ST. JOHN’S, NEWFOUNDLAND, August 29, 2019/GLOBE NEWSWIRE/ — Kraken Robotics Inc. (TSX-V: PNG, OTCQB: KRKNF) announced it has filed its financial results for the second quarter ended June 30, 2019. Additional information concerning the Company, including its unaudited condensed consolidated financial statements and related management’s discussion and analysis (“MD&A”) for the quarter ended June 30, 2019, can be found at Unless otherwise stated, all dollar amounts are Canadian dollar denominated.


Forward Looking Guidance

Kraken expects a very strong second half in 2019 and to achieve our previously announced revenue and net income objectives. This is based on a significant increase in battery shipments as well shipments of our sensor and system products that started in early Q3. Additional shipments of these products are expected to occur between now and year end. In addition to entering 2019 with a strong order backlog, Kraken has signed commercial contracts and funding contribution agreements of approximately $12 million year-to-date. While Kraken is considered an early stage company and quarterly results can be variable, our guidance for the fiscal year remains unchanged. Given that our year-to-date and deferred revenues are over $9 million (and we have made additional contract announcements since quarter end), we expect to generate 2019 revenues of at least $15 million. As we have stated in numerous previous announcements, the schedule and scope of our contract awards remain variable and impact the timing of revenue bookings. It should be noted that the positive financial impact of our Ocean Supercluster project announced earlier this year is not included in our 2019 guidance. We are currently finalizing formal contracts with the Ocean Supercluster governing body, federal government agencies and industry stakeholders. We expect that these contracts to be finalized by the end of Q3.


Q2 2019 Financial Highlights

  • Revenue of $1.3 million for the 3 months ended June 30, 2019, as compared to $3.7 million in Q2 2018; year-to-date revenue of $2.7 million as compared to $3.7 million in the year to date period in 2018.
  • EBITDA loss of $1.4 million for the 3 months ended June 30, 2019, as compared to positive EBITDA of $0.8 million in Q2, 2018. For the 6-month year-to-date period, EBITDA loss was $1.7 million as compared to an EBITDA loss of $0.5 million in the year ago period.
  • For the quarter, net loss was $2.0 million, versus net income of $0.6 million in Q2, 2018.
  • Deferred revenue at June 30, 2019 was $6.5 million.
  • Quarter end cash balance of $5.4 million, up slightly from $4.9 million at the end of 2018.
  • Quarter end total assets of $20.1 million compared to $14.0 million at the end of 2018.
  • Kraken has $1.6 million in previously awarded funding to draw upon from government agencies. This amount is not recorded in our financial statements until the cash is received and as such is an off-balance sheet asset at the end of Q2, 2019.


CEO Comments

“Our first half has laid the foundation for significant revenue growth in 2019 and beyond. During Q2, we moved into new manufacturing facilities in both Newfoundland and Nova Scotia; and continued to add technical and production resources at Kraken Power in Germany. We have madeinvestments in product development, manufacturing capacity and sales channel expansion.The quarter ended with a major announcement for our $20 million OceanVision™ project as part of Canada’s Ocean Supercluster,” said Kraken CEO Karl Kenny. “We expect subsea battery shipments to our commercial and military customers to continue to ramp. In our sensor and systems business, we are working towards closing new contracts and are nearing the final decision stages of several large military contract pursuits. Our pipeline remains robust and we are excited that our industry growth trends remain favourable. We see a significant revenue opportunity in front of us as our new technologies and products get introduced and adopted in both military and commercial markets.”


