Crown Electrokinetics Reports First Quarter 2022 Result

Rhea-AI Summary

Crown Electrokinetics Corp. (NASDAQ: CRKN) announced its financial results for Q1 2022, reporting a net loss of $4.6 million, down from $20.7 million in Q1 2021. The company's operating expenses decreased to $4.6 million from $5.3 million year-over-year. Crown is set to open a new facility in Salem, Oregon, for Smart Window Inserts™ assembly in Summer 2022 and recently secured a Master Supply Agreement with a large REIT for product installation. As of March 31, 2022, cash reserves were reported at $2.5 million.

Positive

• Net loss reduced to $4.6 million from $20.7 million year-over-year.
• Operating expenses decreased to $4.6 million from $5.3 million.
• New facility in Salem expected to enhance production capabilities.
• Secured a Master Supply Agreement with a large REIT.

Negative

• Cash reserves were only $2.5 million as of March 31, 2022.
• The company deployed $3.6 million for operations, raising concerns about liquidity.

Los Angeles, California, May 13, 2022 (GLOBE NEWSWIRE) -- Crown Electrokinetics Corp. (NASDAQ: CRKN) ("Crown" or the "Company"), a leading smart glass technology company, will today report its financial results for the First Quarter 2022 on Friday, May 13, 2022.

Doug Croxall, Crown CEO and Chairman, “More than ever, we are convinced of the path we chose to vertically integrate all manufacturing into our own facilities located in Corvallis and Salem, Oregon. This decision should provide greater production control, improve our time to market, result in enhanced margins, and increase protection of Crown’s intellectual property.”

Crown First Quarter 2022 Update

The Company expects to have its new facilities in Salem, Oregon operational during Summer 2022. The Salem facility will manage the assembly of the Smart Window Inserts™ and Corvallis will continue to house the Research and Development lab where they will initially produce DynamicTint™ film for the first product launch in Summer 2022.

Initially, the Smart Window Insert™ will be produced in a limited run to fulfill orders from the Company’s current customers.

On March 25th, the Company entered into its third MSA (Master Supply Agreement) with another large REIT (Real Estate Investment Trust), to install its Smart Window Inserts™ powered by DynamicTint™ in its office buildings. The MSA provides the terms and conditions under which purchase orders will be executed.

Financial Results for the First Quarter ended March 31, 2022, compared to the same period ended March 31, 2021

Net Loss: Net loss for the quarter ended March 31, 2022, was $4.6 million which included $1.1 million of non-cash stock-based compensation expense. This Net loss was $16.1 million lower than the $20.7 million recorded during the quarter ended March 31, 2021, which included $18.9 million of non-cash compensation and financing expenses.

Operating Expenses: Operating Expenses were $4.6 million comprising $1.1 million of non-cash stock-based compensation, $1.9 million of payroll expense, $0.8 million in consulting and professional fees, and $0.8 million of operating overhead. Operating expenses for the quarter ended March 31, 2021, were $5.3 million which included non-cash stock-based compensation of $3.5 million.

Other Income/Expenses: Other Income was nominal during the quarter ended March 31, 2022. Other Expense was $15.4 million for the quarter ended March 31, 2021, and was primarily due to interest incurred on convertible notes.

Cash Position: For the quarter ended March 31, 2022, the Company deployed $3.6 million of cash for operations and $0.1 million for investing activities. As of March 31, 2022, cash and cash equivalents were $2.5 million.

In March 2022 Crown executed a $10 million standby letter of credit and in April 2022 filed a Prospectus Supplement for a $5 million At-the-Market offering.

Conference Call and Webcast Information

The Company will host a conference call and audio webcast on Friday, May 13th, 2022, at 11:00 a.m. Eastern Time featuring remarks by Doug Croxall, Chairman & CEO and Joel Krutz, CFO.

Event: Crown Electrokinetics First Quarter 2022 Earnings Conference Call

Date: Friday, May 13, 2022

Time: 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time

Live Call: + 1-877-451-6152 (Toll Free) or +1-201-389-0879 (International)

Webcast: Crown Electrokinetics 2022 Q1 Earnings Call Webcast Link (Click to Access the Webcast)

For interested individuals unable to join the conference call, a replay will be available through May 27, 2022, at +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International). Participants must use the following code to access the replay of the call: 13729772. An archived version of the webcast will also be available on Crown’s Investor Relations site: https://ir.crownek.com/.

About Crown Electrokinetics

Crown is a smart glass technology company and the creator of DynamicTint™ We Make Your Glass Smarter™. Originally invented by Hewlett-Packard (HP, Inc.), our technology allows any glass surface to transition between clear and dark in seconds. With applications to a wide array of windows, including commercial buildings, automotive sunroofs, and residential skylights, we partner with leading glass and film manufacturers for mass production and distribution. At the core of our technology is a thin film that is powered by electrically charged pigment which not only replaces common window tints but is also a more sustainable alternative to traditional window treatments. With its unique ability to be retrofitted to existing glass, DynamicTint™ offers myriad benefits related to reducing carbon emissions. The company is supported by a robust patent portfolio.

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 Electrokinetic 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

Attachments

• Crown Electrokinetics Reports First Quarter 2022 Result
• Crown Electrokinetics Reports First Quarter 2022 Result
• Crown Electrokinetics Reports First Quarter 2022 Result

FAQ

What are the financial results for Crown Electrokinetics in Q1 2022?

Crown Electrokinetics reported a net loss of $4.6 million for Q1 2022, significantly down from $20.7 million in Q1 2021.

What operational changes is Crown Electrokinetics making in 2022?

Crown is set to open a new facility in Salem, Oregon, for the assembly of Smart Window Inserts™ by Summer 2022.

How do the Q1 2022 operating expenses compare to the previous year for CRKN?

Operating expenses for Q1 2022 were $4.6 million, reduced from $5.3 million in Q1 2021.

What significant agreements has Crown Electrokinetics entered recently?

Crown entered a Master Supply Agreement with a large REIT to install Smart Window Inserts™.

What is the cash position of Crown Electrokinetics as of March 31, 2022?

Crown reported cash and cash equivalents of $2.5 million as of March 31, 2022.