How CurveBeam AI’s $10M China Deal and $6.5M Raise Could Transform Growth

Sales Momentum and Market Expansion

CurveBeam AI Limited (ASX – CVB) has kicked off fiscal 2026 with encouraging sales momentum, reporting a 33.3% increase in purchase orders for its specialised CT imaging devices compared to the same quarter last year. All four devices ordered in Q1 FY26 were sold in the US market, including three of its flagship HiRise™ scanners, underscoring steady demand for its weight-bearing CT technology.

Despite a seasonal dip in cash receipts to A$1.374 million during the northern hemisphere summer quarter, the company carried a strong backlog of purchase orders and receivables worth over A$5 million into the new fiscal year. This positions CurveBeam AI well for revenue recognition in upcoming quarters, given the typical two-to-six month cycle from order to installation and payment.

Strategic Capital and Partnership Moves

To fuel growth and operational needs, CurveBeam AI successfully completed a A$6.5 million placement with institutional and sophisticated investors. This capital injection complements the company’s recently secured vendor financing facility worth approximately A$18 million, arranged with a Swiss medical device financier. The facility aims to ease purchasing barriers for orthopaedic practices by enabling lease-based acquisition of HiRise™ systems, potentially accelerating sales across North America and Europe.

Perhaps most notably, CurveBeam AI has formalised a 10-year exclusive distribution partnership in China, Hong Kong, Macau, and Taiwan through a joint venture with Shandong WeiYing Intelligent Medical Technology Co., Ltd. The deal includes an upfront investment of A$4 million and a further A$6 million contingent on commercial and regulatory milestones, alongside royalty arrangements. This partnership marks a pivotal step in penetrating the vast and complex Chinese medical device market, leveraging a local partner’s established distribution network and regulatory expertise.

Regulatory Progress and Product Validation

On the regulatory front, CurveBeam AI continues to advance its FDA submissions for its bone mineral density (BMD) Multiple Detector CT (MDCT) software module. Following a successful comparative analysis with the clinical gold standard DXA, the company targets FDA 510(k) clearance by mid-2026. This milestone is critical for commercialising the BMD module, which is designed to assist in managing hip fracture patients, a significant market segment in the US healthcare system.

Additionally, the company is engaged in ongoing validation activities with a major robotic system vendor to support enhancements to the HiRise™ platform. While progress is steady, the timing of completion remains subject to the vendor’s internal processes, leaving some uncertainty around the finalisation of validation and labelling updates.

Financial Position and Outlook

CurveBeam AI reported operating cash outflows of A$4 million for the quarter, reflecting investment in growth initiatives and the typical seasonal slowdown in receipts. The company ended the quarter with A$2.166 million in cash, supplemented by the early settlement of a portion of the placement funds and anticipated milestone payments from the China JV within the next 30 to 60 days. Management expects cash flow to improve as device installations ramp up and milestone payments materialise.

Overall, CurveBeam AI’s Q1 FY26 update highlights a company navigating the challenges of scaling a specialised medical technology business with a clear focus on regulatory milestones, strategic partnerships, and innovative financing solutions to drive adoption globally.