Harvest Technology Group’s half-year report reveals a 50% revenue decline and a widening net loss, offset by a $6 million funding facility and strategic partnerships.
- Revenue from continuing operations halved to $720,690
- Net loss attributable to members increased 14% to $3.86 million
- Secured $6 million funding facility, with $2.5 million drawn down
- Received $1.28 million R&D tax incentive rebate and $730,469 settlement from VOS Shine claim
- Entered exclusive reseller agreement and strategic defence collaboration
Financial Performance and Revenue Challenges
Harvest Technology Group Limited has reported a challenging first half for the 2025 financial year, with revenue from continuing operations falling sharply by 50% to $720,690 compared to the prior corresponding period. This decline reflects ongoing pressures in the remote communications technology sector, despite the company’s efforts to optimise operations and reduce costs.
The net loss attributable to members widened to $3.86 million, a 14% increase from the $3.38 million loss recorded in the first half of 2024. The loss includes significant non-cash expenses such as share-based payments, derivative financial liabilities, and equity-settled advisory costs, which weigh heavily on the bottom line.
Funding and Liquidity Position
Despite the financial headwinds, Harvest Technology secured a $6 million funding facility from RiverFort Global Opportunities PCC Ltd, drawing down $2.5 million by the end of December 2025. The company also raised additional funds through convertible notes placements and unsecured director loans, bolstering its cash position to $781,944 at period end.
The directors acknowledge a working capital deficiency of $7.3 million but remain confident in the company’s ability to continue as a going concern. This confidence is underpinned by the undrawn portion of the funding facility, expected receipt of the 2026 R&D tax incentive rebate, and a binding commitment to raise $1.63 million via a share placement in early 2026.
Strategic Developments and Partnerships
Harvest Technology has made notable strides in expanding its market reach and product distribution. The company executed an exclusive reseller agreement with Pyxis Controls for its Nodestream™ technology suite across the Middle East, North Africa, Turkey, India, and South Africa. Additionally, a memorandum of understanding with Annex Digital Pty Ltd aims to jointly pursue government and defence tenders, signalling a strategic pivot towards defence-aligned, mission-critical opportunities.
The company also resolved a longstanding claim related to the VOS Shine offshore support vessel, receiving a settlement payment of $730,469, which provides some financial relief and closure to this discontinued operation.
Outlook and Risks
While Harvest Technology is actively managing its cash flow and funding options, the company faces ongoing risks related to its investment in TRU Recognition Holdings Ltd, which entered liquidation in late 2025. The recoverability of the $500,000 convertible notes investment remains uncertain, adding a layer of financial risk.
The company’s ability to execute its strategic partnerships and convert funding commitments into sustainable revenue growth will be critical in the coming months. Investors will be watching closely for updates on the share placement, the utilisation of the funding facility, and progress in defence sector engagements.
Bottom Line?
Harvest Technology’s next steps hinge on converting funding into growth amid ongoing losses and operational challenges.
Questions in the middle?
- Will the planned $1.63 million share placement close successfully and on what terms?
- How will the company manage the risk around its $500,000 investment in the liquidated TRU Recognition Holdings?
- Can the new strategic partnerships materially improve revenue in the second half of 2026?