Memphasys has reported record September-quarter invoiced revenue of A$211,000 as its Felix fertility device moves into more international markets. The commercial progress comes alongside A$3.5 million in funding, but the loan still requires shareholder approval for conversion into notes.
- A$211,000 record quarterly invoiced revenue, up 41%
- 10 additional IVF clinics trialling Felix across five European markets
- New distribution agreements span Europe, Vietnam and Thailand
- A$3.5 million Peters Investments loan pending note conversion
- Cash balance of A$3.458 million equates to 2.98 quarters on current burn
Record revenue meets a broader Felix rollout
Memphasys Limited (ASX:MEM) has posted its strongest quarterly commercial result to date, with invoiced revenue rising 41% to A$211,000 in the three months to 30 September. Customer cash receipts also reached a record A$183,000, although the company cautioned that receipts include collections from earlier invoices and should not be treated as September-quarter sales alone.
The figures arrive as Felix, Memphasys’ sperm preparation system for assisted reproduction, moves beyond early evaluation. Ten additional IVF clinics across Germany, Sweden, Finland, Denmark and Poland are now trialling the system, representing an estimated 10,000 assisted reproductive technology cycles a year. Karolinska’s IVF clinic in Stockholm placed its initial order after the quarter ended, commencing a clinical evaluation at a centre that undertakes about 1,100 egg retrievals and 2,000 fresh and frozen embryo transfers annually.
European agreements build the conversion pipeline
Europe remains the main near-term commercial focus. Memphasys signed agreements covering Poland, five Nordic markets, and the Czech Republic, Slovakia and Kazakhstan, with disclosed minimum values of approximately A$350,000, A$869,000 and A$674,000 respectively over their stated terms. Those commitments are not the same as quarterly revenue: they depend on evaluation, training, ordering and performance obligations.
The company has added dedicated European commercial leadership through Dr Arne Schierau, who started as Director, Commercial Operations Europe on 17 September. His remit includes supporting distributors, engaging clinics and helping convert product evaluations into regular cartridge use. The Czech, Slovakian and Kazakh distribution agreement was previously reported as part of this European expansion in the three-market distribution deal, while repeat orders came from existing customers in Italy, the United Kingdom and MENA.
Regulatory approvals open Southeast Asian sales
Regulatory approvals have activated commercial sales in Vietnam, Thailand and Türkiye. In Vietnam, registration triggered a 600-cartridge order from TMSC, taking delivered or ordered cartridges under the existing relationship to 700. In Thailand, IVF Envimed placed an additional order for 100 cartridges and three paid consoles after earlier-than-expected Thai FDA approval. The three-year Thai agreement carries an approximate A$430,500 minimum value, following the early Thai FDA approval.
Türkiye generated an initial sale of 100 cartridges and two consoles using existing ITL inventory, rather than creating an additional Memphasys cartridge order. A separate 300-cartridge ITL order reported in September took first-contract-year orders to 2,100. The distinction matters: market activation and distributor inventory can support future sales, but they do not all translate into immediate manufacturer revenue.
Funding supports scale but carries conversion risk
Memphasys ended the quarter with A$3.458 million in cash, boosted by the A$3.5 million unsecured loan from Peters Investments received on 30 September. The loan is intended to convert into unsecured convertible notes, subject to shareholder approval, with a two-year maturity and interest of 12.5% a year compounded monthly. The proposed conversion price initially stands at A$0.004 a share, subject to reset and capital-reorganisation adjustments.
Reported operating cash outflow was A$1.159 million, including about A$601,000 paid to manufacturing partners for Felix cartridges and consoles and A$165,000 of interest payments. Excluding those two items, the company calculated underlying operating cash outflow at about A$393,000, close to the June quarter’s A$356,000. On the Appendix 4C calculation, cash represented 2.98 quarters of funding at the quarter-end burn rate, though that measure can move sharply as inventory and commercial spending change. The A$3.5 million funding advance therefore improves near-term liquidity without removing the questions around interest, dilution and shareholder approval.
Shelf life and US pathway add optionality
Memphasys has also extended the validated shelf life of Felix cartridges from 18 to 24 months after completing its design and validation program. That gives distributors and clinics more flexibility over stockholding and reduces the risk of expiry as the network expands, although it does not by itself establish demand or recurring usage.
The company continues to pursue a potential US FDA 510(k) pathway after identifying a possible predicate device. Pre-Submission engagement is planned to clarify the evidence and testing requirements, with a formal submission targeted for the first quarter of calendar 2027, subject to regulatory feedback and further work. The pathway remains prospective: FDA acceptance and clearance are not assured. Separately, the company’s cited clinical study found a higher embryo utilisation rate for Felix than density gradient centrifugation, 58.8% versus 49.1% among 103 couples across 10 Monash IVF centres. That result does not establish pregnancy or live-birth outcomes.
Bottom Line?
The next test is whether clinic trials and distributor agreements convert into repeat cartridge revenue quickly enough to outrun the company’s cash burn and financing costs.
Questions in the middle?
- How many of the 10 new clinic trials will become regular Felix users and recurring cartridge customers?
- Will shareholders approve conversion of the A$3.5 million loan into convertible notes, and on what eventual dilution terms?
- What evidence and testing will the FDA require before Memphasys can submit its targeted 510(k) application in Q1 2027?