Crown Electrokinetics (CRKN) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $4.6 million, up from $37,000 in Q2 2023, driven by new fiber optics contracts and expansion into lead pipe inspection and remediation divisions.

• Net loss narrowed to $5.0 million in Q2 2024 from $14.5 million in Q2 2023, reflecting improved operating leverage and balance sheet restructuring.

• Eliminated all investment debt and preferred equity, significantly improving the balance sheet and tripling shareholder equity.

• Attracted experienced leadership across all divisions, including new CTO and Director of Business Development.

• Regained full NASDAQ compliance and completed a 1-for-150 reverse stock split in June 2024.

Financial highlights

• Q2 2024 revenue reached $4.6 million, a sixfold increase over Q1 2024; six-month revenue totaled $5.3 million, up from $0.1 million for the same period in 2023.

• Q2 cost of revenue was $4.0 million; gross margin for Q2 2024 was approximately 13%.

• Q2 net loss was $5.0 million, a significant improvement from $14.5 million in Q2 2023; six-month net loss was $9.6 million.

• Cash at June 30, 2024, was $4.0 million, up $2.9 million from year-end; net cash used in operations for six months was $8.9 million.

• Accumulated deficit stood at $126.6 million as of June 30, 2024.

Outlook and guidance

• Q3 2024 revenue projected to be in line with previous guidance of $8 million.

• Gen 1 Alpha Smart Window Insert expected to launch in limited quantities by year-end 2024.

• Management anticipates continued strong growth and expects 2025 to be a watershed year for revenue and EBITDA.

• Remaining performance obligations of $6.0 million as of June 30, 2024, expected to be recognized within 12 months.

• Additional capital is required to fund ongoing operations.