CONTROL BIONICS LIMITED — Interim / Quarterly Report 2026

Apr 29, 2026

CONTROL BIONICS

30 April 2026

ASX ANNOUNCEMENT (ASX:CBL)

QUARTERLY ACTIVITIES REPORT & APPENDIX 4C
QUARTER ENDED 31 MARCH 2026

Highlights

• NeuroNode distribution strategy advancing: Control Bionics continued to progress its transition to a distributor-led AAC model in North America, with onboarding and engagement of key partners providing the foundations for the shift towards a more scalable partner led model.
• NextLevel iOS speech device program and first LOI: Control Bionics entered into a strategic partnership with NextLevel Assistive Technology to commercialise iOS-based speech generating devices in the United States and executed its first Letter of Intent under the program, including an advance payment, providing early commercial validation of the program which we expect to commence by the end of the June quarter.
• European market entry milestone: NeuroNode was included in the German Statutory Health Insurance Medical Aids Directory, enabling reimbursement eligibility and supporting expansion into the German and broader European markets.
• NeuroStrip® commercial rollout progressing: The Company continued to advance the commercial rollout of its NeuroStrip platform, which is now in-market and being used in both the US and Australia across sports performance, rehabilitation and research settings, supporting early adoption and real-world validation.
• Strategic Positioning: We intend to provide a further update of our key strategic initiatives and positioning the business for scalable growth in May.
• Revenue and cash receipts: Cash receipts totalled $1.2 million for the quarter, with net operating cash outflows of $1.7 million, broadly consistent with the prior quarter.

Control Bionics Limited (ASX: CBL) is pleased to announce its Activity Report and Appendix 4C for the quarter ended 31 March 2026.

Commenting on the quarter, Control Bionics CEO, Jeremy Steele said:

We are pleased to report on a quarter of continued progress for Control Bionics, as we focus on executing our key growth initiatives and building momentum across both our AAC and neurotechnology platforms.

Control Bionics Limited
Registered Office: Level 4, 11-13 Pearson Street, Cremorne, Victoria, 3121, Australia
T: +61 3 9897 3576 W: www.controlbionics.com
ABN: 45 115 465 462

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In North America, the business has continued to progress the transition to a distributor-led model. We are encouraged by the early engagement from partners and the initial commercial activity we are seeing as this model begins to take shape. The NextLevel iOS speech device program also delivered early validation during the quarter, with the execution of our first Letter of Intent and associated advance payment.

NeuroStrip continues to build momentum, with the technology now in-market and being used across sports performance, rehabilitation and research settings. We are encouraged by the breadth of application and the level of interest we are seeing, which reinforces the opportunity to expand into these new and adjacent markets.

In Australia, NDIS approval delays continue to impact the timing of revenue recognition. While this remains a challenge across the industry, underlying demand remains strong and we continue to work closely with customers and stakeholders to navigate the current environment.

Overall, the Company remains focused on disciplined execution, continuing to progress our key strategic initiatives while managing costs and positioning the business for scalable growth.

Operational Performance

(a) North America

North America delivered a solid operational performance during the quarter, with continued progress in the transition to a distributor-led AAC model. The Company progressed onboarding and engagement with distribution partners, with early activity supporting the shift toward a more scalable, partner-led model. The Company also advanced its iOS speech device initiative through its partnership with NextLevel Assistive Technology, including execution of its first Letter of Intent under the program, providing early commercial validation.

While the transition to a distribution-led model continues to impact near-term revenue mix, it is expected to support improved scalability over time.

(b) Australia

Performance in Australia continued to be impacted by ongoing delays in NDIS approvals, resulting in timing impacts on revenue recognition during the quarter. Despite this, underlying demand remains supported by a strong pipeline of funding applications. The Company continues to engage with industry bodies and stakeholders to advocate for improved NDIS approval timeframes.

The Company also continued to progress commercial engagement activities for NeuroStrip during the quarter, with ongoing discussions across sports performance organisations, rehabilitation providers and research institutions, providing the foundations for expansion of commercial deployment.

(c) Japan

The Japan business continues to focus on market development, with revenue during the quarter reflecting the timing of customer funding cycles and decision-making processes. During the quarter, the Company progressed its focus on expanding business-to-business (B2B)

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opportunities alongside its existing direct-to-consumer activities, including engagement with care providers and rehabilitation organisations.

The Company also continued its research collaboration with Stroke Lab, supporting ongoing validation of its neurotechnology across stroke rehabilitation applications.

(d) Other markets

During the quarter, the Company achieved an important regulatory milestone with the inclusion of NeuroNode in the German Statutory Health Insurance Medical Aids Directory, enabling reimbursement eligibility across Germany. This approval supports the Company's strategy to expand its NeuroNode-only distribution model into European markets.

(e) Product development

The Company continued to progress development and commercialisation of its NeuroStrip platform during the quarter, with ongoing advancement across product capability, regulatory processes and manufacturing readiness.

Commercial engagement continues to build, with increasing activity across sports performance, rehabilitation and research segments. These activities support ongoing adoption and real-world validation of NeuroStrip across a range of use cases.

The Company also continued to advance its broader platform and product strategy, supporting future applications across both assistive communication and neurotechnology markets.

Quarterly cashflows and cash at bank

The Group's results reflect the following:

• Customer receipts of approximately $1.2 million, reflecting continued sales activity across the Group's core markets, with timing impacts and ongoing NDIS approval delays in Australia.
• Net operating cash outflows of approximately $1.7 million, broadly consistent with the prior quarter and reflecting ongoing investment in staff, manufacturing, and commercial activities to support revenue growth.
• Net investing cash outflows of approximately $59,000, primarily comprising expenditure on intellectual property and other investing activities.
• Net cash outflows from financing activities of approximately $67,000, reflecting scheduled debt repayments during the period.
• A closing cash balance of approximately $1.2 million at 31 March 2026.

