New Risk • May 16
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 124% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (15% average weekly change). Negative equity (-€1.0m). Shareholders have been substantially diluted in the past year (124% increase in shares outstanding). Market cap is less than US$10m (€7.05m market cap, or US$7.67m). Minor Risks Currently unprofitable and not forecast to become profitable over next 2 years (€400k net loss in 2 years). Revenue is less than US$5m (€3.8m revenue, or US$4.1m). Reported Earnings • May 05
Full year 2023 earnings released Full year 2023 results: Revenue: €5.47m (up 123% from FY 2022). Net loss: €4.78m (loss widened 20% from FY 2022). New Risk • Mar 23
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (17% average weekly change). Earnings have declined by 30% per year over the past 5 years. Market cap is less than US$10m (€5.59m market cap, or US$6.04m). Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Shareholders have been diluted in the past year (43% increase in shares outstanding). Revenue is less than US$5m (€4.6m revenue, or US$4.9m). New Risk • Mar 06
New major risk - Revenue and earnings growth Earnings have declined by 30% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (25% average weekly change). Earnings have declined by 30% per year over the past 5 years. Market cap is less than US$10m (€5.02m market cap, or US$5.48m). Minor Risks Shareholders have been diluted in the past year (43% increase in shares outstanding). Revenue is less than US$5m (€4.6m revenue, or US$5.0m). New Risk • Oct 23
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of German stocks, typically moving 8.5% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (8.5% average weekly change). Market cap is less than US$10m (€7.13m market cap, or US$7.60m). Minor Risks Currently unprofitable and not forecast to become profitable over next 2 years (€1.6m net loss in 2 years). Shareholders have been diluted in the past year (2.5% increase in shares outstanding). Revenue is less than US$5m (€4.1m revenue, or US$4.4m). New Risk • Aug 04
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: €9.02m (US$9.96m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (€9.02m market cap, or US$9.96m). Minor Risks Currently unprofitable and not forecast to become profitable next year (€1.8m net loss next year). Share price has been volatile over the past 3 months (8.8% average weekly change). Revenue is less than US$5m (€2.0m revenue, or US$2.2m). Breakeven Date Change • Mar 23
No longer forecast to breakeven The analyst covering Enertime no longer expects the company to break even during the foreseeable future. The company was expected to make a profit of €700.0k in 2024. New forecast suggests the company will make a loss of €0 in 2024. Reported Earnings • Mar 23
Full year 2022 earnings released Full year 2022 results: Revenue: €2.63m (down 2.3% from FY 2021). Net loss: €3.99m (loss widened 83% from FY 2021). Revenue is forecast to grow 41% p.a. on average during the next 3 years, compared to a 8.4% growth forecast for the Electrical industry in Germany. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 4 non-independent directors. Director Laurence Grand-Clement was the last director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 02
First half 2022 earnings released: EPS: €0 (vs €0.13 loss in 1H 2021) First half 2022 results: EPS: €0. Revenue: €1.48m (down 11% from 1H 2021). Net loss: €1.72m (loss widened 61% from 1H 2021). Reported Earnings • May 01
Full year 2021 earnings released Full year 2021 results: Revenue: €3.22m (up 12% from FY 2020). Net loss: €2.18m (loss narrowed 1.3% from FY 2020). Over the next year, revenue is forecast to grow 52%, compared to a 11% growth forecast for the industry in Germany. Breakeven Date Change • Apr 27
Forecast to breakeven in 2023 The analyst covering Enertime expects the company to break even for the first time. New forecast suggests losses will reduce by 40% per year to 2022. The company is expected to make a profit of €700.0k in 2023. Average annual earnings growth of 90% is required to achieve expected profit on schedule. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 5 non-independent directors. Director Laurence Grand-Clement was the last director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Breakeven Date Change • Oct 29
Forecast to breakeven in 2023 The analyst covering Enertime expects the company to break even for the first time. New forecast suggests the company will make a profit of €700.0k in 2023. Average annual earnings growth of 90% is required to achieve expected profit on schedule. Reported Earnings • Oct 03
First half 2021 earnings released The company reported a poor first half result with increased losses, weaker revenues and weaker control over costs. First half 2021 results: Revenue: €1.41m (down 23% from 1H 2020). Net loss: €1.07m (loss widened 172% from 1H 2020). Reported Earnings • Apr 25
Full year 2020 earnings released The company reported a soft full year result with increased losses and weaker control over costs, although revenues improved. Full year 2020 results: Revenue: €3.20m (up 28% from FY 2019). Net loss: €2.21m (loss widened 59% from FY 2019).