Funding Crunch and ASX Suspension Cloud Audio Pixels’ Future
Audio Pixels Holdings reports a delay in its MEMS wafer production due to a key fabrication step requiring revision, while its shares remain suspended on the ASX. The company signals the need for additional funding within six months to sustain its R&D efforts.
- Delay in GEN-II MEMS wafer fabrication to end of August
- Key wafer bonding process failed quality standards
- ASIC and software development remain on track
- Shares suspended on ASX pending compliance information
- Company expects to raise additional capital within six months
Progress and Setbacks in MEMS Fabrication
Audio Pixels Holdings Limited has provided a detailed update on its ongoing development of Digital Sound Reconstruction technology, focusing on the fabrication of its custom-designed MEMS wafers. While significant progress has been made, the company disclosed that a critical wafer bonding step did not meet the required standards after final testing, necessitating revisions to the fabrication process.
This setback means the delivery of the first GEN-II wafers has been pushed back to the end of August, delaying the timeline for mass production readiness. Despite this, the accompanying GEN-II ASIC chips, packaging, and software components remain on schedule, preserving some momentum in the overall project.
Financial Position and Funding Challenges
Financially, Audio Pixels reported a net cash outflow of $1.583 million from operating activities this quarter, with cash reserves standing at $2.816 million. The company holds unsecured loan facilities and convertible notes totaling over $18 million, primarily from 4F Investments Pty Limited, controlled by Chairman Fred Bart.
However, the company acknowledges that additional funding will be required within the next six months to sustain its research and development activities. The timing and method of this capital raise remain under review, with success contingent on market conditions and the demonstration of the MEMS GEN-II wafers and chips.
Regulatory and Market Implications
Audio Pixels’ shares continue to be suspended from trading on the ASX as the company works to provide additional information to satisfy listing requirements. This suspension adds a layer of regulatory uncertainty, potentially impacting investor confidence and the company’s ability to raise capital promptly.
The company has committed to transparent communication as it navigates these challenges, emphasizing the importance of a robust and repeatable fabrication process to enable volume manufacturing at qualified global foundries.
Bottom Line?
Audio Pixels must overcome fabrication hurdles and secure funding soon to keep its commercialization ambitions alive.
Questions in the middle?
- Will the revised MEMS fabrication process meet reliability and yield targets?
- How soon can Audio Pixels lift the ASX suspension and restore market confidence?
- What are the prospects and timing for the company’s next capital raise?
