Company Overview - Biotricity Inc. (BTCY) is part of the Medical sector, which includes 976 individual stocks and currently holds a Zacks Sector Rank of 6, indicating its relative strength among sector groups [2] - Biotricity Inc. has a Zacks Rank of 2 (Buy), suggesting a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] Performance Metrics - Over the past three months, the Zacks Consensus Estimate for BTCY's full-year earnings has increased by 17.9%, reflecting improved analyst sentiment and a stronger earnings outlook [4] - Year-to-date, BTCY has gained approximately 115.6%, significantly outperforming the average loss of 3.3% in the Medical group [4] Industry Comparison - Biotricity Inc. belongs to the Medical Info Systems industry, which consists of 44 companies and currently ranks 51 in the Zacks Industry Rank. This industry has seen a year-to-date gain of about 23.6%, indicating BTCY's strong performance relative to its peers [6] - In contrast, another stock in the Medical sector, Brainsway Ltd. Sponsored ADR (BWAY), has a year-to-date return of 57.5% and belongs to the Medical - Products industry, which ranks 96 and has gained 5.5% year to date [5][6] Investment Consideration - Investors interested in the Medical sector may want to monitor Biotricity Inc. and Brainsway Ltd. Sponsored ADR for their continued strong performance [7]

Core Viewpoint - Biotricity Inc. (BTCY) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Business Improvement Indicators - The upgrade in Zacks Rank for Biotricity suggests an improvement in the company's underlying business, which could lead to increased stock prices as investors respond positively [5][10]. - Over the past three months, the Zacks Consensus Estimate for Biotricity has increased by 17.9%, indicating a positive trend in earnings expectations [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7][9]. - Biotricity's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - For Q1 fiscal 2026, revenue increased by 21% to $3.9 million compared to $3.2 million in the prior year quarter [10] - Gross profit totaled $3.1 million, up 31.9% from $2.4 million in the prior year, with a gross profit margin improvement to 80.5% from 73.8% [11] - The company achieved positive EBITDA of $333,000, marking the first quarter in its history to reach this milestone [14] Business Line Data and Key Metrics Changes - Recurring revenue from technology as a service and usage-based subscriptions remained robust, driven by the popularity of the FDA cleared cardiac monitoring technology [10] - Technology fees accounted for 87% of total revenue, indicating strong customer retention and quality of support services [10] - Operating expenses decreased by 18.5% to $2.8 million from $3.5 million in the same period last year, with SG&A expenses down by 27.9% [12] Market Data and Key Metrics Changes - The company has expanded its market access through strategic partnerships with three major group purchasing organizations, providing access to approximately 90% of hospitals in the U.S. [5][13] - Regulatory approvals have been obtained in Canada, Saudi Arabia, Argentina, and other smaller markets, aligning with the strategy to promote accessible, high-quality care [6] Company Strategy and Development Direction - The company is focused on advancing its Cardiac AI cloud platform and pursuing FDA clearance for its AI clinical model, aiming to set new standards in cardiac care [4][5] - Strategic partnerships are being sought to further expand U.S. market access and capitalize on advantageous terms for solutions [6] - The company is diversifying into pulmonary neurology fields through partnerships with leading home-based diagnostic solutions [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's market position and the growing demand for its products dedicated to chronic cardiac disease prevention and management [16] - The focus on innovation and development continues to yield advancements in remote monitoring solutions, bringing the company closer to profitability [16] - The company is optimistic about maintaining margins, increasing growth, and achieving sustained profitability [19] Other Important Information - The net loss attributable to common stockholders for Q1 was $754,000, a significant improvement from a net loss of $6.9 million in the prior year [14][15] - The company has achieved positive free cash flows for the last four consecutive quarters, indicating a path towards profitability [13] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded with management expressing excitement about the next fiscal year and the milestone of moving to positive EBITDA [18][19]

