CurveBeam AI Faces Validation Hurdle as Financing Deal Awaits Final Approval
CurveBeam AI reported a robust 40% increase in purchase orders during Q3 FY25 and secured a non-binding A$18 million vendor financing term sheet, positioning the company for cashflow positivity in Q4.
- 40% increase in purchase orders during Q3 FY25 compared to prior year
- Total purchase orders up 67% for the nine months ended March 2025
- Non-binding A$18 million vendor financing term sheet signed, targeting Q4 execution
- Cash at quarter-end A$4.9 million, with near-term cash expected to reach A$13.8 million
- Enhanced HiRise™ validation progressing for robotic surgical systems
Strong Sales Momentum
CurveBeam AI Limited (ASX: CVB) has demonstrated significant sales growth in its Q3 FY25 results, with purchase orders (POs) rising 40% to seven devices compared to five in the prior corresponding period. This uplift contributes to a 67% increase in total POs for the first nine months of FY25, reaching 20 orders versus 12 in the same period last year. Despite a tender withdrawal in Thailand due to hospital earthquake damage, the company’s order book reflects growing market demand for its specialised medical imaging solutions.
Financing Facility to Accelerate Growth
In a strategic move to support expansion, CurveBeam AI has entered into a non-binding term sheet with an international financing partner for an approximately A$18 million (€10 million) vendor financing facility. Expected to be finalised in Q4 FY25 after due diligence, this facility will enable the company to offer leasing options for its HiRise™ devices, particularly in Europe and other key markets. Additionally, it will facilitate immediate financing of existing leased devices, unlocking near-term positive cash inflows.
Improved Cash Position and Outlook
At the end of Q3 FY25, CurveBeam AI held A$4.9 million in cash, supplemented by A$7.9 million in receivables from previous purchase orders, bringing near-term available cash to an estimated A$13.8 million. Although receipts from customers dipped to A$1.5 million in Q3 due to fewer device installations, the company anticipates a significant increase in installations in Q4, projecting a cashflow-positive quarter. Operational efficiencies were also evident, with product manufacturing and staff costs both reduced compared to Q2.
Progress on HiRise™ Validation
CurveBeam AI continues to advance validation of its enhanced HiRise™ CT scanner tailored for robotic-aided surgical systems. The company submitted comprehensive matched patient scan data and updated usage instructions to the vendor, meeting or exceeding performance benchmarks against multidetector CT controls. The vendor’s review is pending, and CurveBeam AI remains confident that this will complete the validation process, potentially unlocking new clinical applications and market opportunities.
Investor Engagement and Corporate Governance
During the quarter, CEO Greg Brown engaged with institutional investors at the Euroz Hartleys and NWR Virtual Healthcare Conferences, underscoring the company’s growth narrative and strategic initiatives. Payments to related parties, including executive and non-executive directors, amounted to A$226,000, reflecting standard governance disclosures. The company also confirmed that funds from its previous capital raise have been fully acquitted, maintaining transparency on use of proceeds.
Bottom Line?
With a strengthened order book, new financing avenues, and advancing product validation, CurveBeam AI is poised for a pivotal Q4 FY25 that could reshape its cashflow trajectory and market footprint.
Questions in the middle?
- Will the vendor financing facility close on schedule and under what final terms?
- How soon will revenue recognition accelerate following the anticipated Q4 device installations?
- What is the timeline for vendor approval of the enhanced HiRise™ validation and its commercial impact?
