Release Date: August 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Nauticus Robotics Inc (KITT, Financial) successfully completed Phase 1 for the largest South American deepwater operator and received payment.
- The company is planning to deploy the Aquanaut Mark 2 vehicle in the Gulf of Mexico, which is expected to generate revenue.
- Nauticus Robotics Inc (KITT) has partnered with Florida Atlantic University to test and develop the Aquanaut system, enhancing its commercial application.
- The company completed a 36:1 reverse split, bringing its stock price over the $1 minimum bid price required by NASDAQ.
- Nauticus Robotics Inc (KITT) raised $9.5 million through its at-the-market facility in the second quarter, significantly improving its cash position.
Negative Points
- Revenue for the second quarter was $500,000, which is the same as the first quarter of 2024 and down $600,000 from the same period last year.
- Operating expenses for the second quarter were $6.5 million, resulting in a net loss of $5.4 million for the quarter.
- The company is still working to meet NASDAQ's market capitalization requirement and has engaged advisers for assistance.
- Adjusted net loss for the first quarter was $8.9 million, an increase from $7.4 million in the prior quarter and $6.8 million in the same period last year.
- Nauticus Robotics Inc (KITT) is facing challenges in securing defense contracts, with ongoing negotiations but no concrete agreements yet.
Q & A Highlights
Q: What's the current market cap and the number of outstanding shares total that would be available to float to the public and then those held inside?
A: (Nicholas Bigney, General Counsel) We have roughly about 4.6 million shares in the market, with a market cap of approximately $11 million. On a fully diluted basis, the market cap is closer to $40 million to $50 million, depending on the share price.
Q: Does that meet the NASDAQ requirement?
A: (Nicholas Bigney, General Counsel) We're working with NASDAQ on that. They will look at certain criteria, but we believe we have a path forward.
Q: Could you provide more color on the revenue model for the AUVs, specifically the daily rate and deployment schedule?
A: (John Gibson, CEO) The daily rate for AUVs ranges from $25,000 to $75,000, which includes all costs such as consumables and vessel expenses. We model around 200 days of work per year, accounting for weather and other factors. International rates are higher but margins remain similar.
Q: What is the status of the vehicle being tested at Florida Atlantic University (FAU) and its deployment schedule?
A: (John Gibson, CEO) Vehicle 2, currently at FAU, will return to the Gulf of Mexico this month. Vehicle 1 will replace it at FAU for testing in Q4. We aim to have Vehicle 1 ready for revenue generation next year and will start assembling Vehicle 3 in Q1 2025.
Q: How is toolKITT expected to generate revenue as it gets adopted and rolled out?
A: (John Gibson, CEO) toolKITT is crucial for our operations and is expected to be a core revenue driver. We are in discussions with ROV companies for deploying toolKITT on their systems. The software offers higher margins and faster deployment compared to physical vehicles.
Q: Are there any updates on the defense contract bid with the Marines through the DIU program?
A: (John Gibson, CEO) We are actively negotiating a potential defense contract. While we can't provide specific details until it's finalized, we are very interested in defense work and believe we will have updates soon.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