Strategic Focus for 2026

Control Bionics is focused on five key strategic priorities and ensuring the Company has sufficient cash and other resources:

• Achieve profitability in core markets – Strengthening the U.S., Australia, and Japan operations to ensure each market achieves EBITDA and cash flow positivity.
• Scaling the NeuroNode Business – Expanding NeuroNode-only sales across key regions with key strategic distribution relationships.
• NeuroStrip Expansion – Driving adoption in sports science, rehabilitation, and health diagnostics in both the US and Australia.

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• Accelerating Growth – Identifying strategic partnerships, acquisitions, and licensing opportunities to more rapidly scale the business.
• Building a High-Performance Organisation – Strengthening leadership, operations, and execution to support sustainable long-term growth

ASX Additional information

Expenditure on business activities

Pursuant to Listing Rule 4.7C.1, a summary of the expenditure incurred on the above business activities for the quarter:

Expenditure Category	Amount $’000
Staff costs	1,229
Product manufacturing	1,081
Administration and corporate	448
Research and development	34
Advertising and marketing	72

Related Party Payments

Related party payments as noted in Item 6.1 of the Appendix 4C comprise a total amount of $132,136 paid to Executive Directors and their related parties and Board fees to Non-Executive Directors.

This ASX announcement has been approved for release by the Board of Directors of Control Bionics Limited.

For further information, please contact:

Investors and Media:

Jeremy Steele – CEO and Managing Director
jsteele@controlbionics.com

Brett Crowley - Company Secretary
brettcrowley@controlbionics.com

For further information visit the website: https://www.controlbionics.com/

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About Control Bionics:

Control Bionics is a medical device company that has more than 20 years' experience in the development and use of surface Electromyography (EMG) devices.

About NeuroNode:

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 output. The 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.

About NeuroStrip:

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, Europe and Japan.

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Appendix 4C

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

Name of entity

Control Bionics Limited
ABN	Quarter ended (“current quarter”)
45 115 465 462	31 March 2026
Consolidated statement of cash flows
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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

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2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a) entities	-	-
	(b) businesses	-	(61)
	(c) property, plant and equipment	-	(115)
	(d) investments	-	-
	(e) intellectual property	(59)	(155)
	(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 (cash acquired on business acquisition)	-	6
2.6	Net cash from / (used in) investing activities	(59)	(325)
3.	Cash flows from financing activities
---	---	---	---
3.1	Proceeds from issues of equity securities (excluding convertible debt securities)	-	5,311
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	-	(67)
3.5	Proceeds from borrowings	-	450
3.6	Repayment of borrowings	(67)	(624)
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	(67)	5,070

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4.	Net increase / (decrease) in cash and cash equivalents for the period
4.1	Cash and cash equivalents at beginning of period	3,057	595
4.2	Net cash from / (used in) operating activities (item 1.9 above)	(1,694)	(4,100)
4.3	Net cash from / (used in) investing activities (item 2.6 above)	(59)	(325)
4.4	Net cash from / (used in) financing activities (item 3.10 above)	(67)	5,070
4.5	Effect of movement in exchange rates on cash held	(3)	(6)
4.6	Cash and cash equivalents at end of period	1,234	1,234
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	Previous quarter $A'000
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5.1	Bank balances	1,234	3,057
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)	1,234	3,057
6.	Payments to related parties of the entity and their associates	Current quarter $A'000
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6.1	Aggregate amount of payments to related parties and their associates included in item 1	132
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 description of, and an explanation for, such payments.

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7.	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
7.1	Loan facilities	-	-
7.2	Credit standby arrangements	-	-
7.3	Other (Insurance Funding Arrangement) – see below	(149)	(149)
7.4	Total financing facilities	(149)	(149)
7.5	Unused financing facilities available at quarter end		-
7.6	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.
	On 28 January 2026, the Company entered into an insurance premium funding arrangement with Attvest Finance (“Attvest”) to fund the renewal of its insurance policies. The facility is repayable in 10 monthly instalments to 30 October 2026 and incorporates a flat interest rate of 4.67% over the term. The outstanding balance of the facility is $149,311 as at 31 March 2026.

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8.	Estimated cash available for future operating activities	$A'000
8.1	Net cash from / (used in) operating activities (item 1.9)	(1,694)
8.2	Cash and cash equivalents at quarter end (item 4.6)	1,234
8.3	Unused finance facilities available at quarter end (item 7.5)	-
8.4	Total available funding (item 8.2 + item 8.3)	1,234
8.5	Estimated quarters of funding available (item 8.4 divided by item 8.1)	0.7
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.
8.6	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?
	Answer: The level of net operating cash outflows for the quarter is broadly consistent with the prior quarter and reflects ongoing investment in the business. While operating cash flows may fluctuate in the near term, the Company expects underlying operating cash flows to improve over time as revenue grows, supported by the rollout of the NeuroNode-only distribution model, expansion of SaaS licensing arrangements, and increasing commercial activity.
	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: The Company continues to actively monitor its capital requirements and maintains flexibility to raise additional equity or debt funding if required. The Company has entered into a short-term loan facility secured against its anticipated R&D tax incentive refund, which was funded on 28 April 2026. In addition, the Company maintains regular engagement with investors and funding counterparties and believes it has the capacity to secure additional funding to support operations or strategic initiatives if needed.
	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. The Company expects to be able to continue its operations and meet its business objectives, supported by its cash balance at quarter end, continued revenue growth, disciplined cost management, and its ability to access additional funding if required. These factors provide a reasonable basis for the continuation of operations and execution of the Company's strategic 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.

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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: 30 April 2026

Authorised by: By the Board