Core Insights - Biotricity Inc. reported strong financial performance for Q1 of fiscal 2026, achieving a positive EBITDA for the first time, indicating a shift towards profitability and scalability of its business model [1][4][2] Financial Highlights - Revenue increased by 21% to $3.9 million compared to $3.2 million in Q4 FY24 [4] - Gross margin improved to 80.5% from 73.8% in the same quarter last year, driven by increased recurring technology fee revenue and operational efficiencies [4] - Net loss decreased significantly to $0.75 million, or $0.03 per share, from a net loss of $6.9 million, or $0.49 per share, in Q1-FY25, marking an 80.6% improvement [4] - Positive EBITDA of $333,337 was reported, an increase of 118.7% compared to the prior year quarter [4] - Recurring Technology Fees rose by 11.8% year-over-year to $3.4 million, also reflecting a 7.9% increase from the previous quarter [4] Operational Highlights - The company has established strategic alliances with three of the top Group Purchasing Organizations (GPOs), providing access to approximately 90% of all hospitals in the U.S. [2][4] - Biotricity is expanding its geographic footprint across 70% of the U.S., with penetration into thousands of physicians and hundreds of centers [4] - The company is working towards achieving regulatory approval in international markets, having already secured approvals in Canada, Saudi Arabia, and Argentina [4] Technological Advancements - The expansion of Biotricity's Cardiac AI Cloud platform is supported by partnerships with industry leaders, utilizing over 2 trillion beats of anonymized data to enhance diagnostic accuracy and clinic profitability [1][4] - The company continues to leverage AI technology and workflow automation to improve operational expenses, margins, and revenues [1]

Part I – Financial Information [Condensed Consolidated Interim Financial Statements](index=3&type=section&id=Item%201%20%E2%80%93%20Condensed%20Consolidated%20Interim%20Financial%20Statements) Presents Biotricity's unaudited interim financial statements, detailing balance sheets, operations, cash flows, and notes [Condensed Consolidated Interim Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Balance%20Sheets) Total assets increased to $6.04 million, liabilities grew to $36.84 million, and stockholders' deficiency widened to $32.80 million Condensed Consolidated Balance Sheet Highlights (in USD) | Balance Sheet Item | June 30, 2025 (Unaudited) | March 31, 2025 (Audited) | | :--- | :--- | :--- | | **Total Current Assets** | $5,144,540 | $4,639,292 | | **Total Assets** | $6,037,319 | $5,640,954 | | **Total Current Liabilities** | $21,806,321 | $20,636,148 | | **Total Liabilities** | $36,835,946 | $35,655,054 | | **Total Stockholders' Deficiency** | ($32,798,917) | ($32,014,390) | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Revenue increased to **$3.87 million**, gross profit rose to **$3.12 million**, and profit from operations reached **$281,945** Statement of Operations Summary (in USD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenue** | $3,873,993 | $3,201,743 | | **Gross Profit** | $3,116,800 | $2,363,168 | | **(Loss) Profit from Operations** | $281,945 | ($1,116,846) | | **Net Loss Attributable to Common Stockholders** | ($754,293) | ($6,948,292) | | **Loss Per Share, Basic and Diluted** | ($0.029) | ($0.490) | [Condensed Consolidated Interim Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) Net cash used in operating activities reduced to **$373,389**, with a net increase in cash of **$62,316**, ending with **$391,292** Cash Flow Summary (in USD) | Cash Flow Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash used in operating activities** | ($373,389) | ($1,494,240) | | **Net cash provided by (used in) financing activities** | $435,705 | $868,180 | | **Net decrease in cash during the period** | $62,316 | ($626,060) | | **Cash, end of period** | $391,292 | $100,731 | [Notes to the Condensed Consolidated Interim Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) Details accounting policies, going concern, revenue, convertible notes, derivatives, and equity changes - The company has incurred recurring losses, resulting in an accumulated deficit of **$140,196,078** and a working capital deficiency of **$16,661,781** as of June 30, 2025, raising substantial doubt about its ability to continue as a going concern[20](index=20&type=chunk) Revenue Breakdown (in USD) | Revenue Source | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Technology fees | $3,371,392 | $3,016,250 | | Device sales | $502,601 | $185,493 | | **Total** | **$3,873,993** | **$3,201,743** | - During the quarter ended June 30, 2025, the company issued **$850,000** in unsecured convertible promissory notes to private investors and repaid a **$100,000** note from the prior fiscal year[123](index=123&type=chunk) - Subsequent to the quarter end, between July 1 and August 14, 2025, the company issued an additional **$694,197** in convertible notes and used the proceeds to redeem **$500,000** of other convertible notes[213](index=213&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202%20%E2%80%93%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting positive profit from operations, revenue growth, and going concern [Company Overview](index=44&type=section&id=Company%20Overview) Biotricity is a medical technology company focused on cardiac diagnostics, offering biometric monitoring and AI tools - The company's business model focuses on earning utilization-based recurring technology fee revenue by placing devices with clinically focused, repeat users[219](index=219&type=chunk) - Biotricity is expanding its AI technology