KRKNF - Kraken Robotics, Inc.
Related ticker symbols: TSXV: PNG
KRKNF Company Profile
Kraken Robotics (TSXV: PNG, OTC: KRKNF) is a marine technology company headquartered in Mount Pearl, Canada. The company was incorporated in 2008. It was initially known as Kraken Sonar Inc before being changed to Kraken Robotics Inc in 2017. Kraken Robotics designs, produces, and sells advanced sonar and laser sensors and systems and subsea power solutions for Unmanned Underwater Vehicles for military and commercial applications. The company is globally recognized as a leading innovator of Synthetic Aperture Sonar (SAS) – a revolutionary underwater imaging technology providing ultra-high-resolution imagery at superior coverage rates, dramatically improving seabed surveys.
The company provides KATFISH, a towed underwater vehicle for high speed and high-resolution seabed mapping; ThunderFish, a hovering autonomous underwater vehicle; ALARS, an autonomous launch and recovery system that enable an unmanned vehicle and its payloads to be brought aboard a host ship; and DataPod, a removable data storage module for marine applications. The firm also offers AquaPix Miniature interferometric synthetic aperture sonar (MINSAS), a configurable MINSAS; and SeaVision. Furthermore, the company offers pressure-tolerant encapsulated components, such as actuators, thrusters, batteries, electronics, and robotics. It also implements digital signal processing and user interface software for anti-submarine warfare sonar applications.
Business Plans and Achievements
Kraken Robotics is determined to boost innovation and modernization across the ocean sectors; science, fisheries, defense, offshore energy, etcetera. The company plans to achieve its objectives by deploying innovative technology platforms across the sector, strengthening the connection between technology providers and the ocean value chains, filling the gaps in the innovation ecosystem, and expanding global research and market opportunities.
The company has been making significant moves towards realizing its goals over the past years. In June 2021, the company signed an agreement with SH Defense (SHD) of Denmark covering the design and sale of containerized mine countermeasure and other subsea surveillance sensors and robotic solutions. This would ensure more manageable maintenance and surveillance of ships and containerized equipment.
Kraken entered a Cooperative Research and Development Agreement (CRADA) with Naval Surface Warfare Center (NSWC), Carderock, to fuel the adoption of Kraken’s pressure tolerant batteries into US Navy programs of record and sales with US Navy defense contractors.
The company was issued a contract extension worth $0.7 million from the Canadian Department of Defense. Kraken was bound to provide upgrades, testing, and new hardware and software for the ThunderFish®300 Autonomous Underwater Vehicle (AUV) that DND acquired from Kraken in 2019. The company also received a Robotics as a Service (RaaS) contract from Newfoundland and Labrador Hydro for the marine inspection of the Strait of Belle Isle Submarine Cable. The agreement obligated Kraken to deploy its KATFISH™ towed SAS sonar system. In addition, Kraken received a follow-on purchase order worth $0.4 million from a leading international defense contractor. Under the contract, the company was to offer development, maintenance, and training to the customer to enhance and modernize their sonar product.
Still, in July, Kraken signed a contract with a major international energy company to provide a detailed underwater inspection of the customer’s subsea assets. This would employ Kraken’s SeaVision® 3D laser scanner to conduct underwater inspection of an umbilical termination assembly to acquire metrology data on tubing within the internal structure. The firm also completed a $10 million bought deal equity financing and completed the acquisition of PanGeo. The acquisition would enable Kraken to offer a vibrant solution of world-leading technologies and services in subsea acoustic and optical imaging, autonomous robotics, and subsea batteries for customers in the defense and commercial markets.
On October 25, Kraken received a $0.5 million RaaS contract from the Government of Canada to test its ultra-high-resolution survey equipment with the Royal Canadian Navy (RCN).
On November 23, Kraken announced the award of $7.1 million in contracts for offshore subsea inspections to assist the offshore energy sector in attaining better, faster, and more valuable data.
For the year ending 12/31/2020 the company reported revenue of $12,275,000 and pre-tax income of -$5,547,000.
More News: OTC Markets
- Kraken Sonar Inc - March 2, 2022: Company website
The products and technology are world class and already in use with revenue over $12 million in 2020. The contracts with the Ccanadian government and a Fortune 500 customer are very positive and should lead to more sales. The $10 million recent financing will keep them going until they are profitable.
This is one of those "revenues and profits are right around the corner" type stocks. The fact is most of them never actually make it happen. Revenue peaked in 2019 and is on the decline. With the loss of a couple European naval contracts they will likely continue to decline.