Bod Australia receipts fell sharply in the three months to March as sales also took a hit.
Receipts from customers fell almost 50% to A$647,000, a decrease blamed on receipts for large orders from UK partner Health and Happiness Group being collected in the previous quarter.
Excluding the impact of its issues in Italy – where some of its products failed to reach Italian regulatory standards – sales fell 8%.
Bod had previously reported that it was forced to issue a $535,000 credit note to a customer against sales recorded in Q1 after manufacturing issues “associated with the company’s CBD wellness products”.
Bod said it had “taken steps to resolve the issue with its contract manufacturer and the customer”.
Meanwhile, medicinal cannabis sales in Q3 climbed 2% while net cash used in operating activities fell from $1.2m to $290,000, a fall Bod attributed to the award of a research and development tax incentive worth $1m.
In an update to the ASX, Bod focused its quarterly report on its long-Covid trial with Drug Science UK, for which patient recruitment is now underway, and its bid to register a schedule 3 pharmacy-only product with the Therapeutic Goods Administration (TGA).
Bod Australia chief executive Jo Patterson said: “Bod has made significant progress towards the commencement of two clinical trials which have the potential to bring new products to market and disrupt the current pharmacological treatments for a number of need states.
“The data from these studies will be pivotal for the commercialisation journey of additional cannabis-based medicines which have the potential to underpin future agreements and sales.”
Bod shares have lost 6.5% of their value over the past five days, and 44% over the past six months.