Strategy reset and revenue growth

Results announcement




Results for announcement to the market
Name of issuer Blis Technologies Limited
Reporting Period 6 months to 30 September 2022
Previous Reporting Period 6 months to 30 September 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$4,290 10%
Total Revenue $4,290 10%
Net profit/(loss) from
continuing operations
($1,689) 6%
Total net profit/(loss) ($1,689) 6%
Interim/Final Dividend
Amount per Quoted Equity
Security
The Company does not propose to pay a dividend to its
shareholders
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.0069 $0.0085
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please see attached result announcement for commentary on
the result.
Authority for this announcement
Name of person

authorised
to make this announcement
Richard Wingham
Contact person for this
announcement
Richard Wingham
Contact phone number +64 21 284 0446
Contact email address richard.wingham@blis.co.nz
Date of release through MAP

10/11/2022

Audited financial statements accompany this announcement.

---

Blis Technologies Limited: Ground Floor, 442 Moray Place, Dunedin Central 9016, PO Box 2208, Dunedin 9044, New Zealand
T:+64 3 474 0988 E: info@blis.co.nz W: www.blis.co.nz





10 November 2022

Strategy reset and revenue growth
The main focus in the first half of the FY23 financial year has been to implement the strategy reset
announced in July 2022 and to grow revenue to return to a profitable trading position.

As stated in our strategy reset, we are prioritising growth of our ingredient business through
Business to Business (B2B) revenue opportunities and by working with partners. The relationship Blis
established in July 2021 with Probi represents a blueprint for the new strategy. The licensing of BLIS
K12™ and BLIS M18™ ingredient technology allows us to leverage our partner’s global customer base
and market presence.

The strategy reset includes a narrower focus related to Business to Consumer (B2C) opportunities.
We have prioritised our BLIS PROBIOTICS® sales into NZ retail and NZ daigou, on our own Blis
website and on the Amazon platform in North America, which are markets and channels where we
have established a solid presence and have the opportunity to deliver profitable growth.

FINANCIAL OVERVIEW
Revenue for the six months to 30 September 2022 was up by 10% to $4.3m, including a stock buy
back associated with the withdrawal from the Canadian market. Excluding this one-time revenue
adjustment, underlying revenue growth was 17%.

Strong revenue growth was achieved in the European market with revenue returning to pre- covid
levels. Our sales performance in the key US market was again disappointing with a further decline in
revenue.

Royalty income from Probi began accruing at the end of the reporting period as they commenced
the first supply of product manufactured by themselves under license to their existing customer
base.
An unaudited loss of $1.7m was recorded in the six months to 30 September 2022 (FY22 loss of
$1.8m).

The result includes a number of one-off costs associated with the strategy reset. Full provision has
been made in this reporting period for the estimated costs of withdrawing from Canadian retail
market, the decision to discontinue direct selling of our skincare product, Unconditional Skincare
(USC) and the costs of restructuring internal operations. The one-off costs amount to $0.6m.

EBITDA loss for the interim period was $1.2m. After deducting the one-off costs the underlying
EBITDA loss is $0.8m, an improvement on the loss of $1.5m reported in the previous half year.

The Company’s cash position improved during the period by $0.2m to $8.8m. Operating cash flow
was $0.4m surplus despite the trading loss for the period due to the reduction in account receivable
balances at the end of the period.

REGIONAL REVENUE PERFORMANCE
As in other years we have seen continued fluctuations between quarters as larger customers order
patterns change and impact the overall quarter or even half year results. This pattern is expected to
continue.

Europe Middle East
Revenue growth of 65% to $2.1m
We have seen a significant recovery in our European sales, growing 65% compared with the same
period last year. Our distribution partner BlueStone Pharma has reported a recovery in most
markets they service, as the pandemic restrictions eased allowing representatives to once again visit
health professionals and foot traffic returning to pharmacies.

North America
Revenue decline of 57% to $0.6m
North America has been particularly disappointing, declining by 57% compared with the same period
last year. This result is attributable to weak market conditions, uncertainty in the current inflationary
environment and overstocking by existing customers effecting overall ingredient ordering patterns.
Our distributor has been particularly impacted by the delayed ordering patterns of several large
customers.

Additionally, Probi are transitioning their customers from ingredient supplied through our current
distributor to their own manufactured product under our Licensing and Supply Agreement. North
America is a key sales region for Probi and they will actively target new business with their own
production from the next quarter. For Blis this represents a transition of ingredient revenue to
royalty revenue.

Our Amazon North America sales have continued to grow delivering a 20% revenue increase over
HY22.

At the time of our strategic reset our intention was to look for a distributor to take over our direct
retail position in the Canadian market. Following market review and discussion with interested
parties we have decided the best path forward in this market is to focus on Amazon Canada selling.
In line with our B2B focus we will also leverage existing and new brand relationships to broaden our
retail exposure.

Asia Pacific
Revenue growth of 33% to $1.6m
Asia Pacific revenue increased 33% on the same period last year, attributable to strong NZ sales
growth across pharmacy retail and NZ based daigou customers. There has been a focus on growing
daigou sales following the closure of our Tmall store and are pleased with the revenue growth we
are generating from this alternative CBEC approach. We have also experienced 29% growth in sales
from our BLIS webstore, albeit from a smaller base.

Japan ingredient sales grew 9%, aided by the strengthening of the US dollar.

