Biotricity Inc Aktie

Good afternoon, and welcome to Biotricity's Third Quarter Fiscal 2026 Financial Results and Business Update Conference Call. Today's conference is being recorded. As a reminder, this is Biotricity's Third Quarter fiscal 2026 ended on December 31, 2025. So all figures presented for this period will reflect that end date. Earlier, Biotricity issued its earnings press release for the period, which highlighted financial and operational results. A copy of the press release is available on the Investor Relations section of the Biotricity's website, and the full financials have been filed with the SEC on Form 10-Q and posted on EDGAR at www.sec.gov.

Before beginning the company's formal remarks, I'd like to remind listeners that today's discussion may contain forward-looking statements that reflect management's current views with respect to future events. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. Biotricity does not undertake to update any forward-looking statements, except as required. At this point, I'm pleased to turn the call over to Biotricity's Founder and CEO, Dr. Waqaas Al-Siddiq. Please go ahead, sir.

I would like to first thank everybody for joining us today. This quarter marks another important step for Biotricity as we continue executing our proven strategy, evidenced by 3 consecutive quarters of positive net operating income and EBITDA. As we continue scaling revenue and improving margins, we are strengthening our leadership position in chronic care markets, starting with the #1 global cause of death, cardiovascular disease.

This quarter continues our historic trend of expanding our trailing 12-month top line while setting up for another growth year as we have always done year after year. We are building a company designed for durable recurring growth, and our results this quarter reflect that discipline. Demand for remote patient management solutions continue to accelerate with the growing aging population and persistent resource and staffing shortages.

Biotricity is uniquely positioned to lead the transition from reactive care to proactive management with clinically superior technology, favorable reimbursement economics, strategic partnerships and a highly scalable, efficient operating model, which has allowed us to make remarkable progress across multiple fronts. The cardiovascular and chronic disease management landscape is evolving rapidly, and long-term winners will be companies that combine clinical grade accuracy, reimbursement alignment and scalable infrastructure.

Biotricity brings all 3 together. Unlike others that rely on high-cost service models or divert reimbursement away from providers, our platform is designed to expand patient access while simplifying clinical workflows. This allows providers to serve more patients using existing resources while increasing revenue for services physicians are already providing. That differentiated value proposition continues to drive strong customer retention and expansion within our existing and new accounts.

One of our most significant achievements has been the expansion of our cardiac AI cloud platform. Our AI-driven platform is designed to enhance diagnostic accuracy, improve patient outcomes and increase clinical profitability. As we pursue FDA clearance for our groundbreaking AI clinical model, we are setting new standards in cardiac care, ensuring every patient receives the highest quality of care. We expect to see additional improvements in our operational expenses and margins with our next clearance.

This quarter, we continue to pursue regulatory approvals internationally, preparing for future distribution. These approvals are in addition to the regulatory approvals we already have in the U.S., Canada, Saudi Arabia, Argentina and some other smaller markets. These approvals underpin our strategy to promote accessible high-quality care to improve patient outcomes. Our primary focus remains on the U.S. market expansion, but we are opportunistically expanding outside of the U.S. through distribution partnerships.

We are also extending care beyond the clinic by putting clinical quality tools directly in the hands of consumers through Bioheart. Built with the same underlying technology trusted by providers, Bioheart enables users to identify meaningful changes earlier and make lifestyle adjustments sooner, supporting their long-term outcomes. Through a multichannel distribution approach through experienced partners to optimize these routes, we are making monitoring more continuous and integrated across the care journey.

During the quarter, we continued to expand sales of Biocore Pro, our next-generation cardiac monitoring device, deepening penetration within current customers and extending our market footprint. Our momentum continues to build across the business. We launched multiple large-scale cardiac monitoring pilot programs within hospital networks and clinic groups, initiatives that are already contributing to improved utilization and accelerating our path towards breakeven.

Based on the current demand and pipeline visibility, we expect continued strong adoption of Biocore Pro across existing and new customers. This expansion supports our broader commitment to deliver innovative health care technology solutions. In summary, our strategic initiatives, technological advancements and operational efficiencies have positioned Biotricity for sustained growth and profitability for calendar 2026.

We expect to continue to increase top line revenue this year, shift to profitability and post another growth year. We remain focused on delivering innovative, high-quality cardiac care solutions and are confident in our ability to continue driving value for our shareholders and improving patient outcomes globally. With that, I will turn the call over to our CFO, John Ayanoglou, to provide more detailed financial insights.

Thank you, Waqaas. Let's review the highlights of our third quarter fiscal 2026. Our recurring revenue reflects strong market adoption of our primary subscription model, which is a Technology-as-a-Service subscription model. Recurring revenues through our secondary usage-based subscription model also remain robust. Both are driven by the popularity of our FDA-cleared cardiac monitor devices, especially the next-generation Biocore Pro, which features cellular connectivity.

