Q2 2024 Crown Electrokinetics Corp Earnings Call
Defense Secretary Seth Stevens, New York Times journalist Christopher Grassley
unknown: David Martinez, Mike Sullivan, Douglas Croxall, Farrah, Farrah, Farrah, Farrah, [inaudible] OOOOOOOOOOOO, David Martinez, David Martinez, Jeremy Hubbard, [inaudible] of the United States. David Martinez, David Martinez, Jeremy Hubbard, [inaudible] of the United States.
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unknown: .. .. .. .. .. .. .. .. .. .. David Martinez, David Martinez, David Martinez, David Martinez, David Martinez, David Martinez, Jeremy Hubbard, Good night, and David.
Operator: Good afternoon everyone and welcome to the Crown Electrokinetics 2nd quarter, 2020-24 kind of. At this time, all participants are in a listen-only mode. A question and answer session will not follow the management's remarks. This conference call is being recorded. Replay of today's call will be available on the Investor Relations section of Crown's website. I will now hand the call over to Jason Assad, Director of Corporate Communications, for introductions and the reading of the Safe Harbor Statement. Please go ahead.
Speaker Change: Good afternoon everyone, and welcome to the Crown Electrokinetics 2nd quarter 2024 conference call.
Speaker Change: At this time, all participants are in a listen only mode. A question and answer session will not be following the management's remarks.
Speaker Change: This conference call is being recorded. A replay of today's call will be available on the Investor Relations section of the Crown's website.
Speaker Change: I will now hand the call over to Jason Assad, Director of Corporate Communications, for introductions and the reading of the Safe Harbor Statement. Please go ahead.
Jason Assad: Thank you, Operator. Good afternoon, and welcome to Crown's second quarter 2024 call. With us today on the call are Doug Croxall, Crown's Chief Executive Officer and Chairman, Joel Krutz, Chief Financial Officer, and Sheldon Davis, President of the company's Electrokinetic Film Division. Before we begin, I'd like to remind you that today's call contains certain forward-looking statements from management made within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21A of the Securities and Exchange Act of 1934 as amended.
Jason Assad: Thank you, operator. Good afternoon and welcome to Crown's second quarter 2024 call.
Speaker Change: With us today on the call are Doug Croxall, Crown's Chief Executive Officer and Chairman, Joel Krutz, Chief Financial Officer, and Sheldon Davis, President of the company's Electrokinetic Film Division.
Jason Assad: Words such as should, projects, expects, intends, plans, beliefs, anticipates, hopes, estimates, and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements are subject to numerous conditions, many of which are beyond the control of the company, including those set forth in the risk factor section of the company's quarterly report on Form 10-Q for the second quarter ended 2024. Copies of these documents are available on the SEC's website at sec.gov.
Speaker Change: Before we begin, I'd like to remind you that today's call contains certain forward-looking statements from management made within the meaning of the Section 27A of the Securities Act of 1933, as amended, and Section 21A of the Securities and Exchange Act of 1934, as amended. For more information on the Section 27A of the Securities Act of 1934, please visit the Section 27A of the Securities Act of 1934 website.
Unknown Executive: Words such as should, projects, expects, intends, plans, beliefs, anticipates, hopes, estimates, and variations of such words and similar expressions are intended to identify forward-looking statements. These statements are subject to numerous conditions, many of which are beyond the control of the company, including those set forth in the risk factor section of the company's quarterly report on Form 10-Q for the second quarter ended in 2024. Copy of these documents are available on the SEC's website at sec.gov.
Speaker Change: such as should, projects, expects, intends, plans, beliefs, anticipates, hopes, estimates, and variations of such words and similar expressions are intended to identify forward-looking statements. These statements are subject to numerous conditions, many of which are beyond the control of the company, including those set forth in the risk factor section.
Speaker Change: with the company's quarterly report on Form 10-Q for the second quarter ended 2024. Copies of these documents are available on the SEC's website at sec.gov.
Jason Assad: Actual results may differ materially from those expressed or implied by such forward-looking statements. The company undertakes no obligation to update these statements for revisions or changes after the date of this call, except as required by law. Now, at this time, it's my pleasure to introduce Doug Croxall, CEO and Chairman of Crown.
Unknown Executive: Actual results made different materially from those expressed or implied. But such forward-looking statements, the company undertakes no obligation to update these statements for revisions or changes after the date of this call. Accept is required by law.
Speaker Change: Actual results may differ materially from those expressed or implied, by such forward-looking statements. The company undertakes no obligation to update these statements for revisions or changes after the date of this call, except as required by law.
Jason Assad: Now, at this time, it's my pleasure to introduce Doug Croxel, CEO and Chairman of Crown Doug.
Speaker Change: Now at this time, it's my pleasure to introduce Doug Croxall, CEO and Chairman of Crown. Doug.
Douglas Croxall: Thanks, Jason.
Doug Croxall: Thanks, Jason. Welcome, everyone, to our second quarter, 2024 earnings call. As most of you know, Crown has been expanding its scope of services. Previously, Crown was comprised of two divisions, our electro kinetic film division and our fiber optic construction division.
Douglas Croxall: Welcome everyone to our second quarter, 2024 earnings call. As most of you know, Crown has been expanding its scope of services. Previously, Crown's comprised of two divisions, our Electrokinetic Film Division and our fiber optic construction division. Recently, we announced further expansion into lead pipe inspection as well as lead pipe remediation. We now have four complementing markets and revenue verticals, which allow us to broader to go broader within existing customers, while taking advantage of what we believe to be large total addressable markets. Most importantly, we've attracted a team of top talent across all four of our divisions to ensure that we execute and drive both growth and profitability across all of them.
Doug Croxall: Thanks Jason. Welcome everyone to our second quarter 2024 earnings call. As most of you know, Crown has been expanding its scope of services.
Doug Croxall: Recently, we announced further expansion into lead pipe inspection, as well as lead pipe remediation. We now have four complementary markets and revenue verticals, which allow us to go deeper within existing customers while taking advantage of what we believe to be large total addressable markets. Most importantly, we have attracted a team of top talent across all four of our divisions to ensure that we execute and drive both growth and profitability across all of them. I'd like to start with the discussion of our film division today. The development of our electrokinetic film has been a long and sometimes tedious process.
Doug Croxall: Previously, Crown was comprised of two divisions, our electrokinetic film division and our fiber-optic construction division. Recently, we announced further expansion into lead pipe inspection as well as lead pipe remediation.
Doug Croxall: We now have four complementing markets and revenue verticals, which allow us to broader
Speaker Change: to go broader with an existing customers while taking advantage of what we believe
Speaker Change: to be large total addressable markets.
Speaker Change: Most importantly, we have attracted a team of top talent across all four of our divisions to ensure that we execute and drive both growth and profitability across all of them.
