Audio Pixels Pushes Boundaries in Sound Tech Amid ASX Trading Suspension

Technical Milestones Drive Commercial Ambitions

Audio Pixels Holdings Limited has reported a focused quarter advancing its proprietary Digital Sound Reconstruction technology, a breakthrough in audio innovation. Central to this progress is the ongoing collaboration with their primary MEMS vendor to achieve the critical 'Process Freeze' milestone. This milestone represents the establishment of a consistent, repeatable, and scalable fabrication process for their MEMS-GEN-II devices, a prerequisite for mass production and commercialisation.

The company detailed the complexity of this task, noting that hundreds of intricate process steps must be iteratively refined to reduce variability. Even minor deviations in fabrication can cascade into significant performance issues, making the timeline for achieving Process Freeze inherently unpredictable. Despite these challenges, management remains confident in delivering the first commercial product within the 2025 calendar year.

Advancements in Controller Design and Packaging

Alongside fabrication efforts, Audio Pixels has progressed the redesign and production of its embedded GEN-II high-voltage mixed-signal controller (HVD-GEN-II). Enhancements in chip assembly and packaging have also been implemented to optimise device performance, reliability, and cost efficiency. These technical refinements are critical to ensuring the product meets commercial standards and can compete effectively in the audio technology market.

Financial Position and Capital Raising

Financially, the company has bolstered its working capital by issuing an additional $2 million in convertible notes to sophisticated investors, bringing the total outstanding convertible notes to $12.5 million. These notes carry a 12% annual interest rate, capitalised until repayment or conversion, with a maturity date set for December 31, 2025. Investors also received unlisted options as incentives, reflecting confidence in the company’s growth prospects.

Cash flow statements reveal a net operating cash outflow of $1.736 million for the quarter, with cash and equivalents standing at $6.453 million. This liquidity position provides an estimated 3.7 quarters of funding at current burn rates, offering a runway to continue development and commercialisation efforts.

Regulatory and Market Challenges

Despite these operational and financial strides, Audio Pixels’ shares remain suspended from trading on the ASX. The suspension is linked to the company’s need to hold its 2023 Annual General Meeting and demonstrate compliance with several ASX listing rules. The company is actively engaging with the ASX to address these requirements and expects to release a notice of meeting shortly. The timing of reinstatement remains uncertain but is a critical factor for restoring market confidence and liquidity.

Management has committed to providing timely updates as milestones are reached and regulatory issues resolved, signalling transparency and ongoing engagement with stakeholders.