Crown Electrokinetics Corp. (CRKN) 2024 Q3 法說會逐字稿

(Music Playing) Good day, everyone and welcome to Crown's third quarter, 2024 conference call (operator instruction).

（音樂播放）大家好，歡迎參加 Crown 2024 年第三季電話會議（操作員指令）。

Jason Assad, Director of Corporate Communications for introductions and the reading of the Safe Harbour statement.

企業傳播總監 Jason Assad 介紹並宣讀了安全港聲明。

Mr Assad. Please go ahead.

阿薩德先生。請繼續。

Thank you operator.

謝謝運營商。

Good morning, everyone and welcome to Crown's third quarter, 2024. Results conference call with us on today's call are Douglas Croxall, Chief Executive Officer and Chairman and Joel Krutz, Chief Financial Officer.

大家早安，歡迎來到 Crown 2024 年第三季。今天的業績電話會議由執行長兼董事長 Douglas Croxall 和財務長 Joel Krutz 出席。

Before we begin, I'd like to remind you that today's call contains forward, contains certain forward-looking statements from management made within the meaning of the section 27 A of the Securities Act of 1933 as amended and section 21 A of the Securities and Exchange Act of 1934 as amended.

在我們開始之前，我想提醒您，今天的電話會議包含前瞻性陳述，包含管理層根據1933 年《證券法》修訂案第27 A 條和《證券法》第21 A 條的含義作出的某些前瞻性聲明。

Words such as should projects expects, intends plans beliefs, anticipates hopes, estimates and variations of such words and similar expressions are intended to identify forward-looking statements.

諸如「應該項目預期」、「打算計劃信念」、「預期希望」、「估計」等詞語以及此類詞語的變體和類似表達旨在識別前瞻性陳述。

These statements are subject to numerous conditions, many of which will be on the control of the company including those set forth in the risk factor section of the company's most recent 2024 quarterly 10-Q filing copies of these documents are available on the SEC website at sec.gov.

這些聲明受到許多條件的約束，其中許多條件將由公司控制，包括公司最新 2024 年季度 10-Q 的風險因素部分中規定的條件，這些文件的副本可在 SEC 網站上獲取： SEC.政府。

Actual results may differ materially from those expressed or implied by such forward-looking statements.

實際結果可能與此類前瞻性陳述明示或暗示的結果有重大差異。

The company undertakes no obligation to update these statements for revisions or changes after the date of this call, except as required by law.

除非法律要求，否則本公司沒有義務在本次電話會議之後更新這些聲明的修訂或更改。

Now. It's my pleasure to introduce Douglas Croxall Chief Executive Officer and Chairman of Crown.

現在。我很高興向大家介紹道格拉斯‧克羅克斯 (Douglas Croxall)，他是 Crown 執行長兼董事長。

Doug. Please go ahead.

道格.請繼續。

All right. Thank you, Jason.

好的。謝謝你，傑森。

Thanks everyone for joining today for our third quarter, 2024 earnings call.

感謝大家今天參加我們的 2024 年第三季財報電話會議。

We had our best quarter to date, achieving record revenue of $8 million delivering on our top line forecast as we scale.

我們迎來了迄今為止最好的季度，收入達到創紀錄的 800 萬美元，隨著規模的擴大，我們的營收預測也實現了。

We expect this momentum of meeting and exceeding guidance to continue. This quarter's growth was primarily driven by contracts from our newer businesses.

我們預計這種達到並超越指導的勢頭將繼續下去。本季的成長主要是由我們新業務的合約推動的。

Before we dive into the updates on the three business divisions. I want to take a moment to discuss our vision for Crown and the foundation guiding everything that we do.

在我們深入了解三個業務部門的最新動態之前。我想花點時間討論一下我們對 Crown 的願景以及指導我們所做一切的基金會。

At Crown we are committed to delivering innovative technology solutions that address critical challenges across multiple industries from advancing sustainable infrastructure to promoting environmental responsibility.

在 Crown，我們致力於提供創新的技術解決方案，解決從推進永續基礎設施到促進環境責任等多個行業的關鍵挑戰。

Our mission is to drive positive societal change that benefits both our communities and the environment. We're working towards a future where our solutions meet industry demands and shape a better tomorrow.

