Company: KITTW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001849820-25-000128
Chunk: 39

Company: Nauticus Robotics, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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 The Company capitalizes interest costs incurred to work in progress during the related construction periods. Capitalized interest is charged to cost of revenue when the related completed project is delivered to the buyer. The Company did not capitalize interest during the three months ended March 31, 2025 and 2024. 

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Table of ContentsNAUTICUS ROBOTICS, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

Earnings (Loss) per Share – Basic earnings per share is computed by dividing income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed in the same manner as basic earnings per share except that the denominator is increased to include the number of additional shares of common stock that could have been outstanding assuming the exercise of stock options and warrants (determined using the treasury stock method) and conversion of convertible debt. The Earnout Shares, which are subject to forfeiture if the achievement of certain stock price thresholds is not met, are not considered participating securities and are not included in the weighted-average shares outstanding for purposes of calculating earnings (loss) per share.Major Customer and Concentration of Credit Risk – We have a limited number of customers. During the three months ended March 31, 2025, sales to two customers accounted for 100% of total revenue. Sales to Customer A accounted for 75% of total revenue and sales to Customer B accounted for 25% of total revenue. The total balance due from these customers as of March 31, 2025, comprised 22% of accounts receivable, net. During the three months ended March 31, 2024, sales to two customers accounted for 100% of total revenue. Sales to Customer C accounted for 54% of total revenue and sales to Customer D accounted for 46% of total revenue. The total balance due from these customers as of December 31, 2024 was $0. Loss of these customers could have a material adverse impact on the Company.Reclassifications – Financial statements presented for prior periods include reclassifications that were made to conform to the current year presentation. There was no material impact to the condensed consolidated financial statements for these changes.Accounting Standards Issued but not adopted as of March 31, 2025 – In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, an update that improves income statement expense disclosure requirements. Under