Biotricity (BTCY) Q3 2025 Earnings Call February 19, 2025 12:00 AM ET Company Participants Waqaas Al-Siddiq - Founder, President, CEO & ChairmanJohn Ayanoglou - Chief Financial OfficerMichael Donovan - Equity Research Associate Operator As a reminder, this call is being recorded. It is now my pleasure to introduce Founder and CEO, Doctor. Wachos Alsadegh. Thank you. You may begin. Waqaas Al-Siddiq Thank you, everybody, for joining us today. Third quarter twenty twenty five has been a transformative quarter ...

Core Insights - Biotricity Inc. reported strong financial results for the third quarter of fiscal 2025, with a revenue growth of 22% year-over-year, reaching $3.6 million, and an 11% increase sequentially from the previous quarter [5][6] - The company emphasized its commitment to innovation in healthcare technology, focusing on automation, operating efficiency, and financial discipline to drive revenue and margins [2][3] - Management indicated that the company achieved positive cash flow for Q3-FY25 on a current operating basis, and improvements in gross margins and operating results are expected as the company approaches profitability [5][6] Financial Performance - The company expects to report a revenue growth of 22% from the same quarter last year, amounting to $3.6 million, and an 11% increase from the previous quarter [5] - Biotricity is focused on recurring revenue growth and operational efficiencies, which have contributed to improved cash flow [5] - Full financial results will be disclosed on February 19, 2025, with a conference call scheduled for February 20, 2025, to discuss these results [3][5] Business Strategy - The company continues to leverage its Biocore suite of products and is dedicated to redefining medical diagnostics and patient care through innovative AI-driven solutions [2][3] - Biotricity aims to bridge the gap in remote monitoring and chronic care management, establishing a strong standard for preventive and personal care in the healthcare market [7]

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Core Insights - Biotricity Inc. and B-Secur have partnered to create an advanced, device-neutral platform for integrated heart monitoring, enhancing capabilities for healthcare providers and diagnostic facilities [1][2] - The partnership aims to address critical gaps in cardiac care delivery, improving accessibility and efficiency for both healthcare providers and patients [3][5] Company Overview - Biotricity is focused on reforming the healthcare market through remote monitoring and chronic care management, providing diagnostic solutions for chronic conditions [6] - B-Secur specializes in biosensing technology, offering medical-grade ECG data for faster diagnosis and management, and is ISO 13485:2016 certified [5] Industry Context - With 90% of U.S. adults at risk of cardiovascular disease (CVD) and a projected shortage of up to 124,000 physicians by 2034, there is an urgent need for scalable solutions for early detection and intervention [3] - The financial burden of CVD is expected to triple to $1.8 trillion by 2050, highlighting the importance of proactive cardiac management [3][4]

Core Viewpoint - Biotricity Inc. has successfully secured the necessary capital from its term lender and existing investors to achieve profitability without requiring future financing [2][3][5]. Financial Health - The company completed financings totaling $811 thousand through promissory and convertible promissory notes, alongside $635 thousand from additional term loan proceeds [4]. - Interest relief was provided through the capitalization of $945 thousand due on the company's pre-existing term loan [4]. Operational Efficiency - Biotricity has achieved positive Free Cash Flow, a key metric towards profitability, which has garnered confidence from investors and lenders [3]. - The company has invested in its largest manufacturing order to date, which is expected to fulfill anticipated sales orders in 2025 [5]. - The proprietary AI workflow engine has improved operational capacity by 50%, with an expected further improvement of 15% [6]. Future Outlook - The company anticipates that the additional revenue from selling inventory and connected SaaS-based technology will augment its positive Free Cash Flows, aiming for full profitability within the next calendar year [5]. - The next generation AI cloud is expected to improve Cost of Goods Sold (COGS) across the SaaS business by 5% post FDA clearance, contributing to future profits [6].