development in remote cardiac care, using proprietary AI to create predictive monitoring tools for new disease profiling and improved patient management[231](index=231&type=chunk) - The company has monitored over **two billion heartbeats**, benefiting over **28,000 patients** diagnosed with atrial fibrillation (afib), a leading cause of strokes[230](index=230&type=chunk) [Results of Operations](index=47&type=section&id=Results%20of%20Operations) Achieved first-ever profit from operations of **$281,945**, revenue up **21%** to **$3.9 million**, and gross margin at **80.5%** - The company reported its first-ever positive profit from operations and positive EBITDA for the quarter ended June 30, 2025[237](index=237&type=chunk)[250](index=250&type=chunk) Key Operational Results (in USD) | Metric | Q1 FY2026 (ended June 30, 2025) | Q1 FY2025 (ended June 30, 2024) | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $3,873,993 | $3,201,743 | +21.0% | | **Gross Profit** | $3,116,800 | $2,363,168 | +31.9% | | **Gross Margin** | 80.5% | 73.8% | +6.7 pts | | **Profit (Loss) from Operations** | $281,945 | ($1,116,846) | +$1,398,791 | | **Net Loss before Dividends** | ($671,977) | ($3,694,520) | +$3,022,543 | EBITDA and Adjusted EBITDA (in USD) | Metric | 3 months ended June 30, 2025 | 3 months ended June 30, 2024 | | :--- | :--- | :--- | | **EBITDA** | $333,337 | ($1,779,631) | | **Adjusted EBITDA** | $289,368 | ($1,056,380) | [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) Substantial doubt about going concern due to losses and working capital deficit, despite positive Free Cash Flow - Management has noted the existence of substantial doubt about the company's ability to continue as a going concern, and its independent auditor included an explanatory paragraph in its report[257](index=257&type=chunk) - The company had a cash balance of approximately **$0.4 million** as of June 30, 2025[269](index=269&type=chunk) Free Cash Flow (in USD) | Metric | 3 months ended June 30, 2025 | 3 months ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($373,389) | ($1,494,240) | | Add: Interest expense | $850,254 | $768,673 | | **Free Cash Flows** | **$476,865** | **($725,567)** | [Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Disclosure not required as Biotricity Inc. qualifies as a smaller reporting company - Not required for a smaller reporting company[282](index=282&type=chunk) [Controls and Procedures](index=54&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal controls - Based on an evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[284](index=284&type=chunk) - There were no changes in the Company's internal controls over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[285](index=285&type=chunk) Part II – Other Information [Legal Proceedings](index=55&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings - The company is not currently a party to any material legal proceedings[288](index=288&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities were reported during the period - None reported[290](index=290&type=chunk) [Other Information](index=55&type=section&id=Item%205%20%E2%80%93%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the quarter ended June 30, 2025[294](index=294&type=chunk) [Exhibits](index=55&type=section&id=Item%206%20%E2%80%93%20Exhibits) Lists exhibits filed with Form 10-Q, including CEO/CFO certifications and Inline XBRL financial data - The report includes the following exhibits: - Certifications pursuant to Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002 - Inline XBRL Document Set for the financial statements[296](index=296&type=chunk)

Core Viewpoint - Biotricity Inc. is set to announce continued revenue growth, improvements in margins, operational efficiency, and a shift to positive EBITDA during its upcoming financial results call [1] Financial Performance - The company has achieved a positive EBITDA, indicating improved financial performance [1] - The Fiscal 2026 First Quarter Financial Results and Business Update Call is scheduled for August 14, 2025, at 4:30 PM ET [2] Company Overview - Biotricity is focused on redefining the healthcare industry through innovative remote monitoring and diagnostic solutions [1] - The company aims to bridge the gap in remote monitoring and chronic care management, providing preventive and personal care solutions [3]

Core Insights - The design of an instrument indicates its purpose and effectiveness in meeting specific goals [1] Group 1 - Tim Worstall is a wholesaler of rare earth metals and an expert in scandium [1] - He is affiliated with the Adam Smith Institute in London and contributes to various media outlets [1]

Group 1 - The core viewpoint of the earnings call is that Biotricity has experienced a transformative fiscal year 2025, with significant advancements and strategic initiatives leading towards profitability and positive EBITDA [4]. - The company has made remarkable progress through innovation, strategic partnerships, and operational efficiency [4]. - A major achievement highlighted is the expansion of Biotricity's Cardiac AI cloud platform, supported by partnerships with industry leaders [5].