PROBI LICENSING AND DISTRIBUTION AGREEMENT
Revenue during this reporting period includes our first royalty revenue from our Probi strategic
partnership where we have licensed selling of BLIS K12™ and BLIS M18™. While the revenue is low
we remain very positive regarding the growth potential as Probi expand their marketing activities.

In September 2022, Blis senior management visited Probi’s head office in Lund, Sweden, to
personally meet their wider management team and visit their research facilities. Tom Rönnlund, the
Probi CEO, had visited NZ in the previous month, attending a board meeting in person and meeting
with Blis staff across the various operational areas. These visits have further reinforced the positive
collaboration between the companies. During October Blis attended a successful Probi Asia Pacific
event in Singapore, interacting with a range of Probi customers from across the region and
presenting BLIS K12™ and M18™ to a highly engaged audience.

From the end of October 2022, we ceased the sale of the USC brand as part of us transitioning to a
B2B model and partnering with established skincare players globally. We were particularly excited to
attend a Skin Microbiome event in Boston which was well attended by multinational and established
regional skincare companies as well as other skin microbiome innovation companies. This event
validated the breakthrough technology we have developed for skincare, and how we lead the world
in developing a live topical probiotic for cosmetic skincare use. From this event we have several
promising leads with established players within the skincare category.

RESEARCH AND DEVELOPMENT
Our strategic review reinforced the importance of our R&D investment and highlighted this as a core
strength. Our R&D investment has been refocused on assets that fit with our overall B2B
prioritisation.

We have recently seen an exciting mix of clinical trials with BLIS K12™ published highlighting the
potential role it may have in reducing the frequency and length of a range
of respiratory illness caused by both viruses and bacteria. While further research is required in this
area, this data has highlighted the broader role BLIS K12™ can play in preventing upper respiratory
illness across both children and adults. 1,2,3

In line with this we have made good progress developing our probiotic toothpaste proposition
including positive clinical evaluation – colonisation and acceptability (sensory evaluation).
In line with our breakthrough probiotic innovation, we continue to progress several new patents
through the process towards granting of full patent rights. New pending patents in progress include:
• Oral composition patent – at PCT stage
• Topical Composition patent – at PCT stage
• Progression of anti-virus patent to National Phase review

STAFF
We take this opportunity to thank all staff for their contribution and commitment as we reposition
the business to achieve a sustainable and profitable market position.
The easing of travel restrictions has enabled staff to reconnect with customers and to present Blis
products at trade shows and to present at conferences. This has provided an encouraging number
of leads which we will be exploring over the second half of the financial year.

OUTLOOK
There remains market uncertainty based on the economic conditions in many markets, this will be
closely monitored, particularly in the US.
We are encouraged by the early B2B leads we have established; however, we recognise that sales
cycles can be long within the industry so the full benefit of this revised focus will take time to flow
through.

Our narrower B2B mix with a focus on profitable growth has removed much of the pressure for
investment to open new markets, providing a more sustainable position for the company.
These changes are part of the board and management’s focus on a return to profitability, which
we remain confident of in the new financial year once one-off and transition costs are washed
through.

We will continue to update shareholders as we continue to implement the new strategy.

1. Di Pierro, F., & Colombo, M. (2021). The administration of S. salivarius K12 to children may reduce the rate of SARS-CoV-2
infection. Minerva Medica, 112(4). https://doi.org/10.23736/s0026-4806.21.07487-5

2. Wang, Q., Lin, X., Xiang, X., Liu, W., Fang, Y., Chen, H., Tang, F., Guo, H., Chen, D., Hu, X., Wu, Q., Zhu, B., & Xia, J. (2021 ).
Oropharyngeal Probiotic ENT-K12 Prevents Respiratory Tract Infections Among Frontline Medical Staff Fighting Against COVID-19:
A Pilot Study. Frontiers in Bioengineering and Biotechnology, 9. https://doi.org/10.3389/fbioe.2021.646184

3. Guo, H., Xiang, X., Lin, X., Wang, Q., Qin, S., Lu, X., Xu, J., Fang, Y., Liu, Y., Cui, J., & Li, Z. (2022). Oropharyngeal Probiotic
ENT-K12 as an Effective Dietary Intervention for Children With Recurrent Respiratory Tract Infections During Cold Season.
Frontiers in Nutrition, 9. https://doi.org/10.3389/fnut.2022.900448


Ends

For further information, please contact:

Brian Watson
CEO
+64 27 705 9133


About Blis Technologies Ltd

Delivering proven health benefits through evidence-based, advanced probiotics
Blis Technologies is an NZX-listed manufacturer of advanced probiotic strains that go beyond the gut.
Combining innovation with evidence-based research and the highest quality production controls enables
the delivery of probiotic solutions for specific health targets including throat health, halitosis (bad breath),
immune support, teeth and gum health and skin health. BLIS
®
products are sold throughout New Zealand
and in Australia, Asia, Europe and the USA. More information about Blis Technologies Ltd can be found at
www.blis.co.nz.

