Nauticus Robotics, Inc. (“Nauticus” or the “Company”) (NASDAQ:
KITT), a developer of ocean robots, autonomy software, and services
to the marine industries, today announced results for its third
quarter ended September 30, 2022 and provided a business update.
Recent Operational and Financial
Highlights
- Completed a business combination
with CleanTech Acquisition Corp. (“CLAQ”) on September 9, 2022,
generating net proceeds of $58.7 million to fund the operations and
the initial buildout of Nauticus’ fleet of tandem ocean robots
- Entered into an agreement with
Shell to deploy a Nauticus Aquanaut and its autonomous behaviors
using remote operations and supervised autonomy
- Announced a multi-million-dollar
contract with the U.S. Defense Innovation Unit (“DIU”) for the
development of an unmanned amphibious system
- Disclosed a Department of
Defense-related development partnership with Leidos
- Grew revenues by 51% vs. the third
quarter of 2021
- As of September 30, 2022, Nauticus
held cash and equivalents of $35.9 million and maintained a net
working capital surplus of $43.6 million
“The third quarter of 2022 was filled with many
important milestones for the Company, including an agreement with
Shell for a field trial, a multi-million-dollar project with DIU
and the completion of our business combination with CLAQ to take
Nauticus public,” said Nic Radford, founder and CEO. “With a strong
shareholder base that includes world-class investors like
Schlumberger and Transocean, combined with an extensive list of
blue-chip customers evaluating and qualifying our technology, we
remain confident in our ability to make a real impact on the ocean
economy through the deployment of autonomous systems.”
“Our commercial pipeline continues to expand,
and we are now in active discussions with potential customers on
five different continents. While supply chain issues have impacted
the pace of Aquanaut and Hydronaut deployments, the demand for our
service remains robust. Our team is working diligently to mitigate
these impacts, and we expect to have our initial second-generation
commercial Aquanaut delivered in January 2023, with two additional
units following by mid-year. We are eager to deploy more Aquanauts
into the water for commissioning to fully demonstrate what we
believe is the most advanced and capable ocean robotics system in
the world. Our mission and market opportunity are clear, and we
look forward to providing future updates as we continue converting
our commercial pipeline into firm orders.”
Market OpportunityNauticus
operates in the $2.5 trillion marine economy, targeting the
emerging ocean robotics, services, and data markets that are an
estimated $30 billion total addressable market. The Company’s
autonomous platforms, acoustic communications networks, electric
manipulators, and perception and control software collectively
provide Nauticus a differentiated ability to substantially improve
the efficiency, safety, carbon footprint, and cost profile of the
offshore services market. Nauticus’ near-term focus is on the oil
& gas, offshore wind, and government & defense markets,
with tangible traction being gained in each market.
The market opportunity is attractive and growing
with significant offshore wind deployments and thousands of
offshore oil and gas trees with tens of thousands of flowlines and
pipes around the world, all needing recurring inspection, repairs,
and maintenance (“IRM”). For example, each gigawatt (“GW”) of
offshore wind capacity requires an estimated $22 million of annual
IRM. The United Kingdom alone has 12.7 GW of installed offshore
wind capacity that is growing by approximately 2.5 GW per year.
This translates to an annual $280 million market for Nauticus in
just the U.K.’s offshore wind market, equating to potential demand
for approximately 35 Aquanauts. By the end of the decade, demand
for Aquanauts from just U.K.’s offshore wind market could be double
that.
Financial Results Nauticus
reported third quarter revenue of $3.0 million, an increase of 51%
compared to the prior-year period. The increase in revenue is
primarily attributable to the addition of new defense contracts,
including the continued lease of an Aquanaut vehicle.
Total operating expenses during the third
quarter were $9.0 million, a $6.0 increase from the prior-year
period. Third quarter of 2022 operating expenses includes $3.5
million of expenses related to the Company’s business combination
with CLAQ. Other drivers of the year-over-year increase are
primarily related to higher costs of revenue and increased general
and administrative (“G&A”) costs. Included in the increased
G&A costs are employee salaries, sales and marketing, and
professional fees in order to scale the business further and manage
the additional responsibilities of a public company.