Douglas Croxall: I'd like to start with a discussion of our film division today. The development of our Electrokinetic Film has been a long and sometimes tedious process. In late February of this year, we announced that our film team installed a 12-inch mastering challenge for its Gen1 Alpha smart window insert product. We remain in a good position to start shipping the product, the birth product, in small quantities in the next couple of months, towards the end of the calendar year. With this technical milestone address, we announced that Sheldon Davis, previously a consultant to the company, was named President of our Electrokinetic Film Division.
Speaker Change: I'd like to start with the discussion of our film division today. The development of our electrokinetic film has been a long and sometimes tedious process.
Doug Croxall: In late February of this year, we announced that our film team had solved the 12-inch mastering challenge for its Gen 1 Alpha Smart Window Insert product. We remain in a good position to start shipping the product, the birth product, in small quantities in the next couple of months towards the end of the calendar year. With this technical milestone address, we announced that Sheldon Davis, previously a consultant to the company, was named president of our Electrokinetics Film Division.
Speaker Change: In late February of this year, we announced that our film team had solved the 12-inch mastering challenge for its Gen 1 Alpha Smart Window Insert product.
Speaker Change: We remain in a good position to start shipping the product, the first product in small quantities in the next couple of months towards the end of the calendar year.
Speaker Change: With this technical milestone address, we announce that Sheldon Davis, previously a consultant to the company, was named president of our Electrokinetics Film Division.
Doug Croxall: Sheldon's work history makes him the ideal person for Crown's exact stage of growth, and we're extremely encouraged by the progress that he has made in his short time in his new role. Sheldon and I have known each other since about 2016, while he was working at Guardian Glass, a Coke Industries company.
Douglas Croxall: Sheldon's work history makes him the ideal person for Crown's exact stage of growth, and we're extremely encouraged by the progress that he has made in his short time in his new role. Sheldon and I have known each other since about 2016, while he was working at Guardian Glass Co-Industries companies. His knowledge of our target market, ink formations, window insert, glass manufacturing, and different glazing technology makes him the perfect person for the job. We're excited to have him take a leadership role at this important time.
Speaker Change: Sheldon's work history makes him the ideal person for Crown's exact stage of growth, and we're extremely encouraged by the progress that he has made in his short time in his new role.
Speaker Change: Sheldon and I have known each other since about 2016 while he was working at Guardian Glass and Coke Industries companies.
Doug Croxall: His knowledge of our target market, ink formations, window inserts, glass manufacturing, and different glazing technologies makes him the perfect person for the job. We're excited to have him take a leadership role at this important time. Sheldon is on the call with us today, and I've asked him to provide you with a further update on the status of our film division.
Speaker Change: is knowledge of our target market, ink formations, window insert.
Speaker Change: Glass manufacturing, and different glazing technologies make him the perfect person for the job.
Sheldon Davis: Sheldon is here on the call with us today, and I've asked him to provide you with a further update on the status of our film division.
Speaker Change: We're excited to have him take a leadership role at this important time. Sheldon is here on the call with us today and I'm asked him to provide you with a further update on the status of our film division. Sheldon. Thank you, Heather. I appreciate the opportunity to update our progress on film division.
Sheldon Davis: Sheldon, thank you, Tyler. I appreciate the opportunity to update our progress on the film division. In my previous company, I had the opportunity to interact with many different dynamically glazing companies, smaller and larger. We explored different solutions from ElectroKromic to novel lab technologies. I also talked with tenants, occupants, building engineers, and building owners worldwide. They shared what they needed and wanted. I learned a lot about the frustrations about facade, windows, shading, and so much more. Through all of this, I saw the amazing potential of Crown ElectroKonetics technology and business. Crown technology was differentiated and well positioned to succeed.
Sheldon Davis: Thank you, Doug. I appreciate this opportunity to update you on the film division. In my previous company, I had the opportunity to interact with many different dynamically companies, small and large. We explored different solutions, from electrochromic to novel lab technology.
Sheldon: In my previous company, I had the opportunity to interact with many different dynamically aging companies, small and large.
Sheldon Davis: I also talked with tenants, occupants, building engineers, and building owners worldwide. They shared what they needed and wanted. I learned a lot about their frustrations with facades, windows, shading, and so much more.
Sheldon: We explored different solutions from electrochromic to novel lab technologies.
Speaker Change: I also talked with tenants, occupants, building engineers, and building owners worldwide. They shared what they needed and wanted. I learned a lot about their frustrations about facades, windows, shading, and so much more.
Sheldon Davis: Through all of this, I saw the amazing potential of Crown Electrokinetics technology and business. Technology was differentiated and well positioned, and the team had great customer outreach and connections. They listened to and understood their customers exceptionally well. When I chose to come to Crown Electrokinetics, I was excited and enthusiastic about being part of this. It's been three months since joining Crown, and every day reaffirms my decision.
Speaker Change: Through all of this, I saw the amazing potential of Crown Electrokinetics technology and business. Crown's technology was differentiated and well-positioned to succeed.
Sheldon Davis: The team had great customer outreach and connections. They listened to and understood their customers exceptionally well. When I chose to come to Crown ElectroKonetics, I was excited and enthusiastic about being part of this team. It's been three months since joining Crown. Every day, I reaffirmed my decision. Our dynamic 10th film technology and smart window inserts are excellent solutions for our target customers.
Speaker Change: Electrokinetics. The team had great customer outreach and connections. They listened to and understood their customers exceptionally well. When I chose to come to Crown Electrokinetics, I was excited and enthusiastic about being part of this team.
Sheldon Davis: Our dynamic 10th film technology and smart window inserts are excellent solutions for our target customers, to conversations with our customers and within our value chain. Our product looks uniquely, Let's see uniquely, if you'll spell it, marginy. Technical progress has been good, and we still expect the Gen 1 Alpha Smart Window Insert to be available in limited quantities by the end of the year. I am more enthusiastic and excited to be part of Crown today. Now for the update.
Speaker Change: It's been three months since joining Crown. Every day reaffirms my decision. Our dynamic tint film technology and smart window inserts are excellent solutions for our target customers.
Sheldon Davis: Questions. Through conversations with our customers and within our value chain, our product looks uniquely to fill market needs. Technical progress has been good. We still expect the Gen 1 Alpha Smart Window Insert to be available in limited quantities by the end of the year. I am more enthusiastic and excited to be part of Crown today.
Speaker Change: Through conversations with our customers and within our value chain, our product looks to uniquely fulfill market needs.
Speaker Change: Technical progress has been good. We still expect the Gen 1 Alpha Smart Window Insert to be available in limited quantities by the end of the year. I am more enthusiastic and excited to be part of Crown today.
Sheldon Davis: As mentioned, the film division had a significant breakthrough in the early part of the year. We were able to validate and demonstrate the mastering capability. The team is working hard to convert this technical breakthrough into manufacturing capability. We are making good progress. Our partners are expected to deliver the necessary parts to begin 12-inch film production in the coming months.