Website: www.blis.co.nz
Instagram: @blisprobiotics #blisk12 #blism18
Facebook: @BLISProbiotics

---

HALF YEAR
REPORT
FOR THE SIX MONTHS TO 30 SEPTEMBER 2022
PROBIOTIC PIONEERS
FOR A HEALTHIER YOU

HALF YEAR REPORT
2
CONTENTS
HY23 SUMMARY
FINANCIAL
STATEMENTS
HALF YEAR REPORT
DIRECTORY
03
08
04
22

BLIS TECHNOLOGIES LIMITED
3
HY23 SUMMARY
PROBI STRATEGIC
PARTNERSHIP
•First royalty revenue from
licensing agreement
•
APAC customer event: BLIS®
strains promoted
•
Commercial supply commencing
R&D PROGRESS
•Patent filings progressed
»Oral composition (PCT stage)
»Topical composition (PCT stage)
»Anti-virus (National phase)
•
Strengthening BLIS K12™
evidence base: Upper
r
espiratory health
SHOWCASING OUR
INNOVATION GLOBALLY
•VitaFoods Europe and Asia
•
Skin Microbiome confer
ence
•
Positive skincare engagement
from established industry
brands
UNDERLYING
FINISHED
PRODUCT
REVENUE
*
UNDERLYING
EBITDA LOSS
*
+
19
%
$
0.8m
INGREDIENT
REVENUE
Strong rebound
European sales
Weak USA sales
combined with
start of Probi sales
+
23
%
REVENUE
+10%
UNDERLYING
REVENUE
*

+17%
$
4.3m
$
4.6m
FINISHED
PRODUCT
REVENUE
Canadian stock
return costs
Daigou growth
NZ growth
EBITDA
LOSS
+
3
%
$
1.2m
* Refer to Note 2 of the Financial Statements.

CHAIR & CHIEF
EXECUTIVE’S REPORT
HALF YEAR REPORT
HALF YEAR REPORT
4
As stated in our strategy reset,
we are prioritising growth of
our ingredient business through
Business to Business (B2B) revenue
opportunities and by working
with partners. The relationship
Blis established in July 2021 with
Probi represents a blueprint for the
new strategy. The licensing of BLIS
K12™ and BLIS M18™ ingredient
technology allows us to leverage our
partner’s global customer base and
market presence.
The strategy reset includes a
narrower focus related to Business
to Consumer (B2C) opportunities.
We have prioritised our BLIS
PROBIOTICS
®
sales into NZ retail and
NZ daigou, on our own Blis website
and on the Amazon platform in
North America, which are markets
and channels where we have
established a solid presence and
have the opportunity to deliver
profitable growth.
FINANCIAL OVERVIEW
Revenue for the six months to 30
September 2022 was up by 10% to
$4.3m, including a stock buy back
associated with the withdrawal from
the Canadian market. Excluding
this one-time revenue adjustment,
underlying revenue growth was 17%.
Strong revenue growth was
achieved in the European market
with revenue returning to pre-
covid levels. Our sales performance
in the key US market was again
disappointing with a further decline
in revenue.
Royalty income from Probi began
accruing at the end of the reporting
period as they commenced the first
supply of product manufactured by
themselves under license to their
existing customer base.
An unaudited
loss of $1.7m was
recorded in the six months to
30
September 2022 (FY22 loss of $1.8m).
The main focus in the first half of the FY23 financial year has been to
implement the strategy reset announced in July 2022 and to grow revenue to
return to a profitable trading position.
STRATEGY RESET WITH A FOCUS ON RETURNING
TO SUSTAINABLE PROFITABILITY

BLIS TECHNOLOGIES LIMITED
5
The result includes a number
of one-off costs associated with
the strategy reset. Full provision
has been made in this reporting
period for the estimated costs of
withdrawing from Canadian retail
market, the decision to discontinue
direct selling of our skincare
product, Unconditional Skincare
(USC) and the costs of restructuring
internal operations. The one-off
costs amount to $0.6m.
EBITDA loss for the interim period
was $1.2m. After deducting the
one-off costs the underlying EBITDA
loss is $0.8m, an improvement on
the loss of $1.5m reported in the
previous half year.
The Company’s cash position
improved during the period by
$0.2m to $8.8m. Operating cash
flow was $0.4m surplus despite the
trading loss for the period due to
the reduction in account receivable
balances at the end of the period.
REGIONAL REVENUE
PERFORMANCE
As in other years we have seen
continued fluctuations between
quarters as larger customers order
patterns change and impact the
overall quarter or even half year
results. This pattern is expected to
continue.
Europe Middle East
Revenue growth of 65% to
$2.1m
We have seen a significant recovery
in our European sales, growing 65%
compared with the same period
last year. Our distribution partner
BlueStone Pharma has reported
a recovery in most markets they
service, as the pandemic restrictions
eased allowing representatives to
once again visit health professionals
and foot traffic returning to
pharmacies.
North America
Revenue decline of 57% to
$0.6m
North America has been particularly
disappointing, declining by 57%
compared with the same period last
year. This result is attributable to
weak market conditions, uncertainty
in the current inflationary
environment and overstocking by
existing customers effecting overall
ingredient ordering patterns. Our
distributor has been particularly
impacted by the delayed ordering
patterns of several large customers.
Additionally, Probi are transitioning
their customers from ingredient
supplied through our current
distributor to their own
manufactured product under our
Licensing and Supply Agreement.
North America is a key sales region
for Probi and they will actively
target new business with their own
production from the next quarter.
For Blis this represents a transition
of ingredient revenue to royalty
revenue.
Our Amazon North America sales
have continued to grow delivering a
20% revenue increase over HY22.
At the time of our strategic reset
our intention was to look for a
distributor to take over our direct
retail position in the Canadian
market. Following market review
and discussion with interested
parties we have decided the best
path forward in this market is to
focus on Amazon Canada selling. In

