A$682,000 Operating Cash Outflow Leaves Axtec With 0.58 Quarters of Funding

Axtec Reports Less Than One Quarter of Estimated Funding

Axtec Limited (ASX:AXI) has made operational progress across its property technology platform, but the quarter-end cash position is the more pressing figure for shareholders. The company reported a net operating cash outflow of A$682,000 for the three months to 30 September, leaving A$197,000 in cash and A$200,000 of unused financing facilities. On the company’s calculation, that equates to only 0.58 quarters of available funding at the current operating cash-flow rate.

The cash squeeze sits alongside a A$574,000 net financing inflow during the quarter. Axtec reported A$600,000 of proceeds from convertible debt, A$140,000 in new borrowings and A$166,000 of repayments. Its available funding calculation does not include any future strategic investment or research and development rebate, both of which remain prospective.

Strategic Funding Discussions Carry the Immediate Risk

Axtec said it is in advanced discussions with multiple strategic investors about a capital investment and additional working capital facilities. It also expects to receive a significant R&D rebate during the current quarter. The company said these initiatives should provide sufficient working capital to strengthen its existing facilities, but the filing does not disclose committed investment terms, a timetable for completion or the size of the anticipated rebate.

The company’s main disclosed facility is a A$1 million unsecured loan from Oriental University City Holdings, carrying 10% annual interest and maturing on 30 June 2031. At quarter-end, A$800,000 was drawn and A$200,000 remained available. Related-party payments totalled A$147,000 for the quarter, including non-executive director salaries, superannuation and related-party consulting fees.

MRI Integration Opens a Wider Distribution Channel

Against that funding backdrop, Axtec is building distribution rather than adding loan exposure. Its three-year agreement with MRI Software is now in onboarding and integration, with the company’s four products being connected to MRI’s sales and property management platforms. The arrangement follows the three-year MRI partnership, which was intended to give Axtec access to agencies using MRI systems instead of requiring the company to win those agencies individually.

PaySure’s relationship with InfoTrack also expanded during the quarter. A Verification of Account service went live in September, checking the account name, BSB and account number before payment and generating fee income under an initial two-year term. Axtec said further discussions with InfoTrack are non-binding, including possible broader distribution of PaySure’s payment and finance products and MyHomeVault.

Real Flow Partnership Starts Generating Distribution Revenue

Axtec said the transition of PaySure clients and referral partners to Real Flow was completed at the rate required for Axtec to earn the full A$360,000 equity consideration in Real Flow shares. The company has begun earning distribution revenue from Settlement Advance, Commission Advance and Rental Advance loans, while Real Flow funds the loans and Axtec keeps them off its balance sheet. The capital-light model follows the Real Flow loan-book transition, which involved selling the PaySure loan book and establishing a longer-term distribution relationship.

Several new referral partners were signed during the quarter, mostly generating vendor-paid advertising loans. PaySure also shifted its payment gateway towards bank-to-bank methods including PayID, PayTo, NPP and BPAY ahead of the 1 October card surcharge ban, which Axtec said lowers the cost of each payment.

November Launch Target Adds a Near-Term Execution Test

Axtec and an unnamed licensed payments and settlement platform have signed a binding term sheet to embed PaySure’s vendor-paid advertising finance, settlement advances and commission advances into the partner’s platform. The parties are targeting a first launch in Victoria in November, with a broader rollout to follow. PaySure’s funding partners will fund the loans, meaning Axtec says it carries no credit risk under the arrangement, while revenue will be shared and neither party will pay fixed fees.

Other product work continued, with Axtec IQ deployed to pilot users, MyHomeVault prepared for a new consumer website launch and Proffer discussions progressing with lenders and broker groups. Those initiatives may broaden the platform’s commercial reach, but the next quarterly report will need to show whether that reach is converting into cash quickly enough to bridge the funding gap.