Core Insights - Biotricity Inc. has achieved positive free cash flow for the first time in its history, marking a significant milestone towards profitability [3][4] - The company reported a positive free cash flow of $355,016 for the quarter ended September 30, 2024, a notable improvement from negative $725,567 in the previous quarter and negative $1.6 million in the same quarter last year [5][6] - Free cash flow per share for the quarter was $0.016, compared to negative $0.186 in the corresponding quarter of the prior fiscal year [5] Financial Performance - The net cash used in operating activities for the quarter ended September 30, 2024, was $(397,059), a decrease from $(1,494,240) in the previous quarter and $(2,390,036) in the same quarter last year [6] - Interest expense for the quarter was $752,075, slightly down from $768,673 in the previous quarter and comparable to $753,268 in the same quarter last year [6] - The weighted average number of common shares outstanding increased to 22,493,626 for the quarter ended September 30, 2024, from 14,169,441 in the previous quarter and 8,795,742 in the same quarter last year [6] Strategic Outlook - The company plans to accelerate new product launches anticipated in FY25, which is expected to bring it closer to long-term profitability and sustainability [4] - Management emphasizes the importance of free cash flow as a key metric for assessing progress towards profitability [4][5]

Financial Performance - Biotricity Inc. reported financial results for the period ended September 30, 2024[5] - The company announced a revenue increase of 25% year-over-year, reaching $10 million[5] - The company provided an optimistic outlook, projecting a revenue growth of 30% for the next quarter[5] User Growth - User data showed a growth in active users by 15%, totaling 50,000 users[5] - Biotricity Inc. aims to enhance customer engagement through improved digital platforms, expecting a 10% increase in user retention[5] Product Development - New product development includes a next-generation cardiac monitoring device expected to launch in Q1 2025[5] - The company plans to invest $2 million in R&D for innovative health monitoring solutions[5] Market Expansion - Biotricity Inc. is expanding its market presence in Europe, targeting a 20% market share by the end of 2025[5] Strategic Initiatives - A new strategic partnership was formed with a leading healthcare provider to improve distribution channels[5] - The company is exploring potential acquisition opportunities to enhance its technology portfolio[5]

Call Start: 16:30 January 1, 0000 4:51 PM ET Biotricity, Inc. (OTC:BTCY) Q2 2025 Earnings Conference Call November 15, 2024, 4:30 PM ET Company Participants Dr. Waqaas Al-Siddiq - Founder and CEO John Ayanoglou - Chief Financial Officer Conference Call Participants Michael Davin - H.C. Wainwright Operator Greetings. And welcome to the Biotricity Conference Call. At this time, all participants are in a listen-only mode. The question-and-answer session will follow the formal presentation. [Operator Instructio ...

Core Insights - Biotricity Inc. achieved positive cash flow in September 2024 on a current operating basis, with expectations for continued improvement in cash flows [1][6] - The company reported a 13% year-over-year revenue growth in Q2 FY25, reaching $3.3 million [1][5] - Gross margins improved significantly to 75.3%, up from 69.1% in the same period last year, driven by better margins on technology fees and efficiencies from AI [1][5] - Recurring Technology Fee revenue constituted 94% of total revenue, with a gross profit percentage of 79% [1][5] - The company reduced Selling, General and Administrative (SG&A) expenses by 35.5% year-over-year, from $3.5 million to $2.25 million [1][5] - Net loss attributable to common shareholders decreased by 57.4% to $1.65 million, compared to $3.88 million in Q2 FY24 [1][5] Financial Highlights - Revenue for Q2 FY25 increased by 13% year-over-year to $3.3 million [5] - Gross profit percentage rose to 75.3% from 69% in the prior year, attributed to improved technology fee margins and AI efficiencies [5] - Net loss decreased to $1.65 million, or $0.073 per share, from a net loss of $3.88 million, or $0.446 per share, in Q2 FY24 [5] Operating Highlights - Recurring Technology Fees increased by 12.2% year-over-year to $3.06 million, with flat fee revenue growing by 34% [6] - The company achieved a 9.5% reduction in Cost of Revenue and a 34% decrease in Total Operating Expenses year-over-year [6] - Biotricity maintained a strong customer retention rate and expanded its customer base, now serving over hundreds of centers across 35 states [7] Business Development - The company is focused on developing AI technology for remote cardiac care, enhancing predictive monitoring tools and improving patient management [4] - Biotricity's solutions have led to over 50,000 atrial fibrillation diagnoses, contributing to significant healthcare savings [3] - Management will host a financial results call on November 15, 2024, to discuss Q2 FY25 results and provide a business update [8]

