Dear Shareholders:
The last few months have been some of the most difficult in recent memory for our economy, and even tougher for the capital markets. I am pleased to announce that during this tumultuous period, Crown has successfully closed equity raises which are required for the execution of our manufacturing plans. On
As communicated in previous earnings calls, access to non-dilutive debt financing is especially important as it will enable us to complete the planned production lines, have sufficient working capital through the end of 2023, and allow us to start delivery and installation of Smart Windows Inserts™ to our customers. The value of our intellectual property was instrumental to support the debt financing. Crown’s independent IP valuation indicated a combined patent and trade secret fair market value (FMV) of $94.4 million.
The proceeds from both the future debt financing and the recent equity financing would allow us to build our new roll-to-roll lines enabling Crown to produce film at any length and at widths ranging between 12 inches and 72 inches. Once the new lines are producing at capacity, Crown expects Smart Window Insert annualized revenues of approximately
Initially, our Smart Windows Inserts™ are expected to be produced in a limited run to fulfill orders from our early customers. With customer feedback on the performance, design, and usage of our first-generation Smart Window Insert™, we will iterate and develop our second-generation Smart Window Insert™. We then expect to transition production to our two new roll-to-roll production lines capable of manufacturing film with varying widths as needed.
Once we have our new production lines up and running, Crown will be able to actively start acquiring new US customers. Crown’s initial target market is US office buildings. Crown’s Smart Window Insert™ can lower the HVAC energy costs for building owners and help lower the building’s carbon footprint. The Smart Window Insert™ will be sold as a retrofit product to existing buildings.
I thank you all for your trust and your support and look forward to providing more updates as we near delivery of product later this summer.
Sincerely,
Chairman and CEO
About
Crown is a smart glass technology company and the creator of DynamicTint™ We Make Your Glass Smarter™. Originally invented by Hewlett-Packard (HP, Inc.), our technology allows any glass surface to transition between clear and dark in seconds. At the core of our technology is a thin film that is powered by electrically charged pigment which not only replaces common window tints but is also a more sustainable alternative to traditional window treatments. With its unique ability to be retrofitted to existing glass, DynamicTint™ offers myriad benefits related to reducing carbon emissions. The company is supported by a robust patent portfolio.
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IR Email: info@crownek.com
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