Key Highlights

  • Osteopore's half-year Revenue to 30 June 2026 was A$1,428,421, down 8 per cent, while the loss after tax widened 14 per cent to A$2,012,559.
  • The half-year accounts carry a material uncertainty about the company's ability to continue as a going concern.
  • Osteopore had drawn A$5.75 million of a A$20 million convertible note Facility at 31 March 2026.

Osteopore (ASX:OSX) is a medical technology company with modest revenue, and the key issue is how that revenue sits alongside its funding. The half-year accounts, approved on 31 August 2026, carry a material uncertainty about the company's ability to continue as a going concern, and its continued operation depends heavily on drawing a convertible note facility.

What Osteopore does

According to its half-year financial report for the six months to 30 June 2026, Osteopore makes bioresorbable, 3D-printed scaffolds used to support bone regeneration. Its products include custom-made cranioplasty implants and an orthopaedic and dental portfolio sold largely through distributors in Asia-Pacific and other regions. The company is commercial-stage but not yet profitable.

Latest financial position

The half-year report, reviewed by Pitcher Partners, showed revenue of A$1,428,421, down 8 per cent from A$1,558,847. The company attributed the fall mostly to a higher Australian dollar, saying revenue was broadly flat in constant currency. The loss after tax widened 14 per cent to A$2,012,559, reflecting higher product development, regulatory and Marketing costs. Operating cash outflow was A$895,096, against A$1,275,507 a year earlier, and cash at 30 June 2026 was A$1,254,607. Net liabilities were A$1,802,292.

The directors said the net deficiency mainly reflects convertible notes with a Face Value of about A$2.45 million. The auditor drew attention to the going-concern uncertainty without qualifying its review opinion, and also highlighted restated prior-period comparatives relating to convertible note classification, interest and share-based payments.

Quarterly detail

The March 2026 quarter Appendix 4C, lodged on 30 April 2026, showed closing cash of about A$1.73 million, receipts from customers of A$615,000 and revenue of A$754,000. Net operating outflow was only A$205,000, helped by a one-off A$565,000 dossier fee from Majeton; on simple arithmetic, the outflow would have been roughly A$770,000 without it. The 4C stated about 78 quarters of funding, but that figure divides cash plus undrawn facilities by the reduced outflow and does not reflect underlying runway.

For the June 2026 quarter, the company reported revenue of A$676,000, down from A$754,000, citing slow uptake of custom cranioplasty products and distribution changes in Europe.

Funding terms and dilution

Osteopore has a redeemable convertible note facility of A$20 million, of which A$5.75 million was drawn and A$14.25 million undrawn at 31 March 2026. The notes carry 4 per cent cash interest and a 36-month maturity, and convert at 80 per cent of an average closing price over five selected trading days in the preceding 45 Business days. Because conversion is tied to the market price, a lower share price means more shares are issued for the same amount of debt, which creates dilution risk for existing holders.

Commercial developments

Recent milestones relate mostly to market access and distribution rather than recognised sales. The company announced that Hainan regulators approved the use of custom orthopaedic devices at a Shanghai Ruijin Hospital branch on 26 May 2026, that Malaysian market access followed on 15 May 2026, and that first dental products shipped to DKSH Malaysia on 17 June 2026 under a five-year agreement signed in November 2025. The 4C also described an exclusive Majeton deal for China, Hong Kong and Macau valued above RMB 12 million, which is an announced contract value rather than recognised revenue.

The Bottomline

Osteopore is widening its distribution footprint while reporting continued losses and a going-concern uncertainty. Risks include ongoing losses, reliance on distributors, currency swings, regulatory timing and the dilution mechanics of the convertible notes. Approvals expand the addressable market but do not by themselves translate into sales.