[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20-%20Financial%20Statements.) The unaudited financials show a pre-revenue company with significant operating losses, declining assets, and rising liabilities funded by capital raises [Condensed Balance Sheets](index=4&type=section&id=Condensed%20Balance%20Sheets) The balance sheet reflects a decline in total assets to $6.17 million and a rise in liabilities, eroding stockholders' equity Condensed Balance Sheet Highlights (in thousands) | Account | Sep 30, 2022 (Unaudited) | Dec 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $342 | $6,130 | | Total current assets | $722 | $6,817 | | TOTAL ASSETS | $6,166 | $9,652 | | **Liabilities & Equity** | | | | Total current liabilities | $1,605 | $664 | | Total liabilities | $3,420 | $664 | | Total stockholders' equity | $2,746 | $8,988 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $6,166 | $9,652 | [Condensed Statements of Operations](index=5&type=section&id=Condensed%20Statements%20of%20Operations) The net loss for the nine-month period improved to $12.16 million, driven by lower operating expenses and non-recurring prior-year charges Operating Results for the Nine Months Ended September 30 (in thousands, except per share data) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Research and development | $3,523 | $2,127 | | Selling, general and administrative | $8,634 | $14,184 | | Loss from operations | ($12,157) | ($16,311) | | Net loss | ($12,163) | ($31,774) | | Net loss per share | ($0.73) | ($2.32) | [Condensed Statements of Cash Flows](index=9&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Net cash used in operations was $8.05 million, with a significant drop in financing activities leading to a cash balance of $0.34 million Cash Flow Summary for the Nine Months Ended September 30 (in thousands) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | ($8,049) | ($8,137) | | Net cash used in investing activities | ($339) | ($2,098) | | Net cash provided by financing activities | $2,600 | $19,900 | | **Net (decrease) increase in cash** | **($5,788)** | **$9,665** | | Cash — end of period | $342 | $9,701 | [Notes to the Condensed Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Financial%20Statements%20(Unaudited)) The notes detail a history of operating losses, an accumulated deficit of $85.9 million, and management's liquidity plans - The company has incurred substantial operating losses since inception, with an **accumulated deficit of approximately $85.9 million** and **negative working capital of approximately $0.9 million** as of September 30, 2022[35](index=35&type=chunk) - Management believes the company has sufficient cash for at least the next 12 months, based on current cash, a **$10 million Standby Letter of Credit (SLOC)**, and an **At-the-Market (ATM) facility**[43](index=43&type=chunk)[186](index=186&type=chunk) - Subsequent to the quarter end, on October 19, 2022, the company raised **$3.2 million in net proceeds** from a convertible note offering[145](index=145&type=chunk)[148](index=148&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=29&type=section&id=Item%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the commercialization of its technology, improved operating results, and financing activities to ensure liquidity - The company is commercializing its electrokinetic glass technology, with its first product being the **Smart Window Insert by DynamicTint**[153](index=153&type=chunk) - In August 2022, the company received its **first purchase orders, valued at $85,450**, from Hudson Pacific Properties for its Smart Window Inserts, with delivery expected to begin in December 2022[172](index=172&type=chunk) - The company has entered into **Master Supply Agreements** with MetroSpaces Inc., Hudson Pacific Properties L.P., and Brandywine Operating Partnerships L.P. for the installation of its Smart Window Inserts[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Net loss decreased significantly due to a $5.6 million reduction in SG&A and the non-recurrence of a prior-year $15.5 million other expense Comparison of Results for the Nine Months Ended September 30 (in thousands) | Expense Category | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Research and development | $3,523 | $2,127 | +$1,400 | | Selling, general and administrative | $8,634 | $14,184 | -$5,550 | | Other (income)/expense | $6 | $15,463 | -$15,457 | | **Net loss** | **$12,163** | **$31,774** | **-$19,611** | - The **$5.6 million decrease in SG&A expenses** for the nine months ended Sep 30, 2022, was primarily due to a **$5.9 million decrease in stock-based compensation**[179](index=179&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) The company is managing its liquidity through an ATM facility, a SLOC, and a recent convertible note offering to fund operations - The company entered into a **$10 million Standby Letter of Credit (SLOC)** in March 2022 and an **At-the-Market (ATM) offering agreement for up to $5 million** in March 2022 to provide liquidity[183](index=183&type=chunk)[184](index=184&type=chunk) - Subsequent to September 30, 2022, the company received approximately **$0.5 million from its ATM offering** and **$3.2 million from a Convertible Notes issuance**[185](index=185&type=chunk) - Management believes that based on the current operating plan, cash on hand, SLOC funding, and ATM facility, the company has **sufficient cash for at least the next 12 months**[186](index=186&type=chunk) [Critical Accounting Policies and Estimates](index=35&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Critical estimates involve stock-based compensation and common stock fair value, using the Black-Scholes model and peer data - The company uses the **Black-Scholes option-pricing model** to estimate the fair value of stock option awards, requiring management to make assumptions about expected term, volatility, risk-free rate, and dividends[199](index=199&type=chunk)[200](index=200&type=chunk) - Due to a lack of its own historical data, the company estimates expected stock volatility based on the **historical volatility of a publicly traded set of peer companies**[202](index=202&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a Smaller Reporting Company, the company is not required to provide market risk disclosures - As a Smaller Reporting Company, the company is **not required to provide** quantitative and qualitative disclosures about market risk[211](index=211&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls during the quarter - Based on an evaluation for the quarter ended September 30, 2022, the Chief Executive Officer concluded that the company's **disclosure controls and procedures are effective**[214](index=214&type=chunk) - There were **no changes in internal control over financial reporting** during the fiscal quarter that materially affected, or are reasonably likely to materially affect, internal controls[216](index=216&type=chunk) [PART II - OTHER INFORMATION](index=38&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company faces no material legal actions but may litigate to defend its intellectual property in the future - The company is involved in various claims and legal actions from the ordinary course of business but **does not expect them to have a material adverse effect**[219](index=219&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, this section is not required - The company is a smaller reporting company and is **not required to provide information** under Item 1A. Risk Factors[221](index=221&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) No unregistered sales of equity securities were made during the period beyond prior disclosures - There were **no unregistered sales of equity securities** during the period covered by the report, other than those previously disclosed on Form 8-K[222](index=222&type=chunk) [Defaults Upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon its senior securities - None[223](index=223&type=chunk) [Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - N/A[224](index=224&type=chunk) [Other Information](index=38&type=section&id=Item%205.%20Other%20Information) The company reports no other material information for this period - N/A[224](index=224&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the report