Sheldon Davis: Now the update. As mentioned, the film division had a significant breakthrough in the early part of the year. We were able to validate and demonstrate the mastering capability. The team is working hard to convert this technical breakthrough into manufacturing capability. We are making good progress. Our partners are expected to deliver the necessary parts to begin 12-inch film production in the coming months. The mastering milestone was a critical development that required new techniques and technology. This success is foundational throughout business. There is much more to be done to bring up products to the market. The team must build out the capabilities required for our alpha launch and ultimately a successful ramp to a full production and product release.
Speaker Change: Now the update. As mentioned, the film division had a significant breakthrough in the early part of the year. We were able to validate and demonstrate the mastering capability. The team is working hard to convert this technical breakthrough into manufacturing capability. We are making good progress.
Speaker Change: Our partners are expected to deliver the necessary parts to begin 12-inch film production in the coming months.
Speaker Change: The Mastering Officer was a critical development of required new techniques and technology.
Sheldon Davis: This success is foundational to our business. However, there is much more to be done to bring our products to market. The team must build out the capabilities required for our alpha launch and ultimately a successful ramp to full production and product release. To do so, we've begun reshaping and building out our team, starting with senior management. At Avon House earlier, we added Rothendell as Chief Technical Officer and Francois Pouet as Director of Business Development. Tim Cook checked in his role to prevent innovation out.
Speaker Change: This success is foundational to our business. There is much more to be done to bring our products to market. The team must build out the capabilities required for our alpha launch and ultimately a successful ramp to a full production and product release.
Sheldon Davis: To do so, we've begun reshaping and building out our team, starting with the senior management team. As an outsider, we added Rob Bendell, a Chief Technical Officer, and Frank Lockway as Director of Business Development. Tim Cook shifted his role to Chief Innovation Officer. Tim Cook's work in leadership has been crucial in getting us this far. He continues to play an important role in our film development activities. We are thankful for all He has done. In his role as chief innovation, the team will continue to focus on advancing our film design and technology in order to help bring the best product to market.
Speaker Change: To do so, we've begun reshaping and building out our team, starting with the Senior Management Team. As announced earlier, we added Rob Vandell as Chief Technical Officer and Francois Pouet as Director of Business Development.
Speaker Change: Tim Cook shifted his role to Chief Innovation Officer.
Sheldon Davis: Jim Cook's work and leadership have been crucial in getting us this far. He continues to play an important role in our film development activities. We are thankful for all he has done.
Speaker Change: Jim Cook's work in leadership has been crucial in getting us this far. She continues to play an important role in our film development activities. We are thankful for all he has done.
Sheldon Davis: In his role as Chief Innovation Officer, Tim will continue to focus on advancing our film design and technology in order to help bring the best product to market. Rob VanDell joins us as CTO. This is a wonderful addition.
Speaker Change: In his role as Chief Innovation Officer, Tim will continue to focus on advancing our film design and technology in order to help bring the best product to market.
Sheldon Davis: Rob Bendell joined the CTO. This is a wonderful addition at the Round Alpha Technical Leadership. Rob has extensive experience bringing the product technology to the market, you know, our motive, and building industry. Moreover, he is very familiar with manufacture, having previously been a fine manager and guardian automotive. This experience will be critical in launching our product and establishing a strong platform to grow our business. Frank Lockway joined this Director of Business Development. People playing a portfolio will be developing to go to market capabilities required for success. Frank Lockway's broad experience in financial mining analysis and strategy.
Sheldon Davis: If you round out the technical leadership, Rob has extensive experience bringing product technology to the market, you know, the automotive and building industries. Moreover, he is very familiar with manufacturing, having previously been a plant manager at Guardian Automotive. This experience will be critical in launching our product and establishing a strong platform to grow our business. Francois Ruiz, join this as director of business development. People playing in Fort Worth will be developing the go-to market capabilities required for success. Francois brings broad experience in financial planning, analysis, and strategy. Moreover, he has skill in understanding the value chain and transforming that into action. I've known Tim and worked with Rob and Francois for many, many years.
Speaker Change: Rob Vandell joins as CTO.
Rob Nendell: This is a wonderful addition if you round out the technical leadership, Rob has extensive experience bringing product technology to the market in automotive and building industries.
Rob Nendell: Moreover, he is very familiar with manufacturing, having previously been a plan manager in Guardian Automotive. This experience will be critical in launching our product and establishing a strong platform to grow our business.
Rob Nendell: Francois Ruiz, joint justice director of business development. People playing in pork roll were developing to go to market capabilities required for success. Francois brings broad experience in financial planning analysis and strategy. Moreover, he has skill in understanding the value chain and tramplating that into action.
Sheldon Davis: Moreover, he has skill in understanding the value chain and translating that into action. I've known Tim and worked with Rob in Frank Lock for many, many years. I'm excited by the potential of this team. I know that they position us for our future success.
Sheldon Davis: I'm excited by the potential of this team. I know that they position us for our future. To wrap up, there is much work to be done. Our management changes are a strong step forward. We remain optimistic about our Gen 1 Alpha launch in Q4 of this calendar year. I will now turn the call over to. Thanks, Sheldon.
Speaker Change: I've known Tim and worked with Rob and Francois for many, many years. I'm excited by the potential of this team. I know that they position us for our future success.
Sheldon Davis: Drapa, there is much work to be done. Our management changes are strong and step forward. We remain optimistic about our Gen 1 Alpha launch in Q4 this calendar year.
Speaker Change: To wrap up, there is much work to be done. Our management changes are a strong step forward. We remain optimistic about our Gen 1 Alpha launch in Q4 of this calendar year. I will now turn the call over to Doug.
Unknown Executive: I will now turn the call. Hope go to death.
Douglas Croxall: Thanks, Sheldon. All right, let's move into the fiber optic division.
Doug Croxall: All right, let's move into the fiber optic division. The last nearly two years have taught us some pretty valuable lessons, a great deal about both the fiber construction market, how to operate, and how, importantly, not to operate within it. As evidenced in today's financial report, Crown Fibers is generating revenue and multiple markets under the leadership of Corrie Boas. We named this President's construction in early February of this year.
Douglas Croxall: The last nearly two years have taught us some pretty valuable lessons, a great deal about both the fiber construction market, how to operate, and how importantly not to operate within it. As evidenced in today's financial report, Crown Fibers generating revenue and multiple markets under the leadership of Cory Boas. We named President Construction in early February of this year. We have current projects in Idaho, Nevada, Oregon, and Mexico. Cory not only added revenue and customers to Crown; would help to change our operating model that allows Crown to be cashful and positive on a project from day one.
Thanks Sheldon: Thanks Sheldon. All right let's move into the fiber optic division.
Speaker Change: The last nearly two years have taught us some pretty valuable lessons, a great deal about
Speaker Change: Fibers, both the fiber construction market, how to operate, and how, more importantly, not to operate within it. As evidenced in today's financial report, Crown Fibers generating revenue in multiple markets under the leadership of Corey Boas, who we named as President of Construction in early February of this year.
