[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the company's unaudited financial information for the reporting period, including statements and related notes [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed financial statements for the quarter ended June 30, 2020, detailing the company's financial position, performance, and cash flows Condensed Balance Sheet Highlights (Unaudited) | Account | June 30, 2020 ($) | March 31, 2020 ($) | | :--- | :--- | :--- | | **Total Assets** | **912,091** | **388,636** | | Cash & cash equivalents | 591,851 | 48,307 | | **Total Liabilities** | **6,555,583** | **7,349,133** | | Notes payable, net | 2,215,403 | 3,083,158 | | Warrant liability | 2,314,152 | 1,733,718 | | **Total stockholders' deficit** | **(5,643,492)** | **(6,960,497)** | Condensed Statements of Operations (Unaudited) | Metric | Three Months Ended June 30, 2020 ($) | Three Months Ended June 30, 2019 ($) | | :--- | :--- | :--- | | Revenue | 0 | 0 | | Cost of revenue | 0 | 153,500 | | **Loss from operations** | **(9,310,079)** | **(1,849,779)** | | Research and development | 1,372,522 | 320,371 | | Selling, general and administrative | 7,937,557 | 1,375,908 | | **Net loss** | **(10,462,030)** | **(2,225,250)** | | **Net loss per share, basic and diluted** | **(0.61)** | **(0.20)** | [Condensed Statements of Stockholders' Deficit](index=6&type=section&id=Condensed%20Statements%20of%20Stockholders'%20Deficit) - The total stockholders' deficit decreased from **($6,960,497)** at March 31, 2020, to **($5,643,492)** at June 30, 2020, primarily driven by **$8.1 million** in stock-based compensation and stock issuances offsetting a **$10.5 million** net loss for the quarter[18](index=18&type=chunk) Condensed Statements of Cash Flows (Unaudited) | Activity | Three Months Ended June 30, 2020 ($) | Three Months Ended June 30, 2019 ($) | | :--- | :--- | :--- | | Net cash used in operating activities | (1,286,656) | (692,397) | | Net cash used in investing activities | 0 | (26,603) | | Net cash provided by financing activities | 1,830,200 | 620,000 | | **Net increase (decrease) in cash** | **543,544** | **(99,000)** | | **Cash — end of period** | **591,851** | **447** | [Notes to the Condensed Financial Statements (Unaudited)](index=8&type=section&id=Notes%20to%20the%20Condensed%20Financial%20Statements%20(Unaudited)) - The company has incurred substantial operating losses, with an accumulated deficit of approximately **$26.9 million** as of June 30, 2020, raising substantial doubt about its ability to continue as a going concern without additional financing[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) - On April 24, 2020, the company received a PPP Loan of **$197,200** under the CARES Act, with a fixed interest rate of **1%** and potential for forgiveness if used for qualifying expenses[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) - During the three months ended June 30, 2020, the company issued convertible notes with a principal balance of **$2,081,000** for proceeds of approximately **$2,050,000**, resulting in an outstanding principal balance of approximately **$3.4 million** as of the report date[88](index=88&type=chunk) - Total stock-based compensation expense for the three months ended June 30, 2020, was approximately **$8.1 million**, a significant increase from **$1.1 million** in the same period of 2019[137](index=137&type=chunk) - Subsequent to the quarter end, on September 11, 2020, the company sold **1,390,000 shares** and **695,000 warrants** in a private placement for gross proceeds of approximately **$1.7 million**[160](index=160&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's electrokinetic glass technology business, highlighting a significant increase in net loss to **$10.5 million** due to higher operating expenses and expressing substantial doubt about its going concern ability - The company is commercializing electrokinetic glass technology, an advancement on microfluidic technology originally developed by Hewlett-Packard Company[165](index=165&type=chunk) Results of Operations Comparison (Unaudited) | Metric | Three Months Ended June 30, 2020 ($) | Three Months Ended June 30, 2019 ($) | | :--- | :--- | :--- | | Research and development | (1,372,522) | (320,371) | | Selling, general and administrative | (7,937,557) | (1,375,908) | | **Net Loss** | **(10,462,030)** | **(2,225,250)** | - The increase in R&D and SG&A expenses for the quarter ended June 30, 2020, was primarily due to significant non-cash stock-based compensation expenses for employees, officers, and the CEO[173](index=173&type=chunk)[174](index=174&type=chunk) - Net cash provided by financing activities was **$1.8 million** for the three months ended June 30, 2020, mainly from the issuance of senior secured convertible notes and a PPP loan[184](index=184&type=chunk) - The company has incurred substantial operating losses and has an accumulated deficit of approximately **$26.9 million** at June 30, 2020, raising substantial doubt about its ability to continue as a going concern[176](index=176&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a Smaller Reporting Company, the company is not required to provide quantitative and qualitative disclosures regarding market risk - Disclosure is not required for a Smaller Reporting Company[190](index=190&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO, evaluated and concluded that the company's disclosure controls and procedures were effective as of June 30, 2020, with no material changes in internal control over financial reporting - Management, including the CEO, evaluated the company's disclosure controls and procedures and concluded they are effective as of the quarter ended June 30, 2020[193](index=193&type=chunk) - There were no changes in internal control over financial reporting during the fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[195](index=195&type=chunk) [PART II - OTHER INFORMATION](index=34&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section provides additional information