Micro-X Faces Cash Flow Pressure Despite Strategic Reset and Contract Wins

Strategic Partnership and Capital Raise Bolster Growth

Micro-X Ltd (ASX:MX1), a leader in cold cathode x-ray technology, has announced a $5.6 million strategic partnership with Malaysian security scanning specialist Billion Prima. This collaboration aims to develop a portable baggage and parcel scanner incorporating Micro-X's proprietary NEX Technology, targeting exclusive sales rights in South-East Asia for 20 years. The partnership includes a $2.4 million equity investment by Billion Prima and milestone payments totaling $3.2 million, with the first $1 million received during the quarter.

Complementing this, Micro-X raised $4 million through placements and entitlement offers to sophisticated and retail investors, strengthening its balance sheet to support a strategic reset focused on medical imaging. The capital raise saw full participation from the executive team and directors, signaling strong internal confidence.

Progress in Commercial and Funded Development Programs

On the commercial front, Micro-X successfully completed the final in-hospital evaluation of its Rover Plus mobile digital radiology unit with a major US hospital operator. This extensive trial across four hospitals has led to ongoing commercial discussions that could see Rover Plus added to a significant US healthcare procurement catalogue. Sales momentum continues with new distributor appointments in Europe and further orders from US professional sports teams.

In security technology, Micro-X delivered the first Passenger Checkpoint prototype to the US Department of Homeland Security (DHS), ahead of testing in TSA laboratories. The DHS also exercised a $6 million contract extension to develop and test additional checkpoint units, underscoring the government's confidence in Micro-X's airport security solutions.

Advancing Medical Imaging Innovations

Micro-X is progressing its Head CT scanner for stroke diagnosis, funded by the Australian Stroke Alliance, with production scale-up underway for upcoming human imaging trials. The company also commenced detailed design work on a portable full-body CT scanner, backed by up to $25 million in funding from the US ARPA-H agency. These projects leverage Micro-X's NEX Technology to deliver compact, mobile imaging solutions with transformative potential for emergency and clinical settings.

Financial Position and Outlook

Micro-X closed the quarter with $5.1 million in cash, benefiting from the capital raise and milestone payments despite some delays in receivables from DHS. Operational cash outflows were reduced following the discontinuation of the Argus product line, aligning costs with the company’s refined strategic focus. With approximately $20.5 million in committed development contracts subject to milestone achievement and $4 million in Rover Plus inventory ready for sale, Micro-X is positioned to advance its commercial objectives in both medical imaging and security markets.

CEO Kingsley Hall highlighted the company’s progress and resilience amid global uncertainties, emphasizing the clear roadmap for product commercialization and ongoing partnership development. The upcoming investor call on 2 May 2025 will provide further insights into Micro-X’s strategic direction and operational milestones.