Key Highlights

  • Cycliq reported June 2026 quarter customer receipts of A$1.072 million and an operating cash inflow of about A$199,000.
  • The FY2026 annual report shows net liabilities of A$670,748 and a material uncertainty over going concern.
  • The company announced a placement of 600 million shares at A$0.0025 on 15 September 2026, with the second tranche subject to shareholder approval.

Cycliq Group (ASX:CYQ), a Perth-based maker of cycling cameras and lights, reported positive operating cash flow for the June 2026 quarter and then, on 15 September 2026, announced a A$1.5 million share placement. The sequence shows a company that has steadied its day-to-day cash generation but still needs outside capital to repair a thin balance sheet.

Products and plans

Cycliq designs and sells bicycle safety and action products, including the Fly6 Pro rear camera light and the Fly12 Sport front camera light. Its FY2026 annual report, lodged on 21 September 2026, also describes the UpRide platform, which collects cycling incident reports and had more than 18,000 curated submissions. After the quarter ended, the company appointed Rhys Campbell as chief technology officer on a consulting basis to expand its vision technology, including applying AI to UpRide data. That is a stated plan rather than a source of revenue.

Recent trading

The 23 April 2026 Appendix 4C showed March quarter customer receipts of A$561,000, down 23 per cent on a year earlier, and an operating cash outflow of A$626,000, leaving cash of A$317,000. The June quarter improved: the 23 July 2026 quarterly update reported receipts of A$1.072 million, an operating cash inflow of about A$199,000 and closing cash of A$535,000. The company attributed the turnaround to an end-of-financial-year sales campaign and the absence of one-off shipping and duty costs.

For the full year, revenue was A$3.79 million compared with a restated A$4.78 million, and the loss was A$85,897, although the remuneration report shows a slightly different figure. Other income of A$188,264 came mainly from an R&D tax incentive refund.

Balance sheet and going concern

Despite the better recent cash flow, the annual report shows net liabilities of A$670,748 and net current liabilities of A$978,142. Payables total about A$1.27 million and borrowings about A$522,000. Current warrant liabilities of A$475,000 include A$400,000 for warrants held by Partners for Growth V, LP, which exercised a cash-settlement right on 29 March 2026; the filing says this amount remains unpaid.

The directors disclose a material uncertainty over going concern, stating that cash is not sufficient to cover those liabilities and payables without additional operating cash flow or funding. A claim by a Hong Kong joint venture entity in the Supreme Court of Western Australia is in mediation.

Placement terms

The placement comprises 600 million shares at A$0.0025. The first tranche of 69,077,498 shares, raising A$172,694, was issued on 25 September 2026. The second tranche of 530,922,502 shares, raising A$1.33 million and including A$250,000 from directors, requires shareholder approval. Attaching options are included, and a further 120 million options at A$0.005 also need approval. A notice of annual general meeting was lodged on 6 October 2026.

Board and risks

Eddie King joined the board as a non-executive director on 13 July 2026, replacing Gareth Jakeman, and Andrew Chapman is chairman. Consumer demand is seasonal and sensitive to sentiment, and the company cited weak conditions in its April update. Foreign exchange movements affect cash, and the dilution from the placement is material.

The Bottomline

Cycliq has returned to positive quarterly operating cash flow, but its balance sheet shows net liabilities, an unpaid warrant settlement and a going-concern note. Completion of the second placement tranche depends on the shareholder vote.