NOVONIX(NVX) - 2025 Q2 - Quarterly Report

Corporate Directory This section provides essential corporate identification details, including stock exchange listings, principal business location, and the company's auditor - NOVONIX Limited is listed on the Australian Securities Exchange ("ASX") and American Depositary Receipts ("ADR's") are listed on the Nasdaq Stock Market[3] - The principal place of business is 1029 West 19th Street, Chattanooga, Tennessee 37408, USA[3] - PricewaterhouseCoopers serves as the auditor for the company[3] Key Highlights & Company Overview This section summarizes NOVONIX's strategic achievements and financial performance for the first half of 2025, alongside an overview of its core business as a battery technology leader Key Highlights for H1 2025 In the first half of 2025, NOVONIX made significant progress in scaling operations, securing customers, advancing R&D, and strengthening its financial position - Received US$7.5 million in reimbursements on the MESC grant during Q2 2025, totaling US$27.1 million cumulatively through June 30, 2025[6] - Progressed installation and commissioning of equipment at Riverside for the initial 3,000 tpa capacity, supporting existing supply agreements with Panasonic, Stellantis, and PowerCo[6] - Received approval for the purchase of a 182-acre parcel of land for a planned second mass production plant ('Enterprise South') in Chattanooga, Tennessee[6] - Michael O'Kronley appointed Chief Executive Officer (effective May 19, 2025) and Ronald Edmonds appointed Independent Chair of the Board (effective July 1, 2025)[6] - Received preliminary rulings from the U.S. Department of Commerce placing up to 721% countervailing tariffs and 93.5% antidumping tariffs on imported Chinese graphite[6] - Completed installation of substantially all required mass production equipment for lead customer, Panasonic[6] - Supplied advanced samples of synthetic graphite material to 13 different customers and potential customers[6] - Continued to advance commercialization of patented all-dry, zero-waste cathode technology, sending first- and second-round samples to Tier-1 battery manufacturers[6] - Patent granted for 'Method for making low surface area alloy particulate with high silicon content for silicon alloy anode material'[6] Half-Year Results Summary For the six months ended June 30, 2025, NOVONIX reported a reduced net loss compared to the prior year, with relatively stable revenue from Battery Technology Solutions Half-Year Results Summary | Metric | H1 2025 (US$) | H1 2024 (US$) | Change (US$) | Change (%) | | :----------------------- | :------------ | :------------ | :----------- | :--------- | | Loss | (20,135,547) | (28,710,957) | 8,575,410 | 30% | | Cash and cash equivalents | 24,820,758 | 42,557,621 (Dec 31, 2024) | (17,736,863) | -41.7% | | Net assets | 143,827,572 | 137,590,257 (Dec 31, 2024) | 6,237,315 | 4.5% | | Revenue (Battery Technology Solutions) | 2,817,488 | 2,740,479 | 77,009 | 2.8% | - Net assets increased by $6.2 million, primarily due to continued investment in machinery and equipment at the Riverside facility[7] NOVONIX Overview NOVONIX Limited is a leading battery technology company focused on developing and scaling advanced materials and equipment for the lithium-ion battery supply chain - NOVONIX is a leading battery technology company developing and scaling advanced materials and equipment critical to the lithium-ion battery supply chain[8] - The company is commercializing U.S.-made synthetic graphite, a designated U.S. Critical Mineral, to support energy independence through domestic production[8] - The Riverside facility in Chattanooga, Tennessee, is set to become North America's first large-scale synthetic graphite manufacturing plant, with planned 20,000 tpa capacity fully allocated under long-term offtake agreements with Panasonic Energy, Stellantis, and PowerCo[9] - NOVONIX is advancing its Battery Technology Solutions business, including progress toward commercializing its patented all-dry, zero-waste cathode synthesis process, enhancing its vertically integrated platform[11] Operational Review This section details the operational performance and strategic developments across NOVONIX's key business segments: Anode Materials, Battery Technology Solutions, and Cathode Materials NOVONIX Anode Materials The Anode Materials segment is focused on establishing North America's first