Convertible Note Maturities Loom as Visionflex Faces 2.33 Quarters Cash Runway

Quarterly Cash Flow Overview

Visionflex Group Limited has disclosed its quarterly cash flow report for the period ending 31 March 2025, revealing a net cash outflow from operating activities of AUD 1.34 million. This cash burn reflects ongoing expenditures across research and development, manufacturing, staff wages, and administration. Despite the outflow, the company closed the quarter with AUD 1.084 million in cash and cash equivalents, underscoring a cautious but stable liquidity position.

Funding Facilities and Convertible Notes

Central to Visionflex’s liquidity management are two convertible note facilities with cornerstone investors John Plummer and Adcock Private Equity. These facilities, recently revised in February 2025, reduced the total available limits to AUD 2.5 million and AUD 1.5 million respectively, while extending the availability period to 28 February 2026. As of the quarter end, AUD 1.46 million had been drawn from the Plummer facility and AUD 0.5 million from the Adcock facility, leaving a combined AUD 2.04 million in undrawn credit standby arrangements.

The convertible notes carry an interest rate of 11.6% per annum, comprising the Reserve Bank of Australia’s cash rate plus a 7.5% margin, with interest payable quarterly. Notably, the agreements include provisions for conversion into equity, a feature that could influence Visionflex’s capital structure if exercised. The company also retains flexibility to repay or reduce these facilities at any time.

Liquidity Runway and Operational Outlook

Combining cash on hand and undrawn financing, Visionflex reports total available funding of AUD 3.124 million. Based on the current quarterly cash burn, this equates to an estimated 2.33 quarters of operational runway. The company has not indicated plans for additional capital raising in the near term, suggesting confidence in managing costs and funding through existing facilities.

However, the reliance on convertible notes with relatively high interest rates and impending repayment or conversion dates introduces refinancing considerations. The company’s ability to deliver consecutive cash flow positive quarters could enable renegotiation of interest terms, potentially easing financial pressure.

Strategic Implications

Visionflex’s cash flow report paints a picture of a company balancing ongoing investment in its technology and operations against the realities of funding constraints. The extended convertible note facilities provide breathing room, but the clock is ticking on the repayment or conversion deadlines. Investors will be watching closely for signs of improved cash flow performance or strategic moves to secure longer-term financing.