01-Mar-2021:  MX1 - Successful MRFF Funding Award

Australian hi-tech company Micro-X Ltd (ASX:MX1), a leader in cold cathode x-ray technology for health and security markets globally, is pleased to announce that the Australian Stroke Alliance, of which Micro-X is a member, has been advised of an award of funding under the Federal Government’s Medical Research Future Fund ‘Frontier Health Program’ for the development of lightweight stroke diagnostic imaging technology targeted at pre-hospital stroke diagnosis in air and land ambulances.

Key Points

• Australian Stroke Alliance (ASA) awarded MRFF grant – subject to formal contract
• ASA project objective is for patient imaging testing of lightweight brain CT scanner for prehospital stroke diagnosis in air and land ambulances
• Micro-X is the ASA x-ray imaging partner and will receive $8.0M over the life of the project
• Early work to focus on development of the ‘Ring Scanner’ brain CT imager to collect patient image data
• Refinement of image processing algorithms with the Melbourne Brain Centre planned to validate diagnostic capabilities and form basis for product regulatory approvals
• Addressable global market of $25 billion

Overview of MRFF Frontier Health Grant

On Friday 26th February the Federal Health Minister, The Honourable Greg Hunt, announced $100M from the Federal Government’s Medical Research Future Fund (MRFF) ‘Frontier Health Program’ across three projects for the development of new technologies to improve diagnosis and treatment of stroke, epilepsy and lung disease.

Of these three, the MRFF has awarded $40M to the Australian Stroke Alliance for its ‘Stroke Golden Hour’ project proposal to transform pre-hospital stroke care in road and air ambulances. The award, believed to be amongst the largest medical research grants ever to be awarded in Australia, is subject to formal contracting requirements which are expected to be completed in the coming months.

Micro-X was selected to join the Australian Stroke Alliance because its unique cold-cathode x-ray technology offered the potential to miniaturise diagnostic brain CT imaging so that a scanner could become small enough and affordable enough to allow widespread pre-hospital stroke diagnosis and treatment in road ambulances with air ambulances offering unprecedented stroke care in rural and remote regions.

Micro-X’s Role in the ‘Stroke Golden Hour’ programme

In Stage One of the ASA Frontier Health programme, Micro-X successfully completed imaging trials on cadavers with the Melbourne Brain Centre and then started developing cone beam tomographic image reconstruction algorithms. This early work yielded early and promising imaging performance that, with further clinical and technical input, has the potential to approach the current diagnostic standard of care, a conventional x-ray 8-slice helical CT.

Micro-X’s work in this second stage of collaboration with the ASA will focus on four areas:

1. The engineering development and prototype construction of the scanner equipment to meet the operational requirements of the patient, operator and tele-health interfaces in the road and air vehicle environment.
2. Continuing algorithm development and refinement of image processing so that the image quality exceeds the current diagnostic standard of care, initially using cadaver imaging and then using patient image data gathered using the prototype scanner.
3. Vehicle integration and data communications designs based on research of workflows in mobile, point-of-care stroke diagnosis and treatment.
4. The validation of the diagnostic imaging performance of the ‘ring scanner’ against the current imaging standard of care as a pre-cursor to preparing regulatory submissions.

In this program Micro-X plans to build on established relationships and formally subcontract with Fujifilm in Japan, the Johns Hopkins University in Baltimore and the MADA Health Collab Team in Melbourne for key elements of the above project streams. A close collaboration with other ASA members is also planned, particularly the Melbourne Brain Centre at Royal Melbourne Hospital, the Australian Stroke Foundation, ambulance designers and operators and the Royal Flying Doctor Service to ensure the best inputs to every aspect of the design process.

Micro-X’s design work in-house is based on common-use technologies in development for other Micro-X products, particularly the new mini-tube array, image reconstruction software, and compact, fast-switching high voltage generator used on the airport checkpoint security portal. Funding of $8.0M receivable by Micro-X from the ASA will be planned for the first three years of the programme, based on the final contractual arrangements once those have been put in place.

The Micro-X collaboration with the ASA in this MRFF program will position the company for mature pilot systems that can be formally verified and submitted for future regulatory approvals and then rapid commercialisation. The global market for such an in-ambulance CT scanner is estimated at $25B and there is strong incentive for investment in this area; if stroke diagnosis and treatment is delayed patients are at risk of increasing levels of permanent disability which can easily cost healthcare systems up to $150k per patient per year.