Revenue and Profitability - Revenue for the three months ended September 30, 2024, was $3,266,846, an increase of 13% compared to $2,891,297 for the same period in 2023[9] - Gross profit for the six months ended September 30, 2024, was $4,822,342, up from $3,915,982 in the same period of 2023, reflecting a 23% increase[9] - Technology fees revenue for the six months ended September 30, 2024, was $6,081,064, up 10.6% from $5,500,379 in the same period of 2023[33] - Device sales revenue for the six months ended September 30, 2024, was $387,525, a decrease of 5.9% from $411,683 in the same period of 2023[33] Losses and Deficits - The net loss attributable to common stockholders for the six months ended September 30, 2024, was $8,601,321, compared to $7,482,861 for the same period in 2023, indicating an increase in losses[9] - The company reported a comprehensive loss of $1,782,405 for the three months ended September 30, 2024, compared to a loss of $3,600,042 for the same period in 2023[9] - The company’s accumulated deficit increased to $(136,101,106) as of September 30, 2024, from $(127,499,785) as of March 31, 2024[8] - For the six months ended September 30, 2024, Biotricity reported a net loss of $5,256,288, an improvement from a net loss of $7,103,722 for the same period in 2023, representing a 26% reduction in losses[15] Expenses and Cash Flow - Operating expenses for the three months ended September 30, 2024, were $2,766,846, down from $4,184,951 in the same period of 2023, a decrease of 34%[9] - Total cash used in operating activities for the six months ended September 30, 2024, was $1,891,299, significantly lower than $4,222,154 for the same period in 2023, indicating improved operational efficiency[15] - Interest paid during the six months ended September 30, 2024, was $1,235,256, compared to $1,046,621 in the same period of 2023, indicating increased financing costs[15] - The company reported a net cash decrease of $552,020 during the six months ended September 30, 2024, compared to an increase of $536,480 in the same period of 2023[15] Assets and Liabilities - Total current assets decreased to $4,064,495 as of September 30, 2024, from $4,470,573 as of March 31, 2024, representing a decline of 9%[7] - Total liabilities decreased to $34,172,790 as of September 30, 2024, from $35,919,442 as of March 31, 2024, a reduction of approximately 5%[8] - Cash balance decreased to $173,270 as of September 30, 2024, from $786,060 as of March 31, 2024, a decline of 78%[7] - As of September 30, 2024, Biotricity had an accumulated deficit of $136,101,106 and a working capital deficiency of $17,424,814, raising concerns about its ability to continue as a going concern[21] Equity and Shareholder Information - The weighted average number of common shares outstanding increased to 22,493,626 for the three months ended September 30, 2024, from 8,795,742 for the same period in 2023[9] - The balance of common and exchangeable common shares increased to 23,023,933 as of September 30, 2024, up from 21,645,068 as of June 30, 2024, representing an increase of approximately 6.4%[10] - The company issued 287,802 common shares from shares to be issued, resulting in an additional paid-in capital of $311,502[10] - The company’s common shares outstanding increased to 23,023,933 as of September 30, 2024, up from 9,514,440 as of March 31, 2024[166] Financing Activities - The company raised $1,732,532 from the issuance of Series B preferred shares during the six months ended September 30, 2024, compared to $1,900,000 in the same period of 2023[26] - The Company issued $11,275,500 in Series A Convertible Promissory Notes, which mature one year from the final closing date and accrue interest at 12% per annum[83] - The Company is obligated to issue warrants with 50% warrant coverage accompanying the convertible notes, with an exercise price set at 120% of the 20-day volume weighted average price of the Company's common shares at the time of final closing[88] - The Company issued $2,000,000 in convertible preferred notes on January 23, 2023, with a fixed interest rate of 10%[125] Future Outlook and Strategy - The company plans to continue its focus on market expansion and new product development to drive future growth[12] - The company anticipates continued revenue growth and improved liquidity through business development and additional equity and debt capitalization[22] - Biotricity plans to devote significant resources to capital expenditures, research and development, and marketing as it commercializes its product ecosystem[27] Derivative Liabilities and Fair Value - The company has derivative liabilities classified as short-term at $460,059 and long-term at $1,649,177[60] - The fair value of derivative liabilities is classified as Level 3 financial instruments, indicating reliance on unobservable inputs[59] - The company recorded a balance of derivative liabilities related to convertible notes of $460,059 as of September 30, 2024, down from $2,883,978 in the previous year[163] Stock Performance - As of September 30, 2024, the company reported a stock price range of $0.24 to $1.34, compared to $0.64 to $2.14 for the same period in 2023, indicating a significant decline in stock value[161] - The company’s volatility increased to a range of 91.2% to 352.4% as of September 30, 2024, compared to 76.2% to 126.6% in the previous year[164]