• Control Bionics has received approvals from the NDIS totalling close to $400k in past eight weeks
  • There has been a growing momentum in NDIS approval process in recent times, notes Control Bionics, adding…
  • … its new long-term leasing program for the Trilogy system has been well received

 

Special Report: Control Bionics has reported a big improvement in NDIS approvals alongside the launch of a long-term leasing program for its Trilogy system, designed to help individuals with neurodegenerative conditions gain quicker access to vital communication technology.

After a challenging period marked by industry-wide delays in NDIS approvals since late 2023, Control Bionics (ASX: CBL) has reported a significant and steady increase for these over the past eight weeks.

During this time the company has received approvals totalling close to $400k – more than it had received from the NDIS over the previous five months – which it said reflected growing momentum in the agency’s approval process.

Control Bionics said the approvals would be recognised as revenue as devices are shipped to its customers.

“Our team has continued to grow the pipeline of opportunities, with nearly $1m currently awaiting approval from the NDIS or expected to be submitted shortly,” the company said in an ASX announcement.

“We have been really encouraged by the level of engagement we’ve had with the NDIS and are confident we will see continued approvals from the agency in the coming months.”

 

New leasing programs for Trilogy and NeuroNode in Australia

Control Bionics recently launched a long-term leasing program for its Trilogy system in Australia, designed to help individuals with neurodegenerative conditions gain quicker access to vital communication technology.

The flexible program allowed its customers to lease the device for 12 months at a lower cost than purchasing outright with the equipment remaining owned by the company.

“This program has been well received, and the NDIS has already approved our first submitted application under this new offering,” Control Bionics said.

“This marks a positive response from the NDIS and validates the effectiveness of our leasing initiative.

“Additionally, we are preparing to launch a similar leasing program for our NeuroNode product, further expanding the range of funding options for our customers.”

Control Bionics’ trademarked NeuroNode provides non-invasive, electromyographic (EMG) mediated computer access, communication, and environmental control capabilities for people with conditions such as amyotrophic lateral sclerosis/motor neurone disease (ALS/MND), cerebral palsy, spinal muscular atrophy, and certain traumatic brain injuries.

The company announced in September it had inked an exclusive distribution agreement with Smart Box Ltd, a leading provider of assistive technology in the UK, for the sale of its innovative NeuroNode device into the UK and Ireland.

 

Rights issue update

Control Bionics is currently conducting a pro rata non-renounceable rights issue to raise up to $2.1m.

The rights issue offers shareholders one new ordinary share for every seven held at an issue price of 7 cents/share, with one option for every two shares, exercisable at 10 cents within two years.

The company said the rights issue was underwritten for ~$890k and would support the commercialisation of the NeuroStrip, the launch of DROVE, and expansion of its NeuroNode Only strategy.

In parallel to the rights issue, Control Bionics successfully received subscriptions for $1.15m in new shares on the same terms as the rights issue.

The placement will complete subject to shareholder approval at the company’s AGM on October 10, 2024.

 

R&D Tax Incentive

In a further boost to its finances, the company said it recently received a research and development tax incentive of $736,794 for FY24.

Control Bionics said it used the funds to repay a debt facility with Radium Capital, leaving a residual amount of $288,587.

 

This article was developed in collaboration with Control Bionics, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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