Our rapidly expanding digital ecosystem reflects this growth with users of our digital health app growing from 4,500 to more than 44,000 in just 2 years and an expanding network of over 2,500 providers supporting 400,000 patients annually. Atrial fibrillation, a primary contributor to strokes, remains a significant focus of our business. Biotricity is providing early intervention opportunities and improving patient outcomes for patients with atrial fibrillation, providing them the opportunity for earlier medical intervention.

This not only improves patient outcomes, it also has the propensity to deliver significant health care cost savings for both individuals and the broader health care system. For the third quarter of fiscal 2026 ended December 31, 2025, revenue increased by 10.2% compared to the corresponding prior year period to $4 million from $3.6 million in the prior year quarter. This growth is a testament to the efficacy of our strategic initiatives and our technological advancements.

We anticipate further revenue growth in coming quarters as a result of the fact that our latest flagship device is a best-in-class device that is geared towards use in hospitals and large clinics, and we are continuing to penetrate effectively in that space. Technology fees accounted for 91.2% of the quarter's total revenue, reflecting our strong customer retention and the quality of our support services. Gross profit for the quarter totaled $3.3 million, up 17.6% from $2.8 million for the prior year period. Our gross profit percentage improved 516 basis points to 81.5% for this quarter, up from 76.4% in the corresponding prior year quarter.

This increase is attributable to the expansion of our recurring technology fee revenue base as well as efficiencies gained through proprietary AI and improvements in our monitoring and cloud cost structures. As part of our sales initiatives, we continue to search for opportunities to expand our geographic footprint. We serve thousands of cardiologists across hundreds of centers. Our in-sourcing business model allows these cardiac medical professionals to have direct control over our services, thus enhancing efficiencies and enabling broader market penetration.

Our business development initiatives include expansion into other verticals that are ancillary that fit naturally with our core business. Operating expenses for the third quarter were $2.8 million compared to $2.93 million in the same period last year, a 4.2% decrease. Our selling, general and admin expenses decreased by 8.2%, a comparative reduction in spending of over $195,000 for this quarter, but we added to our R&D expenses, increasing those by $72,000. As previously discussed, we have strategically transformed our sales force to increase efficiency. Our external sales team is focused on longer sales cycles on larger accounts, and these include independent hospitals and GPO networks.

We continue to be contracted under 3 of the largest GPO networks, which give us coveted access to sell into more than 90% of hospitals in the U.S. All of these positive improvements in revenue growth and operating efficiencies through the use of AI and other automation as well as proactive cost management have allowed us to continue to achieve positive free cash flows, defined as the cash from operations that is available to pay interest and dividends for the last 6 consecutive quarters that has set us up on a path toward achieving profitability in the next quarter.

In fact, we are pleased that this quarter, the third quarter of fiscal 2026 is the third consecutive quarter for Biotricity in which it has achieved a positive EBITDA. This is an important milestone and indicator that we're nearing full profitability. The company achieved EBITDA of $280,000 this quarter, which corresponds to $0.01 on a per share basis. A reconciliation of our EBITDA and adjusted EBITDA numbers is available in our 10-Q. We're pleased with the progress made in building our technology, obtaining FDA registrations and developing effective sales strategies as well as implementing cost-cutting measures.

The result has been an improvement in operating results of nearly $1 million to achieve our third consecutive profitable quarter from operations, which was $441,000 for this quarter. Net loss attributable to common stockholders for the fiscal 3-month period ended December 31, 2025, was $1.1 million compared to $1.3 million during the corresponding prior year period. On a per share basis, we reported a loss per share of $0.042 compared to $0.054 for the corresponding prior year period.

Looking ahead, we remain committed to advancing our business through the commercialization of our Biocore, Bioflux and Biocare products. Our tech is truly useful globally, and cardiac is the #1 chronic care condition in the entire world. The growing market interest and demand for our suite of products dedicated to chronic cardiac disease prevention and management reinforce our confidence in our market position. Importantly, our focus on innovation and development continues to yield significant advancements in remote monitoring solutions for both diagnostic and post-diagnostic products, bringing us ever closer to profitability.

We are excited about the future and confident in our ability to deliver sustained growth and profitability for Biotricity. That concludes our prepared remarks for today. Operator, please open the line for questions.

[Operator Instructions] There are no questions at this time. Gentlemen, we'll turn the conference back over to you for any additional or closing remarks.

Thank you, and thank you, everybody, for joining us. We're very excited about this [indiscernible] about the prospects of 2026. We think that the top line of the company is going to continue to grow, and we expect to turn into net income positive this year. And we are looking forward to talking to all of you in our next quarterly call. Thank you.

Thank you, sir. That does conclude today's teleconference. We thank you for your participation. You may now disconnect.

