Funding Agreement - Carbon Revolution plc has reached an agreement with Orion Infrastructure Capital to provide up to US$7 million in funding, with US$5 million released on October 31, 2025, in exchange for additional senior secured notes [1][2] - The second tranche of US$2 million is contingent upon mutual agreement and is expected to be released no earlier than March 31, 2026 [3] Program Cancellations - The company has canceled two electric vehicle wheel programs due to declining demand in the broader EV market, which was initially expected to contribute significant wheel volumes [4][5] - The company is pursuing claims related to these canceled programs [5] Revenue Forecasts and Compliance - Due to lower than expected demand, the company has revised its revenue forecasts downward and slowed its short-term expansion plans [4][5] - The company is currently not in compliance with certain Nasdaq continued listing requirements and has submitted a compliance plan, awaiting Nasdaq's determination [6] Additional Funding Needs - Despite the recent funding, the company anticipates needing additional funding in the short term and is actively seeking strategic alternatives to be completed within the fiscal year ending June 30, 2026 [7][8] - The need for liquidity is partially dependent on the outcome of customer claims related to the canceled programs [8] Company Overview - Carbon Revolution plc is a leading global manufacturer of lightweight advanced technology automotive carbon fiber wheels, supplying to high-performance, premium, and luxury automotive brands [9]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - AlphaVest Acquisition Corp (ATMV) is up 71% at $14.24 [3] - BranchOut Food Inc. (BOF) is up 44% at $3.04 [3] - rYojbaba Co., Ltd. (RYOJ) is up 35% at $5.14 [3] - GSI Technology, Inc. (GSIT) is up 25% at $16.24 [3] - Jowell Global Ltd. (JWEL) is up 18% at $2.02 [3] - General Motors Company (GM) is up 9% at $63.68 [3] - Crown Holdings, Inc. (CCK) is up 8% at $103.00 [3] - Spero Therapeutics, Inc. (SPRO) is up 8% at $2.49 [3] - Sunrun Inc. (RUN) is up 6% at $21.90 [3] - Foxx Development Holdings Inc. (FOXX) is up 5% at $4.50 [3] Premarket Losers - Neuphoria Therapeutics Inc. (NEUP) is down 66% at $5.19 [4] - New Era Energy & Digital, Inc. (NUAI) is down 9% at $5.09 [4] - Odyssey Marine Exploration, Inc. (OMEX) is down 8% at $3.28 [4] - Carbon Revolution Public Limited Company (CREV) is down 7% at $4.86 [4] - Coeur Mining, Inc. (CDE) is down 7% at $20.38 [4] - Hecla Mining Company (HL) is down 6% at $13.50 [4] - Verrica Pharmaceuticals Inc. (VRCA) is down 6% at $4.12 [4] - Sensei Biotherapeutics, Inc. (SNSE) is down 5% at $10.06 [4] - Whitehawk Therapeutics, Inc. (WHWK) is down 5% at $2.52 [4] - Greenidge Generation Holdings Inc. (GREE) is down 5% at $2.07 [4]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Artiva Biotherapeutics, Inc. (ARTV) has increased by 124% to $6.22 [3] - Akanda Corp. (AKAN) is up 39% at $3.10 [3] - Kezar Life Sciences, Inc. (KZR) has risen 38% to $5.80 [3] - Carbon Revolution Public Limited Company (CREV) is also up 38% at $5.15 [3] - Safe & Green Holdings Corp. (SGBX) has increased by 28% to $3.96 [3] - Achieve Life Sciences, Inc. (ACHV) is up 23% at $3.80 [3] - Revolution Medicines, Inc. (RVMD) has risen 8% to $53.90 [3] - Erayak Power Solution Group Inc. (RAYA) is up 8% at $5.76 [3] - ProQR Therapeutics N.V. (PRQR) has increased by 7% to $3.00 [3] - Bio Green Med Solution, Inc. (BGMS) is up 6% at $4.04 [3] Premarket Losers - American Rebel Holdings, Inc. (AREB) has decreased by 41% to $2.09 [4] - Sadot Group Inc. (SDOT) is down 25% at $5.35 [4] - AVITA Medical, Inc. (RCEL) has fallen 24% to $4.04 [4] - Soluna Holdings, Inc. (SLNH) is down 23% at $3.22 [4] - American Battery Technology Company (ABAT) has decreased by 17% to $4.70 [4] - CID HoldCo, Inc. (DAIC) is down 17% at $2.16 [4] - Pinnacle Food Group Limited (PFAI) has fallen 12% to $3.12 [4] - OnKure Therapeutics, Inc. (OKUR) is down 12% at $2.52 [4] - Whitehawk Therapeutics, Inc. (WHWK) has decreased by 12% to $2.29 [4] - Aqua Metals, Inc. (AQMS) is down 7% at $14.50 [4]

Core Viewpoint - Carbon Revolution plc has secured a total of US$27 million in funding, which includes a US$5 million release from Orion Infrastructure Capital and US$400,000 from existing loan reserves, but has revised its revenue forecasts downward due to a decline in wheel orders and may need additional funding in the near future [1][2][3]. Funding Details - Orion Infrastructure Capital has released US$5 million of a previously announced US$25 million facility, completing the full release of this facility [1]. - Existing Noteholders have released the final US$400,000 of existing loan reserves, bringing the total reserves released to US$2 million [1]. - Both OIC and Existing Noteholders have agreed to partial payment in kind for certain interest payments for approximately six months [2]. Revenue Forecast and Expansion Plans - The company has experienced a decline in the volume of wheels ordered, leading to a downward revision of revenue forecasts and a slowdown in short-term expansion plans [3]. - Due to the decline in revenue and delays in customer payments, the company anticipates needing additional funding within the next quarter [3]. - Discussions are ongoing with OIC regarding potential additional funding, including access to remaining funds under the Securities Purchase Agreement [3]. Company Overview - Carbon Revolution plc is a leading global manufacturer of lightweight advanced technology automotive carbon fiber wheels, supplying to high-performance, premium, and luxury automotive brands [4]. - The company has transitioned from producing single prototypes to manufacturing lightweight wheels for various automotive segments [4]. - Carbon Revolution aims to create a sustainable advanced technology business in the automotive industry [4].

