Crown Electrokinetics Reports Fiscal 2022 First Quarter Financial Results

CORVALLIS, Ore., Aug. 16, 2021 /PRNewswire/ — Crown Electrokinetics Corp. (NASDAQ: CRKN) (“Crown” or the “Company”), a smart glass technology company, today reported its financial results for the fiscal 2022 first quarter ended June 30, 2021. 

“Our team remains steadfast in our strategy to bring Crown’s first-generation product, the DynamicTintTM Smart Glass Insert to market to help reduce a building’s energy costs and its carbon emissions. During the first quarter of fiscal 2022, we launched the first field test for our inserts with a large commercial REIT. The initial data collected suggests that our inserts can reduce energy costs of office buildings by approximately 26%, which we believe is just the baseline. In addition, there is preliminary evidence that our inserts will save energy related to the HVAC heating as well as cooling,” said Doug Croxall, Crown Chairman & CEO. “We are enthusiastic to continue our analysis launching an updated field test while working with prospective customers, using this preliminary data, to gain a deep understanding of the impact our technology can have on our customer’s sustainability and cost-saving initiatives.”

“Crown is well-positioned in our growth phase to penetrate the smart glass market with our inserts. We believe our differentiated product that is deployed as an after-market retrofit solution at an affordable price will appeal to a large customer base looking to improve energy savings and lower carbon emissions,” concluded Mr. Croxall.

Corporate Updates During and Subsequent to the Fiscal First Quarter 2022

Financial Results for Fiscal First Quarter 2022

Net Loss: Net loss was $5.4 million for the quarter ended June 30, 2021, and $10.5 million during the quarter ended June 30, 2020. The main driver was SG&A expenses of $5.0 million, of which non-cash stock-based compensation is $2.6 million.

Research and development (R&D) expense: R&D expenses were $0.4 million for the quarter ended June 30, 2021, a decreased compared to $1.4 million for the quarter ended June 30, 2020. This is primarily due to lower stock-based compensation expenses related to employee and officer grants last year.

Selling, general and administrative (SG&A) expense: SG&A expenses were $5.0 million and $7.9 million for the three months ended June 30, 2021 and 2020, respectively. This differential was primarily due to lower stock-based compensation expenses of $4.6 million partially offset by increases in compensation $0.7 million as well as consulting and professional fees $0.7 million.

Other Income (Expense): Other expenses were nominal for the quarter, compared to $1.2 million incurred for the same quarter last year. The decrease is primarily due to reductions in interest expense following the conversion of all convertible debt notes at the end of fiscal 2021.

Cash Position: As of June 30, 2021, cash and cash equivalents were $12.5 million and working capital was $11.9 million.  

Conference Call and Webcast Information

The Company will host a conference call and audio webcast today, Monday, August 16th at 11:00 a.m. Eastern Time featuring remarks by Doug Croxall, Chairman & CEO and Joel Krutz, CFO.

Event:

Crown Electrokinetics Fiscal 2022 First Quarter Earnings Conference Call

Date:

Monday, August 16, 2021

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:

http://public.viavid.com/index.php?id=1457777

For interested individuals unable to join the conference call, a replay will be available through August 30, 2021, 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: 13722237. 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. For more information, please visit WWW.CROWNEK.COM.

Forward-Looking Statements
This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, and terms such as “anticipate,” “expect,” “intend,” “may,” “will,” “should” or other comparable terms, involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Those statements include statements regarding the intent, belief or current expectations of Crown Electrokinetics and members of its management, as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in Crown Electrokinetics’ periodic reports filed with the SEC, and that actual results may differ materially from those contemplated by such forward-looking statements. Except as required by federal securities law, Crown Electrokinetics undertakes no obligation to update or revise forward-looking statements to reflect changed conditions.