Core Insights - Biotricity Inc. has reported significant financial improvements for fiscal year 2025, showcasing a transformation driven by technology and operational efficiencies [2][8][9] Financial Performance - FY25 revenue increased by 14.3% year-over-year to $13.8 million, up from $12.1 million in FY24 [9] - Gross margin improved to 76.6% in FY25, compared to 69.3% in FY24, attributed to increased recurring technology fee revenue and operational efficiencies [8][9] - The net loss for FY25 decreased by 20% year-over-year to $11.9 million, or $0.56 per share, down from a net loss of $14.9 million, or $1.66 per share, in FY24 [9] - Positive Adjusted EBITDA of $438,260 was achieved in Q4 FY25, marking the first time in the company's history to reach EBITDA positivity [8][9] Operational Highlights - Recurring Technology Fees rose by 12% year-over-year to $12.6 million, significantly outpacing Device Sales revenue [7] - Operating expenses were reduced by 24.5% year-over-year, contributing to improved financial metrics [8] - The company is on track to achieve EBITDA breakeven and long-term profitability in FY26 [2][8] Strategic Developments - Biotricity has expanded its Cardiac AI Cloud platform through strategic partnerships, enhancing its market reach to approximately 90% of hospitals in the U.S. [4][3] - The company is pursuing FDA clearance for its AI clinical model, which is expected to revolutionize medical diagnostics and chronic care management [3][4] - Collaborative partnerships established during FY25 and FY26 are aimed at capitalizing on new market channels and value-based care programs [4] Market Position - Biotricity is positioned within a total addressable market of $35 billion, focusing on innovative and accessible cardiac care solutions [15] - The company has secured strategic alliances with three of the top Group Purchasing Organizations (GPOs), representing a significant portion of U.S. hospitals [15]

Part I [Business](index=4&type=section&id=ITEM%201.%20BUSINESS) Biotricity Inc. provides biometric data monitoring solutions for cardiac care, leveraging an insourcing model and recurring revenue from FDA-cleared products - The company's core business is providing remote cardiac monitoring solutions (Bioflux®, Biocore®) to medical professionals using an insourcing model, charging recurring technology service fees[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk) - Biotricity is expanding its AI technology development, leveraging a proprietary cardiac AI model built with Google's TensorFlow and AWS infrastructure to improve disease profiling and patient management[27](index=27&type=chunk)[28](index=28&type=chunk) - The company has expanded its commercial sales efforts to **35 states** and is pursuing regulatory approvals in key international jurisdictions for future growth[14](index=14&type=chunk) [Market Overview and Opportunity](index=6&type=section&id=ITEM%201.%20BUSINESS%23Market%20Overview%20and%20Opportunity) The company targets the growing cardiovascular and remote monitoring markets, aiming to disrupt them with superior technology and an insourced business model - The global ECG equipment market is projected to grow at a CAGR of **6.5%** from 2023 to 2030, with the US market valued at **$2.01 billion** in 2022[32](index=32&type=chunk) - Mobile Cardiac Outpatient Monitoring (COM) tests have an estimated average reimbursement rate of approximately **$850 per test** in key US markets[34](index=34&type=chunk) - The chronic care management market is projected to reach **$8.7 billion** in the US by 2027 (**18% CAGR**), and the remote patient monitoring (RPM) market is projected to reach **$96.67 billion** by 2030 (**17.6% CAGR**)[45](index=45&type=chunk)[46](index=46&type=chunk) [Products and Technology](index=10&type=section&id=ITEM%201.%20BUSINESS%23Products%20and%20Technology) Biotricity offers a comprehensive product ecosystem for cardiac monitoring and chronic care, including advanced ECG devices and a disease management platform, with plans for future market expansion - The flagship Biocore® Pro is an advanced ECG device for the COM market with **3 channels** and built-in cellular connectivity[60](index=60&type=chunk)[61](index=61&type=chunk) - The Biocare® platform, combined with the Bioheart® monitor and Biokit®, provides a comprehensive disease management solution for cardiovascular patients, a unique offering in a space primarily focused on diabetes[66](index=66&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) - Future product development includes Bionatal for fetal monitoring and leveraging an NIH grant to investigate cardiac anomalies in chronic kidney disease patients[69](index=69&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) [Competition](index=12&type=section&id=ITEM%201.