- Earnings call transcript Q3 2022

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Operator

Good morning, everyone, and welcome to Crown ElectroKinetics Corporation Earnings Call for the Third Quarter 2022. At this time, participants are in a listen-only mode. A question-and-answer session will follow management's remarks. This conference call is being recorded. A replay of today's call will be available on the Investor Relations section of Crown's website and will remain posted there for the next 30 days. the reading to statement. of hand introductions Assad now the and the will call Jason over for I Safe Harbor go ahead. Please

Jason Assad

earnings and on today's Thank welcome are Officer. Doug quarter morning Good Chief call Joel With call Executive Krutz, Crown's Crown's Financial Officer XXXX. - you, third and for todays everyone us Croxall, the Chairman, operator. to and Chief

similar the would call our such and begin, Securities plans, beyond the or law. I Factors XXXX may forward-looking of materially by like identify of with results are section the are These contains Copies after documents Actual on Risk Form company's company Act of management estimates, www.sec.gov. forward-looking the we report quarterly quarter at intended statements filed this in the XX-Q SEC's with of website hopes, you such of statements. today's required Words numerous to from are are implied company, those call, as Exchange which set to and forward-looking of should, Before on forth no these XXXX the that and to projects, the date SEC. differ Section including variations revisions update changes for of or as XXA from the expressed obligation certain of by statements except undertakes the The made third statements. Act believes, the the these statements those of of meaning for amended. conditions, expressions available control anticipates, expects, Section remind many intends, XXE Securities XXXX to and as of amended subject words may, such as

please to ahead. time, this my is Doug, and CEO at Now Chairman of Crown. introduce Doug go pleasure Croxall, it

Doug Croxall

to the Veterans' listening. Thanks, veterans right, to earnings for all know. call might thanking begin retrofit be of will Day, office efficient we energy update, At with business capital, our that I'd based All give will will to million by Recently, Krutz for affordable that on thank Joel XXXX sustainability Crown, our through any energy by I infrastructure smart U.S. some the commercial X a vision runway negotiating you helping joining few us environmentally highlights. solution we're committed actively who capital start announced become closed call. allow minutes. CFO, the and review them turn our to QX, customers that and to to their be the to remain and providing Gen buildings supplier a as emissions. to its carbon responsible fresh an product, everyone $X we legacy Today's you estate update morning glass I'll our - which afterward. working reduce us to also discuss like going the real continue lower in in to capital, we Crown key market Jason enable deliver while After debt its providing financial

completed have to different existing with production strategy generation initial prototype line to Corvallis, customers be first acquisition assembly smart is to can insert inserts three our in four by three Oregon for with customer production Our handled our our This Oregon four window purchase Salem, facility. being buildings. in

tax XX the deductions deductions Law and a the the which their rapid of IRA should for with 'XX become into customers XX% take accelerate installed in to our both our how enabling customer Section future into have feel to our year and is XXXX, user to base XX foundation their rapidly recently late to interface. that levels current the and X or has upgrade line York the our Gen of advantage using while feedback the compelling wall major window industry their Throughout and of being the by battery expanded use system. overall credit will offices. The the we the to feedback, achieving the and to reduction was revenue limited targets calendar for kick data insert of gathering City's Gen performance as tax window broaden another built, for successful, the number limited different New our the on by will as Crown's X solar brings main a the substantial REITs immediate is customers, number of rest drive in dozen should with production full hopefully glass manner the window customers Reduction continue investments. our envelopes inserts. commencing started of We customer number such X building Crown of detailed customer or savings legislation goal adoption inserts inserts allowing Gen potential offices place passing and such industry. XXXX of the Act. is customers and while XXXD a Legislation - to features the we beyond. the customers smart their energy in curtain X X given tax smart our Gen which Inflation boost If a retrofit inserts, mid incentive Local Gen growth Section efficiency similar all we're of by building a - has our in 'XX energy look Other