large-scale synthetic graphite production, driven by U.S. policy incentives and increasing demand for domestic supply - NOVONIX qualifies for the 45X production tax credit as a 100% domestic manufacturer with no ties to Prohibited Foreign Entities (PFE), incentivizing domestic production of synthetic graphite[16] - The Riverside facility is poised to become the first large-scale synthetic graphite production site in North America, with its 20,000 tpa capacity fully allocated through long-term offtake agreements with Panasonic Energy, Stellantis, and PowerCo[17] - The Company signed a definitive agreement to purchase a 182-acre site in the Enterprise South Industrial Park for a second large-scale synthetic graphite facility, expected to reach an initial production capacity of 31,500 tpa and create 450-500 full-time jobs[23][25] - NOVONIX expects to receive approximately US$54 million in net tax and other benefits from Chattanooga and Hamilton County over 15 years, contingent on meeting specific conditions[26] - Entered into an exclusive license agreement with Harper International Corporation for its continuous, induction-based graphitization furnace technology, expanding on a prior development agreement[27][29] - The U.S. Department of Commerce announced preliminary affirmative determinations to impose up to 721% countervailing duty (CVD) tariffs and 93.5% antidumping (AD) tariffs on synthetic and natural graphite anode material from China, resulting in an effective tariff rate of 160%[31][32] NOVONIX Battery Technology Solutions NOVONIX Battery Technology Solutions (BTS) serves as the company's R&D hub, driving proprietary technologies like the all-dry, zero-waste cathode synthesis process - BTS is the Company's hub for research, development, and testing across anode and cathode materials, cell prototyping, and precision battery testing hardware, maintaining an exclusive research partnership with Dr. Mark Obrovac[34][35] - NOVONIX's proprietary Ultra-High Precision Coulometry (UHPC) systems are widely used by 80% of top Chinese cell manufacturers and over 50% of global automotive OEMs for measuring battery degradation and performance[37] - A patent (US 12,257,632 B2) was granted to BTS for its low surface area silicon alloy materials for use as anode active materials in lithium-ion battery applications, developed through partnership with Dr. Mark Obrovac[39] Cathode Materials NOVONIX Cathode Materials continued to advance its patented all-dry, zero-waste cathode synthesis technology, sending samples to Tier-1 manufacturers - NOVONIX Cathode Materials continued advancing its patented all-dry, zero-waste cathode synthesis technology, sending first- and second-round samples to several Tier-1 battery manufacturers[42] - Completed the first year of joint development with CBMM to enhance nickel-based cathode materials using NOVONIX's dry-process technology, with the goal of improving performance and reducing costs[43] - Signed a Joint Collaboration Agreement with ICoNiChem in October 2024 to develop nickel-based cathode materials using recycled metals, supported by CAD $515,686 in funding from National Research Council of Canada and Innovate UK[44] Director's Report This report details the company's directors, principal activities, and a review of operations, including financial performance and any significant changes during the half-year Directors and Principal Activities The Director's Report lists the current board members and outlines the company's principal activities for the half-year, which included investments in anode material production scalability - The directors of NOVONIX Limited during the half-year included Ron Edmonds, Tony Bellas, Sharan Burrows, AC, Nick Liveris, Admiral Robert Natter, US Navy (Ret.), Jean Oelwang, and Suresh Vaidyanathan[51] - Principal activities included investing in scalability efforts for anode materials, entering customer offtake agreements, progressing cathode technology commercialization, and expanding cell assembly and testing capabilities[48] Review of Operations and Significant Changes The consolidated entity reported a net loss of $20.1 million for the half-year ended June 30, 2025, an improvement from the $28.7 million loss in the same period of 2024 Loss After Income Tax | Metric | H1 2025 (US$) | H1 2024 (US$) | Change (US$) | Change (%) | | :---------------- | :------------ | :------------ | :----------- | :--------- | | Loss after income tax | (20,135,547) | (28,710,957) | 8,575,410 | 30% | - There were no significant changes in the state of affairs of the consolidated entity during the financial half-year[50] Subsequent Events This section details significant events that occurred after the balance sheet date, primarily focusing on a major funding agreement Funding Agreement for Convertible Debentures Subsequent to the balance sheet date, NOVONIX entered into a multi-tranche funding agreement with Yorkville Advisors Global, LP for up to US$100 million in unsecured convertible debentures - On July 24, 2025, the Company agreed to issue up to US$100,000,000 of unsecured convertible debentures to YA II PN, Ltd, an affiliate of Yorkville Advisors Global, LP[53][161] - The funding agreement includes an upfront issue and drawdown of 24,500,000 Convertible Debentures for US$23,275,000[56][163] - Subject to shareholder approval, additional tranches of 35,500,000 and 40,000,000 Convertible Debentures can be issued, allowing for further drawdowns up to US$33,725,000 and US$38,000,000 respectively, potentially bringing total funding to US$95,000,000[56][58][163][167] Auditor's Information This section presents the independent auditor's review report and independence declaration, highlighting key findings and compliance with professional standards Auditor's Review Report Summary The independent auditor's review report highlights a material uncertainty regarding the Group's ability to continue as a going concern, as detailed in Note 1 to the financial statements - The auditor's review report highlights a material uncertainty that may cast significant doubt about the Group's ability to continue as a going concern, as described in Note 1 to the financial statements[60][179] Auditor's Independence Declaration PricewaterhouseCoopers, as the lead auditor, declared that there were no contraventions of auditor independence requirements or applicable codes of professional conduct - The lead auditor declared no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct in relation to the review[62][64] Financial Statements This section presents the consolidated financial statements, including the statement of profit or loss, balance sheet, changes in equity, and cash flows for the reporting period Consolidated Statement of Profit or Loss and Other Comprehensive Income For the half-year ended June 30, 2025, NOVONIX reported a net loss of US$20.1 million, a 30% improvement from the prior year Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | H1 2025 (US$) | H1 2024 (US$) | Change (US$) | Change (%) | | :-------------------------------------- | :------------ | :------------ | :----------- | :--------- | | Revenue | 2,817,488 | 2,740,479 | 77,009 | 2.8% | | Loss before income tax expense | (20,135,547) | (28,710,957) | 8,575,410 | 29.9% | | Loss for the year | (20,135,547) | (28,710,957) | 8,575,410 | 29.9% | | Total comprehensive loss for the year | (19,687,616) | (30,531,708) | 10,844,092 | 35.5% | | Basic earnings per share | (0.03) | (0.06) | 0.03 | 50.0% | | Diluted earnings per share | (0.03) | (0.06) | 0.03 | 50.0% | | Gain on fair value of derivative financial instruments | 4,207,340 | 421,365 | 3,785,975 | 898.5% | Consolidated Balance Sheet As of June 30, 2025, the Group's total assets increased to US$239.0 million, primarily driven by investments in property, plant, and equipment, while cash and cash equivalents decreased significantly Consolidated Balance Sheet Highlights | Metric | Jun 30, 2025 (US$) | Dec 31, 2024 (US$) | Change (US$) | Change (%) | | :-------------------------- | :------------ | :------------ | :----------- | :--------- | | Cash and cash equivalents | 24,820,758 | 42,557,621 | (17,736,863) | -41.7% | | Trade and other receivables | 18,892,032 | 8,158,174 | 10,733,858 | 131.6% | | Property, plant and equipment | 166,999,303 | 149,310,343 | 17,688,960 | 11.8% | | Total assets | 239,037,857 | 226,095,541 | 12,942,316 | 5.7% | | Total liabilities | 95,210,285 | 88,505,284 | 6,705,001 | 7.6% | | Net assets | 143,827,572 | 137,590,257 | 6,237,315 | 4.5% | | Total equity | 143,827,572 | 137,590,257 | 6,237,315 | 4.5% | - The Group reported net current liabilities of $3,838,792 as of June 30, 2025, compared to net current assets of $11,055,453 as of December 31, 2024[84] Consolidated Statement of Changes in Equity The Consolidated Statement of