including legal proceedings, risk factors, equity sales, defaults, and exhibits [Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company is actively defending itself in a lawsuit filed by Spencer Clarke LLC concerning a 2018 Placement Agent Agreement, disputing claims and filing counterclaims - Spencer Clarke LLC filed a lawsuit against the company in August 2019 concerning a 2018 Placement Agent Agreement, alleging failure to make payments[198](index=198&type=chunk) - The company has filed an Answer and Counterclaims against Spencer Clarke, alleging breach of contract, anticipatory repudiation, and tortious interference, disputing owing any money[198](index=198&type=chunk) [Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) The company identifies the COVID-19 pandemic as a significant and uncertain risk factor, potentially impacting its business, operations, and financial condition - The impact of the COVID-19 outbreak on the company's business, results of operations, and financial condition is uncertain and depends on future developments[199](index=199&type=chunk)[201](index=201&type=chunk) - The company has modified business practices, including employee travel and work locations, in response to the pandemic, but there is no certainty these measures will be sufficient[200](index=200&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the quarter, beyond those previously disclosed in Form 8-K filings - No unregistered sales of equity securities occurred during the period, other than those previously disclosed on Form 8-K[202](index=202&type=chunk) [Defaults Upon Senior Securities](index=34&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults on senior securities during the current reporting period - None[203](index=203&type=chunk) [Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This disclosure item is not applicable to the company's operations - N/A[204](index=204&type=chunk) [Other Information](index=34&type=section&id=Item%205.%20Other%20Information) No additional information is reported for this period - N/A[204](index=204&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including required certifications and XBRL data files - The report includes certifications from the Principal Executive Officer and Principal Financial Officer pursuant to Sarbanes-Oxley Act Sections 302 and 906[204](index=204&type=chunk)[205](index=205&type=chunk) - XBRL Instance Document and related taxonomy files are included as exhibits[205](index=205&type=chunk)[206](index=206&type=chunk) [Signatures](index=36&type=section&id=Signatures) This section contains the required signatures for the financial report, affirming its accuracy and completeness

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO 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) | --- | --- | |---------------------------- ...

Financial Performance - For the three months ended September 30, 2019, the company reported no revenue, compared to $0.2 million for the same period in 2018, resulting in a net loss of $2.8 million for Q3 2019[177][176] - For the six months ended September 30, 2019, the company reported no revenue, compared to $0.3 million for the same period in 2018, with a net loss of $5.0 million[184][183] - The company had an accumulated deficit of approximately $11.9 million as of September 30, 2019, with significant operating losses expected to continue[191] Expenses - Research and development expenses increased to $0.8 million for the three months ended September 30, 2019, up from $0.2 million in the same period of 2018, primarily due to stock-based compensation[179] - Selling, general and administrative expenses rose to $1.5 million for Q3 2019, compared to $0.5 million in Q3 2018, reflecting a $1.0 million increase mainly from employee compensation and professional fees[180] - Research and development expenses for the six months ended September 30, 2019, were $1.1 million, compared to $0.3 million in the same period of 2018, indicating a $0.7 million increase due to stock-based compensation[186] - Selling, general and administrative expenses for the six months ended September 30, 2019, were $2.9 million, up from $0.8 million in the same period of 2018, marking a $2.1 million increase[187] Cash Flow - Net cash used in operating activities for the six months ended September 30, 2019, was $0.7 million, primarily due to a net loss of $5.0 million adjusted for non-cash expenses[195] - Net cash provided by financing activities for the six months ended September 30, 2019, was $0.7 million, primarily from proceeds of senior secured convertible notes[199] - For the six months ended September 30, 2018, net cash provided by financing activities was $0.7 million, primarily from $0.8 million proceeds from senior secured convertible notes[200] Going Concern - The company anticipates needing substantial additional financing to fund operations and develop its technology, raising doubts about its ability to continue as a going concern[192] Accounting Policies - The adoption of the new revenue standard, ASC 606, did not affect 2019 or 2018 revenue recognition[203] - The company recognizes revenue up to the amount of costs incurred for performance obligations that cannot be reasonably measured[205] - Stock-based compensation expense is recognized based on the estimated fair value of the award on the grant date, using the Black-Scholes option-pricing model[207] - The expected term for options is calculated using the simplified method, typically 10 years following the date of grant[210] - The expected volatility for options is based on the historical share volatility of comparable publicly traded companies[211] - The fair value of common stock is estimated by the board of directors based on various factors, including third-party valuations and market conditions[213] - The company is electing to delay the adoption of new or revised accounting standards as an emerging growth company[217] - Quantitative and qualitative disclosures about market risk are not required for a Smaller Reporting Company[218]