March this we've year. announced and $XX As earlier process very time. calls, debt engaged some a of It's previously million in discussed process. and actually this comprehensive long earnings for facility for discussions been in on been We started

listing begun XX we saw necessary this new widths XX Upon trading are smart that in producing dual that of listing Directors dualist could that upstream, upstream insert determined dual worldwide expect the the us new a upstream. next reach conditions manufacturing our digital announcement on trading about and only reiterate we'd for our app blockchain market a film successful can and some MERJ being have powered excellent to app lot technology. shares market of want sight between and revenues levels enforcing afford enabling difficulty. capabilities. Once capacity, potential to the have produce of and the aims in the year, upstream to ranging way you build revolutionary annualized to exacerbated said, line, million. to know, be highest unlock easy, for shareholders the at listing and who the more expand that optimistic transparency, we Upstream featuring close, it window and exchange that we've also new we an By closing. be the levels Crown introduces for theory close on base of protections closing, the issue Ultimately, That I us a to enforce was our than we of a the largest to market. the app to position the Crown. on our invest reach of be intuitive As production current investors our their inches. potentially by Horizon the and and calendar application end - Fintex roll-to-roll us at is we an digital request Limited. facility about. a for on have accessibility To using never of a what we phase learn revolutionary lines future there's to could all of Board line innovator process trading, believes investor will a investors on securities be some Exchange Recently, - dividend. NFTs hope capital you our by initiate of our all $XXX dual digital This securities liquidity to is mechanism to of researched to It of reached the that Upstream

capital continue now in we ours. our and installations engaged significant developed turn the a market over to with I'll finally These discussions affirm continue CFO, any commercial partner. is and our call a if hand first We comparable marquee now ongoing potential technology high with solutions, the with strategic to proven. is partners. other deliver for in like solution Our potential the Joel. Crown's few be demand discussions to to have

Joel Krutz

morning, $X.X we order but the meet recorded September against the $X.X Xst, September was Good the NASDAQ third included results. Crown's was lower just net though, This quarter Listing. $X.X retain that Crown's the to overhead. options $X.X quarter that compensation. compensation XX of I to in XXX of stock-based that On third Ahead stock-based million of that, NASDAQ. included standards, financial consisted date expense trade loss the $X.X payroll plan last everyone. during expenses to above the ended for 'XX financials, have consecutive $X.X to $X.X year, million XX minimum we be days I'll of of $X.X bid non-cash confident million address million loss third million expense. fees which price Doug. from On compliance you, regain the We're excluding were than of Operating preparing from Thank discussing quarter mean which million for comp non-cash million professional we for non-cash will notification ensure $X.X and million our net million want that of the alternate also operating Today are quarter days received operating we $X compliance. executing to

restructure organization and ensure base to and are our review We expense continue that Crown's optimized. to operations

restructuring XX. efforts when burn rate for million last these material $X.X compared reduction reduced $X the month evident As this cash which The of including of to have our we reduced We've September, QX our per operations September with cash month. levels in $X.X the $X.X benefit months capital This million by million deployed these in or $X.X that actions efforts million, per mentioned, Doug raising costs complemented we with or was subsequent our to QX. raise XX%. restructuring million efforts few of our run started over is

hopeful have debt Operator, concludes we open the are at now to the for to of remarks. financing ahead. the facility letter That end access Additionally, of market year. go and credit you questions. the We'd like prepared could if call before closing outstanding of please our and

Operator

first Thank Severson Instructions] Our you. question proceed. [Operator Research. Please from Shawn Water with is Tower

Shawn Severson

commercial the they REIT short-term understand get to My you how estate to commercial their that, when look obviously real environment, at think looks new congratulations construction, I'm through here first and estate and to and and provides like the Hi but retrofit on getting risks, recession the this the things Do out retrofit, know this really trying type okay, fits of opportunities, industry? a business? to into going this, you we're at in on for finance it real slowdown environment just And figure regarding is I'm when - thanks, question know, you market. is environment trying that.

