LOS ANGELES, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Crown Electrokinetics Corp. (NASDAQ: CRKN) ("Crown" or the "Company"), a leading smart glass technology company and an expert in constructing fiber optic networks and lead pipe inspection and remediation, will report its financial results for the second quarter 2024 today, August 14, 2024.

Doug Croxall, Crown CEO and Chairman, "Our second quarter represents our best revenue quarter in our history. As of today, we have eliminated all investment debt and all classes of our preferred equity; thereby cleaning up both our balance sheet and cap table significantly. We have added to our senior management team and announced two new lines of business with lead pipe inspection and remediation. We are positioned for an outstanding second half of 2024, building atop of recent operational momentum that we expect will position Crown for a significant year of value creation in 2025."

Corporate Updates During and Subsequent to the Q2 2024

Reiterates revenue guidance for third quarter of $8.0 million
Gen 1 Alpha Smart Window Insert delivery date targeted for late 2024
Fiber division generates $4.6 million of Q2 revenue an increase of 582% over Q1 revenue
Twin Dolphin slant well project underway in Los Cabos Mexico and should lead to other international slant well projects
Management additions in Electrokinetic Film division as well as Element 82 and PE Pipelines divisions
Launched Element 82 specializing in lead pipe inspections and PE Pipelines focusing on lead pipe remediation
Restructured balance sheet eliminating all preferred equity and improving shareholder equity by three times
Regained NASDAQ Compliance

Financial Results for the Second Quarter ended June 30, 2024

Revenue:

For the quarter ended June 30, 2024, Crown booked $4.6 million of revenues compared to $0.7 million in the first quarter of 2024. For the six months ended June 30, 2024, the Company's revenue was $5.3 million, compared to $0.1 million for the six months ended June 30, 2023.

Cost of revenue:

Cost of revenue was $4.0 million and $23,000 for the three months ended June 30, 2024, and 2023 and $5.8 million and $0.1 million for the six months ended June 30, 2024 and 2023, respectively.

Expenses:

Depreciation and amortization expense for the three months ended June 30, 2024 and 2023, were $0.2 million and $0.1 million, respectively.

Research and development expenses were $1.1 million for the three months ended June 30, 2024 compared to $0.5 million for the three months ended June 20, 2023.

General and administrative ("G&A") expenses were $4.2 million for the quarter which included $2.4 of non-cash equity compensation expense. This represents a $0.1 million decrease in G&A expenses compared to 2023.

Loss from Operations:

Loss from Operations for the second quarter were $4.9 million, in line with the same quarter in 2023. June YTD operating losses were $8.6 million compared to $9.0 million in 2023.

Net losses:

Net losses were $5.0 million compared to $14.5 million in Q1 2023. June YTD Net losses were $9.6 million compared to $16.8 million in 2023.

Cash:

For the six months ended June 30, net cash increased $2.9 million to $4.0 million as the company deployed $8.9 million of cash for operations, $0.1 million for investments, and raised $11.8 million in financing activities.

Revenue guidance:

The Company expects third quarter revenues to be in line with previous guidance of $8.0 million.

Conference Call Information

To participate in this event, please log-on or dial-in approximately 5 to 10 minutes before the beginning of the call.

Date: August 14, 2024

Time: 12:00 PM ET

1-877-451-6152 or 1-201-389-0879

Conference ID: 13747919

Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1680379&tp_key=cade0c707f

Callme™: https://callme.viavid.com/viavid/?callme=true&passcode=13722237&h=true&info=company&r=true&B=6

Participants can use Guest dial-in #s above and be answered by an operator OR click the Call me™ link for instant telephone access to the event.

Call me™ link will be made active 15 minutes prior to scheduled start time.

Conference Call Replay Information

1-844-512-2921 or 1-412-317-6671

Access ID: 13747919

About Crown Electrokinetics

Crown is comprised of two divisions, Fiber Optics and Electrokinetics Film. The Electrokinetics Film division is a smart glass technology and the creator of our Smart Window Insert based on its patented electrokinetic film. Crown's Fiber Optics division is a builder of underground fiber optic networks as well as other utility infrastructure projects.

Safe Harbor Statement:

Statements in this news release may be "forward-looking statements". Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions, or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and Crown Electrokinetic Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.

This press release does not constitute a public offer of any securities for sale. Any securities offered privately will not be or have not been registered under the Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Crown Electrokinetics

IR Email: info@crownek.com

Source: Crown Electrokinetics: www.crownek.com


Crown Electrokinetics, Corp
Statements of Operations
(in thousands)
	Three Months Ended June 30,				Six months ended June 30,
		2024		2023		2024		2023

Revenue	$	4,648	$	37	$	5,330	$	59

Cost of revenue, excluding depreciation and amortization		4,183		23		5,819		54
Depreciation and amortization		74		81		286		263
Research and development		1,111		490		1,867		1,031
General and administrative		4,187		4,328		5,970		7,722
Loss from operations		(4,907)		(4,885)		(8,612)		(9,011)

Other income (expense):
Interest expense		(145)		(2,508)		(1,005)		(4,525)
Loss on extinguishment of warrant liability		-		-		-		(504)
Loss on extinguishment of debt		-		(2,345)		-		(2,345)
Gain on issuance of convertible notes		-		-		-		64
Change in fair value of warrants		23		2,130		-		7,736
Change in fair value of notes		-		(6,883)		-		(7,000)
Change in fair value of derivative liability		-		-		-		-
Other expense		-		(28)		(24)		(1,234)
Total other income (expense)		(122)		(9,634)		(1,029)		(7,808)

Net loss		(5,029)		(14,519)		(9,641)		(16,819)
Deemed dividend on Series D preferred stock		-		-		-		(6)
Cumulative dividends on Series A preferred stock		-		(5)		-		(9)
Cumulative dividends on Series B preferred stock		-		(29)		-		(49)
Cumulative dividends on Series C preferred stock		-		(10)		-		(10)
Cumulative dividends on Series D preferred stock		-		(53)		-		(84)
Cumulative dividends on Series D preferred stock				-				-
Cumulative dividends on Series D preferred stock				-				-
Cumulative dividends on Series D preferred stock				-				-
Cumulative dividends on Series D preferred stock				-				-
Cumulative dividends on Series F preferred stock		-		-		-		-
Cumulative dividends on Series F-1 preferred stock		-		-		-		-
Cumulative dividends on Series F-2 preferred stock		-		-		-		-
Deemed dividend in connection with conversion of Series A, Series B, and Series C preferred stock		(1,350)		-		(1,350)		-
Deemed dividend in connection with conversion of Series F, F-1, and F-2		(3,874)		-		(3,874)		-
Net loss attributable to common stockholders	$	(10,253)	$	(14,616)	$	(14,865)	$	(16,977)

Net loss per share attributable to common stockholders	$	(5.89)	$	(2,720.27)	$	(14.98)	$	(3,951.82)

Weighted average shares outstanding, basic and diluted:		1,739,995		5,373		992,278		4,296


Crown Electrokinetics, Corp
Balance Sheets
(in thousands)

	June 30, 2024		December 31, 2023

Cash	$	3,990	$	1,059
Prepaid and other current assets		378		728
Accounts receivable , net		3,351		83
Other receivables		211		-
Contract asset		1,244		-
Total current assets		9,174		1,870
Prepaid expenses long term		215		-
Property and equipment, net		3,012		3,129
Intangible assets, net		1,269		1,382
Right of use asset		1,878		1,701
Deferred debt issuance costs		292		1,306
Other assets		160		139
TOTAL ASSETS	$	16,000	$	9,527

Accounts payable	$	2,215	$	1,500
Accrued expenses		898		1,194
Lease liability - current portion		735		655
Notes payable short term		636		429
Deferred revenue		1,260		-
Total current liabilities		5,744		3,778
Notes payable long term		296		-
Lease liability - non-current portion		1,178		1,072
Total liabilities		7,218		4,850

Total stockholders' equity		8,782		4,677
TOTAL LIABILITIES AND EQUITY	$	16,000	$	9,527


Crown Electrokinetics, Corp
Statement of Cash flow
(in thousands)
		Six Months Ended June 30,
			2024		2023
	CASH FLOWS FROM OPERATING ACTIVITIES
	Net loss	$	(9,641)	$	(16,819)
	Adjustments to reconcile net loss to net cash used in operating activities:
	Stock-based compensation		2,424		313
	Depreciation and amortization		286		372
	Loss on extinguishment of warrant liability		-		504
	Change in fair value of warrant liability		-		(7,736)
	Loss on extinguishment of debt		-		2,345
	Change in fair value of notes		-		7,000
	Amortization of deferred debt issuance costs		1,014		4,049
	Amortization of right of use assets		383		1,045
	Amortization of notes payable		(15)		-
	Other expenses		-		1,275
	Loss on disposal of equipment		-		235
	Changes in operating assets and liabilities:		-
	Prepaid and other assets		114		(14)
	Accounts receivable		(3,268)		-
	Contract asset		(1,244)
	Note receivables		(211)		-
	Contract liabilities		1,260		-
	Accounts payable		715		886
	Accrued expenses		(296)		(742)
	Lease liability		(374)		(1,101)
	Warranty customer liability		-		-
	Net cash used in operating activities		(8,853)		(8,388)
	CASH FLOWS FROM INVESTING ACTIVITIES
	Cash paid for acquisition of Amerigen 7		-		(644)
	Purchase of equipment		(56)		(707)
	Net cash used in investing activities		(56)		(1,351)
	CASH FLOWS FROM FINANCING ACTIVITIES
	Proceeds from the exercise of warrants		-		2,061
	Proceeds from the issuance of common stock / At-the-market offering		588		2,198
	Proceeds from the issuance of notes in connection with Line of Credit		-		2,350
	Offering costs for the issuance of common stock / At-the-market offering		-		(91)
	Proceeds from issuance of Series F-1 preferred stock		-		2,328
	Proceeds from issuance of Series F-2 preferred stock		-		748
	Proceeds from issuance of January promissory notes, net of fees paid		-		1,357
	Borrowing of notes payable		1,164		-
	Repayment of notes payable		(646)		(1,997)
	Proceeds from the issuance of common stock in connection with equity line of credit, net of offering costs		10,734		-
	Net cash provided by financing activities		11,840		8,954

	Net increase / decrease in cash		2,931		(785)
	Cash — beginning of period		1,059		821
	Cash — end of period	$	3,990	$	36

Crown Electrokinetics Reports Second Quarter 2024 Financial Results