Biotricity (US:BTCY)2020-02-14 19:49Financial Performance - Revenue for the three months ended December 31, 2019, was $381,899, compared to $1,054,805 for the same period in 2018, indicating a decrease in revenue [14]. - The net loss before income taxes for the three months ended December 31, 2019, was $(2,371,005), compared to $(6,468,720) for the same period in 2018, showing an improvement in loss [14]. - The company reported a comprehensive loss of $(2,629,496) for the three months ended December 31, 2019, compared to $(6,766,126) for the same period in 2018, reflecting a reduction in overall losses [14]. - For the nine months ended December 31, 2019, Biotricity Inc. reported a net loss of $6,492,391, compared to a net loss of $6,769,505 for the same period in 2018, indicating a decrease in losses of approximately 4.1% [20]. - The company incurred a net loss of $2,394,676 and $6,492,391 for the three and nine months ended December 31, 2019, respectively, with a loss per share of $0.066 and $0.181 [138]. - The Company incurred net losses of $2,394,676 and $6,492,391 for the three and nine months ended December 31, 2019, compared to net losses of $2,172,248 and $6,769,505 during the corresponding periods in 2018, resulting in a loss per share of $0.066 and $0.181 respectively [145]. Assets and Liabilities - As of December 31, 2019, total assets increased to $5.53 million from $490,660 as of March 31, 2019, reflecting a significant growth in current assets, particularly cash which rose to $4.35 million from $63,647 [10]. - Total current liabilities increased to $6.54 million as of December 31, 2019, from $2.27 million as of March 31, 2019, primarily due to an increase in accounts payable and accrued liabilities [10]. - The accumulated deficit as of December 31, 2019, was $(41,531,886), up from $(35,039,495) as of March 31, 2019, indicating a growing financial challenge [12]. - The total stockholders' deficiency as of December 31, 2019, was $(1,912,502), compared to $(1,777,681) as of March 31, 2019, indicating a decline in shareholder equity [12]. - As of December 31, 2019, the company has an accumulated deficit of $41,531,886 and a working capital deficiency of $1,355,227 [31]. Expenses - General and administrative expenses for the three months ended December 31, 2019, were $2,179,928, compared to $6,292,225 for the same period in 2018, indicating a decrease in operational costs [14]. - Research and development expenses for the three months ended December 31, 2019, were $447,639, compared to $879,661 for the same period in 2018, suggesting a reduction in R&D spending [14]. - Total operating expenses for the three and nine months ended December 31, 2019, were $2,627,567 and $7,171,886, compared to $2,262,384 and $6,905,143 for the same periods in 2018 [142]. - General and administrative expenses for the three and nine months ended December 31, 2019, were $2,179,928 and $6,292,225, respectively, reflecting increases due to higher borrowing costs and marketing expenses [143]. Financing Activities - The company issued 6,000 preferred shares, raising $6,000,000 during the period, which was a significant source of financing [20]. - The Company issued $6 million in preferred stock during the three months ended December 31, 2019, to support its operating plan [31]. - Net cash provided by financing activities was $9,464,675 for the nine months ended December 31, 2019, compared to $3,029,038 for the same period in 2018, primarily from the issuance of preferred shares and promissory notes [155]. - The Company issued convertible promissory notes totaling $1,368,978, which can be converted into common stock [50]. Revenue Growth - Gross revenues for the three months ended December 31, 2019, increased by 225% compared to the same period in the prior year, equating to 96% of the total gross revenues earned in the entire fiscal year ended March 31, 2019 [134]. - Technology fee revenues grew by over 500% for the nine months ended December 31, 2019, with approximately 65% of revenues being utilization-based annual recurring revenues (ARR) [135]. - Technology fees earned during the three-month and nine-month periods ended December 31, 2019, grew by 311.4% and 504.3%, respectively, from the prior year [141]. Strategic Focus - Biotricity is focused on developing technology for remote monitoring in preventative care, aiming to establish a realizable healthcare business model with a clear commercialization pathway [23]. - The Company plans to expand its sales efforts to 11 key states and aims to grow its sales force to enhance market penetration [113]. - The company expanded its sales force and geographic footprint to 11 US states, enhancing its market presence for the Bioflux® MCT device [136]. - The company is developing advanced ECG analysis software and the Bioflux® 2.0, with plans to apply for further FDA clearances within the next twelve months [116]. Stock and Options - The weighted average number of common shares outstanding increased to 36,176,520 for the three months ended December 31, 2019, from 35,826,398 for the same period in 2018 [14]. - The Company granted 3,591,000 options under the 2015 Equity Incentive Plan, with 3,390,503 options exercised [87]. - The maximum number of shares that may be issued under the 2016 Equity Incentive Plan is 3,750,000, with annual increases based on outstanding shares [90]. - The Company recorded stock-based compensation of $155,702 and $649,587 for the three and nine months ended December 31, 2019, respectively [95]. Cash Flow - Cash used in operating activities for the nine months ended December 31, 2019, was $4,909,896, an increase of approximately 20.9% compared to $4,063,375 in the same period of 2018 [20]. - The Company expects to require approximately $4 million to grow its sales team and order devices, with an additional $4 million anticipated for hiring a larger sales force and developing future technologies [151].