Micro-X Faces Cashflow Pressure Despite Breakthrough US Supply Deal and Product Progress
Micro-X has landed a significant supply agreement with a top US healthcare provider for its Rover Plus mobile X-ray units, while progressing clinical trials and development milestones for its innovative CT imaging products.
- Supply agreement signed with major US healthcare group for Rover Plus units
- Head CT scanner moves closer to clinical imaging trials
- Full Body CT project hits $1.4M milestone under ARPA-H funding
- Security checkpoint and baggage scanner prototypes advance with US DHS
- Closing cash balance of $3.2M, pro forma $5.1M after overdue payments received
Commercial Breakthrough in US Healthcare
Australian medical imaging innovator Micro-X Ltd (ASX, MX1) has taken a major step forward in commercialising its Rover Plus mobile X-ray technology. In July 2025, the company signed a supply agreement with one of the largest healthcare providers in the United States, operating over 700 facilities nationwide. This deal, following a rigorous evaluation and tender process, allows the customer’s network to purchase Rover Plus systems without further tendering, marking Micro-X’s first significant foothold in the US healthcare market.
While the agreement does not include minimum order commitments, it signals growing confidence in Micro-X’s technology and sales strategy. The company is also in advanced talks with another major US procurement group, suggesting further expansion opportunities. Complementing this, Micro-X appointed Lighthouse Imaging to spearhead US sales efforts, with the Rover Plus showcased at the World Health Expo in Miami earlier this year.
Progress on Medical Imaging Fronts
On the product development side, Micro-X is advancing its next-generation CT imaging portfolio. The Head CT scanner, designed for rapid stroke diagnosis, has made significant progress with its test bench now capable of delivering high-resolution images suitable for clinical trials. These trials, funded by the Australian Stroke Alliance, are set to commence next quarter across multiple Australian hospitals, with a nine-month trial period anticipated.
Meanwhile, the Full Body CT scanner project, supported by US government agency ARPA-H, achieved a key $1.4 million milestone this quarter. The milestone was triggered by the submission and acceptance of a comprehensive technical dossier, underscoring steady progress toward a lighter, more portable CT imaging solution based on Micro-X’s proprietary NEX technology.
Security Products Advance with US Government Support
Micro-X’s security division continues to develop innovative screening technologies in partnership with the US Department of Homeland Security and the Transportation Security Administration. The Passenger Checkpoint prototype is undergoing extensive testing at TSA labs in New Jersey, with a second prototype on the way following a contract extension. Additionally, the Baggage & Parcel Scanner collaboration with Billion Prima reached a $0.9 million milestone after completing mechanical design work, keeping the project on track within its 12-month schedule.
Financial Position and Outlook
Financially, Micro-X closed the quarter with $3.2 million in cash, which improves to a pro forma $5.1 million after receipt of $1.9 million in overdue project payments from DHS and Billion Prima. The company also secured a $3.2 million loan facility linked to its 2025 R&D tax rebate, providing additional liquidity. Despite a net cash outflow of $1.8 million for the quarter, management remains confident in the company’s ability to fund operations, supported by $16 million in forward contract receipts contingent on milestone achievements.
CEO Kingsley Hall highlighted the company’s strategic focus on expanding Rover Plus sales, advancing clinical trials for the Head CT, and monetising security assets through partnerships. With inventory ready to support new orders and multiple development programs progressing, Micro-X is positioning itself for sustained growth in both health and security markets.
Bottom Line?
Micro-X’s latest quarter underscores a pivotal commercial breakthrough and steady product development, setting the stage for accelerated growth and market penetration.
Questions in the middle?
- How quickly will Rover Plus sales ramp up across the US healthcare provider’s network?
- What will clinical trial results reveal about the Head CT’s diagnostic performance?
- How will Micro-X’s strategy to monetise its security business impact future revenues?