NOVONIX posts $24.6M half-year loss, going-concern risk
NOVONIX Ltd (NVX) reported a larger half-year net loss as it continues to invest heavily in its Riverside synthetic graphite facility while still pre-revenue in its core battery materials business.
Rhea-AI Filing Summary
NOVONIX Ltd (NVX) reported a larger half-year net loss as it continues to invest heavily in its Riverside synthetic graphite facility while still pre-revenue in its core battery materials business. For the six months ended June 30, 2026, the Group recorded a net loss of $24.6 million (vs $20.1 million in 2025) and negative operating cash flow of $23.1 million, leaving cash of $59.5 million and net current liabilities of about $2.5 million.
The auditor highlighted a material uncertainty about going concern, pointing to ongoing losses, cash burn, the need for additional funding, and the risk of cash redemptions under the Yorkville convertible debentures if share-price conditions trigger Amortization Events. At June 30, 2026, $35 million of Yorkville debentures remained outstanding and $33.1 million under the LGES notes, both classified as current.
Strategically, NOVONIX delivered a C-sample synthetic graphite anode to Panasonic and reaffirmed planned mass production in the second half of 2027, subject to qualification. The company raised capital via an A$20.7 million institutional placement and an A$0.96 million share purchase plan, and completed the divestiture of its Battery Technology Solutions unit to focus on North American synthetic graphite. NOVONIX’s growth plan is underpinned by substantial U.S. government support, including a $100 million DOE grant, $103 million in Section 48C tax credits, and a conditional DOE loan commitment of up to $754.8 million, though these remain contingent on meeting program conditions and project milestones.
Positive
- $100 million DOE grant and $103 million 48C tax credit plus a conditional DOE loan commitment up to $754.8 million provide substantial potential non-dilutive and low-cost support for NOVONIX’s U.S. synthetic graphite expansion, underpinning its long-term growth plan.
- Delivery of a C-sample synthetic graphite anode to Panasonic and reaffirmed target for mass production in the second half of 2027 mark important commercialization milestones with a tier-one battery customer.
- Equity raises of A$20.7 million via institutional placement and A$0.96 million via a share purchase plan strengthened the balance sheet and helped fund Riverside build-out during the half-year and shortly thereafter.
Negative
- The auditor drew attention to a material uncertainty related to going concern, citing continuing losses, negative operating cash flows, current classification of major convertible debt, and the need for additional funding.
- Half-year net loss widened to $24.6 million from $20.1 million, with negative operating cash flow of $23.1 million and cash declining to $59.5 million, increasing financing risk before Riverside reaches commercial production.
- Outstanding $35.0 million of Yorkville convertible debentures carry an Amortization Event feature that can require recurring cash redemptions if share-price conditions are met, adding liquidity and refinancing risk.
Filing Explained
Yorkville conversion leaves 360,163,110 shares potentially issuable, while Panasonic qualification and future funding remain unresolved.
Form 6-K is an interim report for a foreign private issuer; this filing furnishes NOVONIX’s half-year report authorized on
If all outstanding convertible notes had converted at
NOVONIX had
The filing identifies a specific Yorkville cash-redemption trigger: the share price below the
Key Figures
Key Terms
going concern financial
Section 301 regulatory
Section 232 regulatory
Advanced Manufacturing Production Tax Credit financial
Amortization Event financial
Fair Value Less Costs of Disposal financial
Earnings Snapshot
FAQ
How did NOVONIX (NVX) perform financially in the half-year ended June 30, 2026?
What is the auditor’s going concern assessment for NOVONIX (NVX)?
What is NOVONIX’s cash and debt position as of June 30, 2026?
What strategic milestones did NOVONIX (NVX) achieve with Panasonic?
What government support does NOVONIX (NVX) have for its U.S. projects?
How did NOVONIX (NVX) strengthen its capital base during the period?
What happened to NOVONIX’s Battery Technology Solutions business?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the month of September, 2026
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(Commission File Number) |
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(Translation of registrant’s name into English)
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20‑F or Form 40‑F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
EXHIBIT INDEX
Exhibit No. |
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Description |
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Exhibit 99.1 |
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ASX Announcement (Half Year Report and Appendix 4D) dated August 31, 2026 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
NOVONIX LIMITED
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By: |
/s/ Ron Edmonds |
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Ron Edmonds |
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Chief Financial Officer |
Date: September 1, 2026
Corporate Directory
Directors |
R Edmonds CPA, BBA (Acct) A Bellas B. Econ, DipEd, MBA, FAICD, FCPA, FGS M O'Kronley, BSME, MSEM S Burrow AC, BA, DipEd, D.Litt (Honorary) Admiral R J Natter, US Navy (Ret.) J Oelwang, BS (Hons) S Vaidyanathan, MTech (Chem Eng.), MBA |
Secretary |
S M Yeates CA, B.Bus |
Registered office in Australia |
McCullough Robertson Level 11, Central Plaza Two, 66 Eagle Street, Brisbane QLD 4000 |
Principal place of business |
1029 West 19th Street; Chattanooga, Tennessee 37408; USA |
Share register |
MUFG Corporate Markets (AU) Limited Level 21, 10 Eagle Street, Brisbane QLD 4000 www.mpms.mufg.com |
Auditor |
PricewaterhouseCoopers Level 23, 480 Queen Street, Brisbane QLD 4000 www.pwc.com.au |
Solicitors |
Allens Linklaters Level 26, 480 Queen Street, Brisbane QLD 4000 |
Bankers |
J.P. Morgan Chase |
Stock exchange listing |
NOVONIX Limited shares are listed on the Australian Securities Exchange ("ASX") and American Depositary Receipts (ADR's") are listed on the Nasdaq Stock Market. |
Website address |
www.novonixgroup.com |
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
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Key Highlights
For the six months ended June 30, 2026
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Half-Year Continuing Operations Results
During the six months ended June 30, 2026, NOVONIX incurred a loss of $24.6 million compared to a $20.1 million loss in the same period in 2025. Cash and cash equivalents was $59.5 million as of June 30, 2026, compared to $79.9 million as of December 31, 2025. Net assets over the six-month period ended June 30, 2026, decreased $4.3 million to $157.3 million, principally due to the continued investment in machinery and equipment at Riverside.
NOVONIX Overview
NOVONIX Limited (ASX: NVX; Nasdaq: NVX) is a leading battery materials company focused on developing and commercializing high-performance synthetic graphite anode active material for the lithium-ion battery industry. Headquartered in Chattanooga, Tennessee, the Company is building a North American manufacturing platform designed to strengthen the domestic battery supply chain, reduce dependence on foreign sources, and support U.S. energy and national security objectives.
Graphite is an essential component of every lithium-ion battery, yet the global supply of battery-grade graphite remains heavily concentrated in China and with Chinese-controlled companies. NOVONIX is addressing this strategic vulnerability by scaling the production of U.S.-made synthetic graphite using domestically sourced feedstocks and proprietary technologies. The Company’s production processes are designed to deliver the performance, quality, consistency, and scale required by major battery manufacturers while providing a more energy-efficient and environmentally responsible alternative to conventional production methods.