Changes in Equity shows an increase in total equity to US$143.8 million as of June 30, 2025, primarily driven by contributions of equity Consolidated Statement of Changes in Equity Highlights | Metric | Jan 1, 2025 (US$) | Jun 30, 2025 (US$) | Change (US$) | | :----------------------- | :---------------- | :---------------- | :----------- | | Contributed equity | 367,537,075 | 392,542,712 | 25,005,637 | | Accumulated losses | (259,669,980) | (279,805,527) | (20,135,547) | | Reserves | 29,723,162 | 31,090,387 | 1,367,225 | | Total equity | 137,590,257 | 143,827,572 | 6,237,315 | | Contributions of equity, net of transaction costs | - | 25,005,637 | 25,005,637 | | Share-based payments | - | 919,294 | 919,294 | Consolidated Statement of Cash Flows For the half-year ended June 30, 2025, NOVONIX experienced significant cash outflows from operating and investing activities, partially offset by inflows from financing activities Consolidated Statement of Cash Flows Highlights | Cash Flow Activity | H1 2025 (US$) | H1 2024 (US$) | Change (US$) | | :-------------------------------- | :------------ | :------------ | :----------- | | Net cash outflow from operating activities | (22,258,440) | (22,162,213) | (96,227) | | Net cash outflow from investing activities | (20,824,259) | (9,367,965) | (11,456,294) | | Net cash inflow from financing activities | 23,717,747 | (917,364) | 24,635,111 | | Net increase/(decrease) in cash and cash equivalents | (19,364,952) | (32,447,542) | 13,082,590 | | Cash and cash equivalents at end of year | 24,820,758 | 47,132,913 | (22,312,155) | - Payments for property, plant and equipment significantly increased to US$34.0 million in H1 2025 from US$9.5 million in H1 2024, reflecting continued investment in the Riverside facility[77] - Proceeds from issue of shares amounted to US$25.1 million in H1 2025, a substantial increase from no proceeds in H1 2024, contributing to the net cash inflow from financing activities[77] Notes to the Consolidated Financial Statements This section provides detailed explanations and disclosures supporting the consolidated financial statements, covering accounting policies, segment information, and specific asset and liability movements Note 1 Basis of preparation This note outlines the basis of preparing the condensed consolidated interim financial report, adhering to Australian Accounting Standard 134 and IFRS, and addresses going concern considerations - The Company incurred a net loss of $20,135,547 and net operating cash outflows of $22,258,440 for the half-year ended June 30, 2025[84] - As of June 30, 2025, the Company has a cash balance of $24,820,758 and net current liabilities of $3,838,792, indicating a material uncertainty about its ability to continue as a going concern[84] - Mitigating factors for going concern include the ability to raise funds from customers, governments, and investors (e.g., US$100 million convertible debentures from Yorkville, US$20.1 million equity raise, US$5.0 million investment from Phillips 66), successful growth of businesses, and the ability to meet cash flow forecasts[87] - The Company has received US$27.1 million in reimbursements from the US Department of Energy (DOE) MESC grant through June 30, 2025, with a remaining balance of US$57.7 million to be claimed[89] - NOVONIX was selected to receive a US$103 million 48C tax credit under the Qualifying Advanced Energy Project Allocation Program, with no funds claimed yet as the qualifying asset has not been placed in service[90] Note 2 Segment reporting NOVONIX operates through three segments: Battery Materials, Battery Technology, and Graphite Exploration, with Battery Materials incurring the largest net loss before tax - The Group's three operating segments are Battery Materials (developing and manufacturing battery anode materials), Battery Technology (developing battery cell testing equipment, consulting, R&D in battery development), and Graphite Exploration (exploration and evaluation of the Mt Dromedary natural graphite deposit)[100] Segment Net Loss Before Tax | Segment | H1 2025 (US$) | H1 2024 (US$) | | :------------------ | :------------ | :------------ | | Battery Materials | (16,175,153) | (16,766,906) | | Battery Technology | (2,674,520) | (4,216,400) | | Graphite Exploration | - | - | | Aggregated segment net loss before tax | (18,849,673) | (20,983,306) | Segment Assets | Segment | Jun 30, 2025 (US$) | Dec 