"Following this major positive market shift and increased demand...

"Following this major positive market shift and increased demand for the Nano, Micro-X made a strategic decision to
become better positioned for the changed market dynamics by scaling up the capacity and readiness of the Nano
production line. Near the end of the Quarter, Micro-X commenced an increase in production inventory and manufacturing
infrastructure, staged from May to July 2020, to shorten delivery times to less than four weeks and increase the production
line rate to two Nano units per day. To achieve this, considerable work has been undertaken to increase volume in our
supply chain with an increased commitment of $1.1 million to buy and hold further spare parts and inventory. In connection
with this, X-ray tube manufacture has now successfully been moved from the temporary facility in which it was developed
to a new, purpose-built, clean room facility adjacent to the main assembly facility. This new facility has allowed further
expansion with an additional $0.6 million to be spent in the coming quarter on capital equipment for end-of-line testing.
The Company’s new Tonsley facilities have the space to support all future growth in production of x-ray tubes and
assembly of products"