Nauticus Robotics, Inc. Q4 FY2024 earnings call

• 2024 was a transformational year for Nauticus, shifting from a research and development company to a commercial revenue-generating one. - 2024 was the inaugural season of offshore operations for the Aquanaut vehicle, with plans to improve in 2025 based on lessons learned. - ToolKITT software was confirmed to operate on a SeaTrepid ROV, opening the market for ToolKITT sales to ROV operators. - Manipulator team developed an Olympic Arm variant for the Aquanaut vehicle, planned to install in the second half of 2025. - Acquisition of SeaTrepid was a game changer, providing access to more customers and reducing customer concentration. - Government side signed an alliance with Leidos to address defense sector challenges.

In 2024, revenue was $1.8 million, a decrease of $4.8 million from 2023. The decline was mainly due to reduced government contracts, but the company recognized revenue from commercial operations of the Aquanaut vehicle for the first time. Operating expenses for the year were $24.9 million, an improvement of $36.8 million from 2023. Net loss for the year was $134.9 million, an increase of $84.2 million from 2023. Adjusted net loss was $26.1 million compared to $34.3 million in the prior year. Cash at the end of 2024 was $1.2 million.

• Anticipate significant improvement in 2025 compared to 2024. - Expect revenue in 2025 to be greater than $16 million, with potential for higher revenue if additional assets are put to work.

• Forward-looking statements are subject to risks and uncertainties beyond control, which can cause actual results to differ materially from expectations. - Need to refer to earnings release and risk factors discussed in SEC filings.

Q: About 2025 top line, number of days in the season, number of vehicles and sizing the revenue opportunity A: The season runs from March/April to October/November. Have two Aquanaut vehicles and two Comanches working. If demand is great, could invest in third Aquanaut and third ROV. Expect revenue greater than $16 million in 2025 Q: Differentiation in competitive landscape A: Strong in manipulators for autonomous underwater vehicles, untethered design, collision avoidance software, depth capability of 3,000 meters, and efficient operation like an aquacopter allowing 360-degree views Q: Capital requirements and liquidity A: Need capital to prove technology is commercial. If demand for additional assets, can use contract-based lending to bring in capital without diluting shareholders. Each asset can generate $6 - $8 million per season revenue