KNeoMedia advances its KneoScience platform with new orders and high school expansion, while actively working to lift its ASX trading suspension through cost cuts and funding initiatives.
- Continued ASX trading suspension since March 2024
- New USD450,000 order for KneoScience at FY2026 start
- Expansion into high school science investigations for 300,000 students
- Substantial cost reductions and deferred director remuneration
- Available funding of AUD 2.025 million including $2 million equity line
Navigating Suspension and Funding Challenges
KNeoMedia Limited (ASX, KNM) remains suspended from trading on the ASX since March 2024 but is steadily progressing towards reinstatement. The company has implemented a series of strategic initiatives including capital raising through share placements and entitlement issues, renegotiation of convertible notes and loans, and significant cost-cutting measures. Notably, director and senior management remuneration has been reduced, deferred, and partly converted to equity, reflecting a commitment to preserving cash flow.
These financial maneuvers have positioned KNeoMedia with available funding of approximately AUD 2.025 million, bolstered by a $2 million equity line of credit from Stratford Capital. However, utilisation of this facility is contingent on the lifting of the ASX suspension, underscoring the importance of regulatory progress for the company’s liquidity.
KneoScience Platform Gains Traction in US Education
At the heart of KNeoMedia’s growth strategy is the KneoScience Content Services Platform (CSP), a digital education tool developed in partnership with the New York City Department of Education (NYC DOE). The platform digitises mandated science investigations for grades 3 to 8 and is now expanding into high school science subjects, including Biology and Earth Science, with deployment expected in February 2026. This expansion opens access to approximately 300,000 additional students across 530 high schools, significantly broadening the platform’s reach and revenue potential.
Early adoption data is promising. An additional USD 450,000 order was received at the start of the 2026 school year, although payment timing is delayed due to municipal administrative transitions. Educator feedback has been overwhelmingly positive, with around 90% of surveyed teachers across five districts endorsing KneoScience as an effective replacement for traditional paper-based methods. Benefits cited include halving teacher workload, enhancing student engagement, and supporting diverse learning needs through multi-lingual and audio-visual content.
Operational Efficiency and Future Outlook
Operationally, KNeoMedia has reduced its intellectual property development expenditure to $117,000 for the quarter, down from $200,000 in the previous quarter, focusing on platform enhancements aligned with NYC DOE requests. The company is also advancing Regents-level investigations for high school sciences, including Chemistry and Physics, which are nearing completion.
Looking ahead, KNeoMedia anticipates further sales growth consistent with historical usage patterns and is actively engaging with New York City education institutions to secure additional funding arrangements. These developments are critical to strengthening the company’s financial position and supporting the eventual lifting of the ASX suspension.
Bottom Line?
KNeoMedia’s progress with KneoScience and funding initiatives sets the stage for a potential ASX return, but timing and municipal factors remain key hurdles.
Questions in the middle?
- When will the ASX trading suspension be lifted, enabling full access to funding facilities?
- How will municipal administration changes affect the timing of receivable collections?
- What is the expected revenue impact from the high school expansion and Regents-level modules?