Bod Science Limited reports a dramatic reduction in half-year losses alongside revenue growth driven by a strategic shift to THC products. The company remains under a Deed of Company Arrangement with key corporate actions pending shareholder approval.
- Net loss shrinks 99.7% to $16,434 for half-year ended December 2024
- Revenue rises 38% to $600,659, led by THC medicinal cannabis sales
- DOCA period extended to August 2025 amid ongoing restructuring
- Conditional acquisition of Biortica Agrimed Limited set for shareholder vote
- Auditor issues disclaimer due to going concern uncertainties
Financial Turnaround Amidst Corporate Restructuring
Bod Science Limited, currently operating under a Deed of Company Arrangement (DOCA), has reported a near break-even result for the half-year ended 31 December 2024. The company posted a net loss of just $16,434, a remarkable 99.7% improvement compared to a $6.14 million loss in the prior corresponding period. This turnaround accompanies a 38% increase in revenue to $600,659, signaling early signs of operational recovery.
Strategic Shift to THC Products Drives Revenue Growth
The revenue growth was primarily fueled by a strategic pivot from cannabidiol (CBD) products to tetrahydrocannabinol (THC) medicinal cannabis offerings. Sales of THC flower products, launched starting December 2023, accounted for $380,587 during the half-year, offsetting declines in CBD product sales. This shift reflects Bod Science’s focus on expanding its medical cannabis division in Australia and the UK, while exiting legacy over-the-counter health and beauty product lines.
DOCA Extension and Backdoor Listing with Biortica
The company remains suspended on the ASX and continues to trade under the DOCA, which was extended to 7 August 2025 due to delays in meeting conditions subsequent to the arrangement. A key element of the restructuring is the conditional acquisition of Biortica Agrimed Limited through a backdoor listing, subject to shareholder approval expected by 30 September 2025. Biortica has committed funding to support Bod Science’s ongoing costs during this period, underscoring the intertwined futures of both entities.
Asset Sales and Corporate Streamlining
In a further move to streamline operations, Bod Science sold intellectual property related to its Aqua Phase subsidiary to Optimus Salvus, receiving a combination of cash, debt forgiveness, and equity. Aqua Phase Ltd was subsequently dissolved in December 2024. The company also significantly reduced discretionary expenses, including research and development and marketing, and cut employee numbers from 15 to four, reflecting a leaner cost structure under the DOCA.
Auditor’s Disclaimer Highlights Uncertainty
Despite these positive developments, the company’s auditor issued a disclaimer of conclusion on the half-year financial report, citing insufficient evidence to confirm the appropriateness of the going concern basis. This reflects ongoing uncertainty about Bod Science’s ability to meet future obligations without successful completion of the DOCA and the backdoor listing. The Deed Administrator remains cautiously optimistic but acknowledges material risks remain.
Bottom Line?
Bod Science’s financial recovery hinges on shareholder approval and ASX re-compliance, with the coming months critical for its turnaround.
Questions in the middle?
- Will shareholders approve the backdoor listing and DOCA resolutions by September 2025?
- Can Biortica meet ASX requirements and complete its financial audit in time?
- What are the prospects for sustained revenue growth from THC products post-DOCA?