Good afternoon, and welcome to Biotricity's Second Quarter Fiscal 2026 Financial Results and Business Update Conference Call. Today's conference is being recorded. As a reminder, this is Biotricity's Second Quarter Fiscal 2026 ended on September 30, 2025. So all figures presented for this period will reflect that end date. Earlier, Biotricity issued its earnings press release for the period, which highlighted financial and operational results. A copy of the press release is available on the Investor Relations section of Biotricity's website and full financials have been filed with the SEC on Form 10-Q and posted on EDGAR at www.sec.gov.

Before beginning the company's formal remarks, I'd like to remind the listeners that today's discussions may contain forward-looking statements that reflect management's current views with respect to future events. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. Biotricity does not undertake to update any forward-looking statements except as required.

At this point, I'm pleased to turn the call over to Biotricity's founder and CEO, Dr. Waqaas Al-Siddiq. Please go ahead.

Hi, everybody. I would like to first thank everybody for joining us today. Fiscal 2026 has been a pivotal year for Biotricity, defined by significant advancements and strategic initiatives that have brought us to the threshold of profitability. Our relentless focus on innovation, strategic partnerships and operational excellence have positioned the company for continued growth and scalability across multiple fronts. This is a milestone as it sets the foundation for continued growth.

With our approach to operational efficiency and automation, we can continue to scale and grow the business while maintaining margins and costs. We believe we have achieved economies of scale where new revenue will have incremental operational costs but with declining ratios, driving us to a healthy net margin business similar to other SaaS-like businesses. Technologically, we are continuing to hone our AI clinical model while developing next-generation diagnostic technologies. Our focus is to have a suite of diagnostic tools that are available to clinicians for more comprehensive screenings.

To that end, we are now in the process of developing a multiparameter cardiac monitor. In preparation of this ultimate goal, we are finalizing Biocore Pro 2, our next-generation cardiac monitor with an expanded set of capabilities, which we expect to file for FDA by end of Q1 next year.

During the latest quarter, we continued to expand sales of Biocore Pro, our next-generation cardiac monitoring device, strengthening our industry presence and underscoring our dedication to delivering cutting-edge health care technology. This includes recent initiatives that continue to build momentum, including the launch of major cardiac monitoring pilot programs with several hospital networks and clinics, accelerating our path to breakeven. These efforts are anticipated to fuel the rapid adoption of our Biocore Pro, expanding use across existing and new customer bases.

Alongside sales expansion, we are focused on expanding our strategic partnerships to build complementary distribution channels where we are inactive. Recently, this has culminated in market expansion with contracts in the VA and leading home care groups. Additionally, we continue to expand our pulmonary and neurology partnerships with leading home-based diagnostic companies, diversifying our market reach.

In summary, our innovation, strategic execution and operational efficiency have positioned Biotricity for sustained growth and profitability. In the coming year, our focus is to expand our commercial team, investing profits into commercial expansion to increase market share and drive top line growth. We expect our growth rate to improve as we invest profits into commercial expansion. We remain focused on delivering innovative high-quality cardiac care solutions and are confident in our ability to continue driving value for our shareholders while improving patient outcomes worldwide.

With that, I will turn the call over to our CFO, John Ayanoglou, to provide more detailed financial insights.

Thank you, Waqaas. Let's review the highlights of our second quarter fiscal 2026.

Our recurring revenue generated as a result of strong market adoption of our Technology-as-a-Service subscription model as well as our usage-based subscriptions remain robust, driven by the popularity of our FDA-cleared cardiac monitoring devices, especially the next-gen Biocore Pro, which features cellular connectivity.

Atrial fibrillation, a primary contributor to strokes, remains a significant focus for our business. Biotricity has already monitored and recorded well over 2 trillion heartbeats, improving patient outcomes for patients with atrial fibrillation, increasing their chances of earlier medical intervention. This is not only an improvement in patient outcomes, it also has the propensity to deliver significant health care cost savings for both patients and the broader health care system.

For the second quarter of fiscal '26 ended September 30, 2025, revenue increased by 19% compared to the corresponding prior year period to $3.9 million from $3.3 million in the prior quarter. This growth is reflective of our strategic initiatives and directly impacted by our focus on continual technological advancement. We see further revenue growth in our sales pipeline in coming quarters and are optimistic about delivering those future results, which reflect the fact that our latest flagship device is a best-in-class device geared towards use in hospitals and large clinics where we continue to penetrate effectively.

Technology fees accounted for 89% of the quarter's total revenue, reflecting strong customer satisfaction and retention and quality support services. Gross profit for the quarter totaled $3.2 million, up 29.4% from $2.5 million of the prior year period. Our gross profit percentage improved 660 basis points to 81.9% for this quarter, up from 75.3% in the corresponding prior year quarter. This increase is attributable to the expansion of our recurring technology fee revenue base, efficiencies gained through our proprietary AI and improvements in our monitoring and cloud cost structure.

