Biotricity (BTCY) - 2020 Q2 - Quarterly Report

Financial Performance - Revenue for the three months ended September 30, 2019, was $345,906, a significant increase of 308.5% compared to $84,760 for the same period in 2018 [13]. - Net revenue for the six months ended September 30, 2019, reached $672,906, up 564.5% from $102,420 in the prior year [13]. - The net loss for the three months ended September 30, 2019, was $2,008,114, slightly improved from a loss of $2,176,740 in the same quarter of 2018 [13]. - For the six months ended September 30, 2019, the net loss was $4,097,714 compared to a net loss of $4,597,257 for the same period in 2018, indicating a reduction in losses by approximately 10.9% [20]. - Operating expenses for the three months ended September 30, 2019, totaled $2,239,804, slightly higher than $2,214,382 for the same period in 2018 [140]. Assets and Liabilities - As of September 30, 2019, total current assets increased to $661,113 from $457,660 as of March 31, 2019, representing a 44.4% growth [10]. - Total current liabilities surged to $5,788,844 as of September 30, 2019, compared to $2,268,341 as of March 31, 2019, marking a 154.5% increase [11]. - Total liabilities and stockholders' deficiency amounted to $1,057,761 as of September 30, 2019, compared to $490,660 as of March 31, 2019 [11]. - The accumulated deficit as of September 30, 2019, was $39,137,210, increasing from $35,039,495 as of March 31, 2019 [11]. - Cash flows from operating activities resulted in a net cash used of $2,790,973 for the six months ended September 30, 2019, compared to $2,670,638 for the same period in 2018, showing an increase in cash outflow of approximately 4.5% [20]. Shareholder Equity and Financing - The company raised $2,775,575 from the issuance of convertible debentures in the six months ended September 30, 2019, which was not present in the previous year [20]. - The company raised $3,746,575 in funding from a private equity fund, which committed to purchase up to $25 million in additional shares [31]. - The company issued shares for services amounting to $394,161 in the six months ended September 30, 2019, down from $898,025 in the same period of 2018, reflecting a decrease of about 56.2% [20]. - The company has a written commitment for an additional $5 million in debt financing from a private debt fund [31]. - The company anticipates requiring approximately $4 million to grow its sales team and order devices, with an additional $7 million needed to accelerate commercialization efforts [148]. Research and Development - Research and development expenses for the six months ended September 30, 2019, totaled $432,021, down from $487,930 in the prior year [13]. - Research and development expenses for the three months ended September 30, 2019, were $218,525, compared to $187,859 for the same period in 2018, indicating a 16% increase [142]. - A research partnership with the University of Calgary is established to explore the predictive value of ECG readings, funded partly by the National Research Council of Canada [112]. - The company plans to continue investing in capital expenditures and research and development to support higher sales volume and infrastructure [136]. Commercialization and Market Strategy - The company is focused on developing technology for remote monitoring in preventative care, aiming to establish a viable healthcare business model with a clear commercialization pathway [23]. - The company launched its first commercial sales program during the year ended March 31, 2019, utilizing an experienced in-house sales team [31]. - The company deployed over 900 remote patient monitoring devices as of September 30, 2019, almost tripling its fleet from the previous fiscal year-end [135]. - The company plans to expand its sales efforts to 11 key states and aims for further market penetration using an insourcing business model [110]. - The company intends to apply for further FDA clearances for several ancillary technologies during 2019 [110]. Stock and Options - The weighted average number of common shares outstanding increased to 35,659,133 for the three months ended September 30, 2019, compared to 32,819,848 in the same period of 2018 [13]. - The total shares issued as of September 30, 2019, were 36,091,753, an increase from 35,361,656 shares as of March 31, 2019, representing an increase of about 2.1% [17]. - The company granted 1,437,500 stock options during the year ended March 31, 2019, with a weighted average remaining contractual life of 2.76 to 9.51 years [90]. - The company recorded stock-based compensation of $154,996 and $493,885 for the three and six months ended September 30, 2019, respectively [93]. - The company issued 651,677 and 682,512 shares as compensation during the three and six months ended September 30, 2019, with the fair value determined at the market price at issuance [75]. Other Financial Information - The company reported an accumulated other comprehensive loss of $793,878 as of September 30, 2019, compared to $(754,963) as of March 31, 2019, reflecting a deterioration in comprehensive income [17]. - The company did not use any net cash in investing activities for the three-month periods ended September 30, 2019, or 2018 [153]. - There were no changes in the company's internal controls over financial reporting that materially affected its financial reporting during the three-month period ended September 30, 2019 [160].