Its accumulated losses since 2001 are estimated at $29.3 million, with 2014 appearing to be a crucial financial year for Blis, which produces oral probiotic bacteria.
Having earlier repeatedly downgraded estimated losses for the financial year to March 2013 from $800,000 to $1.3 million, Blis yesterday posted a $1.85 million loss for the year.
Overall revenues were down from $1.46 million a year ago to $1.12 million, while sales revenue from the US slumped 84%, from $676,000 the previous year to $104,000.
Blis' signal yesterday to raise a minimum of $1 million new equity will be its fourth equity-raising.
Last October it raised $1.3 million in a shareholder purchase plan and private placement.
Shares in Blis, which were around 3c in late January, were yesterday trading down slightly at 1c, following the announcement.
Craigs Investment Partner broker, Peter McIntyre, said it was ''critical'' for Blis to raise the $1 million capital this financial year.
''They need to raise that capital to get their strategic business plan in place. It's imperative they get that capital quickly and effectively,'' Mr McIntyre said.
Chief executive Dr Barry Richardson said Europe was ''key'' to Blis' success and China was ''on the horizon'' as a product destination for Blis. It is looking to add milk powder to the list of delivery foods, which includes yoghurt, lozenges and, formerly, ice-cream.
Dr Richardson said while the result was in line with the revised guidance given in February, it reflected ''a disappointing operating performance''.
''The key reason for the reduction in revenue was a review of supply chain requirements by our distributor Stratum Nutrition, compounded by the suspension of a United States formulator's major product launch,'' Dr Richardson said in a market statement yesterday.
Blis required further capital to fund its business strategy, he said.
''The company has initiated plans to raise such further capital. The expectations of directors are that a minimum $1 million in new equity can be raised in support of the business strategy,'' Dr Richardson said.
Mr McIntyre highlighted the Deloitte auditor's report of Blis as a ''going concern'', saying ''time is not on their side''.
Deloitte said in a notes to the financial statements ''In the event it [Blis] cannot raise additional cash and/or fails to achieve future profitability as planned, it is likely the group and company will not be able to continue as a going concern.''
For Blis to purchase Dunedin-based Gourmet Ice Cream, then restructure, then exit the holding, appears to have cost it at least $380,000, with provision for more losses to be booked.
Dr Richardson said despite ''enabling critical proof of concept'' for ingredient delivery in Gourmet's ice cream and yoghurt formulations, the operation was not on a commercial scale.
It would have continued to run at an operating loss without substantial new investment, so operations were halted in February, Dr Richardson said.
He said Blis' investment in developing web-based delivery of some consumer products had proved successful''The route to market has been determined in China and this will lead to new business developments in the 2014 financial year,'' Dr Richardson said.
A ''new initiative'' for 2014 is further development and manufacture to blend Blis' ingredients with milk powder, he said.
The NZX and Financial Markets Authority are still investigating trading of some Blis shares, prior to conversion of some convertible notes in May last year, over whether there was any breach of NZX rules or securities legislation.
