Nauticus Robotics Tests Aquanaut Mk2 Vehicle, Announces 2023 Results
PR Newswire
HOUSTON, April 9, 2024
HOUSTON, April 9, 2024 /PRNewswire/ -- Nauticus Robotics, Inc. ("Nauticus" or the "Company") (NASDAQ: KITT) today announced preliminary testing results for its Aquanaut Mk2 vehicle and financial results for the quarter and year ended December 31, 2023.
"We have spent the past few months transforming Nauticus from a company with great R&D capabilities to one poised to be commercially successful, " said John W. Gibson, Jr., Nauticus' CEO and President. "We successfully raised additional capital, reorganized our operations, materially reduced expected G&A costs, and initiated sea trials for our Aquanaut Mk2 vehicle in the Gulf of Mexico. These sea trials include not just depth, but maneuverability, emergency procedures, launch and recovery, and are milestone events in Nauticus' vision. Our team has successfully tested to a depth of greater than 1,200 meters. We've gone from promise to product. The next generation of subsea vehicle is now in the water."
Operational Highlights
-- Product Structure: The Company has reorganized its personnel and
operations to focus on its four main products: Autonomous Solutions,
Government Solutions, Olympic Arms and toolKITT software. Each of these
product groups has a dedicated leader and team focused on
revenue-producing opportunities.
-- Aquanaut Testing: Nauticus' Aquanaut Mk2 vehicle exceeded expectations
during its initial tests in the Gulf of Mexico, including launch and
recovery, emergency procedures, and maneuverability. A video of part of
the tests is available on the Company's YouTube channel at
https://youtu.be/GyPD1E-vqHA.
-- Facility Consolidation: The Company brought assembly and maintenance
in-house, eliminating external vendors in Canada and other countries. In
the first quarter of 2024, Nauticus negotiated an exit to redundant
office space in Houston and continues to work on subleasing or otherwise
eliminating space in other locations as well.
-- Customer Focus: Nauticus continued engagement with its early adopter
customers. Nauticus also engaged Jorge Machnizh, a seasoned sales and
business development leader. Jorge's experience includes software and
service sales in deepwater markets.
-- Cost Alignment: The Company took steps to bring its G&A and other costs
more closely in line with other companies of its size and operational
history.
-- Defense Contracts: Nauticus completed DIU contracts during the fourth
quarter of 2023 and first quarter of 2024, and certificates of successful
completion are expected.
Financial Results
-- Revenue: Nauticus reported fourth quarter revenue of $1.1 million and
full year revenue of $6.6 million, compared to $3.2 million and $11.4
million for the prior-year periods.
-- Operating Expenses: Total expenses during the fourth quarter were $35.3
million, a $24.9 million increase from the prior-year period. Expenses
for the year were $61.7 million, a $31.2 million increase from 2022.
-- Impairment Charges: In the fourth quarter of 2023, Nauticus reported an
impairment charge for property plant and equipment of $25.3 million
compared to $0 in 2022.
-- Net Loss: For the fourth quarter, Nauticus recorded a net loss of $39.5
million, or $1.23 per diluted share. This compares with $8.2 million from
the same period in 2022. Full year 2023 net loss was $50.7 million
compared to $33.2 million for full year 2022.
-- Adjusted Net Loss: Nauticus reported adjusted net loss of $8.8 million
for the fourth quarter, and $34.4 million for 2023 compared to $5.7
million and $15.7 million for the same period in 2022. Adjusted net loss
is a non-GAAP measure which excludes the impact of certain items, as
shown in the non-GAAP reconciliation table below.
-- 2024 G&A Cost: Nauticus is expecting to reduce G&A costs from $18.2
million in 2023 to $8.3 million in 2024.
Balance Sheet and Liquidity
-- As of December 31, 2023, the Company had cash and cash equivalents of
$0.8 million, compared to $17.8 million as of December 31, 2022.
-- In the fourth quarter of 2023 and first quarter of 2024, the Company
successfully worked with its private investors to restructure its private
warrants, eliminating the overhang from the ratcheting conversion
mechanism, and add additional financing of $0.7 million.
-- In Q1, the Company closed additional financing of $13.3 million to
provide liquidity needed for operations and testing.
-- During the fourth quarter, the Company classified $2.9 million as assets
held for sale, offset by a liability of $1.2 million.
Leadership Updates
Nauticus also brought in an experienced leadership team in the fourth quarter of 2023 to guide the Company to the next stage of commercial development:
-- John Gibson, an established executive and CEO with 30+ years of energy,
technology and public company experience, joined as President in the
fourth quarter of 2023 and was named CEO in the first quarter of 2024;
-- Victoria Hay, a seasoned finance and accounting executive who has worked
with Nauticus for over a year as a consultant, expanded her role in the
fourth quarter of 2023 to include CFO on an interim basis;
-- Nick Bigney, a legal executive with experience as general counsel of both
public and private companies in the energy and technology space, joined
as General Counsel in the fourth quarter of 2023.
Mr. Gibson, Mrs. Hay and Mr. Bigney join the Company's longstanding Chief Technology Officer, JD Yamokoski, to form the Company's executive team.
Conference Call Details
Nauticus will host a conference call on April 10, 2024 at 10:00 a.m. Central Daylight Time (11:00 a.m. EDT) to discuss its results for the quarter and year ended December 31, 2023. To participate in the earnings conference call, participants should access the webcast at https://events.q4inc.com/attendee/275183074, or by dialing toll free 800-267-6316, conference ID: KITT. A link to the webcast will also be available on the Company's website . Following the conclusion of the call, a recording will be available on the Company's website.
About Nauticus Robotics
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 a new generation of vehicles to reduce operational cost and gather data to maintain and operate a wide variety of subsea infrastructure. Besides a standalone service offering and forward-facing products, Nauticus' approach to ocean robotics has also resulted in the development of a range of technology products for retrofit/upgrading traditional ROV operations and other third-party vehicle platforms. Nauticus' services provide customers with the necessary data collection, analytics, and subsea manipulation capabilities to support and maintain assets while reducing their operational footprint, operating cost, and greenhouse gas emissions, to improve offshore health, safety, and environmental exposure.
Cautionary Language Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Act"), and are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Act as well as protections afforded by other federal securities laws. Such forward-looking statements include but are not limited to: the expected timing of product commercialization or new product releases; customer interest in Nauticus' products; estimated operating results and use of cash; and Nauticus' use of and needs for capital. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. These statements may be preceded by, followed by, or include the words "believes," "estimates," "expects," "projects," "forecasts," "may," "will," "should," "seeks," "plans," "scheduled," "anticipates," "intends," or "continue" or similar expressions. Forward-looking statements inherently involve risks and uncertainties that may cause actual events, results, or performance to differ materially from those indicated by such statements. These forward-looking statements are based on Nauticus' management's current expectations and beliefs, as well as a number of assumptions concerning future events. There can be no assurance that the events, results, or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and Nauticus is not under any obligation and expressly disclaims any obligation, to update, alter, or otherwise revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports which Nauticus has filed or will file from time to time with the Securities and Exchange Commission (the "SEC") for a more complete discussion of the risks and uncertainties facing the Company and that could cause actual outcomes to be materially different from those indicated in the forward-looking statements made by the Company, in particular the sections entitled "Risk
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