Doug Croxall: We have current projects in Idaho, Nevada, Oregon, and Mexico. Corey not only added revenue and customers to Crown but helped us change our operating model that allows Crown to be cashflow positive on a project from day one. As opposed to hiring hundreds of employees, we now deploy a model that includes a limited number of Crown employees and couples them with outside third-party subcontractors. This allows us to control costs on a project-by-project basis, as well as Lockheed Martin.
Speaker Change: We have current projects in Idaho, Nevada, Oregon, and Mexico.
Speaker Change: Corey not only added revenue and customers to Crown, but helped us change our operating model that allows Crown to be cashflow positive on a project from day one.
Douglas Croxall: As opposed to hiring hundreds of employees, we now deploy a model that includes a limited number of Crown employees and couples them with outside third-party subcontractors. This allows Crown's control costs on a project-by-project basis, as well as lock in our markets. Cory has market credibility and connections that allowed us to build a significant pipeline of revenue-generating projects. The pipeline leverage with his proven business model will allow Crown's generate revenue and soon positive net income. We also previously announced that we secured a large backbone project in Nevada. That includes primarily quiling and some horizontal directional drilling.
Speaker Change: As opposed to hiring hundreds of employees, we now deploy a model that includes a limited number of Crown employees and couple them with outside third-party subcontractors. This allows Crown to control costs on a project-by-project basis, as well as lock in our margins.
Doug Croxall: Corey has market credibility and connections that allowed us to build a significant pipeline of revenue-generating projects. The pipeline, leveraged with his proven business model, will allow Crown to generate revenue and soon positive net income. We also previously announced that we secured a large backbone project in Nevada that includes primarily quality and some horizontal directional drilling.
Speaker Change: Corey has market credibility and connections that allowed us to build a significant pipeline of revenue generating projects. The pipeline leveraged with his proven business model will allow Crown to generate revenue and soon positive net income.
Speaker Change: We also previously announced that we secured a large backbone project in Nevada. That includes primarily plowing and some horizontal directional drilling.
Douglas Croxall: Previously, Crown had received two clusters of the four clusters that constitute the project. Those two clusters will generate approximately 5.7 million in revenues. We communicated in our last call that we anticipated being awarded additional stages of the project as it continues through Nevada and eventually into the state of California. In July, we awarded an additional cluster into that under this agreement. We're pleased to have been awarded this additional work for our customer. Obviously, we're happy to receive additional revenue to the project brings. We were awarded this work due to the high quality of work and the efficiency with which we completed the other sections of the large project.
Doug Croxall: Previously, Crown had received two of the four clusters that constitute the project. Those two clusters will generate approximately $5.7 million in revenues. We communicated on our last call that we anticipated being awarded additional stages of the project as it continues through Nevada and eventually into the state of California. In July, we were awarded an additional cluster in Nevada under this agreement.
Speaker Change: Previously, Crown had received two clusters of the four clusters that constitute the project.
Speaker Change: Those two clusters will generate approximately $5.7 million in revenues.
Speaker Change: We communicated on our last call that we anticipated being awarded additional stages of the project as it continues through Nevada and eventually into the state of California. In July , we were awarded an additional cluster in Nevada under this agreement.
Doug Croxall: We're pleased to have been awarded this additional work for our customer. Obviously, we're happy to receive the additional revenue that the project brings. We were awarded this work due to the high quality of work and the efficiency with which we had completed the other sections of the large project.
Speaker Change: We're pleased to have been awarded this additional work for our customer. Obviously, we're happy to receive additional revenue that the project brings. We were awarded this work due to the high quality of work and the efficiency with which we had completed the other sections of the large project.
Douglas Croxall: Suffice to say, we would not be awarded the additional opportunity if we're not for our continuing commitment to exceeding customer expectations. High customer satisfaction and repeat business continue to fuel our pipeline.
Doug Croxall: It is to say we would not have been awarded the additional opportunity if it were not for our continuing commitment to exceeding customer expectations. High customer satisfaction and repeat business continue to fuel our pipeline. Our project with Twin Dolphin Club, an exclusive high-end 1,400 residential housing and resort master plan development, located in Los Cabos, Mexico is ongoing. Crown is currently constructing slant wells for the desalination plant that provides fresh water from the ocean to the hotel and surrounding residential development. We've actively posted videos of our slant well construction on our various social media channels.
Speaker Change: Suffice to say, we would not be awarded the additional opportunity if it were not for our continuing commitment to exceeding customer expectations. High customer satisfaction and repeat business continue to fuel our pipeline.
Douglas Croxall: Our project with Twin Dolphin Club located in Los Cabo, Mexico is ongoing. The Twin Dolphin Club is an exclusive high-end 1,400 residential housing and resort master plan development. Crown is currently constructing slant wells for the desalination plan that provides fresh water from the ocean to the hotel and surrounding plan residential development. We've actively posted videos of our slant well construction on our various social media channels. The Twin Dolphin project is expected to conclude in the early fall timeframe and is expected to generate about 3.5 million in revenue. The opportunity was generated and is managed by Corey Boas.
Speaker Change: Our project with Twin Dolphin Club, located in Los Cabos, Mexico, is ongoing.
Speaker Change: The Twin Dolphin Club is an exclusive high-end 1,400 residential housing and resort master plan development.
Speaker Change: Crown is currently constructing slant wells for the desalinization plant that provides fresh water from the ocean to the hotel and surrounding planned residential development.
Speaker Change: We've actively posted videos of our slant well construction on our various social media channels. The Twin Dolphins project is expected to conclude in the early fall time frame and is expected to generate about $3.5 million in revenue.
Doug Croxall: The Twin Dolphins project is expected to conclude in the early fall time frame and is expected to generate about $3.5 million in revenue. The opportunity was generated and is managed by Corey Boas. We expect this new approach of plant well construction to lead to new revenue opportunities in Mexico, Central America, and the Caribbean. I'd now like to focus on the formation of our two new divisions, ELEMENT 82 and P.E.
Douglas Croxall: We expect this new approach. Slant well construction to lead to new revenue opportunities in Mexico, Central America, and the Caribbean.
Speaker Change: The opportunity was generated and is managed by Corey Boas. We expect this new approach of plant well construction to lead to new revenue opportunities in Mexico, Central America, and the Caribbean.
Douglas Croxall: I'd now like to focus on the formation of our two new decisions. Element 82 and PD pipelines. Element 82 will focus on lead pipe inspection, and PD pipelines will focus on lead pipe remediation. Lead in drinking water pipe represents an enormous problem for the United States. The US Environmental Protection Agency estimates that about 9.2 million lead pipes carrying drinking water to the American tap. The National Resource Council has estimated numbers as high as 12.8 million pipes. These numbers could be significantly higher given the poor mapping and enormous complexity of our country's water systems. Despite the range, experts agreed that millions of households remain at risk of lead exposure to their drinking water.
