Executive Summary / Key Takeaways

• Transformative Turnaround: Biotricity is executing a strategic pivot towards profitability, evidenced by a significant 14.3% revenue increase in FY2025 to $13.79 million and a remarkable shift to positive Adjusted EBITDA in September 2024 for the first time in its history, driven by operational efficiencies and a high-margin subscription model.
• Technological Leadership & AI Integration: The company's core strength lies in its comprehensive, FDA-cleared cardiac monitoring portfolio, including the 3-channel Biocore Pro with cellular connectivity, complemented by a proprietary Cardiac AI Cloud leveraging 500 billion heartbeats of data for predictive diagnostics, with an FDA filing for its AI clinical model expected by mid-2026.
• Strategic Market Expansion: Biotricity is rapidly expanding its market reach through an insourcing business model, strategic alliances with top Group Purchasing Organizations (GPOs) providing access to 90% of U.S. hospitals, and diversification into neurology and pulmonology, positioning it as a disruptive force against larger, more traditional competitors.
• High-Quality Recurring Revenue: A successful transition of approximately three-quarters of its business to a flat-fee subscription model has significantly improved gross margins to 76.6% in FY2025, laying a predictable foundation for future growth and operational leverage.
• Liquidity & Growth Capital: While the company faces a going concern qualification due to historical losses and current cash levels, management's aggressive cost control, recent financing, and a substantial inventory investment underscore confidence in achieving sustained profitability and positive cash flow, though additional capital will be sought for broader U.S. market commercialization.

The Shifting Pulse of Healthcare and Biotricity's Vision

The healthcare landscape is undergoing a profound transformation, driven by the escalating burden of chronic diseases and a paradigm shift from reactive treatment to proactive, preventative care. Cardiovascular disease, a leading cause of mortality and a significant drain on healthcare resources, stands at the epicenter of this change. Governments and healthcare organizations are increasingly focused on cost reduction through evidence-based self-management and remote patient monitoring (RPM). This macro trend fuels a connected health market projected to reach $150 billion by 2024 and a healthcare AI market expected to hit $208.2 billion by 2030. Biotricity Inc. (OTCQB:BTCY) has strategically positioned itself at the forefront of this evolution, aiming to redefine remote cardiac care and chronic disease management.

Founded in 2012, Biotricity has evolved from a medical device developer into a technology-as-a-service (TaaS) company. Its core mission is to deliver innovative, remote monitoring solutions for diagnostic and post-diagnostic care of lifestyle and chronic illnesses. A foundational element of its strategy is the "insourcing business model," which empowers physicians with state-of-the-art technology and charges technology service fees for its use. This approach is designed to reduce Biotricity's operating overhead and enable more efficient market penetration, differentiating it from traditional outsourced models prevalent in the industry.

Technological Edge: The Heart of Innovation

Biotricity's competitive advantage is deeply rooted in its proprietary technology and relentless innovation. The company has meticulously built a comprehensive portfolio of FDA-cleared devices and software solutions designed to capture, analyze, and deliver critical cardiac data.

At the core of its diagnostic offerings are the Bioflux and Biocore platforms. The Bioflux mobile cardiac telemetry solution, fully commercialized in 2019, provides integrated ECG monitoring. Building on this, the Biocore (formerly Biotres) is a three-lead device for ECG and arrhythmia monitoring, targeting a broader, lower-risk patient segment. This device is technologically superior to many alternatives, offering 3 channels of ECG data compared to the typical 1 or 2 channels found in competitors' two-piece solutions. This translates directly to better data and higher quality diagnoses. The Biocore's connectivity also significantly reduces diagnosis time for Holter monitoring from weeks to 3 days or less. The recent launch of the Biocore Pro, a cellular-enabled version, further enhances this capability by providing cellular backup for offline connectivity, ensuring continuous data upload and eliminating delays in data retrieval.

Beyond hardware, Biotricity's strategic investment in its Cardiac AI Cloud platform is a game-changer. Leveraging over 500 billion heartbeats of anonymized data and integrating advanced technologies like Google (GOOGL)'s TensorFlow and Amazon (AMZN) Web Services infrastructure, this proprietary AI model is designed for predictive monitoring. The stated goal is to enhance diagnostic accuracy and enable early detection of complex arrhythmias such as Afib, V-tex, and heart blocks. This predictive capability is crucial for bringing patients in earlier for intervention, which not only improves patient outcomes but also generates significant healthcare cost savings; for instance, avoiding a stroke can save an estimated $250,000 in healthcare costs. This AI-driven approach allows Biotricity to "do more with less," streamlining operations and enabling healthcare professionals to manage exponentially more patients. The company expects to file for FDA clearance of its AI clinical model by mid-2026, with commercial availability anticipated in mid to late 2026.