HALF YEAR REPORT
6
CHAIR & CHIEF EXECUTIVE’S REPORT CONTINUED
line with our B2B focus we will also
leverage existing and new brand
relationships to broaden our retail
exposure.
Asia Pacific
Revenue growth of 33% to
$1.6m
Asia Pacific revenue increased
33% on the same period last year,
attributable to strong NZ sales
growth across pharmacy retail and
NZ based daigou customers. There
has been a focus on growing daigou
sales following the closure of our
Tmall store and are pleased with the
revenue growth we are generating
from this alternative CBEC approach.
We have also experienced 29%
growth in sales from our BLIS
webstore, albeit from a smaller base.
Japan ingredient sales grew 9%,
aided by the strengthening of the
US dollar.
PROBI LICENSING
AND DISTRIBUTION
AGREEMENT
Revenue during this reporting
period includes our first royalty
revenue from our Probi strategic
partnership where we have licensed
selling of BLIS K12™ and BLIS
M18™. While the revenue is low we
remain very positive regarding the
growth potential as Probi expand
their marketing activities.
In September 2022, Blis senior
management visited Probi’s
head office in Lund, Sweden,
to personally meet their wider
management team and visit their
research facilities. Tom Rönnlund,
the Probi CEO, had visited NZ in
the previous month, attending
a board meeting in person and
meeting with Blis staff across the
various operational areas. These
visits have further reinforced the
positive collaboration between
the companies. During October
Blis attended a successful Probi
Asia Pacific event in Singapore,
interacting with a range of
Probi customers from across the
region and presenting BLIS K12™
and M18™ to a highly engaged
audience.
From the end of October 2022 we
ceased the sale of the USC brand
as part of us transitioning to a
B2B model and partnering with
established skincare players globally.
We were particularly excited to
attend a Skin Microbiome event in
Boston which was well attended
by multinational and established
regional skincare companies as well
as other skin microbiome innovation
companies. This event validated the
breakthrough technology we have
developed for skincare, and how
we lead the world in developing a
live topical probiotic for cosmetic
skincare use. From this event we
have several promising leads with
established players within the
skincare category.
RESEARCH AND
DEVELOPMENT
Our strategic review reinforced the
importance of our R&D investment
and highlighted this as a core
strength. Our R&D investment has
been refocused on assets that fit
with our overall B2B prioritisation.
We have recently seen an exciting
mix of clinical trials with BLIS K12™
published highlighting the potential
role it may have in reducing the
frequency and length of a range
of respiratory illness caused by
both viruses and bacteria. While
further research is required in this
area, this data has highlighted the
broader role BLIS K12™ can play in
preventing upper respiratory illness
across both children and adults.
1,2,3
In line with this we have made
good progress developing our
probiotic toothpaste proposition
including positive clinical evaluation
– colonisation and acceptability
(sensory evaluation).
In line with our breakthrough
probiotic innovation, we continue
to progress several new patents

BLIS TECHNOLOGIES LIMITED
7
through the process towards
granting of full patent rights. New
pending patents in progress include:
• Oral composition patent – at
PCT stage
• Topical Composition patent – at
PCT stage
• Progression of anti-virus patent
to National Phase review
STAFF
We take this opportunity to thank
all staff for their contribution and
commitment as we reposition the
business to achieve a sustainable
and profitable market position.
The easing of travel restrictions
has enabled staff to reconnect
with customers and to present Blis
products at trade shows and to
present at conferences. This has
provided an encouraging number
of leads which we will be exploring
over the second half of the financial
year.
OUTLOOK
There remains market uncertainty
based on the economic conditions
in many markets, this will be closely
monitored, particularly in the US.
We are encouraged by the early B2B
leads we have established; however,
we recognise that sales cycles can
be long within the industry so the
full benefit of this revised focus will
take time to flow through.
Our narrower B2B mix with a focus
on profitable growth has removed
much of the pressure for investment
to open new markets, providing a
more sustainable position for the
company.
These changes are part of the
board and management’s focus
on a return to profitability, which
we remain confident of in the new
financial year once one-off and
transition costs are washed through.
We will continue to update
shareholders as we continue to
implement the new strategy.
Brian Watson
Chief Executive Officer
10 November 2022
Geoff Plunket
Chair
10 November 2022
1. Di Pierro, F., & Colombo, M. (2021). The administration of S. salivarius K12 to children may reduce the rate of SARS-CoV-2 infection. Minerva Medica, 112(4).
https://doi.org/10.23736/s0026-4806.21.07487-5
2. Wang, Q., Lin, X., Xiang, X., Liu, W., Fang, Y., Chen, H., Tang, F., Guo, H., Chen, D., Hu, X., Wu, Q., Zhu, B., & Xia, J. (2021 ). Oropharyngeal Probiotic ENT-K12
Prevents Respiratory Tract Infections Among Frontline Medical Staff Fighting Against COVID-19: A Pilot Study. Frontiers in Bioengineering and Biotechnology, 9.
https://doi.org/10.3389/fbioe.2021.646184
3. Guo, H., Xiang, X., Lin, X., Wang, Q., Qin, S., Lu, X., Xu, J., Fang, Y., Liu, Y., Cui, J., & Li, Z. (2022). Oropharyngeal Probiotic ENT-K12 as an Effective Dietary
Intervention for Children With Recurrent Respiratory Tract Infections During Cold Season. Frontiers in Nutrition, 9. https://doi.org/10.3389/fnut.2022.900448

