2Q22 Results: Net Loss Decreased By $0.9 Million; First-Gen Product Delayed; Achieved a Key Milestone by Registering First Purchase Order



KEY POINTS
  • Operating expenses decreased by $0.9 million to $4.5 million, compared with $5.4 million in 2Q21, comprising $1.5 million of non-cash stock-based compensation, $1.5 million of payroll expense, $0.8 million in consulting and professional fees, and $0.6 million of operating overhead. Access complete results here.
  • Earlier this year, Crown implemented a substantial organizational restructuring to optimize its internal processes. This has materially reduced its operating expenses to the extent that the employee cost base has decreased by an annualized $2.9 million or 31%.
  • Net loss decreased to $4.5 million, compared with $5.4 million in 2Q21. EPS improved from ($0.38) to ($0.27).
  • During the quarter, the company deployed $2.3 million of cash for operations and $0.3 million for investing activities, while it raised $1.1 million from financing activities. The cash balance ended at $1.0 million. Crown has access to a $10 million standby letter of credit and a $2 million at-the-market offering.
  • The company expects the first-generation smart window inserts to go into production within the coming months after facing a delay (original plan before summer 2022) owing to the unavailability of a material component. It is now aiming to deliver the product before the end of 2022.
  • Crown has received its first two customer purchase orders from Hudson Pacific Properties, which will install the inserts in two of its San Francisco Bay area buildings. This is an important milestone on the company’s path to commercialization.
  • The company has entered a second debt funding term sheet and is exploring both alternatives for the best possible terms. The management intends to select one of the two within 30 days.
  • The equity and the debt funds will be used to finance two purpose-built roll-to-roll lines producing Crown’s DynamicTint film and to support working capital until 2023 year-end.
FINANCIAL SNAPSHOT

• Operating expenses decreased by $0.9 million to $4.5 million, compared with $5.4 million in 2Q21, comprising $1.5 million of non-cash stock-based compensation, $1.5 million of payroll expense, $0.8 million in consulting and professional fees, and $0.6 million of operating overhead. Access complete results here.

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