Nauticus Robotics, Inc. Q2 FY2024 earnings call

• Completed a reverse split on July 22 to meet NASDAQ's continuing listing standards, with the stock price now over the $1 minimum bid price.
• Focused on 2025 backlog, with commercial and defense work in progress, and plans to release press updates on contract progress as they close.
• Finished Phase 1 for the largest South American deepwater operator, received a letter for the successful completion of a DIU project, and planned to deploy the Aquanaut Mark 2 vehicle to the Gulf of Mexico in July.
• Partnered with Florida Atlantic University to test the Aquanaut Mark 2 vehicle, completing missions, leak detection testing, and obstacle collision avoidance testing; mobilizing Vehicle 2 from FAU to the Gulf of Mexico and preparing Vehicle 1 for testing at FAU in Q4.
• Working with advisers to meet NASDAQ's market capitalization requirement. Nick Bigney leaving, with John Simington joining as incoming General Counsel.

Revenue for the second quarter of 2024 was $500,000, which was the same as the first quarter of 2024 but down $600,000 from the same period in 2023. Operating expenses for the second quarter were $6.5 million, a $1.5 million decrease from Q2 2023 but a sequential increase of $0.5 million. The net loss for the quarter was $5.4 million, a $26 million reduction from Q2 2023 but a $4.9 million sequential increase. Cash at the end of Q2 2024 was $8.1 million, up from $0.7 million at the end of 2023 due to funding received in January 2024 and a $9.5 million raise through an at-the-market facility in the second quarter. Additionally, the Drix was moved back to property, plant, and equipment (PPE) from held for sale, and the Hydronaut vessel, which had been in held for sale since December 2023, has a signed offer expected to close prior to the end of the third quarter of 2024.

• Focus on securing 2025 backlog and releasing progress on contracts as they close.
• Scheduled to deploy the Aquanaut Mark 2 vehicle to the Gulf of Mexico in July 2024.
• Hydronaut vessel sale expected to close prior to the end of the third quarter of 2024.

• Forward-looking statements are subject to risks and uncertainties beyond control; listeners are advised to review earnings releases and SEC filings for risk factors.

Q: What's the current market cap and number of outstanding shares?

A: Roughly 4.6 million shares outstanding with a market cap of approximately $11 million, and on a fully diluted basis, the market cap is closer to $40 million to $50 million.

Q: Does that meet NASDAQ requirements?

A: Working with NASDAQ on meeting requirements, and they will look at certain criteria but a path forward is believed to exist.

Q: On revenue from AUVs, what's the daily rate and modeling?

A: Daily rates range from $25,000 to $75,000, modeling 200 days a year for work, with weather impacts and different rates in international work.

Q: When will Vehicle 2 be deployed?

A: Vehicle 2 is being mobilized back to the Gulf of Mexico in August, and Vehicle 1 will go to FAU for testing in Q4.

Q: About toolKITT, any updates?

A: Excited about toolKITT, working with an ROV company, and the software is core to the business, with plans to move forward with partnerships.

Q: Any updates on defense contracting?

A: Actively negotiating a potential defense contract, ongoing discussions technically and commercially, and will release press when concrete information is available.