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
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NOVONIX’s Riverside facility in Chattanooga is expected to become the first large-scale synthetic graphite production site in North America. Its planned 20,000 tonnes-per-annum capacity is supported by offtake agreements with Panasonic Energy and PowerCo, demonstrating strong customer demand for a secure, domestically produced source of graphite anode active material. To align its capital, management attention, and operational resources with these objectives, NOVONIX has streamlined its portfolio around its core synthetic graphite business. In the second quarter of 2026, the Company completed the divestiture of its Battery Technology Solutions division, reducing the ongoing funding requirements associated with the business and allowing NOVONIX to increase its focus on customer qualification, production readiness, and commercial manufacturing. This followed the September 2025 sale of the Company’s Mount Dromedary mining rights in Northern Queensland, further reinforcing its strategic emphasis on North American synthetic graphite production.
NOVONIX’s growth strategy has received substantial support from the U.S. Government, reflecting the strategic importance of establishing a secure domestic supply of battery-grade graphite. This support includes a $100 million Department of Energy grant for the expansion of Riverside, $103 million in Section 48C investment tax credits that were recently certified, and a conditional commitment from the Department of Energy’s Loan Programs Office for up to $754.8 million to support the development of a second facility. Together, these programs provide critical support for NOVONIX’s transition from technology development and customer qualification to large-scale commercial production.
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
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U.S. Market for Synthetic Graphite Anode Active Material
We see a strong and expanding opportunity for the North American synthetic graphite anode active materials market, supported by sustained growth in lithium-ion battery demand across electric vehicles and stationary energy storage. Synthetic graphite continues to represent approximately 83% of anode materials for all battery chemistries globally, reflecting its dominant position as the anode material of choice.
The scale of the opportunity is reinforced by the current geographic concentration of global anode production. China and Chinese-controlled companies are forecasted to account for approximately 99.1% of global anode capacity in 2026, demonstrating the significant potential for the development of new, qualified supply in North America.1 As battery manufacturing expands across North America, customers are placing greater value on regional supply, procurement flexibility and a more diversified anode material ecosystem.
Battery demand is also becoming broader and more durable. North American demand for synthetic graphite AAM is expected to grow approximately 46% YoY by the end of 2026 to 145,000 tonnes, while investment in stationary energy storage continues to accelerate among utilities, renewable-energy developers and data-center operators.2 The growth of alternative long-duration storage technologies further validates the increasing commercial importance of energy storage across a wide range of applications.
North America has substantial room for growth in the global market share. The region’s share of global anode capacity is forecast to increase from near zero in 2026 to approximately 4% by 2035, while China is expected to retain a ~90% share.2 These forecasts point to a meaningful expansion of North American production while also illustrating the scale of the remaining opportunity.
Growth in electric vehicles, lithium-ion energy storage and regional battery manufacturing is creating sustained demand for qualified anode materials. As North America builds a larger battery supply chain, the need for reliable, commercial-scale synthetic graphite production is expected to become increasingly important, creating a significant long-term opportunity for the region.
1. Benchmark Mineral Intelligence, Synthetic Graphite Supply, Demand and Price Forecast, Q1 2026.
2. Benchmark Mineral Intelligence, Anode Market Assessment, July 20, 2026.
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
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NOVONIX Positioning in the North American Synthetic Graphite Market
As the market grows, customer qualification, repeatable product performance and commercial-scale manufacturing will be the differentiator for North American suppliers. NOVONIX is positioned at the forefront of this effort. NOVONIX’s delivery of a mass-production qualification sample, or C-sample, to Panasonic Energy represented a critical qualification milestone. The Company believes it is the first known synthetic graphite AAM C-sample produced in North America, demonstrating NOVONIX’s progress toward meeting leading battery manufacturers’ specifications at commercial scale. This achievement, together with the continued development of Riverside and advancement of customer qualification programs, reinforces NOVONIX’s position as a leading participant in the development of a domestic graphite AAM industry.
The Panasonic qualification milestone strengthened NOVONIX’s commercial position and provided the strategic backdrop for the Institutional Placement and Share Purchase Plan completed during the first half. The strong market response to the announcement reflected investor recognition of both the scale of the opportunity for domestically produced synthetic graphite and NOVONIX’s differentiated position as it advances toward large-scale production in North America.
While the qualification milestone and capital raise represent important steps toward commercialization, building a sustainable domestic graphite industry will require more than technical performance to ensure continued customer demand and access to capital. NOVONIX has demonstrated its ability to produce synthetic graphite AAM in North America to the specifications required by a major battery manufacturer, but U.S. producers must still compete with imported materials whose prices may be influenced by significant foreign government support and other non-market factors. Policies that address this structural price imbalance will therefore be critical to providing investors and customers with confidence that domestic production can compete on a fair, predictable, and durable basis.
The Company continues to engage constructively with the U.S. Government regarding measures to strengthen domestic critical mineral processing and reduce reliance on foreign battery-material supply chains. Over the past year, multiple U.S. Government agencies have undertaken reviews and initiatives addressing market distortions affecting the domestic graphite AAM industry. These efforts, alongside broader consideration of tariffs, price floors, procurement preferences, domestic-content requirements, and other trade-policy tools, reflect growing recognition that establishing a U.S. graphite AAM industry is both an economic and national-security priority.
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
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While the timing and outcome of these processes remain uncertain, effective market and trade measures could play a critical role in enabling continued investment in U.S. production capacity. NOVONIX will continue to evaluate and pursue available legal and policy options that support the development of a commercially competitive and resilient domestic graphite AAM supply chain.
U.S. Government Policy Environment
Continued Focus on Building a Domestic Graphite Supply Chain
The U.S. Government continues to recognize that establishing a U.S. graphite AAM industry is an important national security objective and that additional trade and market measures may be required to support investment in U.S. production capacity. These policies and actions are occurring alongside broader discussions regarding the use of tariffs, price floors, procurement preferences, domestic content requirements, and other trade policy tools to encourage investment in U.S. processing capacity. The Administration has also indicated that future trade negotiations may be used to reinforce secure and resilient critical mineral supply chains with trusted partners.
Ongoing Trade and National Security Reviews
Section 301 Investigations
The Office of the United States Trade Representative ("USTR") has completed its investigation under Section 301 of the U.S. Trade Act of 1974 (“Section 301”) relating to forced labor and has imposed 10%-12.5% tariffs on most goods, including synthetic graphite, imported from the 59 countries (including China and Indonesia) and the European Union targeted in the investigation.
USTR is currently conducting another investigation under Section 301 structural excess manufacturing capacity and production in strategically important sectors. The excess capacity investigation is targeting 16 countries and the European Union. This investigation is evaluating whether additional trade measures, including tariffs on imports from the target countries, are warranted to address market distortions that may adversely affect U.S. manufacturers, including producers of battery materials.
