Singular Health Group (ASX:SHG) targets a US$2.55 million Florida Medicaid imaging role, but the memorandum is non-binding

Aditi Sarkar

28 October 2026 04:12 PM AEDT

Singular Health Group (ASX:SHG) targets a US$2.55 million Florida Medicaid imaging role, but the memorandum is non-binding

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Highlights

Singular's proposed share of the Florida Medicaid Imaging Repository is about US$2.55 million (A$3.5 million) of a US$3.0 million appropriation.
The memorandum with Florida International University is non-binding, though both parties must sign definitive agreements covering its minimum terms.
Cash fell to A$8.14 million from A$10.07 million at 30 June 2026, and the company has no debt.
The largest customer, PNS, runs 1,000 3DICOM MD licences, and its agreement is due for renewal by 31 December 2026.

Could a Florida Medicaid imaging repository become Singular Health Group's (ASX:SHG) next source of revenue? The company thinks the opportunity is real enough to be working towards definitive agreements with Florida International University. Its September 2026 quarter also brought a closely watched customer renewal and a falling cash balance.

The Florida repository

Singular's proposed share is about US$2.55 million (A$3.5 million) of a US$3.0 million State of Florida appropriation. The memorandum of understanding is non-binding, except that the parties must enter definitive agreements on the minimum terms it sets out.

Payments under the proposal are tied to milestones, with the full amount payable by 30 June 2027, subject to delivery. The final phase is a clinical and economic validation pilot, and the State of Florida will own the underlying data. Singular Health Group said it is working towards those agreements and expects the repository to be recognised as revenue in FY27, but that depends on the definitive agreements being signed. The estimated funding runway excludes any receipts from the project.

Customers and operations

Customer receipts in the quarter were only A$10,000, because the US$800,000 payment from largest customer PNS was received in the previous financial year. PNS has 1,000 licences of the company's 3DICOM MD software deployed at US$800 per physician per year. That agreement is due for renewal by 31 December 2026, and renewal and expansion discussions are continuing.

Life Radiology in Florida is using the 3DICOM Gateway and Patient products. Miami-Dade County Public Schools is running a paid 3DICOM EDU pilot across five technical colleges for up to 150 users, delivered with CG1 Solutions. The US commercial pipeline, including Triple-S, remains at the discussion or pilot stage under a partner-led approach. The ImageIQ product is still in development and validation and has not been commercially released.

The company passed an MDSAP surveillance audit, is progressing HITRUST preparations and was granted an Australian patent for its Medical File Transfer System on 1 October 2026.

Cash flow and funding

Cash fell to A$8.14 million from A$10.07 million at 30 June 2026, and the company has no debt. Net operating cash outflow was A$1.918 million, comprising staff costs of A$1.020 million, administration and corporate costs of A$0.445 million, research and development of A$0.346 million, product and manufacturing costs of A$0.221 million and advertising and marketing of A$0.064 million. Interest income was A$168,000.

Investing outflows were A$0.258 million, mainly A$0.249 million to acquire a controlling 60 per cent stake in Singular Imaging Solutions USA LLC. Share option exercises raised A$0.257 million. The company estimated a runway of about 4.25 quarters based on the September quarter's operating outflow.

A research and development tax incentive of A$0.47 million remains outstanding. The report's highlights say it is expected in the coming month, whereas the body points to the December 2026 quarter, so the timing is unclear. Related-party payments were A$132,000, comprising A$85,000 to the managing director, including a KPI bonus, and A$47,000 in non-executive director fees.

Priorities for the December quarter

The company listed three priorities for the December 2026 quarter: executing definitive agreements with Florida International University and beginning delivery of the repository, progressing the PNS renewal due by 31 December 2026, and continuing validation of ImageIQ.

Together they frame the next quarter: a possible Florida contract, a customer renewal on a fixed deadline and a product that has not yet been commercially released.

Until those agreements are signed, the Florida proposal remains an intention rather than a binding commitment, and revenue from it is not assured.

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