Biotricity's product ecosystem extends beyond clinical diagnostics to chronic care management. The Bioheart, a direct-to-consumer continuous heart monitor, offers medical-grade technology for self-management and was recognized by TIME Magazine as one of the Best Inventions of 2022. The Biocare Cardiac Disease Management Solution, launched after successful pilots involving over 60,000 patients, provides actionable data to physicians. For patients with multiple chronic conditions, the Biokit integrates additional biometrics like blood pressure and pulse oximetry into the Biocare platform. This comprehensive portfolio means Biotricity offers the "most comprehensive remote cardiac monitoring portfolio in the market," providing a unique, single-vendor solution for customers.

The company is also aggressively expanding its intellectual property (IP) portfolio, recently securing 14 new patents, bringing its total to 15 issued patents with an additional 14 pending. These patents focus on a multi-biometric device platform that can function in both patch and watch form factors, enabling simultaneous diagnostic studies (e.g., cardiac and sleep). This robust IP strategy reinforces Biotricity's leadership and creates significant barriers to entry for competitors.

Strategic Market Penetration and Competitive Positioning

Biotricity operates in a highly competitive medical technology industry, facing established players with greater financial resources and market presence. Key competitors in the Mobile Cardiac Outpatient Monitoring (COM) and Holter markets include Philips Biotel (formerly CardioNet), Boston Scientific Preventice, iRhythm Technologies , BardyDx, VitalConnect, and ScottCare. In cardiac disease management, rivals include Alivecor, Optimize Health, and HelloHeart.

Biotricity's insourcing business model is a key differentiator. Unlike many COM providers who operate on an outsourced model (taking over clinical responsibilities and reimbursement, paying physicians a small stipend), Biotricity empowers physicians to directly control the services and bill for them. This is financially superior for providers and fosters stronger relationships. While ScottCare also offers an insourced model, it requires high upfront device and software costs, creating a long return on investment for physicians. Biotricity's model aims to avoid these prohibitive upfront investments.

Technologically, Biotricity's Biocore solution stands out. Its 3-channel ECG capability provides superior data quality compared to competitors' 1- or 2-channel devices. The Biocore Pro's built-in cellular technology ensures consistent data transfer, a significant advantage over non-connected Holter patch solutions that can delay diagnostic results by weeks. While iRhythm Technologies (IRTC) is a leader in Holter patch technology with advanced AI, Biotricity's 30-day recording capability (Bioflux) offers a longer monitoring duration than IRTC's typical 14-day patches. Furthermore, Biotricity's focus on integrating multiple biometric data points through Biokit provides a more holistic monitoring solution than many ECG-focused rivals.

Biotricity's strategic market penetration efforts are multifaceted. The company has forged strategic alliances with three of the largest Group Purchasing Organizations (GPOs), granting it access to approximately 90% of all hospitals in the U.S. These partnerships are already yielding "multiple large opportunities" and "active pilots at major groups," despite the longer sales cycles typically associated with hospital networks. Management notes that these GPO relationships help "shortcut" the sales process. The sales force has been re-tooled with a "hunter-farmer" methodology, focusing dedicated reps on new, larger accounts while account management teams handle existing customers, optimizing efficiency and driving new business.

Beyond cardiology, Biotricity is strategically diversifying its market reach. It has entered the neurology and pulmonology fields through partnerships with leading home-based diagnostic companies. This initiative targets patient populations with cardiac comorbidities, and these partnerships are already "active" and "generating revenue." Internationally, Health Canada's approval for the Biocore device has opened new avenues in the $1.56 billion Canadian cardiology devices market, where the company is building a distributor network. The launch of HeartSecure, a direct-to-consumer heart health screening service, taps into the $1.1 billion home heart health market, further broadening its footprint.

While larger competitors like Medtronic (MDT) and Abbott Laboratories (ABT) boast global scale and robust profitability, Biotricity's agility and specialized focus allow it to capture niche growth. Its revenue growth rate of 20-30% year-over-year (implied) outpaces MDT's 5% and ABT's 8%. However, Biotricity still trails in overall profitability and cash flow generation compared to these giants. Its higher R&D investment relative to revenue (20% vs. MDT's 15%) indicates a strong commitment to innovation, but also a need for greater efficiency as it scales. The comprehensive nature of Biotricity's product portfolio, offering a single-vendor solution across diagnostics and chronic care, provides a competitive advantage that rivals often lack.

Financial Performance: A Turn Towards Profitability

Biotricity's financial performance in recent periods reflects a company in a significant transition, demonstrating a clear trajectory towards profitability. For the fiscal year ended March 31, 2025, total revenue increased by 14.3% year-over-year to $13.79 million, building on a 25% increase in FY2024 to $12.06 million. This growth is primarily fueled by the company's focus on recurring technology fees, which constituted $12.59 million of FY2025 revenue. The successful transition of approximately three-quarters of its business to a flat-fee subscription model has been pivotal, establishing a higher quality and more predictable revenue stream.

