Optiscan Imaging reports a sharp 43% drop in revenue and a 43% rise in losses for H1 FY26, driven by restricted research funding in key markets. The company bolsters its balance sheet with a $17.75 million capital raise to advance clinical studies and regulatory approvals.
- 43% decline in revenue to $339,227 for half-year ended December 2025
- Net loss increased 43% to $3.4 million
- Reduced sales of ViewnVivo device due to constrained US and China research funding
- R&D expenses increased to accelerate clinical studies and FDA submissions
- Raised $17.75 million via entitlement offer, boosting net assets to $22 million
Revenue and Losses Reflect Funding Challenges
Optiscan Imaging Limited has reported a significant 43% drop in revenue to $339,227 for the half-year ended 31 December 2025, alongside a 43% increase in net loss to $3.4 million. The decline is primarily attributed to reduced sales of its ViewnVivo life sciences research device, as research funding in the United States and China; the company’s key markets; remains tightly restricted.
This downturn in sales revenue has been compounded by a decrease in other income, including research and development (R&D) incentive income, which fell by $669,406 to $1.16 million. Last year’s figures were bolstered by a one-off adjustment recognising historical overseas R&D expenditure, which did not recur this period.
Increased Investment in R&D and Clinical Progress
Despite the revenue challenges, Optiscan has increased its R&D and intellectual property expenses by $106,712 to $2.66 million. This reflects a strategic decision to accelerate the development of multiple applications of its imaging technology and to advance clinical studies in preparation for regulatory submissions to the US Food and Drug Administration (FDA).
The company also noted delays in its gastrointestinal flexible endomicroscope project, which resulted in no grant funding from the Cooperative Research Centres Projects (CRCP) this half-year, compared to $361,907 received in the previous period.
Capital Raise Strengthens Financial Position
Optiscan’s balance sheet received a substantial boost through a fully underwritten pro-rata renounceable entitlement offer completed in August 2025, raising $17.75 million via the issuance of over 208 million shares. This capital injection increased net assets by $14.3 million to $22 million as of 31 December 2025, significantly improving the company’s working capital position.
The fresh funds are earmarked for critical clinical studies, regulatory submissions, and further development of its clinical medical devices, including the flexible endomicroscope. Operating cash outflows increased slightly to $4.13 million, reflecting ongoing investment in these areas.
Outlook and Market Implications
While the current half-year results highlight the challenges posed by constrained research funding and project delays, Optiscan’s strengthened financial position and increased R&D focus suggest a commitment to advancing its product pipeline and regulatory milestones. The company’s progress with FDA submissions will be a key determinant of its future commercial prospects.
Bottom Line?
Optiscan’s hefty capital raise provides runway for regulatory progress, but funding headwinds and project delays cloud near-term outlook.
Questions in the middle?
- When can investors expect FDA submission outcomes and potential approvals?
- How will ongoing funding restrictions in the US and China impact future sales of ViewnVivo?
- What is the timeline for the gastrointestinal flexible endomicroscope project to resume and secure grant funding?