Nauticus Robotics, Inc. (NASDAQ:KITT) Q2 2024 Earnings Conference Call August 14, 2024 11:00 AM ET Company Participants Kristin Moorman - Special Projects Leader John Gibson - CEO and President Daniel Dehart - Field Operations Leader Victoria Hay - Interim CFO Nicholas Bigney - Outgoing General Counsel Jason Close - VP of Autonomous Software Solutions Conference Call Participants Operator Good day, everyone, and welcome to today's Nauticus Robotics 2024 Q2 Earnings call. [Operator Instructions] Please note, ...

Exhibit 99.1 Nauticus Robotics Announces Results for the Second Quarter of 2024 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 ...

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 f ...

Revenue and Financial Performance - Total revenue for Q2 2024 was $501,708, a significant decrease from $1,128,115 in Q2 2023[11] - Net loss for Q2 2024 was $(5,373,320), compared to a net income of $20,673,440 in Q2 2023[11] - Net loss for the six months ended June 30, 2024, was $4.96 million, compared to a net income of $6.53 million in the same period in 2023[17] - Revenue decreased by 56% to $501,708 for the three months ended June 30, 2024, and by 76% to $966,062 for the six months ended June 30, 2024, primarily due to a reduction in government-related contracts[144] - Revenue from cost-plus fixed fee contracts for the six months ended June 30, 2024, was $214,414, compared to $2,577,168 for the same period in 2023[53] - Sales to three customers accounted for 100% of total revenue for the six months ended June 30, 2024, with 83% of accounts receivable due from these customers[49] Operating Loss and Expenses - Operating loss for Q2 2024 was $(6,012,560), compared to $(6,869,022) in Q2 2023[11] - Total costs and expenses for Q2 2024 were $6,514,268, down from $7,997,137 in Q2 2023[11] - Research and development expenses for Q2 2024 were $0, compared to $482,761 in Q2 2023[11] - General and administrative expenses for Q2 2024 were $3,227,288, down from $5,560,565 in Q2 2023[11] - Research and development costs decreased by 100% to $0 for the three months ended June 30, 2024, and by 91% to $63,534 for the six months ended June 30, 2024, as the company achieved technological feasibility and focused on bringing products to market[146] - General and administrative costs decreased by 42% to $3,227,288 for the three months ended June 30, 2024, and by 38% to $6,657,298 for the six months ended June 30, 2024, driven by headcount reductions and cost-cutting efforts[147] - Cost of revenue increased by 51% to $2,875,394 for the three months ended June 30, 2024, driven by costs related to testing the Aquanaut vehicle[145] - Depreciation increased by 674% to $411,586 for the three months ended June 30, 2024, and by 157% to $837,771 for the six months ended June 30, 2024, due to an increase in property and equipment[145] Earnings Per Share - Basic earnings per share for Q2 2024 was $(2.75), compared to $18.62 in Q2 2023[11] - Diluted earnings per share for Q2 2024 was $(2.75), compared to $17.70 in Q2 2023[11] - Net loss for the three months ended June 30, 2024, was $5,373,320, with a basic and diluted loss per share of $2.75[133] Cash Flow and Liquidity - Net cash used in operating activities for the six months ended June 30, 2024, was $15.05 million, compared to $13.01 million in the same period in 2023[17] - Net cash from financing activities for the six months ended June 30, 2024, was $22.35 million, primarily from proceeds of notes payable and ATM offering[17] - Cash and cash equivalents at the end of June 30, 2024, were $8.12 million, compared to $4.35 million at the end of June 30, 2023[17] - The company does not generate sufficient revenue to cover operating expenses, working capital, and capital expenditures[150] - The company has implemented cost-cutting measures to preserve cash and may require additional liquidity over the next twelve months[150] - A current investor has committed to providing additional liquidity to support the company's operations[150] - The company believes it has sufficient resources to continue as a going concern for at least one year from the date of the financial statements[150] - Cash used in operating activities was $15,051,198, with $3,314,573 allocated to increase working capital[151] - Proceeds from the sale of AHFS were $419,720, offset by capital expenditures of $351,942[151] Debt and Financing - Total notes payable increased to $61,586,011 as of June 30, 2024, from $48,825,320 as of December 31, 2023, driven by growth in convertible senior secured term loans[63] - The company issued $36,530,320 in convertible secured debentures on September 9, 2022, with a 2% original issue discount and 2,922,425 associated warrants[65] - On January 30, 2024, the company exchanged $29,591,600 in senior secured convertible debentures with ATW I, $5,102,000 with MIF, and $1,836,720 with SLS[67] - Debt discount