This strategic shift has profoundly impacted gross margins. For FY2025, gross profit percentage reached 76.6%, a substantial improvement from 69.3% in FY2024. In the second quarter of fiscal 2025, gross profit percentage stood at 75.3%. These gains are directly attributed to the expanding recurring technology fee revenue base, which enjoys higher margins than device sales, coupled with efficiencies gained through proprietary AI and improvements in the monitoring cost structure. Management anticipates continued improvement in overall blended gross margin over time.

Operational efficiency has also seen significant gains. Total operating expenses for FY2025 decreased to $13.01 million, a reduction of $4.22 million year-over-year. Selling, general, and administrative (SG&A) expenses decreased by 35.5% in Q2 FY2025, while research and development (R&D) expenses were reduced by almost 26%. These reductions stem from increased monitoring of spending efficiency, strategic retooling of the sales force, and economies of scale as the business grows.

The culmination of these efforts is a notable improvement in the bottom line. The net loss attributable to common stockholders for FY2025 improved to $11.94 million from $14.93 million in the prior year. More critically, Biotricity achieved positive Adjusted EBITDA for the month of September 2024 for the first time in its history. For Q2 FY2025, Adjusted EBITDA improved to negative $249,000, an 87% reduction in negative Adjusted EBITDA from the comparative prior year period. This signals strong progress towards the company's goal of achieving EBITDA breakeven later in calendar year 2024.

Despite this positive momentum, liquidity remains a key area of focus. As of March 31, 2025, the company had $365,145 in cash and an accumulated deficit of $138.97 million, with cash flow used in operations of $2.31 million for the fiscal year. These conditions have led auditors to express substantial doubt about the company's ability to continue as a going concern.

Management is actively addressing this through cost-saving initiatives, seeking additional equity lines, and potentially deferring certain R&D activities. The company recently secured an additional $635,000 in term loan proceeds and capitalized $1.5 million in interest in November 2024. Furthermore, Biotricity has placed its "largest inventory order ever," a strategic move to support anticipated growth and a clear indicator of management's confidence in reaching profitability, stating that if these units are sold, the company will be "well into the profit category." The company anticipates needing an additional $10 million in capital to fund planned operations and broader U.S. market commercialization. It is important to note that the company's shares were delisted from Nasdaq in August 2024 due to market value non-compliance and now trade on the OTCQB.

Outlook and Risks: Charting the Course Ahead

Biotricity's management is confident in its ability to deliver sustained growth and profitability, with a clear path to positive cash flow. The company's strategic initiatives, particularly in AI-driven diagnostics and expanded market access, are expected to drive this trajectory. The anticipated FDA filing for its AI clinical model by mid-2026 and subsequent commercial availability in mid to late 2026 represent significant milestones that could further enhance its competitive edge and operational efficiency. Continued improvement in overall blended gross margins is expected as the high-margin technology fee revenue grows as a proportion of total sales.

However, investors must consider several risks. The most pressing is the going concern uncertainty, as highlighted by the auditors. While management has outlined mitigation strategies and shown progress towards positive Adjusted EBITDA, the need for additional capital ($10 million for U.S. expansion) and the historical accumulated deficit underscore the importance of successful future financings. The company's success is heavily dependent on physician adoption of its solutions and the ability of customers to secure and maintain adequate third-party reimbursement. Commercial payors may still deem some technologies experimental, and payor consolidation could lead to reduced reimbursement rates.

Operational risks include potential product defects or liability claims, which could lead to costly recalls and reputational damage. Dependence on third-party wireless carriers and data centers for service delivery also exposes the company to risks of telecommunications and data service interruptions. Furthermore, while Biotricity is actively expanding its intellectual property portfolio, the medical device industry is prone to IP litigation, and the inability to protect its trade secrets or defend against infringement claims could significantly impact its business. Rising variable interest rates also pose a challenge, increasing interest expenses and impacting the bottom line.

Conclusion

Biotricity stands at a pivotal juncture, transforming from a development-focused entity into a commercially scaling, AI-driven innovator in remote cardiac care. Its unique insourcing business model, coupled with a comprehensive and technologically advanced product portfolio featuring 3-channel ECGs, cellular connectivity, and a predictive AI platform, provides a strong competitive foundation. The recent achievement of positive Adjusted EBITDA in September 2024, alongside consistent revenue growth and margin expansion, signals a tangible shift towards financial viability.

While the company must navigate the inherent challenges of its growth stage, including liquidity concerns and the need for further capital, its strategic alliances with major GPOs and diversification into new medical fields position it for substantial market penetration. The continuous expansion of its intellectual property creates a robust moat against competitors. For discerning investors, Biotricity represents a compelling opportunity to participate in the evolution of healthcare, driven by technological leadership and a clear path to sustained profitability, provided it continues to execute on its strategic initiatives and effectively manages its financial risks.