--- end of excerpt - click on the link at the top for the full announcement ---

17-Dec-2020:  MX1 - $1.3M Rover contract with Australia Defence Force

Remember - this is a $128m microcap company, so a $1.3M contract is material to them, particularly as it is for their second commercialised product, the Rover - a mobile digital x-ray machine that is designed to be easily wheeled over uneven ground - outdoors.  It's basically one of their DRX Revolution Nano units except all army-green and stronger, tougher, more durable, yet still lightweight for its size.  Here's today's announcement:

MICRO-X SIGNS $1.3M ROVER CONTRACT FOR AUSTRALIAN DEFENCE FORCE

Saab Australia, Prime Contractor for the Australian Army Deployable Hospital, signs at a ceremony in Adelaide

Adelaide, Australia, 17th December 2020: Australian hi-tech company Micro-X Ltd (ASX:MX1) (Micro-X), a leader in cold cathode x-ray technology for health and security markets, is pleased to announce the Company today hosted Saab Australia at its facilities in Adelaide for a formal signing of the supply contract of the Rover mobile x-ray unit for the Australian Defence Force’s Deployable Health Capability Program (JP2060 – Phase 3).

ADF Deployable Health Capability Program and Micro-X contract

Saab Australia signed a contract worth $337M with the Australian Department of Defence in September to deliver and support deployable military and humanitarian hospitals for use in Australia and overseas. Saab has partnered with Aspen Medical, Philips Healthcare Australia & NZ, Broadspectrum and Marshall Land Systems to deliver an integrated, scalable and modular solution to meet the Australian Defence Force’s (ADF) current and future deployable health requirements. This will include the delivery of more than 550 deployable medical modules, complete with critical support infrastructure. Today’s signing at Tonsley was attended by Saab Australia Managing Director Andy Keough, senior managers of Saab Australia, and Senator the Hon David Fawcett.

Micro-X’s Rover, which was specifically designed for use in this Australian Army operational environment, was recognised by Mr Keough during the ceremony as an example of a world-leading technology and capability from Australian industry which the Department of Defence has helped to create and now introduce into service through the Innovation Hub program. The event also gave the attending personnel an opportunity to put the Adelaide-designed and produced Rover unit through its paces and learn how local technology has answered the needs of a challenging operational requirement to improve the healthcare available to those who go in harm’s way.

Under the contract with Saab, Micro-X will supply Rover systems to meet the project delivery schedule with ancillary support equipment and spares totalling $1.3M as well as reusable, ruggedised shipping containers.

Background of Rover

Defence forces around the world share a policy objective to provide soldiers in combat with no less a standard of medical care than they can expect at home. However, the weight of most hospital-grade mobile x-ray units means that, prior to Rover’s CNT technology, only small-animal veterinary x-rays were light enough to be deployed by the military. The ADF’s Joint Health Command first identified in 2015 that Micro-X’s CNT technology could provide the world’s first mobile x-ray unit with full hospital-grade performance and also be light enough to be deployed in an Army medical facility.

Micro-X was awarded a contract from Department of Defence’s Innovation Hub and successfully developed and demonstrated diagnostic quality imaging with the extended power needed for trauma imaging of combat soldiers. From this contract the Rover product was born and the engineering development of the ruggedisation and other features to adapt to the deployed military environment was completed earlier this year with the receipt of United States FDA 510(k) approval.

Micro-X is pleased and proud to have partnered with Fujifilm Australia as supplier of the digital flat panel detectors and imaging software for this product. The lightness and robustness of the Fujifilm D-EVO II detector makes it ideally suited for military use and the extra sensitivity of the Fujifilm ISS detector technology further extends the Rover’s operational performance.

Background of the JP2060 Program

The ADF Deployable Health Capability program (JP2060 – Phase 3) is a turnkey project to deliver and support a transportable health capability able to be utilised both in Australia and overseas both in support of military operations and of humanitarian aid and disaster relief activities. The health facility to be delivered, allows for three roles of healthcare as per the NATO Logistics protocols for medical support: Role 1, Primary; Role 2, Triage (including resuscitation, emergency surgery, labs, pharmacy); and Role 3, Specialist (including specialist surgery, diagnostics and lab). The contract includes supply of physical structures; power, water and waste disposal facilities; systems for generation, storage and distribution of oxygen; and the supply and support of all diagnostic and therapeutic equipment.

