Wellington, Nov 12 NZPA - Biotech entrepreneur Blis Technologies has posted a net loss of $180,000 for the six months to September 30.

It said the deficit represented a 56 percent drop on the deficit for the same period of last year, $411,000.

Without finance costs related to dividend payments on convertible preference shares, the latest net deficit was $11,000 ($405,000 last year).

No tax is payable and no dividend will be paid on ordinary shares. Blis shares closed today at 13c, up 2c.

Earlier in 2009, the Dunedin-based company reported a full year loss of $488,000 for the year to March 30, an improvement on the previous full-year loss of $617,000.

Revenue for the half-year to September increased 228 percent to $1,078,000 on the back of increased sales in North America, Asia and New Zealand.

But directors noted the 80 percent of its sales were international, compared with 58 percent in the 2008 half-year, and the high NZ exchange rates in the last few months had eroded revenue by $100,000 from the budgeted figure.

A big lift in US sales revenue was due to work with a distributor, Frutarom Ltd.

Blis developed and makes Blis K12, which contains beneficial bacteria to boost oral health by supporting the throat's natural defences, and earlier this year launched Blis M18, a probiotic sold in the US in Tooth Fairy products to prevent tooth decay in children.

A slow start in the Irish market is a concern, and it is reviewing the situation with the Whelehan Group. NZ revenue was higher than in the previous period by 94 percent as a result of the marketing campaign by Pharmabroker NZ.

Revenue from contract development agreements in the period, primarily involving Nestle Nutrition, was down 79 percent (from $120,000 to $25,000.

Other revenue at $365,000 was mainly from a major global consumer products company, though the agreement is subject to confidentiality agreements.

Ordinary shareholder funds are $1,739,000, compared to $1,637,000 the previous year.

The company raised $3 million in May, which included 1.08 million convertible preference shares being allocated to Edinburgh Equity Nominee Ltd. The capital raised is treated as a long-term liability rather than owners' equity, with the net amount of $2.68m considered part of the company's capital base.