Biotricity (US:BTCY)2022-11-15 02:54Financial Data and Key Metrics Changes - For the three months ending September 30, 2022, the company earned revenues of $2.4 million, representing a 32% increase from the corresponding quarter of fiscal 2021 [19] - Gross profit for the second quarter totaled $1.3 million, yielding a gross profit margin of 54%, with expectations to improve margins to about 60% over time [19][20] - The company incurred a net loss of $4.9 million, compared to a net loss of $11 million in the comparative quarter of fiscal 2021, resulting in a net loss per common share of $0.094 [21] Business Line Data and Key Metrics Changes - The primary revenue driver was Bioflux, a mobile cardiac telemetry device, with combined device sales and technology fee income totaling $2.4 million for the quarter, showcasing year-over-year growth [9][8] - The company launched Biocare Cardiac, a cardiac disease management solution, following successful pilot programs [11][12] Market Data and Key Metrics Changes - The global recurrent market for atrial fibrillation (AFib) is expected to reach $26 billion by 2027, indicating a growing potential market for the company's offerings [10] - The company ended the fiscal quarter with $2.5 million in cash, reflecting a focus on capital efficiency [24] Company Strategy and Development Direction - The company aims to position itself as a comprehensive solution for cardiac diagnostics and disease management, integrating remote monitoring with telemedicine [7][25] - New distribution partnerships are being pursued to expand access to a larger network of sales representatives [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite a challenging biotech landscape, highlighting ongoing product development and hiring for key positions [36][37] - The company is focused on achieving profitability within the next 18 months through a combination of growth and cost management strategies [35] Other Important Information - The company received an NIH Grant for AI-enabled real-time monitoring and predictive analytics for stroke due to chronic kidney failure, broadening its technology platform [16][17] - The Bioheart device is positioned for individuals diagnosed with cardiac issues, differentiating it from traditional fitness monitors [50][51] Q&A Session Summary Question: Can you provide more details on the distribution network development? - Management indicated that they are successfully building distribution relationships and will disclose more details in the coming weeks [28] Question: How did the pilot programs in Oklahoma and Kentucky perform? - The pilot programs focused on patient engagement, provider workflows, and reimbursement processes, leading to successful optimizations and readiness for commercial launch [30][34] Question: What are the inputs required for the path to profitability? - The path to profitability involves growth, strategic hiring, and cost management, with a prudent approach to cash deployment [36][39] Question: How will Bioflux AI upgrades be implemented? - AI upgrades will be implemented primarily in the cloud to enhance data presentation and operational efficiency [42][43] Question: How are physicians responding to the three-channel patch versus traditional Holters? - Physicians appreciate the quicker data access and the flexibility of using standard electrodes, leading to positive sales uptake [44][46] Question: How is Bioheart positioned against other retail heart monitors? - Bioheart is targeted at individuals with diagnosed cardiac conditions for self-management, differentiating it from general fitness monitors [50][51] Question: Will the sales force be increased alongside distribution partnerships? - The company plans to strategically increase sales representatives to work closely with distribution networks [52]