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]

Core Insights - Nauticus Robotics, Inc. reported financial results for Q3 2024, achieving commercial revenue with its Aquanaut Mark 2 and focusing on building a pipeline for 2025 [2][3]. Financial Performance - Revenue for Q3 2024 was $0.4 million, a decrease from $1.6 million in Q3 2023 and $0.5 million in Q2 2024 [7]. - Operating expenses totaled $5.9 million, down $3.9 million from the prior-year period and $0.6 million from Q2 2024 [7]. - The net loss for Q3 2024 was $11.4 million, or a basic loss per share of $4.24, compared to a net loss of $17.7 million in Q3 2023 [8][22]. Adjusted Financial Metrics - Adjusted net loss for Q3 2024 was $11.4 million, compared to $8.1 million in Q3 2023 [9]. - General and administrative costs for Q3 2024 were $2.8 million, a decrease of $3.9 million from the same period in 2023 [9]. Balance Sheet and Liquidity - As of September 30, 2024, cash and cash equivalents were $2.9 million, up from $0.8 million at the end of 2023 [10]. - The company raised over $1 million through convertible debentures and has the option to access an additional $20 million, enhancing its financial position [3]. Operational Highlights - The Aquanaut Mark 2 completed deepwater qualification trials and began commercial operations in the Gulf of Mexico, with strong customer interest for 2025 projects [4]. - Aquanaut Vehicle 1's deepwater electronics upgrades are complete, with final assembly expected by the end of the year [5]. - ToolKITT software performed reliably, with ongoing discussions for third-party platform integration and plans to sell its first commercial license in 2025 [6].

Financial Performance - Total revenue for the nine months ended September 30, 2024, was $1,593,854, a decrease from $5,542,749 for the same period in 2023[14] - Operating loss for the nine months ended September 30, 2024, was $(17,131,765), compared to $(20,891,533) for the same period in 2023, indicating an improvement[14] - Net loss for the nine months ended September 30, 2024, was $(16,316,664), compared to $(11,144,012) for the same period in 2023[14] - Basic loss per share for the nine months ended September 30, 2024, was $(8.54), compared to $(9.92) for the same period in 2023[14] - Total costs and expenses for the nine months ended September 30, 2024, were $18,468,014, compared to $26,434,282 for the same period in 2023[14] - Total revenue for the three months ended September 30, 2024, was $370,187, a decrease of 76.8% compared to $1,593,854 for the same period in 2023[65] - For the three months ended September 30, 2024, total revenue decreased by $1,223,667 or 77% compared to the same period in 2023, primarily due to a reduction in government-related contracts[183] - For the nine months ended September 30, 2024, total revenue decreased by $4,206,500 or 76% compared to the same period in 2023, driven by similar factors[183] Cash and Liquidity - Cash and cash equivalents increased to $2,915,757 as of September 30, 2024, from $753,398 as of December 31, 2023[13] - Cash and cash equivalents at the end of the period on September 30, 2024, were $2,915,757, down from $6,771,531 at the end of the same period in 2023[23] - The company reported a net cash used in operating activities of $(20,128,427) for the nine months ended September 30, 2024, compared to $(16,626,631) in the prior year[23] - The company received net proceeds of $22,346,163 from debt and equity financing during the nine months ended September 30, 2024[193] - The company may require additional liquidity to continue operations over the next twelve months, with a current investor committed to provide support[192] Assets and Liabilities - Total current liabilities decreased to $13,135,564 as of September 30, 2024, from $17,387,236 as of December 31, 2023[13] - Total assets decreased to $24,987,925 as of September 30, 2024, from $26,148,475 as of December 31, 2023[13] - Total liabilities decreased to $61,493,781 as of September 30, 2024, from $67,935,325 as of December 31, 2023[13] - Total stockholders' equity (deficit) as of September 30, 2024, was $(36,505,856), a decrease from $(2,676,314) as of September 30, 2023[21] - The accumulated deficit as of September 30, 2024, was $(135,108,367), an increase from $(79,249,114) as of September 30, 2023[21] Expenses - Research and development expenses were $64,103 for the nine months ended September 30, 2024, down from $984,882 for the same period in 2023[14] - The company reported a significant increase in depreciation expenses, totaling $1,283,858 for the nine months ended September 30, 2024, compared to $487,052 in the prior year[23] - Stock-based compensation for the nine months ended September 30, 2024, was $1,872,504, a decrease from $3,995,020 in the same period of 2023[23] - General and administrative costs decreased by $3,858,934 or 58% for the three months ended September 30, 2024, compared to the same period in 2023, due to headcount reductions[187] - Research and development costs decreased by $275,154 or 100% for the three months ended September 30, 2024, compared to the same period in 2023, as the company achieved technological feasibility[186] Debt and Financing - The company raised $14,305,000 from notes payable and $9,857,857 from an At-the-Market (ATM) offering during the nine months ended September 30, 2024[23] - As of September 30, 2024, total notes payable amounted to $58,438,574, an increase of 19.5% from $48,825,320 on December 31, 2023[79] - The company issued convertible secured debentures with a principal amount of $36,530,320, generating gross proceeds of $35,800,000, with a debt discount totaling $21,679,716[80] - The effective interest rate on the debentures was approximately 25.2% as of September 30, 2024[87] - The company entered into a 2023 Term Loan Agreement providing up to $20 million in secured term loans, with an initial funding of $11,600,000[90][91] - The 2023 Term Loan Agreement includes a 2.5% exit fee of $290,000 and bears interest at 12.5% per annum, payable quarterly[91] Internal Controls and Compliance - As of September 30, 2024, the company concluded that its disclosure controls and procedures were not effective due to a material weakness in internal control over financial reporting[197] - The previously identified material weakness relates to a lack of qualified accounting personnel and inadequate procedures for the accounting close process, affecting timely financial statement preparation[199] - Remediation initiatives include hiring additional experienced accounting personnel and modifying a new Enterprise Resource Planning (ERP) System to automate processes and enhance compliance[200] - The company plans to document system controls, conduct user access reviews, and develop policies for internal control over financial reporting as part of its remediation plan[202] - The significant turnover of key finance personnel at the end of 2023 has created a gap in the implementation of remediation initiatives[200] Business Operations - Nauticus Robotics, Inc. does not generate sufficient revenue to cover operating expenses, working capital, and capital expenditures, necessitating cost-cutting measures and potential additional liquidity support from investors[27] - Nauticus Robotics is currently testing and certifying a new generation of vehicles aimed at reducing operational costs and improving data collection for subsea infrastructure[1] - The company’s business model includes providing robotic systems for service, selling vehicles and components, and licensing related software to commercial and government sectors[1] - Major customers accounted for 100% of total revenue during the three and nine months ended September 30, 2024, indicating a high concentration of credit risk[59] Stock and Equity - A 1-for-36 reverse stock split resulted in 150,107,598 shares being converted into 4,169,679 shares[116] - The Company issued 50,631,263 shares under an At The Market Offering Agreement for gross proceeds of $9,857,857[123] - The Company entered into a Securities Purchase Agreement to sell shares at a price of $2 per share, resetting conversion prices under existing warrants and debentures[124] - The company has 8,624,991 Public Warrants outstanding, exercisable at $11.50 per share, with an expiration date of September 9, 2027[128] - The company assumed 7,175,000 Private Warrants, which are not publicly traded, also exercisable at $11.50 per share[132]