Section 232 Investigations
Separately, the U.S. Department of Commerce (“Commerce”) has completed its investigation pursuant to Section 232 of the U.S. Trade Expansion Act of 1962, into imports of processed critical minerals and their derivative products. Commerce concluded that such imports are entering the United States in quantities and under circumstances that threaten to impair U.S. national security, and the President concurred with that determination. In response, on January 14, 2026, the President issued a Proclamation
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
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(the “232 Proclamation”) directing the Secretary of Commerce and the U.S. Trade Representative to negotiate agreements with trading partners to address these national security concerns. The 232 Proclamation specifically contemplates the negotiation of measures such as price floors for trade in processed critical minerals.
Under the President's 232 Proclamation, the Secretary of Commerce and the U.S. Trade Representative were required to provide the President with an update on the status of negotiations with trading partners within 180 days, which was July 13, 2026. No public announcement has been made regarding that report. The 232 Proclamation provides that, if satisfactory agreements are not reached or prove ineffective, the Administration may implement additional import adjustment measures, including tariffs, minimum import prices, or other remedies available under Section 232.
Section 842 Requirements
Section 842 of the U.S. National Defense Authorization Act for Fiscal Year 2026 (NDAA) establishes phased sourcing requirements for advanced batteries procured by the U.S. Department of War. Beginning with new acquisition programs in 2028, the Department generally may procure only advanced batteries and battery cells whose functional cell components and technology are not owned, sourced, refined, or produced by a foreign entity of concern ("FEOC”). The statute provides a limited exception where final assembly occurs outside an FEOC, more than 95% of the cost of the functional cell components is attributable to non-FEOC sources, and the battery is produced without FEOC-licensed technology. The requirements expand to standard batteries in 2029 and existing acquisition programs in 2031.
The Company and others in the U.S. battery materials industry have been working closely with Department of Defense personnel on implementing regulations to ensure that the interests of the U.S. domestic graphite AAM industry are properly addressed.
Treasury Implementation of Section 45X
The U.S. Department of the Treasury (“Treasury”) continues to develop regulations and administrative guidance relating to the U.S. Internal Revenue Code Section 45X Advanced Manufacturing Production Tax Credit (“45X Tax Credit”).
The 45X Tax Credit provides, among other things, a production tax credit to manufacturers of battery cells equal to $35 per kilowatt-hour of battery cell capacity for qualifying battery cells manufactured in the United States and sold to an unrelated party. To be eligible for the credit, qualifying battery cells must satisfy increasing requirements limiting material assistance from prohibited foreign entities. These requirements are measured by reference to the proportion of direct material and production costs attributable to non-prohibited foreign entity sources. For battery cells sold in 2027, the required amount
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
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is 65%, increasing each year to a maximum of 85% in 2030 and thereafter. Under current law, the credit is scheduled to be reduced by 25% in 2030, by 50% in 2031 and by 75% in 2032 before expiring for battery cells after 2032.
Industry participants, including the Company, have encouraged Treasury to improve the effectiveness of the credit for domestic graphite AAM production. Suggestions include revisions to the applicable material cost ratio ("MACR") tables and related methodologies, clarification of the definitions of "Prohibited Foreign Entity" ("PFE") and related ownership and control concepts, clarifications regarding eligibility of previously acquired or contracted material, and measures to reduce opportunities for circumvention of the statutory intent.
Industry participants have also advocated for the establishment of product-specific Harmonized Tariff Schedule ("HTS") classifications for graphite anode active material to improve transparency, support more effective trade enforcement, and facilitate the administration of U.S. incentive programs.
U.S. International Trade Commission
Five individuals have been confirmed by the Senate as new Commissioners of the U.S. International Trade Commission ("ITC"). These appointments have substantially changed the composition of the Commission.
The Company's prior antidumping and countervailing duty ("AD/CVD") petition against China was ultimately unsuccessful following a split decision (2-1) by the ITC on the question of material retardation. The two Commissioners who voted against the petition have been replaced with the new Commissioners. With its full complement of six Commissioners, only three affirmative votes are required for the Commission to reach a positive determination for U.S. industry.
Potential Future Trade Actions
The Company continues to evaluate all available legal and policy options to support the development of a competitive domestic graphite AAM industry. Subject to market conditions and the evolution of the relevant factual record, the Company intends to consider filing a new AD/CVD petition at an appropriate time.
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
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Director’s Report
For the Half-Year Ended June 30, 2026
Your directors present their report on NOVONIX Limited (referred to hereafter as the ‘consolidated entity’ or the Company) for the half-year ended June 30, 2026.
Directors
The following persons were directors of NOVONIX Limited during the whole of the half-year and up to the date of this report, unless otherwise stated:
Principal Activities
During the six-month period, the principal activities of the Company included investment in scalability initiatives to increase production capacity of anode materials, and engagement with potential customers to advance commercial discussions and product qualification activities for anode materials.
Review Of Operations
The loss for the consolidated entity for continuing operations after providing for income tax amounted to $23,582,909 (June 30, 2025: $17,461,027).
The loss for the discontinued operations after providing for income tax amounted to $1,051,104.
Information on the operations and financial position of the Company and its business strategies and prospects are set out in the review of operations and activities on pages 3-10 of this interim report.
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Significant Changes in the State of Affairs
Significant changes in the state of affairs of the group during the half year period were as follows.
Share capital increased by A$20.7 million as a result of a placement to institutional and sophisticated investors. Details of changes in share capital are disclosed in note 9 to the financial statements.
On April 30, 2026 the Group completed a share equity sale of its wholly-owned subsidiary, NOVONIX Battery Technology Solutions Inc. ("BTS"), including all associated assets and liabilities at a transaction price of $1. As part of the transaction the cash balance for BTS at closing had to be $2 million, subject to customary completion adjustments. NOVONIX retained a 15% equity stake in Dryve Battery Materials Inc.'s Cathode business.
Subsequent Events Occurring after the Balance Sheet Date
Share Purchase Plan
Since June 30, 2026, the Company has completed a Share Purchase Plan raising A$962,600 (before costs) resulting in the issue of 6,016,250 ordinary shares.
Interim CFO
Effective July 1, 2026, Ron Edmonds transitioned from his role as Chairman to Interim Chief Financial Officer, pending the appointment of a permanent Chief Financial Officer. Robert Natter was appointed Chairman effective from the same date.
No other matters or circumstances have arisen since June 30, 2026, that have significantly affected, or may significantly affect, the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years.
Auditor’s Review Report
The attached half-year financial report for the period ended June 30, 2026, contains an independent auditor’s review report which highlights the existence of a material uncertainty that may cast significant doubt about the Group’s ability to continue as a going concern. For further information, refer to Note 1 to the financial statements, together with the auditor’s review report.
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on the following page.
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This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.
R Natter
Chairman
August 31, 2026
Brisbane
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NOVONIX LIMITED
ABN 54 157 690 830
HALF-YEAR FINANCIAL REPORT
FOR THE PERIOD ENDED
Contents
NOVONIX LIMITED
ABN 54 157 690 830
Half-year financial report
Consolidated Statement of Profit or Loss and Other Comprehensive Income |
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Consolidated Balance Sheet |
18 |
Consolidated Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Consolidated Financial Statements |
21 |
Directors’ Declaration |
44 |
Preparation of Interim Financial Statements for Users in Multiple Jurisdictions |
45 |
Independent Auditor’s Review Report |
46 |
Appendix 4D |
48 |
General information
The financial statements are consolidated financial statements for the Group consisting of NOVONIX Limited and its subsidiaries.