我們的使命是推動積極的社會變革，使我們的社區和環境受益。我們正在努力創造一個未來，讓我們的解決方案滿足行業需求並塑造更美好的明天。

We are actively making this vision a reality through our three business divisions, smart windows, Fiber optics and water solutions.

我們正在透過智慧窗戶、光纖和水解決方案三個業務部門積極實現這一願景。

Each business spearheaded by extremely talented industry experts, is focused on delivering cutting edge solutions that are disrupting the status quo while redefining and modernizing industry standards.

每項業務均由才華橫溢的行業專家領導，專注於提供顛覆現狀的尖端解決方案，同時重新定義行業標準並使其現代化。

While we're enthusiastic about the impact of our current offerings, we also have ambitious plans to continue crown's growth, believing the best is yet to come. We anticipate driving future growth both organically and through select strategic accretive acquisitions.

雖然我們對當前產品的影響充滿熱情，但我們也有雄心勃勃的計劃來繼續皇冠的增長，相信最好的尚未到來。我們預計將透過有機方式和選擇性的策略性增值收購來推動未來的成長。

Now let's discuss our operational updates starting with the Smart Windows division which is focused on developing technology for buildings that improves energy efficiency, lowers carbon footprint and increases comfort.

現在讓我們從智慧窗戶部門開始討論我們的營運更新，該部門專注於開發提高能源效率、降低碳足跡和增加舒適度的建築技術。

Recently, we unveiled our 3 Phase rollout strategy for the smart window inserts expected to commence in Q1 of 25.

最近，我們公佈了智慧窗嵌件的三階段推出策略，預計將於 25 年第一季開始。

While the development of our smart window inserts has admittedly been a costly time consuming L&D laden process. We're rapidly approaching commercialization where we anticipate starting to generate return on investment.

誠然，我們的智慧窗嵌件的開發是一個成本高昂、耗時且充滿研發的過程。我們正在迅速接近商業化，預計將開始產生投資回報。

Importantly, while our launch has taken longer than anticipated, the overall market opportunity and total addressable market has grown in tandem.

重要的是，雖然我們的推出時間比預期的要長，但整體市場機會和總目標市場同步成長。

In the first Phase or the Alpha Phase, we plan to deliver prototype smart window inserts to a select group of customers in major us cities.

在第一階段或 Alpha 階段，我們計劃向美國主要城市的選定客戶群提供智慧窗嵌原型。

These targeted installations will support an eventual expansion across entire buildings for our customers.

這些有針對性的安裝將為我們的客戶最終擴展到整個建築提供支援。

This Phase is designed to provide us with valuable feedback on both products performance and the overall customer experience enabling us to refine and enhance our solution as we progress toward full market launch.

此階段旨在為我們提供有關產品性能和整體客戶體驗的寶貴回饋，使我們能夠在全面推向市場的過程中完善和增強我們的解決方案。

Following Alpha, our Beta Phase will replace the prototypes with more advanced inserts, introducing updated features in a fully integrated control system while expanding the number of installations.

繼 Alpha 階段之後，我們的 Beta 階段將用更先進的插件取代原型，在完全整合的控制系統中引入更新的功能，同時擴大安裝數量。

Again, the insights gathered in beta will be crucial to shape the final first generation product.

同樣，在測試版中收集的見解對於塑造最終的第一代產品至關重要。

Finally, in the Charlie Phase, we'll prepare for market launch by establishing scalable manufacturing, customer management, installation and sales teams and start pre sales with delivery anticipated in early 2026.

最後，在查理階段，我們將透過建立可擴展的製造、客戶管理、安裝和銷售團隊來為市場推出做好準備，並開始預售，預計於 2026 年初交付。

After years of dedicated development, we're getting very excited to near Alpha launch. All right. Next is Fiber optic division.

經過多年的專注開發，我們對即將推出 Alpha 版本感到非常興奮。好的。接下來是光纖部門。

The Fiber optics division specializes in the design and construction of Fiber optic networks connecting rural and urban communities.

光纖部門專門從事連接農村和城市社區的光纖網路的設計和建造。

We deliver state of the art Fiber optic solutions by deploying high tech equipment and subcontractor expertise in the third quarter.

