsea infrastructure. Besides a standalone service offering and forward-facing products, Nauticus’ approach to ocean robotics has also resulted in the development of a range of technology products for retrofit/upgrading traditional ROV operations and other third-party vehicle platforms. Nauticus’ services provide customers with the necessary data collection, analytics, and subsea manipulation capabilities to support and maintain assets while reducing their operational footprint, operating cost, and greenhouse gas emissions, to improve offshore health, safety, and environmental exposure. 

Cautionary Language Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Act”), and are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Act as well as protections afforded by other federal securities laws. Such forward-looking statements include but are not limited to: the expected timing of product commercialization or new product releases; customer interest in Nauticus’ products; estimated operating results and use of cash; and Nauticus’ use of and needs for capital. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. These statements may be preceded by, followed by, or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates,” “intends,” or “continue” or similar expressions. Forward-looking statements inherently involve risks and uncertainties that may cause actual events, results, or performance to differ materially from those indicated by such statements. These forward-looking statements are based on Nauticus’ management’s current expectations and beliefs, as well as a number of assumptions concerning future events. There can be no assurance that the events, results, or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and Nauticus is not under any obligation and expressly disclaims any obligation, to update, alter, or otherwise revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports which Nauticus has filed or will file from time to time with the Securities and Exchange Commission (the “SEC”) for a more complete discussion of the risks and uncertainties facing the Company and that could cause actual outcomes to be materially different from those indicated in the forward-looking statements made by the Company, in particular the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in documents filed from time to time with the SEC, including Nauticus’ Annual Report on Form 10-K filed with the SEC on April 10, 2024. Should one or more of these risks, uncertainties, or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, or expected. The documents filed by Nauticus with the SEC may be obtained free of charge at the SEC’s website at www.sec.gov

 

NAUTICUS ROBOTICS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, 2024

December 31, 2023

(Unaudited)

ASSETS

Current Assets:

Cash and cash equivalents

$                    8,122,943

$                       753,398

Restricted certificate of deposit

51,223

201,822

Accounts receivable, net

176,458

212,428

Inventories

2,217,507

2,198,797

Contract assets

482,576

Prepaid expenses

1,283,088

1,889,218

Other current assets

490,419

1,025,214

Assets held for sale

289,430

2,940,254

Total Current Assets

13,113,644

9,221,131

Property and equipment, net

16,500,849

15,904,845

Operating lease right-of-use assets

1,380,434

834,972

Other assets

204,296

187,527

Total Assets

$                  31,199,223

$                  26,148,475

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current Liabilities:

Accounts payable

$                    5,594,270

$                    7,035,450

Accrued liabilities

5,212,935

7,339,099

Contract liability

457,872

2,767,913

Operating lease liabilities – current

420,910

244,774

Total Current Liabilities

11,685,987

17,387,236

Warrant liabilities

1,192,693

18,376,180

Operating lease liabilities – long-term

1,035,713

574,260

Notes payable – long-term, net of discount (related party)

46,644,908

31,597,649

Total Liabilities

$                  60,559,301

$                  67,935,325

Stockholders’ Deficit

Common stock, $0.0001 par value; 625,000,000 shares authorized, 4,131,426
     and 1,389,884 shares issued, respectively, and 4,131,426 and 1,389,884
     shares outstanding, respectively (As adjusted)

$                               413

$                               139

Additional paid-in capital (As adjusted)

94,390,920

77,004,714

Accumulated deficit

(123,751,411)

(118,791,703)

Total Stockholders’ Deficit

(29,360,078)

(41,786,850)

Total Liabilities and Stockholders’ Deficit

$                  31,199,223

$                  26,148,475

 

NAUTICUS ROBOTICS, INC.
Unaudited Condensed Consolidated Statements of Operations

Three Months Ended

Six Months Ended

6/30/2024

3/31/2024

6/30/2023

6/30/2024

6/30/2023

Revenue:

Service

$          501,708

$          464,354

$      1,128,115

$          966,062

$      3,948,395

Service – related party

500

Total revenue

501,708

464,354

1,128,115

966,062

3,948,895

Costs and expenses:

Cost of revenue (exclusive of items shown
separately below)

2,875,394

2,093,955

1,900,602

4,969,349

4,832,869

Depreciation

411,586

426,185

53,209

837,771

326,308

Research and development

63,534

482,761

63,534

709,728

General and administrative

3,227,288

3,430,010

5,560,565

6,657,298

10,773,209

Total costs and expenses

6,514,268

6,013,684

7,997,137

12,527,952

16,642,114

Operating loss

(6,012,560)

(5,549,330)

(6,869,022)

(11,561,890)

(12,693,219)

Other (income) expense:

Other (income) expense, net

118,274

(96,473)

746

21,801

1,153,127

Gain on lease termination

(8,532)

(15,365)

(3,908)

(23,897)

(3,908)

Foreign currency transaction loss (gain)

4,296

5,147

(17,709)

9,443

(27,593)

Loss on exchange of warrants

590,266

590,266

Change in fair value of warrant liabilities

(4,422,701)

(8,309,623)

(29,668,454)

(12,732,324)

(27,431,550)

Interest expense, net

3,669,423

2,453,372

1,556,597

6,122,795

6,491,664

Total other income, net

(639,240)

