Crown Electrokinetics (CRKN) Registration Filing summary

Company overview and business model

• Develops and sells DynamicTint™ optical switching film for smart windows, targeting commercial, residential, and automotive markets.

• Technology enables rapid electronic control of window opacity, offering energy efficiency and sustainability benefits.

• Business model includes direct sales and long-term leases of Smart Window Inserts, with expansion into fiber optics infrastructure services.

• Partners with major real estate and telecommunications firms, and has established supply agreements with key commercial property owners.

• Manufacturing is vertically integrated, with facilities in Oregon for film and insert production, aiming for scalability and cost efficiency.

Financial performance and metrics

• As of March 31, 2024, reported negative working capital of $2.8 million, cash of $0.3 million, and an accumulated deficit of $121.6 million.

• Net cash used in operating activities was $2.7 million for Q1 2024, with ongoing operating losses and negative cash flows.

• No cash dividends have been declared or are anticipated in the foreseeable future.

Use of proceeds and capital allocation

• May receive up to $36.3 million in gross proceeds from the sale of common stock to Keystone Capital Partners under a purchase agreement.

• Proceeds will be used for working capital, strategic initiatives, and general corporate purposes, with management retaining broad discretion over allocation.