Micro-X’s Managing Director, Peter Rowland, commented:

“We are delighted to execute this contract with Saab Australia and excited that our Rover is set to enter operational service with the Australian Defence Force. We’ve had enormous interest in Rover from military forces world-wide because no other product offers such high performance in such a lightweight package. It’s important for us that Rover was born here with the ADF backing Australian technology through their Innovation Hub to improve their operational capability.

Now, Australian Army medical x-ray technology leads the world and this will greatly help our current sales activities in both the US and UK. We also look forward to supporting Saab’s other international sales efforts with deployable hospitals, now led from Australia.”

Saab Australia’s Managing Director, Andy Keough, commented:

“Saab is delighted to be partnering with Micro-X to supply mobile x-ray technology into the nation’s Deployable Health Capability, born from an innovative SME identifying a gap in the market and a partnership with the Department of Defence’s Innovation Hub to commercialise the solution, Micro X’s Rover system is an excellent example of the opportunities for SMEs as we continue to grow our sovereign industry capability.”

--- ends ---

Also - recently - 15-Dec-2020:  MX1 - Jim McDowell rejoins Micro-X Board

Now that Jim McDowell has resigned from his SA Government role (Chief Executive of the Department of Premier and Cabinet working for the South Australian Premier, Steven Marshall) to move back into the private sector as Group CEO of Nova Group, an Adelaide based global provider of technology services and solutions for defence, aerospace and critical infrastructure industries, he is now free to resume his previous director roles and he has already agreed to rejoin the MX1 board. 

Another Adelaide company that Jim used to be a director of is Codan (ASX:CDA), one of my most successful investments - ever - they were up another +10.53% today after putting on +5.11% yesterday on the back of yet another profit/earnings guidance update (another upgrade).  I'd made money on CDA previously, however since buying back into CDA in July 2018 at $2.87 (average price paid over two tranches), they've put on +287%.  They closed at $11.13 today.  I've trimmed the position on a number of occasions, but I still hold a decent position in CDA.  However Codan has never been on my Strawman.com scorecard.  By the time I thought of adding them, they just seemed too expensive, and yet they just kept going up, as really good companies tend to do.

Micro-X however is one I do NOT currently hold, but they ARE on my Strawman.com scorecard.  If I had more capital to invest, MX1 would be up there on my list of companies to add to at least one of my existing real-life portfolios.  There are plenty more I'd LIKE to be holding if I had more funds to invest.  Micro-X is certainly one of those.  I think I just said the same thing twice.  Must be the Jameson... 'Night!

19-Nov-2020:  Micro-X Amended Nano Distribution Agreement

After rising +15.69% yesterday (18-Nov-2020) on their upbeat AGM Presentation and commentary, MX1 was up another +15.25% (to 34cps) today on the back of that announcement (link above) that paves the way for MX1 to sell their DRX Revolution Nano mobile digital x-ray device outside of their previously exclusive deal with US-based Carestream Health.  Carestream will still sell and service the Nanos which are Carestream branded but are manufactured here in Adelaide by Micro-X (MX1), however MX1 are now free to pursue other distributor deals in other regions. 

The Nano is the first of two products that MX1 have successfully commercialised, but they have a number of other products in various stages of development, all using their proprietary cold cathode, carbon nanotube (CNT) emitter technology.  The electronic control of emitters with this technology enables X-ray products with significant reduction in size, weight and power requirements, enabling greater mobility and ease of use in existing X-ray markets and a range of new and unique security and defence applications.

Micro-X has two mobile digital medical X-ray systems being sold commercially for diagnostic healthcare applications and Micro-X medical products are now in operation in 14 countries around the world.

Micro-X has a portfolio of innovative products in development, including the MBI for imaging Improvised Explosive Devices in security, defence and counter-terrorism applications; a next-generation self-service X-Ray Airport Checkpoint Portal with an integrated body scanner; and a lightweight brain CT imager for early stroke diagnosis in ambulances.

Micro-X has its core R&D, engineering and production capability in Adelaide, Australia with a fully in-sourced CNT tube manufacturing line and approximately 95% Australian locally manufactured content.

[I do not currently hold MX1 shares, but they are on my Strawman.com scorecard, and I would own them if I had more capital to invest.]

