Audio Pixels has validated a major technical milestone for its digital MEMS speaker array and raised $1.25 million through convertible notes, while securing a $6 million funding commitment to support ongoing development amid continued ASX trading suspension.
- Successful validation of digital MEMS speaker array manufacturing process
- Partial acoustic testing confirms alignment with simulations
- Raised $1.25M via new convertible notes with attached options
- Secured up to $6M working capital funding from 4F Investments
- Shares remain suspended on ASX with funding conditional on milestones
Technical Progress on MEMS Speaker Array
Audio Pixels Holdings Limited has reported significant progress in advancing its Digital Sound Reconstruction (DSR) platform, a cutting-edge digital MEMS speaker array technology. The company announced the successful validation of a major technical milestone in its manufacturing process, with structural measurements on a lead wafer confirming that all critical specifications and tolerances were met or exceeded with high precision. This achievement marks a crucial step toward commercial readiness of the MEMS GEN-II wafers and chips.
Despite some challenges with wafer compatibility limiting full acoustic testing, preliminary acoustic measurements have shown strong alignment with the company’s simulations. Audio Pixels is adapting its testing infrastructure to continue evaluations while awaiting delivery of additional wafers expected in February and March, which should be fully compatible for comprehensive testing and packaging integration.
Funding and Financial Position
On the financial front, Audio Pixels raised an additional $1.25 million through the issuance of convertible notes to sophisticated investors. These notes carry a 12% interest rate, mature in January 2027, and include options exercisable at a strike price of $7.59. This latest raise brings the total outstanding convertible notes to $13.75 million.
Further bolstering its cash position, 4F Investments Pty Limited, associated with Chairman Fred Bart, has committed to providing up to $6 million in working capital funding over the next twelve months. This funding will be progressively drawn through the existing unsecured loan facility and is subject to shareholder approval to convert into convertible notes secured by the company’s intellectual property assets.
Operational Challenges and ASX Suspension
Audio Pixels remains suspended from trading on the ASX, with the company actively working toward lifting this suspension. The continuation of funding from 4F Investments is conditional on the successful delivery of packaged chips meeting testing specifications and the company’s relisting on the ASX within 120 days. Failure to meet these conditions could result in cessation of funding, underscoring the critical nature of upcoming technical milestones.
Cash flow figures reveal a limited runway, with cash and equivalents standing at $853,000 at quarter-end and operating cash outflows of $1.594 million for the quarter. This equates to approximately half a quarter of funding available without additional capital raises. The company acknowledges the need for further funding to sustain research and development activities and is actively reviewing options in coordination with market conditions and technical progress.
Looking Ahead
Audio Pixels is navigating a pivotal phase where technical validation, funding, and regulatory compliance intersect. The successful demonstration of MEMS GEN-II wafers and chips will be crucial not only for product development but also for securing ongoing investor confidence and regulatory approvals. The company’s ability to meet these milestones will shape its path back to active trading and commercialisation.
Bottom Line?
Audio Pixels’ next wafer tests and shareholder approvals will be decisive for its funding and ASX relisting prospects.
Questions in the middle?
- Will the upcoming MEMS GEN-II wafers meet the full acoustic and structural specifications?
- How will shareholder approval processes impact the conversion of loans into convertible notes?
- What is the timeline and likelihood for lifting the ASX trading suspension?