Micro-X Faces Rising Costs Amid Expansion; Can New Capital Sustain Growth?

Commercial Breakthrough in Southeast Asia

Micro-X Ltd, an Australian innovator in cold cathode X-ray technology, closed 2025 on a high note with a record-breaking $3.3 million order for its Rover mobile X-ray units from the Malaysian Ministry of Health. This milestone not only validates Micro-X’s strategic focus on larger, higher-margin contracts but also cements its growing footprint across Southeast Asia, with registrations now secured in Malaysia and Vietnam.

The rapid manufacture and delivery of these units by mid-December underscore the company’s operational agility and ability to meet government demand promptly. The new Rover 2026 model, unveiled at the prestigious RSNA conference, promises enhanced features that maintain its competitive edge in portability and imaging performance.

Strengthened Partnerships and Capital Infusion

Backing this commercial momentum is a successful $6.2 million capital raising, anchored by strategic partner Billion Prima. Their additional $3 million investment more than doubles their stake in Micro-X to 8.6%, reflecting strong confidence in the company’s trajectory and ongoing collaboration on security scanner projects.

This capital injection is earmarked to accelerate commercial activities, scale up manufacturing of X-ray tubes and generators, and advance regulatory preparations for the upcoming Head CT system launch. The company ended the quarter with $4.9 million in cash and a further $1.7 million in committed placement proceeds, providing a solid financial runway for 2026.

Advancing Medical Imaging Innovations

Micro-X’s development pipeline remains robust. The Head CT scanner has reached a critical juncture, with the first test bench completed and ready for in-hospital human trials at the Royal Melbourne Hospital early this year. These trials are pivotal for regulatory submissions targeted by the end of 2026, aiming for a commercial launch in 2027.

Meanwhile, the Full Body CT program has successfully passed its preliminary design review under the ARPA-H development agreement, triggering a $1.3 million milestone payment. This progress positions Micro-X well within the evolving landscape of advanced diagnostic imaging technologies.

Security Technology and Future Outlook

On the security front, Micro-X continues to advance its partnership with the U.S. Department of Homeland Security and Transportation Security Administration. Testing of Passenger Checkpoint and Baggage Scanners is ongoing, with production ramping up for contracted units, reinforcing the company’s role in next-generation airport security solutions.

Operational cash outflows increased during the quarter due to manufacturing scale-up and staffing costs, reflecting the company’s growth phase. However, the strengthened balance sheet and multiple near-term catalysts suggest Micro-X is well positioned to deliver value throughout 2026.