Crown Electrokinetics (CRKN) Registration Filing summary

Company overview and business model

• Develops and sells DynamicTint™ optical switching film for smart windows, enabling electronic control of opacity for energy efficiency and sustainability in commercial, residential, and automotive applications.

• Manufactures Smart Window Inserts for retrofitting existing windows, offering both sales and long-term lease options to customers.

• Expanded into fiber optics infrastructure through acquisition, providing construction and maintenance services for telecommunications networks.

• Holds a robust portfolio of patents and trade secrets, with technology originally developed by HP and further protected by licensing and in-house R&D.

• Partners with major real estate and property management firms for product deployment and has established manufacturing facilities in Oregon.

Financial performance and metrics

• For the six months ended June 30, 2024, net cash used in operating activities was $8.9 million, with a net loss of $9.6 million and an accumulated deficit of $126.6 million.

• As of June 30, 2024, working capital was approximately $3.4 million, cash was $4.0 million, and shareholders' equity was $8.8 million.

• Expects to continue incurring operating losses and negative cash flows, raising substantial doubt about ability to continue as a going concern.

• No cash dividends have been declared or paid, and none are anticipated in the foreseeable future.

Use of proceeds and capital allocation

• May receive up to $100 million in gross proceeds from the sale of common stock to Liqueous, LP under the Purchase Agreement.

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

• All offering-related expenses are borne by the company, while selling expenses are paid by the selling stockholder.