Audio Pixels Holdings has made significant technical strides in its MEMS-based Digital Sound Reconstruction technology while securing $1.25 million in new convertible note funding. Despite progress, the company remains suspended from ASX pending further capital raises.
- Successful validation of MEMS fabrication wafer with process improvements
- Second-generation ASIC controller completed tape-out and nearing packaging
- Raised $1.25 million via new convertible notes post-quarter
- Total convertible notes outstanding now $13.75 million
- Shares remain suspended on ASX pending capital raise to meet going concern
Technical Progress on Digital Sound Reconstruction
Audio Pixels Holdings Limited has reported meaningful advancements in its proprietary Digital Sound Reconstruction (DSR) technology during the September 2025 quarter. The company successfully completed an independent MEMS (Micro-Electro-Mechanical Systems) fabrication validation wafer, confirming that critical electromechanical specifications meet design targets. Early testing identified pixel damage caused by a cross-material interaction in the final fabrication step, but targeted process adjustments have since eliminated this issue in subsequent wafer runs.
Alongside MEMS development, Audio Pixels has progressed its second-generation ASIC (Application-Specific Integrated Circuit) controller, designed to fully exploit the capabilities of its Gen-II MEMS architecture. The ASIC tape-out was completed at a leading European foundry, and the device is now in final packaging stages before undergoing rigorous quality assurance testing.
Funding and Financial Position
Post-quarter, Audio Pixels raised an additional $1.25 million through the issuance of new convertible notes to sophisticated investors. These notes carry a 12% annual interest rate, capitalised until repayment or conversion, and are convertible into ordinary shares at a floor price of $3.50, with a conversion discount mechanism tied to future placements. The new issuance brings total convertible notes outstanding to $13.75 million.
Despite this funding, the company’s shares remain suspended from trading on the ASX as it seeks to raise further capital to satisfy going concern requirements set by auditors and the exchange. Cash flow data reveals operating cash outflows of $1.58 million for the quarter and a cash runway of less than one quarter based on current burn rates. Audio Pixels acknowledges the need for additional funding within six months, linked closely to demonstrating its MEMS Gen-II wafers and chips.
Market Interest and Outlook
Audio Pixels continues to attract strong inbound interest across multiple sectors, including consumer audio, automotive, and industrial markets. Industry feedback highlights the technology’s unique blend of miniaturization, sound fidelity, efficiency, and scalability, positioning it as a potential step-change in audio solutions.
The company is approaching a critical inflection point, with near-term milestones expected to support customer engagement and validation, paving the way for commercial deployment. However, the timing and success of future capital raises remain uncertain and will depend on market conditions and the successful demonstration of its technology.
Bottom Line?
Audio Pixels’ technical progress is promising, but its near-term viability hinges on securing further funding and lifting its ASX suspension.
Questions in the middle?
- When will Audio Pixels demonstrate full commercial viability of its MEMS Gen-II wafers and chips?
- How will the company manage its cash runway given ongoing operating losses and capital needs?
- What impact will the ASX suspension have on investor confidence and future capital raising efforts?