Bod Science Reports $259K Profit on $1.48M Revenue, Eyes Biortica Backdoor Listing

Financial Turnaround Amid Administration

Bod Science Limited, operating under a Deed of Company Arrangement (DOCA), has reported a profit after tax of $258,977 for the year ended 30 June 2025, a significant reversal from the $6.4 million loss recorded in the previous year. This improvement was underpinned by a 70% increase in revenue to $1.48 million, primarily driven by strong sales growth in its medicinal cannabis division.

The company’s strategic pivot towards Tetrahydrocannabinol (THC) products has been a key growth driver. Since launching its first THC product in December 2023, Bod Science expanded its THC product range to 12 SKUs, which accounted for 73% of medical sales during the year. This shift coincided with a reduction in sales of its CBD products as the company exited its legacy over-the-counter health and beauty segment to focus on medicinal cannabis.

DOCA and Backdoor Listing Progress

Bod Science’s shares have been suspended on the ASX since November 2023 following a failed capital raise. Subsequently, the company entered voluntary administration and executed a DOCA with Biortica Agrimed Limited in April 2024. Under the DOCA, Biortica committed $380,000 to a deed fund and agreed to a backdoor listing arrangement whereby Bod Science will acquire Biortica’s issued shares in exchange for new shares issued to Biortica’s shareholders and noteholders.

The DOCA period has been extended twice, most recently to 20 November 2025, reflecting delays in Biortica meeting conditions subsequent to the agreement, including ASX re-compliance requirements and audit clearances. A shareholders meeting is expected by late November 2025 to vote on resolutions critical to effecting the backdoor listing and DOCA completion.

Operational and Financial Restructuring

During the year, Bod Science undertook significant cost reductions, including a 59% decrease in employee and director benefits expense and a 99% reduction in research and development spend, reflecting the company’s administration status. The number of employees was reduced from seven to four, and directors’ fees were suspended. The company also disposed of certain intellectual property assets and dissolved its UK subsidiary Aqua Phase Ltd to streamline operations.

Despite improved profitability, Bod Science reported net tangible liabilities of $5.16 million and net current liabilities exceeding $5 million as at 30 June 2025. The company held net cash and cash equivalents of $636,808, a turnaround from a net overdraft position the prior year.

Risks and Future Outlook

The company faces material uncertainties related to its ability to continue as a going concern, contingent on successful completion of the DOCA and backdoor listing, as well as Biortica’s ability to raise capital and provide ongoing funding. Key risks include competitive pressures in the medicinal cannabis sector, regulatory compliance challenges, reputational risks, and the need for future capital to sustain operations and growth.

If the backdoor listing and capital raise proceed as planned, Bod Science aims to secure a sustainable funding base to support its medicinal cannabis business expansion. However, failure to complete these steps could lead to liquidation, underscoring the critical nature of upcoming shareholder and regulatory decisions.