NASDAQ:KITT Nauticus Robotics Q1 2024 Earnings Report $1.20 +0.08 (+6.70%) As of 02:29 PM Eastern This is a fair market value price provided by Polygon.io. Learn more. Earnings History Nauticus Robotics EPS ResultsActual EPS-$8.28Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/ANauticus Robotics Revenue ResultsActual Revenue$0.46 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/ANauticus Robotics Announcement DetailsQuarterQ1 2024Date5/13/2024TimeAfter Market ClosesConference Call DateTuesday, May 14, 2024Conference Call Time10:00AM ETUpcoming EarningsNauticus Robotics' Q1 2025 earnings is scheduled for Monday, May 12, 2025, with a conference call scheduled on Tuesday, May 13, 2025 at 10:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by Nauticus Robotics Q1 2024 Earnings Call TranscriptProvided by QuartrMay 14, 2024 ShareLink copied to clipboard.There are 5 speakers on the call. Operator00:00:00Good day, everyone, and welcome to today's Nauticus Robotics 2024 Q1 Earnings Call. At this time, all participants are in a listen only mode. Later, you will have the opportunity to ask questions during the question and answer session. Operator00:00:30Please note this call is being recorded, and I will be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Kristin Morman, Special Project Lead. Speaker 100:00:43Thank you, and good morning, everyone. Joining me today and participating in the call are John Gibson, CEO and President Vicki Hay, Interim CFO Nick Bigney, General Counsel and other members of our leadership team. On today's call, we will first provide prepared remarks concerning our operations and financial results. Following that, we will answer questions. We have now released our results for the Q1 of 2024, which are available on our website. Speaker 100:01:19In addition, today's call is being webcast and a replay will be available on our website shortly following the conclusion of the call. Please note that comments we make on today's call regarding projections or our expectations for future events are forward looking statements. Forward looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and the risk factors discussed in our filings with the SEC. Speaker 100:02:01Also, please refer to the reconciliations provided in our earnings press release as we may discuss non GAAP metrics on this call. I will now turn it over to John. Speaker 200:02:13Well, good morning. Thank you, Kristen, and thank you all for joining us for our conference call. I'm extremely excited about the company, but it's my style. I tend to go straight into a couple of challenges that the company faces and then we're going to switch over to the excitement of the pipeline of opportunities that are building around OPMOT toolkit. Now our listing makes us both unique and valuable rather than having to be a limited partner and a venture capital fund, which requires a $250,000 minimum to participate, we offer an opportunity to invest directly in an emerging high growth technology business serving the ocean market with anticipated CAGRs and the ocean market ranging from 8% to 15% for offshore drilling and wind respectively through the year 2,030. Speaker 200:03:03We have a talented team and an AUV ready to start generating revenue from the industrial, environmental, commercial and defense sectors. Nauticus is a high risk investment, but with the potential to generate returns greater than the market. Now while we are public, we mostly resemble an emerging growth company seeking to be round of funding. We are a technology play in the emerging blue economy with a very unique product that satisfies the needs of our customers to reduce costs, reduce emissions, reduce labor requirements, improve safety and most importantly gather vast quantities of subsea data to enable the sustainable development of the ocean. We have fantastic products coming into a strong market this year. Speaker 200:03:50We are shifting from being dependent upon defense to being entrenched in the industrial, commercial and environmental sectors as well. We're building a company to attract, buy and hold investors. Now the first issue, we need for you to vote yes on the reverse split item number 3 of the special meeting being hosted on May 20, 2024. We want to remain listed. There are two requirements, bid price and market cap. Speaker 200:04:19We have until July 22, 2024, to cure having a bid price below $1 We have until August 13, 2024 to cure the market cap being less than 35,000,000 dollars Let's address the bid price being over $1 first. We believe we are on track to be daily revenue generating Q3 2024 with the Aquanaut. We have numerous blue chip customers ready to put Aquanaut to work. Operating margins for Aquanaut should be strong because we conducted an aggressive cost management strategy over the last several months. With revenue, we believe the share price will recover. Speaker 200:05:01However, timing is critical to make July 22, 2024. We cannot control the overall market, the weather, elections, interest rates, inflation, etcetera. And hence we need to prepare for what we can control. So what are we doing that we can control? Well, we are preparing requests for a 6 month extension to get in compliance with the bid price being over $1 There's no guarantee that the extension will be granted, but we