Doug Croxall: pipeline. Element 82 will focus on lead pipe inspection, and PE pipelines will focus on lead pipe remediation. Lead in drinking water pipes represents an enormous problem for the United States. The U.S. Environmental Protection Agency estimates that about 9.2 million lead pipes carry drinking water to the American tap. The National Resource Council estimated numbers as high as 12.8 million bytes, but these numbers could be significantly higher given the poor mapping and enormous complexity of our country's water system. Despite the range, experts agree that millions of households remain at risk of lead exposure through their drinking water.
Speaker Change: I'd now like to focus on the formation of our two new divisions, Element 82 and PE Pipelines. Element 82 will focus on lead pipe inspection and PE Pipelines will focus on lead pipe remediation.
Speaker Change: Led in Drinking Water Pipe represents an enormous problem for the United States. The U.S. Environmental Protection Agency estimates that about 9.2 million lead pice carrying drinking water to the American taps.
Speaker Change: The National Resource Council has estimated numbers as high as 12.8 million pipes. These numbers could be significantly higher given the poor mapping and enormous complexity of our country's water systems.
Speaker Change: Despite the range, experts agreed that millions of households remained at risk of lead exposure to their drinking water.
Douglas Croxall: To establish these divisions, Crown has hired a team of world-class experts, innovators, and operators. 18-year veteran David Kinsella will serve as president of Element 82 and PD pipelines. Chuck Hansen, a 40-year water pipe industry expert, joins Crown as chief advisor lead pipe assessment. To assist Mr. Kinsella, Mike Gap and Matt Campos have joined in project management and engineering roles for Element 82 projects. Element 82 is teamed with Chuck Hansen and is California-based company ElectroStand to offer services to companies' revolutionary swordfish and health tools. Swordfish automatically detects various pipe materials using electric resistance, a low-voltage machine intelligent method.
Doug Croxall: To establish these divisions, Crown has hired a team of world-class experts, innovators, and operators. 18-year veteran David Kinsella will serve as president of Element 82 and PE Pipelines. Chuck Hansen, a 40-year water pipe industry expert, joins Crown as Chief Advisor for Lead Pipe Assessment. To assist Mr. Kinsella, my staff and Matt Campos have joined in project management and engineering roles for Element 82 projects. Element 82 is teamed with Chuck Hanson and his California-based company Electroscan to offer services for the company's revolutionary Swordfish handheld tool. Swordfish automatically detects various pipe materials using electric resistance, a low-voltage machine-intelligent method. Before Swordfish, no technology other than digging or excavation was commercially available to accurately and reliably identify lead pipes.
Speaker Change: To establish these divisions, Crown has hired a team of world-class experts, innovators, and operators.
Speaker Change: 18-year veteran David Kinsella will serve as president of Element 82 and PE Pipelines. Chuck Hansen, a 40-year water pipe industry expert, joins Crown as Chief Advisor Lead Pipe Assessment.
Speaker Change: To assist Mr. Kinsella, Mike App and Matt Campos have joined in project management and engineering roles for Element 82 projects.
Speaker Change: Element 82 is teamed with Chuck Hanson and his California-based company Electroscan to offer services to the company's revolutionary Swordfish handheld tool. Swordfish automatically detects various pipe materials using electric resistance, a low-voltage machine intelligent method.
Douglas Croxall: Before Swordfish, no technology other than digging or excavation was commercially available to accurately and reliably identify lead pipe. Recognized by the U.S. EPA, Swordfish quickly and accurately identifies multiple varied pipe materials. The swordfish technology in Chuck Hansen's expertise provides Crown with significant competitive advantage. Element 82 is already commenced new projects in New York, Virginia, and Florida.
Speaker Change: Before Swordfish, no technology other than digging or excavation was commercially available to accurately and reliably identify lead pipes.
Doug Croxall: Recognized by the U.S. EPA, Swordfish quickly and accurately identifies multiple berry pipe materials. The Swordfish technology and Chuck Hansen's expertise provide Crown with a significant competitive advantage. Element 82 has already begun new projects in New York, Virginia, and Florida. Over the course of the next month or two, Element 82 will be making announcements regarding purchase orders and revenue targets for the remainder of this calendar year. All right. With that, I'm going to turn it over to Joel for a review of our Q2 financial results, and then I'll handle the closing remarks. Joel?
Speaker Change: Recognized by the U.S. EPA, Swarthfish quickly and accurately identifies multiple varied pipe materials. The Swarthfish Technology and Chuck Hanson's expertise provide pram with significant competitive advantage.
Douglas Croxall: Over the course of the next month or two, Element 82 will be making announcements regarding purchase orders and revenue targets for the remainder of this calendar year.
Speaker Change: Element 82 has already commenced new projects in New York, Virginia, and Florida. Over the course of the next month or two, Element 82 will be making announcements regarding purchase orders and revenue targets for the remainder of this calendar year.
Douglas Croxall: All right, with that, I'm going to turn it over to Joel for a review of our Q2 financial results, and I'll handle the closing remarks.
Joel Krutz: Thank you, Doug. Good afternoon, everyone. Today we'll walk through Crown's second quarter 2024 financial results. First, though, just a quick update on Crown's NASDAQ compliance. After working closely with NASDAQ, Crown received a notification from the Listing and Qualifications Department on July 25, that confirmed Crown as being fully compliant again. On to the Q2 financials, for the court around June 30, 2024, Crown got 4.6 million in revenue, which represented a net sixfold increase compared to the first quarter of this year.
Speaker Change: All right, with that, I'm going to turn it over to Joel for a review of our Q2 financial results, and I'll handle the closing remarks. Joel? Thank you, Doug. Good afternoon, everyone.
Joel Krutz: Joel, thanks. Doug.
Joel Krutz: Good afternoon, everyone. Morning. Today we will walk through Crown's second quarter 2024 financial results. Firstly, though, just a quick update on Crown's NASDAQ compliance.
Joel Krutz: The company's revenue now stands at $5.3 million, as compared to just $0.1 million for the 6 months ended June 30, 2023. Costa Avenues, which was solely generated by Crown Fiber Optics, was $4.4 million and $23,000 for the three months ended June 30, 2024, and June 30, 2023, respectively.
Joel: Good morning. Today we will walk through Crown's second quarter 2024 financial results.
Speaker Change: Firstly though, just a quick update on Crown's NASDAQ compliance.
Joel Krutz: After working closely with NASDAQ, Crown received a notification from the Listing Qualification Department on July 25 that confirmed Crown as being fully compliant again. On to the Q2 financials. For the quarter round is June 30, 2024, Crown got 4.6 million of revenue, which represented a net sixfold increase compared to the first quarter of this year. For the six months end is June 30, 2024. The company's revenue now stands at 5.3 million; this compared to just 0.1 million for the six months ended in 2023, June 30. Computer revenue, which was solely generated by Crown 5 Rockdex, was 4.4 million dollars and 23,000 for the three months ended with June 30, 2024, and 2023 respectively.
Joel: After working closely with NASDAQ, Crown received a notification from the Listing and Qualifications Department on July 25,
Speaker Change: that confirmed Crown as being fully compliant again.
