Crown Electrokinetics Corp. Reports Year End 2022 Financial Results
Crown Electrokinetics Corp. (NASDAQ: CRKN) reported its 2022 financial results, showing a net loss of $14.3 million, significantly reduced from a $37.2 million loss in 2021. The operating expenses totaled $15.1 million, with payroll and consulting costs leading the increase. The company raised $7.1 million in Q1 2023 and secured a line of credit for up to $100 million, enhancing financial flexibility. The acquisition of Amerigen 7 and rebranding to Crown Fiber Optics marks a strategic expansion with potential revenue growth from new agreements with major telecom companies estimated at $100 million.
- Net loss decreased by $22.8 million compared to 2021.
- Secured a line of credit for up to $100 million.
- Raised $7.1 million in Q1 2023.
- Operating expenses increased by $2.7 million compared to 2021.
- Cash and cash equivalents reduced to $0.8 million by year-end 2022.
LOS ANGELES, March 31, 2023 (GLOBE NEWSWIRE) -- Crown Electrokinetics Corp. (NASDAQ: CRKN) ("Crown" or the "Company"), a leading smart glass technology company and an expert in both designing and installing distributed antenna systems (DAS) and constructing fiber optic networks, today announced its year-end 2022 financial results.
Corporate Updates During and Subsequent to the Fourth Quarter 2022
- Closed the asset acquisition of Amerigen 7, integrated organizations, and completed rebrand to Crown Fiber Optics
- Expanded to three customers including two new large telco infrastructure companies with estimated revenue potential up to
$100 million - Raised
$7.1 million in Q1 2023 through a combination of debt and equity issuances - Closed up to
$100 million line of credit - Advancing EK film production
Doug Croxall, Crown CEO and Chairman, said, “Our fourth quarter was extremely productive setting the stage for growth opportunities across our now two business units. With the successful acquisition and rebranding of Amerigen 7, to Crown Fiber Optics, we have already entered into two new agreements with leading infrastructure solutions providers, expanding our geographic US footprint, diversifying our revenue base, and making revenue more predictable. We look forward to 2023 being a year of execution.”
Financial Results for the year ended December 31, 2022 compared to 12 months ended 2021 (2021 unaudited due to nine-month stub year)
Net Loss: Net loss for the year ended December 31, 2022, was
Operating Expenses: Operating Expenses were
Cash Position: For the year ended December 31, 2022, the Company deployed
Subsequent to December 31, 2022
Subsequent to December 31, 2022, the Company acquired specific assets and liabilities from Amerigen 7 for cash consideration of approximately
The Company secured a Line of Credit for up to
The Company will host a conference call and audio webcast that morning at 11:00 a.m. Eastern time featuring remarks by Doug Croxall, Chairman & CEO and Joel Krutz, CFO.
Conference Call Information
To participate in this event, please log-on or dial-in approximately 5 to 10 minutes before the beginning of the call.
Date: March 31, 2023
Time: 11:00 a.m. EDT
Toll Free: 1-877-451-6152
International: 1-201-389-0879
Conference ID: 13737268
Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1605377&tp_key=348919e489
Participants may also join by using Call me™ at the link below:
https://callme.viavid.com/viavid/?callme=true&passcode=13722237&h=true&info=company&r=true&B=6 - Participants can use Guest dial-in #s above and be answered by an operator OR click the Call me™ link for instant telephone access to the event. The Call me™ link will be made active 15 minutes prior to scheduled start time.
Conference Call Replay Information
Toll-free: 1-844-512-2921
International: 1-412-317-6671
Replay Pin Number: 13737268
Replay: https://viavid.webcasts.com/starthere.jsp?ei=1605377&tp_key=348919e489
About Crown Electrokinetics
Crown is a smart glass technology company and the creator of our Smart Window Insert and an expert in both designing and installing distributed antenna systems (DAS) and constructing fiber optic networks.
Safe Harbor Statement:
Statements in this news release may be "forward-looking statements". Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions, or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and Crown Electrokinetics Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.