As part of our sales initiatives, we continue to search for opportunities to expand our geographic footprint. We serve thousands of cardiologists across hundreds of centers. Our in-sourcing business model allows these cardiac medical professionals to have direct control over our services, enhancing efficiency and enabling broader market penetration. Our business development initiatives include expansion into other verticals that are ancillary but fit naturally with our core business. We continue to investigate those types of opportunities for the future.

Operating expenses for the second quarter were $2.9 million compared to $2.8 million in the same period last year, which is a 5.1% increase. Our SG&A expenses increased by 2.5%, a comparative additional spending of over $56,000 for this quarter, though we added to our R&D expenses, increasing those by $84,000.

As previously discussed, we have strategically transformed our sales force to increase efficiency. Our external sales team is focused on longer sales cycles in larger accounts, including independent hospitals and GPO networks. We are contracted under 3 of the largest GPO networks, which gives us coveted access to sell into more than 90% of hospitals in the U.S.

All of these positive improvements in revenue growth and operating efficiencies through the use of AI and other automation as well as proactive cost management have allowed us to continue to achieve positive free cash flows, defined as the cash from operations that is available to pay interest and dividends. And we've done this for the last 5 consecutive quarters and has been set on a path to achieve profitability in the next few quarters. In fact, we're pleased that this quarter, the second quarter of fiscal 2026 is the second consecutive quarter of Biotricity in which it has achieved a positive EBITDA.

This is an important milestone and indicator that we are nearing full profitability. The company achieved EBITDA of $373,000 this quarter, which corresponds to $0.14 on a per share basis. A reconciliation of our EBITDA and adjusted EBITDA numbers is available in our 10-Q. We are pleased with the progress made in building our technology, obtaining FDA registrations, developing effective sales strategies and implementing cost-cutting measures. The result has been an improvement in operating results of nearly $0.6 million to achieve our second consecutive profitable quarter from operations, which was $274,000 for this quarter.

Net loss attributable to common shareholders for the fiscal 3-month period was $772,000 compared to $1.6 million during the corresponding prior year period. On a per share basis, we reported a loss per share of $0.29 compared to $0.73 for the corresponding prior year period.

Looking ahead, we remain committed to advancing our business through commercialization of our Biocore, Bioflux and Biocare products. Our tech is truly useful globally, and cardiac is the #1 chronic care condition in the entire world. The growing market interest and demand for our suite of products dedicated to chronic cardiac disease prevention and management reinforce our confidence in our market position.

Importantly, our focus on innovation and development continues to yield significant advancements in our remote monitoring solutions for both diagnostic and post-diagnostic products, bringing us ever closer again to profitability. We are excited about the future and confident in our ability to deliver sustained growth and profitability for Biotricity.

That concludes our prepared remarks. Operator, please open the line for questions.

[Operator Instructions]

Okay. Gentlemen, it looks like there are no further questions at this time. I'd like to turn the conference back to management for any closing remarks.

Thank you, and thank you all for attending. This has been a fantastic quarter for us as we believe it is the moment we achieved economies of scale. We are confident that we are on the cusp of profitability and expect increasing revenues while maintaining margin. Our focus now is to scale the business, investing in the expansion of our commercial team to drive growth and market share.

If I had to distill our message into key takeaways for the next 12 months, they would be as follows: one, our revenue will continue to increase; two, our margins will be maintained; three, we will be profitable and we will invest our profits into commercial expansion to increase revenue and market share; and four, we will continue to innovate. Thank you, and have a great day.

And with that, everyone, this does conclude today's teleconference. We thank you for your participation, and you may disconnect your lines at this time. Have a wonderful rest of your evening.

Good afternoon, and welcome to Biotricity's First Quarter Fiscal 2026 Financial Results and Business Update Conference Call. Today's conference is being recorded. As a reminder, this is Biotricity's first quarter fiscal 2026 ended on June 30, 2025, so all figures presented for this period will reflect that end date.

Earlier, Biotricity issued its earnings press release for the period, which highlighted financial and operational results. A copy of the press release is available on the Investor Relations section of the Biotricity website, and the full financials have been filed with the SEC on Form 10-Q and posted on EDGAR at www.sec.gov.

Before beginning the company's formal remarks, I'd like to remind listeners that today's discussion may contain forward-looking statements that reflect management's current views with respect to future events. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements.

Biotricity does not undertake to update any forward-looking statements, except as required. At this point, I am pleased to turn the call over to Biotricity's Founder and CEO, Dr. Waqaas Al-Siddiq. Please go ahead.

I'd like to first thank everybody for joining us today. Fiscal 2025 has been a transformative year for Biotricity, marked by significant advancements and strategic initiatives that positioned us at the doorstep of profitability. Our commitment to innovative strategic partnerships and operational efficiency has allowed us to make remarkable progress across multiple fronts.

One of our most significant achievements has been the expansion of our cardiac AI cloud platform. This initiative powered by strategic partnerships with industry giants such as Amazon AWS and Google TensorFlow leverages over 2 trillion heartbeats of anonymized data.