HALF YEAR REPORT
8
FINANCIAL
STATEMENTS
FOR THE SIX MONTHS ENDED
30 SEPTEMBER 2022

BLIS TECHNOLOGIES LIMITED
9
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
SIX MONTHS SIX MONTHS 12 MONTHS
30 SEP 2022 30 SEP 2021 31 MAR 2022
(UNAUDITED) (UNAUDITED) (AUDITED)
NOTES $’000 $’000 $’000
REVENUES
Revenue 3.1 4,290 3,893 8,965
Other income 3.2 74 341 488
Total revenue and other income 4,364 4,234 9,453
EXPENSES
Distribution expenses 140 88 263
Marketing expenses 772 1,932 3,436
Occupancy expenses 47 33 70
Employee benefits 2,072 1,864 3,594
Raw materials and consumables 848 680 1,925
Operating expenses 2,159 1,407 2,827
Finance expenses 15 28 45
Total Expenses 6,053 6,032 12,160
SURPLUS / (DEFICIT) BEFORE TAX (1,689) (1,798) (2,707)
Income tax expense - - -
SURPLUS / (DEFICIT) FOR THE PERIOD (1,689) (1,798) (2,707)
Other comprehensive income - - -
TOTAL COMPREHENSIVE INCOME (1,689) (1,798) (2,707)
Earnings / (deficit) per share:
Basic (cents per ordinary share) (0.13) (0.14) (0.22)
Diluted (cents per ordinary share) (0.13) (0.14) (0.22)

HALF YEAR REPORT
10
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
(UNAUDITED)
SHARE BASED
RETAINED PAYMENTS TOTAL
SHARE EARNINGS/ EQUITY ATTRIBUTABLE
CAPITAL (DEFICIT) RESERVES TO GROUP
$’000 $’000 $’000 $’000
OPENING EQUITY – 1 APRIL 2022 46,649 (34,537) 37 12,149
Surplus / (deficit) for the year - (1,689) - (1,689)
Other comprehensive income - - - -
Total comprehensive income - (1,689) - (1,689)
Employee performance rights plan reserve - - 17 17
- - 17 17
CLOSING EQUITY – 30 SEPTEMBER 2022 46,649 (36,226) 54 10,477
OPENING EQUITY – 1 APRIL 2021 37,469 (31,830) 23 5,662
Surplus / (deficit) for the year - (1,798) - (1,798)
Other comprehensive income - - - -
Total comprehensive income - (1,798) - (1,798)
Share capital issued 9,188 - - 9,188
Capital raising costs paid (55) - - (55)
Employee performance rights plan reserve - - 20 20
9,133 - 20 9,153
CLOSING EQUITY – 30 SEPTEMBER 2021 46,602 (33,628) 43 13,017

BLIS TECHNOLOGIES LIMITED
11
CONSOLIDATED
BALANCE SHEET
AS AT 30 SEPTEMBER 2022
SIX MONTHS SIX MONTHS 12 MONTHS
30 SEP 2022 30 SEP 2021 31 MAR 2022
(UNAUDITED) (UNAUDITED) (AUDITED)
NOTES $’000 $’000 $’000
ASSETS
Current Assets
Cash and short term deposits 8,754 9,590 8,519
Trade and other receivables 509 1,176 1,751
Prepayments 177 169 298
Inventory 763 1,251 782
NZX Bond 75 75 75
Foreign exchange contracts - 5 26
TOTAL CURRENT ASSETS 10,278 12,266 11,451
Non Current Assets
Property, plant and equipment 516 490 540
Finite life intangible assets 4 1,052 1,649 1,455
Right-of-use-assets 590 601 695
TOTAL NON CURRENT ASSETS 2,158 2,740 2,690
TOTAL ASSETS 12,436 15,006 14,141
Continued overleaf / >>

HALF YEAR REPORT
12
SIX MONTHS SIX MONTHS 12 MONTHS
30 SEP 2022 30 SEP 2021 31 MAR 2022
(UNAUDITED) (UNAUDITED) (AUDITED)
NOTES $’000 $’000 $’000
LIABILITIES
Less Current Liabilities
Trade and other payables 1,249 1,307 1,238
Current borrowings 10 47 35
Lease liabilities 205 200 205
Foreign exchange contracts 82 - -
TOTAL CURRENT LIABILITIES 1,546 1,554 1,478
Non Current Liabilities
Non current borrowings - 13 -
Lease liabilities 413 422 514
TOTAL NON CURRENT LIABILITIES 413 435 514
TOTAL LIABILITIES 1,959 1,989 1,992
NET ASSETS 10,477 13,017 12,149
OWNERS EQUITY
Share capital 5 46,649 46,602 46,649
Retained earnings / (deficits) (36,226) (33,628) (34,537)
Share based payment equity reserves 54 43 37
TOTAL EQUITY 10,477 13,017 12,149
CONSOLIDATED
BALANCE SHEET CONTINUED
AS AT 30 SEPTEMBER 2022
Geoff Plunket Barry Richardson
Chair Director
These financial statements have been authorised for issue 10 November 2022.

