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].
Carbon Revolution Public pany(CREV) - 2023 Q4 - Annual Report