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Nauticus Robotics Inc (KITT) Q3 2024 Earnings Call Highlights: Navigating Challenges and ...

In This Article:

  • Revenue: $0.4 million for Q3 2024, down $0.1 million from Q2 2024 and down $1.2 million from Q3 2023.

  • Operating Expenses: $5.9 million for Q3 2024, a $3.9 million improvement from Q3 2023 and a $0.6 million sequential improvement.

  • Net Loss: $11.4 million for Q3 2024, a $6.3 million reduction from Q3 2023 but a $6 million increase sequentially.

  • Cash Position: $2.9 million at the end of Q3 2024, compared to $0.7 million at the end of 2023.

  • Funding: Closed $1.1 million of funding as the first tranche of up to $21.1 million available through a new convertible debenture.

  • Debt Conversion: Agreement to convert approximately $27 million of principal and $3 million of interest into preferred convertible stock.

Release Date: November 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Nauticus Robotics Inc (NASDAQ:KITT) achieved an industry first by successfully conducting Aquanaut's first commercial projects, marking a significant milestone for the company and the industry.

  • The company is focused on creating its first business backlog for 2025, consisting of both commercial and defense work, indicating strong future growth potential.

  • Nauticus Robotics Inc (NASDAQ:KITT) received strong support from existing lenders, converting debentures to increase shareholder equity, which should help maintain its NASDAQ listing.

  • The Aquanaut vehicle exceeded customer expectations by providing high-quality data and identifying anomalies, leading to additional commercial discussions for the 2025 season.

  • The company is working on extending its operating season and expanding into new geographies, aiming for year-round operations and reducing seasonality impacts.

Negative Points

  • Revenue for the third quarter was only $0.4 million, down from both the previous quarter and the same period last year, largely due to a late start caused by bad weather.

  • Operating expenses for the third quarter were $5.9 million, indicating a high cost structure relative to the revenue generated.

  • The company reported a net loss of $11.4 million for the quarter, highlighting ongoing financial challenges.

  • The third quarter was adversely impacted by a $2.1 million charge related to debt conversion liabilities, affecting the financial results.

  • Nauticus Robotics Inc (NASDAQ:KITT) is still working on securing the necessary cash to support operations through the end of 2025, indicating potential liquidity concerns.

Q & A Highlights

Q: Can you provide an update on the Aquanaut vehicle's commercial projects and its impact on future operations? A: John Gibson, CEO, highlighted that Nauticus Robotics achieved a significant milestone by conducting the first commercial projects with the Aquanaut vehicle in the Gulf of Mexico. This success is expected to create a business backlog for 2025, with customers expanding their scope of work to include Aquanaut's unique capabilities. The company is working on technical modifications to allow year-round operations and is also engaging with South American customers to mitigate seasonality.