• Revenue: $1.8 million for 2024, down $4.8 million from 2023.
• Operating Expenses: $24.9 million, a $36.8 million improvement from 2023.
• G&A Costs: $13.4 million, improved by $4.9 million compared to 2023.
• Net Loss: $134.9 million, an $84.2 million increase from 2023.
• Adjusted Net Loss: $26.1 million, showing an $8.2 million improvement from the prior year.
• Cash Position: $1.2 million at the end of 2024, compared to $0.7 million at the end of 2023.
• Debt Conversion: Converted $35.5 million of debt to preferred stock in December 2024.
• Share Issuance: Issued and sold almost 7.5 million shares for net proceeds of $19.4 million in January 2025.

• Warning! GuruFocus has detected 6 Warning Signs with KITT.

Release Date: April 16, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Nauticus Robotics Inc (NASDAQ:KITT) successfully transitioned from a research and development company to a commercial revenue-generating entity in 2024.
• The company executed its inaugural offshore operations with the Aquanaut vehicle, proving its technology and setting the stage for future contracts.
• Nauticus Robotics Inc (NASDAQ:KITT) acquired SeaTrepid, enhancing its market access and reducing customer concentration.
• The company achieved compliance with NASDAQ listing standards, improving its financial standing.
• Nauticus Robotics Inc (NASDAQ:KITT) has a strong pipeline for 2025, with significant offshore commercial work expected, including long-term contracts and new customer engagements.

Negative Points

• Revenue for 2024 was $1.8 million, a significant decline from the previous year due to reduced government contracts.
• The company reported a net loss of $134.9 million for 2024, primarily due to a substantial loss on debt extinguishment.
• Nauticus Robotics Inc (NASDAQ:KITT) had to restate its 2024 financial statements due to incorrect accounting treatment of a debt transaction.
• Cash at the end of 2024 was only $1.2 million, indicating tight liquidity despite recent financing efforts.
• The company faces challenges in securing capital to expand its fleet, which is necessary to meet growing demand and maximize revenue potential.

Q & A Highlights

Q: Can you provide insights into the potential revenue for 2025 and the operational days for the season? A: The offshore season typically runs from March/April to October/November, depending on weather conditions. We have two Aquanaut vehicles and two Comanches operational, with potential to add more if demand justifies it. We expect 2025 revenue to exceed $16 million, with potential upside if additional assets are deployed. John Gibson, President, Interim CEO and Daniel Dehart, Field Operations Leader

Q: What differentiates Nauticus Robotics' autonomous underwater vehicles from competitors? A: Our vehicles feature autonomous manipulators, allowing for tasks like object retrieval and fluid sampling, which competitors lack. They operate untethered, relying on advanced collision avoidance software, and can communicate at depths up to 3,000 meters. Our design allows for hovering and 360-degree views, unlike torpedo-style competitors. John Gibson, President, Interim CEO

Q: What are the capital requirements for expanding operations, and how do you plan to fund them? A: We aim to deploy additional assets based on demand, potentially using contract-based lending to fund these expansions without diluting shareholders. Each asset can generate $6-8 million per season, and we are focused on securing contracts to justify this investment. John Gibson, President, Interim CEO

Q: What market dynamics are contributing to a strong offshore season in 2025? A: Stable oil prices and government support for drilling have led to increased offshore activity. There's also a focus on decommissioning and infrastructure improvements, creating demand for our services. The market is recovering from a period of underinvestment, driving current demand. John Gibson, President, Interim CEO and Steve Walsh, Sales Leader

Q: How is Nauticus Robotics adapting to the current market opportunities? A: We are leveraging our unique technology and customer relationships to meet high demand. Our focus remains on delivering high-margin services and expanding our customer base. The combined capabilities of our ROVs and Aquanaut vehicles are well-received, enhancing our market position. John Gibson, President, Interim CEO and Steve Walsh, Sales Leader

For the complete transcript of the earnings call, please refer to the full earnings call transcript.