They held their AGM yesterday (18-Nov-2020).  Here are two downloads from that AGM:

Micro-X 2020 AGM CEO Presentation

Micro-X 2020 AGM Chairman's Address

I have had concerns over the past 18 months that Micro-X had/have struggled with some aspects of being a listed company, as evidenced by the number of times they had to go to court to get a judgement in their favour after they failed to lodge something on time with the ASX.  Each time they called a trading halt, sometimes leading to a multi-day trading suspension.  They also had a dispute pending regarding the origins of the tech that their devices are based on.  That dispute is now settled as far as I understand it.  They also had purchased shares in a US-based company that supplied them with their CNT's (Carbon Nanotubes), and then sold those shares, and it was not immediately apparent what their end-game was - at that time.  They have now managed to bring their carbon nanotube manufacturing in-house, so they no longer rely on that US-based supplier.  Things became clearer.  They still seem to struggle to update their website regularly.  The last ASX announcement they have uploaded to their website is from the 4th November, and the last company presentation listed there is their 2019 AGM Presso.  As at midnight at the end of Thursday 19-Nov-2020 anyway...

I think MX1 are looking like a company I could invest in again now, however they've had a good run recently, and I don't have any spare capital lying around at this point, and not much in the way of other positions that I'm happy to sell at current prices to buy MX1, so - for now - they're just on my watchlist.  Worth watching though, for sure!

22-Oct-2020:  Micro-X Quarterly Cash Flow and Activities Statement

Highlights for the Quarter

• Customer receipts for the Quarter of $1.9m
• First sales of Rover - $1.4m for Pacific island countries facilitated by World Health Organisation
• Submission for MRFF funding of Brain Tomography project for ambulance stroke diagnosis
• Development work on-track for MBI image testing and in-house high-power generator
• Key hires to strengthen strategic sales marketing capabilities
• Closing cash balance of $15.5m

--- click on the link above for more ---

[I do not currently hold MX1 shares, but they are on my Strawman.com scorecard.]

30-Sep-2020:  Micro-X Market update - First Sale of Rover

FIRST $1.4M CONTRACT FOR ROVER LAUNCHES MICRO-X SECOND PRODUCT

World Health Organisation deal for Rover into Pacific Island Nations

Adelaide, Australia, 30th September 2020: Australian hi-tech company Micro-X Ltd (ASX:MX1), a leader in cold cathode x-ray technology for health and security markets globally, is pleased to announce that today it has signed its first contract for sales of Micro-X’s second product, the Rover.

Key Points

• $1.4M contract facilitated by World Health Organisation for Rover X-ray units

• Delivery to Governments of a number of Pacific island nations

• Extended sales strategy for Rover – where rugged and expanded mobility features are attractive

Commercialisation of the Rover

Since FDA clearance on 20 July 2020, Micro-X has been focussing most of its sales efforts on securing Rover business with its target military customers in the Australian, US and UK armed forces. In addition, the Micro-X sales team has been exploring other deployable applications where the rugged and independent operational capabilities of the Rover offer practical customer benefits. This agreement for sales of Rover units totalling $1.4 million has been enabled by the World Health Organisation and demonstrates the attractiveness of Rover’s flexibility and extreme mobility across a broad range of operational scenarios. Deliveries, via an in-country agent, are destined for the Governments of a number of Pacific Island nations and are due to be made from Adelaide in the next 4 weeks.

This marks a first success for the Company’s new direct marketing strategy for Rover which enables the Company to move up the value-chain compared to our earlier OEM business model.

--- click on the link above for the rest of this announcement ---

28-Aug-2020:  Appendix 4E and 2020 Annual Financial Report

Big uplift in revenue this year from MX1, but still not profitable.  Early stage, but showing promise.  No more trading suspensions in recent months either, so they seem to have finally gotten their heads around the continuous disclosure and reporting requirements of being a listed company (at last).  I don't currently hold MX1 shares, but I have held them in the past, and will likely do so again.  They have good IP in nano-technology which they are applying to digital x-ray machines of various types.  Plenty of upside if they execute well.  They are on my Strawman.com scorecard.  Another good little Adelaide company.  Codan started out like that once, and look at them now!  I hold Codan (CDA) shares!

22-7-2020:  Quarterly Activities and Cashflow Report - Appendix 4C

Highlights for the Quarter

• FDA 510(k) Clearance of the Rover received in July 2020 - commercially available in the United States
• $2.1m of Nano units built and shipped to customers during the Quarter
• Significant increase in Nano production and inventory to meet further COVID-19 demand
• Removed backlog of Nano orders – now able to meet < 4 week [less than 4 weeks] delivery times
• Nano Orders of $0.2m for July to date
• Submission for $14.6m of funding to develop Stroke Diagnostic Imaging technology
• $15m Capital raise completed – including new institutional investors
• Closing cash balance of $18.3m, expected to fund the company into 2022.

