Crown Electrokinetics Corp. (NASDAQ:CRKN), a company specializing in electronic components, disclosed on Thursday that it had corrected an inadvertent omission in its annual financial report. The correction pertains to an absent consent document from its accounting firm, Marcum LLP, which was supposed to be included in the original filing.
The Corvallis, Oregon-based manufacturer, which is incorporated in Delaware, stated that the missing Exhibit 23.1 did not affect any financial results or other disclosures in Form 10-K for the year ended December 31, 2023. The document, which confirms the accounting firm's consent, has now been filed with the Securities and Exchange Commission (SEC) and attached as an exhibit to the company's latest 8-K filing.
The omission was rectified as of September 12, 2024, and the information was filed with the SEC on Friday. Crown Electrokinetics emphasized that the financial statements and disclosures provided in the original annual report remain unchanged.
As an emerging growth company, Crown Electrokinetics has the option to adopt new or revised financial accounting standards at a later date, but the company has not indicated whether it has elected this option.
This update is based on a press release statement.
InvestingPro Insights
Crown Electrokinetics Corp. (NASDAQ:CRKN) has recently addressed a filing oversight, ensuring all necessary documentation is now properly presented to the SEC. As investors digest this update, it's important to consider the company's financial health and market performance, which can be further understood through key metrics and insights from InvestingPro.
InvestingPro Data for CRKN reveals a challenging financial landscape for the company. With a market capitalization of just 5.44 million USD, Crown Electrokinetics appears to be a small player in the electronic components industry. The company's revenue for the last twelve months, as of Q2 2024, stands at 5.42 million USD, highlighting a staggering revenue growth rate of over 9000%. However, this growth has not translated into profitability, as indicated by a negative gross profit margin of -22.62% and an operating income margin of -336.65% for the same period.
Investors might find the company's stock performance concerning, with a significant price total return of -98.96% over the last year. The InvestingPro Fair Value estimate stands at 2.2 USD, which suggests potential undervaluation based on current market prices. This is further supported by a Price / Book ratio of 0.62, which could indicate that the stock is trading below its net asset value.
Among InvestingPro Tips, two insights stand out for CRKN. Firstly, the company holds more cash than debt on its balance sheet, which could provide some financial stability in the face of its negative profitability metrics. Secondly, despite the recent performance, analysts anticipate sales growth in the current year, offering a glimmer of hope for future revenue streams. For those interested in a more comprehensive analysis, InvestingPro offers a total of 17 additional tips, each providing a deeper dive into the company's financial health and market potential.
For investors and stakeholders, these InvestingPro Insights can help in making informed decisions about Crown Electrokinetics' stock, especially when considering the company's recent corrective action and its impact on investor confidence.
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