LOS ANGELES - Crown Electrokinetics Corp. (NASDAQ:CRKN), a smart glass technology firm, has announced a 1:150 reverse stock split to satisfy Nasdaq's listing requirements. The split, effective as of yesterday, was a strategic move to maintain the company's listing status.
The company's CEO, Doug Croxall, addressed shareholders in a recent letter, outlining Crown's operational progress and financial outlook. Crown's Fiber Optics division is experiencing robust growth, with ongoing projects in Nevada, Idaho, Oregon, Arizona, and Florida.
The division is expanding in Idaho as the prime contractor for a fiber network and expects to secure additional projects in New Mexico and California in the near future.
Crown also reports that it is aggressively expanding in Oregon with four new clients and is in talks with a potential partner to handle projects in Portland, Phoenix, and Las Vegas. These developments are for two of the largest cable and telecommunications operators in the country.
In terms of financial performance, the company forecasts second-quarter revenue to be between $3.5 million and $4 million, with third-quarter revenues projected between $7 million and $8 million, based on current backlogs.
Moreover, the Electrokinetic Film division of Crown is progressing towards the delivery of its Alpha Gen 1 product slated for release in the fall. The company plans to announce further executive management additions and product development milestones soon.
This press release, sourced from Crown Electrokinetics, also contains forward-looking statements that involve risks and uncertainties. These statements are based on current expectations and are not guarantees of future performance.
Crown Electrokinetics specializes in smart glass technology, including the Smart Window Insert, and has expertise in designing and constructing fiber optic networks. The company emphasizes that this press release does not constitute an offer of securities for sale in the United States.
In other recent news, Crown Electrokinetics has embarked on new infrastructure projects in Oregon, projected to generate around $8 million in revenue for the company in 2024, potentially increasing to $15 million by 2025.
The firm also expanded its fiber optics project in Idaho, increasing the number of drills from two to seven and was selected as the preferred contractor for fiber optics installation in Boise area school districts. Crown Electrokinetics has announced plans for a 1-for-150 reverse stock split, pending shareholder approval, aiming to consolidate every 150 shares of the company's common stock into one share.
The company secured a conditional extension for its Nasdaq listing, providing additional time to meet all criteria for continued listing. In financial developments, Crown Electrokinetics reported a net loss of $4.6 million for the first quarter of 2024, with operational net losses amounting to $3.7 million.
Despite these financial losses, the company noted progress in its film and fiber divisions, securing notable projects in Nevada, Idaho, and Mexico. These are the recent developments in Crown Electrokinetics.
InvestingPro Insights
Amidst the strategic initiatives and projected growth outlined by Crown Electrokinetics Corp. (NASDAQ:CRKN), InvestingPro data and insights offer a deeper dive into the company's financial health and market performance.
According to InvestingPro data, Crown Electrokinetics' market capitalization stands at a modest $17.71 million USD. The company's revenue has shown a remarkable increase in the last twelve months as of Q1 2024, with a growth rate of 3595.45%, indicating a significant expansion in its business operations.
Still, despite the impressive revenue growth, Crown Electrokinetics faces challenges as evidenced by its gross profit margin sitting at -206.4% for the same period. This suggests that the costs associated with goods sold have exceeded the revenue, which may raise concerns about the company's cost management and pricing strategies. Furthermore, the stock's performance has been under pressure, with a 1-week total price return of -53.61% and a 1-month total price return of -73.73%, reflecting recent market sentiment.
Among the InvestingPro Tips, analysts anticipate sales growth in the current year, which aligns with the company's optimistic revenue projections. Nonetheless, it is important to note that the company is quickly burning through cash, which could impact its ability to sustain operations without additional financing. Moreover, the stock has been characterized by high price volatility, which may attract certain investors while dissuading those with a lower risk tolerance.
For investors seeking a comprehensive analysis, there are 18 additional InvestingPro Tips available, which can provide further guidance on Crown Electrokinetics' performance and outlook. Interested readers can explore these tips by visiting https://www.investing.com/pro/CRKN and can take advantage of the exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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