Doug Croxall

Yes, thanks, Shawn.

to So things couple expensive, our - the pretty of the inserts note solar equivalent, shade. slightly more a are than of cost - cost

an of to insert So than know, look a standard to white that. in be $XXX, if to $XXX, priced, you $XX shades kind five-by-five expensive at those solar like office, priced our anywhere like from $XXX you more window is

certainly constructed - a expensive the as levels curtain into building. concerned building new an redoing about, We're entire So And as potential know, and levels we're inflation recession. there while owners vacancy certainly leasing expensive putting wall. as you not not and as - new and a we're glass their are not

of right a of typical us be are in still been people mean We're product like So affected, recessionary extent you positive. moves making their current extent got they're doesn't period. our we point some to To in of that that in indications selling we've and else's, deals kind building, a out anyone the concerns, with. pretty But those we're sustainable. matter couple know, and making the fact, investments have our of in conversation now, won't buildings of price their customers new the as investments more making negotiating

period. - we even there's doesn't into but So pretty even for think a it good and us, if, that if runway recessionary happen, know, hopefully move you still we

Shawn Severson

a scenario in Let front you. me of put

normal for just going I'm have look if a I'm look going at a if have - I'm we a of shade, is there to at, and replace maintenance, I'm example shade. that and level a solution difference incentives the between, those solution a like commercial So building if at spending your versus, understand just dynamics real the and to trying estate solar in product the IRA the benefit, your and your in commercial capital using of the I'm solar to to owner, correct. we And right level? like

Doug Croxall

you on great an a question. it's got ROI benefit. a the it's so to difference, their To a and do don't there's And Yes, honest, be building do owners most shades, definite definite just solar of there's it.

that's you can't have shaded. mean not a You window

those these building the at investment if seven in, owners put So most they're the to not looking every on are return entire XX cycling I of years, the necessarily what's building. okay, out

one when of things, carpet, and into those moving tenant, standard blind So new paint, replaced it's office, get an typically TI. kind of you're a is you're a

our shade reduction carbon matter of to buildings use you does chain a into now, they're right stand which our walk and replacing because one of owner. one of without customers they'd building important having insert the which can There the pull that blinds features office the to automated dealing fact rather that move. you As an and inserts make inserts, we're, actually a provide the is shade up, is is know so to walk looking reduction we're their in an at with energy our the

is state. when our insert dark the and - So, in

see window, solar see still dark glass dark. side. you still can the anything Limousine other what's on side. the can't is like deployed, You When the see can It's other the like through you on shade

You're just staring shade. - at a white

the So cost. there's of lot versus benefit, aesthetic pretty shade, much to same the energy the insert benefit and solar for a

Shawn Severson

major last you've push environment changes to had my you changes? process? the that thrown through financing, you then gone on do going we've be sight little but pull really kind or - you wrench understanding line feel the stuff there in and question and as had to of has with just some had seriously know, bit noticed the changed you or any that, give not have Has that Have of interest been of a environment. like framework, you debt the guys, nothing is must And impacted through or process, a is as the you rate gone by the material to know, this but obviously,

Doug Croxall

going it became now know, because find And going to of early the impact the to debt, And sometime it's clearly, in kind on this the in thought the it's close embarrassing, were we in Yes, we sometime you and then summer, think sometime be fall. winter. environment sheet just kind debt, of rate we the is the to, found we taken a know, actually have rising it, lot of the that you two. affected not term think business it's match. longer we our we or terms - And

environment hopefully to line - one continue the other. both a to and, But tough equity And the or so, to it's we're you capital with going just know, look raise finish gets before debt. any it's really

from very and but So, we're product a still to interesting funding confident debt very is that what we very, lot sources. have perspective of a technology

these And so locked August like we've an big seen - of frankly, but impact had we'll haven't the continue of to terms, that move we terms since timeframe. kind to down forward,

Shawn Severson

All Doug, right thanks it. appreciate

Operator

with question proceed. ROTH next Sweeney from Our is Capital. Gerry Please

Gerry Sweeney

Doug morning, my taking and Thanks good Hi, Joel. for call.

