Crown Electrokinetics Corp. Q1 FY2024 earnings call

• Film division: In late February 2024, the Electrokinetics Film team solved the 12 - inch mastering challenge for the Gen 1 alpha smart window insert. Sheldon Davis was named President of the Electrokinetics Film division. Crown plans to roll out Gen 1 alpha (in the August - September time frame, very small quantities), Gen 1 beta (towards the end of the calendar year), and Gen 1 charlie (early next year) to gather customer feedback. - Fiber division: Corey Boaz was named President of Construction in early February. The Fiber division changed its operating model to partner with other subcontractors to be cash flow positive on projects from Day 1. It has current projects in Idaho, Nevada, and is soon to start in California and Mexico. Secured a large backbone project in Nevada with approximately $5.7 million in gross revenues, a project in Idaho, and a project in Mexico for a desalination plant slant wells expected to generate about $3.5 million in revenue.

Crown is composed of two divisions: Film and Fiber. In the first quarter of 2024, the Fiber division recorded $0.7 million in revenue. The Film division achieved a technical milestone in late February 2024 by solving the 12 - inch mastering challenge for its Gen 1 alpha smart window insert, with plans to start shipping small quantities of the first product later in the summer. The Fiber division has multiple projects, such as a large backbone project in Nevada generating approximately $5.7 million in gross revenues, a project in Idaho, and a project in Mexico expected to generate about $3.5 million in revenue.

• Anticipates second quarter revenues to be in line with guidance and will provide an update and first look at Q3 in the near future. - Received notification from NASDAQ on October 19 regarding compliance and requested an extension for a further 180 days, and is awaiting the panel's guidance on next steps.

• Risk related to NASDAQ listing compliance as it awaits the panel's guidance. - Potential nontimely submission of the 10 - Q due to auditors' quality control backlog.

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