Nauticus Robotics (KITT) Q2 2024 earnings summary

Executive summary

• Focused on building 2025 backlog with both commercial and defense contract opportunities in progress, including advancing Aquanaut Mark 2 and upgrading Vehicle 1; updates to be provided as contracts close.

• Completed phase one for a major South American deepwater operator, with billing and collection finalized; DIU project successfully completed with final billing in Q3.

• Transitioning from R&D to commercialization, emphasizing cost reduction and cash preservation amid insufficient revenue to cover expenses.

• Strong support from lenders converting to debentures, reducing leverage and increasing market cap.

• Leadership transition with new General Counsel, John Symington, joining to support growth and compliance.

Financial highlights

• Q2 2024 revenue was $501,708, down 56% year-over-year and flat sequentially; six-month revenue was $966,062, down 76% from the prior year.

• Net loss for Q2 2024 was $5,373,320 (basic loss per share of $2.75), compared to net income of $20,673,440 in Q2 2023; adjusted net loss (non-GAAP) was $9.0 million, up from $6.8 million in Q2 2023.

• Operating expenses for Q2 were $6.5 million, down $1.5 million year-over-year, up $0.5 million sequentially.

• G&A costs for Q2 were $3.2 million, a $2.3 million reduction from Q2 2023.

• Cash and cash equivalents as of June 30, 2024, were $8,122,943, up from $0.7 million at end of 2023, due to $13.3 million funding in January and $9.5 million raised in Q2.

Outlook and guidance

• Actively working on commercial and defense contracts for 2025 backlog; updates to be provided as deals close.

• Plans to mobilize Aquanaut Mark II in the Gulf of Mexico in August for revenue-generating field work.

• Vehicle 1 to undergo testing at FAU in Q4, with vehicle 3 assembly starting Q1 2025.

• ToolKITT software expected to become a core, high-margin product with growing industry interest.

• Expects to recognize approximately $1.67 million in future revenue from unfulfilled performance obligations as of June 30, 2024.