我們在第三季度透過部署高科技設備和分包商專業知識來提供最先進的光纖解決方案。

We secured 3 major customer agreements, expanding our footprint in Oregon and Nevada. Crown is a trusted partner to a range of clients from fortune 500 Tier 1 telecoms to local municipalities.

我們獲得了 3 個主要客戶協議，擴大了我們在俄勒岡州和內華達州的足跡。Crown 是從財富 500 強一級電信公司到地方市政當局等一系列客戶值得信賴的合作夥伴。

We see a strong demand for our services. We believe our uncontracted pipeline revenue is estimated at over $50 million.

我們看到對我們服務的強勁需求。我們相信我們的未簽約管道收入估計超過 5000 萬美元。

Lastly, let's review our water solutions division which provides multiple solutions that improve water quality for communities.

最後，讓我們回顧一下我們的水解決方案部門，該部門提供多種解決方案來改善社區的水質。

The division includes our Slant Wells business line and our lead, our lead pipe services business line with Element 82 and PE pipeline. I'll begin with Slant Wells.

該部門包括我們的 Slant Wells 業務線以及我們的鉛管服務業務線（包括 Element 82 和 PE 管道）。我將從傾斜威爾斯開始。

Our first of a kind proprietary design as previously announced, we have been commissioned by twin Dolphins in Cabo San Lucas to install 2 Slant Wells in an area challenged with clean water access.

如同先前所宣布的，我們是第一個專有設計，由卡波聖盧卡斯的雙胞胎海豚公司委託，我們在清潔水獲取困難的地區安裝了 2 口斜井。

I'm pleased to report that in the third quarter, we broke ground on the installation and are on track to conclude before the end of the year.

我很高興地報告，在第三季度，我們的安裝破土動工，並預計在年底前完成。

Our project has driven a lot of interest in the Los Cabos area for additional slant well installations. We have now engaged with new customers for survey work to determine if their subsurface conditions will work for our Slant Wells.

我們的計畫引起了洛斯卡沃斯地區對額外斜井安裝的濃厚興趣。我們現在已經與新客戶合作進行調查工作，以確定他們的地下條件是否適合我們的斜井。

The strong demand we are seeing underscores a significant opportunity to expand our Slant Well installations not only throughout Mexico but also in other regions of the world that face similar challenges with clean water access.

我們所看到的強勁需求突顯了我們不僅在墨西哥各地而且在世界其他面臨清潔水獲取類似挑戰的地區擴大 Slant Well 設施的重大機會。

We are solving a very prevalent problem and confident that our Slant Wells represent a scalable revenue stream as we position ourselves as a trusted solution provider for water scarce regions.

我們正在解決一個非常普遍的問題，並相信我們的斜井代表著可擴展的收入來源，因為我們將自己定位為缺水地區值得信賴的解決方案提供者。

Now let's cover our work with lead pipes through Element 82 and PE pipelines. Our efforts to support the US. Environmental Protection Agencies recently passed lead and copper rule improvements. Legislation also known as LCRI have gained significant momentum this quarter.

現在讓我們介紹一下通過 Element 82 的鉛管和 PE 管道的工作。我們為支持美國所做的努力。環保機構最近通過了鉛和銅規則的改進。也稱為 LCRI 的立法本季取得了顯著的進展。

With an estimated $9million to $12 million lead pipes in the US. There's a highly unmet need and opportunity for lead pipe identification and lead pipe remediation to help the millions of American households at risk of lead exposure.

美國的鉛管價值估計為 900 萬至 1200 萬美元。鉛管識別和鉛管修復的需求和機會尚未得到滿足，以幫助數百萬面臨鉛暴露風險的美國家庭。

Element 82 secured initial lead pipe protection projects in Florida and New York representing an important first step in identifying and mitigating lead risk in these communities.

Element 82 在佛羅裡達州和紐約州獲得了初步鉛管保護項目，這是識別和減輕這些社區鉛風險的重要第一步。

We also signed over $15 million in revenue in element 82 lead pipe inspection projects across Washington DC and Maryland making our expansion into these regions.

我們還在華盛頓特區和馬裡蘭州的 element 82 鉛管檢查項目中簽署了超過 1500 萬美元的收入，從而將我們的業務擴展到這些地區。

Most recently, we were awarded two initial lead pipe remediation contracts for PE pipelines totalling $33 million while pleased with these recent wins.

