Financial Data and Key Metrics Changes - Revenue for 2024 was $1.8 million, down $4.8 million from 2023, primarily due to a reduction in government contracts [24][25] - Operating expenses for the year were $24.9 million, which is a $36.8 million improvement from 2023 [25] - Net loss for the year was $134.9 million, an increase of $84.2 million from the previous year, mainly due to a $127.6 million loss on extinguishment of debt [27] - Adjusted net loss for the year was $26.1 million, compared to $34.3 million for the prior year, showing an $8.2 million improvement [28] - Cash at the end of 2024 was $1.2 million, compared to $0.7 million at the end of 2023 [29] Business Line Data and Key Metrics Changes - The company recognized revenue for commercial operations of the Aquanaut vehicle for the first time in its history [25] - The acquisition of C-Trepid is expected to provide a significant backlog of work and reduce customer concentration [14][34] Market Data and Key Metrics Changes - The offshore market is experiencing a resurgence, with stable oil prices and increased long-term investments in infrastructure [73][76] - The company anticipates 2025 to be one of the busiest offshore markets in the past decade, with strong demand for its services [45] Company Strategy and Development Direction - The company is transitioning from a research and development focus to a commercial revenue-generating model [8] - Plans for 2025 include leveraging lessons learned from the inaugural offshore operations and enhancing the capabilities of the Aquanaut vehicle [10][36] - The government contracting side is expected to provide stability and larger upside compared to seasonal commercial contracts [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming offshore season, citing eagerness from customers to adopt autonomous technology [12][13] - The company has cured its noncompliance issues with NASDAQ and is focused on securing necessary cash for 2025 [22][17] - Management expects significant revenue growth in 2025, projecting revenues greater than $16 million [59] Other Important Information - The company filed restated financial statements due to a correction in accounting treatment for a complex debt transaction [19] - The acquisition of SeaTrepid is seen as a game-changer, providing access to a broader group of early adopters [14] Q&A Session Summary Question: What is the potential revenue for 2025? - Management is confident that revenue will be significantly higher than 2024, projecting greater than $16 million [59] Question: What differentiates the company's autonomous underwater vehicles from competitors? - The company has a leadership position in manipulators for autonomous underwater vehicles, offering unique capabilities such as untethered operation and depth capabilities of 3,000 meters [61][62] Question: What are the capital requirements for the business? - The company is exploring non-dilutive approaches to bring in capital for additional assets based on demand, with potential revenue generation of $6 to $8 million per season per asset [66][69] Question: What market dynamics are contributing to a strong offshore season? - Stable oil prices and long-term investment commitments in offshore platforms are driving demand, along with regulatory inspections and decommissioning activities [73][76]

Financial Results - Nauticus Robotics, Inc. reported its financial results for the quarter and year ended December 31, 2024, along with amended quarterly results for Q1, Q2, and Q3 of 2024[4] Conference Call - The company will hold a conference call to discuss its operating results following the press release issued on April 15, 2025[4] Press Release - The press release is incorporated as Exhibit 99.1 in the Current Report on Form 8-K[4]

