Why Did 1414 Degrees’ Losses Surge 192% While Advancing Silicon Energy Tech?

Financial Results and Losses

1414 Degrees Ltd has reported a significant increase in losses for the half-year ended 31 December 2025, with a loss after tax of $3.86 million, up 192.2% from $1.32 million in the prior corresponding period. The company’s net tangible assets per share also declined to 1.00 cent from 2.16 cents, reflecting the financial pressures faced during the period.

The company’s financial statements were prepared on a going concern basis but included a material uncertainty note, highlighting the need for additional capital or cash inflows to sustain operations.

Technology Development Progress

Despite the financial challenges, 1414 Degrees advanced several key technology initiatives. The company continued commercialisation efforts for its SiBox system and proprietary SiBrick thermal storage media, designed to deliver industrial heat from renewable electricity to decarbonise energy-intensive sectors.

Progress was also made on the SiPHyR silicon-based reactor program, which integrates thermal storage with methane pyrolysis to produce low-emissions hydrogen and solid carbon co-products. Test reactors successfully produced hydrogen and carbon, informing the design of a larger prototype. The company secured a $492,526 Australian Government Economic Accelerator Ignite grant to support catalyst development in collaboration with the University of Adelaide and University of Queensland.

In October 2025, 1414 Degrees expanded its silicon technology platform by executing an exclusive worldwide licence agreement for George Washington University’s silicon nanoparticle technology, branded SiNTL. This technology aims to enhance lithium-ion battery anodes, improving energy density while remaining compatible with existing manufacturing processes. The company raised $1.21 million (before costs) through a share placement to support this initiative.

Joint Venture and Credit Impairment

A significant development during the period was the administration appointment of Vast Renewables Limited, the 50% joint venture partner in SiliconAurora Pty Ltd. Vast’s financial distress led 1414 Degrees to recognise a $1.5 million expected credit loss on deferred consideration receivable from the joint venture, as the milestone triggering payment had not been met.

Under the share sale agreement, failure of Vast to meet payment obligations could result in 1414 Degrees regaining full ownership of SiliconAurora. The company is actively exploring strategic options, including potentially acquiring Vast’s 50% interest, subject to due diligence and approvals.

Aurora Energy Precinct and Battery Storage

1414 Degrees continues to develop the Crown-sponsored Aurora Energy Precinct near Port Augusta, South Australia, aimed at supporting energy-intensive industries with firmed renewable electricity. Development includes a 140 MW / 280 MWh Battery Energy Storage System project within the National Electricity Market, integrating battery storage, solar generation, and SiBox thermal storage.

Subsequent to the reporting period, the company issued 44 million new shares to Lind Global Fund II, LP under an existing subscription agreement, bolstering working capital and project development funding.

Outlook and Challenges

While 1414 Degrees has made tangible progress in its silicon-based energy storage and hydrogen production technologies, the financial results underscore the challenges of commercialising cutting-edge energy solutions amid market and partner uncertainties. The administration of Vast Renewables injects complexity into joint venture projects, though 1414 Degrees remains committed to advancing its technology platforms and strategic initiatives.