CrayoNano Q4 2022 Financial Results
CrayoNano AS (NOTC:CNANO) is pleased to announce its Q4 2022 Financial Results and to provide an update on the private placing. During 2022, CrayoNano launched the CrayoLED™ H-Series (CLH-N3S), an ultraviolet-C light emitting diode (UV-C LED) semiconductor packaged component and began building an order-book as key system integrator customers incorporate our UV-C LED into their product designs.
Jo Uthus, CEO said:
“We are exceptionally proud of everything we accomplished in 2022. In a challenging period for any business, we successfully launched our first in a series of disruptive UV-C LED and have in a short period of time built a strong sales funnel with significant customer interest and activity. We have engaged with over 100 potential customers, creating more than 140 sales leads, and have begun shipping samples for product trials and testing. The resulting demand and feedback we have received has been beyond our initial expectations, as we are now actively working with a larger number of customers to create manufacturing backlog.
This year, we will complete our planned private placement, followed by a listing on the Euronext Growth market. This is the start of the next chapter of growth for CrayoNano and we are excited to bring our story to a wider audience of investors as part of the listing.”
On 6 October 2022, CrayoNano launched the CrayoLED™ H-Series (CLH-N3S), an ultraviolet-C light emitting diode (UV-C LED) semiconductor packaged component. CrayoLED’s quality-driven design meets the high standards for reliability and performance in the fast-growing disinfection and sanitization markets.
The CrayoLED™ H-series is optimized for disinfection at a typical peak wavelength of 275 nm. Its small package footprint (3.5 mm x 3.5 mm) and high-power performance easily integrates into systems for residential, municipal, industrial and commercial segments, enabling system miniaturization and longer lasting solutions.
Preliminary results of the CrayoLED™ CLH-N3S H-Series UV-C LED Room Temperature Operating Life (RTOL) test also conducted by an independent, accredited third-party testing and qualification expert company was released and made available to customers for reducing the customer design-in timeline and accelerating time to revenues.
The lifetime tests aim to demonstrate the quality and reliability of the CrayoLED™ and generate data for our customers design-in support and facilitating a reduced design-in time.
Market and Customers
In the short period of time since product launch on October 6, CrayoNano has reached out to more than 100 customers for the CrayoLED H-series. We have registered over 140 new customer leads and have shipped product samples to 40 customers – working directly with a smaller number of customers for their design-in execution. This is in line with our controlled market entry plan – although exceeding internal expectations on the number of customer engagements for the initial phase.
Our customers cover European, US, Canadian and some Southeast Asian markets, spanning a wide range of application areas – with the majority of the customer applications in the water disinfection market – both Point of Use and Point of Entry applications.
CrayoNano is expecting the average design-in cycle of customers to be 6 to 12 months, depending on the start of production as well as their requirements for internal characterization and qualification.
As part of our planned operational ramp-up, we have spent the latter half of 2022 testing the production yields to ensure our final production levels are of sufficient quality. This testing will continue through 2023, while we ship smaller unit orders to customers for testing, to ensure readiness for high volume manufacturing from 2024.
The initial inventory of products in our Norway warehouse supports fulfillment of initial pilot customer orders as well as sampling products to customers in support of their design-in and qualification process.
The CrayoNano Taiwan warehouse is expected to be operational in Q1-23, ready to fulfill the majority of volume for our global customer base.
In the CrayoNano Taiwan branch ‘CrayoNano Fab2’ – the CrayoNano cleanroom was installed, tested, and commissioned during Q4-22. The build and commissioning of the cleanroom was on-budget, and the internal wafer manufacturing capacity will support the company’s transition from a fab-less to a fab-lite model.
During the final quarter of 2022, we recorded NOK 0.4m of revenue in the quarter as we begin shipping test units to potential customers. These early shipments were recorded at a 22% gross margin, below our intended operating level on account of the low scale. Payroll and related costs were NOK 6.4m in Q4 (8.6m Q4’21), whilst other operating costs increased to NOK 17.4m (3.2m Q4’21) on account of the increasing costs of preparing our operations for scale. For the period, net loss before tax was NOK 25.6m (11.5m Q4’21).
As part of the planned ramp up, we continue to invest in building an inventory of finished goods and invest in our fabrication capabilities. During the period, NOK 5.5m (15.9m Q4’21) was invested in CAPEX, with the total cash use during the period totalling NOK 29.8m (15.6m Q4’21). At the end of the period, cash on hand totalled NOK 10.2m (100.1m Q4’21).
Capital Raise Update
As announced on 13 January 2023, CrayoNano has signed a loan agreement with its three largest shareholders of total NOK 27.5 million. Provided that the private placement is successful, the full loan amount will be converted into equity at equal terms.
The planned private placement will conclude soon, with a listing on the Euronext Growth market shortly thereafter. Prior to completion, we will share more information on the possibility to participate as a private shareholder.
Conference Call Details
CrayoNano’s CEO, Jo Uthus, and CFO, Jens Kielland will host an analyst and investor video webcast today at 10:00 CET. The live video webcast will be accessible via the company’s website or the following link, CrayoNano Q42022 Financial Results Webcast.
A video replay service will also be made available after the webcast at the above web link.
For more information, please contact:
CEO Jo Uthus
Phone: +47 72 90 98 60
Founded in 2012, CrayoNano develops and manufactures nanomaterials-based semiconductor components using proprietary technologies. Headquartered in Trondheim, Norway, CrayoNano has expanded with a subsidiary in Taiwan and supporting customers globally with sales representatives in EMEA, APAC and Americas. CrayoNano’s innovative semiconductor components advance global solutions in health and safety, water purification, consumer, and industrial applications, and more. CrayoNano is registered on Euronext OTC in Norway under the ticker “CNANO”.