Our AI-driven platform is designed to enhance diagnostic accuracy, improve patient outcomes and increase clinic profitability. As we pursue FDA clearance for our groundbreaking AI clinical model, we are setting new standards in cardiac care, ensuring every patient receives the highest quality of care.

We believe that our strategic alliances with 3 of the top group purchasing organizations, otherwise known as GPOs in the U.S., will be pivotal in our future growth. These partnerships provide us access to approximately 90% of all hospitals in the United States, significantly expanding our market access.

To that end, we are excited about new opportunities for strategic partnerships that we believe will allow for further U.S. market expansion and allow us to capitalize on market channels and secure advantageous terms for our solutions.

This quarter, we continue to pursue regulatory approvals internationally, setting us up for future distribution. We now have regulatory approvals in Canada, Saudi Arabia, Argentina and some other smaller markets. These approvals align perfectly with our strategy to promote accessible high-quality care and improve patient outcomes.

During this last quarter, we have expanded sales of our BioCore Pro, our next-generation cardiac monitoring solution and continue to penetrate and expand our market footprint. This includes recent initiatives that continue to build up momentum, including the launch of major cardiac monitoring pilot programs with several hospitals and large networks and clinics.

These are expected to continue to result in the rapid adoption of our BioCore Pro, both by existing and new customers. To allow for this, we have delivered a best-in-class clinical solution with award-winning technology and industry-leading patient compliance. Additionally, our strategic entry into the pulmonary and neurology fields through partnerships with leading home-based diagnostic solutions marks a significant diversification of our market access.

In summary, our strategic initiatives, technological advancements and operational efficiencies have positioned Biotricity for sustained growth and profitability. We remain focused on delivering innovative, high-quality cardiac care solutions and are confident in our ability to continue driving value for our shareholders and improving patient outcomes globally. With that, I will turn the call over to our CFO, John Ayanoglou, to provide more detailed financial insights.

Thank you, Waqaas. Let's review the highlights. For our first quarter fiscal 2026, our recurring revenue generated as a result of strong market adoption of our Technology-as-a-Service subscription model as well as our usage-based subscriptions remains robust, driven by the popularity of our FDA-cleared cardiac monitoring technology, especially the next-generation BioCore Pro, which features cellular connectivity.

Atrial fibrillation, a primary contributor to strokes, remains a significant focus for our business. Biotricity is already monitored and recorded well over 2 trillion heartbeats, providing early intervention opportunities and improving patient outcomes for patients with atrial fibrillation, providing them the opportunity for earlier medical intervention.

This not only improves patient outcomes, it also has the propensity to deliver significant health care cost savings for both individuals and the broader health care system. For the first quarter of 2026 ended June 30, 2025, revenue increased by 21% compared to the corresponding period of the prior year to $3.9 million compared to $3.2 million in the prior year quarter.

This growth is a testament to the efficacy of our strategic initiatives and our technological advancements. We anticipate further revenue growth in coming quarters as a result of the fact that our latest flagship device is a best-in-class device that is geared towards use in hospitals and large clinics, and we are continuing to penetrate effectively in that space.

Technology fees accounted for 87% of the quarter's total revenue, reflecting our strong customer retention and the quality of our support services. Gross profit for the quarter totaled $3.1 million, up 31.9% from the $2.4 million of the prior year period.

Our gross profit percentage improved 665 basis points to 80.5% for this quarter, up from 73.8% in the corresponding prior year quarter. This increase is attributable to the expansion of our recurring technology fee revenue base, efficiencies gained through our proprietary AI and improvements in our monitoring and cloud cost structure.

As part of our sales initiatives, we continue to search for opportunities to expand our geographic footprint. We serve thousands of cardiologists across hundreds of centers. Our in-sourcing business model allows these cardiac professionals to have direct control over our services, enhancing efficiencies and enabling broader market penetration. Our business development initiatives include expansion into other verticals that are ancillary but fit naturally with our core business.

Operating expenses for the first quarter were $2.8 million compared to $3.5 million in the same period last year, which is an 18.5% decrease. Our SG&A expenses decreased by 27.9%, a comparable savings of over $827,000 for this quarter, though we added to our R&D expenses increasing those by $182,000.

As previously discussed, we have strategically transformed our sales force to increase efficiency. Our external sales team is focused on longer sales cycles in larger accounts, including independent hospitals and GPO networks. We are contracted under 3 of the largest GPO networks, which, as we've said before, gives us coveted access to sell into more than 90% of hospitals in the U.S.

All these positive improvements in revenue growth and operating efficiencies through the use of AI and other automation as well as proactive cost management have allowed us to continue to achieve positive free cash flows, defined as the cash from operations that is available to pay interest and dividends. And we've done this for the last 4 consecutive quarters and has been set on a path towards achieving profitability in the next few quarters.