All amounts are presented in US dollars unless denoted otherwise.
NOVONIX Limited is a Group limited by shares, incorporated and domiciled in Australia.
All press releases, financial reports and other information are available at our website:
www.novonixgroup.com.
Registered office |
Principal place of business |
c/- McCullough Robertson |
1029 West 19th Street |
Central Plaza Two |
Chattanooga, TN 37408, USA |
Level 11, 66 Eagle Street |
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A description of the nature of the Group's operations and its principal activities are included in the directors' report, which is not part of the financial statements.
The financial statements were authorized for issue, in accordance with a resolution by directors, on August 31, 2026.
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Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the Half-Year Ended June 30, 2026
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Loss from discontinued operation, net of tax |
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Loss for the year |
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Reclassification adjustment on disposal of foreign operation |
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Earnings per share for loss from continuing operations attributable to the ordinary equity holders of the Company: |
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The above consolidated statement of profit and loss and other comprehensive income should be |
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Consolidated Balance Sheet as at June 30, 2026
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Dec 31, 2025 |
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$ |
|
||
Trade and other receivables |
|
|
|
|
|
|
|
|
||
Inventory |
|
|
|
|
|
|
|
|
||
Prepayments |
|
|
|
|
|
|
|
|
||
Escrow reserves |
|
4 |
|
|
|
|
|
|
||
Total current assets |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
Non-current assets |
|
|
|
|
|
|
|
|
||
Property, plant and equipment |
|
5 |
|
|
|
|
|
|
||
Right-of-use assets |
|
|
|
|
|
|
|
|
||
Intangible assets |
|
6 |
|
|
|
|
|
|
||
Other assets |
|
|
|
|
|
|
|
|
||
Total non-current assets |
|
|
|
|
|
|
|
|
||
Total assets |
|
|
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
|
|
||
LIABILITIES |
|
|
|
|
|
|
|
|
||
Current liabilities |
|
|
|
|
|
|
|
|
||
Trade and other payables |
|
|
|
$ |
|
|
$ |
|
||
Contract liabilities |
|
|
|
|
- |
|
|
|
|
|
Lease liabilities |
|
|
|
|
|
|
|
|
||
Derivative financial instruments |
|
8 |
|
|
|
|
|
|
||
Borrowings |
|
7 |
|
|
|
|
|
|
||
Current tax liabilities |
|
|
|
|
|
|
|
|
||
Total current liabilities |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
Non-current liabilities |
|
|
|
|
|
|
|
|
||
Lease liabilities |
|
|
|
|
|
|
|
|
||
Borrowings |
|
7 |
|
|
|
|
|
|
||
Total non-current liabilities |
|
|
|
|
|
|
|
|
||
Total liabilities |
|
|
|
|
|
|
|
|
||
Net assets |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
EQUITY |
|
|
|
|
|
|
|
|
||
Contributed equity |
|
9 |
|
|
|
|
|
|
||
Reserves |
|
|
|
|
|
|
|
|
||
Accumulated losses |
|
|
|
|
( |
) |
|
|
( |
) |
Total equity |
|
|
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
|
|
||
The above consolidated balance sheet should be read in conjunction with the accompanying notes. |
|
|||||||||
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
18
|
|
Consolidated Statement of Changes in Equity for the Half-Year Ended June 30, 2026
|
|
|
|
|
|
|
|
Reserves |
|
|
|
|
||||||||||||
Consolidated Group |
|
Contributed |
|
|
Accumulated |
|
|
Share based |
|
|
Foreign currency |
|
|
Convertible loan |
|
|
Total |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at January 1, 2025 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||
Loss for the year |
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
Other comprehensive loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
|
||
Total comprehensive loss |
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
|
|
|
- |
|
|
|
( |
) |
|
Transactions with owners in their capacity as owners: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Contributions of equity, net of transaction costs |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
||
Share-based payments |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
||
Balance at Jun 30, 2025 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at January 1, 2026 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||
Loss for the year |
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
Other comprehensive loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
Total comprehensive loss |
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
Transactions with owners in their capacity as owners: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Contributions of equity, net of transaction costs |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
||
Share-based payments |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
||
Balance at Jun 30, 2026 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. |
|
|||||||||||||||||||||||
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
19
|
|
Consolidated Statement of Cash Flows
for the Half-Year Ended June 30, 2026
|
|
|
|
Consolidated |
|
|||||
|
|
|
|
Jun 30, 2026 |
|
|
Jun 30, 2025 |
|
||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
||
Receipts from customers (inclusive of consumption tax) |
|
|
|
$ |
|
|
$ |
|
||
Payments to suppliers and employees (inclusive of |
|
|
|
|
( |
) |
|
|
( |
) |
Interest received |
|
|
|
|
|
|
|
|
||
Payment of borrowing costs |
|
|
|
|
( |
) |
|
|
( |
) |
Government grants received |
|
|
|
|
|
|
|
|
||
Net cash outflow from operating activities |
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
||
Payments for exploration assets |
|
|
|
|
- |
|
|
|
( |
) |
Cash and cash equivalents disposed of |
|
|
|
|
( |
) |
|
|
- |
|
Payments for escrow funds |
|
|
|
|
|
|
|
( |
) |
|
Payments for security deposits |
|
|
|
|
( |
) |
|
|
( |
) |
Government grants received |
|
|
|
|
- |
|
|
|
|
|
Payments for property, plant and equipment |
|
|
|
|
( |
) |
|
|
( |
) |
Net cash outflow from investing activities |
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
||
Proceeds from issue of shares |
|
|
|
|
|
|
|
|
||
Payment of share issue expenses |
|
|
|
|
( |
) |
|
|
( |
) |
Payment of withholding tax – Performance Rights |
|
|
|
|
( |
) |
|
|
( |
) |
Principal elements of lease repayments |
|
|
|
|
( |
) |
|
|
( |
) |
Repayment of borrowings |
|
|
|
|
( |
) |
|
|
( |
) |
Net cash inflow from financing activities |
|
|
|
|
|
|
|
|
||
Net increase/(decrease) in cash and cash equivalents |
|
|
|
|
( |
) |
|
|
( |
) |
Effects of foreign currency |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents at the beginning of the year |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents at the end of the year |
|
|
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
|
|
||
The above consolidated statement of cash flows should be read in conjunction with the |
|
|||||||||
accompanying notes. |
|
|||||||||
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
20
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 1 Basis of Preparation
This condensed consolidated interim financial report for the half-year reporting period ended June 30, 2026, has been prepared in accordance with Australian Accounting Standard 134 Interim Financial Report the Corporations Act 2001. These financial statements also comply with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), as applicable to interim financial reporting.
This condensed consolidated interim financial report does not include all the notes normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the Annual Report for the period ended December 31, 2025, and any public announcements made by the Group during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
The financial report has been prepared on a going concern basis, which contemplates continuity of normal business activities and the realization of assets and settlement of liabilities in the normal course of business.
