Bod Science is poised to announce details of another capital raise after a first quarter of FY24 which saw expenses rise and revenues fall.
While quarterly receipts climbed 23% from the previous quarter to A$499,000, sales revenue of $196,000 fell 36% from Q4 FY23. Medical sales fell 21% to $131,000 with Bod blaming the move towards THC-dominant products.
Net cash used in operating activities hit $1.9 million, up 18% on Q4 and 9% higher than the same period last year.
Bod said its research and development costs of $837,000 should “decrease substantially” after the December quarter following the conclusion of clinical trials exploring an over-the-counter CBD candidate for sleep and the bioavailability of its Aqua Phase technology.
But with only $115,000 of available cash, the company faced questions from the ASX over its future funding.
Asked what steps it intends to take to raise funds, Bod said it will announce a capital raise in November, while the launch of “new revenue opportunities will reduce the level of net operating outflows from the March quarter onwards”. A tax rebate of $800,000 will further bolster its bank balance, it said.
Bod’s stock is currently suspended from the ASX pending the release of details of the raise.
The company added it has struck a supply agreement with Burleigh Heads Cannabis to distribute an expanded range of medical products under its MediCabilis brand that it expects will increase revenue in the second half of the year.
Chief executive Jo Patterson said focus will also turn to commercialising its Aqua Phase technology and schedule 3 CBD product. In September, Bod said a 100mg dose of its CBD capsule showed a “statistically significant difference” over placebo for its primary endpoint for short-term insomnia.
The results will be discussed with the Therapeutic Goods Administration (TGA) before the end of the year, the company said.