plan to be ready to submit. Speaker 200:05:32To enhance our chances of getting above $1 we intend to keep you well informed via 8ks and press releases as we convert existing contracts to revenue and secure new contracts. We have previously announced contracts with Shell, Petrobras and Equinor. All three remain committed to deploying the Aquanaut as soon as we complete our certification. We have found ways with several customers to expand the potential scope of work beyond the announced contracts. We're confident in the near term completion of the final certification that we currently have a vessel on standby in the Gulf share price. Speaker 200:06:20How much it improves has uncertainty and is very difficult to model. What we do know is our recommendation for a reverse share split can solve this problem and is 100% within our control. Voting yes on the reverse split, item number 3 of the special meeting allows us to get back into compliance on the bid price being above $1 Please vote yes. I do not like recommending this vote. I understand reverse splits typically are done as a last resort typically result in a share price reduction of 10 plus percent following the action. Speaker 200:06:57At this time, we're recommending the split because it is within our control. It can cure the bid price compliance issue with NASDAQ. And unlike typical situations, it's a needed bridge to get the company to generating daily commercial revenue and not an ask based upon a company that's failing, but an ask from a company that is emerging. Our second issue, the reverse split does not cure the market cap compliance issue with NASDAQ. We do believe with the cure of the bid price with the reverse split, we can successfully gain an extension of 6 months from August 13, 2024 to cure the market cap shortfall. Speaker 200:07:39We believe the increase in services revenue from leasing Aquanaut in the 3rd quarter will help close the gap on market cap. We could cure the market cap issue without curing the bid price issue, however, at a share price of over $0.60 And that would still leave us out of compliance on the bid price. Again, the reasoning for asking for the vote on the reverse split is that we need to get in compliance with the bid price as well. Now that we're through with compliance, let's focus on revenue. Things are looking strong in the second half of twenty twenty four. Speaker 200:08:14That's the reason I'm super excited about the future. And for our operational and business development update, I'd like to turn it over to Jorge or if you're in Speaker 300:08:23Brazil, Georgi. Thank you very much, John. I appreciate that. I'm pleased to report positive developments regarding Aquanaut vehicle and toolkit. We have secured strong support from our existing customers and are actively collaborating to facilitate Aquanaut's commercial project eligibility in Q3 of 2024. Speaker 300:08:43The Aquanaut vehicle in conjunction with our toolkit software suite addresses a significant unmet need within the market. The integrated solution offers a compelling value proposition, thus simultaneously reducing operational costs and minimizing environmental impact. I have recently met with several prospective clients and we are actively cultivating a promising sales pipeline. This pipeline includes 6 potential long term blue chip customers across diverse industry segments, encompassing environmental services, oil and gas operations and technology companies. Timely certification of Equinor in 2024 presents a strategic opportunity to secure budget for the remaining of the year and lay groundwork for continued accelerated growth in 2025. Speaker 300:09:31We will continue to collaborate with existing customers to expedite the Aquanox certification process. We're also actively quantifying the cost savings and environmental benefits of the Aquanox vehicle and toolkit software to further solidify its value proposition. Back to you, John. Speaker 200:09:50I appreciate that, Jorge. Now this update reflects a very positive trajectory for our company and it underlies a robust market demand for our products and positions our company for significant commercial expansion with our products, both software and Ocanaut. You may have noticed that Jorge did not however mention our work in the defense sector. Nauticus has a long history of defense revenues. And as I mentioned on our previous earnings calls, we intend to seek work in the defense sector to the extent that it is profitable and a fit for us. Speaker 200:10:23However, because both of our size and the nature of defense spending, our revenue from defense can be uneven and sporadic. And so we've chosen to transition to a daily revenue commercial model and we think that's a really important change for our company. Now with that, I'm going to turn it over to Vicki to walk you through our financial results. Vicki? Speaker 400:10:44Thanks, John, and good morning. I am pleased to be presenting our Q1 financial results. Revenue for the Q1 was $500,000 which is down $2,400,000 from the same period last year and down $600,000 from the prior quarter. Revenue recognized in the Q1 is a combination of continuing government revenue along with the start of our commercial revenue relating to the Equinor vehicle. Operating expenses for the Q1 were 6 $100,000 which is a $2,600,000 decrease from Q1 'twenty three and a sequential decrease of 29,300,000 The 4th quarter results included a $25,300,000 impairment and a $2,500,000 expense loss on contract. Speaker 400:11:34However, when considering both of these factors, we are seeing a reduction on total costs and expenses by $1,400,000 or 18% compared to Q4 'twenty three. G and A costs for the Q1 were $3,400,000 which includes a non cash stock compensation expense of $500,000 and non recurring legal fees of $400,000 This is a bit $1,800,000 decrease compared to the same period in 2023 and a reduction of $300,000 sequentially. We continue our focus to further reduce G and A throughout the remainder of 'twenty four to meet our target of $8,300,000 for 'twenty four non for 24 cash G and A previously disclosed. Net income for the quarter was $414,000 This is a $14,600,000 increase from Q1 'twenty three and a $40,000,000 increase from the Q4 of 2023. The net income number includes an $8,300,000 gain in fair value of warrant liabilities for the Q1. Speaker 400:12:46Adjusted net loss for the Q1 was $7,400,000 compared to a loss of $8,800,000 for the prior quarter and a loss of $10,700,000 in the same period prior year. As you can see from these results, we are seeing the benefits of cost cutting initiatives that we embarked on in Q4 2023. Cash at the end of Q1 2024 was $6,200,000 compared to $800,000 at the end of 2023. The higher balance in cash was the result of $11,700,000 net cash received from 13.3 $1,000,000 of funding received in January. Per our debt covenants, we are required to have $5,700,000 cash at the end of the first quarter, which we exceeded by $500,000 During April, we also received an extra $1,000,000 of funding from current investors. Speaker 400:13:45As a company, we are working hard to preserve cash, while further reducing costs and gaining efficiencies. The results we are presenting this quarter show a marked improvement from previous quarters, and we expect to continue to see this improve in future quarters as additional savings are realized. I will now pass back over to John. Speaker 200:14:06Thank you, Vicki. We continue to focus on cost here and we also focus on getting our vehicles in the market and having them generate daily revenue. Speaker 300:14:16Now to get them in Speaker 200:14:17the market does require the testing and certification. And as I learned when I came here, that's a pretty expensive endeavor. And we studied that and being focused on cost, we came up with a new arrangement. I'm excited to announce today. We'll be working with Florida Atlantic University and that's going to allow us to reduce our testing and certification costs for our new vehicles that will be going into daily revenue in the market, but 90 plus percent from what we spent on certifying and testing the first vehicle. Speaker 200:14:51It's a tremendous improvement in what it costs to test and certify vehicle. What it's also going to do because Florida Atlantic University is well recognized in AUVs and robotics It allows us to work with a university where we can create a pipeline of new hires and students and train the next generation of operators that are needed for AUVs. It's very exciting to take that much cost out of a process that's required and to build a strong relationship with a powerful university in this space. Now with that, operator, that will conclude our remarks for today and we're prepared Speaker 300:15:26to take a few questions. Operator00:15:29Thank And it appears that we have no questions at this time. I will now turn the program back over to our presenters for any additional remarks. Speaker 200:16:30Well, this will be the first time I've concluded the call with no questions and I'll either assume that we answered all of them or that you're really excited and you're looking for an opportunity to get a few shares. But we just thank you for participating in the call. We're very excited about the commercial team that we've put together here at Nauticus over the last several months to augment what is an incredibly strong research development technology group. I think the combination of the 2 and our focus on cash preservation and cost management give us a really exciting future. So thank you so much and we'll look forward to presenting our numbers here on the next call. Speaker 200:17:11Take care.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallNauticus Robotics Q1 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) Nauticus Robotics Earnings HeadlinesNauticus Robotics Announces Start of the 2025 Offshore SeasonApril 24 at 9:32 PM | prnewswire.comEarnings call transcript: Nauticus Robotics Q4 2024 sees revenue drop, stock downApril 18, 2025 | uk.investing.comReal Americans Don’t Wait on Wall Street’s Next MoveWhat's happening in the markets right now should concern every freedom-loving American who's worked hard and saved smart. Your 401(k) doesn't deserve to be dragged through the mud by tariffs, trade wars, reckless spending, and political standoffs. And you don't have to stand by while Wall Street plays roulette with your future.April 25, 2025 | Premier Gold Co (Ad)Nauticus Robotics, Inc. (KITT) Q4 2024 Earnings Call TranscriptApril 16, 2025 | seekingalpha.comNauticus Robotics, Inc.: Nauticus Robotics Announces Results for Year-End 2024April 16, 2025 | finanznachrichten.deNauticus Robotics Announces Results for Year-End 2024April 15, 2025 | prnewswire.comSee More Nauticus Robotics Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Nauticus Robotics? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Nauticus Robotics and other key companies, straight to your email. Email Address About Nauticus RoboticsNauticus Robotics (NASDAQ:KITT) develops ocean robots, cloud software, and services to the ocean industry. The company offers Aquanaut, an autonomous underwater vehicle with sensor suite, which provides capability to observe and inspect subsea assets or other subsea features; Olympic Arm, an all-electric manipulator designed for a variety of intervention tasks on work class remotely operated vehicles; and ToolKITT, a software platform, which consists of interrelated products for ocean sensing, manipulation, autonomous behaviors, survey, search and recovery, and manual intervention. The company was founded in 2014 and is headquartered in Webster, Texas.View Nauticus Robotics ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Market Anticipation Builds: Joby Stock Climbs Ahead of EarningsIs Intuitive Surgical a Buy After Volatile Reaction to Earnings?Seismic Shift at Intel: Massive Layoffs Precede Crucial EarningsRocket Lab Lands New Contract, Builds Momentum Ahead of EarningsAmazon's Earnings Could Fuel a Rapid Breakout Tesla Earnings Miss, But Musk Refocuses and Bulls ReactQualcomm’s Range Narrows Ahead of Earnings as Bulls Step In Upcoming Earnings Cadence Design Systems (4/28/2025)Welltower (4/28/2025)Waste Management (4/28/2025)AstraZeneca (4/29/2025)Booking (4/29/2025)DoorDash (4/29/2025)Honeywell International (4/29/2025)Mondelez International (4/29/2025)PayPal (4/29/2025)Regeneron Pharmaceuticals (4/29/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 5 speakers on the call. Operator00:00:00Good day, everyone, and welcome to today's Nauticus Robotics 2024 Q1 Earnings Call. At this time, all participants are in a listen only mode. Later, you will have the opportunity to ask questions during the question and answer session. Operator00:00:30Please note this call is being recorded, and I will be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Kristin Morman, Special Project Lead. Speaker 100:00:43Thank you, and good morning, everyone. Joining me today and participating in the call are John Gibson, CEO and President Vicki Hay, Interim CFO Nick Bigney, General Counsel and other members of our leadership team. On today's call, we will first provide prepared remarks concerning our operations and financial results. Following that, we will answer questions. We have now released our results for the Q1 of 2024, which are available on our website. Speaker 100:01:19In addition, today's call is being webcast and a replay will be available on our website shortly following the conclusion of the call. Please note that comments we make on today's call regarding projections or our expectations for future events are forward looking statements. Forward looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and the risk factors discussed in our filings with the SEC. Speaker 100:02:01Also, please refer to the reconciliations provided in our earnings press release as we may discuss non GAAP metrics on this call. I will now turn it over to John. Speaker 200:02:13Well, good morning. Thank you, Kristen, and thank you all for joining us for our conference call. I'm extremely excited about the company, but it's my style. I tend to go straight into a couple of challenges that the company faces and then we're going to switch over to the excitement of the pipeline of opportunities that are building around OPMOT toolkit. Now our listing makes us both unique and valuable rather than having to be a limited partner and a venture capital fund, which requires a $250,000 minimum to participate, we offer an opportunity to invest directly in an emerging high growth technology business serving the ocean market with anticipated CAGRs and the ocean market ranging from 8% to 15% for offshore drilling and wind respectively through the year 2,030. Speaker 200:03:03We have a talented team and an AUV ready to start generating revenue from the industrial, environmental, commercial and defense sectors. Nauticus is a high risk investment, but with the potential to generate returns greater than the market. Now while we are public, we mostly resemble an emerging growth company seeking to be round of funding. We are a technology play in the emerging blue economy with a very unique product that satisfies the needs of our customers to reduce costs, reduce emissions, reduce labor requirements, improve safety and most importantly gather vast quantities of subsea data to enable the sustainable development of the ocean. We have fantastic products coming into a strong market this year. Speaker 200:03:50We are shifting from being dependent upon defense to being entrenched in the industrial, commercial and environmental sectors as well. We're building a company to attract, buy and hold investors. Now the first issue, we need for you to vote yes on the reverse split item number 3 of the special meeting being hosted on May 20, 2024. We want to remain listed. There are two requirements, bid price and market cap. Speaker 200:04:19We have until July 