Financial Performance - The company reported a loss after tax of $79.2 million in FY23, compared to a loss of $47.8 million in FY22, largely due to higher finance and capital raising costs[832]. - Net cash used in operating activities increased to $52.5 million from $46.0 million, with customer receipts rising by $12.1 million and government grants by $11.7 million[807]. - The Group projects to raise approximately US$27.5 million (A$42.3 million) through the partial use of its US$60 million (A$92.3 million) Capital Equity Facility (CEF) over the next 12 months[905]. - The Company projects net cash outflows from operating activities of approximately US$70.5 million, with net cash inflows from financing activities of US$33 million[871]. - The Group has deferred total payments of $8.9 million to suppliers, with payments required to be made in November 2023[909]. - The Company is not yet profitable and does not expect to generate positive net operating cash flows in the next 12 months[912]. - A material uncertainty exists regarding the Group's ability to continue as a going concern, which may affect asset realizability and liability discharge[913]. Debt and Financing - The total amount borrowed under the New Debt Program is US$60 million (A$90.1 million), with US$13.1 million deducted for costs and US$9.9 million used to repay previous lenders[821]. - Adjusted debt increased by $50.1 million to $50.4 million in FY23, primarily due to the New Debt Program[835]. - The New Debt Program includes financial covenants requiring minimum cash available and EBITDA thresholds, with potential breaches forecasted for February 2024 and August 2024[882]. - Carbon Revolution entered into a New Debt Program with a term loan of USD 60 million (AUD 90.1 million) at an interest rate of 8.5%[928]. - Principal repayments for the new loan will commence in December 2024, with monthly repayments of USD 2 million[928]. - The company has incurred costs of USD 20.6 million related to the establishment of the term loan, which are being amortized over the loan term[935]. Operational Developments - The first phase of the Mega-line was commissioned and is producing customer wheels, with production rates steadily increasing[819]. - The company has thirteen active awarded programs with five global OEMs, with six currently in production and seven in development[824]. - The company aims to reduce cash burn by minimizing operating and capital expenditure while expanding production capacity[837]. - The Company plans to launch new programs, including wheels for JLR Range Rover Sport SV and Ford Mustang Dark Horse, while raising sufficient funds to support growth[852]. - The company anticipates strong demand for its wheels and expects production rates to rise as global automotive supply chain issues are resolved[829]. - The Company expects to reduce the direct cost per wheel from $2,658 in FY23 to approximately $1,500 in the long term due to the operational Mega-line expected in 2025[924]. - The Company is subject to various testing and validation procedures for its wheel products, developed in conjunction with customers[874]. Investment and Shareholder Information - The Company entered into OIC Documents with OIC Investors, resulting in initial gross proceeds of US$35 million (A$54.7 million) from the issuance of Preferred Shares and OIC Warrant[846]. - An additional US$35 million (A$54.7 million) is available in escrow, with up to US$40 million (A$62.5 million) in aggregate proceeds contingent on further conditions for future manufacturing facility development[846]. - The OIC Warrant allows OIC to purchase up to 543,918 Ordinary Shares at an exercise price of US$0.01 per share[846]. - The Preferred Shares carry a fixed dividend rate of 12% per annum, payable quarterly in cash or additional shares at the Company's discretion[876]. - The Company has allocated US$15.5 million (A$23.2 million) into reserve funds, with specific amounts scheduled for release based on conditions met[856]. - The Company has issued US$35 million (A$54.7 million) of Preferred Shares to OIC, with US$35 million (A$54.7 million) in gross proceeds received[892]. Market and Risk Factors - Carbon Revolution's exposure to foreign currency risk is primarily related to its USD-denominated term loan and sales from new wheel programs scheduled to commence production in H2 2024[633]. - The Group's ability to raise further capital is subject to consent from OIC, which may restrict the Company's business activities[898]. - Management is seeking an extension of time to complete a project under a government grant agreement due to delays in compliance with expenditure requirements[934]. - The company actively reviews its funding position to ensure adequate facilities are maintained for current and anticipated needs[639]. - The company has a compound annual growth rate of 14.8% for wheel volume[934].