31, 2024 (US$) | | :------------------ | :------------ | :------------ | | Battery Materials | 198,496,628 | 169,314,731 | | Battery Technology | 16,345,508 | 15,235,436 | | Graphite Exploration | 2,177,491 | 2,049,907 | | Unallocated | 22,018,230 | 39,495,467 | | Total | 239,037,857 | 226,095,541 | Segment Liabilities | Segment | Jun 30, 2025 (US$) | Dec 31, 2024 (US$) | | :------------------ | :------------ | :------------ | | Battery Materials | 25,774,442 | 44,383,959 | | Battery Technology | 9,008,525 | 8,085,044 | | Graphite Exploration | - | - | | Unallocated | 60,427,318 | 36,036,281 | | Total | 95,210,285 | 88,505,284 | Note 3 Current assets – Other assets This note details the escrow reserves, which are funds deposited with the Lender as additional collateral for the loan related to the Riverside facility Escrow Reserves | Metric | Jun 30, 2025 (US$) | Dec 31, 2024 (US$) | | :-------------- | :------------ | :------------ | | Escrow reserves | 2,124,898 | 1,452,187 | - Escrow reserves are funds deposited with the Lender for capital expenditure, insurance, and tax as additional collateral for the loan obtained for the Riverside facility[113] Note 4 Non-current assets – Property, plant and equipment The Group's property, plant, and equipment increased significantly to US$167.0 million, primarily due to substantial investments in construction work in progress at the Riverside facility Property, Plant and Equipment Carrying Amounts | Asset Category | Jun 30, 2025 (US$) | Dec 31, 2024 (US$) | | :-------------------------- | :------------ | :------------ | | Machinery and equipment | 17,698,526 | 18,833,358 | | Leasehold improvements | 185,404 | 227,954 | | Buildings | 41,786,443 | 42,014,149 | | Land | 2,307,485 | 2,272,297 | | Construction work in progress | 105,021,445 | 85,962,585 | | Total | 166,999,303 | 149,310,343 | Movement in Property, Plant and Equipment (H1 2025) | Category | Additions (US$) | Depreciation Charge (US$) | Exchange Differences (US$) | | :-------------------------- | :-------------- | :------------------------ | :----------------------- | | Land | - | - | 35,188 | | Buildings | - | (575,504) | 280,287 | | Leasehold improvements | - | (42,550) | - | | Machinery and equipment | - | (1,356,292) | 212,732 | | Construction work in progress | 19,124,465 | - | 10,634 | | Total | 19,124,465 | (1,974,346) | 538,841 | - Total capital commitments as of June 30, 2025, are $16,645,756, a decrease from $52,968,336 at December 31, 2024[118] Note 5 Non-current assets – Intangible assets Goodwill, allocated to the NOVONIX Anode Materials (NAM) CGU, remained at US$11.975 million, with no impairment identified after an annual test reflecting updated tariff rulings Goodwill Carrying Amount | Cash Generating Unit | Jun 30, 2025 (US$) | Dec 31, 2024 (US$) | | :------------------- | :------------ | :------------ | | NOVONIX Anode Materials | 11,975,024 | 11,975,024 | | Total carrying amount of goodwill | 11,975,024 | 11,975,024 | - The recoverable amount of the NAM CGU was determined using a 'Fair Value Less Costs to Sell' (FVLCS) approach, based on the current Riverside Project Plan, assuming commercial offtake will commence in 2026[122] - Key assumptions for FVLCS calculation include a post-tax discount rate of 11.5%, updated revenue sales prices of USD $10–$12/kg (from USD $7–$10/kg in 2024) due to U.S. DOC preliminary rulings on Chinese graphite tariffs, sales volume growth consistent with contractual agreements (up to 157,000 tonnes from 2026 to 2034), operating costs of USD $6–$8/kg, and a terminal growth rate of 2.5%[127][128] Note 6 Borrowings Total borrowings for NOVONIX increased slightly to US$65.1 million as of June 30, 2025, comprising both secured bank loans and unsecured convertible notes Total Borrowings | Category | Jun 30, 2025 (US$) | Dec 31, 2024 (US$) | | :------------------- | :------------ | :------------ | | Secured borrowings | 32,441,679 | 32,683,822 | | Unsecured borrowings | 32,609,332 | 31,760,259 | | Total borrowings | 65,051,011 | 64,444,081 | - Current borrowings amounted to US$32,608,786, while non-current borrowings were US$32,442,225 as of June 30, 2025[131] Note 7 Unsecured convertible loan notes and derivative financial instruments This note details the US$30 million convertible loan notes issued to LGES in June 2023, with a 4% coupon and June 2028 maturity, and the associated derivative financial