In fact, we're pleased to announce that this quarter, the first quarter of fiscal 2026 is the first quarter in the history of Biotricity in which it has achieved a positive EBITDA. This is an important milestone and indicator that we are nearing full profitability. The company achieved EBITDA of $333,000 this quarter, which corresponds to $0.013 on a per share basis. A reconciliation of our EBITDA can be found in our 10-Q, which is filed on EDGAR.

We are pleased with the progress made in building our technology and obtaining FDA registrations as well as developing effective sales strategies and implementing cost-cutting measures. The result has been an improvement in operating results of nearly $1.4 million to achieve our first ever profit from operations, which was $282,000 for this quarter.

Net loss attributable to common stockholders for the first 3-month period ended June 30, 2025, was $754,000 compared to a net loss to common shareholders of $6.9 million during the corresponding prior year period. On a per share basis, we reported a loss per share of $0.029 compared to $0.49 for the corresponding prior year period.

Even after removing the effects of a $3 million deemed dividend, which was a one-time item in the prior year period, we've made significant comparative improvement. This was an additional $3.1 million improvement year-over-year despite the expenses associated with growth and rising variable interest rates.

Looking ahead, we remain committed to advancing our business through the commercialization of our Biocore, Bioflux and Biocare products. Our tech is truly useful globally. Cardiac is the #1 chronic care condition in the entire world. The growing market interest and demand for our suite of products dedicated to chronic cardiac disease prevention and management reinforce our confidence in our market position.

Importantly, our focus on innovation and development continues to yield significant advancements in remote monitoring solutions for both diagnostic and post-diagnostic products. bringing us ever closer to profitability.

We're excited about the future and continue to be confident about our ability to deliver sustained growth and profitability for Biotricity. And that concludes our prepared remarks. Operator, please open the line for questions.

[Operator Instructions] Seeing no questions. Gentlemen, we'll turn the conference back over to you for any additional or closing remarks.

Thank you, everybody, for joining us on our call today. We are incredibly excited about the next fiscal year. Moving into positive EBITDA is a huge milestone for the company and us showing that we can maintain margins, increase growth and turning to an EBITDA positive company puts us on a pathway to profitability and continued expansion. So we look forward to hearing and talking to you on our next quarterly call. Thank you.

Thank you, sir. That does conclude today's conference call. We thank you for your participation. You may now disconnect.

Good afternoon, everyone. As a reminder, Biotricity's fourth quarter and fiscal year 2025 ended on March 31, 2025. So all figures presented for this period will reflect that end date. Earlier, Biotricity issued its earnings press release for the period, which highlighted financial and operational results. A copy of the press release is available on the Investor Relations section of the Biotricity website. And the full financial have been filed with SEC on Form 10-K and posted on EDGAR at www.sec.gov.

Before beginning the company's formal remarks, I would like to remind listeners that today's discussion may contain forward-looking statements that reflect management's current views with respect to future events. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. Biotricity does not undertake update -- to update any forward-looking statements except as required.

At this point, I am pleased to turn the call over to Biotricity's Founder and CEO, Dr. Waqaas Al-Siddiq. Please go ahead.

Thank you, and thank you, everybody, for joining us today. Fiscal 2025 has been a transformative year for Biotricity, marked by significant advancements and strategic initiatives that have positioned us at the doorstep of profitability and positive EBITDA. Our commitment to innovation, strategic partnerships and operational efficiency has allowed us to make remarkable progress across multiple fronts.

One of our most significant achievements this year has been the expansion of our Cardiac AI cloud platform. This initiative, powered by strategic partnerships with industry giants such as Amazon, AWS and Google's TensorFlow, leverages over 1 trillion heartbeats of anonymized data. Our AI-driven platform is designed to enhance diagnostic accuracy, improve patient outcomes and increase clinic profitability. As we pursue FDA clearance for our groundbreaking AI clinical model, we are setting new standards in cardiac care, ensuring every patient receives the highest quality of care.

Our recent strategic alliances with 3 of the top group purchasing organizations, or GPOs, have been pivotal. These partnerships provide us access to approximately 90% of all hospitals in the United States, significantly expanding our market reach. This positions us to capitalize on broader market channels and secure advantageous terms for medical devices and supplies, strengthening our presence in the health care technology sector. Though these sales are characterized by long sales cycles and rollout periods, the associated volumes can drive significant growth as these deals are won and are rolled out.

Moreover, the Health Canada approval for our Biocore device has opened new avenues for revenue growth in the CAD 1.56 billion cardiology devices market. In another major move towards expansion, we just received regulatory approval in Saudi Arabia. This approval aligns perfectly with our strategy to promote accessible, high-quality care and improve patient outcomes.

During the fourth quarter, we expanded sales of our Biocore Pro, our next-generation cardiac monitoring device, and entered into several strategic partnerships, including some that will expand our market footprint and allow us to deliver on our commitment of providing innovative health care technology solutions.