%20BUSINESS%23Competition) Biotricity competes in the COM and Holter markets against major players, differentiating itself through superior 3-channel technology and a unique insourced business model - Primary COM competitors include Philips Biotel and Boston Scientific, who operate on an outsourced service model, whereas Biotricity uses an insourced model empowering physicians[74](index=74&type=chunk)[75](index=75&type=chunk) - In the Holter patch market, competitors like iRhythm Technologies and BardyDx offer **1-channel**, non-connected devices, while Biotricity's Biocore is a connected, **3-channel** solution[81](index=81&type=chunk)[82](index=82&type=chunk) - The company believes its competitive advantage lies in its superior technology (e.g., **3-channel**, connected devices) and its disruptive insourcing business model, which creates financial and clinical benefits for providers[82](index=82&type=chunk)[55](index=55&type=chunk) [Government Regulation](index=15&type=section&id=ITEM%201.%20BUSINESS%23Government%20Regulation) Biotricity's Class II medical devices are subject to extensive FDA and international regulations, requiring 510(k) clearance and ongoing compliance with quality and reporting standards - The company's products are classified as **Class II medical devices** and have received the necessary **510(k) clearances** from the FDA for commercial distribution in the U.S.[96](index=96&type=chunk)[104](index=104&type=chunk) - Post-market, the company must comply with numerous FDA regulations, including Quality System Regulation (QSR), Medical Device Reporting (MDR), and rules governing product modifications and advertising[94](index=94&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - The company is also subject to foreign regulations and has implemented a quality management system compliant with **ISO 13485:2013** to facilitate international market access[109](index=109&type=chunk)[110](index=110&type=chunk) [Risk Factors](index=19&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces significant risks including limited operating history, ongoing net losses, going concern doubts, dependence on physician adoption, regulatory and reimbursement challenges, intense competition, and intellectual property issues - The company has a history of net losses, an accumulated deficit of **$138.9 million** as of March 31, 2025, and its auditors have expressed substantial doubt about its ability to continue as a going concern[122](index=122&type=chunk)[176](index=176&type=chunk) - Business success is highly dependent on convincing physicians to use its solutions, which is influenced by factors like reimbursement adequacy, product reliability, and pricing[130](index=130&type=chunk)[131](index=131&type=chunk) - The company is subject to extensive government regulation (FDA), and its revenue is vulnerable to changes in third-party reimbursement policies from Medicare and commercial payors[133](index=133&type=chunk)[143](index=143&type=chunk)[149](index=149&type=chunk) - The company relies on trade secrets and has limited patent protection, exposing it to risks of intellectual property litigation and competition from others developing similar technologies[182](index=182&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk) [Cybersecurity](index=36&type=section&id=ITEM%201C.%20CYBERSECURITY) Biotricity integrates cybersecurity risk management into its overall processes, with the VP of Technology overseeing efforts, third-party consultants assisting, and board audit committee oversight - The company has integrated cybersecurity risk management into its overall risk processes, with oversight from the board's audit committee[216](index=216&type=chunk)[222](index=222&type=chunk) - The Vice President of Technology is primarily responsible for managing cybersecurity risk, and the company engages third-party consultants to assist in designing, implementing, and monitoring safeguards[219](index=219&type=chunk)[220](index=220&type=chunk) - To date, the company has not experienced any cybersecurity incidents that have materially impaired its operations or financial condition[221](index=221&type=chunk) [Properties](index=37&type=section&id=ITEM%202.%20PROPERTIES) The company's principal executive office is a leased 8,300 square foot facility in Redwood City, California, deemed adequate for current operations - The company's main office is a leased space of approximately **8,300 sq. ft.