最近，我們獲得了兩份總價值 3300 萬美元的 PE 管道初步鉛管修復合同，同時我們對最近的這些勝利感到非常滿意。

We believe we've just scratched the surface. We now have over $48 million in anticipated secured projects and currently estimate over $70 million in expected projects.

我們相信我們剛剛觸及了表面。我們目前預計已獲得的項目超過 4800 萬美元，目前預計預期項目超過 7000 萬美元。

Now I'm going to pass the call over to Joel who will review our financial results in greater detail, Joel.

現在我要把電話轉給喬爾，他將更詳細地審查我們的財務業績，喬爾。

Thank you, Douglas and good day everybody.

謝謝你，道格拉斯，大家好。

Today, I'll review our financial results for the 3 months and 9 months ended September 30, 2024 comparing them to the period same periods in 2023 we reported record revenues of $8 million for the quarter which was an increase from 0 in the same period of 2023.

今天，我將回顧我們截至2024 年9 月30 日的3 個月和9 個月的財務業績，並將其與2023 年同期進行比較，我們報告的該季度收入創紀錄的800 萬美元，同期為0 增長2023 年。

The growth in revenue is primarily attributable to new contracts from Crown's Fiber optics and water solutions divisions which include the new Slant wells and Element 82 lead detection business gross profit was $1.4 million for the quarter compared to 0 in the same period of 2023 R&D.

營收的成長主要歸功於 Crown 光纖和水解決方案部門的新合同，其中包括新的 Slant 井和 Element 82 鉛檢測業務，本季毛利潤為 140 萬美元，而 2023 年同期研發毛利潤為 0。

Expenses were $0.7 million for the quarter increased from $0.5 million for the same period of 2023. The increase being primarily driven by accelerated preparations for our upcoming alpha launch plus salaries and benefits.

本季費用為 70 萬美元，高於 2023 年同期的 50 萬美元。這一成長主要是由於我們即將推出的 alpha 版本的加速準備以及薪資和福利。

G&A expenses were $6.5 million for the quarter. Up from $2.9 million for the same period of 2023. The increase in G&A expense is primarily due to increases in comp benefits with the new business leadership and crowns new divisions, stock compensation expense, professional fees and other expenses made up balance.

該季度的一般管理費用為 650 萬美元。高於 2023 年同期的 290 萬美元。一般及行政費用的增加主要是由於新業務領導層和新部門的增加所帶來的薪資福利增加、股票補償費用、專業費用和其他費用的平衡。

Operating expenses were approximately $7.2 million for the quarter. Up from $3.4 million in the same period of 2023.

本季營運費用約為 720 萬美元。高於 2023 年同期的 340 萬美元。

Net loss was $5.9 million for the quarter compared with a net loss of $2.9 million in the same period of 2023.

該季度淨虧損為 590 萬美元，而 2023 年同期淨虧損為 290 萬美元。

Moving on to the financial results for the 9 months end of 30, 2024. We've achieved record revenues of $13.4 million increased from $0.1 million in the same period of 2023.

接下來是截至 2024 年 30 日止 9 個月的財務表現。我們的營收從 2023 年同期的 10 萬美元增加到 1,340 萬美元，創歷史新高。

Gross profit was $0.9 million compared to a gross profit of point of 0 in the same period of 2023 R&D, expenses were $2.6 million compared to $1.5 million for the same period of 2023 and G&A expenses were $12.8 million. Up from $10.5 million for the same period of 2023.

毛利為 90 萬美元，而 2023 年同期研發毛利潤為 0，支出為 260 萬美元，而 2023 年同期為 150 萬美元，一般管理費用為 1,280 萬美元。高於 2023 年同期的 1,050 萬美元。

Operating expenses overall were approximately $15.4 million compared to $12.4 million in 2023. And net loss was $15.5 million compared to $19.7 million in the same period of 2023 9 months year-to-date.

整體營運費用約為 1,540 萬美元，而 2023 年為 1,240 萬美元。淨虧損為 1,550 萬美元，而 2023 年同期 9 個月的淨虧損為 1,970 萬美元。

While cash flow remains challenging to predict due to the level of new businesses crowns is capturing and executing as well as the working capital investment required upfront.

