Nauticus Robotics Inc

Previous wording

Three months ended March 31, 2024, Compared to three months ended March 31, 2023

Current wording

Three and six months ended June 30, 2024, compared to three and six months ended June 30, 2023

Previous wording

Revenue. For the three months ended March 31, 2024, revenue decreased $2,356,426, or 84% as compared to the three months ended March 31, 2023 primarily driven by a reduction in government related contracts.

Current wording

Revenue. For the three and six months ended June 30, 2024, revenue decreased $626,407 and $2,982,833, or 56% and 76%, respectively, as compared to the three and six months ended June 30, 2023, primarily driven by a reduction in government related contracts.

Previous wording

Cost of revenue. For the three months ended March 31, 2024, cost of revenue decreased $838,312, or 29% as compared to the three months ended March 31, 2023 driven by the decrease in revenue.

Current wording

Cost of revenue. For the three months ended June 30, 2024, cost of revenue increased $974,792 or 51%, as compared to the three months ended June 30, 2023 primarily driven by costs relating to testing of the vehicle, Aquanaut. For the six months ended June 30, 2024, cost of revenue decreased $136,480 or 3%, as compared to the six months ended June 30, 2023 driven by the decrease in revenue offset by costs relating to commercialization of the vehicle.

Previous wording

Depreciation. For the three months ended March 31, 2024, depreciation increased $153,086, or 56% as compared to the three months ended March 31, 2023 primarily due to the increase in property and equipment.

Current wording

Depreciation. For the three and six months ended June 30, 2024, depreciation increased $358,377 and $511,463, or 674% and 157%, respectively, as compared to the three and six months ended June 30, 2023, due to the increase in property and equipment.

Previous wording

Research and development. For the three months ended March 31, 2024, research and development costs decreased $163,433, or 72% compared to the three months ended March 31, 2023, primarily due to the Company achieving technological feasibility in both hardware and software development and focusing on bringing its products to market.

Current wording

Research and development. For the three and six months ended June 30, 2024, research and development costs decreased $482,761 and $646,194, or 100% and 91%, respectively, compared to the three and six months ended June 30, 2023, primarily due to the Company achieving technological feasibility in both hardware and software development and focusing on bringing its products to market.

Previous wording

General and administrative. For the three months ended March 31, 2024, general and administrative costs decreased $1,782,634, or 34% compared to the three months ended March 31, 2023, driven by headcount reductions.

Current wording

General and administrative. For the three and six months ended June 30, 2024, general and administrative costs decreased $2,333,277 and $4,115,911, or 42% and 38%, respectively, compared to the three and six months ended June 30, 2023, driven by headcount reductions and a concerted effort to reduce costs.

Previous wording

Other expense, net. For the three months ended March 31, 2024, other income related mainly to proceeds received from the sale of expensed equipment. Other expense, net for the three months ended March 31, 2023 is related mainly to a state sales tax assessment of $1.2 million from the Texas Comptroller of Public Accounts for which the audit is currently ongoing.

Current wording

Other (income) expense, net. For the three months ended June 30, 2024, other expense related mainly to franchise tax expense and taxes incurred from activity in Brazil. For the six months ended June 30, 2024, other expense related to franchise tax expense and taxes incurred from activity in Brazil partially offset by proceeds received from the sale of expensed equipment. For the six months ended June 30, 2023, other expense related primarily to a state sales tax assessment of $1.2 million from the Texas Comptroller of Public Accounts for which the audit is currently ongoing.

Previous wording

Gain on lease termination. For the three months ended March 31, 2024, a gain on lease termination of $15,365 was reported primarily due to the reduction in office space leased in Norway.

Current wording

Gain on lease termination. For the three months ended June 30, 2024, a gain on lease termination of $8,532 was reported relating to a second agreement to reduce leased office space in Norway. For the six months ended June 30, 2024, a gain on lease termination of $23,897 was reported, primarily due to the reduction in leased office space in Norway.

Previous wording

Change in fair value of warrant liabilities. For the three months ended March 31, 2024, a gain in the fair value of warrant liabilities of $8,309,623 was reported as compared to a loss of $2,236,904 for the three months ended March 31, 2023.

Current wording

Change in fair value of warrant liabilities. For the three and six months ended June 30, 2024, a gain in the fair value of warrant liabilities of $4,422,701 and $12,732,324, respectively, was reported as compared to a gain of $29,668,454 and $27,431,550 for the three and six months ended June 30, 2023, respectively.

Previous wording

Interest expense, net. For the three months ended March 31, 2024, interest expense, net decreased $2,481,695, or 50%. Interest expense for the three months ended March 31, 2023 included $4 million associated with liquidated damages and interest arising out of the RRA. The decrease is partially offset by increased interest expense for the three months ended March 31, 2024 relating to the convertible senior secured term loans received in the second half of 2023 and the first quarter of 2024.

Current wording

Interest expense, net. For the three months ended June 30, 2024, interest expense, net, increased $2,112,826 or 136%, driven by interest on the convertible senior secured term loans received in the second half of 2023 and the first half of 2024. For the six months ended June 30, 2024, interest expense, net decreased, $368,869 or 6%. Interest expense for the six months ended June 30, 2023 included $4 million associated with liquidated damages and interest arising out of the RRA. The decrease is partially offset by increased interest expense for the six months ended June 30, 2024 relating to the convertible senior secured term loans.

Previous wording

As of March 31, 2024, the Company had $6,187,307 of cash and cash equivalents. The cash equivalents consist of money market funds.

Current wording

As of June 30, 2024, the Company had $8,122,943 of cash and cash equivalents. The cash equivalents consist of money market funds.

Previous wording

Significant sources and uses of cash during the three months ended March 31, 2024.

Current wording

Significant sources and uses of cash during the six months ended June 30, 2024.

Previous wording

•The Company received net proceeds of $12,025,709 from debt financing.

Current wording

•The Company received net proceeds of $22,346,163 from debt and equity financing comprising of additional convertible secured term loans and an ATM share offering.

Previous wording

•Cash used in operating activities was $6,660,282, of which $1,143,922 was used to increase working capital.

Current wording

•Cash used in operating activities was $15,051,198, of which $3,314,573 was used to increase working capital.

Previous wording

•Cash from investing activities related mainly to proceeds from the sale of AHFS of $384,708 partially offset by capital expenditures of $324,147.

Current wording

•Cash from in investing activities related mainly to proceeds from the sale of AHFS of $419,720, offset by capital expenditures of $351,942.