Core Insights - Nauticus Robotics, Inc. has transitioned from a research and development company to a commercial entity focused on generating revenue, marking a transformational year in 2024 [2][9] - The company is set to enhance its offshore inspection operations by moving from tethered to autonomous execution, which is expected to improve operational efficiency for customers [3][4] - Nauticus completed the acquisition of SeaTrepid International, which is anticipated to expand its customer base and operational capabilities [8] Financial Highlights - For the fourth quarter of 2024, Nauticus reported revenue of $0.5 million, a decrease from $1.1 million in the same period of 2023, with full-year revenue at $1.8 million compared to $6.6 million in 2023 [10] - Total operating expenses for the fourth quarter were $6.5 million, down $28.8 million from the prior year, while full-year expenses were $24.9 million, a decrease of $36.8 million [11] - The adjusted net loss for the fourth quarter was $6.9 million, an improvement from an adjusted net loss of $8.8 million in the same period of 2023, with a full-year adjusted net loss of $26.1 million compared to $34.3 million in 2023 [12][29] Operational Highlights - The Aquanaut vehicle successfully completed its first deepwater testing in 2024, leading to immediate commercial work and ongoing discussions with new customers [4] - The ToolKITT software team confirmed operations on an existing ROV, aiming to reduce subsea operational costs for customers, with a commercial product release targeted for 2025 [5] - The Olympic Arm team is set to complete the first electric manipulator units for Aquanaut vehicles and existing ROVs by the end of 2025, enhancing the vehicle's capabilities [6] Balance Sheet and Liquidity - As of December 31, 2024, Nauticus had cash and cash equivalents of $1.2 million, an increase from $0.8 million at the end of 2023 [15] - The company raised $19.4 million through At The Market offerings in Q1 2025, issuing nearly 7.5 million shares [15] Strategic Developments - The government team established a formal alliance with its largest customer to address emerging challenges, indicating a focus on long-term stability and growth in governmental contracting [7] - Nauticus is actively pursuing opportunities in the offshore sector, leveraging its acquisition of SeaTrepid to enhance its service offerings and customer relationships [8]

