LOS ANGELES - Crown Electrokinetics Corp. (NASDAQ:CRKN), a company specializing in smart glass technology and fiber optic networks, released its financial results for the year ended December 31, 2023.
The company reported a net loss of $29.0 million, which included $9.7 million of non-cash expenses primarily due to balance sheet restructuring in the first half of 2023. This loss is greater than the $15.1 million net loss reported in 2022.
Operating expenses for the year totaled $19.4 million, which included the costs associated with the establishment of the Fiber Optics division. The company's total revenue for 2023 was $0.2 million, all of which was attributed to the Fiber division, with the majority booked in the fourth quarter.
Crown Electrokinetics also provided updated financial guidance for the first and second quarters of 2024. The company now expects first-quarter revenue to be between $0.9 million and $1.0 million with a net loss of between $3.1 million and $3.3 million. For the second quarter, the revenue forecast remains unchanged at $7.0 million to $8.0 million, with a net income (loss) projection between ($0.5) million and $0.0 million.
The company's cash and cash equivalents stood at $1.1 million as of December 31, 2023. During the year, Crown Electrokinetics deployed $16.7 million of cash for operations and invested $2.3 million in the Fiber business. To finance these activities, the company raised $19.2 million, which included common equity issuance and funds from preferred stock and debt notes.
Crown Electrokinetics will host a conference call and audio webcast to discuss these results with remarks from Doug Croxall, Chairman & CEO, and Joel Krutz, COO.
This article is based on a press release statement from Crown Electrokinetics, which also includes forward-looking statements that involve risks, uncertainties, and assumptions. These statements are not guarantees of future performance, and actual results may differ materially. The company does not undertake any obligation to update forward-looking statements.
InvestingPro Insights
Crown Electrokinetics Corp.'s (NASDAQ:CRKN) financial performance over the past year paints a complex picture, with significant challenges reflected in the company's stock movement and financial metrics. An in-depth analysis using real-time data from InvestingPro provides additional context to these results and may offer investors a clearer understanding of the company's position.
According to InvestingPro, Crown Electrokinetics holds a market capitalization of just $1.85 million, signaling a very small player within its industry. The company's Price / Book ratio as of Q3 2023 stands at a low 0.2, which could indicate that the stock is undervalued relative to the company's asset base. However, the company's gross profit margin for the same period was only 8.47%, pointing to struggles in maintaining profitability on its core products and services.
InvestingPro Tips suggest that the company's stock is in oversold territory, as indicated by the Relative Strength Index (RSI), and it is trading at a low Price / Book multiple. These factors might appeal to certain value investors looking for potential turnaround candidates. On the flip side, the company is not expected to be profitable this year, and it has been quickly burning through cash, which can be a cause for concern.
For investors seeking further insights and comprehensive analysis, InvestingPro offers additional tips on Crown Electrokinetics, providing a fuller picture of the company's financial health and stock performance. These tips could be particularly useful for those considering whether to invest in a company facing significant headwinds. To explore these insights, visit https://www.investing.com/pro/CRKN, and don't forget to use the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
With 14 more InvestingPro Tips available, investors can gain a deeper understanding of the risks and opportunities associated with Crown Electrokinetics. These insights, coupled with the latest real-time data, can help inform better investment decisions in the context of the company's current financial trajectory.
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