Janus Faces Funding and Operational Risks Despite $8.8M Capital Raise

A Year of Transformation and Turbulence

Janus Electric Holdings Limited, formerly ReNu Energy Limited, has reported a challenging financial year ending 30 June 2025, marked by a significant 94% increase in net loss to $8.7 million. This deterioration was driven primarily by a 43% drop in revenue to $1.7 million, largely attributed to a battery recall that disrupted customer vehicle usage and delayed conversions in the first half of the year.

The company’s strategic pivot to electrify heavy road transport through patented battery-swap technology was crystallised by the completion of a reverse takeover (RTO) of Janus Electric Pty Ltd in May 2025. This move not only redefined Janus’s business model but also led to a rebranding and relisting on the ASX under the new ticker code JNS, signaling a fresh start focused on sustainable heavy vehicle electrification.

Capital Raises and Operational Setbacks

Alongside the RTO, Janus successfully raised $8.8 million under a prospectus to fund inventory build-up, manufacturing of battery packs and charging stations, R&D, and working capital. Despite this capital injection, the company experienced substantial one-off costs related to the acquisition and capital raising activities, including non-cash interest expenses and fair value losses on convertible notes, which contributed heavily to the loss.

Operationally, the battery recall completed in January 2025 caused a slow ramp-up in revenue, with conversions totaling $697,395 and battery hire and energy consumption revenues also contributing to a modest recovery in the second half of the year. Supply chain constraints delayed innovative assembly improvements, increasing contractor and staff costs to $3.47 million.

Strategic Partnerships and Market Expansion

Post-year-end, Janus signed a Memorandum of Understanding with Singapore-based EVUNI Pte Ltd for exclusive distribution and deployment of its technology in Africa. This agreement includes a potential $5 million investment structured in tranches, contingent on binding agreements and delivery milestones. This partnership represents a critical step in Janus’s growth strategy, aiming to tap into emerging markets with significant electrification potential.

Janus’s business model, which combines truck conversions, battery hire, and energy-as-a-service, is validated by a growing pipeline of 122 truck conversions awaiting build slots and operational metrics such as 480,000 kilometres of commercial operation and over 2,900 battery swaps completed. The company’s vision to decarbonise heavy transport aligns with global sustainability trends, positioning it well for future growth.

Financial Position and Going Concern Considerations

Despite the operational progress, Janus faces financial headwinds, with net operating cash outflows of $6.58 million and net current liabilities exceeding current assets by $403,644 at year-end. Cash reserves stood at $4.05 million, underscoring the need for additional funding to sustain growth. Management remains confident in the going concern status, supported by the EVUNI investment, potential R&D funding, and ongoing discussions for a share funding facility.

The company has also divested its hydrogen business and legacy geothermal assets, focusing resources on its core electrification technology. Board changes and a new auditor appointment reflect the company’s restructuring efforts to support its ambitious growth plans.

Looking Ahead

Janus Electric’s FY2025 results reveal a company in transition, grappling with the costs and operational challenges of scaling a pioneering technology in a nascent market. The successful execution of its growth strategy, particularly the African expansion and capital raising initiatives, will be critical to reversing losses and achieving sustainable profitability.