Q2 Highlights

  • $1.7 million of purchase ordersfrom Ocean Infinity for AquaPix® SAS sensors and support.
  • $1 million financial contributionfrom the Government of Newfoundland and Labrador under the Innovation and Business Development Funding program. The funding is being used for the initial phase of the Ocean Supercluster OceanVision™ project.
  • Kraken delivered on a contract that was awarded in Q1: $0.6 million contractfor a military subsea battery solution.
  • Kraken moved into a new 19,000 square foot facility in Mount Pearl, Newfoundland and a 4,000 square foot assembly facility in Dartmouth, Nova Scotia.
  • Announced that long-standing customer, ECA Group, was part of the winning consortium for the Belgium and Netherland navy mine hunting program. ECA Group’s share of the contract is valued at approximately €450 million. Kraken executives met with ECA in France in late July. If Kraken is successful in contract execution with ECA and all contract options are exercised, Kraken’s portion of the program is estimated at over C$30 million.
  • Conditional approval by the Ocean Supercluster of a $5.9 million contribution towards Kraken’s $20 million OceanVision™ We expect to finalize project contracting by the end of Q3 with the balance of funding from other federal and provincial government agencies, existing project participants and industry stakeholders to be committed for the duration of the three-year effort. We plan to formally commence the OceanVision™ project in late Q3 /early Q4 by collecting several hundred square kilometers of ultra high-resolution seabed data from the Grand Banks and Atlantic Ocean.


Events Subsequent to Q2 Quarter End

  • Awarded $1.8 million of project funding from Husky Energy and the Province of Newfoundland and Labrador for the development of a mooring chain inspection sensor based on the Company’s SeaVision® 3D laser scanner.
  • Awarded $0.5 million contract from Geomar for SeaVision® 3D laser scanners.
  • Renewed our Royal Bank of Canada credit facilities increasing our revolving demand facility from $0.25 million to $1 million. This facility remains undrawn.
  • Completed a highly successful demonstration of Kraken’s synthetic aperture sonar and laser scanning technologies with Thayer Mahan and the United States National Oceanographic and Atmospheric Administration onboard Okeanos Explorer. To learn more visit:




  • Named to the MTR 100, an industry listing of the top 100 marine technology companies.



Kraken Robotics Inc. (TSX.V:PNG) (OTCQB: KRKNF) is a marine technology company that is dedicated to the production and sale of software-centric sensors and underwater robotic systems. The company is headquartered in St. John’s, Newfoundland with offices in Dartmouth, Nova Scotia; Toronto, Ontario; Bremen & Rostock, Germany; and Boston, Massachusetts. Kraken is ranked as a Top 100 marine technology company by Marine Technology Reporter. For more information, please visit,, Find us on social media on Twitter (@krakenrobotics), Facebook (@krakenroboticsinc) and LinkedIn.

This news release contains forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Kraken or its subsidiaries and customers to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Examples of such statements include statements with respect to the Company’s anticipated revenue growth; completion of industry contracts between the Company and its clients, and between its clients and other industry partners; anticipated impact of industry upgrade cycles in naval mine warfare and the anticipated and timely adoption of underwater robotics; the Company’s ability to capitalize on existing and future bids for services, including the Ocean Supercluster; among others.  Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information including such risks contained in the Company’s management’s discussion and analysis for the fiscal year ended December 31, 2018 and filed with Canadian securities regulators available on the Company’s issuer profile on SEDAR at Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all.

Certain forward-looking information in this press release constitutes future-oriented financial information or financial outlooks, within the meaning of securities laws. Such information is being provided to demonstrate the potential of the Company and readers are cautioned that this information may not be appropriate for any other purpose. Future-oriented financial information and financial outlooks, as with forward-looking information generally, are based on assumptions and subject to risks, uncertainties and other factors. Actual results may differ materially from what the Company currently expects. Readers are cautioned that any such future oriented financial information contained herein should not be used for purposes other than those for which it is disclosed herein. The Company and its management believe that that the prospective financial information as to the Company’s anticipated 2019 financial results has been prepared on a reasonable basis, reflecting management’s best estimates and judgments. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results.

The forward-looking information included in this news release are made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. All forward-looking information contained in this press release is expressly qualified in its entirety by this cautionary statement.

Neither the TSX Venture Exchange Inc. nor its Regulation Services Provide (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release, and the TSX Venture Exchange has neither approved nor disapproved the contents of this press release.


For further information, please contact:

Joe MacKay, Chief Financial Officer

(416) 306-0605


Greg Reid, Chief Operating Officer

(416) 818-9822


Sean Peasgood, Investor Relations

(647) 955-1274


Glenda Leyte, Marketing Manager

(709) 757-5757 extension 288