NOVONIX(US:NVX)2023-02-28 11:51Financial Performance - NOVONIX reported a 57% increase in revenues from contracts with customers for the twelve months ended June 30, 2022, compared to the previous year, driven by growth in the battery hardware division[24]. - Revenue from contracts with customers decreased by $219,954 to $2,702,276 for the six months ended December 31, 2022, compared to $2,922,230 for the same period in 2021, primarily due to a customer return in hardware sales in the BTS segment[74]. - Revenue from contracts with customers increased by $2,207,416 to $6,101,155 for the twelve months ended June 30, 2022, compared to $3,893,739 for the same period in 2021[86]. - Revenue from contracts with customers for the six months ended December 31, 2022, was $2,702,276, a decrease from $6,101,155 for the twelve months ended June 30, 2022[176]. - Total comprehensive loss for the six months ended December 31, 2022, was $30,309,552, compared to a loss of $69,611,995 for the twelve months ended June 30, 2022[176]. - The net loss for the six months ended December 31, 2022, was $27,864,014, an increase of $6,774,395 compared to a net loss of $21,089,619 for the same period in 2021[73]. - Total comprehensive loss for the year ended June 30, 2022, was $69,611,900, which included a net loss of $51,860,307[180]. Production and Capacity Expansion - The company plans to ramp up synthetic graphite production capacity to 10,000 tonnes per annum (tpa) in 2024, with further targets of 40,000 tpa by 2025 and 150,000 tpa by 2030[42]. - NOVONIX's new pilot production facility aims to produce up to 10 tonnes of cathode material per annum, leveraging proprietary dry cathode synthesis technology[25]. - The company has not generated any revenue from the sale of synthetic or natural graphite as of the date of the transition report[49][50]. - The company expects to incur operating and net losses until at least significant production of anode materials begins, which is not anticipated before 2023[126]. - The Group aims to reach a production capacity of 150,000 tonnes per year by 2030, requiring additional funding beyond the existing cash balance[189]. Financial Position and Cash Flow - The company has cash and cash equivalents of $99,039,172 as of December 31, 2022, which is expected to support the capacity expansion towards 10,000 tpa[42]. - Cash and cash equivalents as of December 31, 2022, were $99,039,172, down from $142,737,362 as of June 30, 2022[178]. - Total assets as of December 31, 2022, were $277,424,558, compared to $302,979,271 as of June 30, 2022[178]. - Total liabilities as of December 31, 2022, were $51,368,289, slightly decreased from $51,845,793 as of June 30, 2022[178]. - For the six months ended December 31, 2022, net cash used in operating activities was $18.9 million, an increase from $11.5 million in the same period in 2021, primarily due to a $4.4 million rise in payments to suppliers and employees[129]. - For the twelve months ended June 30, 2022, net cash used in operating activities was $29.2 million, with $37.9 million in payments to suppliers and employees, partially offset by $6.2 million in receipts from customers[131]. - The company plans to finance operations through existing liquidity, proceeds from the Phillips 66 Transaction, and future financing activities, including equity offerings and debt financings[127]. Expenses and Losses - Administrative and other expenses rose to $11,481,647 for the six months ended December 31, 2022, compared to $4,075,964 in the same period of 2021, reflecting an increase of $7,405,683[73]. - Research and development costs increased by $388,309 to $2,020,656 for the six months ended December 31, 2022, compared to $1,632,347 for the same period in 2021[73]. - Share-based compensation expenses decreased by $3,247,252 to $5,354,429 for the six months ended December 31, 2022, compared to $8,601,681 in the same period of 2021[73]. - Employee benefits expense increased by $8,388,042 to $12,736,589 for the twelve months ended June 30, 2022, compared to $4,348,547 for the same period in 2021[90]. - Total share-based compensation expense increased by $10,062,763 to $14,530,749 for the twelve months ended June 30, 2022, compared to $4,467,986 for the prior year[101]. - The company continues to incur operating losses since 2013, with significant expenses expected as it scales production of synthetic graphite products[39]. Grants and Funding - The company received a $150 million grant negotiation from the U.S. Department of Energy to expand domestic production of synthetic graphite anode materials[34]. - Government grants received during the six months ended December 31, 2022, were $434,379, compared to $3,982,807 for the twelve months ended June 30, 2022[181]. - The Group raised AUD$208 million in September 2021 and a combined AUD$131 million in March and May 2021 to support its capital needs[191]. - In November 2022, the Group entered negotiations with the US Department of Energy for up to US$150 million in grant funding, with ongoing discussions for a new greenfield production facility[192]. Legal and Regulatory Matters - The company is not currently involved in any material legal proceedings, which could affect its financial resources[161]. - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to take advantage of reduced disclosure requirements until it exceeds $1.235 billion in revenue[149]. - The company is classified as a "foreign private issuer" under U.S. securities laws, allowing it to take advantage of certain exemptions from disclosure obligations[150]. - The company has taken advantage of reduced reporting requirements as a foreign private issuer, which may result in different information compared to other public companies[152]. Accounting and Reporting - The consolidated financial statements are prepared in accordance with IFRS and present fairly the financial position of the company as of December 31, 2022[168]. - The company changed its presentation currency effective July 1, 2022, impacting its financial reporting[170]. - The Group's consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS)[185]. - The Group changed its fiscal year end from June 30 to December 31, effective December 31, 2022[202].