Nauticus Robotics, Inc. Q4 FY2024 earnings call

• 2024 was a transformational year with a shift from R&D to commercial revenue generation. - Inaugural offshore season for Aquanaut vehicle, with new contracts pipeline. - ToolKITT software operation confirmed on SeaTrepid ROV, opening market for sales. - Manipulator team developing Olympic Arm variant for Aquanaut, making it first with autonomous manipulators. - Acquisition of SeaTrepid provided access to new customers and improved logistics. - Alliance with Leidos in defense sector. - Deleveraged balance sheet and regained NASDAQ compliance.

In 2024, revenue was $1.8 million, down $4.8 million from 2023. The decline was due to reduced government contracts, but commercial revenue from Aquanaut vehicle operations was recognized for the first time. Operating expenses for 2024 were $24.9 million, a $36.8 million improvement from 2023. Net loss for the year was $134.9 million, an $84.2 million increase from 2023. Adjusted net loss was $26.1 million, showing an $8.2 million improvement despite the revenue decline. Cash at the end of 2024 was $1.2 million.

• 2025 expected to show significant improvement from 2024, with inflection point as offshore industry moves to autonomy. - Anticipate substantial revenue growth and margin improvement in 2025. - 2025 revenue expected to be greater than $16 million, assuming additional assets are deployed.

• Forward-looking statements subject to risks and uncertainties beyond control. - Restatement of financials due to incorrect debt accounting treatment. - Market risks affecting commercialization and revenue generation. - Dependence on successful deployment and adoption of autonomous technologies.

Q: Can you help understand the 2025 top line potential, including days in season, number of vehicles?

A: The season runs ~7 months (March-October/November). Have 2 Aquanaut vehicles and 2 Comanches working, with potential to invest in additional assets if demand warrants. Expect 2025 revenue greater than $16 million.

Q: What is Nauticus' differentiation vs competitors?

A: Differentiators include leadership in manipulators for autonomous underwater vehicles, untethered operation, advanced collision avoidance, ability to stop, hover, rotate for 360-degree views, and deeper depth capability (3,000 meters) compared to competitors.

Q: Talk about capital requirements and liquidity for potentially investing in third Aquanaut and ROV?

A: Need capital to prove technology is commercial. If demand warrants, can use contract-based lending to invest in additional assets without diluting shareholders, with each asset potentially generating $6-8 million per season revenue.