CrayoNano Q4 2023 Results Webcast - 15 February 2024
Q&A received in relation to Q4 2023 Results
- How much are you looking to raise? Without a successful raise, how long does your current cash position last, and what are the alternatives?
We are currently engaged with advisers to support on our near-term funding requirements and will update once we have further details. There is a need to raise money this year while we continue to scale our revenue and move to a cashflow positive position. Pleasingly, though, we anticipate this to be the last required funding round as we successfully execute our growth plans.
We do also have other sources of financing, such as public funding and grants, and credit facilities.
We have a credit facility of NOK 12m and the bank is very happy to increase that to NOK 25 million as we scale up revenue. It is linked to working capital needs and receivables.
We have a fab-lite business model and continue to be focused on operational efficiencies and cost management.
- You previously indicated plans to list on the Euronext, but it now seems as though an IPO is your less preferred route, can you comment?
As we said in the release, strategic investors are considered preferable over a potential IPO at this stage. That’s mainly due to their ability to better support our strategy and operational growth plans. However, an IPO has not been totally discounted and certain potential strategic investors may consider an IPO important at a later stage.
Strategic investors would be companies within the wider related industry with complementary
operative- or strategic activities, or other synergy potential.
- What do you think you can grow your sales to this year from the NOK 13 million already contracted to be delivered? Are you happy with your speed of progress?
It is hard to accurately predict, but as we said in the release, there is good opportunity to increase the value of each frame contract beyond the initial minimum amounts, so the NOK 13 million is the absolute minimum. Currently our total unweighted pipeline is NOK 214 million, and our total weighted pipeline over NOK 61 million.
We are delighted with the considerable customer and industry interest shown, and the number of leads and opportunities we now have is significantly greater than at the end of last year. As we are focusing on the top tier, with design-in and lead times of typically 12 months, even if we land just a few we will be a highly scaled and profitable business.
Pleasingly, we are ahead of our schedule for OEMs and have good design-in activities with several blue-chip companies.
- Can you give more colour on the product roadmap? When do you actually anticipate launching the next generation products and are you on track to sell products in 2024.
The development of our product portfolio is a key focus for us. Our strategy is to gradually implement elements of our technology into new products to achieve and sustain a market leading position. A reduction in the price-performance ratio is key, and we are confident on achieving a significant reduction in our next product.
As I said in the presentation, we are targeting to launch a UV-C LED with a 50% reduction in the priceperformance parameter in Q4 this year. The first priority is our internal EPI wafer and template technology for cost down and yield increases. We are contacting and starting qualification and early design-in activities with selected customers and partners for an early involvement with early designin activities from the middle of this year. The next step would include an implementation of our nanowire structure design to drive further cost down and performance increase.
- Why did you move operations to Taiwan and now have less employees in Norway?
It was strategically and operationally very important to move operations to Taiwan and build a footprint there. It means we are closer to the supply chain and strategic partners for development and production. Taiwan produces over 60% of the world’s semiconductors and over 90% of the most advanced ones. Moving operations there creates meaningful efficiencies and is in line with our fablite business model.
- There have been speculations online about a possible acquisition of CrayoNano, are you able to answer these speculations? Has anyone shown interest in buying Crayo in the last 12 months?
As a policy, we don’t comment on rumours. We don’t believe it is in our investors interest to sell the company anytime soon just as we are achieving good market penetration and demonstrating commercial success. There is considerable value being, and to be built, as we execute on our growth plans.
- Has anyone on the Board or Leadership Team bought shares in CrayoNano during the last 12 months? What guidelines do you have to follow in terms of notifying about trades in NOTC noted shares?
Employees have not sold shares while being employed by the company during the last 12 months. In April 2023 the general assembly approved an option scheme for all employees in the company. Further, in January 2024 it was decided in the extraordinary general assembly meeting that the Board of Directors compensation for 2023 shall consist of restricted Stock Units (RSUs) instead of a cash compensation. Consequently, all employees and the BoD have increased indirect ownership during the last 12 months. Details can be found in the general assembly minutes published on the CrayoNano website