Harvest’s Cash Burn and New Market Risks: What’s Next After $2.13m Raise?
Harvest Technology Group reported improved EBITDA and secured new customers across mining, defence, and border control sectors in Q1 FY2026, supported by $2.13 million raised through convertible notes and loans.
- Total revenue of $618k with EBITDA improvement to $0.689m
- Raised $2.13m via debt and convertible notes
- Secured new customers in mining, defence, and border control sectors
- Expanded Nodestream deployments and enhanced platform security
- Signed MOU with Annex Digital for Australian Federal Government projects
Financial Performance and Funding
Harvest Technology Group Limited (ASX, HTG) has reported a September 2025 quarter marked by a notable improvement in earnings before interest, tax, depreciation, and amortisation (EBITDA), which turned positive at $0.689 million compared to a loss of $1.242 million in the prior quarter. This turnaround reflects the benefits of cost rationalisation measures implemented last year, even as total revenue declined slightly to $618,000 from $746,000 in Q1 FY2025.
The company bolstered its financial position by raising $2.13 million through a combination of unsecured and secured convertible notes, alongside a short-term loan from its Managing Director. At quarter-end, Harvest held $1.172 million in cash, with total available funding, including unused financing facilities, standing at $5.672 million; providing a runway of over six quarters based on current cash burn.
Operational Expansion and Market Diversification
Operationally, Harvest made strides in diversifying its customer base beyond its traditional maritime and marine sectors. The company secured a new client in the mineral exploration drilling industry, integrating its Nodestream technology into an autonomous drilling platform; a move that could unlock significant scale if the project progresses successfully.
Further deployments of its Uncrewed Surface Vessel Border Control fleet in the Middle East signal growing traction in security applications, while a key Defence partner commissioned four new prototypes with full advance payment, underscoring confidence in Harvest’s technology offerings.
Product Enhancements and Strategic Partnerships
Harvest continued to enhance its Nodestream platform, implementing security upgrades to strengthen data protection and compliance, alongside technical improvements such as support for H.264 encoding and reduced latency in video transcoding. These upgrades aim to improve scalability and collaboration for remote operations clients.
In a strategic development, Harvest signed a memorandum of understanding with Annex Digital, granting direct access to Australian Federal Government and Defence projects; potentially opening new revenue streams and elevating the company’s profile in government sectors.
Business Development and Market Presence
The company also expanded its sales and marketing capabilities by onboarding John Condo, an experienced Enterprise Business Development Executive, and initiating recruitment for a Marketing Content Development Specialist to enhance market presence and lead generation. Business development trips to Europe and the U.S. revealed increasing client interest in scaling remote and autonomous operations, aligning well with Harvest’s technology focus.
Additionally, a settlement agreement related to the Vos Shine vessel brought in approximately $725,000, further strengthening the company’s cash position.
Bottom Line?
Harvest Technology Group’s diversified sector wins and strengthened balance sheet set the stage for scaling its remote operations technology, though execution risks remain as new deployments mature.
Questions in the middle?
- How quickly will the autonomous drilling project scale and contribute to revenue?
- What are the terms and potential financial impact of the MOU with Annex Digital?
- Can Harvest sustain positive EBITDA as it invests in growth and new market sectors?