liability - The Group issued 45,221,586 convertible loan notes with a face value of AUD$1.00 per note, a 4% coupon rate, and a maturity date of June 7, 2028, for proceeds of US$30 million to LGES[133] - The notes have a conversion price of AUD$1.60 per ordinary share and will mandatorily convert into ordinary shares upon acceptance of the first purchase order under the purchase agreement with LGES[133] Unsecured Convertible Loan Notes | Metric | Jun 30, 2025 (US$) | | :------------------- | :------------ | | Balance at Dec 31, 2024 | 30,360,575 | | Interest expense* | 893,258 | | Balance at Jun 30, 2025 | 31,253,833 | *Interest expense calculated at an effective interest rate of 6.56%. Derivative Financial Instruments | Metric | Jun 30, 2025 (US$) | | :-------------------------- | :------------ | | Balance at Dec 31, 2024 | 5,368,624 | | Fair value gain | (4,230,253) | | Effect of foreign currency movements | 291,169 | | Balance at Jun 30, 2025 | 1,429,540 | - The derivative financial liability is classified as a Level 3 fair value in the fair value hierarchy, as one or more significant inputs are not based on observable market data[139] Note 8 Contract liabilities Contract liabilities increased significantly to US$3.47 million, primarily due to a US$3.0 million grant from the State of Tennessee, conditional on job creation Contract Liabilities | Metric | Jun 30, 2025 (US$) | Dec 31, 2024 (US$) | | :------------------------ | :------------ | :------------ | | Current - Contract liabilities | 3,466,997 | 126,056 | | Non-current – Contract liabilities | - | 3,000,000 | | Total | 3,466,997 | 3,126,056 | - The Group received US$3,000,000 in grant funds from the Department of Economic and Community Development in the State of Tennessee, USA, conditional upon creating, filling, and maintaining 290 jobs by March 2026[141][142] - The full amount of the grant has been deferred and classed as a contract liability, as income has not been recognized due to inability to reliably measure compliance with conditions[143] Note 9 Contributed equity Contributed equity increased by US$25.0 million during the half-year, primarily driven by a share purchase plan and a placement to Phillips 66 Company Share Capital | Metric | Jun 30, 2025 (Shares) | Dec 31, 2024 (Shares) | Jun 30, 2025 (US$) | Dec 31, 2024 (US$) | | :---------- | :-------------------- | :-------------------- | :----------------- | :----------------- | | Ordinary shares | 636,199,259 | 567,941,993 | 392,542,712 | 367,537,075 | Ordinary Share Capital Movements (H1 2025) | Details | Number of Shares | US$ | | :-------------------------- | :--------------- | :---------- | | Balance at Jan 1, 2025 | 567,941,993 | 367,537,075 | | Exercise of options | 43,825 | 19,109 | | Exercise of performance rights | 922,047 | - | | Exercise of director share rights | 632,890 | - | | Share purchase plan shares | 53,887,112 | 20,086,938 | | Placement shares - Philips 66 | 12,771,392 | 5,000,000 | | Share issue costs | - | (100,410) | | Balance at Jun 30, 2025 | 636,199,259 | 392,542,712 | - The Group's capital management objectives are to safeguard its ability to continue as a going concern, provide returns for shareholders, and maintain an optimal capital structure, utilizing capital market issues to satisfy funding requirements[153][154][155] Note 10 Earnings per share Basic and diluted earnings per share for the half-year ended June 30, 2025, were (US$0.03), an improvement from (US$0.06) in the prior year Earnings Per Share | Metric | H1 2025 (US$) | H1 2024 (US$) | | :-------------------------------------------------------------------------------- | :------------ | :------------ | | Loss after income tax attributable to the owners of NOVONIX Limited | (20,135,547) | (28,710,957) | | Weighted average number of shares used in calculating basic and diluted net loss per share | 628,041,079 | 488,886,096 | | Basic earnings per share | (0.03) | (0.06) | | Diluted earnings per share | (0.03) | (0.06) | Note 11 Related party transactions During the half-year ended June 30, 2025, the Group did not enter into any material transactions with related parties - During the half-year ended June 30, 2025, the Group has not entered into any material transactions with related parties[160] Note 12 Events occurring after the balance sheet date This note reiterates the details of the funding agreement entered into with Yorkville Advisors