The Company incurred a net loss of $
The net loss and cash outflows incurred during the period principally relate to the Company continuing to build-out the Riverside facility in Chattanooga, Tennessee, with mass production expected to start in 2027 for our lead customer, Panasonic. This will involve significant capital expenditure to scale operations in line with customer offtake agreements, as well as current and future customer demand. The funding of these expansionary activities will require additional funding
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
21
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 1 Basis of Preparation (continued)
beyond the existing cash balance as of June 30, 2026, and forecasted customer inflows, during the construction phase for the Riverside facility.
As detailed in Note 8,Unsecured convertible loan notes and derivative financial instruments, during 2025, the Company agreed to terms with YA II PN, Ltd, an affiliate of Yorkville Advisors Global, LP ("Yorkville") where debentures may be released in tranches only if certain conditions are satisfied. The tranches mature
The ability of the Company to continue as a going concern is principally dependent upon one or more of the following:
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
22
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 1 Basis of Preparation (continued)
These conditions give rise to a material uncertainty which may cast significant doubt over the Company’s ability to continue as a going concern. Should the Company be unable to continue as a going concern, it may be unable to realize its assets and discharge its liabilities in the normal course of business, and at amounts stated in the financial report.
The directors believe that the going concern basis of preparation is appropriate as the Company has a strong history of being able to raise capital from debt and equity sources, including through the issue of:
This financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts or classification of liabilities and appropriate disclosures that may be necessary should the Company be unable to continue as a going concern.
The Company is continuing to actively engage with strategic partners, customers and investors to source additional funding to support the Company’s growth and fund the planned expansionary activities.
The Company intends to continue to claim balances against the $
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
23
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 1 Basis of Preparation (continued)
In addition, in April 2024, the Company was selected by the Qualifying Advanced Energy Project Allocation Program (the “48C program”) to receive a $
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of available-for-sale financial assets, financial assets and liabilities at fair value through profit or loss, certain classes of property, plant and equipment and derivative financial instruments.
There were no new, revised or amended standards adopted by the Group issued by the International Accounting Standards Board that are mandatory for the current reporting period.
Certain new accounting standards, amendments and interpretations have been issued that are not mandatory for the current reporting period and have not been early adopted by the Group.
AASB 18 Presentation and Disclosure in Financial Statements is effective for annual reporting periods beginning on or after July 1, 2027. AASB 18 replaces AASB 101 and introduces new requirements for the presentation and disclosure of information in the financial statements, including new categories and subtotals in the statement of profit or loss and enhanced disclosures regarding management-defined performance measures. The standard is not expected to affect the recognition or measurement of the Group's assets, liabilities, income or expenses, although it will affect the presentation and disclosure of financial information.
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
24
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 1 Basis of Preparation (continued)
Amendments to AASB 9 Financial Instruments and AASB 7 Financial Instruments: Disclosures – Classification and Measurement of Financial Instruments are effective for annual reporting periods beginning on or after July 1, 2026. The Group is assessing the impact of these amendments and, based on the assessment performed to date, does not expect their adoption to have a material impact on the Group's financial statements.
The Group does not expect any other standards or amendments issued but not yet effective to have a material impact on its financial statements.
e)
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements were set out in the Annual Report for the period ended December 31, 2025. Except as noted in Note 6, no changes in critical accounting estimates were made during the six-month period ended June 30, 2026.
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
25
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 2 Discontinued Operations - Sale of BTS Business Segment
During the half-year ended June 30, 2026, NOVONIX Limited completed the disposal of NOVONIX Battery Technology Solutions, Inc. (“BTS”). The disposal of the BTS division reflects NOVONIX’s disciplined strategy of building a vertically integrated synthetic graphite supply chain in North America and, accordingly, the results of BTS have been classified as discontinued operations in accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations.
The key deal terms of the sale were as follows:
The results of the discontinued operations for the half-year are set out below:
|
|
Half-year |
|
|
Half-year |
|
||
|
|
|
|
|
|
|
||
Revenue |
|
$ |
|
|
$ |
|
||
Expenses |
|
|
( |
) |
|
|
( |
) |
(Loss)/profit before income tax |
|
|
( |
) |
|
|
|
|
Income tax expense/(benefit) |
|
|
|
|
|
|
||
(Loss)/profit after income tax from discontinued operations before disposal |
|
|
( |
) |
|
|
|
|
Profit on disposal of discontinued operations |
|
|
|
|
|
|
||
Income tax benefit attributable to disposal |
|
|
|
|
|
|
||
(Loss)/profit from discontinued operations, net of tax |
|
$ |
( |
) |
|
$ |
|
|
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
26
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 2 Discontinued Operations- Sale of BTS Business Segment (continued)
Disposal of NOVONIX Battery Technology Solutions, Inc.
The disposal of BTS was completed on April 30, 2026 for consideration of $
|
|
|
|
April 30, 2026 |
|
|
|
|
|
|
|
|
|
Cash consideration received/receivable |
|
|
|
$ |
|
|
Less: net assets disposed |
|
|
|
|
( |
) |
Less/add: FCTR recycled |
|
|
|
|
|
|
Gain on disposal before income tax |
|
|
|
|
|
|
Income tax benefit |
|
|
|
|
|
|
Gain on disposal after income tax |
|
|
|
$ |
|
|
The net cash flows attributable to the discontinued operations were as follows:
|
|
Half-year |
|
|
Half-year |
|
||
|
|
|
|
|
|
|
||
Net cash flows from operating activities |
|
$ |
( |
) |
|
$ |
( |
) |
Net cash flows from investing activities |
|
|
( |
) |
|
|
( |
) |
Net cash flows from financing activities |
|
|
( |
) |
|
|
( |
) |
Net increase/(decrease) in cash from discontinued operations |
|
$ |
( |
) |
|
$ |
( |
) |
The comparative Consolidated Statement of Profit or Loss and Other Comprehensive Income has been re-presented to classify the results of BTS as discontinued operations.
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
27
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 3 Segment Reporting
The Group has identified its operating segments based on the internal reports that are reviewed and used by the Executive Key Management Personnel (Chief Operating Decision Makers or “CODMs”) in assessing performance and determining the allocation of resources. The Group is managed primarily on an operational basis. Operating segments are determined on the basis of financial information reported to the Board.
The CODMs have identified two operating segments: 1) Battery Materials, and 2) Battery Technology. The Battery Materials segment develops and manufactures battery anode materials, and the Battery Technology segment develops battery cell testing equipment, performs consulting services and carries out research and development in battery development (inclusive of cathode technology).
During the half-year, the Group completed the disposal of its Battery Technology Solutions (“BTS”) business. Accordingly, the BTS operating segment ceased to form part of the Group from the date of disposal. The results of the BTS segment up to the date of disposal are included in the segment information below and are presented as discontinued operations in the consolidated statement of profit or loss and other comprehensive income.
Basis of accounting for purposes of reporting by operating segments
Unless stated otherwise, all amounts reported to the CODMs, are determined in accordance with accounting policies that are consistent with those adopted in the annual financial statements of the Group.
Where an asset is used across multiple segments, the asset is allocated to the segment that receives the majority of the economic value from the asset. In most instances, segment assets are clearly identifiable on the basis of their nature and physical location.
Liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and the operations of the segment.
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
28
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 3 Segment Reporting (continued)
The following items for revenue, expenses, assets, and liabilities are not allocated to operating segments as they are not considered part of the core operations of any segment:
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
29
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 3 Segment Reporting (continued)
Half-year ended June 30, 2026 |
|
Battery |
|
|
Battery |
|
||
|
|
|
|
|
|
|
||
Segment revenue |
|
$ |
- |
|
|
$ |
|
|
Other income |
|
|
|
|
|
|
||
Total income |
|
|
|
|
|
|
||
Product manufacturing and operating costs |
|
|
- |
|
|
|
( |
) |
Administrative and other expenses |
|
|
( |
) |
|
|
( |
) |
Depreciation and amortization expenses |
|
|
( |
) |
|
|
( |
) |
Research and development costs |
|
|
( |
) |
|
|
( |
) |
Gain on disposal of subsidiary |
|
|
- |
|
|
|
|
|
Employee benefits expense |
|
|
( |
) |
|
|
( |
) |
Borrowing costs |
|
|
( |
) |
|
|
( |
) |
Segment net loss before tax |
|
$ |
( |
) |
|
$ |
( |
) |
Aggregated segment net loss before tax |
|
$ |
( |
) |
|
|
|
|
Other income |
|
|
|
|
|
|
||
Other expenses |
|
|
( |
) |
|
|
|
|
Administrative and other expenses |
|
|
( |
) |
|
|
|
|
Employee benefits expense |
|
|
( |
) |
|
|
|
|
Share based compensation |
|
|
( |
) |
|
|
|
|
Borrowing costs |
|
|
( |
) |
|
|
|
|
Loss on extinguishment of convertible notes |
|
|
( |
) |
|
|
|
|
(Loss)/gain on fair value of derivative financial instruments |
|
|
|
|
|
|
||
Net loss before tax |
|
$ |
( |
) |
|
|
|
|
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
30
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 3 Segment Reporting (continued)
Half-year ended June 30, 2025 |
|
Battery |
|
|
Battery |
|
||
|
|
|
|
|
|
|
||
Segment revenue |
|
$ |
- |
|
|
$ |
|
|
Other income |
|
|
|
|
|
|
||
Total income |
|
|
|
|
|
|
||
Product manufacturing and operating costs |
|
|
- |
|
|
|
( |
) |
Administrative and other expenses |
|
|
( |
) |
|
|
( |
) |
Depreciation and amortization expenses |
|
|
( |
) |
|
|
( |
) |
Research and development costs |
|
|
( |
) |
|
|
( |
) |
Employee benefits expense |
|
|
( |
) |
|
|
( |
) |
Borrowing costs |
|
|
( |
) |
|
|
( |
) |
Segment net loss before tax |
|
$ |
( |
) |
|
$ |
( |
) |
Aggregated segment net loss before tax |
|
$ |
( |
) |
|
|
|
|
Interest income |
|
|
|
|
|
|
||
Other income |
|
|
- |
|
|
|
|
|
Other expenses |
|
|
|
|
|
|
||
Administrative and other expenses |
|
|
( |
) |
|
|
|
|
Employee benefits expense |
|
|
( |
) |
|
|
|
|
Share based compensation |
|
|
( |
) |
|
|
|
|
Borrowing costs |
|
|
( |
) |
|
|
|
|
(Loss)/gain on fair value of derivative financial instruments |
|
|
|
|
|
|
||
Net loss before tax |
|
$ |
( |
) |
|
|
|
|
Segment assets |
|
|
|
|
|
|
|
|
||||
|
Battery |
|
Battery |
|
Unallocated |
|
Total |
|
||||
Jun 30, 2026 |
|
|
|
- |
|
|
|
$ |
|
|||
Dec 31, 2025 |
|
|
|
|
|
|
$ |
|
||||
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
31
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 3 Segment Reporting (continued)
Segment liabilities |
|
|
|
|
|
|
|
|
||||
|
Battery |
|
Battery |
|
Unallocated |
|
Total |
|
||||
Jun 30, 2026 |
|
|
|
- |
|
|
|
$ |
|
|||
Dec 31, 2025 |
|
|
|
|
|
|
$ |
|
||||
Geographical Segments
All segment activities for Battery Materials and Battery Technology are conducted in North America.
Note 4 Current Assets – Other Assets
|
|
Consolidated |
|
|||||
|
|
|
|
|
|
|
||
|
|
Jun 30, 2026 |
|
|
Dec 31, 2025 |
|
||
|
|
|
|
|
|
|
||
Escrow reserves |
|
$ |
|
|
$ |
|
||
The reserves are funds deposited with the Lender for capital expenditure, insurance, and tax as additional collateral for the loan obtained in relation to the purchase of the Riverside facility in Chattanooga, Tennessee. The reserves will be released when the loan conditions are satisfied, which is expected to be within 12 months from the balance sheet date.
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
32
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 5 Non-current Assets – Property, Plant and Equipment
|
|
Consolidated |
|
|||||
|
|
|
|
|
|
|
||
|
|
Jun 30, 2026 |
|
|
Dec 31, 2025 |
|
||
|
|
|
|
|
|
|
||
Machinery and equipment - at cost |
|
$ |
|
|
$ |
|
||
Machinery and equipment - accumulated depreciation |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Leasehold improvements - at cost |
|
|
|
|
|
|
||
Leasehold improvements - accumulated depreciation |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Buildings - at cost |
|
|
|
|
|
|
||
Buildings - accumulated depreciation |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Land - at cost |
|
|
|
|
|
|
||
Construction work in progress - at cost |
|
|
|
|
|
|
||
Balance |
|
$ |
|
|
$ |
|
||
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
33
|
|
Notes to the Consolidated Financial Statements for the Half-Year Ended June 30, 2026
Note 5 Non-current Assets – Property, Plant and Equipment (continued)
|
|
Land |
|
|
Buildings |
|
|
Leasehold |
|
|
Machinery and |
|
|
Construction |
|
|
Total |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Half-year ended June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Opening net book amount |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Additions |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Disposals |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Assets of subsidiary disposed |
|
|
( |
) |
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Depreciation charge |
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
Exchange differences |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
||||
Closing net book amount |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
During the half-year ended June 30, 2026, the Group continued investing to meet its planned production capacity at its Riverside facility through the purchase of additional furnace systems and other production equipment.
Capital Commitments
Total commitments in respect of capital expenditure as of June 30, 2026, are $
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
34
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 6 Non-current Assets – Intangible Assets
|
|
Consolidated |
|
|||||
|
|
|
|
|
|
|
||
|
|
Jun 30, 2026 |
|
|
Dec 31, 2025 |
|
||
The carrying amount of goodwill allocated to the cash generating unit |
|
|
|
|
|
|
||
NOVONIX Anode Materials |
|
|
|
|
|
|
||
Total carrying amount of goodwill |
|
$ |
|
|
$ |
|
||
Intangible assets, other than goodwill, have finite useful lives. The current amortization charges for intangible assets are included under depreciation and amortization expense in the statement of profit or loss and other comprehensive (loss) income. Goodwill has an indefinite useful life.
