- – Budget review confirms 14D has sufficient funds to maintain technology and project development
- – GAS-TESS business case continuing
- – Strong interest in the Aurora Project
- – Staff and Board cuts
1414 Degrees is pleased to advise that it has reviewed its budgets and can confirm the Company has sufficient funds to maintain its technology and project development.
Our business case modelling with SA Water for the GAS-TESS integrated into the Glenelg Wastewater Treatment Plant will continue until mid-year after which we are expecting a commercial decision.
Our commercial team has also been working with utilities and financial entities attracted by the TESS-GRID as an energy solution for renewable farms. There is strong interest to develop the Aurora Project in the near term. They have also continued studies with large industrial sites to evaluate emissions reduction strategies with the TESS.
The Company is adapting to the capital market and business constraints by reducing hours, effecting redundancies and deferring the upgrade of the silicon storage in the GAS-TESS. The board and senior management have participated by agreeing to between 25% to 75% cut in fees and salaries, with the Executive Chairman taking a 50% pay cut. The board will consider issuing shares to key employees to compensate for the reduction in cash salary.
Although we are anticipating commercial decisions within six months, these measures, if carried forward, would reduce cash outflows by about $2m to support operations into second half 2021.