[I do not hold MX1 shares currently, but they're on my Strawman.com scorecard.  I have held them before and they're often good for a trade when they get sold right down on no news, because news is never too far away.  However, they raise capital too often for my liking.]

20-7-2020:  Micro-X Receives Rover FDA 510(k) Approval

‘ROVER’ MOBILE MEDICAL X-RAY RECEIVES US FDA 510(K) CLEARANCE

Regulatory clearance of the Rover in only 5 weeks - Micro-X’s second commercial product for the US market.

Adelaide, Australia, 20th July 2020: Australian hi-tech company Micro-X Ltd (ASX:MX1) a leader in cold cathode x-ray technology for health and security markets globally, is pleased to announce it has received 510(k) clearance from the United States Food and Drug Administration (FDA) for its ‘Rover’ mobile X-ray product which is designed for deployed military medical facilities.

--- click on link above for more ---

10-June-2020:  Micro-X Market Update - Submission of Rover FDA 510 (k) 

01-Jun-2020:  Market update - Micro-X Rover Testing Complete

29-May-2020:  Micro-X - Nano shipment and reduction in backlog

Key Points:

• May 2020 - $0.5m of Nano units built, shipped and invoiced
• $2.2m Nano built, shipped and invoiced since January 2020
• Major reduction in backlog of existing orders to under $1.0 million
• New Order delivery time now less than 4 weeks – required for COVID-19 customers 

Since 1 May 2020, $0.5 million of Nano units have been shipped globally to countries in Europe, North America, and Asia as well as domestically. This has reduced the backlog of existing orders for the Nano to less than $1.0 million which will all be delivered in the month of June. The total Nano units shipped and invoiced since January 2020 is now $2.2 million.

As previously announced, COVID-19 has significantly changed the mobile X-ray market across the world with delivery times required to be less than 4 weeks to meet the urgent need for imaging of infected patients. This demand has been driven largely by government health agencies using emergency procurement processes different from the normal purchasing or tendering cycles of 8-12 week delivery.

In order to ramp up production and reduce delivery times, Micro-X has invested significantly in inventory, capex and additional resources supported by funds from the recent $15.0 million Placement and Entitlement Offer.  With delivery times for new orders now at 4 weeks or less, this is expected to increase the potential demand for new Purchase Orders of the Nano.

Micro-X’s Managing Director, Peter Rowland, commented:

“The team at Micro-X  has worked tremendously hard to reach our goal of reducing the backlog of existing orders and to enable us to offer delivery times for future orders of less than 4 weeks. We believe this will be a key factor in maintaining the momentum of growth in new Nano purchase orders to support health care facilitates internationally in their response to COVID-19.”

--- ends ---

13-May-2020:  Micro-X Market Update Nano Production Increasing

MARKET UPDATE - NANO PRODUCTION & DELIVERIES RAMPING UP  

Progressing on all three strategies for capital raising with Nano production and inventory being scaled  

Adelaide, Australia, 13th May 2020: Australian hi-tech company Micro-X Ltd (ASX:MX1), a leader in cold cathode x-ray technology for health and security markets globally, provides the following Market Update on progress of production and shipping of the Carestream DRX Revolution Nano (the Nano).

Key Points

• COVID-19 continuing to drive strong global demand for mobile x-ray with short delivery times critical for new orders
• Ramp up in Nano production and inventory well advanced following successful $15.0M Offer
• April 2020 - $0.5m of Nano units shipped.  Additional $1.5m of Nano units in production of which $0.5m are already substantially complete
• Prioritising rapid reduction in backlog of existing orders and shortening delivery for new orders

In the month of April 2020, $0.5 million of Nano units from existing purchase orders were completed and shipped to the end customers.  In addition, a further $1.5 million of Nano units are at various stages of production with $0.5 million of these already substantially completed.  The remaining components are now arriving which will enable these Nano partially and substantially complete units to be completed, tested and shipped this Quarter.  Once Nano units are completed and shipped they are invoiced and treated as revenue for Micro-X.

