CAP-XX Limited, a leading manufacturer of thin, flat supercapacitors and energy management systems, has reported its interim results for the half-year ended 31 December 2023. The company achieved a total revenue of approximately A$2.3 million, marking a 40% increase compared to the same period in the previous year. Notably, there was no license revenue recorded for the period, but product sales saw a significant 59% increase, reaching A$2.3 million.
The average product gross margin also showed improvement, increasing to 35.7% from 28.8% in the previous year. The sales order book at the end of December 2023 was 33% higher than at the beginning of the year, indicating a positive trend in sales. The company continues to expand its sales channels by adding new distributors.
However, the adjusted EBITDA* for the period resulted in a loss of A$1,077k, compared to a loss of A$966k in the previous year. Additionally, on 15 December 2023, certain CAP-XX patents were deemed invalid by the United States District Court for the District of Delaware, leading the company to lodge a motion to appeal the decision.
The company's cash reserves as of 31 December 2023 were A$0.3 million with no debt, and it also has an unused line of credit of approximately A$1.5 million. The Chairman and CEO of CAP-XX, Pat Elliott and Lars Stegmann, highlighted the company's resilience in the face of industry challenges and emphasized strategic initiatives, such as new salesforce integration and partnerships for graphene technologies, which position the company for sustained success.
The company's financial position has been impacted by legal costs, unexpected expenses related to the departure of the former CEO, and investment in new product developments, resulting in a negative adjusted EBITDA and a tight cash position. However, the board is actively managing the company's cash flows.
In conclusion, CAP-XX Limited's interim results reflect positive growth in product revenue, improvements in gross margin, and a focus on strategic initiatives to drive sustained success, despite facing industry challenges and legal setbacks.
*Adjusted EBITDA excludes patent infringement costs