22, 2024, to cure having a bid price below $1 We have until August 13, 2024 to cure the market cap being less than 35,000,000 dollars Let's address the bid price being over $1 first. We believe we are on track to be daily revenue generating Q3 2024 with the Aquanaut. We have numerous blue chip customers ready to put Aquanaut to work. Operating margins for Aquanaut should be strong because we conducted an aggressive cost management strategy over the last several months. With revenue, we believe the share price will recover. Speaker 200:05:01However, timing is critical to make July 22, 2024. We cannot control the overall market, the weather, elections, interest rates, inflation, etcetera. And hence we need to prepare for what we can control. So what are we doing that we can control? Well, we are preparing requests for a 6 month extension to get in compliance with the bid price being over $1 There's no guarantee that the extension will be granted, but we plan to be ready to submit. Speaker 200:05:32To enhance our chances of getting above $1 we intend to keep you well informed via 8ks and press releases as we convert existing contracts to revenue and secure new contracts. We have previously announced contracts with Shell, Petrobras and Equinor. All three remain committed to deploying the Aquanaut as soon as we complete our certification. We have found ways with several customers to expand the potential scope of work beyond the announced contracts. We're confident in the near term completion of the final certification that we currently have a vessel on standby in the Gulf share price. Speaker 200:06:20How much it improves has uncertainty and is very difficult to model. What we do know is our recommendation for a reverse share split can solve this problem and is 100% within our control. Voting yes on the reverse split, item number 3 of the special meeting allows us to get back into compliance on the bid price being above $1 Please vote yes. I do not like recommending this vote. I understand reverse splits typically are done as a last resort typically result in a share price reduction of 10 plus percent following the action. Speaker 200:06:57At this time, we're recommending the split because it is within our control. It can cure the bid price compliance issue with NASDAQ. And unlike typical situations, it's a needed bridge to get the company to generating daily commercial revenue and not an ask based upon a company that's failing, but an ask from a company that is emerging. Our second issue, the reverse split does not cure the market cap compliance issue with NASDAQ. We do believe with the cure of the bid price with the reverse split, we can successfully gain an extension of 6 months from August 13, 2024 to cure the market cap shortfall. Speaker 200:07:39We believe the increase in services revenue from leasing Aquanaut in the 3rd quarter will help close the gap on market cap. We could cure the market cap issue without curing the bid price issue, however, at a share price of over $0.60 And that would still leave us out of compliance on the bid price. Again, the reasoning for asking for the vote on the reverse split is that we need to get in compliance with the bid price as well. Now that we're through with compliance, let's focus on revenue. Things are looking strong in the second half of twenty twenty four. Speaker 200:08:14That's the reason I'm super excited about the future. And for our operational and business development update, I'd like to turn it over to Jorge or if you're in Speaker 300:08:23Brazil, Georgi. Thank you very much, John. I appreciate that. I'm pleased to report positive developments regarding Aquanaut vehicle and toolkit. We have secured strong support from our existing customers and are actively collaborating to facilitate Aquanaut's commercial project eligibility in Q3 of 2024. Speaker 300:08:43The Aquanaut vehicle in conjunction with our toolkit software suite addresses a significant unmet need within the market. The integrated solution offers a compelling value proposition, thus simultaneously reducing operational costs and minimizing environmental impact. I have recently met with several prospective clients and we are actively cultivating a promising sales pipeline. This pipeline includes 6 potential long term blue chip customers across diverse industry segments, encompassing environmental services, oil and gas operations and technology companies. Timely certification of Equinor in 2024 presents a strategic opportunity to secure budget for the remaining of the year and lay groundwork for continued accelerated growth in 2025. Speaker 300:09:31We will continue to collaborate with existing customers to expedite the Aquanox certification process. We're also actively quantifying the cost savings and environmental benefits of the Aquanox vehicle and toolkit software to further solidify its value proposition. Back to you, John. Speaker 200:09:50I appreciate that, Jorge. Now this update reflects a very positive trajectory for our company and it underlies a robust market demand for our products and positions our company for significant commercial expansion with our products, both software and Ocanaut. You may have noticed that Jorge did not however mention our work in the defense sector. Nauticus has a long history of defense revenues. And as I