(5,962,942)

(27,542,462)

(6,602,182)

(19,227,994)

Net income (loss)

$     (5,373,320)

$          413,612

$    20,673,440

$    (4,959,708)

$      6,534,775

Basic earnings (loss) per share (As adjusted)

$               (2.75)

$                 0.33

$              18.62

$              (2.97)

$                5.90

Diluted earnings (loss) per share (As adjusted)

$               (2.75)

$               (4.06)

$              17.70

$              (2.97)

$                5.79

Basic weighted average shares outstanding (As
adjusted)

1,950,563

1,239,881

1,110,091

1,667,187

1,107,580

Diluted weighted average shares outstanding (As
adjusted)

1,950,563

1,853,967

1,231,814

1,667,187

1,127,853

 

NAUTICUS ROBOTICS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months ended June 30,

2024

2023

Cash flows from operating activities:

Net income (loss)

$         (4,959,708)

$           6,534,775

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Depreciation

837,771

326,308

Amortization of debt discount

3,242,443

1,878,376

Amortization of debt issuance cost

312,440

Accretion of RCB Equities #1, LLC exit fee

48,475

Stock-based compensation

1,339,965

3,077,027

Loss on exchange of warrants

590,266

Change in fair value of warrant liabilities

(12,732,324)

(27,431,550)

Non-cash impact of lease accounting

171,962

145,253

Gain on disposal of assets

(3,102)

Write off of property and equipment

29,350

Gain on lease termination

(23,897)

Gain on short-term investments

(40,737)

Changes in current assets and liabilities:

Accounts receivable

35,969

319,940

Inventories

(18,710)

(5,869,092)

Contract assets

(482,576)

(37,341)

Other assets

1,232,368

(1,045,514)

Accounts payable and accrued liabilities

(1,715,646)

8,733,185

Contract liabilities

(2,310,041)

Operating lease liabilities

(55,937)

(193,257)

Net cash used in operating activities

(15,051,198)

(13,012,361)

Cash flows from investing activities:

Capital expenditures

(351,942)

(6,102,253)

Proceeds from sale of assets held for sale

419,720

Proceeds from sale of property and equipment

6,802

Proceeds from sale of short-term investments

5,000,000

Net cash from (used in) investing activities

74,580

(1,102,253)

Cash flows from financing activities:

Proceeds from notes payable

14,305,000

Payment of debt issuance costs on notes payable

(1,316,791)

Proceeds from at-the-market (ATM) offering

9,857,857

Payment of at-the-market (ATM) commissions and fees

(499,903)

Proceeds from exercise of stock options

342,579

Proceeds from exercise of warrants

338,055

Net cash from financing activities

22,346,163

680,634

Net change in cash and cash equivalents

7,369,545

(13,433,980)

Cash and cash equivalents, beginning of year

753,398

17,787,159

Cash and cash equivalents, end of year

$           8,122,943

$           4,353,179

NAUTICUS ROBOTICS, INC.
Unaudited Reconciliation of Net Income (Loss) Attributable to Common Stockholders (GAAP) to Adjusted Net Loss
 Attributable to Common Stockholders (NON-GAAP)

Adjusted net loss attributable to common stockholders is a non-GAAP financial measure which excludes certain items that are included in net income (loss) attributable to common stockholders, the most directly comparable GAAP financial measure. Items excluded are those which the Company believes affect the comparability of operating results and are typically excluded from published estimates by the investment community, including items whose timing and/or amount cannot be reasonably estimated or are non-recurring.

Adjusted net loss attributable to common stockholders is presented because management believes it provides useful additional information to investors for analysis of the Company’s fundamental business on a recurring basis. In addition, management believes that adjusted net loss attributable to common stockholders is widely used by professional research analysts and others in the valuation, comparison, and investment recommendations of companies such as Nauticus.

Adjusted net loss attributable to common stockholders should not be considered in isolation or as a substitute for net income (loss) attributable to common stockholders or any other measure of a company’s financial performance or profitability presented in accordance with GAAP. A reconciliation of the differences between net income (loss) attributable to common stockholders and adjusted net loss attributable to common stockholders is presented below. Because adjusted net loss attributable to common stockholders excludes some, but not all, items that affect net income (loss) attributable to common stockholders and may vary among companies, our calculation of adjusted net loss attributable to common stockholders may not be comparable to similarly titled measures of other companies.

Three Months Ended

Six Months Ended

6/30/2024

3/31/2024

6/30/2023

6/30/2024

6/30/2023

Net income (loss) attributable to common stockholders
(GAAP)

$  (5,373,320)

$        413,612

$  20,673,440

$  (4,959,708)

$    6,534,775

Change in fair value of warrant liabilities

(4,422,701)

(8,309,623)

(29,668,454)

(12,732,324)

(27,431,550)

Stock compensation expense

809,310

432,053

1,214,863

1,339,965

3,077,027

Sales and use tax assessment

1,189,164

Loss on exchange of warrants

590,266

590,266

Interest and penalties on RRA Amendment

362,045

4,320,690

Adjusted net loss attributable to common stockholders
(non-GAAP)

$  (8,986,711)

$   (7,463,958)

$  (6,827,840)

$  (16,352,067)

$  (11,719,628)

 

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SOURCE Nauticus Robotics, Inc.

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