Turbogen (TURB) H1 2024 earnings summary

Executive summary

• The company is in early-stage R&D, focused on multi-fuel microturbine development for local electricity and heat generation in buildings, and has not yet generated commercial revenues.

• Significant doubts exist regarding its ability to continue as a going concern, with ongoing negative cash flow and dependence on external funding.

• The company has implemented cost-reduction measures and continues to seek various financing sources, including convertible loans and grants.

Financial highlights

• As of June 30, 2024: cash and cash equivalents were ₪1.07M, down from ₪4.12M a year earlier.

• Net loss for H1 2024 was ₪10.89M, compared to ₪18.86M for H1 2023.

• Adjusted EBITDA loss for H1 2024 was ₪4.72M, compared to ₪12.27M for H1 2023.

• Equity deficit increased to ₪24.0M as of June 30, 2024.

• Operating cash outflow for H1 2024 was ₪3.25M.

Outlook and guidance

• The company expects continued negative cash flow due to ongoing R&D and marketing efforts and will require further fundraising to support operations.

• Success depends on achieving development milestones and securing additional capital.