The value of its intellectual property (IP) rights, at present on its books at $2.3 million, is also to be scrutinised by auditors, which could further impact negatively on the forecast loss.
Blis had been subjected to strategic and financial reviews recently and had begun further "operating-cost reviews, including the merit of maintaining an NZX listing", its board said in a statement.
Craigs Investment Partners broker Peter McIntyre said Blis has been left in a "difficult and tenuous" position, having had a "three-year window" to make progress.
"Sales have simply been too slow for them and they have become cash-starved," Mr McIntyre.
He highlighted the difficulty of the market Blis was in, which required it to meet high United States food standards, which was always a potential for delay.
He said Blis' options for raising capital were to find a large new cornerstone investor, or to again "tap" the existing shareholders, but the latter was "going to be difficult", given shareholders' lacklustre response to capital raising last year, he said.
Blis released the guidance last Friday, at 5.15pm after the close of the stock exchange. Its shares then dived from 4c to 1.5c, but retraced slightly yesterday to trade at about 2c.
For the year to March 2012, Blis told shareholders in the statement it expected to shortly post a loss of $1.87 million - its largest ever - and went on to estimate it could face posting a further loss of $800,000 for the year ending March 2013.
Blis' directors had agreed to forego fees, including those due for the March 2012 quarter.
The loss, on the back of $1.4 million revenue, is after making provision for a $400,000 dividend to preference shareholders, and includes a $150,000 loss for Blis' acquisition of Dunedin's Gourmet Ice Cream Company last year.
Blis' preference shares, of four million issued for $1 each, were first listed in May 2009 and five dividends have been paid, but the next instalment has been converted to payment by issuing ordinary shares.
Blis' independent director Bevan Wallace responded to an interview request yesterday, saying "all possible options" of further capital raising are being explored, and he hoped to update the market before the shareholders' annual general meeting, in late June or early July.
On the possibility of an impairment being placed on the $2.3 million "carrying value" of Blis' IP rights, Mr Wallace said that was expected to be determined by auditors by the end of April, or early May.
Asked if he was confident the IP value would remain at $2.3 million, he said it would depend on the company's capital structure as it moved towards product commercialisation.
Mr McIntyre said the fact Blis had highlighted the pending IP audit had given shareholders a "heads up', which in Blis' words "will add to the anticipated operating loss", if an impairment, or decline in IP value, is made by the auditors.
Blis' board believe the company cannot attain the sales levels required in the year ahead and said a loss again next year, estimated at $800,000, would "exhaust the company's existing cash reserves", which will stand at $700,000 at the end of this month.
Blis has developed oral probiotics for sore throats, bad breath and to boost health after other treatments such as courses of antibiotics.
Since listing in 2004, Blis has posted a total $6.35 million in seven consecutive annual losses; but underpinned operations after raising a further $3 million in 2010 then a further $1.6 million in a share placement and purchase plan in September last year.
However, that $1.6 million raised fell far short of expectations at the time, as Blis had targeted raising up to $3 million.
The losses were largely because of changes to its global distribution arrangements and a change of strategy by its largest US customer.
"As previously advised, the first half year of ingredient sales were affected by a change in the company's global distribution arrangements and a strategy change by its then largest United States customer," the board said.
While ingredient sales had started with its new distributor Stratum Nutrition, the board said sales were not yet to the levels Blis had expected at the time of the share purchase plan last September.
"A further significant uplift in ingredient sales is required for the company's financial performance to be acceptable," the board said.
While a sales lift was "conceivable", given the US accreditation of GRAS (Generally Recognised as Safe), the approval to market BLIS K12 in China and Stratum Nutrition's recent appointment, "the board considers it cannot rely on achieving such a sales uplift in the next 12 months".
Blis' board initiated a strategic and financial review of operations by Murray and Co in early January and that company had since confirmed "a potential requirement for additional capital".
Murray and Co was to "solicit further capital" for Blis, the board said.
The board said it had been "mindful" about the need for further capital, given placements in September raised $1.6 million "rather than the $2 million to $3 million that had been planned for at the time".
• In November last year, Blis said the "realignment" of global distribution arrangements saw a lull in branded ingredient sales, which was further exacerbated by market conditions generally.
There had also been a change in sales strategy of one of Blis' largest US retailers, which meant market promotion of its product was suspended pending completion of licensing arrangements.
As a consequence, Blis' US sales fell from $682,000 to $8000.
While sales resumed into the US in October, meaningful volumes were not anticipated until a new distributor was appointed in December, the company said at the time.