Looking beyond fiscal 2025, our recent initiatives continue to build momentum. We have launched major cardiac monitoring pilot programs with several hospital networks and clinics, and we are accelerating our path to breakeven with rapid adoption of our Biocore Pro by both existing and new customers. We have delivered a best-in-class solution that achieves accolades for its usability and high patient compliance. Today, we can confidently say our ambulatory cardiac monitoring solution is best-in-class, both clinically and technically, with a superior device and software.

Additionally, our expansion into the pulmonary and neurology fields through strategic partnerships with leading home-based diagnostic companies marks a diversification of our market reach. Furthermore, we are extremely excited about the recent launch of HeartSecure, our direct-to-consumer heart health screening service. We have received positive feedback on the service and are now building a broader strategy to scale the service. This service targets the $1.1 billion home heart health market and represents our commitment to making heart health services more accessible in response to the global challenge posed by cardiovascular disease.

In summary, our strategic initiatives, technological advancements and operational efficiencies have positioned Biotricity for sustained growth and profitability. We remain focused on delivering innovative, high-quality cardiac care solutions and are confident in our ability to continue driving value for our shareholders and improving patient outcomes globally.

With that, I will turn the call over to our CFO, John Ayanoglou, to provide more detailed financial insights.

Thank you, Waqaas. Let's review the audited highlights of our fourth quarter and fiscal 2025. Our recurring revenue generated from our Technology-as-a-Service subscription model as well as our usage-based subscriptions remains robust, driven by the popularity of our FDA-cleared cardiac monitoring devices Biocore and Bioflux. Both continue to see strong market adoption and demand, particularly the next-generation Biocore Pro, which features cellular connectivity.

Atrial fibrillation, a primary contributor to strokes, remains a significant focus for us. To date, Biotricity has monitored and recorded over 1 trillion heartbeats, providing early intervention opportunities and improving patient outcomes. This not only improves patient outcomes but also underscores significant health care cost savings for both individuals and the broader health care system.

For the fourth quarter ended March 31, 2025, revenue increased by 16.5% year-over-year to $3.7 million. For the fiscal year, revenue rose by 14.3% to $13.8 million compared to $12.1 million in the prior year. This growth is a testament to the efficacy of our strategic initiatives and our focus on transitioning customers to a flat-fee, subscription-based model, which establishes a higher quality and more predictable revenue stream. We anticipate further revenue growth in coming quarters as a result of our latest flagship device being a best-in-class device that is geared towards use in hospitals and large clinics where we are continuing to penetrate effectively.

Technology fees accounted for 84.4% of the quarter's total revenue, reflecting our strong customer retention and the quality of our support services. Gross profit for the quarter totaled $3 million, up 31% from $2.3 million of the prior year period. Our gross profit percentage improved over 730 basis points to 76.6% for the fiscal year, up from 69.3% in the prior year.

For the fourth quarter, gross margin was 80.4%, an improvement of over 890 basis points compared to 71.5% in the same quarter of the prior year. This increase is attributed to the expansion of our recurring technology fee revenue base, efficiencies gained through proprietary AI and improvements in our monitoring cost structure. Through the success of our sales team, we continue to look for opportunities to expand our geographic footprint. We are serving thousands of cardiologists across hundreds of centers. Our insourcing business model allows cardiac medical professionals to have direct control over our services, enhancing efficiencies and enabling broader market penetration. Our business development initiatives also mean that we are expanding into other verticals that are ancillary to our core business, something we will be discussing with you in future quarters.

Operating expenses for the fiscal year ended March 31, 2025, were $13 million, a 24.5% decrease from $17.2 million in the prior year. For the fourth quarter, operating expenses were $3.8 million compared to $5.3 million in the same period last year. Our SG&A expenses decreased by 30.2%, and we reduced our R&D expenses by 19.2%.

We have strategically transformed our sales force to increase efficiency. Our external sales team is focused on longer sales cycles and larger accounts, including independent hospitals and GPO networks. As mentioned previously, we've signed 3 of the largest GPO networks with access to sell into more than 90% of hospitals in the U.S. All of these positive improvements in revenue growth and operating efficiencies through the use of AI and other automation as well as proactive cost management have allowed us to continue to achieve positive operating cash flows for the third consecutive quarter and have set us up on a path to achieving profitability in the next few quarters.

In fact, we're pleased that the last quarter of fiscal 2025 was one in which we achieved positive adjusted EBITDA of $438,000 when adjusting EBITDA for noncash items like share-based compensation and fair value changes in derivatives. On a per share basis, that corresponds to $0.017 per share. We're pleased with the progress made in building our technology, in obtaining FDA registrations, developing effective sales strategies and implementing cost-cutting measures.

