Control Bionics (ASX: $CBL) Quarterly Activities Report & Appendix 4C Quarter Ended 31 March 2024

Control Bionics Limited (ASX: $CBL) has reported a significant increase in cash receipts from customers for the quarter ended 31 March 2024. The company also received the first US$200,000 from the ALS Association in the US to support the launch of their DROVE Autonomous Wheelchair Control Module in the US market. Additionally, the business spent $500,000 in R&D for the quarter as it accelerated development of DROVE and the NeuroStrip. The cash balance at the end of the quarter was approximately $0.9m.

CEO Jeremy Steele highlights growth initiatives and challenges with NDIS funding

CEO Jeremy Steele expressed his satisfaction with the team's commitment to growing the business and highlighted the achievement of milestones on NeuroStrip, DROVE, and core products. He also mentioned the challenges faced due to ongoing issues with NDIS funding approvals in Australia, which have impacted the deferral of sales and the delivery of Assistive Technology to clients. Steele emphasized the industry-wide impact of these issues and the company's efforts to seek resolution with fellow market operators and industry bodies.

Control Bionics' Ambitions and Outlook

Control Bionics has seen growth in sales activity, particularly in Japan, and has identified opportunities for partnerships that will underpin further expansion in this market. The company has also increased its investment in research and development, focusing on bringing new products to the market. Despite the challenges with NDIS funding approvals in Australia, the company remains optimistic about the significant pipeline and market reputation. Looking ahead, Control Bionics aims to grow each of its operating businesses, build NeuroNode Only business globally, deliver the first commercial sales of DROVE, and commercialize the NeuroStrip and associated App. The company is also confident in its ability to improve cash flows in the next quarter and raise capital if required to support its continued operations and meet its business objectives.