Micro-X Faces Commercialisation and Regulatory Risks Despite Strategic Pivot
Micro-X Limited reported a $13.9 million loss for FY2025 as it pivots towards medical imaging, securing a landmark supply agreement with a major US healthcare provider for its Rover Plus mobile X-ray system.
- Reported net loss of $13.9 million for FY2025
- Strategic shift to focus on medical imaging products
- Signed first supply agreement with a major US healthcare provider
- Discontinued Argus security product, achieving $0.7M annual cost savings
- Raised approximately $6.4 million to support development and commercialisation
Strategic Refocus on Medical Imaging
Micro-X Limited, a developer of carbon nanotube-based X-ray technology, reported a net loss of $13.895 million for the financial year ended 30 June 2025. This result reflects a deliberate strategic pivot announced in January 2025, where the company shifted its focus away from security products towards medical imaging solutions. The discontinuation of the Argus X-ray camera for security markets, while incurring a $1.453 million impairment charge, is expected to deliver annual cost savings of approximately $0.7 million.
Breakthrough US Supply Agreement
Highlighting the success of this strategic reset, Micro-X secured a significant supply agreement in July 2025 with one of the largest healthcare providers in the United States. This customer operates over 700 healthcare facilities nationwide, including hospitals and outpatient centers. The agreement follows an extensive two-stage trial and evaluation process of the Rover Plus mobile X-ray system, marking Micro-X's first major commercial foothold in the US healthcare market.
Robust Contracted Development Income
The company’s contracted project income rose to $10.463 million, supported by government and partner funding. Key contributors include $4.57 million from the U.S. Department of Homeland Security for airport checkpoint development, $3.19 million from the Advanced Research Projects Agency for Health (ARPA-H) for the Full Body CT scanner development, and $1.9 million from Billion Prima under a commercialisation partnership. These contracts underpin ongoing development of innovative medical imaging products such as the Head CT scanner for mobile stroke diagnosis and the Full Body CT scanner for portable applications.
Capital Raising and Financial Position
To support its commercialisation and development activities, Micro-X raised approximately $6.4 million during the year through placements and entitlement offers, including a strategic investment from Billion Prima. Despite the net loss, the company maintains a stable cash position of $3.24 million and holds $4.1 million in Mobile DR inventory, which could generate additional cash upon sales. The company’s net assets decreased to $7.55 million, reflecting the increased investment in R&D and strategic restructuring.
Risks and Outlook
Micro-X acknowledges several material risks including the challenges of early-stage commercialisation, regulatory approvals for medical devices, competition from larger players, and the need to secure strategic partnerships for its security technology. The company is actively pursuing partnerships to monetise its security assets while focusing on scaling sales of its medical imaging products. The coming year will be critical as Micro-X advances clinical trials for its Head CT scanner and prototype development for the Full Body CT scanner, alongside expanding its US market presence.
Bottom Line?
Micro-X’s strategic pivot and US supply deal mark a pivotal step, but successful commercialisation and regulatory approvals remain key hurdles ahead.
Questions in the middle?
- How quickly will Micro-X convert its US supply agreement into substantial sales revenue?
- What is the timeline and likelihood for regulatory approvals of the Head CT and Full Body CT scanners?
- Can Micro-X secure strategic partnerships to monetise its security technologies and fund ongoing development?
