CONTROL BIONICS LIMITED — Interim / Quarterly Report 2024

May 5, 2024

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6 May 2024

ASX ANNOUNCEMENT (ASX:CBL)

AMENDMENT - APPENDIX 4C QUARTER ENDED 31 MARCH 2024

Control Bionics Limited (ASX: CBL) advises that it has amended its Appendix 4C for the quarter ended 31 March 2024 to include details as follows.

Section 7.6 of the Appendix 4C disclosed that CBL had entered into an insurance premium funding arrangement in the amount of $131,000. Set out in section 7.6 of the amended appendix 4C are further details of the funding arrangement including lender, interest rate, maturity date and security arrangements.

This ASX announcement has been approved for release by CBL CEO, Jeremy Steele.

About Control Bionics:

Control Bionics is a medical device company assisting patients whose ability to communicate verbally or via text and social media is compromised by illnesses such as Motor Neurone Disease (MND) and Amyotrophic Lateral Sclerosis (ALS). Our core patented NeuroNode technology is a wireless wearable device that detects minute signals sent from the brain to any skeletal muscle and is captured as EMG (Electromyography) output. This output is then sent wirelessly via the NeuroNode to a personal computer, enabling speech and other computer controlled functions like email and texting. Our technology is integrated with eye gaze technology whereby the eye gaze enables a cursor to be moved about a computer screen, driven much like a mouse, and the NeuroNode acts as like the mouse button. Control Bionics is the only such product to harness three modalities – touch, eye and NeuroNode control – which combined yield unique benefits in terms of the ability of patients to express themselves with significantly faster speed and less fatigue.

Control Bionics recently extended its offering to mobility with the launch of DROVE – the autonomous wheelchair module. DROVE allows powered users the independence to operate their wheelchairs in their own homes for the first time.

Control Bionics is currently commercialising its most recent advancement in its technology, the NeuroStrip ® . This wearable, miniaturised EMG device provides the business with the opportunity to enter new markets such as health diagnostics, sports performance and rehabilitation to name only a few potential markets.

Control Bionics operates in North America, Australia, Singapore and Japan.

Control Bionics Limited Registered Office: Level 5, Suite 5.01, 697 Burke Road, Camberwell, Victoria, 3124, Australia T: +61 3 9897 3576 W: www.controlbionics.com ABN: 45 115 465 462

Amended Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

Control Bionics Limited

Control Bionics Limited	Control Bionics Limited	Control Bionics Limited
ABN 45 115 465 462	**Quarter ended (“current quarter”) **
	31 March 2024
Consolidated statement of cash flows	Current quarter ($A’000)	Year to date (9 months) ($A’000)
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material)1 1.9 Net cash from / (used in) operating activities	1,747 (510) (414) (50) (87) (1,292) (447) - 4 (19) - - -	4,341 (637) (1,312) (328) (87) (4,170) (1,055) - 11 (37) - 481 -
	(1,068)	(2,793)

2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property (f) other non-current assets 2.2 Proceeds from disposal of: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property (f) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - (11) - (55) (90) - - - - - - - - -	- - (521) - (83) (141) - - - - - - - - -
	(156)	(745)
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	995 - - - - - - - (75)	3,825 - - - - - - - (186)
	819	3.508

4. 4.1 4.2 4.3 4.4 4.5 4.6	Net increase / (decrease) in cash and cash equivalents for the period Cash and cash equivalents at beginning of period Net cash from / (used in) operating activities (item 1.9 above) Net cash from / (used in) investing activities (item 2.6 above) Net cash from / (used in) financing activities (item 3.10 above) Effect of movement in exchange rates on cash held Cash and cash equivalents at end of period	1,314 (1,068) (156) 819 (26)	936 (2,793) (745) 3,508 (23)
		883	883

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	883 - - -		1,314 - - -
	883		1,314
6. Payments to related parties of the entity and their associates		Current quarter $A’000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 6.2 Aggregate amount of payments to related parties and their associates included in item 2 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a explanation for, such payments.		107
		-
		description of, and an

7. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities 131 131 Credit standby arrangements - - Other (please specify) – see below - - Total financing facilities - 131 Unused financing facilities available at quarter end - Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		131	131
		-	-
		-	-
		-	131
	Details of loan facility shown in Item 7.1: • Purpose – funding of annual insurance premiums • Lender - Attvest Finance Pty Ltd • Interest rate – 4.35% • Maturity date – repayable by monthly instalments, final instalment on 31 October 2024 • The loan is unsecured

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6	Net cash from / (used in) operating activities (item 1.9) (1068) Cash and cash equivalents at quarter end (item 4.6) 883 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.2 + item 8.3) 883 Estimated quarters of funding available (item 8.4 divided by item 8.1) 0.83 Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5. If item 8.5 is less than 2 quarters, please provide answers to the following questions: 8.6.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?	(1068) 883 -
		883
	Answer: No, CBL is expecting an improvement in cash flows. Significant delays experienced by the NDIS in approving funding for sales by CBL have deferred sales revenue being received. CBL and other industry participants are working with the NDIS to resolve this issue in the near future. Cash outflow for the March quarter included substantial funding for the DROVE and NEUROSTRIP projects which should significantly reduce in future quarters.
	8.6.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer: CBL has been in continuous discussions with potential investors and lead managers to subscribe for additional capital in the company. CBL believes that it can raise capital if required in the short term to ensure that it can continue to fund its operations.
	8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
	Answer: Yes. CBL is expecting an improvement in its cash flow in the next quarter and following and is confident that, if necessary, it can raise sufficient capital to support its continued operations and to meet its business objectives.
	Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered.

Compliance statement

1. This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2. This statement gives a true and fair view of the matters disclosed.

Date:

26 April 2024

Authorised by: By the Board

(Name of body or officer authorising release – see note 4)