** at 203 Redwood Shores Parkway, Suite 600, Redwood City, California[225](index=225&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=38&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%2C%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) Biotricity's common stock trades on the OTCQB, with 26.57 million shares outstanding, and the company pays dividends only on Series A preferred shares while maintaining equity incentive plans - The company's common stock is traded on the OTCQB under the symbol **"BTCY"**[228](index=228&type=chunk) - As of July 15, 2025, there were **26,567,769 shares** of common stock outstanding[7](index=7&type=chunk)[229](index=229&type=chunk) - The company pays a **12% annual dividend** on its Series A preferred shares but does not anticipate paying cash dividends on its common stock[231](index=231&type=chunk) Equity Compensation Plan Information as of March 31, 2025 | Plan Category | (a) Number of securities to be issued upon exercise of outstanding options, warrants and rights | (b) Weighted average exercise price of outstanding options, warrants and rights | (c) Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 3,953,442 | $ 3.0525 | 4,849,418 | | Warrants granted to Directors and Officers | 736,216 | $ 2.2943 | - | | **Total** | **4,689,658** | **5.3468** | **4,849,418** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Biotricity's FY2025 revenue grew to **$13.8 million** with improved gross margin and reduced operating losses, though liquidity remains critical with substantial doubt about its going concern ability [Results of Operations](index=43&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS%23Results%20of%20Operations) In FY2025, revenue increased by **14.3%** to **$13.8 million**, gross margin expanded to **76.6%**, and operating loss significantly narrowed to **$2.4 million** due to reduced expenses Fiscal Year 2025 vs 2024 Operating Results | | 2025 ($) | 2024 ($) | Period Change ($) | | :--- | :--- | :--- | :--- | | **Revenue** | **13,790,294** | **12,063,345** | **1,726,949** | | Gross profit | 10,564,491 | 8,356,281 | 2,208,210 | | *Gross Margin %* | *76.6%* | *69.3%* | *7.3%* | | Total operating expenses | 12,968,538 | 17,184,550 | (4,216,012) | | Loss from operations | (2,404,047) | (8,828,269) | 6,424,222 | | Net loss before dividends | (8,421,179) | (14,094,283) | 5,673,104 | | Net loss attributable to common stockholders | (11,246,320) | (14,928,960) | 3,682,640 | Q4 2025 vs Q4 2024 Operating Results | | Q4 2025 ($) | Q4 2024 ($) | Period Change ($) | | :--- | :--- | :--- | :--- | | **Revenue** | **3,702,597** | **3,178,311** | **524,286** | | Gross profit | 2,978,181 | 2,272,313 | 705,868 | | *Gross Margin %* | *80.4%* | *71.5%* | *8.9%* | | Loss from operations | (810,547) | (3,044,336) | 2,233,789 | - The increase in gross margin to **76.6%** was primarily due to a higher percentage of technology sales, which have a higher margin (**79.8%** in FY25 vs. **75%** in FY24), and improved operational efficiency[262](index=262&type=chunk) - Selling, general and administrative expenses decreased by **$3.8 million** in FY25, attributed to increased monitoring of spending efficiency over sales commissions and fixed G&A costs[265](index=265&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS%23Liquidity%20and%20Capital%20Resources) Biotricity faces critical liquidity challenges with **$0.4 million** cash and a **$15.9 million** working capital deficit, necessitating additional financing to address going concern doubts and fund operations - As of March 31, 2025, the company had only **$365,145** in cash and a working capital deficit of **$15.9 million**, raising substantial doubt about its ability to continue as a going concern[176](index=176&type=chunk)[279](index=279&type=chunk)[282](index=282&type=chunk) Cash Flow Summary (Fiscal Years Ended March 31) | | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net cash used in operating activities | (2,401,397) | (6,693,912) | | Net cash used in investing activities | — | — | | Net cash provided by financing activities | 1,929,253 | 6,741,685 | | **Net (decrease) increase in cash** | **(472,144)** | **47,773** | - The company will require additional funds to support its business plan, estimating a need for an additional **$10 million** to fund operations and sales expansion[156](index=156&type=chunk) - In November 2024, the company amended its term loan to receive an additional **$635,000** in proceeds and capitalized approximately **$1.5 million** in interest, while also issuing **600,000 warrants** to the lender[288](index=288&type=chunk) [Critical Accounting Policies](index=50&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS%23Critical%20Accounting%20Policies) Biotricity's critical accounting policies involve significant estimates for revenue recognition (ASC 606), fair value of financial instruments, stock-based compensation, and a full valuation allowance against deferred tax assets due to historical losses - Revenue is recognized under **ASC 606**, with a distinction between technology fees and device sales. For FY2025, technology fees constituted the majority of revenue[300](index=300&type=chunk)[301](index=301&type=chunk) Revenue Breakdown (Fiscal Year Ended March 31) | | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Technology