Delays getting regulatory approval in key overseas markets has hit the performance of Blis Technologies, which makes products to battle bad breath.
In its full year report published today, Blis reported a $1.108 million loss for the 12 months to March 31, compared with a loss of $1.336 million in the 2005 year.
Revenue for the 2006 year was up 12 per cent to $583,033. No tax was due and no dividend would be paid.
Company chairman Trevor Scott said the result represented a reduced loss for the second half of the year in line with expectations.
For the half year ended September, Blis had posted an operating loss of $615,000.
Today Mr Scott said sales in this country of Blis K12 Throat Guard had increased through the year.
But ongoing delays in gaining regulatory approval in key overseas markets had affected the company's performance, Mr Scott said.
At the same time sales of Blis K12 into Australia and the US for the prevention and treatment of bad breath had increased.
By developing new formulations such as mouthwashes and chewing gums, the products could be registered as cosmetics, Mr Scott said.
New product development in the past year focused on Blis K12 Travel Guard, which was launched last month aimed at air travellers.
Blis chief executive Chris Chilcott said the product was now widely available in pharmacies and had found ready acceptance among frequent air travellers.
Blis said it expected to become cash flow positive late in 2006.
To enable the company meet cash flow requirements until then it was raising $200,000 by placing two million 10c shares with two investors who would bring important strategic relationships to the company.
NZX approval for the share placement was needed because the 10c issue price was between 80 and 83 per cent of the current average market price. Approval was given.
Mr Scott also announced today he would be resigning as a director of Blis, and was resigning other directorships because of ill-health.
Director Peter Fennessy will take up the chairman's job from July 1.
Blis shares closed yesterday at 11c, having been up to 19c in November and down to 10.4c last week.