Speaker Change: Onto the Q2 financials
Speaker Change: The quarter ended June 30, 2024, around $4.6 million of revenue, which represented a six-fold increase compared to the first quarter of this year.
Speaker Change: For the six months ended June 30, 2024, the company's revenue now stands at $5.3 million, which compared to just $0.1 million for the six months ended in 2023, June 30.
Speaker Change: Costa Avenues, which was solely generated by Crown Fibre Optics, was $4.4 million, and $23,000 for the three months ended June 30, 2024, and 2023, respectively.
Joel Krutz: There were 5.8 million and 0.1 million for the six months ended June 30, 2024 and 2023 respectively. They cost the revenue of 4.1 million, includes subcontract labor of 2.7 million, equipment costs of 0.6 million, and other cost related supplies and materials and maintenance of 0.7 million.
Joel Krutz: There were $5.8 million and $0.1 million for the six months ended June 30, 2024 and June 30, 2023, respectively. The cost of revenue of $4.0 million includes subcontract labor of $2.7 million. Equipment costs of $0.6 million and other costs related to supplies, materials, and maintenance of $0.7 million. Appreciation and Amortization Expense for the three months and Q2, with 0.2 and 0.1 Lily, respectively. R&D expenses were $1.1 million for the three-month period and June 30th compared to 0.5 million for the last quarter in 2023.
Speaker Change: There were 5.8 billion and 0.1 million for the six months ended due to 30 and 2024 and 2023
Speaker Change: The cost of revenue of $4.0 million includes a subcontract labor of $2.7 million, equipment costs of $2.6 million, and other costs related to supplies, materials, and maintenance of $0.7 million.
Joel Krutz: James. Appreciation and amplification expense for the three months in Q2, with 0.2 and 0.1 million, respectively. Our and the expenses will 1.1 million for the three months and the June 30th, compared to 0.5 million for the last quarter in 2020 to read. This increase of 0.6 million dollars is primarily related to increases in salaries and benefits, which includes the addition of the new film leadership. DNA expenses were 4.2 million for the quarter, which included 2.4 million of non-cash stock compensation expense. The 1.1 million dollar decrease in DNA is related to a reduction in professional fees of 1.4 million, offset by an increase in compensation and benefits related to wages of 1.3 million.
Speaker Change: depreciation and amortization expense for the three months
Speaker Change: and Q2 with 0.2 and 0.1 million respectively.
Speaker Change: R&D expenses were $1.1 million for the three months.
Speaker Change: and the June 30th compared to 0.5 million for the last for the last quarter in 2023.
Joel Krutz: This increase of $1.6 million is primarily related to increases in salaries and benefits, which includes the addition of the new film leadership. DNA expenses were $4.2 million for the quarter, which included $2.4 million of non-cash stock compensation. The $1.1 million decrease in G&A is related to a reduction in professional fees of $1.4 million, offset by an increased compensation of benefits related to wages of $1.3 million.
Speaker Change: This increase of $0.6 million is primarily related to increases in salaries and benefits, which includes the addition of the new film leadership.
Speaker Change: P&A expenses were $4.2 million for the quarter, which included $2.4 million of non-cash stock compensation expense.
Speaker Change: The $1.1 million decrease in G&A is related to a reduction in professional fees of $1.4 million.
Speaker Change: Offset by an increase in compensation and benefits related to wages of $1.3 million.
Joel Krutz: Losses from operations for the second quarter were 4.9 million dollars, in line with the same quarter in 2023. June 8 is 8 operating losses of 8.6 million were compared to 9 million in 2023. Finally, net losses were 5 million dollars compared to Q1's, 2023, 40.5 million. The 9.5 million dollar reduction improvement was due to reductions in other expenses, including debt interest and amortization, fair value right down from last year's balance sheet restructuring. On the cash, with 6 months and a June 30, net cash increased 2.9 million to 4 million dollars as the company raised 11.8 million through financing activities, primarily as e-lock, and deployed 8.9 million cash in operations.
Joel Krutz: Losses from operations for the second quarter were $4.9 million, in line with the same quarter in 2023. Jr. Today, operating losses of $8.6 million were compared to $9 million in 2023. Finally, net losses were $5 million compared to Q1 2023; it's $14.5 million. The $9.5 million reduction or improvement was due to reductions in other expenses, including debt interest and amortization, and fair value write-downs from last year's balance sheet restructuring.
Speaker Change: Losses from operations for the second quarter were $4.9 million in line with the same quarter in 2023.
Jr.: June year-to-date operating losses of $8.6 million were compared to $9 million in 2023.
Speaker Change: Finally, net losses were $5 million compared to Q1 2023's $14.5 million.
Speaker Change: The $9.5 million reduction or improvement was huge reductions in other expenses including debt interest and amortization, share value write downs from last year's balance sheet restructuring.
Joel Krutz: On to cash, and for the six months ended June 30, net cash increased $2.9 million to $4 million. The company raised $11.8 million through financing activities, primarily through e-lofts, and deployed $8.9 million of cash in operation. And just looking forward, we expect the strong growth trajectory to continue and are projecting our third quarter revenues to be in line with previous guidance of $8 million. That's an financial update. That's back to you.
Speaker Change: On to cash, and for the six months end of June 30, net cash increased $2.9 million to $4 million.
Speaker Change: as the company raised $11.8 million through its financing activities, primarily as e-lock.
Joel Krutz: And just looking forward, we expect the strong growth trajectory to continue and are projecting our third quarter revenues being in line with previous guidance of 8 million dollars.
Speaker Change: and deployed $8.9 million in cash in operations.
Speaker Change: and just looking forward
Speaker Change: We expect the strong growth trajectory to continue and are projecting our third quarter revenues been in line with previous guidance of $8 million.
Joel Krutz: That concludes financial update.
Joel Krutz: All right, thanks Joel. On the last call call, I pointed out that if you look at where this company was a year ago compared to where we are today, then our progress is pretty substantial. And if you actually just look at where we were 90 days ago, compared to where we are now, we've grown tremendously. We believe the crowd is at the beginning of our growth phase in utility construction. And we also believe that 2025 is going to be a watershed year, both for investors in terms of our revenue generation and our EBITDA generation.
Douglas Croxall: All right, thanks, Joel. On the last call, I pointed out that if you look at where this company was a year ago compared to where we are today, then our progress was pretty substantial. And if you actually just look at where we were 90 days ago compared to where we are, we've grown tremendously.
Doug Beckew: That concludes the financial update. Doug, back to you. All right. Thanks, Joel. On the last call, I pointed out that if you look at where this company was a year ago compared to where we are today, that our progress was pretty substantial.
Speaker Change: and if you actually just look at where we were 90 days ago compared to where we are, we've grown tremendously.
Douglas Croxall: We believe that the crowd is at the beginning of our growth mode in utility construction. And we also believe that 2025 is going to be a watershed year both for investors in terms of our revenue generation and our even-dog generation.