For the quarter, Nauticus recorded a net loss
attributable to common stockholders of $11.0 million, or a loss of
$0.67 per basic and diluted share. This compares to a net loss
attributable to common stockholders of $1.3 million, or a loss of
$0.13 per basic and diluted share in the prior year comparable
period.
Net loss attributable to common stockholders for
the third quarter of 2022 and 2021 includes certain items typically
excluded from published estimates by the investment community.
Adjusted net loss attributable to common stockholders, which
excludes the impact of these items as described in the non-GAAP
reconciliation table below, was $3.7 million, or $0.22 in the third
quarter of 2022, compared to a net loss of $1.3 million, or $0.13
per diluted share, in the third quarter of 2021.
Nauticus ended the third quarter of 2022 with
$35.9 million in cash and equivalents and a working capital surplus
of $43.6 million.
Conference Call and Webcast
InformationNauticus will host a conference call today,
November 14, 2022 at 12:00 p.m. Eastern time (9:00 a.m. Pacific
time). A question-and-answer session will follow management’s
presentation.
U.S. dial-in number: 1-877-407-9039International
number: 1-201-689-8470Conference ID: 13733447
The conference call will broadcast live and be
available for replay here.
A replay of the call will be available after
3:00 p.m. Eastern time today through November 28, 2022.
Toll-free replay number:
1-844-512-2921International replay number: 1-412-317-6671Conference
ID: 13733447
About NauticusNauticus
Robotics, Inc. is a developer of ocean robots, autonomy software,
and services delivered to the marine industries. Nauticus’ robotic
systems and services are delivered to commercial and
government-facing customers through a Robotics-as-a-Service (RaaS)
business model and direct product sales for both hardware platforms
and software licenses. Besides a standalone service offering and
products, Nauticus’ approach to ocean robotics has also resulted in
the development of a range of technology products for
retrofitting/upgrading legacy systems and other third-party vehicle
platforms. Nauticus provides 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.
Forward-Looking StatementsThis
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 the expected timing of product
commercialization or new product releases; customer interest in
Nauticus’ products; estimated 2022 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 the forward-looking statements no to occur, in
particular the sections entitled “Risk Factors” and “Cautionary
Note Regarding Forward-Looking Statements” in documents filed from
time to time with the SEC, including Nauticus’ Quarterly Report on
Form 10-Q filed with the SEC on November 14, 2022. The documents
filed by Nauticus with the SEC may be obtained free of charge at
the SEC’s website at www.sec.gov.
Nauticus Robotics,
Inc.Condensed Consolidated Balance Sheets
(Unaudited)
|
September 30, 2022 |
|
December 31, 2021 |
|
Assets |
|
|
|
|
Current
Assets: |
|
|
|
|
Cash and cash equivalents |
$ |
35,928,218 |
|
|
$ |
20,952,867 |
|
|
Restricted certificate of deposit |
|
251,236 |
|
|
|
251,236 |
|
|
Accounts receivable, net |
|
637,350 |
|
|
|
794,136 |
|
|
Inventories |
|
5,558,996 |
|
|
|
- |
|
|
Contract assets |
|
483,944 |
|
|
|
893,375 |
|
|
Prepaid insurance |
|
2,598,380 |
|
|
|
67,219 |
|
|
Other Current assets |
|
2,495,759 |
|
|
|
210,225 |
|
|
Total Current assets |
|
47,953,883 |
|
|
|
23,169,058 |
|
|
|
|
|
|
|
Property and
equipment, net |
|
9,645,735 |
|
|
|
1,437,311 |
|
|