Global, LP on July 24, 2025, for up to US$100 million in unsecured convertible debentures - On July 24, 2025, the Company agreed to issue up to US$100,000,000 of unsecured convertible debentures to YA II PN, Ltd, an affiliate of Yorkville Advisors Global, LP, under a multi-tranche funding agreement[161][162] - The funding includes an upfront drawdown of US$23,275,000 and potential additional tranches of up to US$33,725,000 and US$38,000,000, subject to shareholder approval, bringing total potential funding to US$95,000,000[163][167] Directors' Declaration The directors declared compliance with financial reporting standards and affirmed the Group's ability to meet its debts as they fall due - The directors declared that the attached financial statements comply with the Corporations Act 2001, AASB 134, and Corporations Regulations 2001, giving a true and fair view of the Group's financial position and performance[169] - They also believe there are reasonable grounds to conclude that the Group will be able to pay its debts as and when they become due and payable[169] Preparation of Interim Financial Statements for Users in Multiple Jurisdictions The interim financial statements are prepared to conform to the requirements for users in both Australia (Corporations Act 2001 and AASB 134) and the U.S. (IAS 34) - The interim financial statements are prepared to conform to the requirements for users in both Australia (Corporations Act 2001 and AASB 134) and the U.S. (IAS 34)[170][171][172] - For U.S. users, the information is labeled 'unaudited,' while for Australian users, a review by independent auditors has been performed to meet Australian standards[171][172] Independent Auditor's Review Report PricewaterhouseCoopers concluded that the half-year financial report complies with the Corporations Act 2001, while drawing attention to a material uncertainty regarding going concern - PricewaterhouseCoopers concluded that, based on their review, they have not become aware of any matter that makes them believe the half-year financial report does not comply with the Corporations Act 2001[174][175] - The auditor's report draws attention to Note 1, which describes a material uncertainty relating to the Group's ability to continue as a going concern, but states that their conclusion is not modified in respect of this matter[179] Appendix 4D This appendix provides key financial results for public announcement, including loss, earnings per share, net tangible assets, and dividend information Results for Announcement to the Market The Appendix 4D reports key financial results for public announcement, showing a 30% reduction in loss before tax and net loss for the period Results for Announcement to the Market | Metric | Jun 30, 2025 (US$) | Jun 30, 2024 (US$) | Change (US$) | Change (%) | | :------------------------------------ | :------------ | :------------ | :----------- | :--------- | | Revenue and other income from ordinary activities | 2,817,488 | 2,740,479 | 77,009 | 3% | | Loss before tax | (20,135,547) | (28,710,957) | 8,575,410 | 30% | | Loss from ordinary activities after tax | (20,135,547) | (28,710,957) | 8,575,410 | 30% | | Net loss for the period attributable to members | (20,135,547) | (28,710,957) | 8,575,410 | 30% | | Basic earnings per share | (0.03) | (0.06) | 0.03 | 50% | | Diluted earnings per share | (0.03) | (0.06) | 0.03 | 50% | Net Tangible Assets Net tangible asset backing per ordinary share decreased from US$0.30 in June 2024 to US$0.21 in June 2025 Net Tangible Assets | Metric | Jun 30, 2025 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | | Net tangible asset backing per ordinary share | 0.21 | 0.30 | Dividends No dividends were paid, recommended, or determined during the current or previous reporting period - There were no dividends paid, recommended, or determined during, or for, the current or previous reporting period[188] Controlled Entities and Interim Review The report confirms no changes in controlled entities or joint ventures and reiterates the independent auditor's review opinion regarding going concern - No control has been gained or lost over entities during the period, and there are no associates or joint ventures[191][192] - The independent audit review opinion includes a statement drawing attention to Note 1, which describes a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern, but the conclusion is not modified[193]