Core Viewpoint - Nauticus Robotics, Inc. has entered into an agreement to convert $33 million of debt into equity through a preferred stock exchange, aiming to significantly reduce its leverage and resolve NASDAQ compliance issues [1] Company Overview - Nauticus Robotics, Inc. specializes in developing autonomous robots for ocean industries, utilizing sensors, artificial intelligence, and algorithms for adaptability in changing environments [2] - The company's business model includes providing robotic systems for services, selling vehicles and components, and licensing software to both commercial and defense sectors [2] - Nauticus is testing a new generation of vehicles designed to lower operational costs and gather data for maintaining various subsea infrastructures [2] - The company also offers technology products for retrofitting traditional ROV operations and third-party vehicle platforms, enhancing data collection, analytics, and subsea manipulation capabilities [2] - Nauticus aims to reduce operational footprints, costs, and greenhouse gas emissions while improving offshore health, safety, and environmental exposure [2]

HOUSTON, Oct. 30, 2024 /PRNewswire/ -- Nauticus Robotics, Inc. ("Nauticus" or the "Company") (NASDAQ: KITT) today announced the Company's schedule for releasing its third quarter financial and operating results for the period ended September 30, 2024. The Company plans to release its third quarter financial and operating results after market close on November 12, 2024. The Company plans to host an earnings conference call on November 13, 2024 at 10:00 am Central Standard Time. To participate in the earnings ...

HOUSTON, Sept. 30, 2024 /PRNewswire/ -- Nauticus Robotics, Inc. (NASDAQ: KITT), a leading innovator in autonomous subsea robotics and software, is pleased to announce completion of qualification testing of its flagship underwater vehicle, Aquanaut Mark 2. The Aquanaut used for testing, Vehicle 2, is now performing commercial inspection work at a production field in the Gulf of Mexico (GOM). This transition from qualification to commercial operations marks a major milestone for the company. Nauticus' Autonom ...

Core Points - Nauticus Robotics Inc. has received an extension from Nasdaq until December 31, 2024, to regain compliance with listing standards [1][2] - The company presented a detailed compliance plan during a Nasdaq Hearings Panel meeting on September 5, 2024 [2] - Nauticus will continue to work on its compliance plan and will disclose actions taken to achieve compliance once fully executed [3] Company Overview - Nauticus Robotics develops autonomous robots for ocean industries, utilizing sensors, artificial intelligence, and algorithms for adaptability [4] - The business model includes providing robotic systems for services, selling vehicles and components, and licensing software to commercial and defense sectors [4] - The company is testing a new generation of vehicles aimed at reducing operational costs and maintaining subsea infrastructure [4] - Nauticus' services focus on data collection, analytics, and subsea manipulation to support asset maintenance while minimizing operational footprint and greenhouse gas emissions [4]

HOUSTON, Sept. 17, 2024 /PRNewswire/ -- Nauticus Robotics, Inc. (NASDAQ: KITT), a leading innovator in autonomous subsea robotics and software, began its second round of qualification testing of its flagship underwater vehicle, Aquanaut Mark 2, in the Gulf of Mexico (GOM). Vehicle 2 will be used for commercial operations going forward. Completion of this testing is intended to certify the vehicle for water depths exceeding 2000 meters. Nauticus' Autonomous Solutions team is conducting tests off the coast of ...

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 ...