Nauticus Robotics, (NASDAQ: KITT), known for developing AI-driven autonomous robots for ocean industries, has released its second quarter financial results for the period ending June 30, 2023.
Key developments in the reported period include:
- A newly-signed contract with Shell for a project in the Gulf of Mexico Princess Field. This collaboration may lead to potential multi-million dollar contracts in the upcoming years, contingent on the project's success.
- A contract with Petrobras, a global energy powerhouse, involving the deployment of Nauticus's Aquanaut autonomous subsea robot. This deal could represent an annual market opportunity exceeding $100 million for Nauticus.
- Another award from the ongoing contract with Leidos Holdings, for further development of an Aquanaut variant, anticipating customer adoption later this year.
- Progress with the U.S. Defense Innovation Unit, advancing specialized autonomous platforms for the U.S. Navy and U.S. Marine Corps with Nauticus' toolKITT software package.
- Closing of the initial segment of a $15 million senior secured debt facility led by current strategic equity investors.
Nic Radford, CEO of Nauticus, expressed optimism about the company's trajectory, emphasizing the increased demand for their autonomous services. Recent contracts with giants like Petrobras and Shell underscore this, along with discussions with other major players in the sector. He noted the immense potential market, given the vast sums these entities allocate annually for offshore operations. Radford also mentioned a slight dip in the quarter's government-related project revenue, attributable to contract authorization delays, but anticipates a rebound in upcoming periods.
Financially, Q2 2023 witnessed Nauticus generating revenue of $1.1 million, compared to $2.8 million during the same period in 2022. This reduction is linked primarily to contract authorization holdups with government bodies. Operating expenses stood at $8.0 million, rising by $2.5 million from Q2 2022. Contributing factors to this increase were non-cash stock compensation expenses and heightened general and administrative costs, a consequence of transitioning to public operations and company growth.
The quarter recorded a net income attributable to common stockholders at $20.7 million or $0.49 per diluted share. In comparison, Q2 2022 experienced a net loss of $3.4 million or $0.35 per diluted share. The positive shift arises predominantly from changes in warrant liability valuations. After adjustments, the net loss was $8.1 million or $0.20 per diluted share for Q2 2023, in contrast to Q2 2022's net loss of $3.4 million or $0.35 per diluted share.
Rangan Padmanabhan, Chief Financial Officer of Nauticus, acknowledged the ongoing support from their investors, emphasizing the strategic decision to pursue debt funding to catalyze future revenue growth.
As of the end of the second quarter, Nauticus reported having $4.4 million in cash and cash equivalents, with a working capital surplus of $11.7 million.
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