BLIS TECHNOLOGIES LIMITED
13
CONSOLIDATED
STATEMENT OF CASHFLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
SIX MONTHS SIX MONTHS 12 MONTHS
30 SEP 2022 30 SEP 2021 31 MAR 2022
(UNAUDITED) (UNAUDITED) (AUDITED)
NOTES $’000 $’000 $’000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from / (applied to):
Receipts from customers 5,566 4,622 9,141
Interest received 51 17 53
Payments to suppliers and employees (5,251) (6,024) (11,454)
Finance costs (15) (27) (45)
Net cash inflow / (outflow) from operating activities 6 351 (1,412) (2,305)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from / (applied to):
Capitalise intangible assets (1) (64) (49)
Purchase of property, plant and equipment (40) (88) (213)
Net cash inflow / (outflow) from investing activities (41) (152) (262)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided from / (applied to):
Repayment of borrowings (25) (24) (48)
Repayment of lease liabilities (101) (99) (198)
Proceeds from share capital issued - 9,188 9,188
Capital raising costs paid - (55) (54)
Receipt of share option - - 33
Net Cash inflow / (outflow) from financing activities (126) 9,010 8,921
Net Increase / (Decrease) in cash held 184 7,446 6,354
Add cash and short-term deposits at start of period 8,519 2,187 2,187
Foreign exchange differences 51 (43) (22)
Balance at end of period 8,754 9,590 8,519
COMPRISED OF:
Cash and short-term deposits 8,754 9,590 8,519
8,754 9,590 8,519

HALF YEAR REPORT
14
1. BASIS OF REPORTING
Reporting entity
The unaudited consolidated condensed interim financial
statements presented are those of Blis Technologies
Limited (the “Company”) and its subsidiary Blis
Functional Foods Limited (the “Group”).
The Group’s principal activity is developing healthcare
products and technologies based on proprietary strains
of probiotic bacteria for sale and licensing in New
Zealand and overseas.
Statutory base
The Company is a profit-oriented entity, domiciled in
New Zealand, registered under the Companies Act 1993
and listed on the New Zealand Stock Exchange. The
Company is an FMC reporting entity under the Financial
Markets Conduct Act 2013. The financial statements
have been prepared in line with the requirements of
these Acts and the Financial Reporting Act 2013.
Basis of Preparation
The unaudited consolidated condensed interim financial
statements have been prepared in accordance with New
Zealand Generally Accepted Accounting Practice (“NZ
GAAP”) and comply with the New Zealand equivalents
to International Financial Reporting Standards (“NZ
IFRS”), as appropriate for interim financial statements
(NZ IAS 34). The interim financial statements should be
read in conjunction with the Group annual report for
the year ended 31 March 2022.
The unaudited consolidated condensed interim financial
statements were authorised for issue by the Board of
Directors on 10 November 2022.
Basis of Measurement
The unaudited consolidated condensed interim financial
statements have been prepared on the historical cost
basis, except for the derivative financial instruments that
are measured at fair value at the end of each reporting
period. Historical cost is based on the fair values of the
consideration given in exchange for assets.
Accounting policies are selected and applied in a manner
which ensures that the resulting financial information
satisfies the concepts of relevance and reliability,
thereby ensuring that the substance of the underlying
transactions or other events is reported.
The same accounting policies and critical judgements,
estimates and assumptions are applied in these
unaudited consolidated condensed interim financial
statements as were applied in the preparation of the
Group’s consolidated financial statements for the year
ended 31 March 2022.
The unaudited consolidated condensed interim financial
statements are presented in thousands of New Zealand
dollars. The New Zealand dollar is the Group’s functional
currency.
The unaudited consolidated condensed interim financial
statements do not include all the information required
for full financial statements.
NOTES TO AND FORMING
PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30 SEPTEMBER 2022

BLIS TECHNOLOGIES LIMITED
15
Critical Judgements, Estimates and Assumptions
In the application of NZ IFRS, the Directors are required
to make judgements, estimates and assumptions about
carrying values of asset and liabilities that are not readily
apparent from other sources. The judgements, estimates
and assumptions used in the preparation of these
unaudited consolidated condensed interim financial
statements are consistent with those used in the Group’s
consolidated financial statements for the year ended 31
March 2022.
Significant Accounting Policies
Except as described below, the accounting policies in
the unaudited consolidated condensed interim financial
statements are the same as those applied in the Group’s
consolidated financial statements for the year ended 31
March 2022.
2. SIGNIFICANT TRANSACTIONS
AND EVENTS FOR THE CURRENT
PERIOD
The following significant transactions and events
affected the financial performance and financial position
of the Group for the six-month period ended
30 September 2022:
Refocus strategy on core business
During the year, the Group underwent a strategy
shift narrowing the focus of the Group to Business to
Business (B2B) revenue opportunities and establishing
partnerships with proven industry operators to
commercialise its proprietary technology. As a result
of this strategic refocus, the decision was made to
cease business to consumer activity related to the
Unconditional Skincare Co. brand and the sale of BLIS
PROBIOTICS® through Canadian wholesaler, PurityLife.
Included in the HY23 result are adjustments related
to the strategy refocus which impact on revenue and
expenses as noted in the following table. Our HY23
highlights and commentary make reference to the
underlying revenue and EBITDA results.
Underlying Revenue and EBITDA are Non-GAAP
measures that have been used in the commentary of
the HY23 performance to provide users of the financial
information with a clearer picture of the underlying
trading performance at HY23. This is consistent with
internal reporting to management. The reconciliation
below shows the adjustments made from Reported
surplus / (deficit) for the period as reported in the
Statement of Comprehensive Income to the Underlying
EBITDA.
Reconciliation of Reported Surplus / (Deficit) to Underlying EBITDA for the period:

NOTES HY23 HY22
Reported surplus / (deficit) for the period (1,689) (1,798)
Stock buy back adjustment
1
3.1 274 -
Restructuring costs
2
30 -
Provision for inventory write-off
3
45 -
Impairment of intangible assets
4
4 277 -
Total adjustments 626 -
Underlying Surplus / (deficit) for the period (1,063) (1,798)
Depreciation and amortisation 295 296
Net interest (revenue)/ expense (59) 11
Underlying EBITDA (827) (1,491)
1. Stock buy back adjustment upon wind up of the Canadian Wholesaler relationship.
2. Employment costs related to the strategic reset.
3. Provision for the net realisable value of inventory held in Canada.
4. Full impairment of Unconditional Skincare Co. intangible assets related to website, trademarks and capitalised development, as product sales under this brand cease
at 31 October 2022.

HALF YEAR REPORT
16
3. REVENUE AND OTHER INCOME
3.1 REVENUE
SIX MONTHS SIX MONTHS 12 MONTHS
30 SEP 2022 30 SEP 2021 31 MAR 2022
(UNAUDITED) (UNAUDITED) (AUDITED)
$’000 $’000 $’000
Revenue consists of the following items
Point in time recognition:
Sale of goods – domestic sales
Finished goods 1,098 568 1,596
Ingredients 26 26 84
Sale of goods – export sales
Finished goods 731 909 1,341
Ingredients 2,701 2,222 5,776
Over time recognition:
Right to access 8 168 168
Underlying revenue 4,564 3,893 8,965
Sale of goods – export sales
Finished goods – stock buy back adjustment (274) - -
Revenue 4,290 3,893 8,965
3.2 OTHER INCOME
SIX MONTHS SIX MONTHS 12 MONTHS
30 SEP 2022 30 SEP 2021 31 MAR 2022
(UNAUDITED) (UNAUDITED) (AUDITED)
$’000 $’000 $’000
Grant income - 324 435
Interest income 74 17 53
74 341 488
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCAL STATEMENTS (CONTINUED)

BLIS TECHNOLOGIES LIMITED
17
4. FINITE LIFE INTANGIBLE ASSETS
IT, WEBSITE
CAPITALISED DEVELOPMENT
TRADEMARKS PATENTS DEVELOPMENT AND SOFTWARE TOTAL
$’000 $’000 $’000 $’000 $’000
30 SEPTEMBER 2022 (Unaudited)
Gross Carrying Amount
Balance at 1 April 2022 212 1,191 4,169 400 5,972
Additions - - - - -
Disposals - - - - -
Balance at 30 September 2022 212 1,191 4,169 400 5,972
Accumulated amortisation
and impairment
Balance at 1 April 2021 47 960 3,252 258 4,517
Amortisation expense 23 31 62 10 126
Impairment expense 29 - 158 90 277
Balance at 30 September 2022 99 991 3,472 358 4,920
Net book value at 30 September 2022 113 200 697 42 1,052
30 SEPTEMBER 2021 (Unaudited)
Gross Carrying Amount
Balance at 1 April 2021 206 1,164 4,169 400 5,939
Additions 5 2 58 - 65
Disposals - - - - -
Balance at 30 September 2021 211 1,166 4,227 400 6,004
Accumulated amortisation and impairment
Balance at 1 April 2021 26 900 3,115 187 4,228
Amortisation expense 10 31 59 27 127
Balance at 30 September 2021 36 931 3,174 214 4,355
Net book value at 30 September 2021 175 235 1,053 186 1,649

HALF YEAR REPORT
18
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCAL STATEMENTS (CONTINUED)
4. FINITE LIFE INTANGIBLE ASSETS CONTINUED
IT, WEBSITE
CAPITALISED DEVELOPMENT
TRADEMARKS PATENTS DEVELOPMENT AND SOFTWARE TOTAL
$’000 $’000 $’000 $’000 $’000
31 MARCH 2022 (Audited)
Gross Carrying Amount
Balance at 1 April 2021 206 1,164 4,169 400 5,939
Additions 6 43 - - 49
Disposals - (16) - - (16)
Balance at 31 March 2022 212 1,191 4,169 400 5,972
Accumulated amortisation and impairment
Balance at 1 April 2021 26 900 3,115 187 4,228
Amortisation expense 21 60 137 71 289
Balance at 31 March 2022 47 960 3,252 258 4,517
Net book value at 31 March 2022 165 231 917 142 1,455

5. SHARE CAPITAL
30 SEP 2022 (UNAUDITED) 30 SEP 2021 (UNAUDITED) 31 MAR 2022 (AUDITED)
NO. OF SHARES $’000 NO. OF SHARES $’000 NO. OF SHARES $’000
Balance at the beginning
of the period (fully paid) 1,273,801,599 46,649 1,107,653,565 37,469 1,107,653,565 37,469
Share capital issued - - 166,148,034 9,188 166,148,034 9,188
Capital raising costs paid - - - (55) - (54)
Shares pursuant to
CEO share plan - - - - - 46
Balance at the end
of the period 1,273,801,599 46,649 1,273,801,599 46,602 1,273,801,599 46,649

BLIS TECHNOLOGIES LIMITED
19
6. RECONCILIATION OF NET SURPLUS/ (DEFICIT) WITH CASHFLOWS
FROM OPERATING ACTIVITIES
SIX MONTHS SIX MONTHS 12 MONTHS
30 SEP 2022 30 SEP 2021 31 MAR 2022
(UNAUDITED) (UNAUDITED) (AUDITED)
$’000 $’000 $’000

