Harvest Technology Narrows FY2025 Loss to $7.06M on $2.5M Revenue
Harvest Technology Group reported a reduced net loss of $7.06 million for FY2025 amid restructuring and new funding, while focusing on its remote communications technology segment and launching Project NEON.
- Revenue declined slightly to $2.5 million
- Net loss narrowed from $13.3 million to $7.06 million
- Discontinued subsea asset integrity operations
- New convertible notes and director loans secured
- Project NEON set to boost future growth
Financial Performance and Restructuring
Harvest Technology Group Limited (ASX, HTG) released its preliminary final report for the year ended 30 June 2025, revealing a net loss of $7.06 million. This marks a significant improvement from the prior year's $13.33 million loss, although revenue dipped slightly to $2.5 million from $2.65 million. The company attributed the narrower loss to cost-cutting measures and restructuring initiatives completed during the year.
The Group has discontinued its subsea and asset integrity risk mitigation operations, which had been a drag on earnings. This strategic pivot allows Harvest Technology to concentrate on its core remote communications technology segment, which provides data transmission and encryption services tailored for offshore and remote environments.
Asset Impairments and Balance Sheet Highlights
During FY2025, the Group recorded impairments on intangible assets, property, plant and equipment, and right-of-use leased assets, reflecting a conservative approach to financial reporting amid uncertain market conditions. The net tangible asset deficit widened to 1.20 cents per share from 0.70 cents per share the previous year, underscoring ongoing balance sheet challenges.
Despite these impairments, the Group's cash position improved modestly to $722,496, supported by new funding arrangements. Borrowings remain substantial at over $13 million, including secured convertible notes with interest rates around 15%, and director loans with similar terms.
Funding and Going Concern Outlook
Harvest Technology secured $580,000 from sophisticated investors through convertible notes and an additional $110,000 in unsecured director loans post-year end. The Board confirmed the Group remains a going concern, citing expected receipt of the 2025 R&D tax incentive rebate by late 2025 and ongoing fundraising efforts. The company is also in discussions to extend convertible loan note maturities to align with rebate timings, mitigating short-term liquidity risks.
Strategic Focus, Project NEON and Future Prospects
Looking ahead, Harvest Technology is gearing up to launch Project NEON in FY2026, a next-generation edge computing platform designed to accelerate distributed AI and machine learning applications. Early customer feedback has been positive, with expectations that Project NEON will enhance the Group’s speed to market and revenue growth potential.
The Group continues to invest in research and development, supported by government tax incentives, and has implemented share-based payment schemes to align employee incentives with long-term performance goals.
Audit and Compliance
The preliminary financial report is currently under audit, with Directors indicating no anticipated qualifications. The company maintains compliance with Australian Accounting Standards and International Financial Reporting Standards, ensuring transparency and reliability in its disclosures.
Bottom Line?
Harvest Technology’s turnaround hinges on successful Project NEON deployment and securing timely funding to sustain momentum.
Questions in the middle?
- Will Project NEON deliver the anticipated revenue growth to offset ongoing losses?
- How will the Group manage its substantial convertible note maturities amid market uncertainties?
- What is the timeline and certainty around the receipt of the 2025 R&D tax incentive rebate?