fees | 12,591,036 | 11,249,113 | | Device sales | 1,199,258 | 814,232 | | **Total** | **13,790,294** | **12,063,345** | - The company uses significant estimates for the fair value of derivative liabilities associated with convertible debt and preferred stock, stock options, and warrants, which can materially impact financial results[307](index=307&type=chunk)[310](index=310&type=chunk) - A full valuation allowance is recorded against deferred tax assets due to the company's history of losses, making it not more likely than not that these assets will be realized[317](index=317&type=chunk)[663](index=663&type=chunk) [Controls and Procedures](index=57&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls during the last quarter - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report (March 31, 2025)[347](index=347&type=chunk)[350](index=350&type=chunk) - There were no changes in internal controls over financial reporting during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, these controls[353](index=353&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=59&type=section&id=ITEM%2010.%20DIRECTORS%20AND%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) The company's leadership includes CEO Waqaas Al-Siddiq and CFO John Ayanoglou, supported by a Board with three independent directors and established governance committees and policies - The executive team is led by Waqaas Al-Siddiq (President, CEO, Chairman) and John Ayanoglou (CFO)[359](index=359&type=chunk) - The Board has **three independent directors** (David Rosa, Ron McClurg, Jainal Bhuiyan) and has established Audit, Compensation, and Nominating committees[372](index=372&type=chunk)[380](index=380&type=chunk) - The company has adopted a clawback policy allowing for the recovery of incentive-based compensation from executives in the event of a material accounting restatement[369](index=369&type=chunk) [Executive Compensation](index=64&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION) In FY2025, CEO Waqaas Al-Siddiq's total compensation was **$732,000**, and CFO John Ayanoglou's was **$738,023**, both with employment agreements outlining salary, bonus, and severance terms Summary Compensation Table (Fiscal Years 2025 & 2024) | Name and Principal Position | Fiscal Year | Salary ($) | Bonus ($) | Option/Warrant Awards(1) ($) | All Other Compensation ($) | Total ($) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Waqaas Al-Siddiq** | 2025 | 480,000 | 240,000 | - | 12,000 | **732,000** | | *Chief Executive Officer* | 2024 | 480,000 | 240,000 | 522,153 | 12,000 | **1,254,153** | | **John Ayanoglou** | 2025 | 300,000 | 250,000 | 176,023 | 12,000 | **738,023** | | *Chief Financial Officer* | 2024 | 300,000 | 250,000 | - | 12,000 | **562,000** | - CEO Waqaas Al-Siddiq has an employment agreement with a base salary of **$480,000** for FY2025 and eligibility for a bonus up to **50%** of his salary[387](index=387&type=chunk) [Security Ownership of Certain Beneficial Owners and Management](index=67&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT) As of July 14, 2025, CEO Waqaas Al-Siddiq beneficially owned **8.02%** of common stock, while all directors and executive officers as a group owned **12.58%** Beneficial Ownership as of July 14, 2025 | Name of Beneficial Owner | Shares Beneficially Owned | % of Shares Beneficially Owned | | :--- | :--- | :--- | | Waqaas Al-Siddiq (1) | 2,248,723 | 8.02% | | Sohaira Siddiqui | 1,916,910 | 6.84% | | Mohammad Siddiqui | 1,898,159 | 6.77% | | Rizwana Siddiqui | 1,790,434 | 6.39% | | Rizwan Rahman | 1,790,434 | 6.39% | | Mohamed Abdi | 1,790,434 | 6.39% | | All directors and executive officers as a group (5 persons) | 3,401,573 | 12.58% | [Principal Accountant Fees and Services](index=68&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) For FY2025, the company incurred **$118,447** in total fees from its principal accountant, exclusively for audit services, a decrease from the prior fiscal year Accountant Fees (Fiscal Years Ended March 31) | Fee Category | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Audit Fees | 118,447 | 155,377 | | Audit-Related Fees | - | - | | Tax Fees | - | - | | All Other Fees | - | - | | **Total Fees** | **118,447** | **155,377** | Part IV [Exhibits and Financial Statement Schedules](index=69&type=section&id=ITEM%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section details all exhibits filed with the Form 10-K, including corporate foundational documents, financing agreements, equity plans, employment contracts, and officer certifications - Filed exhibits include foundational corporate documents, details of equity and debt financing instruments, executive employment agreements, and required SEC certifications[404](index=404&type=chunk)[405](index=405&type=chunk)[407](index=407&type=chunk)