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BLIS Technologies 18 November 2021 Challenging market conditions in US impact half year results The first half year ( HY22 ) has seen a continued focus on growing revenue from the BLIS PROBIOTICS ™ range and on positioning the Company for future growth . Undoubtedly the main highlight during this period is the completion of a long - term strategic partnership with Probi , establishing a license agreement to drive future revenue and R & D collaboration opportunities . Key revenue initiatives include the launch of the BLIS PROBIOTICS ™ range into Canada and the launch of the Live Probiotic Hydration Serum under the new Unconditional Skincare Co brand . These initiatives highlight our ability to bring unique probiotic propositions to market . Our focus continues to be growing our Blis branded range of products to complement our ingredient sales , which by their nature can be more variable . Growing our Blis branded range increases our direct connection with the end consumer . Financial Performance COVID - 19 continues to present short term challenges for the business and HY22 was significantly impacted by lower ingredient revenue , particularly in the USA market . Revenue from ingredient sales was down by 51 % , which was primarily due to a 79 % reduction in the USA ingredient business . This reduction was offset in part by a 37 % increase in revenue from the BLIS PROBIOTICS ™ range . Overall revenue was down by 33 % to $ 3.9m . The reduction in revenue from the ingredient business is consistent with reported results from other global probiotics companies . In the early stages of the covid pandemic , it is now apparent that our customer base actively built inventories in order to respond to the pandemic . We also saw several new online customers enter the market . In HY22 however we have seen a reset with customers tightly managing stock holdings in response to weaker and more uncertain market conditions . Customers are also moving to a more " just in time " reorder schedule to reduce market risk . Total expenses for the business were up 24 % compared with the same period last year ( HY21 ) as we invested in new roles to build capability across the company , invested in new market development and R & D to support our long - term priorities . The decline in revenue and increased investment in launch activities has resulted in an EBITDA deficit of $ 1.5m , a net deficit for the period of $ 1.8m and net operating cash outflows of $ 1.4m . The cash issue of shares to Probi in July introduced $ 9.2m of cash , resulting in cash balances held at the end of September 2021 to $ 9.6m , also strengthening closing equity to $ 13.0m . New market initiatives The 37 % increase in Blis branded finished products reflects the ongoing growth in eCommerce channels , along with new revenue streams from skincare and the Canada launch .