Crown Electrokinetics, Corp

Balance Sheets

June 30, 2021

March 31, 2021

(Unaudited)

ASSETS

Current assets:

Cash

$                  12,478

$            15,297

Prepaid & other current assets

255

346

Total current assets

12,733

15,643

Property and equipment, net

275

209

Intangible assets, net

1,603

1,650

Other assets

29

20

TOTAL ASSETS

$                  14,640

$            17,522

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$                       321

$                 285

Accrued expenses

104

211

Notes payable

439

439

Total current liabilities

864

935

Total liabilities

864

935

Commitments and Contingencies (Note 10)

STOCKHOLDERS’ EQUITY: 

Preferred stock, par value $0.0001; 50,000,000 shares authorized, no shares outstanding

Series A preferred stock, par value $0.0001; 300 shares authorized, 251 shares outstanding as of
June 30, 2021 and March 31, 2021, respectively

Series B preferred stock, par value $0.0001; 1,500 shares authorized, 1,443 shares outstanding
as of June 30, 2021 and March 31, 2021, respectively

Series C preferred stock, par value $0.0001; 600,000 shares authorized, 500,756 shares
outstanding as of June 30, 2021 and March 31, 2021, respectively

Common stock, par value $0.0001; 200,000,000 shares authorized; 14,920,741 and 14,856,480
shares outstanding as of June 30, 2021 and March 31, 2021, respectively

1

1

Additional paid-in capital

76,376

73,789

Accumulated deficit

(62,601)

(57,203)

Total stockholders’ equity

13,776

16,587

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$                  14,640

$            17,522

 

Crown Electrokinetics, Corp

Statements of Operations

Three Months Ended June 30,

2021

2020

Operating expenses:

Research and development

$                 435

$              1,373

Selling, general and administrative

4,961

7,938

Total operating expenses

5,396

9,311

Loss from operations

(5,396)

(9,311)

Other income (expense):

Interest expense

(2)

(1,234)

Loss on coversion of notes

(22)

Loss on extinguishment of debt

(18)

Change in fair value of warrant liability

123

Total other expense

(2)

(1,151)

Net loss

$             (5,398)

$           (10,462)

Net loss per share, basic and diluted:

$               (0.38)

$               (1.81)

Weighted average shares outstanding, basic and diluted:

14,315,142

5,780,844

 

Crown Electrokinetics, Corp

Statement of Cashflows

Three Months
Ended June 30,

2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss

$              (5,398)

$           (10,462)

Adjustments to reconcile net loss to net cash used in operating activities:

Stock-based compensation

2,339

8,079

Issuance of common stock to consultants

244

282

Depreciation and amortization

66

15

Loss on extinguishment of debt

18

Loss on conversion of notes

22

Amortization of debt discount

1,052

Change in fair value of warrant liability

(123)

Changes in operating assets and liabilities:

Prepaid and other assets

82

6

Account payable

36

(112)

Accrued expenses

(107)

(190)

Accrued interest

127

Net cash used in operating activities

(2,738)

(1,286)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of equipment

(85)

Net cash used in investing activities

(85)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from the exercise of stock options

4

Repayment of senior secured promissory note

(200)

Proceeds from PPP loan

205

Proceeds from issuance of senior secured convertible notes and common stock warrants

2,050

Common stock repurchased and subsequently canceled

(225)

Net cash provided by financing activities

4

1,830

Net (decrease) increase in cash

(2,819)

544

Cash — beginning of period

15,297

48

Cash — end of period

$              12,478

$                  592

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING
ACTIVITIES:

Unpaid research and development license included in accounts payable

$                      –

$                  100

Beneficial conversion feature in connection with notes payable

$                      –

$                  619

Issuance of common stock in connection with conversion of notes

$                      –

$               2,151

Issuance of common stock in connection with notes payable

$                      –

$                  751

Issuance of common stock in satisfaction of accounts payable

$                      –

$                  122

SUPPLEMENTAL CASH FLOW INFORMATION

Cash paid for interest

$                       2

$                    56

Cash paid income taxes

$                      –

$                    –

 

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SOURCE Crown Electrokinetics

Crown Electrokinetics Reports Fiscal 2022 First Quarter Financial Results WeeklyReviewer

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