Micro-X Secures $2.5M Boost to Advance Airport Security Tech

Micro-X’s U.S. arm has won a $2.5 million contract extension from the Department of Homeland Security to enhance its passenger self-screening technology, pushing total DHS funding to nearly $32 million.

  • US$2.5 million contract extension awarded by DHS
  • Funding targets advancement of passenger self-screening detection algorithms
  • Total DHS contract value with Micro-X now up to US$20.9 million
  • Ongoing TSA lab testing with plans for live airport trials
  • Milestone-based funding with immediate $0.4 million commitment
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Micro-X Deepens DHS Partnership

Australian technology firm Micro-X Ltd (ASX – MX1) has secured an additional $2.5 million contract extension from the U.S. Department of Homeland Security (DHS) through its U.S. subsidiary, Micro-X Inc. This latest tranche of funding is earmarked to accelerate the development of cutting-edge passenger self-screening checkpoint detection algorithms, a critical component in next-generation airport security solutions.

The extension brings the total value of Micro-X’s contracts with DHS to approximately $31.7 million (US$20.9 million), underscoring the growing confidence in the company’s proprietary cold cathode X-ray technology and its application in security screening. With $0.4 million already committed, the milestone-driven funding will support ongoing enhancements to the software and machine learning capabilities that underpin threat detection.

Progressing Toward Live Airport Trials

Micro-X’s technology is currently undergoing rigorous testing within TSA laboratories, with one checkpoint unit and two baggage scanners actively evaluated. The company is contracted to supply an additional two checkpoint units to facilitate testing in a live airport environment, marking a significant step toward commercial deployment. This phased approach reflects the highly confidential and classified nature of the project, which aims to improve passenger experience while maintaining robust security standards.

CEO Kingsley Hall highlighted the strategic importance of this contract extension, emphasizing the role of advanced detection software in staying ahead of evolving security threats. The company’s vertically integrated design and production capabilities in Adelaide, combined with its expanding U.S. presence in Seattle, position Micro-X well to capitalize on growing demand for innovative security technologies.

Broader Implications for Micro-X

This contract extension not only reinforces Micro-X’s standing as a key player in airport security technology but also contributes to a solid revenue pipeline, with contracted payments for fiscal year 2026 and beyond now reaching up to $18.3 million. The company’s portfolio spans multiple high-margin applications, including healthcare and military sectors, but the DHS partnership remains a cornerstone of its growth strategy.

As the company advances its machine learning algorithms and prepares for live environment testing, investors will be watching closely for milestones that could unlock further funding and commercial opportunities. The confidential nature of the work adds an element of intrigue, with the potential for significant breakthroughs in how airports manage passenger screening.

Bottom Line?

Micro-X’s expanded DHS contract signals growing trust in its security tech, setting the stage for critical live trials and future growth.

Questions in the middle?

  • What specific milestones must Micro-X achieve to unlock the full $2.5 million extension?
  • How soon will the additional checkpoint units be deployed in live airport settings?
  • Could this technology lead to broader commercial contracts beyond DHS and TSA?