Additionally, following the completion of the $15.0 million offer (the Offer), the ramp up strategy for Nano production is being implemented on an urgent basis.  This ramp up includes $0.6 million in capital equipment which has now been largely ordered and is expected for delivery this Quarter.  There is also an additional investment of $3.4 million in inventory in the form of components and once built, semi complete or complete Nano units.  This ordering has taken place and components will arrive progressively this Quarter.

In total since January 2020, $1.7 million of Nano units have been built, shipped and invoiced. 
 
Attached is a short presentation illustrating the activity and recent changes in manufacturing and production.  [click on link above to view the presentation]
 
Micro-X’s Managing Director, Peter Rowland, commented: “We set out to capture COVID-19 demand for our Nano when we raised funds and with the Placement component completed 2 weeks ago we have been working very hard on this initiative.  I am pleased to report that we’ve been successful in ramping Nano production with the rate of units being built and shipped increasing rapidly.  We have worked through some supply chain challenges due to recent global trade disruption and above all else our priority is to reduce our backlog of existing orders and therefore the delivery times for future orders.” 

--- click on link above for more ---

17-Apr-2020:  Micro-X - $15M Placement & Underwritten Entitlement Offer

Non Renounceable Entitlement Offer Prospectus

Australian high-tech company Micro-X Ltd (MX1), a leader in cold cathode x-ray technology for health and security markets globally, is pleased to announce that it has received funding commitments totalling approximately $15.0 million, being a Placement of $8.75 million and a fully underwritten Entitlement Offer of approximately $6.25 million at 14 cents per share.

Key Points

• $8.75m of commitments received for a Placement to sophisticated and professional investors
• $6.25m Non-Renounceable Entitlement Offer on a 1 for 5.6 basis - fully underwritten
• Funds from the Offers will be used to accelerate Nano scale up in response to COVID-19 demand, accelerate commercialisation of Rover product including high power generator and add funding runway
• $15m funding from Offers plus $8.1m cash at 31 March 2020 provides funding runway into 2022
• New institutional investors to join the register
• Prospectus for the Placement and Entitlement Offer to be lodged today.

Purpose of the Offers

The Company intends to use the proceeds of the Offers to fund key growth strategies, including ramping up of Nano production in response to COVID-19 driven demand and positioning the Company to capture as many Nano sales as possible.  The Company will also accelerate the commercialisation of the Rover product for the military market with an FDA filing and first sales targeted in 2020.  The planned high power generator project will also be accelerated to enable the high powered Rover product from 2021.  The detailed Use of Funds is set out below:

USE OF FUNDS – PLACEMENT + ENTITLEMENT OFFER  

• Nano - Scale up & inventory:  $4.00m
• Rover - High power generator:  $3.50m
• Rover - Regulatory & Commercial launch:  $1.00m
• Mobile Backscatter Imager - Development:  $1.50m
• Commercialisation & Working Capital:  $4.00m
• Costs associated with Placement & Entitlement Offer:  $1.00m
• Total:  $15.0m 

... click on links above for more...

I do hold MX1 shares, but I bought them at 12 cps most recently, and at lower prices prior to that, so don't think I'll be topping up at 14c (won't be exercising my entitlement) at this stage.  I only have a small position, because this is a very small company that has experienced some regulatory issues over the past couple of years, in terms of sticking to all of the ASX listing rules.  I'm hoping that's behind them now that sales of their first device, the DRX Revolution Nano (mobile digital x-ray device), have taken off and they can afford to put on more staff (including hopefully someone who can better monitor their compliance obligations).  It appears to have been mostly oversights rather than poor behaviour but the associated trading suspensions and court costs incurred by the company have been annoying and a distraction for management as well.  At least MX1 management don't seem to have an axe to grind with the ASX, like ANO and ISX seem to have. Anyway, I still consider MX1 to be at the higher end of the risk spectrum, so I keep my position relatively small. I also often sell out of them completley when the share price gets a little rediculous (on the high side) and then buy back in when the hype dies down again.  If you have a gander at their 3-year chart, you can see that the overall trend has been negative but that within that there has been a lot of volatility and chances to profit from that volatility.  I think that they may have turned the corner now, in terms of finally having a product that is actually selling and bringing in some revenue for them, and COVID-19 has provided them with a handy short-term tailwind actually (as their device is used to help diagnose/treat coronavirus patients via chest x-rays) but they're still not profitable.  Too many irons in the fire.  Their time will come.  Hopefully.  But still high risk at this point. 