Core Insights - Carbon Revolution plc achieved record full-year revenue of US$47.3 million, representing an 87% increase year-over-year, despite a significant loss after income tax of US$146.4 million compared to US$52.5 million the previous year [1][6][15] Financial Performance - Full-year revenue for FY24 was US$47.3 million, up from US$25.3 million in FY23, marking an 87% increase [1][6] - The loss for the year was US$146.4 million, a 179% increase from the previous year's loss of US$52.5 million [1][6] - EBITDA for FY24 was reported at (US$120.5 million), compared to (US$42.3 million) in FY23, reflecting a 185% decline [6][24] - Adjusted EBITDA for FY24 was (US$35.0 million), worsening from (US$23.5 million) in FY23, indicating a 49% decline [6][24] Operational Highlights - The company made substantial progress in operational and liquidity actions, including the completion of the Mega-line initial commissioning, which is expected to enhance operational efficiency [2][7] - The ramp-up to full production of the Range Rover Sport SV program and increased volumes for the Corvette Z06/E-Ray program were key drivers of revenue growth [2][7] - The company has recently restructured and lowered its cost base, contributing to improved resilience [2][7] Leadership and Strategic Developments - Robert A. (Bob) Lutz was appointed as Chair of the Board of Directors, alongside Donald Hampton, Jr. as CEO and Alia Comai as Chief Revenue Officer, strengthening the leadership team [7] - The company received industry recognition at the 2024 PACE Automotive News awards, winning dual awards [7] Cash Position and Future Outlook - As of April 30, 2025, the company had US$1.0 million in unrestricted cash and US$3.6 million in a restricted trust fund related to the PIUS agreement [6][8] - The company expects to draw down the remaining US$5 million from OIC funds in calendar year 2025 [8]

Financial Viability and Funding - The company is not yet profitable and does not expect to achieve positive operating cash flows during the 12.5 month cash flow projection period starting May 14, 2025, requiring US$5.4 million in funding to remain viable[37][38] - The 12.5 Month Cash Flow Projections assume access to US$5 million of remaining committed funding under the December 2024 amendments to the OIC Financing, which may be released in US$5 million tranches[39] - The company anticipates receiving US$6.5 million from customers related to claims during the 12.5 month cash flow projection period[48] - The company has a Committed Equity Facility with Yorkville Advisors for the future issuance of up to US$60 million in Ordinary Shares, allowing advances of up to US$10 million at a time[44] - The company plans to refinance its secured debt before amortization payments commence in June 2026, as positive cash flows from operations will not cover these payments[55] - Financial covenants under the New Debt Program include thresholds for revenue and Adjusted EBITDA, with minimum cash requirements increasing to US$4 million in CY 2026 and US$5 million from January 31, 2027[67] - The company may face significant uncertainty regarding its ability to continue as a going concern if it cannot secure necessary funding[51] - The company has deferred payments of US$5 million due in November 2024 and an additional US$10 million payable within the next 12 months, contingent on further deferral agreements[49] - The company may not be able to raise additional funding needed through public or private offerings due to market conditions and restrictions from existing financing agreements[45] Operational Challenges and Risks - The company has a limited operating history and does not yet derive positive cash flow from operations, which poses risks for investors evaluating its financial performance[78] - The Company forecasts that it will win new customer program awards to fill capacity at its existing Australian manufacturing facility, but these discussions are at various stages and may not yield expected results[83] - The Company faces risks related to demand for its wheels, as current OEM contracts are not take-or-pay, leading to uncertainty in securing anticipated sales volumes[81] - Delays in the design and engineering phases of wheel programs may result in later-than-expected production and sales, adversely impacting revenue generation[90] - The Company may experience higher costs per wheel than anticipated due to various factors, including inflation and unexpected design changes, which could affect profitability[94] - The inability to pass on increased costs to customers may materially impact the Company's financial