Speaker Change: We believe that Crown is at the beginning of our growth mode in utility construction. And we also believe that 2025 is going to be a watershed year, both for investors in terms of our revenue generation and our EBITDA generation.
Douglas Croxall: We look forward to talking to everybody during our third quarter earnings call, which should be sometime in mid-November.
Joel Krutz: We look forward to talking to everybody during our third quarter earnings call, which should be sometime in mid November. With that, I'll turn it back to the operator. Thank you. This conference is now concluded. Thank you for attending today's presentation. You may now go.
Speaker Change: We look forward to talking to everybody during our third quarter earnings call, which should be sometime in mid-November. With that, I'll turn it back to the operator. Thank you.
Unknown Executive: With that, I'll turn it back to the operator. Thank you.
Unknown Executive: This conference is now concluded. Thank you for attending today's presentation. You may not-
Speaker Change: This conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines.
David Martinez: David Martinez, David Martinez, Jeremy Hubbard,[inaudible] Before we begin, I'd like to remind you that today's call contains certain forward-looking statements from management made within the meaning of the Section 27A of the Securities Act of 1933 as amended in Section 21A of the Securities and Exchange Act of 1934 as amended. Words such as should, projects, expects, intends, plans, beliefs, anticipates, hopes, estimates and variations of such words and similar expressions are intended to identify forward-looking statements.
David Martinez: These statements are subject to numerous conditions, many of which are beyond the control of the company, including those set forth in the risk factor section of the company's quarterly report on Form 10Q for the second quarter ended in 2024.
Unknown Executive: Copy of these documents are available on the SEC's website at sec.gov. Actual results made different materially from those expressed or implied, but such forward-looking statements, the company undertakes no obligation to update these statements for revisions or changes after the date of this call. Accept is required by law.
Doug Croxel: Now at this time, it's my pleasure to introduce Doug Croxel, CEO and Chairman of Crown Doug. Thanks, Jason. Welcome everyone to our second quarter, 2024 earnings call. As most of you know, Crown has been expanding its scope of services. Previously, Crown's comprised of two division, our Electrokinetic Film Division and our fiber optic construction division. Recently, we announced further expansion into lead pipe inspection as well as lead pipe remediation. We now have four complementing markets and revenue verticals, which allow us to broader to go broader within existing customers, while taking advantage of what we believe to be large total addressable markets. Most importantly, we've attracted a team of top talent across all four of our divisions to ensure that we execute and drive both growth and profitability across all of them.
Doug Croxel: I'd like to start with a discussion of our film division today. The development of our Electrokinetic Film has been a long and sometimes tedious process. In late February of this year, we announced that our film team installed a 12-inch mastering challenge for its Gen1 Alpha smart window insert product. We remain in a good position to start shipping the product, the birth product in small quantities in the next couple of months, towards the end of the calendar year.
Doug Croxel: With this technical milestone address, we announced that Sheldon Davis, previously a consultant to the company, was named president of our Electrokinetic Film Division. Sheldon's work history makes him the ideal person for Crown's exact stage of growth, and we're extremely encouraged by the progress that he has made in his short time in his new role. Sheldon and I have known each other since about 2016, while he was working at Guardian Glass co-industries companies. His knowledge of our target market, ink formations, window insert, glass manufacturing, and different glazing technology make him the perfect person for the job. We're excited to have him take a leadership role at this important time.
Sheldon Davis: Sheldon is here on the call with us today, and I've asked him to provide you with a further update on the status of our film division. Sheldon, thank you, Tyler. I appreciate the opportunity to update our progress on film division.
Sheldon Davis: In my previous company, I had the opportunity to interact with many different dynamically glazing companies, smaller and larger. We explored different solutions from ElectroKromic to novel lab technologies. I also talked with tenants, occupants, building engineers and building owners worldwide. They shared what they needed and wanted. I learned a lot about the frustrations about facade, windows, shading, and so much more. Through all of this, I saw the amazing potential of Crown ElectroKonetics technology and business.
Sheldon Davis: Crown technology was differentiated and well positioned to succeed. The team had great customer outreach and connections. They listened to and understood their customers exceptionally well. When I chose to come to Crown ElectroKonetics, I was excited and enthusiastic about being part of this team. It's been three months since joining Crown. Every day, reaffirmed my decision. Our dynamic 10th film technology and smart window inserts are excellent solutions for our target customers.
Sheldon Davis: Questions. Through conversations with our customers and within our value chain, our product looks uniquely to fill market needs. Technical progress has been good. We still expect the Gen 1 Alpha Smart Window Insert to be available in limited quantities by the end of the year. I am more enthusiastic and excited to be part of Crown today.
Sheldon Davis: Now the update. As mentioned, the film division had a significant breakthrough in the early part of the year. We were able to validate and demonstrate the mastering capability. The team is working hard to convert this technical breakthrough into manufacturing capability. We are making good progress. Our partners are expected to deliver the necessary parts to begin 12-inch film production in the coming months. The mastering milestone was a critical development that required new techniques and technology.
Sheldon Davis: This success is foundational throughout business. There is much more to be done to bring up products to the market. The team must build out the capabilities required for our alpha launch and ultimately a successful ramp to a full production and product release. To do so, we've begun reshaping and building out our team, starting with the senior management team.
Sheldon Davis: As an outsider, we added Rob Bendell, a chief technical officer, and Frank Lockway as director of business development. Tim Cook shifted his role to chief innovation officer. Tim Cook's work in leadership has been crucial in getting us this far. He continues to play an important role in our film development activities. We are thankful for all he has done. In his role as chief innovation team will continue to focus on advancing our film design and technology in order to help bring the best product to market.
Sheldon Davis: Rob Bendell joined the CTO. This is a wonderful addition at the Round Alpha Technical Leadership. Rob has extensive experience bringing the product technology to the market, you know, our motive, and building industry. Moreover, he is very familiar with manufacture, having previously been a fine manager and guardian automotive. This experience will be critical in launching our product and establishing a strong platform to grow our business.
Sheldon Davis: Frank Lockway joined this director of business development. People playing a portfolio will be developing to go to market capabilities required for success. Frank Lockway's broad experience in financial mining analysis and strategy. Moreover, he has skill in understanding the value chain and translating that into action. I've known Tim and worked with Rob in Frank Lock for many, many years. I'm excited by the potential of this team. I know that they position us for our future success. Drapa, there is much work to be done. Our management changes are strong and step forward. We remain optimistic about our Gen 1 Alpha launch in Q4 this calendar year.
Sheldon Davis: I will now turn the call hope go to death. Thanks, Sheldon.
Doug Croxel: All right, let's move into the fiber optic division. The last nearly two years have taught us some pretty valuable lessons, a great deal about both the fiber construction market, how to operate, and how importantly not to operate within it. As evidenced in today's financial report, Crown Fibers generating revenue and multiple markets under the leadership of Cory Boas.
