Defence, artificial intelligence and government contracts drove the week’s biggest technology share moves, while several smaller companies warned they may need more cash.
Micro-X, RMA Global and Stakk led the price rises, but refinancing pressure remained a major concern across the sector.
- Micro-X rose 37.78% after winning a US$0.75 million US government contract extension.
- RMA Global gained 37.50% after appointing a new chief executive and chair.
- Stakk climbed 36.84% after signing contracts with the FBI and Candescent.
- Codan forecast first-half profit of at least $160 million as battlefield communications demand increased.
- Several companies, including xReality Group, Prophecy and Locate Technologies, faced audit or refinancing pressure.
Micro-X led the week’s biggest moves, rising 37.78% after securing an eight-month, US$0.75 million contract extension from the US Department of Homeland Security. The work will improve its miniature CT baggage scanner, but it is still a development contract rather than a product sale. RMA Global gained 37.50% after changing its chief executive and chair. Investors are now waiting to see whether the simpler business plan produces a better result in FY27. Stakk rose 36.84% after signing a five-year US$9 million agreement with Candescent and securing a live signature verification project for the FBI.
Defence and government work lift expectations
Codan posted the clearest earnings signal among the larger technology companies. It expects first-half FY27 profit after tax of at least $160 million. Communications revenue is forecast at $400 million to $410 million, with a profit margin of about 40%. Conflict regions are expected to provide about half of that revenue. The company raised its full-year communications growth forecast to 30% to 40%, although demand beyond three months remains hard to predict. Codan shares rose 29.09%.
Other companies also secured public-sector work. Acusensus extended its New South Wales speed camera agreement by six months, adding about $16 million in contracted value through June 2027. Excite won a further $3.2 million federal government contract over 24 months. Micro-X’s new award moves its scanner closer to possible commercial use, but no product revenue has been announced. These companies still need to turn short contracts and trials into longer-term sales.
AI growth meets the cost of staying alive
AI and software companies reported mixed results. Felix raised $5.54 million from institutions and proposed a further $1 million shareholder offer. The money will support artificial intelligence tools, vendor growth and platform development. Felix reported $13 million in contracted annual recurring revenue after buying Nexvia, but it also recorded a $4.2 million adjusted earnings loss and used $6.2 million in operating cash during FY26. Yojee raised $10.45 million and has signed 12 customers for its MOSAIC freight platform. It expects the first revenue in the December quarter, but reported an $8.2 million loss for FY26.
FortifAI ended FY26 with $20.4 million in cash and no borrowings, yet its $29 million loss and 56% fall in revenue put pressure on its NOL8 artificial intelligence product to gain paying users. archTIS grew revenue by 119.9% after buying Spirion, but lost $16 million and used $15.36 million in operating cash. Its auditor warned that the company may not have enough funding unless it extends or refinances a lending facility by late October. A strong sales figure does not remove the need for cash when losses remain high.
Audit warnings keep small-cap investors cautious
Several companies entered the week with warnings about their ability to keep operating. Prophecy’s revenue fell 15% to $18.4 million, its loss widened to $7.9 million and cash fell 80% to $1 million. Locate Technologies faces a $4 million debt maturity on 7 November 2026, despite 33.7% growth in Locate2u revenue. Enprise reported a NZ$1.87 million loss and drew a NZ$2.04 million term loan after year-end. IOD, Vection, AdNeo, Gratifii, ION Video, Victor Group, SOCO and Thrive Tribe also reported auditor warnings linked to future funding needs.
xReality Group remains suspended while its audit is completed. The company identified a $5.79 million adjustment to FY26 results, including deferred government grant income and a $1.06 million impairment of its Gold Coast facility. Net assets fell from $14 million to $6.7 million, while customer revenue and cash flow were unchanged. Nodestream gained extra time to repay A$8.325 million of convertible notes, but the proposed issue of up to 189.2 million options still requires shareholder approval. These cases show why investors are paying close attention to cash balances, debt dates and audit qualifications, not only revenue growth.
Bottom Line?
The next tests will be specific and time-bound. xReality Group must complete its audit and lodge revised accounts before trading can resume. archTIS must extend or refinance its lending facility by late October. Locate Technologies faces a November debt maturity, while Yojee expects its first MOSAIC billings in the December quarter. Codan’s first-half result will show how much of its forecast profit comes from current defence demand.
Questions in the middle?
- Can xReality Group complete its audit and resume trading without further changes to its accounts?
- Will archTIS and Locate Technologies secure new funding before their debt facilities become due?
- Can Stakk, Yojee and FortifAI turn new contracts or product tests into recurring revenue?
Sources
This wrap draws on announcements from 10 companies. For the full story and each verified source, see the company's own article:
ASX:AD1, ASX:ADO, ASX:AIM, ASX:CDA, ASX:DTL, ASX:FTI, ASX:MX1, ASX:NS1, ASX:RMY, ASX:SKK