performance and profitability[97] - The Company has experienced and may continue to experience claims from OEM customers regarding non-conformance of delivered wheels, which could lead to loss of customers[99] - The Company is restricted by covenants in the OIC Financing that limit its operational flexibility and ability to engage in certain business activities[75] - The company is not yet profitable and requires further scale and a reduction in labor and materials costs per wheel to achieve profitability[102] - The company anticipates that the price for key raw material inputs will decrease as wheel volumes increase, but there is no guarantee of favorable negotiations with suppliers[125] - Shipping wheels late may result in the company incurring air freight costs and damages to customers, negatively impacting revenue and customer relationships[134] - The company faces risks related to delays in capacity expansion plans, which may lead to lower revenue or margins than expected[105] - The company relies on a single manufacturing facility, and any loss or failure of this facility could materially impact financial performance[132] - The company is exposed to claims from customers for late delivery or non-compliance with specifications, which may adversely affect profitability[113] - The company may experience increased costs due to price increases from suppliers that cannot be fully passed on to customers[116] - The company has limited flexibility in sourcing materials due to reliance on single suppliers for key inputs, increasing exposure to supply shortages[118] - Challenges in commissioning new equipment may lead to production delays and increased costs, impacting the ability to meet customer demands[138] - The company’s operations are dependent on timely supply of raw materials and equipment, and any disruptions may adversely affect manufacturing capabilities[124] - The company faces risks related to bespoke equipment breakdowns, which could lead to increased repair costs and production downtime, potentially impacting its ability to fulfill customer orders on time[141] - The implementation of new technology and manufacturing processes may result in higher than expected capital expenditures and production delays, affecting cash flow and profitability[142] - The company has experienced higher scrap rates and quality issues than anticipated, leading to increased production costs and potential damages to customers[147] - Customer return and warranty claims may exceed expectations, impacting the company's reputation and financial performance[160] - The company may incur significant costs and reputational damage due to product recalls, which could lead to reduced consumer demand and loss of market share[166] Regulatory and Environmental Concerns - The company may incur substantial costs related to compliance with environmental regulations, which could negatively impact its financial performance[199] - The Company is under pressure to find recycling solutions for scrap and end-of-life wheels, which may take longer or cost more than expected, impacting financial performance[200] - The Company's customers are increasingly concerned with environmental, social, and governance (ESG) matters, which may affect demand for its products if expectations are not met[204] - The Company may incur increased costs due to climate change initiatives and may not be able to pass these costs onto customers, affecting profitability[197] Human Resources and Labor Issues - The company has experienced higher than expected staff turnover, which may disrupt operations and impact strategic plans[180] - The current employment market conditions are challenging, making it difficult for the company to retain key personnel essential for maintaining customer and supplier relationships[179] - The company’s ability to execute its business strategy depends on the expertise of its key personnel, and loss of such personnel may adversely affect its operations[178] - Future negotiations of new Enterprise Agreements may increase overall business costs, potentially impacting the company's margins and financial performance[176] - Labor strikes in the U.S. automotive industry may adversely affect the demand for the Company's products, potentially leading to delays, reductions, or cancellations of orders[182] - The Company has experienced disruptions due to the COVID-19 pandemic, resulting in production disruptions and increased supply chain costs, which negatively impacted revenue[186] - International conflicts may cause supply chain disruptions and increase material input costs, leading to production delays and lower margins for the Company[189] Intellectual Property Risks - The Company holds an extensive intellectual property portfolio but faces risks of infringement claims from third parties, which could result in significant costs and operational disruptions[212] - If the Company cannot successfully defend against infringement claims, it may face damages and injunctions that could materially impact its operations and financial performance[216] - The Company seeks patent protection primarily in key