08-Apr-2020:  Quarterly Activities & Cash Flow Report

That report, combined with the Business Update ("Major Nano Adoption [with] Over $1M [of] New Australian Orders") they released after the market closed yesterday afternoon has resulted in a +32% rise in MX1's SP in the first half hour of trading today.  Nano-cap company whose products are based on Nano Technology.  I hold MX1.

07-Apr-2020:  Major Nano Adoption Over $1M New Australian Orders

That announcement was not added until after 4pm this afternoon, but MX1 had already risen +12% from 12.5 cps to 14 cps today.  I would expect some more of that tomorrow on the back of this announcement.  These Australian orders are on the back of the overseas orders that they've previously reported as the DRX Revolution Nano mobile fully-digital x-ray device that incorporates their cold cathode x-ray tech (carbon nanotube technology) is being used in the fight against COVID-19 to x-ray patients' lungs.

Further reading:  https://www.carestream.com/blog/2019/01/22/carbon-nanotube-technology-in-medical-imaging/

26-Mar-2020:  MARKET UPDATE – INCREASE IN NANO PRODUCTION ON RISING GLOBAL DEMAND

Adelaide, Australia, 26th March 2020:  Australian hi-tech company Micro-X Ltd (ASX:MX1), a leader in cold cathode X-ray technology for health and security markets globally, provides the following Market Update of a major scale up in production of the Carestream DRX Revolution Nano (the Nano).

Since last updating the market the Company has seen further increased demand for Carestream’s Nano product to meet the rapidly growing global need for diagnostic X-ray imaging associated with the COVID-19 pandemic.  The Board of Micro-X has today approved a strategic decision to position the Company for these changed market conditions by scaling up the capacity and readiness of the Nano production line.  This is to ensure Micro-X can meet the burst-order volumes and reduced delivery time requirements which characterise this new global purchasing trend.  

Key Points:

• Additional $0.6M Nano purchase orders – total orders this Quarter now $2.4M
• Changing market conditions - sustained, major increase in demand for mobile x-ray units
• Meeting high volumes with < 4 weeks delivery times now key to securing Nano orders
• Nano production peak capacity scaling up to 2 units per day
• Cost benefits with higher production volumes and reduced cycle times
• Supply chain secured with staged investment in inventory and finished goods
• Small CapEx investment in equipment for increased tube manufacture throughput
• USD strength against AUD increases customer receipts and overall gross margins
• Prudent cash management in all other areas of the business to manage funding runway

[click on link above for more]

I had questions whether MX1 would survive - a couple of months ago - but COVID-19 appears to be providing them with a useful tailwind - and much-needed revenue.  They are looking rediculously cheap now at around 10c per share.  However, remember that they have never posted a profit.  They are a young company with some good IP, some great ideas, a number of products in various development stages - but only one product that is actually selling - the Nano (as detailed above).  They're flying right now, but things can still go wrong for them when the current situation normalises.  MX1 have a history of regulatory stuff-ups in terms of breaking the ASX listing rules (apparently unintentionally) and then having to call trading halts and get court orders to allow them to file various forms with the ASX later than what the ASX listing rules allow.  The court orders have so far gone in their favour and have removed the option that the ASX might suspend them from trading for breaching their rules, but the risk remains.  In my view, they weren't entirely prepared for life as a listed public company, they didn't hire someone with the necessary compliance experience to look after that side of the business, and they've been primarily concentrating on product development.  Clearly their compliance has suffered as a result.  Hopefully that is all behind them now.  It's probably cheaper to employ an experienced and competent compliance manager than to keep going to court as they have been to keep the ASX off their backs.

So - what I'm saying is that there are risks, but I think those risks are diminishing with each of these recent positive updates.  I think Micro-X are getting their sh!t together finally, and I think they are going to be trading at significantly higher levels in 12 months and 24 months time.  That's why I've been adding them to my scorecard.

