Audio Pixels Holdings Limited reported a $7.2 million loss for the half-year ending June 2025, while making significant strides in refining its MEMS digital loudspeaker fabrication process and securing a $6 million loan facility.
- Half-year loss of $7.2 million with revenue up 313% to $83,186
- Technical progress in MEMS wafer fabrication and resolving bonding issues
- Expanded patent portfolio with four new system-level patents
- Secured $6 million unsecured loan facility from 4F Investments Pty Limited
- Convertible notes maturity extended to January 2027
Financial Overview
Audio Pixels Holdings Limited has released its half-year report for the period ending 30 June 2025, revealing a net loss of $7.2 million, more than double the previous corresponding period's loss of $3.17 million. Despite this, the company’s revenue surged by 313% to $83,186, reflecting early commercial traction in its niche MEMS digital loudspeaker technology.
The company remains in a development phase, with no dividends declared, and net tangible assets per share declining to negative 60 cents from negative 29 cents a year earlier. Cash reserves stood at $2.3 million, down from $5.45 million at the end of 2024, underscoring the ongoing cash burn associated with product development.
Technical Progress and Commercial Readiness
Audio Pixels continues to focus on refining the fabrication process of its proprietary MEMS wafers, a critical step towards mass production of its digital loudspeakers. The company successfully addressed a key bonding issue in wafer production, implementing corrective measures that have proven effective. Independent testing confirmed that the fabrication process now meets stringent performance and reliability standards, with some performance metrics surpassing conventional MEMS manufacturing limits.
While the company has yet to complete acoustic performance testing on fully packaged chips, it has shifted focus to quantifying acoustic output at the wafer level, a complex task given the current state of the wafers. The next milestone involves delivering packaged chips that meet testing specifications, essential for demonstrating the technology’s commercial viability to potential investors.
Intellectual Property and Cost Management
During the reporting period, Audio Pixels expanded its patent portfolio by adding four critical system-level patents, reinforcing its competitive moat in the digital sound reconstruction space. Concurrently, the company implemented targeted cost-cutting measures, including reductions in staff and consultancy expenses, to preserve resources without compromising near-term development goals.
Funding and Going Concern Considerations
Funding remains a pivotal challenge. Audio Pixels secured an additional unsecured loan facility of up to $6 million from 4F Investments Pty Limited, a company associated with Chairman Fred Bart, to be drawn progressively over the next twelve months. This loan facility is expected to convert into convertible notes subject to shareholder approval and will be secured against the company’s intellectual property.
The maturity date for existing convertible notes with a face value of $12.5 million has been extended to 31 January 2027, providing some breathing room for the company to reach its next technical milestones. However, the directors acknowledge a material uncertainty regarding the company’s ability to continue as a going concern, contingent on successful chip testing and re-listing on the ASX within 120 days. Failure to meet these conditions could result in cessation of funding from 4F Investments.
Outlook
Audio Pixels is at a critical juncture, balancing technical breakthroughs with financial constraints. The company’s ability to demonstrate its technology convincingly to investors will be key to unlocking further capital and advancing towards commercialisation. Meanwhile, the expanded patent portfolio and refined manufacturing process position Audio Pixels as a potential leader in the emerging MEMS digital loudspeaker market, which intersects a multibillion-dollar MEMS device industry and the traditional loudspeaker sector.
Bottom Line?
Audio Pixels’ next technical milestones and funding outcomes will be decisive in shaping its path from innovation to commercialisation.
Questions in the middle?
- Will Audio Pixels successfully deliver packaged chips that meet performance specifications?
- How soon can the company complete its ASX re-listing to secure broader investor support?
- What are the terms and timing for converting unsecured loans and convertible notes into equity?