Bod Science is preparing to reveal the details of a fresh capital raise following a first quarter of FY24 in which costs climbed and revenues declined.
Quarterly receipts rose 23% from the prior quarter to A$499,000, though sales revenue of $196,000 dropped 36% from Q4 FY23. Medical sales declined 21% to $131,000, with the company attributing the weakness to a shift in patient demand toward THC-dominant products.
Net cash used in operating activities reached $1.9 million, an 18% increase on Q4 and 9% above the same quarter a year earlier.
Bod indicated that its research and development expenditure of $837,000 should "decrease substantially" after the December quarter, once clinical trials examining an over-the-counter CBD candidate for sleep and the bioavailability of its Aqua Phase technology reach completion.
With just $115,000 in available cash, the company drew scrutiny from the ASX regarding how it intends to fund its ongoing operations.
In response to questions about its funding plans, Bod confirmed it will announce a capital raise in November, and said the introduction of "new revenue opportunities will reduce the level of net operating outflows from the March quarter onwards." The company also noted that a tax rebate of $800,000 would provide additional support to its cash position.
Trading in Bod's shares on the ASX is currently suspended pending the release of the raise's details.
The company also announced a supply agreement with Burleigh Heads Cannabis to distribute a wider range of medical products under its MediCabilis brand, which it expects will lift revenue during the second half of the year.
Chief executive Jo Patterson said attention will also shift to commercialising the company's Aqua Phase technology and its schedule 3 CBD product. In September, Bod reported that a 100mg dose of its CBD capsule showed a "statistically significant difference" over placebo on the primary endpoint for short-term insomnia.
The company said those results will be taken to the Therapeutic Goods Administration (TGA) for discussion before the close of the year.