The Company performs its annual impairment testing of goodwill for the NAM GCU on June 30 each year. For the purposes of impairment testing, the cash generating unit has been defined as the business to which the goodwill relates where individual cash flows can be ascertained for the purposes of discounting future cash flows.
For the 2026 annual impairment test, the recoverable amount of the Cash-Generating Unit (“CGU”) was determined using a ‘Fair Value Less Costs of Disposal’ (“FVLCD”) approach, based on the current Riverside Project Plan, which assumes commercial offtake will commence in late 2027. As disclosed in Note 1: Going Concern, the commencement of commercial offtake is dependent on the Company achieving qualification status for Panasonic and other future offtake customers.
The FVLCD calculation involves significant estimates and assumptions, including projected volumes, growth rates, and gross margins, which are used to estimate future cash flows. This valuation is classified as Level 3 in the fair value hierarchy due to the use of unobservable inputs.
The present value of expected cash flows was determined by applying a discount rate that reflects the risks specific to the CGU.
The recoverable amount of the NOVONIX Anode Materials CGU (“NAM CGU”) was deemed to be in excess of the carrying value of the NAM CGU, and therefore
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
35
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 6 Non-current Assets – Intangible Assets (continued)
Key assumptions used in the FVLCD calculation include:
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
36
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 6 Non-current Assets – Intangible Assets (continued)
Aside from the updates to revenue sales price expectations, the extended production ramp-up timeline, the revised furnace carbon component replacement assumption, and the increase in the post-tax discount rate used in the WACC calculation, the other key assumptions disclosed above are generally consistent with the prior year.
Management acknowledges that the estimates and assumptions used in these calculations are subject to change.
The recoverable amount of the NAM GCU would equal its carrying amount if the key assumptions were to change as follows:
Sensitivity |
|
June 30, 2026 |
||
|
|
|
|
|
|
|
From |
|
To |
|
|
|
|
|
Post tax discount rate (%) |
|
|
||
Average gross margin (%) |
|
|
||
Average operating costs ($/kg) |
|
$ |
|
$ |
Furnace component replacements (#/yr) |
|
|
||
Terminal growth rate (%) |
|
|
||
In addition to the above sensitivities, the Company’s FVLCD calculation is predicated on the basis the Company is able to successfully produce qualifying products for existing and prospective customers. If the Company is unable to successfully produce qualifying products, then an impairment of the carrying amount of the NAM CGU may result.
The recoverable amount of the NAM CGU is estimated to exceed the carrying amount of the CGU at June 30, 2026 by $
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
37
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 7 Borrowings
|
|
|
|
|
|
|
||||||||||||||||||
|
|
Jun 30, 2026 |
Dec 31, 2025 |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Current |
|
|
Non- |
|
|
Total |
|
|
Current |
|
|
Non- |
|
|
Total |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Secured |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Bank loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total secured borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unsecured |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Convertible Notes |
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
||||
Other loans |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total unsecured borrowings |
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
During the year ended December 31, 2025, a subsidiary of the Company that is the primary holder of the PNC Loan was not compliant with the debt service coverage ratio due to the allocation of rent and related expenses from a related subsidiary of the Company that is also consolidated.
While the subsidiary has not yet received written confirmation from the lender confirming compliance, based on the latest financial data and the resulting calculations and ratios, management believes the subsidiary is in compliance with the previously breached debt service ratio and all other applicable loan covenants as of the half-year ended June 30, 2026.
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
38
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 8 Unsecured Convertible Loan Notes and Derivative Financial Instruments
Yorkville Convertible Debentures
On July 24, 2025, the Company entered into a funding agreement with YA II PN, Ltd, an affiliate of Yorkville Advisors Global, LP (“Yorkville”), under which the Company issued $
The convertible debentures are unsecured obligations of the Company and were issued at a price equal to
The debentures mature
The funding agreement provided for the issuance of the debentures in multiple tranches, with drawdowns subject to certain conditions precedent, including market capitalization, liquidity thresholds and the absence of a material adverse change. At June 30, 2026, the convertible debentures have been fully drawn down, and $
If all outstanding convertible notes were converted at June 30, 2026,
The Company may, at its discretion, redeem the debentures in cash at any time up to three months prior to the applicable maturity date at a price equal to
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
39
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 8 Unsecured Convertible Loan Notes and Derivative Financial Instruments (continued)
Under the terms of the Funding Agreement, an Amortization Event occurs where the market price of the Company’s ordinary shares is below the Floor Price on five of seven consecutive trading days. Upon the occurrence of an Amortization Event, the Company may be required to redeem in cash
The fair value of the conversion option (derivative financial liability) was determined using Monte Carlo Simulation methodology. The key assumptions include:
The derivative financial liability is carried at fair value at each reporting date, with gains or losses being recognized in the consolidated statement of profit or loss and other comprehensive income. The remainder of the proceeds were allocated to borrowings with the liability recognized at amortized cost until extinguished on conversion or maturity of the notes.
LGES Convertible Debentures
On June 21, 2023, the Group issued
The convertible notes may be redeemed or converted (at the election of LGES) on the maturity date, in which case interest is payable in cash (in respect of a redemption) or "in-kind" (in the case of conversion).
As the Company does not have the right to defer settlement of the liability, it has appropriately classified its convertible notes and associated derivative financial instruments as current, in accordance with the amendments to IAS 1.
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
40
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 8 Unsecured Convertible Loan Notes and Derivative Financial Instruments (continued)
The convertible notes are presented in the consolidated balance sheet as follows:
Borrowings (current liabilities) |
|
LGES |
|
|
Yorkville |
|
|
TOTAL |
|
|||
|
|
2026 |
|
|
2026 |
|
|
2026 |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Balance at Dec 31, 2025 |
|
$ |
|
|
$ |
|
|
$ |
|
|||
Conversions |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
Accretion of costs of issue of convertible note |
|
|
|
|
|
|
|
|
|
|||
Interest expense* |
|
|
|
|
|
|
|
|
|
|||
Balance at Jun 30, 2026 |
|
$ |
|
|
$ |
|
|
$ |
|
|||
* Interest expense on the LGES convertible notes, for the year ended December 31, 2025, is calculated by applying the effective interest rate of
Derivative financial instruments (current liabilities) |
|
LGES |
|
|
Yorkville |
|
|
TOTAL |
|
|||
|
|
2026 |
|
|
2026 |
|
|
2026 |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Balance at Dec 31, 2025 |
|
$ |
|
|
$ |
|
|
$ |
|
|||
Fair value gain |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Loss on extinguishment of convertible notes |
|
|
|
|
|
|
|
|
|
|||
Conversions |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
Effect of foreign currency movements |
|
|
( |
) |
|
|
|
|
|
|
||
Balance at Jun 30, 2026 |
|
$ |
|
|
$ |
|
|
$ |
|
|||
The fair value of the conversion option (derivative financial liability) was determined using the Monte Carlo Simulation methodology. The derivative financial liability is carried at fair value at each reporting date, with gains or losses being recognized in the consolidated statement of profit or loss and other comprehensive income. The remainder of the proceeds were allocated to borrowings with the liability recognized at amortized cost until extinguished on conversion or maturity of the notes. Interest is applied using the effective interest rate.
