Crown Electrokinetics Corp. Q3 FY2023 earnings call

Corporate Update - Doug Croxall noted that a year ago the company had no business in the fiber optic industry, but now has three large customers with significant work, plans to add more customers, and will expand equipment and personnel as needed. ### Customer Update - David Martinez shared new opportunities with three key customers: a Houston-based company with HDD projects in Phoenix, an infrastructure construction leader with an MSA expecting 7 - 10 years of work, and a networking communications company with an MSA for projects including micro-trenching, fiber replacement, and splicing. ### Construction Update - Mike Sullivan reported having a yard, office, and shop in Arizona, with 3 directional drills capable of 2,200 feet per day, micro-trenchers (2 units at 4,400 feet per day with 3 more ordered), volumetric cement trucks ordered, and VAC units. ### Recruiting and Personnel Update - Jeremy Hubbard discussed establishing 5 crews in a month, bringing on subcontractors, focusing on building a culture with self-thinking, motivated team members, and implementing team building events and competitive benefits.

In the third quarter of 2023, Crown ElectroKinetics Corporation had a pre-tax loss of $2.9 million. There was no revenue or cost of revenue in the third quarter as the company focused on building its organization and equipment for upcoming projects. Operating expenses were $3.4 million, with research and development expenses at $0.5 million (a decrease of $0.5 million compared to Q3 2022) and SG&A expenses at $2.9 million (an increase of $0.7 million compared to Q3 2022). Other income was $0.6 million, consisting of a $3 million change in the fair value of warrants, notes, and derivative liabilities. Net cash increased by $2 million in the third quarter. For the fiber optics segment, there are three active projects in Arizona involving micro-trenching and traditional directional drilling. On the film side, mastering work with a European vendor had positive results, with expectations of having 12-inch masters done by the end of the calendar year and product likely coming in late Q1 or early Q2 next year.

Expect to add another 2 - 3 MSAs before the end of the calendar year. ### Look to expand out of Arizona into the Southwest/West Coast area if suitable opportunities arise. ### In the next month, will speak with three nationwide companies and one international company regarding their needs. ### Anticipate 5 - 8 years of growth in the telecommunications infrastructure market.

Received a NASDAQ minimum price notification on October 19th, with 180 days to again trade above $1 for 10 consecutive days to regain compliance. ### Other risks include market conditions, competition, and the ability to secure and execute projects as planned.

Q: Operator: This conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

A: Operator: This conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines