Expansion into US Sports and Japanese Rehab Markets

Key points

• Strategic investment in Neuro Elite Athletics to accelerate rollout of NeuroBounce program in US sports market
• Memorandum of Understanding with Stroke Lab to localise NeuroStrip technology for Japanese rehabilitation market
• Partnerships expected to generate material revenue through new recurring subscription fees and hardware sales

Full summary

Control Bionics Limited (ASX:CBL) has announced two significant milestones marking the first commercial agreements for its NeuroStrip technology. The company has acquired a 20% stake in Neuro Elite Athletics, the US-based company behind the NeuroBounce program, to rapidly accelerate the rollout of the program in the lucrative US sports market. NeuroBounce's proprietary program, exclusively utilising Control Bionics' products, is the world's only computerised electromyography (EMG) training solution proven to increase vertical leap by 5-15 cm and enhance explosiveness in just eight sessions. The program targets the US sports market, including college, high school, and professional teams. Control Bionics will receive direct revenue from hardware sales, software subscriptions, and a share of NeuroBounce distributions. The company has also signed a Memorandum of Understanding with Tokyo-based Stroke Lab, a premier rehabilitation facility, to localise the NeuroStrip technology for the Japanese market. Stroke Lab is a recognised leader in neurological rehabilitation, with a strong digital presence and extensive industry network. These partnerships are expected to diversify Control Bionics' market focus and generate material revenue through new recurring subscription fees and hardware sales. The company will also gain exclusive access to anonymised patient and athlete data to drive future automation and the development of advanced AI models.

Guidance

The partnerships are expected to generate material revenue through new recurring subscription fees and hardware sales, but no specific financial metrics or timeframes were provided.

Outlook

The partnerships mark a pivotal step in Control Bionics' mission to harness neurotechnology for human empowerment, opening the door to the lucrative US sports market and enhancing the company's leadership in advanced rehabilitation technologies.