Financial Performance - The company incurred a net loss of $134.9 million and $50.7 million for the years ended December 31, 2024 and 2023, respectively, and expects to continue incurring operating and net losses until at least Q1 2026 [105]. - Negative cash flow from operating activities was $24.2 million and $21.7 million for the years ended December 31, 2024 and 2023, respectively, with expectations of continued negative cash flow for the remainder of 2025 [106]. - The company has not yet achieved positive operating cash flow and its ability to generate positive cash flow in the near term is uncertain [107]. - The company reported negative cash flow from operating activities of $24.2 million and $21.7 million for the years ended December 31, 2024, and 2023, respectively, and expects to continue having negative cash flow for the remainder of 2025 [218]. - As of December 31, 2024, the company had federal net operating losses (NOLs) of approximately $121 million, with about $646,000 beginning to expire in 2035 [219]. Revenue Concentration and Customer Dependence - The company relies on a limited number of customers for a significant portion of its revenue, which poses risks related to revenue concentration [101]. - For the year ended December 31, 2024, sales to three customers accounted for 82% of total revenue, with Customer A at 39%, Customer B at 27%, and Customer C at 16% [125]. - Total accounts receivable for the year ended December 31, 2024 was primarily from these three customers, indicating a high concentration of revenue risk [125]. - Sales to government entities are subject to significant risks, including competitive bidding processes and potential funding delays, which could adversely affect revenue [127]. Operational Risks and Challenges - The company identified material weaknesses in internal control over financial reporting, which could adversely affect the accuracy and timeliness of financial reporting [114]. - The company is dependent on suppliers, some of which are single or limited source suppliers, which could adversely affect operations if they fail to deliver necessary components [103]. - The company relies on third-party manufacturers, which increases the risk of supply chain disruptions that could impact product availability and profit margins [134]. - The company may experience delays or disruptions in its supply chain, which could lead to increased costs and affect operational efficiency [162]. - The company has sourced lithium-ion battery cells from only one supplier for commercial production, which poses a risk of disruption in production if supply issues arise [199]. - The company is experiencing increases in the cost and interruptions in the supply of materials, which could delay product commercialization and negatively impact financial results [196]. Strategic Plans and Investments - The company plans to continue developing and commercializing ocean robotic systems, increasing sales and marketing activities, and enhancing technology infrastructure [109]. - The company plans to invest significantly in expanding its operations, including hiring additional personnel to support growth in ocean robotic systems [129]. - The company anticipates ongoing significant capital expenditures to support the development and commercialization of its products, influenced by customer demand [138]. - The company may undertake acquisitions to add new products and technologies, but failure to integrate these acquisitions could adversely affect its financial condition [225]. Compliance and Regulatory Risks - The company incurs significant legal, accounting, and other expenses as a public company, which may increase operating costs in future periods [164]. - Compliance with extensive government laws and regulations related to health, safety, and the environment may lead to significant costs and liabilities [172]. - The company is subject to evolving data privacy and security laws, and any data breach may result in significant liabilities and negatively affect its financial condition [173]. - The company faces cybersecurity risks that could disrupt operations and lead to loss of sensitive data [176]. - The company is subject to governmental export and import controls, which could result in substantial civil or criminal penalties if noncompliance occurs [185]. Market and Competitive Landscape - The company operates in a competitive industry with rapid technological changes, facing competition from both established and emerging players in the blue technology markets [206]. - The company faces potential competition from automotive and aerospace sectors as it expands its autonomy software platform [210]. - The company targets large corporations as customers, which have substantial negotiating power and may develop competitive internal solutions [205]. Shareholder and Stock Market Considerations - The company may issue a significant number of shares or equity-linked securities in the future, which could dilute existing shareholders [103]. - The market price of the company's Common Stock is volatile and may be subject to wide fluctuations due to various factors [257]. - Significant stockholder sales could negatively impact the market price of the company's Common Stock [256]. - The company has received a determination letter from Nasdaq regarding non-compliance with the minimum $35 million market value requirement for continued listing [260]. - The company was granted an exception until December 31, 2024, to demonstrate compliance with Nasdaq listing rules [260]. Internal Control and Management - The effectiveness of internal controls over financial reporting is critical, with potential weaknesses identified for the years ended December 31, 2024 and 2023 [120]. - Management's operating and financial projections are based on several assumptions, including timely hiring of skilled personnel and demand for ocean robotic systems, which may prove incorrect [131]. - The company must attract and retain qualified personnel to ensure successful product design, manufacturing, and market launch, with competition for skilled employees being intense [161]. Product Development and Technology - The company launched commercial services utilizing the Aquanaut robotic system in 2024 and expects to launch a commercial version of ToolKITT software in 2025, although timelines may be delayed due to various challenges [147]. - The company faces risks associated with the performance of its ocean robotic systems, which may not meet customer expectations or perform consistently, potentially harming its reputation and financial condition [145]. - The company may face challenges in adopting new technologies due to customer resistance, which could hinder market penetration and growth [143]. - The company’s growth strategy relies on developing systems and products, which may have shorter useful lives than anticipated, adversely affecting business operations and financial condition [230]. Legal and Liability Risks - The company may experience significant liabilities from litigation or legal proceedings, which could negatively impact its reputation and financial position [221]. - The company is exposed to potential liabilities from product malfunctions or operator errors, which could adversely affect its financial condition and reputation [154]. - Any failure to comply with product regulations could lead to significant fines and adversely affect the company's revenues [168].

Company Overview - Nauticus Robotics, Inc. develops autonomous robots for ocean industries, utilizing sensors, artificial intelligence, and algorithms for adaptability in changing environments [3] - The company's business model includes providing robotic systems for services, selling vehicles and components, and licensing software to commercial and defense sectors [3] - Nauticus is testing and certifying a new generation of vehicles aimed at reducing operational costs and gathering data for subsea infrastructure maintenance [3] - The services offered by Nauticus focus on data collection, analytics, and subsea manipulation, which help customers reduce operational footprints, costs, and greenhouse gas emissions [3] Financial Results Announcement - Nauticus plans to host an earnings conference call on April 16, 2025, at 9:00 am Central Time to discuss its fourth quarter and year-end financial results for the period ending December 31, 2024 [1]

