• Successful validation of major technical milestone in digital MEMS speaker array manufacturing
• Ongoing efforts to extend process validation and enable preliminary acoustic measurements
• Secured additional $1.25M in funding through new convertible notes
• Received $6M in working capital funding commitment from 4F Investments Pty Limited

During the reporting period, Audio Pixels Holdings Ltd made meaningful progress toward aligning its technical development activities with the objective of advancing its Digital Sound Reconstruction (DSR) platform toward commercial readiness. The company's efforts focused on establishing and validating mass manufacturability of its digital MEMS speaker array to the required specifications and tolerances. On 24 December 2025, the company announced the successful validation of a major technical milestone arising from its independent manufacturing process development program. Subsequent activities have focused on extending process validation to enable preliminary acoustic measurements, despite some incompatibilities between the partially completed wafer and the company's proprietary acoustic measurement infrastructure. The company continues to advance acoustic evaluation through interim adaptations to its testing infrastructure while awaiting completion and delivery of additional wafers expected in February and March. Audio Pixels also announced it had raised an additional $1.25M in funding from the issue of new convertible notes to two sophisticated investors. Additionally, 4F Investments Pty Limited has agreed to provide ongoing working capital funding of up to $6 million over the next twelve months, to be funded progressively as required. The company's shares remain in suspension from trading on the ASX, and it is working toward having the suspension lifted.

The company has secured $6 million in working capital funding from 4F Investments Pty Limited over the next 12 months to support its ongoing research and development activities.

Audio Pixels continues to advance its technical development activities and is working to demonstrate the performance of its MEMS GEN-II wafers and chips, which is expected to enable the company to secure additional funding to sustain its operations and meet its business objectives.