Behavioural advertising group Phorm is losing more than £1 million a month because internet service providers (ISPs) are delaying its service.
The targeted advertising specialist has revealed that it lost £30 million in 2008 and will not be able to earn revenue until ISPs decide to deploy its Webwise programme.
Phorm has courted controversy since it hit the headlines last year, with some claiming that its advertising technology contravenes EU rules on consumer privacy.
Webwise is used directly by ISPs to monitor the browsing habits of their broadband customers, although the company claims its technology is safe and secure.
In a statement, Phorm Chief Executive Kent Ertugrul highlighted the factors that will affect the organisation's cashflow in the year ahead.
Among them were "the timing of commercial deployment of the group's services; take-up rates by consumers, publishers and advertisers and the net revenue per advert that will flow to the group."
In the UK, BT, Virgin Media and TalkTalk have signed up to Webwise and intend to allow Phorm to monitor the browsing habits of their broadband customers.