• Record U.S. revenue of nearly US$1 million driven by increasing market penetration
• First HCPCS reimbursements from public and private insurers in the U.S.
• Expansion into U.S. sports performance and Japanese rehabilitation markets

Control Bionics Ltd (ASX:CBL) has reported a strong Q2 FY25, with record U.S. revenue of nearly US$1 million, driven by increasing market penetration. The company also received its first reimbursements under the new Healthcare Common Procedure Coding System's (HCPCs) code from both public and private insurers in the U.S., paving the way for increased revenue and improved margins in the U.S. market. Cash receipts were up nearly 30% over the corresponding quarter in FY24 and 5% quarter-on-quarter, reflecting strong demand and improving collections. Control Bionics also secured its first commercial NeuroStrip® agreements, expanding into the U.S. sports performance ('Neuro Bounce') and Japanese rehabilitation (Stroke Lab) markets, diversifying beyond its core assistive communication business. The company implemented A$700,000 in annualised cost savings in its U.S. operations, with full impact expected in H2 FY25. Control Bionics also completed a successful $2.47 million capital raise and expanded its European footprint with first sales in the UK & Ireland following a distribution agreement. The company's commercialisation of its DROVE technology is on track, with three live demonstration sites in Australia, a distribution partnership secured in Queensland, and finalisation of a clinical trial partnership for FDA approval, with submission still expected by mid-2025.

Control Bionics expects an improvement in cash flows in the coming quarter, supported by continued progress in reducing NDIS funding backlog, A$700,000 in annualised cost reductions in U.S. operations, strong sales revenue in Q2 FY25, and US$179,000 second tranche of the ALS Association funding due in Q3 FY25.

Control Bionics is focused on six key strategic priorities in FY25: achieving profitability in core markets, scaling the NeuroNode business, commercialising DROVE, expanding NeuroStrip®, accelerating growth through partnerships and acquisitions, and building a high-performance organisation to support sustainable long-term growth.