markets such as the United States, certain European countries, China, Japan, and Mexico to manage costs effectively[220] - There is a risk that the Company's patented technologies may be exploited in jurisdictions without enforceable rights, potentially reducing demand for its products and adversely affecting financial performance[221] - The scope of patent protection can vary by jurisdiction, which may lead to narrower protections and challenges in maintaining competitive advantages in certain markets[222] - The Company has obtained trademark registrations in a limited number of countries, facing risks from third parties potentially using similar trademarks in unregistered jurisdictions[223] - The Company's confidential know-how and trade secrets are crucial for maintaining product quality and competitive advantage, with unauthorized access posing significant risks[224] - Misappropriation of confidential information could lead to reduced sales and profitability, as competitors may develop similar technologies[225] - The Company may face challenges in protecting, registering, and maintaining its intellectual property rights, particularly in securing patents across multiple jurisdictions[227] - Patent applications must be filed in each country for enforceable rights, and there is no guarantee of patent grants, which may limit protection scope[228]

Core Viewpoint - Carbon Revolution plc, a leading manufacturer of lightweight carbon fiber wheels, will hold a conference call on May 15, 2025, to discuss its fiscal 2024 results [1][2]. Group 1: Company Overview - Carbon Revolution plc (Nasdaq: CREV) is a Tier 1 automotive supplier specializing in the advanced manufacture of carbon fiber wheels for the global automotive industry [4]. - The company has transitioned from producing single prototypes to designing and manufacturing lightweight wheels for high-performance, premium, and luxury vehicles [4]. - Carbon Revolution aims to create a sustainable advanced technology business that supplies its innovative wheel technology to automotive manufacturers worldwide [4]. Group 2: Conference Call Details - The earnings press release will be issued after market close on May 14, 2025, and will be available on the company's investor website [2]. - The conference call can be accessed via the internet or by telephone, with specific numbers provided for domestic and international callers [2]. - A replay of the conference call will be available from May 15, 2025, until May 29, 2025, with access details provided [3].

Core Viewpoint - Carbon Revolution plc has appointed Donnie Hampton, Jr. as the Acting Chief Executive Officer, bringing extensive experience in the automotive supply industry to lead the company into its next growth phase [1][2][3]. Company Leadership - Donnie Hampton, Jr. has over three decades of experience with Tier 1 automotive suppliers, including roles at Maxion Wheels and Pace Industries, which positions him well to drive Carbon Revolution's operational excellence and expansion [2][4]. - Bob Lutz, Chairman of the Board, emphasized Hampton's expertise in global manufacturing and his hands-on experience, making him an ideal leader for the company [3]. Company Growth and Strategy - Under the previous CEO Jake Dingle, Carbon Revolution transitioned from a research-focused startup to a leading supplier of carbon fiber wheels, setting the stage for future growth [5][6]. - The company aims to leverage Hampton's experience to enhance its operations and expand its customer base in the global automotive market [3][6]. Product and Market Position - Carbon Revolution specializes in the advanced manufacture of lightweight carbon fiber wheels, targeting high-performance, premium, and luxury automotive segments [7]. - The company has successfully moved from prototype development to mass production, establishing itself as a significant player in the automotive industry [7].

Core Points - Carbon Revolution plc, a leading manufacturer of lightweight carbon fiber wheels, announced the release of an additional US$5 million from a previously announced US$25 million facility, bringing the total released to US$15 million [1][2] - The company also received a further US$400,000 from existing loan reserves, increasing the total reserves released to US$1.2 million out of an agreed US$2 million [1][2] - The funding is aimed at supporting the company's liquidity and meeting the demand from OEM customers, with new programs expected to enter production soon [2] Financial Overview - The total additional funding from Orion Infrastructure Capital and existing noteholders amounts to US$27 million [2] - The company has not guaranteed the ability to receive the remaining US$10 million from the US$25 million facility [2] Company Background - Carbon Revolution plc is the parent company of Carbon Revolution Pty Ltd, which specializes in the advanced manufacture of carbon fiber wheels for the automotive industry [4] - The company has transitioned from producing single prototypes to manufacturing lightweight wheels for high-performance, premium, and luxury vehicles for prestigious automotive brands [4]