Kalina Power Limited reported a net loss of AUD 4.67 million for FY25 with no revenue generated, while pursuing strategic asset sales and capital raising amid going concern uncertainties.
- Net loss of AUD 4.67 million for FY25 with zero revenue
- Cash reserves of AUD 1.52 million but current liabilities exceed assets by AUD 833,243
- Strategic transfer of 180 MW capacity in Alberta with non-refundable deposit received
- Active sale process for multiple Canadian project sites underway
- Engagement of investment banks to raise development funding pre-final investment decision
Financial Performance and Position
Kalina Power Limited has released its preliminary final report for the financial year ended 30 June 2025, revealing a net loss of AUD 4.67 million, a deterioration from the AUD 4.08 million loss recorded in the prior year. Notably, the company reported no revenue from ordinary activities during the period, underscoring ongoing challenges in commercialising its power and technology development assets.
The company’s cash reserves improved to approximately AUD 1.52 million, up from AUD 255,000 a year earlier. However, current liabilities exceed current assets by AUD 833,243, reflecting a tightening liquidity position. Net tangible asset backing per share remained negative at 0.12 cents, slightly worse than the previous year’s 0.11 cents.
Strategic Initiatives to Address Funding and Development
Despite the financial headwinds, Kalina Power is actively pursuing several strategic initiatives aimed at strengthening its balance sheet and advancing its project portfolio. A key development is the transfer agreement executed by its wholly owned subsidiary, Kalina Distributed Power (KDP), involving 180 MW of capacity assigned by the Alberta Electricity System Operator (AESO). The company has received a non-refundable deposit of C$1 million from the third party involved, with potential for additional funds contingent on contract execution by mid-September.
In parallel, Kalina has engaged Calgary-based TwelveSix to market and sell one or more of KDP’s project sites, Clairmont, Gilby, and Saddle Hills Energy Parks. These sites are distinct from those under a framework agreement with Crusoe for AI data centre development. The sales process has attracted multiple interested parties, and successful transactions are expected to provide vital cash inflows to support further project development.
Capital Raising Efforts and Going Concern Considerations
To bridge the funding gap ahead of final investment decisions, KDP has retained Canadian and US investment banks on a success-fee basis to raise pre-FID development capital. Several strategic and financial investors are currently conducting due diligence on the portfolio, reflecting cautious optimism about the company’s prospects.
The company also holds 122.8 million options exercisable at $0.01, which could provide additional working capital if exercised. However, the directors acknowledge material uncertainty regarding the company’s ability to continue as a going concern, hinging on the successful completion of these funding and asset sale initiatives.
Outlook and Market Context
Kalina Power operates across Australia, Canada, and the USA, focusing on power and technology development. The company’s FY25 results highlight the ongoing challenges of commercialising innovative energy projects amid capital constraints. The upcoming months will be critical as the company seeks to convert its strategic initiatives into tangible financial support and project advancement.
Bottom Line?
Kalina Power’s next chapter hinges on converting asset sales and funding efforts into sustainable operations amid persistent losses.
Questions in the middle?
- Will the transfer of 180 MW capacity in Alberta close successfully and trigger further payments?
- Can Kalina secure sufficient capital through asset sales and investment bank-led funding to reach final investment decisions?
- How will the potential exercise of outstanding options impact the company’s liquidity and shareholder dilution?