Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

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Segment Reporting
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Crown Electrokinetics Corp. operates in two segments: the Electrokinetic Film Technology division and the Fiber Optics division.

Electrokinetic Film Technology Division: This division focuses on developing and selling optical switching films that can be embedded between sheets of glass or applied to the surface of glass or other rigid substrates like acrylic, to electronically control opacity. The technology, initially developed by Hewlett-Packard, enables a transition between clear and dark states in seconds. It is aimed at various applications including commercial buildings, automotive sunroofs, and residential windows. Crown partners with leading glass and film manufacturers for the mass production and distribution of its DynamicTint product. This segment also includes Smart Window Inserts, designed for retrofitting in commercial and residential settings, offering dynamic tinting along with additional insulation and soundproofing.

Fiber Optics Division: Crown’s involvement in fiber optics is relatively recent, marked by the acquisition of Amerigen 7 LLC’s assets, which was focused on the construction of 5G fiber optics infrastructure. Under the Crown Fiber Optics Corp. subsidiary, the company provides contracting services to the fiber optics and telecommunications infrastructure industry. Services range from program management and engineering to the construction of aerial and underground fiber networks. This division aims to capitalize on the demand for enhanced telecommunications bandwidth, with efforts to expand through selective market share increase, potential acquisitions, and leveraging new equipment like micro trenchers to gain a strategic advantage.

Our CODM does not evaluate operating segments using asset or liability information.

The following table presents a comparative summary of the Company’s revenues by reportable segment for the periods presented (in thousands):
For the three months ended,
June 30		 For the six months ended
June 30,
2024 2023 2024 2023
Segment Revenue
Film $ —  $ —  $ —  $ — 
Fiber Optics
 $ 4,648  $ 37  $ 5,330  59
Total Revenue $ 4,648  $ 37  $ 5,330  $ 59 
Operations by reportable segment for the three months ended June 30, 2024 and 2023, are as follows (in thousands):

For the three months ended June 30, 2024
Film Fiber Optics
Corporate and Other(a)
Total
Revenue $ —  $ 4,648  $ —  $ 4,648 
Cost of revenue, excluding depreciation and amortization —  (4,039) —  (4,039)
Depreciation and amortization (141) (78) —  (219)
Research and development (1,111) —  —  (1,111)
General and administrative —  (616) (3,571) (4,187)
Loss from operations (1,252) (85) (3,571) (4,908)
       
Other income (expense):      
Interest income (expense) —  (154) 9  (145)
Change in fair value of warrants —  —  23  23 
Other expense —  —  1  1 
Total other income (expense) —  (154) 33  (121)
       
Loss before income taxes $ (1,252) $ (239) $ (3,538) $ (5,029)
(a)The Corporate and Other are expenses that are not currently allocated between our film and fiber divisions.


For the three months ended June 30, 2023
Film Fiber Optics Corporate and Other(a) Total
Revenue $ —  $ 37  $ —  $ 37 
Cost of revenue, excluding depreciation and amortization —  (23) —  (23)
Depreciation and amortization (61) (20) —  (81)
Research and development (490) —  —  (490)
General and administrative —  (2,408) (1,920) (4,328)
Loss from operations (551) (2,414) (1,920) (4,885)
       
Other income (expense):      
Interest expense —  (3) (2,505) (2,508)
Loss on extinguishment of debt —  —  (2,345) (2,345)
Change in fair value of warrants —  —  2,130  2,130 
Change in fair value of notes —  —  (6,883) (6,883)
Other expense —  —  (28) (28)
Total other income (expense) —  (3) (9,631) (9,634)
       
Loss before income taxes $ (551) $ (2,417) $ (11,551) $ (14,519)
(a) The Corporate and Other are expenses that are not currently allocated between our film and fiber divisions.
For the six months ended June 30, 2024
Film Fiber Optics Corporate and Other(a) Total
Revenue $ —  $ 5,330  $ —  $ 5,330 
Cost of revenue, excluding depreciation and amortization —  (5,819) —  (5,819)
Depreciation and amortization (283) (3) —  (286)
Research and development (1,867) —  —  (1,867)
General and administrative —  (750) (5,220) (5,970)
Loss from operations (2,150) (1,242) (5,220) (8,612)
       
Other income (expense):      
Interest expense —  (163) (842) (1,005)
Other expense —  —  (24) (24)
Total other income (expense) —  (163) (866) (1,029)
       
Loss before income taxes $ (2,150) $ (1,405) $ (6,086) $ (9,641)

(a)The Corporate and Other are expenses that are not currently allocated between our film and fiber divisions.
For the six months ended June 30, 2023
Film Fiber Optics Corporate and Other(a) Total
Revenue $ —  $ 59  $ —  $ 59 
Cost of revenue, excluding depreciation and amortization —  (54) —  (54)
Depreciation and amortization (181) (82) —  (263)
Research and development (1,031) —  —  (1,031)
Selling, general and administrative (3,504) (2,936) (1,282) (7,722)
Loss from operations (4,716) (3,013) (1,282) (9,011)
       
Other income (expense):      
Interest expense —  (10) (4,515) (4,525)
Loss on extinguishment of warrant liability —  —  (504) (504)
Loss on extinguishment of debt —  —  (2,345) (2,345)
Gain on issuance of convertible notes —  —  64  64 
Change in fair value of warrants —  —  7,736  7,736 
Change in fair value of notes —  —  (7,000) (7,000)
Other expense —  —  (1,234) (1,234)
Total other income (expense) —  (10) (7,798) (7,808)
       
Loss before income taxes $ (4,716) $ (3,023) $ (9,080) $ (16,819)

(a)The Corporate and Other are expenses that are not currently allocated between our film and fiber divisions.
The following table presents long-lived assets by segment (in thousands):

For the six months ended,
June 30
2024 2023
Film Segment $ 3,418  $ 9,389 
Fiber Optics Segment $ 3,248  $ 1,933 
Other assets(a)
$ 160  $ 33 
(a)“Other assets” primarily includes security deposits made with respect to the Company’s lease agreements.