This press release does not constitute a public offer of any securities for sale. Any securities offered privately will not be or have not been registered under the Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Crown Electrokinetics
IR Email: info@crownek.com
Source: Crown Electrokinetics: www.crownek.com
Crown Electrokinetics Corp. | ||||||||
Consolidated Balance Sheets | ||||||||
(in thousands) | ||||||||
December 31, 2022 | December 31, 2021 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 821 | $ | 6,130 | ||||
Prepaid and other current assets | 590 | 687 | ||||||
Total current assets | 1,411 | 6,817 | ||||||
Property and equipment, net | 1,409 | 895 | ||||||
Intangible assets, net | 1,598 | 1,761 | ||||||
Right of use asset | 1,842 | - | ||||||
Deferred debt issuance costs | 150 | - | ||||||
Other assets | 180 | 179 | ||||||
TOTAL ASSETS | $ | 6,590 | $ | 9,652 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 865 | $ | 358 | ||||
Accrued expenses | 621 | 298 | ||||||
Lease liability - current portion | 574 | - | ||||||
Warrant liability | 972 | - | ||||||
Notes payable at fair value | 1,654 | - | ||||||
Notes payable | 8 | 8 | ||||||
Total current liabilities | 4,694 | 664 | ||||||
Lease liability | 1,366 | - | ||||||
Total liabilities | 6,060 | 664 | ||||||
Commitments and Contingencies (Note 12) | ||||||||
STOCKHOLDERS’ EQUITY: | ||||||||
Preferred stock, par value | - | - | ||||||
Series A preferred stock, par value | - | - | ||||||
Series B preferred stock, par value | - | - | ||||||
Series C preferred stock, par value | - | - | ||||||
Series D preferred stock, par value | - | - | ||||||
Common stock, par value | 2 | 1 | ||||||
Additional paid-in capital | 88,533 | 82,677 | ||||||
Accumulated deficit | (88,005 | ) | (73,690 | ) | ||||
Total stockholders' equity | 530 | 8,988 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 6,590 | $ | 9,652 | ||||
Crown Electrokinetics Corp. | ||||||||
Consolidated Statements of Operations | ||||||||
(in thousands) | ||||||||
Year Ended December 31, 2022 | Nine Months Ended December 31, 2021 | |||||||
Operating expenses: | ||||||||
Research and development | $ | 4,107 | $ | 2,496 | ||||
Selling, general and administrative | 11,001 | 14,367 | ||||||
Total operating expenses | 15,108 | 16,863 | ||||||
Loss from operations | (15,108 | ) | (16,863 | ) | ||||
Other income (expense): | ||||||||
Other expense | (74 | ) | (55 | ) | ||||
Interest expense | (7 | ) | (7 | ) | ||||
Change in fair value of warrant liability | 1,023 | - | ||||||
Change in fair value of notes | (149 | ) | - | |||||
Gain on extinguishment of debt | - | 7 | ||||||
Gain on forgiveness of PPP loan | - | 431 | ||||||
Total other income | 793 | 376 | ||||||
Net loss | (14,315 | ) | (16,487 | ) | ||||
Cumulative dividends on Series D preferred stock | (55 | ) | - | |||||
Net loss attributable to common stockholders | $ | (14,370 | ) | $ | (16,487 | ) | ||
Net loss per share attributable to common stockholders | $ | (0.82 | ) | $ | (1.13 | ) | ||
Weighted average shares outstanding, basic and diluted: | 17,436,174 | 14,596,019 | ||||||
Crown Electrokinetics Corp. | |||||||
Consolidated Statements of Cashflows | |||||||
(in thousands) | |||||||
Year Ended December 31, 2022 | Nine Months Ended December 31, 2021 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net loss | (14,315 | ) | $ | (16,487 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Stock-based compensation | 2,405 | 8,458 | |||||
Issuance of common stock to consultants | - | 244 | |||||
Depreciation and amortization | 503 | 225 | |||||
Loss on extinguishment of debt | - | (7 | ) | ||||
Gain on forgiveness of PPP loan | - | (431 | ) | ||||
Change in fair value of warrant liability | (1,023 | ) | - | ||||
Change in fair value of notes | 149 | - | |||||
Loss on disposal of equipment | 52 | - | |||||
Amortization of deferred debt issuance costs | 73 | - | |||||
Amortization of right of use assets | 494 | - | |||||
Changes in operating assets and liabilities: | |||||||
Prepaid and other assets | 182 | (500 | ) | ||||
Accounts payable | 413 | (126 | ) | ||||
Accrued expenses | 323 | 87 | |||||
Lease liability | (396 | ) | - | ||||
Net cash used in operating activities | (11,140 | ) | (8,537 | ) | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Purchase of equipment | (751 | ) | (552 | ) | |||
Purchase of patents | (61 | ) | (264 | ) | |||
Net cash used in investing activities | (812 | ) | (816 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the issuance of common stock and warrants, net of fees | 855 | - | |||||
Proceeds from the issuance of common stock / At-the-market offering | 1,295 | - | |||||
Offering costs for the issuance of common stock / At-the-market offering | (46 | ) | - | ||||
Proceeds from issuance of senior secured convertible notes and common stock warrants | 3,500 | - | |||||
Proceeds from issuance of Series D preferred stock and warrants, net of fees | 1,039 | - | |||||
Proceeds from exercise of stock options | - | 186 | |||||
Net cash provided by financing activities | 6,643 | 186 | |||||
Net decrease in cash | (5,309 | ) | (9,167 | ) | |||
Cash — beginning of year | 6,130 | 15,297 | |||||
Cash — end of year | $ | 821 | $ | 6,130 | |||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||||||
Issuance of common stock warrants in connection with SLOC | $ | 223 | $ | - | |||
Issuance of common stock warrants in connection with consideration payable | $ | 86 | $ | - | |||
Unpaid equipment included in accounts payable | $ | 94 | $ | 206 | |||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||
Cash paid for interest | $ | 7 | $ | 6 | |||
FAQ
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