Doug Croxel: We named President Construction in early February of this year. We have current projects in Idaho, Nevada, Oregon, and Mexico. Cory not only added revenue and customers to Crown would help to change our operating model that allows Crown to be cashful and positive on a project from day one. As opposed to hiring hundreds of employees, we now deploy a model that includes a limited number of Crown employees and couple them with outside third parties subcontractors.
Doug Croxel: This allows Crown's control costs on a project by project basis, as well as lock in our markets. Cory has market credibility and connections that allowed us to build a significant pipeline of revenue generating projects. The pipeline leverage with his proven business model will allow Crown's generate revenue and soon positive net income.
Doug Croxel: We also previously announced that we secured a large backbone project in Nevada. That includes primarily quiling and some horizontal directional drilling. Previously, Crown had received two clusters of the four clusters that constitute the project. Those two clusters will generate approximately 5.7 million in revenues. We communicated in our last call that we anticipated being awarded additional stages of the project as it continues through Nevada and eventually into the state of California. In July, we awarded an additional cluster into that under this agreement.
Doug Croxel: We're pleased to have been awarded this additional work for our customer. Obviously, we're happy to receive additional revenue to the project brings. We were awarded this work due to the high quality of work and the efficiency with which we completed the other sections of the large project. Suffice to say, we would not be awarded the additional opportunity if we're not for our continuing commitment to exceeding customer expectations. High customer satisfaction and repeat business continue to fuel our pipeline.
Doug Croxel: Our project with Twin Dolphin Club located in Los Cabo, Mexico is ongoing. The Twin Dolphin Club is an exclusive high end 1,400 residential housing and resort master plan development. Crown is currently constructing slant wells for the desalination plan that provides fresh water from the ocean to the hotel and surrounding plan residential development. We've actively posted videos of our slant well construction on our various social media channels. The Twin Dolphin project is expected to conclude in the early fall timeframe and is expected to generate about 3.5 million in revenue. The opportunity was generated and is managed by Corey Boas. We expect this new approach. Slant well construction to lead to new revenue opportunities in Mexico, Central America and the Caribbean.
Doug Croxel: I'd now like to focus on the formation of our two new decisions. Element 82 and PD pipelines. Element 82 will focus on lead pipe inspection and PD pipelines will focus on lead pipe remediation.
Doug Croxel: Lead in drinking water pipe represents an enormous problem for the United States. The US Environmental Protection Agency estimates that about 9.2 million lead pipes carrying drinking water to the American tap. The National Resource Council has estimated numbers as high as 12.8 million pipes. These numbers could be significantly higher given the poor mapping and enormous complexity of our country's water systems. Despite the range, experts agreed that millions of households remain at risk of lead exposure to their drinking water. To establish these divisions, Crown is hired a team of world-class experts, innovators, and operators.
Doug Croxel: 18-year veteran David Kinsella will serve as president of Element 82 and PD pipelines.
Doug Croxel: Chuck Hansen, a 40-year water pipe industry expert, joins Crown as chief advisor lead pipe assessment. To assist Mr. Kinsella, Mike Gap and Matt Campos have joined in project management and engineering roles for Element 82 projects. Element 82 is teamed with Chuck Hansen and is California-based company ElectroStand to offer services to companies' revolutionary swordfish and health tools. Swordfish automatically detects various pipe materials using electric resistance, a low-voltage machine intelligent method. Before swordfish, no technology other than digging or excavation was commercially available to accurately and reliably identify lead pipe. Recognized by the U.S. EPA, swordfish quickly and accurately identifies multiple varied pipe materials. The swordfish technology in Chuck Hansen's expertise provide Crown with significant competitive advantage.
Doug Croxel: Element 82 is already commenced new projects in New York, Virginia, and Florida. Over the course of the next month or two, Element 82 will be making announcements regarding purchase orders and revenue targets for the remainder of this calendar year.
Joel Krutz: All right, with that, I'm going to turn it over to Joel for a review of our Q2 financial results and I'll handle the closing remarks. Joel, thanks, Doug. Good afternoon, everyone.
Joel Krutz: Morning. Today we will walk through Crown's second quarter 2024 financial results. Firstly, though, just a quick update on Crown's NASDAQ compliance. After working closely with NASDAQ, Crown received a notification from the Listing Qualification Department on July 25 that confirmed Crown as being fully compliant again. On to the Q2 financials. For the quarter round is June 30, 2024, Crown got 4.6 million of revenue, which represented a net sixfold increase compared to the first quarter of this year.
Joel Krutz: For the six months end is June 30, 2024. The company's revenue now stands at 5.3 million, this compared to just 0.1 million for the six months ended in 2023, June 30. Computer revenue, which was solely generated by Crown 5 Rockdex, was 4.4 million dollars and 23,000 for the three months ended with June 30, 2024 and 2023 respectively. There were 5.8 million and 0.1 million for the six months ended June 30 and 2024 and 2023 respectively.
Joel Krutz: They cost the revenue of 4.1 million, includes subcontract labor of 2.7 million, equipment costs of 0.6 million, and other cost related supplies and materials and maintenance of 0.7 million. James. Appreciation and amplification expense for the three months in Q2, with 0.2 and 0.1 million respectively. Our and the expenses will 1.1 million for the three months and the June 30th, compared to 0.5 million for the last quarter in 2020 to read. This increase of 0.6 million dollars is primarily related to increases in salaries and benefits, which includes the addition of the new film leadership.
Joel Krutz: DNA expenses were 4.2 million for the quarter, which included 2.4 million of non-cash stock compensation expense. The 1.1 million dollar decrease in DNA is related to a reduction in professional fees of 1.4 million offset by an increase in compensation and benefits related to wages of 1.3 million. Losses from operations for the second quarter were 4.9 million dollars in line with the same quarter in 2023. June 8 is 8 operating losses of 8.6 million were compared to 9 million in 2023.
Joel Krutz: Finally net losses were 5 million dollars compared to Q1s, 2023, 40.5 million. The 9.5 million dollar reduction improvement was due to reductions in other expenses, including debt interest and amortization, fair value right down from last year's balance sheet restructuring. On the cash, with 6 months and a June 30, net cash increased 2.9 million to 4 million dollars as the company raised 11.8 million through financing activities, primarily as e-lock and deployed 8.9 million cash in operations. And just looking forward, we expect the strong growth trajectory to continue and are projecting our third quarter revenues being in line with previous guidance of 8 million dollars.
Doug Croxel: That concludes financial update. All right, thanks, Joel. On the last call, I pointed out that if you look at where this company was a year ago compared to where we are today, then our progress was pretty substantial. And if you actually just look at where we were 90 days ago compared to where we are, we've grown tremendously. We believe that the crowd is at the beginning of our growth mode in utility construction. And we also believe that 2025 is going to be a watershed year both for investors in term of our revenue generation and our even-dog generation.
Doug Croxel: We look forward to talking to everybody during our third quarter earnings call, which should be sometime in mid-Dovember.
Unknown Executive: With that, I'll turn it back to the operator. Thank you.
Unknown Executive: This conference is now concluded. Thank you for attending today's presentation. You may not-