mentioned on our previous earnings calls, we intend to seek work in the defense sector to the extent that it is profitable and a fit for us. Speaker 200:10:23However, because both of our size and the nature of defense spending, our revenue from defense can be uneven and sporadic. And so we've chosen to transition to a daily revenue commercial model and we think that's a really important change for our company. Now with that, I'm going to turn it over to Vicki to walk you through our financial results. Vicki? Speaker 400:10:44Thanks, John, and good morning. I am pleased to be presenting our Q1 financial results. Revenue for the Q1 was $500,000 which is down $2,400,000 from the same period last year and down $600,000 from the prior quarter. Revenue recognized in the Q1 is a combination of continuing government revenue along with the start of our commercial revenue relating to the Equinor vehicle. Operating expenses for the Q1 were 6 $100,000 which is a $2,600,000 decrease from Q1 'twenty three and a sequential decrease of 29,300,000 The 4th quarter results included a $25,300,000 impairment and a $2,500,000 expense loss on contract. Speaker 400:11:34However, when considering both of these factors, we are seeing a reduction on total costs and expenses by $1,400,000 or 18% compared to Q4 'twenty three. G and A costs for the Q1 were $3,400,000 which includes a non cash stock compensation expense of $500,000 and non recurring legal fees of $400,000 This is a bit $1,800,000 decrease compared to the same period in 2023 and a reduction of $300,000 sequentially. We continue our focus to further reduce G and A throughout the remainder of 'twenty four to meet our target of $8,300,000 for 'twenty four non for 24 cash G and A previously disclosed. Net income for the quarter was $414,000 This is a $14,600,000 increase from Q1 'twenty three and a $40,000,000 increase from the Q4 of 2023. The net income number includes an $8,300,000 gain in fair value of warrant liabilities for the Q1. Speaker 400:12:46Adjusted net loss for the Q1 was $7,400,000 compared to a loss of $8,800,000 for the prior quarter and a loss of $10,700,000 in the same period prior year. As you can see from these results, we are seeing the benefits of cost cutting initiatives that we embarked on in Q4 2023. Cash at the end of Q1 2024 was $6,200,000 compared to $800,000 at the end of 2023. The higher balance in cash was the result of $11,700,000 net cash received from 13.3 $1,000,000 of funding received in January. Per our debt covenants, we are required to have $5,700,000 cash at the end of the first quarter, which we exceeded by $500,000 During April, we also received an extra $1,000,000 of funding from current investors. Speaker 400:13:45As a company, we are working hard to preserve cash, while further reducing costs and gaining efficiencies. The results we are presenting this quarter show a marked improvement from previous quarters, and we expect to continue to see this improve in future quarters as additional savings are realized. I will now pass back over to John. Speaker 200:14:06Thank you, Vicki. We continue to focus on cost here and we also focus on getting our vehicles in the market and having them generate daily revenue. Speaker 300:14:16Now to get them in Speaker 200:14:17the market does require the testing and certification. And as I learned when I came here, that's a pretty expensive endeavor. And we studied that and being focused on cost, we came up with a new arrangement. I'm excited to announce today. We'll be working with Florida Atlantic University and that's going to allow us to reduce our testing and certification costs for our new vehicles that will be going into daily revenue in the market, but 90 plus percent from what we spent on certifying and testing the first vehicle. Speaker 200:14:51It's a tremendous improvement in what it costs to test and certify vehicle. What it's also going to do because Florida Atlantic University is well recognized in AUVs and robotics It allows us to work with a university where we can create a pipeline of new hires and students and train the next generation of operators that are needed for AUVs. It's very exciting to take that much cost out of a process that's required and to build a strong relationship with a powerful university in this space. Now with that, operator, that will conclude our remarks for today and we're prepared Speaker 300:15:26to take a few questions. Operator00:15:29Thank And it appears that we have no questions at this time. I will now turn the program back over to our presenters for any additional remarks. Speaker 200:16:30Well, this will be the first time I've concluded the call with no questions and I'll either assume that we answered all of them or that you're really excited and you're looking for an opportunity to get a few shares. But we just thank you for participating in the call. We're very excited about the commercial team that we've put together here at Nauticus over the last several months to augment what is an incredibly strong research development technology group. I think the combination of the 2 and our focus on cash preservation and cost management give us a really exciting future. So thank you so much and we'll look forward to presenting our numbers here on the next call. Speaker 200:17:11Take care.Read morePowered by