Crown(US:CRKN)2022-08-15 22:32Financial Data and Key Metrics Changes - The company's net loss for Q2 2022 was $4.5 million, which is $0.9 million lower than the $5.4 million recorded in Q2 2021 [22] - Total operating expenses for Q2 2022 were $4.5 million, including $1.5 million of non-cash stock-based compensation, $1.8 million for payroll and consulting, $0.5 million for professional fees, and $0.6 million of operating overhead [23] - Cash deployed for operations and investments in Q2 was $2.6 million, which is $1 million lower than the $3.6 million in Q1 2022 [24] Business Line Data and Key Metrics Changes - The company received two purchase orders for its Smart Window Inserts from Hudson Pacific Properties, marking a critical milestone in its evolution [11] - The Smart Window Insert is positioned as the only smart glass retrofit product in the market, aimed at reducing HVAC energy consumption and carbon emissions [10] Market Data and Key Metrics Changes - Legislative initiatives, such as the Inflation Reduction Act and New York City's Local Law 97, are compelling REITs to upgrade their building envelopes, creating a favorable market environment for the company's products [12][13] - The company is assessing new retrofit locations with prospective REIT customers, indicating a growing sales pipeline [13] Company Strategy and Development Direction - The company's mission is to provide an affordable smart glass solution to the commercial real estate market, focusing on energy efficiency and carbon emission reduction [8] - The company is actively working to become a key ESG supplier to U.S.-based office buildings, helping them retrofit legacy infrastructure [11] - Future product development includes a second-generation Smart Window Insert with enhanced features and capabilities [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about closing debt financing soon and starting production of the first generation of Smart Window Inserts [22] - The company is confident in its ability to meet demand and is positioned well in the market due to legislative support and the urgency of REITs to comply with energy regulations [40] Other Important Information - The company successfully closed equity raises totaling $2.1 million, which are necessary for accessing debt financing [14][15] - The independent IP valuation indicated a fair market value of approximately $94 million for the company's combined patents and trade secrets [16] Q&A Session Summary Question: Are there two different lenders for the second term sheet? - Yes, there are two different lenders with competing term sheets [27] Question: What is the status of the due diligence process from the lenders? - The due diligence process includes standard management presentations and discussions with the vendor [30] Question: How long will it take to get funded after the debt is closed? - Funding is expected within thirty days, followed by a design phase and manufacturing process that could take up to a year [31] Question: What is the status of the first generation production line? - There is a delay due to a material component from the UK, expected to take an additional four to eight weeks [33] Question: Are there other purchase orders expected from REITs? - The company is working on securing additional purchase orders and expects to announce new customers soon [35][40]