Bod Science Limited reports a positive cash flow quarter driven by customer receipts, an R&D tax incentive, and proceeds from intellectual property sales, while navigating its Deed of Company Arrangement.
- Positive net operating cash flow of $858k year to date
- Received $678k R&D tax incentive for prior year
- Generated $125k from sale of intellectual property rights
- Cash and cash equivalents increased to $1.037 million
- Partial funding from Biortica Agrimed Limited under Heads of Agreement
Strong Operating Cash Flow Signals Stability
Bod Science Limited, currently operating under a Deed of Company Arrangement, has reported a solid cash flow performance for the quarter ending 30 June 2025. The company recorded positive net cash from operating activities of $858,000 for the year to date, underpinned by steady receipts from customers and a significant R&D tax incentive. This marks a notable improvement in liquidity, a critical factor for a company navigating restructuring.
Intellectual Property Sale Provides Additional Capital
Adding to its cash inflows, Bod Science realised $125,000 from the sale of certain intellectual property rights during the quarter. This transaction not only provided immediate financial relief but also reflects the company’s strategic approach to monetising non-core assets amid ongoing operational challenges. The proceeds were partially offset by related reimbursements for R&D and legal expenses tied to these intellectual property rights.
Support from Biortica Agrimed Limited
In line with the Heads of Agreement signed in February 2024, Biortica Agrimed Limited has continued to provide partial funding for Bod Science’s trading costs. This support has been crucial in maintaining operational continuity during the Deed of Company Arrangement period. The arrangement underscores the collaborative efforts to stabilise Bod Science’s financial footing while the acquisition process remains underway.
Cash Position and Related Party Payments
By the end of the quarter, Bod Science’s cash and cash equivalents stood at $1.037 million, a substantial increase from the previous quarter’s $179,000. The company disclosed related party payments totaling $35,000, primarily comprising directors’ salaries and fees, reflecting ongoing governance costs during this transitional phase. Notably, no new financing facilities were drawn, indicating reliance on existing resources and external funding arrangements.
Looking Ahead
While the positive cash flow and asset sales provide a degree of financial stability, Bod Science’s future remains closely tied to the outcome of its Deed of Company Arrangement and potential acquisition by Biortica. Investors will be watching for further updates on the acquisition timeline and any additional funding measures that may be necessary to support the company’s long-term objectives.
Bottom Line?
Bod Science’s improved cash flow and asset monetisation offer a lifeline, but the path to recovery hinges on the pending acquisition and ongoing restructuring.
Questions in the middle?
- What is the timeline and likelihood of Biortica completing the acquisition of Bod Science?
- How will Bod Science manage its operational costs if external funding from Biortica changes?
- Are there plans for further intellectual property sales or asset disposals to bolster cash reserves?