Revenue fell 16.3% with under a year of cash at current burn rate

The pre-tax and after-tax loss of $14.5m was only 4.9% better than HY24's $15.3m loss, so cost reductions did not keep pace with the revenue decline.

Operating cash outflow improved to $12.5m from $15.0m (16.8% better), and capex stepped down to $0.5m from $0.8m. Cash on hand rose modestly to $21.9m from $20.5m a year earlier, but total equity fell 40.5% to $40.7m as accumulated losses eroded reserves. Gross borrowings of $0.3m were drawn for the first time, though the group remains in a net cash position of $21.6m.

• At a half-year operating cash burn of $12.5m plus $0.5m capex, the implied annualised pre-lease free cash outflow is around $26.0m against $21.9m of cash. On a like-for-like burn rate, available liquidity covers materially less than twelve months unless revenue accelerates, costs fall further, or fresh capital is raised. The release does not quantify a stated runway in the supplied excerpts.
• Revenue trajectory has reversed. HY24 was described in the prior release as a "strong rise" with operating revenue up 50% on the comparable half; HY25 reverses that, down 16.3%. Management attributes this to Medicare uncertainty and a deliberately smaller sales team. This matters because the recovery thesis now rests on assumptions about reimbursement clarity and APAC volume offsetting US weakness, neither of which is quantified in the supplied materials.
• Loss narrowed despite a $2.1m revenue drop, implying cost discipline rather than operating leverage. Without a disclosed gross margin or segment split, it is not possible to separate genuine cost-base reduction from one-off timing. The improvement is real but small relative to the revenue decline, suggesting the cost base is still meaningfully above current revenue.

The HY24 / FY24 shape shows roughly even halves (HY24 was 54.8% of FY24 revenue and 51.6% of FY24 NPAT), so HY25 annualised at $21.9m would imply a full-year revenue print materially below FY24's $23.9m if current run-rate holds.

Management commentary in the supplied excerpts points to operating revenue running 1.4% above 2H24, suggesting sequential stabilisation rather than a return to year-on-year growth. The gap between this and a recovery scenario is what the next disclosure will need to address.

With FCF pre-lease at -$13.0m versus NPAT of -$14.5m (89.7% conversion), the cash result tracks the income statement closely; there is no working-capital tailwind flattering the cash burn, and conversely no obvious receivables build hiding pressure.

Capex of 4.8% of revenue is modest and capex spend declined 32.8% year-on-year, which preserves cash but is also consistent with a company conserving resources rather than investing into growth. Inventories fell 20.3% to $1.3m, a small absolute movement but indicative of tighter operating posture. The 40.5% decline in equity is mechanical – it reflects the accumulated loss working through reserves – but it shrinks the balance-sheet cushion available to absorb future cash burn before further dilution.

This briefing cannot assess the probability of Medicare reimbursement resolution or the company's access to additional equity capital, both of which are central to the going-concern read.