Fitbug (LON:FITB) ran up a wider full-year loss last year after hefty legal fees and investment in its online coaching app, Kiqplan.
The maker of fitness and well-being programmes told investors it had made a pre-tax loss of £3.8mln in 2014.
That’s wider than the £2.7mln loss reported in the prior year and Fitbug said the figure reflects “significant investment in Kiqplan's development”.
It also blamed marketing expenses and the costs involved with legal action against US wearables firm Fitbit.
Fees from the trademark and patent cases with Fitbit, which are still ongoing, cost the company £742,000 last year.
Sales, however, continued to grow the business and revenue for the year totalled £2.3mln compared with only £749,000 a year earlier.
Chief executive Paul Landau said 2014 had been an “exciting and transformational year” for Fitbug.
The company's coaching framework, Kiqplan, is part of the Fitbug's aim to make an integrated health service with its wearable technology.
In 2014, it secured commercial deals with partners such as Samsung, Target, J Sainsbury (LON:SBRY), Argos and Jawbone.
Fitbug said Target and Sainsbury have made additional orders in 2015 and the company secured a new customer in December, Bestbuy.com.
“With a clear Kiqplan development path, a growing market opportunity, a strong team and a focus on product innovation, marketing and ultimately sales generation, we believe the Fitbug business has an exciting future ahead,” added Landau.
Fitbug shares were 8% lower at 5.4p.