Operating
lease right-of-use asset |
|
368,116 |
|
|
|
513,763 |
|
|
Other
assets |
|
77,889 |
|
|
|
47,240 |
|
|
|
|
|
|
|
Total
assets |
$ |
58,045,623 |
|
|
$ |
25,167,372 |
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity (Deficit) |
|
|
|
|
Current
Liabilities: |
|
|
|
|
Accounts payable |
$ |
2,786,544 |
|
|
$ |
1,402,424 |
|
|
Accrued liabilities |
|
1,171,597 |
|
|
|
1,576,433 |
|
|
Operating lease liabilities - current |
|
399,892 |
|
|
|
353,598 |
|
|
Notes payable - current |
|
- |
|
|
|
10,250,000 |
|
|
Notes payable, related parties - current |
|
- |
|
|
|
3,000,000 |
|
|
Total Current Liabilities |
|
4,358,033 |
|
|
|
16,582,455 |
|
|
Warrant
liabilities |
|
4,148,556 |
|
|
|
- |
|
|
Operating
lease liabilities - long-term |
|
179,095 |
|
|
|
467,208 |
|
|
Notes
payable - long-term, net of discount |
|
20,427,812 |
|
|
|
14,708,333 |
|
|
Other
liabilities |
|
- |
|
|
|
20,833 |
|
|
Total Liabilities |
|
29,113,496 |
|
|
|
31,778,829 |
|
|
|
|
|
|
|
Commitments
and Contingencies |
|
|
|
|
|
|
|
|
|
Stockholders' Equity (Deficit): |
|
|
|
|
Preferred stock, $0.0001 par value; 10,000,000 shares,
authorized |
|
- |
|
|
|
- |
|
|
Series A preferred stock, $0.01 par value; 0 and 334,800 shares,
respectively, issued, and outstanding |
|
- |
|
|
|
3,348 |
|
|
Series B preferred stock, $0.01 par value; 0 and 725,426 shares,
respectively, issued, and outstanding |
|
- |
|
|
|
7,254 |
|
|
Common stock, $0.0001 par value; 625,000,000 shares authorized,
47,250,771 and 13,527,810 shares issued, respectively, and
47,250,771 and 9,669,217 shares outstanding, respectively |
|
4,725 |
|
|
|
967 |
|
|
Additional paid-in capital |
|
81,716,561 |
|
|
|
33,221,505 |
|
|
Accumulated deficit |
|
(52,789,159 |
) |
|
|
(39,844,531 |
) |
|
Total Stockholders' Equity (Deficit) |
|
28,932,127 |
|
|
|
(6,611,457 |
) |
|
|
|
|
|
|
Total
Liabilities and Stockholders' Equity (Deficit) |
$ |
58,045,623 |
|
|
$ |
25,167,372 |
|
|
|
|
|
|
|
Nauticus Robotics,
Inc.Condensed Consolidated Statement of Operations
(Unaudited)
|
Three months
ended |
|
Nine months
ended |
|
|
September 30, |
|
September 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
Service |
$ |
2,964,610 |
|
|
$ |
1,844,422 |
|
|
$ |
7,996,734 |
|
|
$ |
2,799,113 |
|
|
Service - related party |
|
17,000 |
|
|
|
129,222 |
|
|
|
210,400 |
|
|
|
446,600 |
|
|
Total
revenue |
|
2,981,610 |
|
|
|
1,973,644 |
|
|
|
8,207,134 |
|
|
|
3,245,713 |
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
Cost of revenue (exclusive of items shown separately below) |
|
3,781,224 |
|
|
|
1,446,979 |
|
|
|
8,220,447 |
|
|
|
3,609,236 |
|
|
Depreciation and amortization |
|
141,901 |
|
|
|
88,531 |
|
|
|
370,306 |
|
|
|
263,032 |
|
|
Research and development |
|
242,996 |
|
|
|
741,558 |
|
|
|
2,094,278 |
|
|
|
2,411,100 |
|
|
General and administrative |
|
4,861,319 |
|
|
|
770,066 |
|
|
|
8,778,498 |
|
|
|
2,066,941 |
|
|
Total costs
and expenses |
|
9,027,440 |
|
|
|
3,047,134 |
|
|
|
19,463,529 |
|
|
|
8,350,309 |
|
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
(6,045,830 |
) |
|
|
(1,073,490 |
) |
|
|
(11,256,395 |
) |
|
|
(5,104,596 |
) |
|
|
|
|
|
|
|
|
|
|
Other
(income) expense: |
|
|
|
|
|
|
|
|
Other income, net |
|
(234,597 |
) |
|
|
1,140 |
|
|
|
(239,838 |
) |
|
|
(1,573,748 |
) |
|
Change in fair value of warrant liabilities |
|
(1,129,589 |
) |
|
|
- |
|
|
|
(1,129,589 |
) |
|
|
- |
|
|
Interest expense, net |
|
1,402,026 |
|
|
|
223,492 |
|
|
|
3,057,660 |
|
|
|
361,867 |
|
|
Total other
(income) expense, net |
|
37,840 |
|
|
|
224,632 |
|
|
|
1,688,233 |
|
|
|
