Exhibit 99.1
Crown Electrokinetics Reports Fiscal 2022 Second Quarter Financial Results
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Finalizing Customer Discussions with Hudson Pacific Properties to Install Product
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Los Angeles, California, November 12, 2021 -- Crown Electrokinetics Corp. (NASDAQ: CRKN) (“Crown” or the “Company”), a leading smart glass technology company, will today report its financial results for the fiscal 2022 second quarter ended September 30, 2021.
“We had a productive second quarter in which we significantly expanded our patent portfolio, signed our first commercial customer agreement with MetroSpaces and grew our team, including the addition of seasoned product development executive Mindy Hamlin as VP of Engineering, a key hire for our leadership team” said Doug Croxall, Crown’s CEO. “We are also working closely with our strategic investor Hudson Pacific Properties to install Crown’s Smart Window Inserts in two locations within their California office portfolio, with possible extension to a third location in the Pacific Northwest.”
Corporate Updates During and Subsequent to the Fiscal Second Quarter 2022
| ● | Acquired 10 patents from IBM Corporation complementing its patent portfolio of broad applicability in the smart glass technology area. Crown has a total of 34 patents and applications that offer coverage in key global markets. |
| ● | Signed first commercial customer agreement in late September with MetroSpaces, a proptech-focused real estate holding company, to install Smart Window Insert in 70,000 square-foot Houston, Texas office building. |
| ● | Appointed Mindy Hamlin as Vice President of Engineering, effective September 8, 2021. Hamlin has over 30 years of experience in leading and building teams across a full product development lifecycle as well as expertise in R&D, new product development, process engineering, factory design and automation. |
Financial Results for Fiscal Second Quarter 2022
Net Loss: Net loss for the quarter ended September 30, 2021 was $5.7 million which included $3.1 million of non-cash stock-based compensation expense. This Net loss was $0.1 million lower than the $5.8 million recorded during the quarter ended September 30, 2020, which included $1.0 million of non-cash stock-based compensation expense.
Operating Expenses: Operating Expenses were $5.7 million comprising $3.1 million of non-cash stock-based compensation, $1.3 million of payroll expense, $0.8 million in consulting and professional fees, and $0.4 million of operating overhead. Operating expenses for the quarter ended September 30, 2020 were $2.1 million which included non-cash stock-based compensation of $1.0 million.
Other Expenses: Other expense was nominal during the three months ended September 30, 2021. Other expense was $3.7 million for the three months ended September 30, 2020, and was primarily due to interest incurred on convertible notes.
Cash Position: As of September 30, 2021, cash and cash equivalents were $9.7 million.
Conference Call and Webcast Information
The Company will host a conference call and audio webcast this morning at 11:00 a.m. Eastern Time featuring remarks by Doug Croxall, Chairman & CEO and Joel Krutz, CFO.
| Event: | Crown Electrokinetics Fiscal 2022 Second Quarter Earnings Conference Call |
| Date: | Friday, November 12, 2021 |
| Time: | 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time |
| Live Call: | + 1-877-451-6152 (Toll Free) or +1-201-389-0879 (International) |
| Webcast: | https://78449.themediaframe.com/dataconf/productusers/vvdb/mediaframe/47130/indexl.html |
For interested individuals unable to join the conference call, a replay will be available through November 26, 2021, at +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International). Participants must use the following code to access the replay of the call: 13724379. An archived version of the webcast will also be available on Crown’s Investor Relations site: https://ir.crownek.com/.
About Crown Electrokinetics
Crown is a smart glass technology company and the creator of DynamicTint - We Make Your Glass Smarter™. Originally invented by Hewlett-Packard (HP, Inc.), our technology allows any glass surface to transition between clear and dark in seconds. With applications to a wide array of windows, including commercial buildings, automotive sunroofs, and residential skylights, we partner with leading glass and film manufacturers for mass production and distribution. At the core of our technology is a thin film that is powered by electrically-charged pigment which not only replaces common window tints but is also a more sustainable alternative to traditional window treatments. With its unique ability to be retrofitted to existing glass, DynamicTint™ offers myriad benefits related to reducing carbon emissions. The company is supported by a robust patent portfolio. For more information, please visit WWW.CROWNEK.COM.
Forward-Looking Statements
This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, and terms such as “anticipate,” “expect,” “intend,” “may,” “will,” “should” or other comparable terms, involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Those statements include statements regarding the intent, belief or current expectations of Crown Electrokinetics and members of its management, as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in Crown Electrokinetics’ periodic reports filed with the SEC, and that actual results may differ materially from those contemplated by such forward-looking statements. Except as required by federal securities law, Crown Electrokinetics undertakes no obligation to update or revise forward-looking statements to reflect changed conditions.
Investor Contacts:
Brent Cross
Crown Electrokinetics Corp.
Phone: 203-209-1934
Email: Brent.Cross@crownek.com
Allison Soss
KCSA Strategic Communications
Phone: 212-896-1267
Email: crownek@KCSA.com
Media Contact:
Kai Sato
Crown Electrokinetics Corp.