儘管由於新業務的規模正在捕獲和執行以及前期所需的營運資本投資，現金流仍然難以預測。

We're closely managing expenses to align with our growth plans and anticipate reaching profitability in 2025.

我們正在密切管理費用，以配合我們的成長計劃，並預計在 2025 年實現盈利。

A testament to our strategic process moving to the balance sheet and our stockholders equity was $9.9 million as of September 30, 2024 and cash was approximately $3.1 million.

這證明了我們的策略流程已轉移到資產負債表上，截至 2024 年 9 月 30 日，我們的股東權益為 990 萬美元，現金約為 310 萬美元。

Now I'll turn the call back to Douglas to discuss our strategic growth plans.

現在我將把電話轉回給道格拉斯，討論我們的策略性成長計畫。

All right, thanks Joel.

好的，謝謝喬爾。

As we look forward to the end of 24 and 25 we continue to build momentum across our diverse yet complementary businesses. Each with very strong pipelines of projects in place.

展望 24 和 25 年底，我們將繼續在多元化但互補的業務中建立動力。每個項目都擁有非常強大的項目儲備。

We've made significant headway in our Fiber optic and water solution divisions which are driving new interest and substantial growth opportunities.

我們的光纖和水解決方案部門取得了重大進展，這正在推動新的興趣和大量的成長機會。

Our customer engagements have broadened, reaffirming our position as a trusted partner in Fiber optics, construction and a trusted leader in addressing critical water infrastructure needs.

我們的客戶參與範圍不斷擴大，重申了我們作為光纖、建築領域值得信賴的合作夥伴以及滿足關鍵水基礎設施需求方面值得信賴的領導者的地位。

With our expanded capabilities and expert leadership Crown is well positioned to achieve our growth objectives for the remainder of 24 and beyond. We reiterate our revenue guidance of $9 million in Q4 and $22 million for the end of the year 24.

憑藉我們不斷擴大的能力和專家領導力，Crown 已做好準備，能夠實現我們在 24 年後及以後的成長目標。我們重申第四季的營收預期為 900 萬美元，24 年底的營收預期為 2,200 萬美元。

We're pleased to introduce our full year of 2025 outlook. We are expecting revenue between $30 million and $35 million in fiscal calendar 2025. Importantly, we remain on track to achieve profitability in 2025.

我們很高興介紹 2025 年全年展望。我們預計 2025 財年的營收將在 3,000 萬至 3,500 萬美元之間。重要的是，我們仍有望在 2025 年實現盈利。

Last night, I got a note from 1 of our strategic partners, Chuck Hansen at Electro Scan. He provides us with the equipment that does the lead pipe inspection work.

昨晚，我收到了我們的策略合作夥伴之一——Electro Scan 的 Chuck Hansen 發來的一張便條。他為我們提供了進行鉛管檢查工作的設備。

And Chuck wanted me to know that there's, there's a lot of questions about the incoming administration and the new proposed chief of the EPA.

查克想讓我知道，關於即將上任的政府和新提案的環保署長，存在著許多問題。

And Chuck reminded me that it was Trump's first administration that actually took a 1991 proposal that became lead and copper rule improvement.

查克提醒我，川普第一屆政府實際上採納了 1991 年的一項提案，該提案後來成為鉛和銅規則的改進。

That's the legislation that we're working under today. It was dusted off in 2017. It was finalized under Biden's regime in 2021 and we expect it to continue and to grow under Trump's administration.

這就是我們今天所依據的立法。2017年，它已被掃除灰塵。該協議於 2021 年在拜登政權下最終確定，我們預計該協議將在川普政府領導下繼續下去並不斷發展。

So with that, I'd like to thank everyone who were all today. Thank our investors for being supportive.

因此，我要感謝今天在座的所有人。感謝我們的投資者的支持。

We're very excited about the future that we have ahead of us and the foundations that we put in place already and we look forward to talking to you again in the new Year.

我們對我們面前的未來以及我們已經奠定的基礎感到非常興奮，我們期待在新的一年裡再次與您交談。

Thank you.

謝謝。

Thank you. And this concludes today's conference. You may disconnect your line at this time.

謝謝。今天的會議到此結束。此時您可以斷開線路。

Thank you for your Participation.

感謝您的參與。

(Music Playing) and (Multiple Speakers).

（音樂播放）和（多個發言者）。

Goodbye.

再見。