Financial Data and Key Metrics Changes - The company's net loss for Q2 2022 was $4.5 million, which is $0.9 million lower than the $5.4 million recorded in Q2 2021 [22] - Total operating expenses for Q2 2022 were $4.5 million, including $1.5 million of non-cash stock-based compensation, $1.8 million for payroll and consulting, $0.5 million for professional fees, and $0.6 million of operating overhead [23] - Cash deployed for operations and investments in Q2 was $2.6 million, which is $1 million lower than the $3.6 million in Q1 2022 [24] Business Line Data and Key Metrics Changes - The company received two purchase orders for its Smart Window Inserts from Hudson Pacific Properties, marking a critical milestone in its evolution [11] - The Smart Window Insert is positioned as the only smart glass retrofit product in the market, aimed at reducing HVAC energy consumption and carbon emissions [10] Market Data and Key Metrics Changes - Legislative initiatives, such as the Inflation Reduction Act and New York City's Local Law 97, are compelling REITs to upgrade their building envelopes, creating a favorable market environment for the company's products [12][13] - The company is assessing new retrofit locations with prospective REIT customers, indicating a growing sales pipeline [13] Company Strategy and Development Direction - The company's mission is to provide an affordable smart glass solution to the commercial real estate market, focusing on energy efficiency and carbon emission reduction [8] - The company is actively working to become a key ESG supplier to U.S.-based office buildings, helping them retrofit legacy infrastructure [11] - Future product development includes a second-generation Smart Window Insert with enhanced features and capabilities [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about closing debt financing soon and starting production of the first generation of Smart Window Inserts [22] - The company is confident in its ability to meet demand and is positioned well in the market due to legislative support and the urgency of REITs to comply with energy regulations [40] Other Important Information - The company successfully closed equity raises totaling $2.1 million, which are necessary for accessing debt financing [14][15] - The independent IP valuation indicated a fair market value of approximately $94 million for the company's combined patents and trade secrets [16] Q&A Session Summary Question: Are there two different lenders for the second term sheet? - Yes, there are two different lenders with competing term sheets [27] Question: What is the status of the due diligence process from the lenders? - The due diligence process includes standard management presentations and discussions with the vendor [30] Question: How long will it take to get funded after the debt is closed? - Funding is expected within thirty days, followed by a design phase and manufacturing process that could take up to a year [31] Question: What is the status of the first generation production line? - There is a delay due to a material component from the UK, expected to take an additional four to eight weeks [33] Question: Are there other purchase orders expected from REITs? - The company is working on securing additional purchase orders and expects to announce new customers soon [35][40]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 001-39924 Crown Electrokinetics Corp. (Exact name of registrant as specified in its charter) | --- | --- | |------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 333-232426 Crown Electrokinetics Corp. (Exact name of registrant as specified in its charter) | --- | --- | |----------------- ...

