Fitbug Holdings (LON:FITB) unveiled a turnaround drive as it blamed an unsuccessful previous consumer sales strategy for wider losses.
The supplier of wearable fitness monitoring gear said it was refocusing on business-to-business (B2B) sales after finding that selling to consumers was "unsustainable".
Pre-tax losses for 2015 nearly doubled to £6.3mln from £3.8mln a year earlier as annual revenue dropped to £1.3mln from £2.3mln last time.
The losses included one-off items such as a £736,000 stock impairment, up from £48,000 a year ago, and a write-off of software development costs totalling £569,000.
There were also legal costs of £594,000, a share-based payment of £473,000 and a returns provision of £216,000.
Chief executive Anna Gudmundson, who joined the company last August, said it would focus on the service and software opportunity in the B2B market.
She said the previous direct-to-consumer retail strategy had failed to achieve the results anticipated.
Gudmundson said 2016 trading had started well with first quarter corporate wellness sales significantly higher than in the same period in 2015.
She said corporate budgets for employee health were rising and Fitbug had a product that allowed company employees to get "fitter, healthier and happier".
Sales of wearable trackers would remain a significant revenue stream for some time to come, Gudmundson said.
But she added: "Our vision is to reposition the company from the market's current perception of a supplier of cost-effective wearables, into a software as a service provider in health and wellness technology."