amortization included in interest expense was $2,072,903 for the three months ended June 30, 2024, and $3,222,575 for the six months ended June 30, 2024[70] - The 2023 Term Loan Agreement provided the company with up to $20 million in secured term loans, with an initial funding of $11,600,000[72] - The company entered into a First Amendment to the 2023 Term Loan Agreement, providing an incremental loan of $695,000, bringing the total loan funded under the Term Loan Agreement and First Amendment to $12,295,000 as of December 31, 2023[78] - The company secured a Second Amendment to the Term Loan Agreement, obtaining an incremental loan of $3,753,144 in January 2024[80] - The company entered into a 2024 Term Loan Agreement, securing $9,551,856 in term loans, with an option for an additional $6 million within 180 days of signing[82] - The 2024 Loans bear an interest rate of 15% per annum, payable quarterly, and are convertible into shares of Common Stock at a conversion price of $0.4582 per share[83][85] - The company entered into a May 2024 Amendment to the 2024 Term Loan Agreement, securing an additional $1,000,000 loan with terms similar to the ATW Extended Maturity Term Loan[86] - Interest expense for the convertible senior term loans includes $9,944 in debt discount amortization and $169,619 in amortization of debt issuance costs for the six months ended June 30, 2024[87] - Net interest expense for the three months ended June 30, 2024 increased by $2,112,826 or 136% due to interest on convertible senior secured term loans[149] - Net interest expense for the six months ended June 30, 2024 decreased by $368,869 or 6%, partially offset by increased interest expense from convertible senior secured term loans[149] Assets and Liabilities - The company has restricted certificates of deposit of $51,223 as of June 30, 2024, related to a guarantee against corporate credit cards[28] - The company's accounts receivable and contract assets are recorded at the invoiced amount, with an allowance for credit losses estimated based on historical losses and current conditions[30] - Inventories as of June 30, 2024, totaled $2,217,507, with raw materials at $897,902 and work in progress at $1,319,605[39] - Accounts receivable, net as of June 30, 2024, totaled $176,458, with no allowances for doubtful accounts[54] - Contract liabilities decreased to $457,872 at June 30, 2024, from $2,767,913 at December 31, 2023, primarily due to costs incurred on a loss-making contract[55] - Prepaid expenses and other current assets totaled $1,283,088 and $490,419, respectively, as of June 30, 2024[58] - Property and equipment increased to $10,128,832 as of June 30, 2024, up from $8,610,765 as of December 31, 2023, driven by growth in property & equipment and technology hardware equipment[59] - Total accrued liabilities decreased to $5,212,935 as of June 30, 2024, from $7,339,099 as of December 31, 2023, primarily due to reductions in accrued compensation, severance, and professional fees[61] - The company agreed to a $657,000 settlement for exiting an office lease, to be paid over 8 months starting April 2024[62] - Total lease payments as of June 30, 2024 amount to $1,682,630, with a present value discount of $226,007, resulting in operating lease liabilities of $1,456,623[94] Stock and Warrants - The company effected a 1-for-36 reverse stock split on July 22, 2024, converting 150,107,598 shares into 4,169,679 shares[97] - ATW I converted secured debentures with a principal value of $2,194,231 and interest of $43,167 into 628,942 shares of Common Stock post-reverse stock split in Q2 2024[100] - The company issued 1,406,424 shares of Common Stock post-reverse stock split under an ATM offering, raising gross proceeds of $9,857,857 and net proceeds of $9,357,954 in Q2 2024[100] - Earnout Shares totaling 208,333 (post-reverse stock split) remain in escrow as of June 30, 2024, with triggering events not yet achieved[102][103] - Public Warrants valued at $258,750 as of June 30, 2024, with a gain in value of $192,338 for the six months ended June 30, 2024[108] - Private Warrants valued at $224,862 as of June 30, 2024, with a gain in value of $155,669 for the six months ended June 30, 2024[110] - The company issued 1,890,066 shares of Common Stock (pre-reverse stock split) as payment for liquidated damages and interest of $4,320,690 in Q3 2023[114] - The company may redeem Public Warrants at $0.01 per warrant if the reported last sale price of Common Stock equals or exceeds $16.50 per share for 20 trading days within a 30-day trading period[106] - The company amended the exercise price of Original SPA Warrants to a weighted average of $3.28 per share, with tranches priced between $2.04 and $4.64 per share, covering 2,922,425 shares of Common Stock pre Reverse Stock Split[116] - ATW I exercised 165,713 Amended SPA Warrants, resulting in 165,713 shares of Common Stock (4,603 post