Fair Value Hierarchy
The derivative financial liability is classified as a Level 3 fair value in the fair value hierarchy as one or more of the significant inputs is not based on observable market data.
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
41
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 9 Contributed Equity
|
|
|
Jun 30, 2026 |
|
|
Dec 31, 2025 |
|
|
Jun 30, 2026 |
|
|
Dec 31, 2025 |
|
||||
|
|
|
Shares |
|
|
Shares |
|
|
$ |
|
|
$ |
|
||||
a) |
Share capital |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Ordinary shares |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Fully paid |
|
|
|
|
|
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
b) |
Ordinary share capital |
|
|
|
|
|
|
|
|||||||||
|
Date |
|
Details |
|
|
|
|
Note |
Number of |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Jan 1, 2026 |
|
Balance |
|
|
|
|
|
$ |
|
|||||||
|
|
|
Vesting of performance rights |
|
(c) |
|
|
|
|
- |
|
||||||
|
|
|
Conversion of convertible debentures |
|
(d) |
|
|
|
|
|
|||||||
|
|
|
Vesting of director share rights |
|
(e) |
|
|
|
|
- |
|
||||||
|
|
|
Placement shares |
|
(f) |
|
|
|
|
|
|||||||
|
|
|
Share issue costs |
|
|
|
- |
|
|
|
( |
) |
|||||
|
Jun 30, 2026 |
|
Balance |
|
|
|
|
|
$ |
|
|||||||
During the half-year ended June 30, 2026,
During the half-year ended June 30, 2026,
During the half-year ended June 30, 2026,
On June 22, 2026, the Company completed a placement of
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
|
42
|
|
Notes to the Consolidated Financial Statements
for the Half-Year Ended June 30, 2026
Note 10 Earnings Per Share
|
|
Jun 30, 2026 |
|
|
Jun 30, 2025 |
|
||
Earnings per share for loss from continuing operations |
|
|
|
|
|
|
||
Loss after income tax attributable to the owners of |
|
$ |
( |
) |
|
$ |
( |
) |
|
|
|
|
|
|
|
||
|
|
Shares |
|
|
Shares |
|
||
Weighted average number of shares used in calculating |
|
|
|
|
|
|
||
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Basic earnings per share |
|
$ |
( |
) |
|
$ |
( |
) |
Diluted earnings per share |
|
$ |
( |
) |
|
$ |
( |
) |
Note 11 Related Party Transactions
During the half-year ended June 30, 2026, the Group has not entered into any material transactions with related parties.
Note 12 Events Occurring After the Balance Sheet Date
Share Purchase Plan
Since June 30, 2026, the Company has completed a Share Purchase Plan raising A$
Interim CFO
Effective July 1, 2026, Ron Edmonds transitioned from his role as Chairman to Interim Chief Financial Officer, pending the appointment of a permanent Chief Financial Officer. Robert Natter was appointed Chairman effective from the same date.
No other matters or circumstances have arisen since June 30, 2026, that have significantly affected, or may significantly affect, the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years.
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
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Director’s Declaration
In the directors' opinion:
Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act 2001.
On behalf of the directors
R Natter
Chairman
August 31, 2026
Brisbane
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
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Preparation of Interim Financial Statements for Users in Multiple Jurisdictions
The Group has prepared the interim financial statements to conform to the requirements and needs of users of the financial statements located in both Australia and the U.S.
For U.S users, the Group has prepared the interim financial statements to conform to the requirements of IAS 34 Interim Financial Reporting. Consistent with U.S. domestic registrants, the Group has labelled the interim financial information “unaudited” because the interim financial information is not subject to an audit by our independent registered public accounting firm. The auditor’s independence declaration and independent auditor’s review report are included within this filing to meet the requirements of Australian laws and regulations and are furnished, not filed, for the purposes of incorporation of the related financial statements in any U.S. registration document.
For Australian users, the Group has prepared the interim financial statements to conform to the requirements of the Corporations Act 2001 and AASB 134 Interim Financial Reporting. A review of the interim financial information has been performed by the Group’s independent auditors to meet the requirements of the Australian Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity and users should refer to the auditor’s independence declaration and independent auditor’s review report included within this filing.
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
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NOVONIX LIMITED
ABN 54 157 690 830
APPENDIX 4D
Half-year ended June 30, 2026
Results for Announcement to the Market
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Jun 30, 2026 |
|
|
Jun 30, 2025 |
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|
Change |
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|
Change |
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||||
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Revenue from ordinary activities |
|
|
- |
|
|
|
- |
|
|
$ |
- |
|
|
|
0 |
% |
Loss from ordinary activities |
|
|
(23,582,909 |
) |
|
|
(17,461,027 |
) |
|
$ |
(6,121,882 |
) |
|
|
(35 |
)% |
Net loss for the period |
|
|
(24,634,013 |
) |
|
|
(20,135,547 |
) |
|
$ |
(4,498,466 |
) |
|
|
(22 |
)% |
|
|
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|
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|
|
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||||
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|
2026 |
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|
2025 |
|
||||
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|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings per share |
|
|
|
|
|
|
|
$ |
(0.03 |
) |
|
$ |
(0.03 |
) |
||
Diluted earnings per share |
|
|
|
|
|
|
|
$ |
(0.03 |
) |
|
$ |
(0.03 |
) |
||
The results of the Battery Technology Solutions business have been classified as discontinued operations. Accordingly, the results from ordinary activities above relate to continuing operations, with comparative amounts re-presented on a consistent basis.
Explanation of Results
An explanation of the key financial elements contributing to revenue and the result for the half-year can be found in the review of operations included within the Directors’ Report.
Net Tangible Assets
|
|
|
|
|
|
|
||
|
|
Jun 30, 2026 |
|
|
Jun 30, 2025 |
|
||
|
|
|
|
|
|
|
||
Net tangible asset backing per ordinary share1 |
|
$ |
0.15 |
|
|
$ |
0.21 |
|
Dividends
There were no dividends paid, recommended, or determined during, or for, the current or previous reporting period.
1029 West 19th Street; Chattanooga, TN 37408; USA | novonixgroup.com
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Controlled Entities
No control has been gained over entities during the period.
The Group disposed of its Battery Technology Solutions business during the half-year. Accordingly, the results of the BTS business have been presented as discontinued operations, and the comparative information has been re-presented on a consistent basis. Refer to Note 2 to the half-year financial statements for further information.
Associated and Joint Ventures
There are no associates or joint ventures.
Interim Review
The interim financial statements have been reviewed by the Group’s independent auditor. The financial statements are not subject to a qualified independent review opinion. The independent audit review opinion includes the following statement:
We draw attention to Note 1 in the half-year financial report, which describes the directors’ assessment of the ability of the Group to continue as a going concern. The events or conditions as stated in Note 1 indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our conclusion is not modified in respect of this matter.
1 Net tangible assets is calculated as net assets less intangible assets
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