Bod Science has flagged a continuing drop in CBD product demand, driven by patients' sustained preference for high-THC flower.
Medical sales for the March quarter came in at A$190,000, a 41% decline from the prior three months, pulling overall sales down 49% to $261,000.
The company made no sales to global partner Health and Happiness (H&H) Group during the period, with Bod acknowledging it was "cognisant" that its exclusive distribution agreement with H&H had come to an end.
Customer receipts rose 66% to $813,000, driven largely by an initial $500,000 payment from Arrotex Pharmaceuticals, though total revenues of $517,000 still slipped 5% compared to the preceding three-month period.
The Arrotex payment is tied to the signing of a conditional commercial agreement under which Bod would supply an over-the-counter CBD product if it successfully registers a schedule 3 medicine.
Findings from Bod's clinical trial targeting insomnia-related conditions are anticipated in June.
On a more encouraging note, net cash consumed by operating activities over the quarter improved by 10% relative to the second quarter, dropping to $1m.
Bod shares are currently trading at $0.059c, placing the company's market capitalisation at $9m.
Chief executive Jo Patterson described an "optimistic conclusion" to the quarter, citing "several major milestones" reached in the company's clinical trials alongside reductions in spending across key areas.
She also noted that a pharmacokinetics study of its Aqua Phase technology was approaching.
Combined with the schedule 3 trial, Bod holds "two transformational assets that offer optionality for revenue and commercial opportunities at a global scale", Patterson said.
"The majority of expenses associated with our key clinical trials have now been largely incurred and shareholders will see Bod fortify its commercialisation of these assets through strategic partnerships and unique collaborations," she added.