NET SURPLUS / (DEFICIT) FOR THE PERIOD (1,689) (1,798) (2,707)
Adjustments for non-cash items:
Amortisation 127 126 289
Depreciation property, plant and equipment 64 69 144
Depreciation right of use assets 105 100 205
Foreign exchange loss / (gain) (51) 21 (105)
ECL provision - - -
PSR expense 17 20 27
Loss / (gain) on fair value of foreign exchange contracts 108 (5) 84
Loss on disposal of intangible assets 277 - 16
(1,042) (1,467) (2,047)
Movement in working capital
Trade and other receivables 1,242 404 (179)
Prepayments 121 139 10
Inventories 19 (247) 222
Trade and other payables 11 (241) (311)
1,393 55 (258)
NET CASH INFLOW / (OUTFLOW) FROM OPERATING ACTIVITIES 351 (1,412) (2,305)

HALF YEAR REPORT
20
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCAL STATEMENTS (CONTINUED)
7. CAPITAL COMMITMENTS, CONTINGENT ASSETS AND CONTINGENT
LIABILITIES
There are no capital commitments or material contingent assets or contingent liabilities as at 30 September 2022 (30
September 2021: $Nil).
8. INVESTMENT IN SUBSIDIARY
SUBSIDIARY PERCENTAGE HELD BALANCE PRINCIPAL
30 SEP 2022 30 SEP 2021 31 MAR 2022 DATE ACTICITY
Blis Functional Foods Limited 100% 100% 100% 31 March Non-trading

9. SEGMENTAL REPORTING
9.1 Operating Segments
The Group is internally reported as a single operating segment to the chief operating decision-maker.
9.2 Revenue from major products and services
SIX MONTHS SIX MONTHS 12 MONTHS
30 SEP 2022 30 SEP 2021 31 MAR 2022
(UNAUDITED) (UNAUDITED) (AUDITED)
$’000 $’000 $’000
The Group’s revenues from its major products and
services were as follows:
BLIS® products 4,290 3,893 8,965
Non-core business 74 341 488
Total revenue and other income 4,364 4,234 9,453
Non-core revenues include interest received and grant revenue.

BLIS TECHNOLOGIES LIMITED
21
9. SEGMENTAL REPORTING CONTINUED
9.3 Information about geographical areas
REVENUE FROM EXTERNAL CUSTOMERS NON CURRENT ASSETS
SIX MONTHS SIX MONTHS 12 MONTHS SIX MONTHS SIX MONTHS 12 MONTHS
30 SEP 22 30 SEP 21 31 MAR 22 30 SEP 22 30 SEP 21 31 MAR 22
(UNAUDITED) (UNAUDITED) (AUDITED) (UNAUDITED) (UNAUDITED) (AUDITED)
$’000 $’000 $’000 $’000 $’000 $’000
New Zealand 1,022 601 1,539 2,158 2,740 2,690
Asia Pacific (excl. NZ) 591 615 1,426 - - -
EMEA 2,063 1,252 2,857 - - -
North America 614 1,425 3,143 - - -
Total revenue 4,290 3,893 8,965 2,158 2,740 2,690
Grant revenue - 324 435 - - -
Interest revenue 74 17 53 - - -
Total revenue
and other income 4,364 4,234 9,453 2,158 2,740 2,690
Revenues for the six months to 30 September 2022 include $2,009k, $354k, and $225k, which arose from sales to the
Group’s three largest customers.
Revenues for the six months to 30 September 2021 include $1,252k, $540k, and $451k, which arose from sales to the
Group’s three largest customers.
Revenues for the year ended 31 March 2022 include $2,822k, $1,775k and $909k which arose from sales to the Group’s
three largest customers.
Web sales are allocated to the region where the end consumer is based.

10. SUBSEQUENT EVENTS
There were no subsequent events post 30 September 2022 (2021: Nil).

HALF YEAR REPORT
22
COMPANY NUMBER
1042367

ISSUED CAPITAL
1,273,801,599 Ordinary Shares

REGISTERED OFFICE
Blis Technologies Limited
Ground Floor, 442 Moray Place, Dunedin Central
Dunedin 9016

SHAREHOLDERS
Listed on the NZX main board

SHARE REGISTRAR
Link Market Services Limited
Deloitte Centre, 80 Queen Street
Auckland

DIRECTORS
G Plunket
A Balfour
A McCammon
Dr B Richardson
T Rönnlund
Dr A Stewart

CHIEF EXECUTIVE
B Watson
AUDITORS
Deloitte Limited
PO Box 1245
Dunedin

BANKERS
Bank of New Zealand
Dunedin

SOLICITORS
Anderson Lloyd
Private bag 1959
Dunedin 9054

Downie Stewart Lawyers
PO Box 1345
Dunedin 9054

Goldsmith Law
PO Box 40
Dunedin 9054

WEBSITE
www.blis.co.nz
FACEBOOK
www.facebook.com/BLISTechnologiesLtd
INSTAGRAM
www.instagram.com/blisprobiotics
COMPANY
DIRECTORY
FOR THE YEAR ENDED 30 SEPTEMBER 2022

BLIS TECHNOLOGIES LIMITED
23

HALF YEAR REPORT
24
www.blis.co.nz