Business Overview

Biotricity Inc. (NASDAQ:BTCY) has emerged as a leading player in the remote cardiac care market, delivering innovative solutions that are transforming the healthcare landscape. With a focus on leveraging cutting-edge technology and strategic partnerships, the company has positioned itself for sustained growth and profitability.

Biotricity is a medical technology company that specializes in biometric data monitoring solutions. The company's mission is to provide innovative, remote monitoring solutions to the medical, healthcare, and consumer markets, with a focus on diagnostic and post-diagnostic solutions for lifestyle and chronic illnesses. Biotricity's approach to the diagnostic side of remote patient monitoring involves applying innovation within existing business models where reimbursement is established, reducing the risk associated with traditional medical device development and accelerating the path to revenue.

In the post-diagnostic market, Biotricity aims to apply medical-grade biometrics to enable consumers to self-manage, thereby driving patient compliance and reducing healthcare costs. The company's flagship product, the Bioflux cardiac outpatient monitoring device, has been a key driver of its success, with the company monitoring over 500 billion heartbeats to date, leading to the diagnosis of over 250,000 patients with atrial fibrillation, a leading cause of strokes.

Financials

Biotricity's financial performance in fiscal year 2024 has been impressive, with the company reporting annual revenue of $12,063,345 and a net loss of $14,094,283. The company's annual operating cash flow and free cash flow were both -$6,693,912, reflecting the ongoing investments in product development and commercialization.

During the fourth quarter of fiscal year 2024, the company reported revenue of $3.2 million, a 15.9% increase year-over-year. This growth was driven by the continued success of the company's subscription-based revenue model, with technology fees accounting for over 93% of the quarter's total revenue. Gross profit for the quarter totaled $2.3 million, up 48% from the prior year period, with a gross margin of 71.5%, a significant improvement from the 56% reported in the same quarter last year.

Operational Efficiency and Cost Management

Biotricity has made significant strides in improving its operational efficiency and cost management. During the fiscal year, the company reduced its operating expenses by $3.7 million, resulting in an improved loss from operations by nearly $6.6 million. Selling, general, and administrative (SG&A) expenses decreased by 17%, while research and development (R&D) expenses were reduced by 20%.

The company's strategic transformation of its sales force, focusing on longer sales cycles and larger accounts, including independent hospitals and group purchasing organizations (GPOs), has paid dividends. Biotricity has now signed agreements with three of the largest GPO networks, providing access to approximately 90% of hospitals in the U.S. This shift in sales strategy, combined with the company's streamlined operations and proactive cost management, has set Biotricity on a path toward achieving EBITDA neutrality and profitability later this calendar year.

Technological Advancements and Strategic Partnerships

Biotricity's commitment to innovation has been a key driver of its success. The company has made significant advancements in its Cardiac AI Cloud platform, leveraging strategic partnerships with industry giants such as Amazon AWS and Google's TensorFlow. This AI-driven platform, powered by over 500 billion heartbeats of anonymized data, is designed to enhance diagnostic accuracy, improve patient outcomes, and increase clinic profitability.

The company's recent approval from Health Canada for its Biocore device has opened new avenues for revenue growth outside of the U.S., in the $1.56 billion Canadian cardiology devices market. This approval aligns with Biotricity's strategy to promote accessible, high-quality care and improved patient outcomes globally.

Diversification and Market Expansion

Biotricity has also made strategic moves to diversify its market reach and expand its product portfolio. The company has launched a major cardiac monitoring pilot program with a network of nine hospitals and ten clinics, and it is accelerating its path to breakeven with the rapid adoption of its Biocore Pro device by both existing and new customers.

Furthermore, Biotricity has entered the pulmonary and neurology fields through partnerships with leading home-based diagnostic companies. This diversification strategy aims to leverage the company's expertise in cardiac care and address the growing need for integrated healthcare solutions that address the interconnected nature of various medical conditions.

The company's recent launch of HeartSecure, a direct-to-consumer heart health screening service, represents its commitment to making heart health services more accessible in response to the global challenge posed by cardiovascular disease. This $1.1 billion home heart health market opportunity aligns with Biotricity's vision of transforming the healthcare industry through innovative, data-driven solutions.

Liquidity

As of March 31, 2024, Biotricity had cash deposits of approximately $85,000. This extremely low cash balance raises substantial doubt about the company's ability to meet its obligations for at least a period of one year from the date of the consolidated financial statements.

During the fiscal year ended March 31, 2023, the company raised $499,900 through a government EIDL loan and $14,545,805 through an underwritten public offering that was concurrent with its listing onto the Nasdaq Capital Markets. The company also raised additional net proceeds of $11,756,563 through a term loan transaction and made repayments of previously issued promissory notes and short-term loans.

In the nine months ended December 31, 2023, the company raised additional convertible notes from various lenders of approximately $2.2 million net of issuance costs, as well as $1.9 million in net proceeds from the issuance of Series B Convertible Preferred Stock. The company also raised additional short-term loans and promissory notes, net of repayments, of $0.7 million from various lenders.

Outlook

Biotricity's strategic initiatives, technological advancements, and operational efficiencies have positioned the company for sustained growth and profitability. The company remains focused on delivering innovative, high-quality cardiac care solutions and is confident in its ability to continue driving value for its shareholders and improving patient outcomes globally.

The growing market interest and demand for Biotricity's suite of products dedicated to chronic cardiac disease prevention and management reinforce the company's confidence in its market position. The company's recent initiatives, including the expansion of its Cardiac AI Cloud platform, the launch of the Biocore Pro device, and the diversification into pulmonary and neurology fields, are expected to contribute to the company's future growth and profitability.

Biotricity's strategic partnerships with industry leaders, such as Amazon AWS and Google's TensorFlow, as well as its recent approvals from regulatory bodies in Canada and the U.S., position the company for global expansion and the capture of new market opportunities. The company's commitment to innovation and its focus on operational efficiency and cost management have set the stage for Biotricity to achieve EBITDA neutrality and profitability in the near future.

Conclusion

Biotricity's impressive financial and operational performance in fiscal year 2024, coupled with its strategic initiatives and technological advancements, have positioned the company as a leader in the remote cardiac care market. The company's focus on innovation, strategic partnerships, and operational efficiency has enabled it to drive revenue growth, improve margins, and reduce EBITDA losses, setting the stage for sustained profitability and value creation for its shareholders. As Biotricity continues to execute on its growth strategy and expand its market reach, the company is well-positioned to capitalize on the growing demand for remote cardiac care solutions and transform the healthcare industry.