(1,211,881 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
$ |
(6,083,670 |
) |
|
$ |
(1,298,122 |
) |
|
$ |
(12,944,628 |
) |
|
$ |
(3,892,715 |
) |
|
Deemed
dividend for earnout shares |
|
(4,957,366 |
) |
|
|
- |
|
|
|
(4,957,366 |
) |
|
|
- |
|
|
Net loss
attributable to common stockholders |
$ |
(11,041,036 |
) |
|
$ |
(1,298,122 |
) |
|
$ |
(17,901,994 |
) |
|
$ |
(3,892,715 |
) |
|
|
|
|
|
|
|
|
|
|
Basic and
diluted earnings (loss) per share |
$ |
(0.67 |
) |
|
$ |
(0.13 |
) |
|
$ |
(1.49 |
) |
|
$ |
(0.40 |
) |
|
|
|
|
|
|
|
|
|
|
Basic and
diluted weighted average shares outstanding |
|
16,535,661 |
|
|
|
9,637,962 |
|
|
|
11,983,183 |
|
|
|
9,637,962 |
|
|
|
|
|
|
|
|
|
|
|
Nauticus Robotics,
Inc.Consolidated Statement of Cash Flows
(Unaudited)
|
Nine months ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
Cash flows
from operating activities: |
|
|
|
Net loss |
$ |
(12,944,628 |
) |
|
$ |
(3,892,715 |
) |
Adjustments to reconcile net loss to net cash from operating
activities: |
|
|
|
Depreciation and amortization |
|
370,306 |
|
|
|
263,032 |
|
Accretion of debt discount |
|
464,780 |
|
|
|
- |
|
Stock-based compensation |
|
624,407 |
|
|
|
325,935 |
|
Change in fair value of warrant liabilities |
|
(1,129,589 |
) |
|
|
- |
|
Noncash impact of lease accounting |
|
145,647 |
|
|
|
177,051 |
|
Other income - Paycheck Protection Program Loan forgiveness |
|
- |
|
|
|
(1,578,500 |
) |
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
156,786 |
|
|
|
(991,666 |
) |
Inventories |
|
(5,558,996 |
) |
|
|
- |
|
Contract assets |
|
409,431 |
|
|
|
(296,715 |
) |
Other assets |
|
(4,817,187 |
) |
|
|
(271,597 |
) |
Accounts payable and accrued liabilities |
|
(9,013,681 |
) |
|
|
738,285 |
|
Contract liabilities |
|
- |
|
|
|
1,482,096 |
|
Operating lease liabilities |
|
(241,819 |
) |
|
|
(269,697 |
) |
Net cash
from operating activities |
|
(31,534,543 |
) |
|
|
(4,314,491 |
) |
|
|
|
|
Cash flows
from investing activities: |
|
|
|
Capital expenditures |
|
(6,805,648 |
) |
|
|
(597,325 |
) |
Proceeds from restricted certificate of deposit |
|
- |
|
|
|
251,421 |
|
Net cash
from investing activities |
|
(6,805,648 |
) |
|
|
(345,904 |
) |
|
|
|
|
Cash flows
from financing activities: |
|
|
|
Proceeds from notes payable |
|
2,000,000 |
|
|
|
10,000,000 |
|
Payments of note payable |
|
(17,850,333 |
) |
|
|
(361,236 |
) |
Proceeds from Paycheck Protection Program Loan |
|
- |
|
|
|
1,578,500 |
|
Proceeds from reverse recapitalization with CleanTech Acquisition
Corp., net |
|
14,947,875 |
|
|
|
- |
|
Proceeds from issuance of common stock for Pipe Investment |
|
31,000,000 |
|
|
|
- |
|
Proceeds from issuance of Debentures, net of discount |
|
35,800,000 |
|
|
|
- |
|
Payment of transaction costs on equity funding |
|
(12,582,000 |
) |
|
|
- |
|
Net cash
from financing activities |
|
53,315,542 |
|
|
|
11,217,264 |
|
|
|
|
|
Net change
in cash and cash equivalents |
|
14,975,351 |
|
|
|
6,556,869 |
|
|
|
|
|
Cash and
cash equivalents, beginning of period |
|
20,952,867 |
|
|
|
3,298,180 |
|
Cash and
cash equivalents, end of period |
$ |
35,928,218 |
|
|
$ |
9,855,049 |
|
|
|
|
|
Nauticus Robotics,
Inc.Non-GAAP Financial Measures
(Unaudited)
Reconciliation of Net Income
Attributable to Common Stockholders (GAAP) to Adjusted Net Income
Attributable to Common Stockholders (Non-GAAP)
Adjusted net income attributable to common
stockholders is a non-GAAP financial measure which excludes certain
items that are included in net income attributable to common
stockholders, the most directly comparable GAAP financial measure.