05-March-2020:  Market Update

Another month, another positive market update from MX1, making it two months in a row.  Prior to that, the news was mostly negative.  However, they're seeing increased orders from Carestream Health for their DRX Revolution Nano (mobile digital X-ray machine), which they believe are due to the Nano being used in the fight against Covid-19:

Excerpts from the update:

Australian hi-tech company Micro-X Ltd (ASX:MX1) (Micro-X or the Company), a leader in cold cathode x-ray technology for the health and security markets globally, provides the following Market Update in relation to additional sales of the Carestream DRX Revolution Nano (the Nano) secured since 14 February 2020 by the Company’s distributor Carestream Health, Inc.  Additional $1.0 million in Sales Orders for Nano Following the Market Update provided on 13 February 2020, Micro-X has now received additional purchase orders for Nano units totalling approximately A$1.0 million, bringing the total sales orders to $1.8 million for the current Quarter.  The majority of these sales orders will be recognised as revenue this Quarter and the balance in the June 2020 Quarter.  These $1.8 million of orders demonstrate strong growth and uptake as compared to $0.2M sales for the December 2019 Quarter and $1.9M sales for the whole of FY2019.  These additional purchase orders are for delivery to Asia and Europe.

As with the previous purchase orders there is a requirement for urgent delivery within a 4 week time frame.  The orders do not specify the end customer use although it is understood that due to the size and urgency of the orders, some of these Nano units are to be deployed in connection with the ongoing COVID-19 (formerly 2019-nCoV or Coronavirus) epidemic.  

Micro-X continues to work with its supply chain partners to maximise its ability to respond to any future such requirements to deliver Nano units in a very short time frame.  While the standard lead time for the delivery of a Nano is between 8-12 weeks from order date, Micro-X has been able to deliver its recent February orders within a time frame of approximately 4 weeks from order date. 

As previously announced, early-stage diagnosis of Coronavirus is by a blood test to confirm the infectious agent, and a chest x-ray is used as an essential part of diagnosis of the development and progression of the severity of the illness. Like with pneumonia, a chest x-ray is used to detect fluid in the lungs, particularly with patients presenting with severe acute respiratory distress.   The World Health Organisation has defined a criterion for diagnostic progression of the Coronavirus infection from ‘Confirmed Case’ to ‘Severe Illness’ as a chest x-ray with multi-lobar infiltrates or pulmonary infiltration which has progressed more than 50% within 24-48 hours.

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MX1 is a tiny company, and while the dollar value of these orders might seem almost insignificant (under $2m), it's a big deal for a company this small, particularly when the Nano is their only fully-commercialised (selling) product to date.  While the Covid-19 coronavirus is clearly a human tragedy, and is creating huge volatility in global markets, Micro-X (MX1) might be one of those very few companies who actually benefit from this particular tragedy.

13-Feb-2020:  Market Update

MX1 is up around +58% on the back of that today (at 1:53pm Sydney time), and have been higher today (+74% at 27 cps, now 24.5 cps, closed yesterday at 15.5 cps and were as low as 13 cps 9 days ago - Feb 4th).  It seems that Micro-X's only currently selling device, the Nano mobile digital x-ray machine, is going to be used by some governments in the fight against the new coronavirus (for chest x-rays to determine fluid levels in the lungs).  

31-Jan-2020:  Quarterly Cash Flow & Business Update

Not well received by the market, with MX1 down -11.76% on the day (from 17cps to 15cps).  They believe they now have enough cash to get through to 2021 but their sales receipts were once again below expectations, being only $0.784 million for the Dec 2019 Quarter (Dec 2018 Quarter: $0.278 million).  Their costs were over $4m.  If it wasn't for another capital raising during the quarter as well as $3.153m in government grants and tax incentives, they would have gone broke.  Unfortunately, for a company that shows as much promise as they do (a lot!), their history has been littered with capital raisings (many of which, like this most recent one, did not involve ordinary retail shareholders) and regulatory stuff-ups.  They have had their shares suspended from trading on numerous occasions due to "oversights" that have resulted in them disobeying the ASX listing rules, and some of those have resulted in MX1 having to obtain relief via the courts.  They have great tech, and quite possibly a very bright future, but they have been underfunded and probably understaffed with regard to administrative personnel who fully understand the requirements of being an ASX-listed company in Australia.  It's been a rocky road indeed for MX1 shareholders.  I tend to trade them these days.  Buy low, sell high, and wait for them to stuff up again, rinse and repeat.  They are trading at 15c now, half a cent off their 12-month low of 14.5c, and they were trading at 33.5c in October (less than 4 months ago).  They look like good buying here as they always seem to find a way to stay in business, despite their obvious occasional incompetencies, and they will probably one day get their sh!t together.  However, they are NOT without risk.  They are not yet profitable, and based on past experience predicting when they WILL be profitable is a hard thing to do.

31 July 2019:  Micro-X (MX1) June 2019 Quarterly Cash Flow & Business Update