Heramba Electric (PITEF) Q4 2024 earnings summary

Executive summary

• Completed business combination between Heramba Electric plc and Project Energy Reimagined Acquisition Corp., resulting in Heramba Electric becoming a publicly traded company on Nasdaq as of July 26, 2024.

• Heramba Electric now operates through Kiepe Electric Group, a provider of electric mobility solutions for rail and bus sectors.

• The business combination included share issuances, warrant adjustments, and new financing arrangements.

Financial highlights

• Kiepe Electric Group revenue increased 27.6% to €152.8 million for the year ended December 31, 2023, compared to €119.8 million in 2022.

• Operating gain of €1.2 million in 2023, reversing a loss of €18.0 million in 2022.

• Net income for 2023 was €0.4 million, compared to a net loss of €20.1 million in 2022.

• Heramba GmbH reported a net loss of €3.1 million for 2023, with no revenue generated and expenses related to the business combination.

• Kiepe Electric Group cash and cash equivalents increased to €32.5 million at year-end 2023, up from €8.5 million in 2022.

Outlook and guidance

• Management highlights substantial doubt about the ability to continue as a going concern for both Heramba GmbH and Kiepe Electric Group due to liquidity constraints and the need for additional capital.

• Plans to raise additional equity or debt to support ongoing operations and meet purchase obligations.

• Kiepe Electric Group faces uncertainty regarding future access to bonding and funding after the termination of its profit and loss transfer agreement with its former parent.