HAWAIIAN ELECTRIC INDUSTRIES INC

Current report

As described more fully in Note 1 of the Condensed Consolidated Financial Statements included herein, for the three and nine months ended September 30, 2024, the Company incurred net losses of approximately $104 million and $1.36 billion, respectively. For the three and nine months ended September 30, 2024, the Utilities incurred net losses of approximately $83 million and $1.27 billion, respectively. The net losses for the nine months ended September 30, 2024 were primarily due to the accruals of estimated wildfire liabilities in the second and third quarters of 2024, totaling approximately $1.92 billion related to the Maui windstorm and wildfire tort-related legal claims. The Company previously disclosed in its Quarterly Report on Form 10-Q for the quarter ending June 30, 2024, that based on its financial and liquidity condition, and because it had not yet implemented a capital financing plan to address proposed wildfire settlement payments, there was substantial doubt about HEI’s and the Utilities’ ability to continue as a going concern.

Current report

Management believes that HEI’s and the Utilities’ current cash balances, excluding ASB, as of September 30, 2024, amounting to $677.7 million and $147.6 million, respectively, the available capacity on Hawaiian Electric’s ABL facility (see Note 6 of the Condensed Consolidated Financial Statements), the additional liquidity from HEI’s recently registered ATM program, and expenditure reduction efforts, provide sufficient liquidity to alleviate the conditions that caused the substantial doubt about HEI’s and the Utilities’ ability to continue as a going concern. As discussed in Note 2 of the Condensed Consolidated Financial Statements, HEI has agreed to transfer the amount of the first payment, $479 million, into a new subsidiary, which is restricted from disbursing such funds except in connection with the initial payments to the settlement funds. HEI expects to make this initial payment in late 2025 and HEI and the Utilities have sufficient resources to fund their operations and satisfy their other obligations for the next 12 months following the issuances of their financial statements. The plans that have been implemented have mitigated the conditions that previously caused the substantial doubt about HEI and the Utilities’ ability to continue as a going concern as of the date of filing their 2024 second quarter financial statements. Although the Company has raised sufficient cash to pay the first installment of the settlement of wildfire tort claims, the Company is currently working with its financial advisors on a financing plan to raise the additional capital necessary to fund the remaining payment installments of the settlement of wildfire tort claims. There is no assurance that future financing will be available in sufficient amounts on a timely basis or on reasonable terms acceptable to us, if at all. If we raise funds by issuing equity or equity-linked securities, our shareholders may experience dilution. While management believes the Company will be able to raise the necessary capital, there is no assurance that management’s plans will be successful.

Previous report

As described more fully in Note 1 of the Condensed Consolidated Financial Statements included herein, for the three and six months ended June 30, 2024, the Company incurred net losses of approximately $1.30 billion and $1.25 billion, respectively. For the three and six months ended June 30, 2024, the Utilities incurred net losses of approximately $1.23 billion and $1.19 billion, respectively. The net losses were primarily due to the accrual of estimated wildfire liabilities totaling approximately $1.71 billion related to the Maui windstorm and wildfire tort-related legal claims. This event has raised substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. As of the date of filing of this Form 10-Q, management has not yet implemented a capital financing plan to address expected wildfire settlement payments. The Company expects to finance the settlement payments over time through a mix of debt, common equity, equity-linked securities or other potential options. There is no assurance that future financing will be available in sufficient amounts on a timely basis or on reasonable terms acceptable to us, if at all. If we raise funds by issuing equity or equity-linked securities, our shareholders may experience dilution. While management believes the Company will be able to raise the necessary capital, there is no assurance that management’s plans will be successful.

Previous report — wording carried elsewhere

If a court-approved definitive settlement agreement is reached, the Company expects to finance the settlement payments through a mix of debt, common equity, equity-linked securities or other potential options. While management believes the