Phone: +1 (800) 674-3612
Email: kai@crownek.com
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Crown Electrokinetics, Corp
Balance Sheets
| September 30, 2021 | March 31, 2021 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 9,701 | $ | 15,297 | ||||
| Prepaid & other current assets | 705 | 346 | ||||||
| Total current assets | 10,406 | 15,643 | ||||||
| Property and equipment, net | 484 | 209 | ||||||
| Intangible assets, net | 1,783 | 1,650 | ||||||
| Other assets | 28 | 20 | ||||||
| TOTAL ASSETS | $ | 12,701 | $ | 17,522 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 426 | $ | 285 | ||||
| Accrued expenses | 480 | 211 | ||||||
| Notes payable | 439 | 439 | ||||||
| Total current liabilities | 1,345 | 935 | ||||||
| Total liabilities | 1,345 | 935 | ||||||
| Commitments and Contingencies (Note 10) | ||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Preferred stock, par value $0.0001; 50,000,000 shares authorized, no shares outstanding | - | - | ||||||
| Series A preferred stock, par value $0.0001; 300 shares authorized, 251 shares outstanding as of September 30, 2021 and March 31, 2021, respectively | - | - | ||||||
| Series B preferred stock, par value $0.0001; 1,500 shares authorized, 1,443 shares outstanding as of September 30, 2021 and March 31, 2021, respectively | - | - | ||||||
| Series C preferred stock, par value $0.0001; 600,000 shares authorized, 500,756 shares outstanding as of September 30, 2021 and March 31, 2021, respectively | - | - | ||||||
| Common stock, par value $0.0001; 200,000,000 shares authorized; 14,530,126 and 14,856,480 shares outstanding as of September 30, 2021 and March 31, 2021, respectively | 1 | 1 | ||||||
| Additional paid-in capital | 79,659 | 73,789 | ||||||
| Accumulated deficit | (68,304 | ) | (57,203 | ) | ||||
| Total stockholders’ equity | 11,356 | 16,587 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 12,701 | $ | 17,522 | ||||
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Crown Electrokinetics, Corp
Statements of Operations
| Three Months Ended September 30 | ||||||||
| 2021 | 2020 | |||||||
| Operating expenses: | ||||||||
| Research and development | $ | 787 | $ | 423 | ||||
| Selling, general and administrative | 4,865 | 1,659 | ||||||
| Total operating expenses | 5,652 | 2,082 | ||||||
| Loss from operations | (5,652 | ) | (2,082 | ) | ||||
| Other expense: | ||||||||
| Other expense | (49 | ) | (54 | ) | ||||
| Interest expense | (2 | ) | (1,090 | ) | ||||
| Loss on exchange of notes payable for common stock and warrants | - | (1,500 | ) | |||||
| Loss on extinguishment of debt | - | (180 | ) | |||||
| Change in fair value of warrant liability | - | (861 | ) | |||||
| Total other expense | (51 | ) | (3,685 | ) | ||||
| Net loss | $ | (5,703 | ) | $ | (5,767 | ) | ||
| Net loss per share, basic and diluted: | $ | (0.39 | ) | $ | (0.67 | ) | ||
| Weighted average shares outstanding, basic and diluted: | 14,510,818 | 8,548,506 | ||||||
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| Six Months Ended September 30, | ||||||||
| 2021 | 2020 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (11,101 | ) | $ | (16,229 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Stock-based compensation | 5,440 | 9,050 | ||||||
| Issuance of common stock to consultants | 244 | 282 | ||||||
| Depreciation and amortization | 138 | 35 | ||||||
| Loss on extinguishment of debt | - | 198 | ||||||
| Loss on exchange of notes payable for common stock and warrants | - | 1,521 | ||||||
| Amortization of debt discount | - | 1,990 | ||||||
| Non-cash expenses for placement agent | - | 55 | ||||||
| Change in fair value of warrant liability | - | 738 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Prepaid and other assets | (367 | ) | (79 | ) | ||||
| Account payable | 141 | (111 | ) | |||||
| Accrued expenses | 269 | (522 | ) | |||||
| Accrued interest | - | 278 | ||||||
| Net cash used in operating activities | (5,236 | ) | (2,794 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchase of equipment | (315 | ) | (29 | ) | ||||
| Purchase of patents | (231 | ) | - | |||||
| Net cash used in investing activities | (546 | ) | (29 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from the issuance of common stock, net of fees | - | 1,599 | ||||||
| Proceeds from the exercise of stock options | 186 | - | ||||||
| Repayment of senior secured promissory note | - | (200 | ) | |||||
| Proceeds from PPP loan | - | 205 | ||||||
| Repayment of notes payable | - | (53 | ) | |||||
| Proceeds from issuance of senior secured convertible notes and common stock warrants | - | 2,050 | ||||||
| Common stock repurchased and subsequently canceled | - | (225 | ) | |||||
| Net cash provided by financing activities | 186 | 3,376 | ||||||
| Net (decrease) increase in cash | (5,596 | ) | 553 | |||||
| Cash — beginning of period | 15,297 | 48 | ||||||
| Cash — end of period | $ | 9,701 | $ | 601 | ||||
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