Reverse Stock Split) and 165,713 New SPA Warrants issued, with proceeds of $338,055 received by the company[117] - The company reset the exercise price of SPA Warrants from $20.00 to $6.00 per share, increasing the number of warrants to 552,377 pre Reverse Stock Split[118] - ATW I exercised 5,700,000 SPA Warrants pre Reverse Stock Split (158,334 post Reverse Stock Split) in March 2024 and 16,461,186 SPA Warrants pre Reverse Stock Split (457,255 post Reverse Stock Split) in Q2 2024, with no cash received by the company[120] - The fair value of SPA Warrants was $709,081 as of June 30, 2024, and $17,544,561 as of December 31, 2023, with a gain of $4,441,987 for the three months ended June 30, 2024[122] - Total stock-based compensation expense for the three and six months ended June 30, 2024, was $809,310 and $1,862,164, respectively[123] - The company's 401(k) plan cost was $48,261 for the three months ended June 30, 2024, and $103,265 for the six months ended June 30, 2024[124] - ATW I converted secured debentures with a principal value of $2,194,231 and interest of $43,167 into 22,641,909 shares pre Reverse Stock Split (628,942 post Reverse Stock Split) in Q2 2024[126] - The company entered into a New Debenture with ATW I for an aggregate principal amount of $29,591,600, and similar agreements with MIF and SLS Family Irrevocable Trust for $5,102,000 and $1,836,720, respectively[127] Leases and Real Estate - The company extended its office and manufacturing facility lease for an additional 3 years in March 2024, using an incremental borrowing rate of 8% to determine the present value of lease payments[89] - The company exited a lease for office space in March 2024, agreeing to a settlement figure of $657,000 and removing the related right-of-use asset and lease liability from the consolidated balance sheet[90] - The company reported a gain on lease termination of $23,897 for the six months ended June 30, 2024, related to reducing the size of office space leased in Norway[91] - Total operating lease expense for the six months ended June 30, 2024, was $473,713, with cash paid for operating leases amounting to $245,558[92] - The company reported a gain on lease termination of $8,532 for the three months ended June 30, 2024, and $23,897 for the six months ended June 30, 2024, due to reduced leased office space in Norway[148] Technology and Products - The company continues to develop its principal products and conduct R&D activities, but does not generate sufficient revenue to cover operating expenses, working capital, and capital expenditures[22] - Revenue is primarily generated from providing technology, engineering services, and products to the offshore industry and governmental entities, with no product sales for the six months ended June 30, 2024[34] - The company's robotic systems and services are designed to reduce operational costs, gather data, and maintain subsea infrastructure, targeting both commercial and government sectors[21] - The company's Aquanaut vehicle operates in both AUV and ROV modes, with unique underwater acoustic communication technology called Wavelink, which eliminates the need for long umbilical cables[141] - The company's key technologies include autonomous platforms, acoustic communications networks, electric manipulators, AI-based perception and control software, and high-definition workspace sensors[142] Other Income and Expenses - Total other income, net for Q2 2024 was $(639,240), compared to $(27,542,462) in Q2 2023[11] - The company recorded foreign currency transaction losses of $4,296 and $9,443 for the three and six months ended June 30, 2024, respectively[42] - The company reported no income tax expense for the six months ended June 30, 2024, and has a full valuation allowance against its deferred income tax assets[96] - The fair value of warrant liabilities showed a gain of $4,422,701 for the three months ended June 30, 2024, and $12,732,324 for the six months ended June 30, 2024[148] - The company's financial liabilities measured at fair value include Public, Private, and SPA Warrants, with total fair value of $1,192,693 as of June 30, 2024[137] Shareholder Equity and Stock Transactions - Basic weighted average shares outstanding for Q2 2024 were 1,950,563, up from 1,110,091 in Q2 2023[11] - The company capitalized interest totaling $536,077 during the six months ended June 30, 2023, with $219,531 related to inventory and $316,546 related to property and equipment[47] - The company divested $2,940,254 worth of property and equipment in 2023, including Hydronaut vessels and the Drix unmanned surface vessel, to enhance cash flow[59] - Hydronaut vessels 2 and 3 were sold on January 22, 2024, for $1,533,609, with $375,000 in cash received[59] - The company received net proceeds of $22,346,163 from debt and equity financing, including convertible secured term loans and an ATM share offering[151]

