How Will Control Bionics Turn Rising Revenue Into Profit Amid Growing Losses?
Control Bionics Limited reported a 14.8% revenue increase to $6.14 million for FY2025 but also a 3.3% rise in net loss to $6.11 million, while pursuing a $2 million rights issue and expanding its investment portfolio.
- Revenue up 14.8% to $6.14 million
- Net loss increased 3.3% to $6.11 million
- No dividends declared for FY2025
- 20% stake acquired in NeuroElite Athletics, LLC
- Non-renounceable rights issue underway to raise $2.06 million
Financial Performance Highlights
Control Bionics Limited has released its preliminary final report for the year ended 30 June 2025, revealing a mixed financial picture. The company achieved a notable 14.8% increase in revenue, reaching $6.14 million, driven primarily by its assistive communication technology sales across Australia and North America. However, this growth was overshadowed by a 3.3% increase in net loss, which widened to $6.11 million compared to the prior year.
The company did not declare any dividends, reflecting ongoing investment needs and operational challenges. Net tangible assets per share declined to 0.49 cents, down from 0.93 cents the previous year, signaling a tightening balance sheet position.
Strategic Investments and Market Expansion
In a strategic move to diversify and strengthen its portfolio, Control Bionics acquired a 20% stake in US-based NeuroElite Athletics, LLC, the developer of the NeuroBounce program. This investment aligns with the company’s focus on expanding its footprint in the sports performance and assistive technology sectors. The acquisition was completed through a series of cash and in-kind contributions totaling approximately US$260,000.
Geographically, the company continues to operate primarily in Australia and North America, with exploratory activities in Japan and other markets. Its substantial research and development program remains a core focus, underpinning future product innovation and market opportunities.
Capital Raising and Liquidity
To support ongoing operations and growth initiatives, Control Bionics successfully raised capital through multiple share issues during the year, increasing issued capital to over $40 million. Post year-end, the company secured a $450,000 loan facility from Phoenix Development Fund Limited, secured against its R&D tax refund and carrying a 12% interest rate.
Additionally, the company announced a non-renounceable rights issue offer to raise approximately $2.06 million, underwritten to a significant extent, aimed at bolstering working capital and funding strategic priorities. Cash reserves declined to $594,733 by year-end, reflecting continued cash burn from operations and investment activities.
Going Concern and Outlook
The financial statements remain unaudited but are expected to include an emphasis of matter regarding material uncertainty about the company’s ability to continue as a going concern. This highlights the ongoing financial pressures despite revenue growth and capital injections.
Looking ahead, Control Bionics faces the challenge of converting its R&D efforts and strategic investments into sustainable profitability. The success of the rights issue and the performance of its new associate, NeuroElite Athletics, will be critical factors shaping its trajectory.
Bottom Line?
Control Bionics’ revenue growth is encouraging, but rising losses and going concern doubts underscore the need for successful capital raising and operational execution.
Questions in the middle?
- Will the upcoming rights issue fully subscribe and strengthen the balance sheet?
- How will the investment in NeuroElite Athletics impact future revenue and profitability?
- What are the company’s plans to address ongoing losses and achieve sustainable cash flow?
