Biotricity Inc. (BTCY) is a pioneering Technology-as-a-Service (TaaS) company that is redefining the healthcare industry with its cutting-edge remote monitoring and diagnostic solutions. The company's mission is to innovate and create transformative healthcare products while ensuring financial discipline, driving margin and revenue growth to deliver value creation for its investors.
Company Background
Biotricity Inc. was incorporated under the laws of the State of Nevada on August 29, 2012. The company's subsidiary, iMedical Innovations Inc., was incorporated on July 3, 2014 under the laws of the Province of Ontario, Canada and became a wholly-owned subsidiary of Biotricity through a reverse take-over on February 2, 2016. The company's focus has been on developing, manufacturing, and selling device and platform technologies, along with related services, within the remote monitoring segment of preventative care. Biotricity has been dedicated to building and commercializing an ecosystem of technologies that enable access to this market.
Product Development and Commercialization
In 2018, Biotricity made its Bioflux mobile cardiac telemetry device available to the market under a limited release to assess, establish and develop sales processes and market dynamics. The full market release of the Bioflux device for commercialization occurred in April 2019 after receiving its second and final required FDA clearance. To commence commercialization, Biotricity ordered device inventory from its FDA-approved manufacturer and hired an experienced in-house sales team. The company then expanded its sales force and geographic footprint.
In 2021, Biotricity received a 510k clearance from the FDA for its Bioflux Software II System, engineered to improve workflows and reduce estimated review time from 5 minutes to 30 seconds. This advancement has allowed the company to focus its resources on high-level operations and sales, further enhancing its customer service and industry-leading response times. Additionally, the company commercially launched its Bioheart consumer technology during 2021 and the early part of 2022.
Biotricity's focus on innovation has extended beyond its core cardiac monitoring solutions. In 2022, the company announced the launch of its Biocare technology, a patient-facing application that provides full-cycle chronic care management solutions to its clinic and patient network. Additionally, the company has been actively developing advanced ECG algorithms and analysis software to improve the sensitivity and specificity of patient ECG monitoring data.
Product Segments
Biotricity operates in two main product segments: Remote Cardiac Monitoring and Chronic Care Management.
In the Remote Cardiac Monitoring segment, the company's flagship product is the Bioflux, a mobile cardiac telemetry device that provides continuous cardiac monitoring and data collection. The Bioflux, which received FDA clearance in 2018, is used to detect and diagnose arrhythmias and other cardiac conditions. Biotricity generates revenue from both device sales and recurring technology service fees for the data analysis and reporting services provided with the Bioflux.
During the nine months ended December 31, 2024, Biotricity's Remote Cardiac Monitoring segment generated $9.47 million in technology fee revenue, a 14.3% increase over the prior year period. Device sales for this segment were $620,050, comprising 6.1% of total revenue. The company's gross profit margin for the Remote Cardiac Monitoring segment was strong at 81.4%, reflecting the high-margin nature of the recurring technology service fees.
Biotricity has continued to invest in this segment, with $1.58 million in research and development expenses over the nine-month period. The company has also expanded its sales footprint, now actively selling the Bioflux in 35 U.S. states. Management has noted that the quality of customer support and ease-of-use of the Bioflux device have been key drivers of strong customer retention and the growth in recurring technology fee revenue.
In the Chronic Care Management segment, Biotricity launched its Biocore device in 2022, a three-lead ECG and arrhythmia monitoring solution intended for lower-risk cardiac patients. The company views the Biocore as complementary to the higher-acuity Bioflux, allowing it to address a broader segment of the remote cardiac monitoring market.
Biotricity also introduced its Biocare technology in 2022, which provides remote chronic care management solutions for clinics and patients. The Biocare platform puts actionable patient data in the hands of physicians to facilitate more effective treatment decisions.
While the Chronic Care Management segment is still new, Biotricity views these products as key to expanding its footprint beyond just diagnostic cardiac monitoring. The company is leveraging its cardiac expertise and data analytics capabilities to move into the growing remote chronic care management market.
Financial Performance
The company's financial performance has showcased its growth trajectory and operational efficiency. In the fiscal year ended March 31, 2024, Biotricity reported revenue of $12.06 million, a 25.2% increase from the prior year. Gross profit margins also improved significantly, rising from 56.8% in fiscal year 2023 to 69.3% in fiscal year 2024.
The company's cost control measures have been equally impressive, with selling, general, and administrative expenses decreasing from $17.62 million in fiscal year 2023 to $14.61 million in fiscal year 2024, a 17.1% reduction. This, combined with the company's revenue growth, has led to a meaningful improvement in its net loss, which decreased from $18.66 million in fiscal year 2023 to $14.09 million in fiscal year 2024.
