[Part I – Financial Information](index=3&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) [Item 1 – Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201%20%E2%80%93%20Condensed%20Consolidated%20Financial%20Statements) The unaudited financial statements show an early-stage company with a growing net loss and stockholders' deficiency [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects a significant cash reduction and a shift to a stockholders' deficiency of $850,731 Condensed Consolidated Balance Sheet Highlights (as of Dec 31, 2018 vs. Mar 31, 2018) | Metric | Dec 31, 2018 (Unaudited) | Mar 31, 2018 (Audited) | | :--- | :--- | :--- | | **Assets** | | | | Cash | $25,738 | $843,643 | | Total Current Assets | $440,098 | $896,426 | | **Total Assets** | **$473,098** | **$929,426** | | **Liabilities & Equity** | | | | Accounts payable and accrued liabilities | $1,305,677 | $756,179 | | **Total Liabilities** | **$1,323,829** | **$756,179** | | **Total stockholders' (deficiency) equity** | **($850,731)** | **$173,247** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) The company generated initial revenue but incurred a higher net loss of $6.77 million for the nine-month period Statement of Operations Summary (Nine Months Ended Dec 31) | Metric | 2018 (Unaudited) | 2017 (Unaudited) | | :--- | :--- | :--- | | Revenue | $220,060 | $0 | | Net Revenue | $135,638 | $0 | | Total Operating Expenses | $6,905,143 | $4,932,260 | | Net Loss | ($6,769,505) | ($5,832,264) | | Loss Per Share (Basic and Diluted) | ($0.206) | ($0.186) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operations was $4.06 million, with financing activities providing $3.03 million in cash Cash Flow Summary (Nine Months Ended Dec 31, 2018 vs 2017) | Metric | 2018 (Unaudited) | 2017 (Unaudited) | | :--- | :--- | :--- | | Net cash used in operating activities | ($4,063,375) | ($3,236,926) | | Net cash provided by financing activities | $3,029,038 | $5,289,281 | | Net (decrease) increase in cash | ($1,034,337) | $2,052,355 | | Cash, end of period | $25,738 | $2,482,262 | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's emerging growth status, significant deficits, and reliance on a $25 million equity facility - The company is an emerging growth entity in early commercialization, with an **accumulated deficit of $33,216,935** and a **working capital deficit of $883,731**[27](index=27&type=chunk) - Management believes its funding sources, including a **committed equity purchase facility of up to $25 million**, are sufficient to support operations for at least one year[27](index=27&type=chunk) - The company adopted ASU 2017-11, which resulted in the **reclassification of derivative liabilities to equity**, reducing the derivative liability balance to zero[65](index=65&type=chunk)[68](index=68&type=chunk) - Subsequent to the quarter end, the company sold **$400,000 in non-convertible notes** and issued **324,500 common shares** under its equity financing facility[114](index=114&type=chunk)[115](index=115&type=chunk) [Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202%20%E2%80%93%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the initial commercialization of its Bioflux device, operating results, and liquidity position [Company Overview](index=27&type=section&id=Company%20Overview) Biotricity focuses on remote patient monitoring, launching its Bioflux MCT technology and deploying 244 devices - The company is focused on biometric data monitoring solutions for diagnostic and post-diagnostic care, starting with the mobile cardiac telemetry (MCT) market[119](index=119&type=chunk) - Commercial sales of the Bioflux MCT technology began in April 2018, and by December 31, 2018, the company had placed **244 devices in the field**[120](index=120&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) The company generated $220,060 in gross revenue and incurred a net loss of $6.8 million in its first nine months Revenue Breakdown (Nine Months Ended Dec 31, 2018) | Revenue Type | Amount | | :--- | :--- | | Device Sales Revenues | $86,800 | | Software Technology Service Fees | $133,260 | | **Total Gross Revenues** | **$220,060** | - Recurring software service fee revenues **grew over 200% in Q3 2018** compared to the immediately preceding quarter[156](index=156&type=chunk) Operating Expenses Comparison (Nine Months Ended Dec 31) | Expense Category | 2018 | 2017 | | :--- | :--- | :--- | | General & Administrative | $6,015,942 | $3,825,602 | | Research & Development | $889,201 | $1,106,658 | | **Total Operating Expenses** | **$6,905,143** | **$4,932,260** | [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) The company funds operations via a $25 million equity facility and believes it has sufficient liquidity for the next year - The company has an **accumulated deficit of $33,216,935** as of December 31, 2018, and has incurred recurring losses from operations[165](index=165&type=chunk) - A committed equity facility was established, allowing the company to raise up to **$25 million**, with **$3,039,480 in gross proceeds** raised during the nine months ended December 31, 2018[166](index=166&type=chunk) - Management estimates approximately **$4 million is required to grow the sales team** and believes existing cash and financing will be sufficient for the next twelve months[168](index=168&type=chunk)[169](index=169&type=chunk) [Item 3 – Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not required as the company qualifies as a smaller reporting company - Not required for a smaller reporting company[175](index=175&type=chunk) [Item 4 – Controls and Procedures](index=36&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes in internal controls - The Company's Chief Executive Officer and Chief Financial Officer concluded that **disclosure controls and procedures were effective** as of the end of the period[178](index=178&type=chunk) - **No changes in internal controls** over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[179](index=179&type=chunk) [Part II – Other Information](index=37&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) [Item 1 – Legal Proceedings](index=37&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) The company reported no legal proceedings during the period - None[182](index=182&type=chunk) [Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[185](index=185&type=chunk) [Item 3 – Defaults Upon Senior Securities](index=37&type=section&id=Item%203%20%E2%80%93%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[187](index=187&type=chunk) [Item 4 – Mine Safety Disclosures](index=37&type=section&id=Item%204%20%E2%80%93%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[189](index=189&type=chunk) [Item 5 – Other Information](index=37&type=section&id=Item%205%20%E2%80%93%20Other%20Information) The company reported no other information - None[191](index=191&type=chunk) [Item 6 – Exhibits](index=37&type=section&id=Item%206%20%E2%80%93%20Exhibits) This section lists exhibits filed with the report, including certifications and XBRL data files [Signatures](index=38&type=section&id=Signatures) The report was signed by the Chief Executive Officer and Chief Financial Officer on February 19, 2019 - The report was duly signed and authorized on **February 19, 2019**[194](index=194&type=chunk) - Signatories include **Waqaas Al-Siddiq (CEO)** and **John Ayanoglou (CFO)**[195](index=195&type=chunk)