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]

Core Insights - Nauticus Robotics, Inc. has signed a definitive agreement to acquire SeaTrepid International, LLC, enhancing its capabilities in autonomous subsea robotics and expanding its addressable market [1][2] - The acquisition is expected to significantly increase Nauticus' revenue, projected to be approximately nine times higher than its standalone revenue in 2024 [2] - The integration of Nauticus' AI-driven autonomy software, ToolKITT, with SeaTrepid's ROV fleet will lead to advancements in power efficiency and operational performance [2][4] Company Overview - Nauticus Robotics develops autonomous robots for ocean industries, utilizing sensors, artificial intelligence, and algorithms for effective decision-making in changing environments [5] - The company’s business model includes providing robotic services, selling vehicles and components, and licensing software for both commercial and defense sectors [5] - Nauticus aims to reduce operational costs and greenhouse gas emissions while improving offshore health and safety through its innovative technologies [5] SeaTrepid Overview - SeaTrepid International is a provider of applied robotic solutions for various sectors, including commercial, public safety, military, and scientific applications [6] - The company operates a diverse range of robotic equipment and sensor suites for both inland and offshore customers globally [6] Leadership and Operational Structure - John Gibson will continue as CEO of the combined entity, while SeaTrepid's CEO, Bob Christ, will serve as President of SeaTrepid Operations [3] - Both companies will retain their current locations and workforces, anticipating growth in new projects throughout 2025 [3] Strategic Implications - The acquisition is seen as a strategic move to enhance ROV capabilities and execution on a global scale, addressing the stagnation in ROV investment over the past fifteen years [4] - Industry experts view the combination of Nauticus' technology and SeaTrepid's expertise as a breakthrough for the offshore sector [4] Transaction Details - The acquisition is expected to be completed in May 2025, subject to customary closing conditions, including creditor consent [3]

Company Overview - Nauticus Robotics, Inc. is a leader in autonomous subsea robotics and software, focusing on developing robots for ocean industries [2] - The company utilizes sensors, artificial intelligence, and algorithms to enable robots to adapt to changing environments [2] - Nauticus' business model includes providing robotic systems for services, selling vehicles and components, and licensing software to commercial and defense sectors [2] Recent Developments - On February 18, 2025, Nauticus received confirmation from Nasdaq that it has complied with the equity requirement under Rule 5550(b)(1), ensuring its continued listing on the exchange [1] - The CEO, John Gibson, expressed satisfaction with the company's return to compliance and emphasized a focus on business growth [2] Product and Service Offerings - Nauticus is testing and certifying a new generation of vehicles aimed at reducing operational costs and gathering data for subsea infrastructure maintenance [2] - The company offers services that include data collection, analytics, and subsea manipulation, which help clients maintain assets while minimizing operational footprints and greenhouse gas emissions [2]

Core Insights - Nauticus Robotics, Inc. has completed the assembly of its second flagship underwater vehicle, Aquanaut Mark 2, and is progressing through acceptance testing phases [1][2] Company Overview - Nauticus Robotics specializes in developing autonomous robots for ocean industries, utilizing sensors, artificial intelligence, and algorithms for effective decision-making in changing environments [3] - The company's business model includes providing robotic systems for services, selling vehicles and components, and licensing software to both commercial and defense sectors [3] - Nauticus aims to reduce operational costs and enhance data collection for subsea infrastructure maintenance through its new generation of vehicles [3] Testing and Development - The Aquanaut Mark 2 vehicle has completed assembly and initial testing in Houston, with further testing currently taking place in Louisiana [2] - The vehicle is expected to complete pool testing within the month and will then proceed to open water testing off the southern coast of the United States [2] - Nauticus targets to finish all acceptance testing for the Aquanaut Mark 2 by the end of the first quarter of 2025 [2]

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]

Financial Data and Key Metrics - Revenue for Q3 2024 was $0.4 million, down $0.1 million from Q2 2024 and $1.2 million from the same period last year [23] - Operating expenses for Q3 2024 were $5.9 million, a $3.9 million improvement from Q3 2023 and a $0.6 million sequential improvement [23] - G&A costs for Q3 2024 were $2.8 million, a $3.9 million improvement compared to Q3 2023 and a $0.4 million sequential improvement [23] - Net loss for Q3 2024 was $11.4 million, a $6.3 million reduction from Q3 2023 and a $6 million increase sequentially [24] - Adjusted net loss for Q3 2024 was $11.4 million compared to $9 million for Q2 2024 and $8.1 million in Q3 2023 [24] - Cash at the end of Q3 2024 was $2.9 million compared to $0.7 million at the end of 2023 [25] Business Line Data and Key Metrics - The Aquanaut vehicle successfully completed its first commercial project in Q3 2024, marking a significant milestone for the company [8][12] - The Aquanaut vehicle provided high-quality data on subsea assets at depths up to 1,000 meters, exceeding customer expectations [13] - The company is working on technical modifications to allow year-round operations in the Gulf of Mexico and is exploring opportunities in South America to mitigate seasonality [10][14] - The second Aquanaut vehicle is expected to complete factory acceptance testing in Q4 2024 and be available for commercial service in Q1 2025 [15] - The ToolKITT software platform performed reliably during operations in the Gulf of Mexico, with a commercial release planned for 2025 [18] Market Data and Key Metrics - The company is focused on building a pipeline for the 2025 Gulf season and is actively working to eliminate seasonality in its business [10] - Customers are expanding their scope of work to include the unique capabilities of the Aquanaut vehicle, leading to commercial discussions for the 2025 season [10] - The company is in discussions with South American customers to mitigate Northern Hemisphere seasonality [10] Company Strategy and Industry Competition - The company is focused on leveraging the success of its first commercial projects to create a business backlog for 2025, consisting of both commercial and defense work [8] - The company is working on developing technology that provides an attractive return on investment to shareholders and customers [15] - The company's deepwater autonomous software capabilities surpass those of competitors, paving the way for commercial licenses in 2025 [29] Management Commentary on Operating Environment and Future Outlook - The company is confident that the steps being taken will allow it to regain compliance with NASDAQ's listing requirements by the end of 2024 [21] - The company is focused on securing the cash needed through the end of 2025 as it ramps up commercialization [22] - The company is negotiating day rate contracts that could surpass the total revenue produced in Q3 2024 in a single week [28] Other Important Information - The company completed a 36:1 reverse split on July 22, 2024, and all references to equity and related items are stated on a post-split basis [21] - The company has entered into an agreement with investors to exchange $27 million of principal, $3 million of interest, and $3 million of additional liabilities into preferred convertible stock [21] - The company closed $1.1 million of funding as the first tranche of up to $21.1 million available through a new convertible debenture [22] Summary of Q&A Session - No questions were asked during the Q&A session [30][32]