Nauticus Robotics (NASDAQ:KITT) stock is on the rise Friday after the ocean robots and cloud software development company announced a new testing partnership. This has Nauticus Robotics teaming up with Florida Atlantic University (FAU) for further testing of its Aquanaut Mark 2. This testing will happen near in the university's Institute for Ocean and Systems Engineering Dania Beach location and in the deeper Atlantic Ocean. Nauticus Robotics notes that FAU will handle full testing of the underwater craft i ...

HOUSTON, Aug. 8, 2024 /PRNewswire/ -- Nauticus Robotics, Inc. (NASDAQ: KITT), a leading innovator in subsea robotics and software, announces a partnership with Florida Atlantic University (FAU) for further testing of its flagship underwater vehicle, Aquanaut Mark 2. Nauticus has contracted with FAU to perform Aquanaut Mark 2 vehicle development testing in the protected waters near the university's Institute for Ocean and Systems Engineering Dania Beach facilities as well as in the deeper waters of the Atlan ...

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 ...

Nauticus Robotics will enact a one-for-36 reverse stock split for KITT shares after markets close on Monday. That will see it consolidate 36 shares of its common stock into a single share. Nauticus Robotics is enacting this reverse stock split to increase the price of its shares. This is due to its low trading price with KITT closing out Thursday at just 12 cents per share. Investors will want to stick around for more of the most recent stock market stories today! On Penny Stocks and Low-Volume Stocks:With ...

HOUSTON, July 18, 2024 /PRNewswire/ -- Nauticus Robotics, Inc. ("Nauticus" or the "Company") (NASDAQ: KITT) today announced that it will proceed with a 1-for-36 reverse stock split ("Reverse Split") of its outstanding shares of common stock (the "Common Stock") following approval by its Board of Directors. This ratio is within the range approved by stockholders at the annual meeting of the Company's shareholders held on June 17, 2024. Key Information About the Reverse Split What is a Reverse Split? A revers ...

Nauticus' Autonomous Solutions team has achieved a crucial victory by finalizing the engineering and proof-ofconcept documentation for the Aquanaut Mark 2 vehicle. This documentation details the advancements and capabilities of Aquanaut Mark 2, ensuring it meets the stringent requirements of 10 core functionalities essential for offshore deepwater field inspection and light maintenance tasks. The reports include a technical analysis of each required capability, Factory Acceptance Test results for each vehic ...