Core Insights - Nauticus Robotics, Inc. has successfully completed the acquisition of SeaTrepid International, LLC ahead of schedule, enhancing its capabilities in autonomous subsea robotics and software solutions [1][2] - The combined entity will operate under the Nauticus Robotics brand and is expected to drive operational growth through alignment and transition activities [2][3] Company Overview - Nauticus Robotics specializes in developing autonomous robots for ocean industries, utilizing sensors, artificial intelligence, and algorithms to adapt to changing environments [4] - The company's business model includes providing robotic services, selling vehicles and components, and licensing software for both commercial and defense sectors [4] - Nauticus is focused on reducing operational costs and environmental impact while improving safety and efficiency in offshore operations [4] SeaTrepid Overview - SeaTrepid International is a provider of applied robotic solutions for various sectors, including commercial, public safety, military, and scientific applications [5] - The company operates a diverse range of robotic equipment and sensor suites for both inland and offshore customers globally [5] Leadership and Market Position - John Gibson continues as CEO and President of Nauticus Robotics, while Bob Christ leads SeaTrepid Operations [3] - The leadership emphasizes the strategic fit of the acquisition and the readiness of the market for enhanced automation in subsea operations [3]

Combination Expands Addressable Market and Drives Operational Synergies HOUSTON, March 5, 2025 /PRNewswire/ -- Nauticus Robotics, Inc. (NASDAQ: KITT, "Nauticus"), a leading innovator in autonomous subsea robotics and software solutions, today announced signing of a definitive agreement to acquire all of the assets and business of SeaTrepid International, LLC ("SeaTrepid"), an expert in providing subsea robotic services to customers throughout the world. This strategic acquisition underscores Nauticus' commi ...

HOUSTON, Feb. 20, 2025 /PRNewswire/ -- Nauticus Robotics, Inc. (NASDAQ: KITT), a leading innovator in autonomous subsea robotics and software, today announced that on February 18, 2025, it received a formal notice from The Nasdaq Capital Market ("Nasdaq") confirming that Nauticus has demonstrated compliance with the equity requirement in Rule 5550(b)(1) (the "Equity Rule"), and is therefore in compliance with Nasdaq's continued listing requirements. John Gibson, CEO and President of Nauticus Robotics, state ...

HOUSTON, Feb. 3, 2025 /PRNewswire/ -- Nauticus Robotics, Inc. (NASDAQ: KITT), a leading innovator in autonomous subsea robotics and software, announces assembly completion of its second flagship underwater vehicle, Aquanaut Mark 2.Nauticus completed assembly and the first phase of acceptance testing at its Houston facility in January. This second Aquanaut vehicle is now in Louisiana undergoing the next phase of acceptance testing. The vehicle should complete the required pool testing this month. Once comple ...

Core Insights - Nauticus Robotics, Inc. has announced a strategic collaboration with SeaTrepid International to integrate and test its ToolKITT software on SeaTrepid's Remotely Operated Vehicle (ROV) fleet [1][2] Group 1: Collaboration Details - Nauticus will install a perpetual license of ToolKITT software on an ROV, with SeaTrepid providing access to facilities and workforce for pool testing during certification [2] - The collaboration aims to enhance SeaTrepid's ROV services, providing a competitive edge, while Nauticus anticipates recurring annual software maintenance revenues post-deployment [2] Group 2: Technical Focus - The initial focus of the collaboration is on implementing ToolKITT's automatic station-keeping capability, which will stabilize ROVs during subsea operations, reducing pilot workload and improving precision [3] - Following the successful deployment of this feature, additional advanced capabilities of ToolKITT will be rolled out incrementally [3] Group 3: Leadership Statements - John Gibson, CEO of Nauticus, expressed excitement about the collaboration, highlighting potential efficiency gains such as reduced CO2 emissions and faster mission completion times [4] - Bob Christ, CEO of SeaTrepid, noted that this partnership positions SeaTrepid to become the first autonomous ROV service provider, transforming subsea operations [4] Group 4: Company Backgrounds - Nauticus Robotics develops autonomous robots for ocean industries, focusing on reducing operational costs and improving data collection for subsea infrastructure maintenance [5] - SeaTrepid International provides robotic solutions for various applications, operating a range of robotic equipment and sensor suites for global customers [6]