Houston-based Nauticus Robotics has strengthened its balance sheet by eliminating approximately $4 million of outstanding debt and boosting shareholder equity through a debt-for-equity conversion.

The company announced on June 30 that an existing lender agreed to convert roughly $4 million of outstanding principal and accrued interest under Nauticus's senior secured term loan agreement into 4,800 shares of the company's Series C convertible preferred stock. This transaction forms part of the company's ongoing efforts to optimize its capital structure and financial health.

According to Nauticus, this conversion removes about $4 million in debt from its balance sheet and is expected to aid the company in continuing to meet the Nasdaq's shareholder equity listing requirements.

This move is one of several taken by the autonomous underwater vehicle developer to fortify its financial position, as it simultaneously expands its commercial deployments and international operations. Earlier this year, the company reported increasing customer engagement and continued commercialization of its autonomous marine technology, including expansion into the Middle East and broader Gulf region.

Nauticus develops autonomous robotic systems, software, and related technologies for commercial offshore and defense applications. Its business encompasses robot-as-a-service offerings, vehicle and component sales, and software licensing. The company is also advancing its next-generation autonomous underwater vehicles while providing retrofit technologies designed to enhance traditional remotely operated vehicles and third-party platforms, with the goal of lowering offshore operational costs, improving safety, and reducing greenhouse gas emissions.