News - Full Story

Net Loss: Net loss for the year ended December 31, 2022, was $29.0 million This included $9.7 million of non-cash Other Expense primarily related to the balance sheet restructuring Crown executed in the first half of 2023. Net losses from operations were $19.3 million compared to 2022's $15.1 million net loss. This loss consisted of $5.8 million related to investment in the new Fiber Optics business and $13.5 million for the Film division, which also includes the corporate cost base.

Revenues: Total 2023 Revenues were $0.2 million which were all attributable to the Fiber division with the majority being booked in the 4th quarter.

Operating Expenses: Total Operating Expenses for the year-ended 2023 were $19.4 million with $0.9 million related to Fiber's cost of revenues, $1.6 million of depreciation, amortization and impairment, $2.2 million of Film R&D, which was $1.9 million lower than 2022, and $14.7 million of SG&A which is $4.1 million higher year on year - all due to investment in establishing the Fiber division.

Cash Position: For the year ended December 31, 2023, the Company deployed $16.7 million of cash for operations and $2.3 million for capital investment in the Fiber business. Crown raised $19.2 million from financing activities in 2023 with $14.8 million coming from common equity issuance via the ATM and Equity lines of credit, $3.1 million coming from Preferred stock and $1.3 million from debt notes. As of December 31, 2023, cash and cash equivalents were $1.1 million.

The Company will host a conference call and audio webcast that morning at 11:00 a.m. Eastern time featuring remarks by Doug Croxall, Chairman & CEO and Joel Krutz, COO.

To participate in this event, please log-on or dial-in approximately 5 to 10 minutes before the beginning of the call.

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Call me link will be made active 15 minutes prior to scheduled start time.

Crown is comprised of two divisions, Fiber Optics and Electrokinetics Film. The Electrokinetics Film division is a smart glass technology and the creator of our Smart Window Insert based on its patented electrokinetic film. Crown's Fiber Optics division is a builder of underground fiber optic networks as well as other utility infrastructure projects.

Statements in this news release may be "forward-looking statements". Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions, or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and Crown Electrokinetic Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.

This press release does not constitute a public offer of any securities for sale. Any securities offered privately will not be or have not been registered under the Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

	Year ended December 31,
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(28,984	)	$	(14,315	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation		714			2,405
Depreciation and amortization		733			503
Loss on extinguishment of warrant liability		504			-
Change in fair value of warrant liability		(10,458	)		(1,023	)
Change in fair value of liability		(401	)		-
Gain on issuance of convertible note		(64	)		-
Loss on extinguishment of debt		2,345			-
Change in fair value of notes		7,040			149
Amortization of deferred debt issuance costs		9,341			73
Amortization of right of use assets		626			494
Other expenses		628			-
Impairment of Goodwill		649			-
Intangible asset impairment		200			-
		214			-
Loss on disposal of equipment		144			52
Changes in operating assets and liabilities:
Prepaid and other assets		61			182
Accounts receivable		(83	)		-
Accounts payable		1,253			413
Accrued expenses		440			323
Lease liability		(1,062	)		(396	)
Net cash used in operating activities		(16,160	)		(11,140	)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid for acquisition of Amerigen 7		(645	)		-
Purchase of equipment		(2,173	)		(751	)
Purchase of patents		-			(61	)
Net cash used in investing activities		(2,818	)		(812	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the exercise of warrants		2,062			-
Proceeds from the issuance of common stock and warrants, net of fees		-			855
Proceeds from the issuance of common stock / At-the-market offering		8,398			1,295
Proceeds from the issuance of notes in connection with Line of Credit		2,350			-
Offering costs for the issuance of common stock / At-the-market offering		(170	)		(46	)
Proceeds from issuance of senior secured convertible notes and common stock warrants		-			3,500
Proceeds from issuance of Series D preferred stock and warrants, net of fees		-			1,039
Proceeds from issuance of Series F-1 preferred stock		2,328			-
Proceeds from issuance of Series F-2 preferred stock		748			-
Proceeds from issuance of January promissory notes, net of fees paid		1,357			-
Repayment of notes payable		(2,348	)		-
Proceeds from the issuance of common stock in connection with equity line of credit, net of offering costs		4,489			-
Net cash provided by financing activities		19,214			6,643

Net increase / decrease in cash		238			(5,309	)
Cash - beginning of period		821			6,130
Cash - end of period		1,059		$	821

Crown Electrokinetics Corp. Reports Year End 2023 Financial Results and Revises Guidance