Nauticus Robotics Reports Third Quarter 2022 Results and Provides Business Update
11/14/2022 - 07:00 AM
HOUSTON, Nov. 14, 2022 (GLOBE NEWSWIRE) -- 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 robotsEntered into an agreement with Shell to deploy a Nauticus Aquanaut and its autonomous behaviors using remote operations and supervised autonomyAnnounced a multi-million-dollar contract with the U.S. Defense Innovation Unit (“DIU”) for the development of an unmanned amphibious systemDisclosed 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 Opportunity $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 $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 Information
U.S. dial-in number: 1-877-407-9039
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: 1-844-512-2921
About Nauticus Nauticus 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 Statements www.sec.gov .
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
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
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.
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