Crown ElectroKinetics Corp.(NASDAQ:CRKN) Q1 2022 Earnings Conference Call May 13, 2022 11:00 AM ET Company Participants Doug Croxall - CEO and Chairman Joel Krutz - CFO Conference Call Participants Jeffrey Campbell - Alliance Global Partners Shawn Severson - Water Tower Research Jim McIlree - Dawson James Operator Good day, everyone, and welcome to Crown ElectroKinetics Corp. Earnings Call for the First Quarter 2022. [Operator Instructions] This conference call is being recorded. A replay of today's call wi ...

Crown ElectroKinetics Corp. (NASDAQ:CRKN) Q3 2021 Earnings Conference Call March 30, 2022 11:00 AM ET Company Participants Doug Croxall - Chairman and Chief Executive Officer Joel Krutz - Chief Financial Officer Conference Call Participants Jeffrey Campbell - Alliance Global Partners Gerry Sweeney - ROTH Capital James McIlree - Dawson James Securities Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 333-232426 Crown Electrokinetics Corp. (Exact name of registrant as specified in its charter) | --- | --- | |------------- ...

DYNAMICTINT – WE MAKE YOUR GLASS SMARTERTM Crown Electrokinetics Corp. (NASDAQ: CRKN) October 2021 NASDAQ: CRKN May 2021 Safe Harbor Statement This presentation and other written or oral statements made from time to time by representatives of Crown Electrokinetics may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements reflect the current view about future events. ...

Crown ElectroKinetics Corp. (NASDAQ:CRKN) Q1 2022 Earnings Conference Call August 16, 2021 11:00 AM ET Company Participants Allison Soss – Investor Relations Doug Croxall – Chairman and Chief Executive Officer Joel Krutz – Chief Financial Officer Eddie Kovalik – President and Chief Operating Officer Conference Call Participants Gerry Sweeney – ROTH Capital Jim McIlree – Dawson James Securities Mike Shlisky – D.A. Davidson Jeffrey Campbell – Alliance Global Partners Operator Greetings and welcome to Crown El ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 333-232426 Crown Electrokinetics Corp. (Exact name of registrant as specified in its charter) | --- | --- | |------------------ ...