Items excluded are those which the Company believes affect the
comparability of operating results and are typically excluded from
published estimates by the investment community, including items
whose timing and/or amount cannot be reasonably estimated or are
non-recurring.
Adjusted net income attributable to common
stockholders is presented because management believes it provides
useful additional information to investors for analysis of the
Company’s fundamental business on a recurring basis. In addition,
management believes that adjusted net income attributable to common
stockholders is widely used by professional research analysts and
others in the valuation, comparison, and investment recommendations
of companies such as Nauticus.
Adjusted net income attributable to common
stockholders should not be considered in isolation or as a
substitute for net income attributable to common stockholders or
any other measure of a company’s financial performance or
profitability presented in accordance with GAAP. A reconciliation
of the differences between net income attributable to common
stockholders and adjusted net income attributable to common
stockholders is presented below. Because adjusted net income
attributable to common stockholders excludes some, but not all,
items that affect net income attributable to common stockholders
and may vary among companies, our calculation of adjusted net
income attributable to common stockholders may not be comparable to
similarly titled measures of other companies.
|
Three months
ended |
|
Nine months
ended |
|
|
September 30, |
|
September 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to common stockholders (GAAP) |
$ |
(11,041,036 |
) |
|
$ |
(1,298,122 |
) |
|
$ |
(17,901,994 |
) |
|
$ |
(3,892,715 |
) |
|
Gain on forgiveness of note payable |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,578,500 |
) |
|
Change in fair value of warrant liability |
|
(1,129,589 |
) |
|
|
- |
|
|
|
(1,129,589 |
) |
|
|
- |
|
|
Expenses related to business combinations(1) |
|
3,519,662 |
|
|
|
- |
|
|
|
3,519,662 |
|
|
|
- |
|
|
Deemed dividend for earnout shares |
|
4,957,366 |
|
|
|
- |
|
|
|
4,957,366 |
|
|
|
- |
|
|
Adjusted Net
loss attributable to common stockholders (non-GAAP) |
$ |
(3,693,597 |
) |
|
$ |
(1,298,122 |
) |
|
$ |
(10,554,555 |
) |
|
$ |
(5,471,215 |
) |
|
|
|
|
|
|
|
|
|
|
Basic and
diluted earnings (loss) per share |
$ |
(0.22 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.88 |
) |
|
$ |
(0.57 |
) |
|
|
|
|
|
|
|
|
|
|
Basic and
diluted weighted average shares outstanding |
|
16,535,661 |
|
|
|
9,637,962 |
|
|
|
11,983,183 |
|
|
|
9,637,962 |
|
|
|
|
|
|
|
|
|
|
|
(1) Expenses related to business combinations are comprised of
$2.3 million included within general and administrative expenses
and $1.2 million included within the cost of revenue for the three-
and nine-month periods of 2022.
Investor Relations Contact:Cody Slach or Jeff
Grampp, CFAGateway Group, Inc. (949) 574-3860KITT@GatewayIR.com
Media ContactZach KadletzGateway Group, Inc.
(949) 574-3860KITT@GatewayIR.com
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