Company: KITTW
Filing Date: 2025-04-15
Form Type: 10-Q/A
Source: 0001849820-25-000099
Chunk: 48

Company: Nauticus Robotics, Inc.
Filing Date: 2025-04-15
Form: 10-Q/A
Chunk 48
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:

| Level 1 – |     | Observable inputs such as quoted prices in active markets for identical assets or liabilities.                                                                                                                                                                                                                                 |
| Level 2 – |     | Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data. |
| Level 3 – |     | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs.                                     |

The estimated fair values of accounts receivable, contract assets, accounts payable, accrued expenses, and indebtedness with unrelated parties approximate their carrying amounts due to the relatively short maturity or time to maturity of these instruments. Notes payable with related parties may not be arms-length transactions and therefore may not reflect fair value.

The fair value of the New Convertible Debentures are measured at each reporting date in accordance with ASC 820-10, Fair Value Measurement , using a Monte Carlo simulation model. This model incorporates Level 3 inputs, including, current stock price, stock price volatility (historical and implied), risk-free interest rate (U.S. Treasury rates) and expected term to maturity. The fair value measurement is classified as Level 3 in the fair value hierarchy due to the use of unobservable inputs. At June 30, 2024 the following pre-reverse stock split assumptions were used in to estimate the fair value of the New Convertible Debentures: stock price of $ 0.1361, a risk free rate of 4.67%, implied volatility of 132% and a remaining term of 2.19years. The fair value of the new convertible debentures converted during the second quarter of 2024 was estimated using Monte Carlo simulations with the following pre-reverse stock split assumptions: stock price between $ 0.1380and $ 0.2309, a risk free rate of between 4.63% and 4.81%, implied volatility of between 123% and 133% and a remaining term of between 2.23years and 2.26years.

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#### NAUTICUS ROBOTICS, INC.

### NOTES TO CONDENSED CONSOLIDATED FINANC