RemSense’s Loss Narrows but Going Concern Risks Loom Despite Growth

Strong Revenue Growth and Margin Improvement

RemSense Technologies Limited has reported a significant turnaround in its financial performance for the year ended 30 June 2025. The company’s revenue more than doubled, climbing 107% to $3.44 million, reflecting growing adoption of its virtualplant digital asset management platform and expanded project execution across multiple regions. Alongside this top-line growth, RemSense improved its gross margin to 71.92%, up from 63.96% the previous year, signalling enhanced operational efficiencies and tighter cost control.

Reduced Losses and Positive Cashflow Momentum

Despite remaining in a net loss position, RemSense slashed its loss by two-thirds to $771,459, down from $2.3 million in FY2024. This improvement was underpinned by disciplined expense management and a more efficient use of personnel resources. Notably, the company achieved an underlying positive cash EBITDA of $574,000, marking a milestone in its path to profitability. Quarterly cash flows showed consistent strength, with three quarters generating positive operating cashflow, although the final quarter saw a moderation due to project timing.

Operational Highlights and Market Expansion

Operationally, RemSense executed a diverse portfolio of high-profile projects, including high-resolution scanning for major LNG facilities in Australia, Newmont’s Boddington Gold Mine, Chevron’s Gulf of Mexico assets, and Woodside’s operations. The company advanced its virtualplant platform with AI-driven asset audits, improved user interfaces, and integrations with enterprise systems like SAP and IBM Maximo, enhancing its competitive positioning in digital twin and asset management solutions.

Renewals of virtualplant subscriptions by Tier 1 clients such as Newmont, Woodside, and Triangle Energy validated the platform’s value, while ongoing discussions with Chevron aim to expand virtualplant’s global footprint. RemSense also broadened its market reach, securing engagements with NEXTDC in the data centre sector and re-engaging with the Defence sector under the DISP program, supported by new aviation safety certifications.

Governance and Strategic Outlook

To support its growth trajectory, RemSense strengthened its leadership team with the appointment of a new Commercial Director and promoted its longest-serving technologist to Chief Technical Officer, ensuring continuity and innovation. The company ended FY2025 with a robust pipeline of high-value opportunities, including potential global adoption by Chevron and expansion into African mining operations and infrastructure sectors.

However, the company remains loss-making and faces a material uncertainty regarding its ability to continue as a going concern, primarily due to cash balances and operational cash requirements. This risk is mitigated by a recent capital raise of $750,600 and management’s confidence in accessing further capital markets and managing cash flows effectively.