Crown(US:CRKN)2024-08-14 17:44Financial Data and Key Metrics - Revenue for Q2 2024 was $4.6 million, a six-fold increase compared to Q1 2024 [21] - Revenue for the six months ended June 30, 2024, was $5.3 million, compared to $0.1 million for the same period in 2023 [21] - Operating losses for Q2 2024 were $4.9 million, in line with Q2 2023 [23] - Net losses for Q2 2024 were $5 million, compared to $4.5 million in Q1 2023 [23] - Net cash increased by $2.9 million to $4 million for the six months ended June 30, 2024 [23] Business Line Data and Key Metrics ElectroKinetics Film Division - The film division achieved a technical milestone by solving the 12-inch mastering challenge for its Gen 1 Alpha smart window insert product [5] - Limited quantities of the Gen 1 Alpha product are expected to ship by the end of 2024 [5][7] - The division is working on converting the technical breakthrough into manufacturing capability, with production expected to begin in the coming months [8] Fiber Optics Division - The fiber optics division generated $4 million in revenue for Q2 2024, compared to $23,000 in Q2 2023 [21] - The division has projects in Idaho, Nevada, Oregon, and Mexico, with a significant pipeline of revenue-generating projects [14][15] - A large backbone project in Nevada is expected to generate $5.7 million in revenue, with additional stages awarded in July 2024 [15] - The Twin Dolphin Club project in Mexico is expected to generate $3.5 million in revenue and conclude in early fall 2024 [17] New Divisions: Element 82 and PE Pipelines - Element 82 focuses on lead pipe inspection, while PE Pipelines focuses on lead pipe remediation [18] - The U.S. EPA estimates there are 9.2 million lead pipes carrying drinking water, with potential numbers as high as 12.8 million [18] - Element 82 has commenced projects in New York, Virginia, and Florida, with announcements expected regarding purchase orders and revenue targets [20] Market Data and Key Metrics - The fiber optics division is leveraging a new operating model that includes a limited number of employees and third-party subcontractors, allowing for cost control and margin locking [14] - The division's new approach to plant well construction is expected to lead to new revenue opportunities in Mexico, Central America, and the Caribbean [17] Company Strategy and Industry Competition - The company has expanded its scope of services to include lead pipe inspection and remediation, complementing its existing divisions [4] - The company has attracted top talent across all divisions to drive growth and profitability [5] - The fiber optics division has shifted to a more efficient operating model, focusing on cash flow positivity from Day 1 of projects [14] - The company is leveraging its technical expertise and customer relationships to gain a competitive advantage in the lead pipe inspection and remediation market [20] Management Commentary on Operating Environment and Future Outlook - The company is optimistic about the Gen 1 Alpha launch in Q4 2024 and expects strong growth in utility construction [12][24] - Management believes 2025 will be a watershed year for revenue and EBITDA generation [24] - The company projects Q3 2024 revenues to be in line with previous guidance of $8 million [23] Other Important Information - The company has achieved NASDAQ compliance as of July 25, 2024 [20] - R&D expenses increased by $0.6 million in Q2 2024, primarily due to the addition of new film leadership [22] - G&A expenses decreased by $0.1 million in Q2 2024, driven by a reduction in professional fees [22] Q&A Session - No Q&A session was held during the call [25]