Biotricity (BTCY) - 2020 Q1 - Quarterly Report

Financial Performance - Total revenue for the three months ended June 30, 2019, was $327,000, a significant increase from $17,660 in the same period of 2018, representing a growth of approximately 1,752%[16] - Net revenue for the same period was $214,914, compared to $17,660 in 2018, indicating a growth of approximately 1,216%[16] - The net loss for the three months ended June 30, 2019, was $2,089,601, a decrease from a net loss of $2,420,516 in the same period of 2018, showing an improvement of about 13.6%[16] - The company reported a comprehensive loss of $2,112,187 for the three months ended June 30, 2019, compared to $2,523,165 in 2018, indicating a reduction of approximately 16.3%[16] - The net loss for the three months ended June 30, 2019, was $2,089,601, with a loss per share of $0.060[146] Assets and Liabilities - Total current assets increased to $600,698 as of June 30, 2019, from $457,660 as of March 31, 2019, reflecting a growth of about 31.2%[11] - Total liabilities rose to $4,312,330 as of June 30, 2019, compared to $2,268,341 as of March 31, 2019, marking an increase of approximately 90%[13] - The total stockholders' deficiency increased to $(3,265,396) as of June 30, 2019, from $(1,777,681) as of March 31, 2019, indicating a deterioration of approximately 83.5%[12] - As of June 30, 2019, the company had an accumulated deficit of $37,129,096 and a working capital deficiency of $3,491,691[33] Cash Flow - Cash on hand decreased to $47,750 as of June 30, 2019, from $63,647 as of March 31, 2019, representing a decline of about 25%[11] - Net cash used in operating activities was $1,328,375, compared to $1,209,549 in the prior period, reflecting an increase of about 9.8%[23] - Net cash provided by financing activities was $1,329,802 for the three months ended June 30, 2019, compared to $550,835 for the same period in 2018[158] Funding and Financing - The company raised $1,315,799 through the issuance of convertible promissory notes and short-term loans, contributing to a net cash provided by financing activities of $1,329,802, up from $550,835 in the previous period[23] - The company has raised $3,638,010 in funding from a private equity agreement, with a commitment to purchase up to $25 million in additional shares[33] - The company issued promissory notes and other short-term funding totaling $2,183,498 as of June 30, 2019, with an additional $1,514,115 raised subsequently[33] Operational Highlights - The company launched its first commercial sales program during the year ended March 31, 2019, utilizing an experienced in-house sales team[33] - The company is in the early stages of commercializing its first product while concurrently developing other proposed products[33] - The company aims to deliver innovative remote monitoring solutions in the multi-billion-dollar diagnostic mobile cardiac telemetry market[113] - The company is experiencing double-digit growth with an above 80% reorder rate, and plans to expand its sales efforts to 11 key states in the US[114] - The company aims to double the size of its sales force to enhance market penetration and address new markets[138] Research and Development - Research and development expenses for the three months ended June 30, 2019, were $213,496, down from $309,871 in 2018, reflecting a decrease of about 31%[16] - The company is developing additional ancillary technologies and plans to apply for further FDA clearances during 2019[114] - A research partnership with the University of Calgary is established to explore the predictive value of ECG readings for preventative healthcare applications, funded partly by the National Research Council of Canada[116] Stock and Equity - The weighted average number of common shares outstanding increased to 35,397,458 for the three months ended June 30, 2019, compared to 31,945,349 in 2018, an increase of approximately 10.5%[16] - The company had 31,101,975 shares of common stock issued and outstanding, an increase from 31,048,571 shares as of March 31, 2019[70] - The company raised gross proceeds of $3,718,010 through the issuance of 2,635,353 common shares during the year ended March 31, 2019[74] Accounting and Compliance - The company adopted ASC 842 for lease accounting, enhancing transparency by requiring the recording of right-of-use assets and corresponding lease liabilities[42] - The company has adopted new accounting standards related to leases and fair value measurements, which may impact financial reporting[127][130]