Company: KITTW
Filing Date: 2025-03-19
Form Type: 8-K
Source: 0001849820-25-000067
Chunk: 1

Company: Nauticus Robotics, Inc.
Filing Date: 2025-03-19
Form: 8-K
Item: Item 4.02
Chunk 1
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3 Form 10-Q, respectively, to be filed as soon as practicable.

The Company currently estimates that the impact of the accounting matter will result in changes in Q1 2024, Q2 2024 and Q3 2024 for Notes Payable, Interest Expense and Change in fair value of new convertible debentures, all on a non-cash basis. This debt was extinguished in Q4 2024 as it was converted to preferred shares so has a zero value as of the end of Q4 2024.

The table below illustrates a summary of the changes on the debt treatment, by comparing what was previously issued with what will be included in the restated financials in the amendment to the Q1 Form 10-Q, Q2 Form 10-Q and Q3 Form 10-Q, respectively. As a result of electing to use fair value accounting for the debt instrument, any interest and capitalized debt costs previously recorded will be reversed and will be considered as part of the fair value calculation. The exact values and accounts impacted are still under determination and other accounts including but not limited to interest expense will be included in the restatement.

This table also includes the end position as of 2024 when this debt was converted into preferred shares pursuant to an exchange agreement on December 27, 2024.

  Previously Reported                                                                                                                                 
                                Q4 2023                              Q1 2024                             Q2 2024           Q3 2024           Q4 2024  
  Debenture Value               $                  36,530,320        $                 36,530,320        $                 $                 $        
  Debt Discount                 $                  (16,593,357)      $                 (15,443,684)      $                 $                 $        
  As Restated                                                                                                                                         
                                Q4 2023                              Q1 2024                             Q2 2024           Q3 2024           Q4 2024  
  Original Debenture Value      $36,530,320                          $                 —                 $                 $                 $        
  New Debenture Value *         $                  —                 [Fair Value]                        [Fair Value]      [Fair Value]      $        
  Debt Discount                 $(16,593,357)                        $                 —                 $                 $                 $        

*The face value of the New Debenture is$36,530,230, but the fair value of this instrument at the end of each quarterly period has