Doug Croxall

Gerry. Hi

Gerry Sweeney

decent place sort previously now know, August. that you is terms the A - to it curious big been he hurdle with of in since of Just terms following-up and and lenders closing some in working what you - had on the potential debt, the sounded the one facility? between and some the type had place like two

Doug Croxall

are two been these talking done about. of the and their the credit were we've And, committees, through same big Yes, kind hurdles which investment getting successfully. we've that

Now closing. it's in papering

have calendar will we the earnings that so, for year. we this of but have to Clearly, end don't, had something we we hope something before And announce, call. hoped to announce the to

Gerry Sweeney

deliver or even Got up it you How base. and switching - been any to clients gears to customer of And many have like to clients? mean, is have I windows it today? the prototypes you sort able do signed

Doug Croxall

be 'XX. a supposed in our first our has of to have. capital product that's funding shifted previously, now been but one so have delivery, was really product we thing didn't to quarter, it's and that's to we definitely next resources thing one delivery the And the that delayed QX, this do delayed Yes, only - function

maybe we QX. product we three, be expect to four in So, have that QX. we'll And in QX product have three, that we'll customers delivery to first in delivering

Gerry Sweeney

Thank it, okay. you. for Got it That's me.

Doug Croxall

Thanks, Gerry.

Operator

[Operator Global. from Instructions] Campbell is Jeffrey proceed. Our next Please Alliance with question

Jeffrey Campbell

could question just and the that new amount to have secure you that of the you I'll one surrounding that you deliver yes schedule out ask going in you're and secure ongoing delayed bearing that you inflationary that capital all deliver raised cost to good Thanks. a enough quarters, that do? deliveries, you costs Doug, just there raised pressures that delivery feel that Do stuff? or increase? the continue outlined, the intended at mind, to that you and product that do capital Hi to be things able get the of to time to delayed is the Whatever chance capital deliveries to you've your done as - any couple

Doug Croxall

Sure, are when the it's safe never to you first pre-revenue, have delivery. yes, to think so your I have product we - small say. sheet, enough companies But capital we can balance think that we capital on get sufficient

tremendous of and I but our of kind outrageous We haven't were happening. on seen inflationary this predicting kind own of bill at be that all, slight, anything we a mean, pressure not might of - we amount materials,

with we've have amount we good already about, frankly, strategics talking And of gives we potential we us we going to as debt if need there they're us or job been inventory we've of But So the mean get be a place to a locking coming have for we that the in the with comfortable, runway the couple frankly, we getting capital first well. we of that feel pretty really feel feel and product some down the comfortable capital have in need. in. to, them balance our and, comfortable in pretty some done sheet, we and amount on of everything we that doesn't of feel pricing comfortable

we've already sheet. paths what and what the we've product the the gets in what in multiple do got balance the our product, that even And back are really and seeing to it on company of and got the put finance market. can the strength to all beyond technology the we've So - partners product

Jeffrey Campbell

great, Okay, thank you.

Operator

to Mr. in time, I like Chairman no call Doug At remarks. closing this the over I to queue. CEO further would see questions the turn and Croxall, for

Doug Croxall

My just - a everybody prolific Day, my today inventor in - to Grandpa I for sticking who actually which of Alka ever today not chemical person me us. want grandfather that invention named birthday on is be and only window use that my XX where small today. he some And of grandfather's like actually the the Seltzer me. on about - he still coincidentally, public with thought my So would I is Croxall, XX years of Veterans' is patents, he was ago. for and controlled thank was really is one about innovation was company. told It's the me a inventor, I passed think don't but But influence salesman in going chaos. to most take had always career a

cannot happens. you when discovery cannot, You predict

a want So for behind you market, patience the everything pretty to that I looking We're to everybody to impact know and that we we your future the our just try talking thank to generations again to important environment to those that that investing. for to know us. get the soon. for forward to and and potentially doing because look can I guidance at it's that difficult out is and get investors we who company product are public to product provide ready as this this

Operator

you your Thank Ladies, for concludes participation. conference today's gentlemen, this call.

disconnect good now day. have a and may You

Crown ElectroKinetics (CRKN) 11 Nov 222022 Q3 Earnings call transcript