Biotricity's focus on driving recurring revenue has been a key strategic priority. In the fiscal year ended March 31, 2024, the company's technology fee revenue, which includes its subscription-based services, accounted for 93.9% of total revenue, up from 86.0% in the prior year. This high-margin revenue stream has been a significant contributor to the company's improved profitability.
For the most recent quarter ended December 31, 2024 (Q3 2025), Biotricity reported revenue of $3.62 million, representing a 21.7% year-over-year growth. The net loss for the quarter was $1.32 million. The increase in revenue was driven by growth in both recurring technology fees and device sales.
Biotricity achieved positive EBITDA for the first time in September 2024, indicating progress towards profitability. The company's gross profit percentage improved 1,468 basis points to 75.3% for the fiscal year, up from 73.8% in the prior year, attributed to the expansion of their recurring technology fee revenue base, efficiencies gained through proprietary AI, and improvements in their monitoring cost structure.
The company's net loss attributable to common stockholders decreased 57% year-over-year to $1.65 million or $0.073 per share, despite expenses associated with infrastructure growth and higher variable interest rates. Biotricity's EBITDA improved by 80% and 50.4% for the three-month and six-month periods ended September 30, 2024, respectively, compared to the corresponding prior year periods.
Adjusted EBITDA, a measure for tracking free cash flow levels, improved to negative $249,000 for the quarter ended September 30, 2024, a reduction of over $1.7 million in negative adjusted EBITDA from the comparative period of the prior fiscal year, an 87% improvement.
Liquidity and Balance Sheet
The company's balance sheet and liquidity position have also strengthened in recent years. As of December 31, 2024, Biotricity had $509,600 in cash and cash equivalents. The company has also been successful in accessing capital markets, raising $2.94 million in equity and $2.96 million in debt during the fiscal year ended March 31, 2024.
Biotricity's debt-to-equity ratio stood at -0.43 as of December 31, 2024. The company has a $1.2 million revolving credit facility, of which $1.92 million was drawn as of December 31, 2024. The current ratio was 0.23, and the quick ratio was 0.16, indicating potential short-term liquidity challenges that the company will need to address.
Growth Strategy
Biotricity's growth strategy has been multifaceted, focusing on both organic and inorganic initiatives. The company has expanded its sales force and geographic footprint, now actively selling in 35 U.S. states as of March 31, 2024. Additionally, Biotricity has forged strategic partnerships with leading healthcare organizations, including group purchasing organizations (GPOs) and specialty groups in neurology and pulmonology, which have helped to drive new business opportunities.
The company's commitment to innovation is also evident in its research and development efforts. In September 2022, Biotricity was awarded a NIH Grant from the National Heart, Blood, and Lung Institute for AI-Enabled real-time monitoring and predictive analytics for stroke due to chronic kidney failure. This achievement has not only broadened the company's technology platforms, but also solidified its position as a leader in the field of remote cardiac care.
Future Outlook
Looking ahead, Biotricity remains focused on advancing the commercialization of its Biocore and Biocare products, while also exploring opportunities to expand its footprint into international markets. The company's recent approval from Health Canada for its Biotrust technology has laid the groundwork for potential revenue contributions from the Canadian market in the coming years.
The remote monitoring and chronic disease management market presents a significant growth opportunity for Biotricity. According to a report by Grand View Research, the global healthcare AI market is projected to grow to $208.2 billion by 2030, and Biotricity is well-positioned to capitalize on this trend with its innovative suite of cardiac AI-powered solutions.
The remote cardiac monitoring market specifically is projected to grow at a CAGR of 15.8% from 2022 to 2030, driven by the increasing prevalence of cardiovascular diseases and advancements in remote monitoring technologies.
Biotricity remains confident in its ability to deliver sustained growth and profitability, as evidenced by its recent largest-ever inventory order, which the company believes provides it with the necessary assets and resources to execute its path to profitability.
Risks and Challenges
However, the company is not without its challenges. Biotricity operates in a highly competitive landscape, with established players and new entrants vying for market share. The company also faces regulatory hurdles and the need for continued investment in research and development to maintain its technological edge.
Additionally, while Biotricity has made significant strides in improving its financial performance, it still faces short-term liquidity challenges as indicated by its current and quick ratios. The company will need to carefully manage its cash position and potentially explore additional financing options to support its growth initiatives.
Conclusion
Despite these risks, Biotricity's strong track record of innovation, operational efficiency, and financial discipline have positioned the company as a compelling investment opportunity in the fast-growing remote healthcare technology sector. The company's focus on recurring, high-margin technology service fees, combined with new product introductions, positions it to continue its trajectory towards profitability.
As Biotricity continues to execute on its strategic priorities, investors will be closely watching the company's ability to drive sustainable growth, improve profitability, and deliver long-term value. With its innovative product portfolio, expanding market presence, and commitment to advancing remote cardiac monitoring and chronic care management solutions, Biotricity appears well-positioned to capitalize on the growing demand for remote healthcare technologies in the years to come.