Epiminder Limited (ASX:EPI) Reports $65.1 Million Cash and a $10.4 Million Quarterly Outflow

Sonal Goyal

28 October 2026 01:09 PM AEDT

Epiminder Limited (ASX:EPI) Reports $65.1 Million Cash and a $10.4 Million Quarterly Outflow

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Key Highlights

Epiminder held $65.1 million in cash at 30 September 2026 with no borrowings.
Net operating cash outflow for Q1 FY27 was $10.4 million, compared with $8.3 million in Q4 FY26 and $5.7 million in Q3 FY26.
Research and development payments reached $5.7 million, while staff costs of $3.8 million included bonuses relating to FY26 performance.
The company paid $3.528 million to its largest shareholder, Cochlear Ltd, to support next-generation device research.

Epiminder Limited (ASX:EPI), the medical device company behind the Minder implantable continuous EEG monitoring system for epilepsy, has lodged its Appendix 4C cash flow report for the quarter ended 30 September 2026, the first quarter of FY27. Cash and cash equivalents stood at $65.1 million at quarter end, with no borrowings, after net operating cash outflows of $10.4 million. The company said the balance is sufficient to fund the DETECT study and development of the next-generation Minder device well into 2028.

Where the $10.4 Million Went

Total operating cash costs for the quarter came to $10.9 million, offset by $0.5 million of interest received, leaving the net operating outflow at $10.4 million. Research and development was the largest line at $5.7 million, up from $4.6 million in Q4 FY26 and $3.8 million in Q3 FY26. Staff costs were $3.8 million, compared with $2.3 million and $2.1 million in the two preceding quarters.

Epiminder noted that staff costs in Q1 FY27 include payment of bonuses relating to FY26 performance. Administration, corporate and marketing costs were $1.6 million, against $1.4 million in Q4 FY26 and $1.2 million in Q3 FY26. Other items, including GST, produced a net inflow of $0.2 million.

Across the three quarters shown, net operating outflow rose from $5.7 million to $8.3 million and then to $10.4 million. The cash flow statement records $5.65 million for research and development, $3.85 million for staff and $1.514 million for administration and corporate costs, with interest received of $454,000 and other receipts of $210,000.

Cash Balance and Movements

Cash and cash equivalents opened the quarter at $75.794 million. Operating activities used $10.477 million and equipment purchases used $5,000, while financing activities were nil, with no equity or debt raised during the period. An adverse exchange rate movement of $168,000 brought the closing balance to $65.144 million. The entire closing figure is held as bank balances, against $75.794 million at the end of June.

The use of funds update tied to the prospectus dated 10 November 2025 shows total utilisation of $68.8 million to date against $133.9 million of total sources, which comprise $8.9 million of cash on hand at 30 June 2025 and $125.0 million of IPO proceeds. Of the prospectus allocations, $3.8 million has been applied to the DETECT demonstration program and study, $15.7 million to research and development, primarily the next-generation Minder system, and $18.2 million to employee costs, overheads and working capital. Sales and marketing has used $0.3 million, and historical R&D claims have used $15.8 million of their $20.0 million allocation. Interest received over the period totals $2.0 million.

Related Party Payments and Cochlear

Under Listing Rule 4.7C.3, Epiminder disclosed that $106,028 was paid to directors during the quarter in salary, superannuation and directors' fees. The company also paid $3.528 million to Cochlear Ltd (ASX:COH), its largest shareholder, to support research and development of the next-generation device. Epiminder said those activities are controlled by its management.

Minder was developed through a collaboration involving Epiminder, Professor Mark Cook, the Bionics Institute, St Vincent's Hospital Melbourne, the University of Melbourne and Cochlear, and is described as the first FDA-authorised implantable continuous EEG monitoring system. The company is headquartered in Melbourne with operations in the United States.

Closing Position for the Quarter

Epiminder ended Q1 FY27 with $65.1 million in cash, no borrowings and a net operating outflow of $10.4 million, higher than in each of the two prior quarters because of increased research spending and FY26 bonus payments. An operating update is scheduled for the company's annual general meeting on 30 October 2026.

FAQs

Q: How much cash did Epiminder hold at 30 September 2026?

A: Epiminder held $65.1 million in cash and cash equivalents and reported no borrowings.

Q: What was the net operating cash outflow in Q1 FY27?

A: The net operating outflow was $10.4 million, compared with $8.3 million in Q4 FY26 and $5.7 million in Q3 FY26.

Q: Why were staff costs higher in the quarter?

A: Staff costs rose to $3.8 million because they include bonuses relating to FY26 performance.

Q: What payment was made to Cochlear?

A: Epiminder paid $3.528 million to Cochlear Ltd, its largest shareholder, to support next-generation device research and development controlled by Epiminder management.

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