On a fiscal year basis, our total operating expenses were reduced by $6.4 million. This resulted in an improvement in our loss from operations of $5.7 million. Net loss attributable to common stockholders for the fiscal year ended March 31, 2025, was $11.9 million compared to a net loss of $14.9 million during the prior fiscal year. On a per share basis, we reported a loss per share of $0.555 compared to $1.66 for the prior fiscal year. For the fourth quarter, net loss decreased to $2 million despite the expenses associated with growth and rising variable interest rates. On a per share basis, this translates to a loss per share of $0.08 compared to $ 0.466 for the corresponding period of the prior fiscal year.

Again, adjusted EBITDA for the fiscal year improved to a loss of just under $1 million from a loss of $7.8 million in fiscal '24. This improvement underscores our progress towards breakeven and profitability. A reconciliation of our adjusted EBITDA numbers both for the fiscal year and the quarter is available in our 10-K.

Looking ahead, we remain committed to advancing the commercialization of Biocore, Bioflux and Biocare products. Our tech is truly useful globally since cardiac is the #1 chronic care condition in the entire world. We have recently made inroads or received approvals from regulatory bodies of other countries that will allow us to sell into other jurisdictions. These set us up for new initiatives we intend to move forward on in 2026 and beyond.

The growing market interest and demand for our suite of products dedicated to chronic cardiac disease prevention and management reinforce our confidence in our market position. Importantly, our focus on innovation and development continues to yield significant advancements in remote monitoring solutions for both diagnostic and post-diagnostic products, bringing us closer to achieving positive cash flow. We are excited about the future and confident in our ability to deliver sustained growth and profitability for Biotricity.

That concludes our prepared remarks. Operator, please open the line for questions.

[Operator Instructions] Our first question comes from the line of Kevin Dede with H.C. Wainwright.

This is Michael Donovan calling in for Kevin Dede. So we're obviously excited about the portfolio of your products and relationships with GPOs. You're directionally heading in the right direction. What -- when can we expect greater acceleration in terms of revenue?

Yes. I think that the GPOs -- as we roll out pilots and as we have announced previously, those pilots, multistate, large organizations. So they take time to close and sales cycles on upwards of a year. So we're engaging those pilots. And over the next coming quarters, we will be providing more details as hopefully, we win them and roll them out. And you'll see revenue trickling in as these guys complete the pilots and sign up, but more importantly, roll it out.

Okay. Now which cost levers give you confidence margins can stay above 80% in 2026?

So our highest margin area, right, is our -- really our technology

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delivering the data analysis and the output from our device. The costs that are giving us the good margin is we're getting economies of scale now, right? So there's a certain cost [indiscernible] a data infrastructure and a data cloud available. There's a certain cost that's related with just having contracts with the cellular companies to transmit data through [indiscernible] they're all cellular based. And as we have grown, we've hit that economies of scale. So every net new device that we add on the platform costs less than it was costing us in the previous years.

That's helpful. Now you referenced -- now speaking to data, you referenced over 1 trillion beats in your data lake. Now beyond improving clinical algorithms, can this data set be monetized?

Absolutely. I mean most people don't have that level of data set available or accessible. So we certainly have an opportunity to monetize that. I think cardiac is the #1 killer. There is a big focus on trying to look at data to try to determine where and how you can predict issues, so you can minimize hospital interventions. Big pharma is also interested

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that's again an area that they're focused on.

So I think that there is an opportunity to monetize outside of our internal analysis. That requires a team and somebody who's focused on packaging and selling data. And I'll be transparent that we don't have that skill set in-house right now, but we do plan on building it out. So as we reach profitability, it's an area that we plan on investing into.

In the meantime, we're using that data lake to optimize and improve our clinical workflow so that similar kind of economies of scale and so that when we

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we're able to do a lot more focused analysis. So as opposed to spending time processing and reviewing every single beat, we're able to -- through automation and improvements and being able to predict, our team can actually

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so the throughput improves.

Great. And can you discuss more about your efforts in pursuing FDA clearance for your AI clinical model? What needs to be completed before reaching preclearance?

Yes. So

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with the FDA, especially with how AI is coming in and how they're looking at it. So our process right now

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analyze. Now we're bringing in experts to provide secondary input. You go and you present that to the FDA in a pre-sub meeting, let them give you feedback on whether the way the data is presented and how it's reviewed is done in the right way. I mean we have a good relationship with the FDA. We have multiple clearances. We are also part of the FDA MDSAP program. So we have a very good relationship there because the simple stuff and the algorithmic stuff and the -- I would say the low-hanging optimizations and where you can improve, we've already established that.

We're now going for a lot more complex and nuanced type of clearances, right, where we can go further and

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much better results, and that will supply that throughput. So FDA is very, very specific on how that information is presented. So it's a longer process, but we're also going for a bigger opportunity.

I appreciate that added color. Congrats on Saudi Arabia. How do you see this market impacting revenue for the rest of calendar year '25 and next year?

Yes. I think it's a 2026 thing. I mean all of these clearances we found -- we got them in Canada. We are opportunistic, right, as we see a partner or somebody who reaches out to us and says, hey, we would be very interested in having your technology in the local market. We'll go and we'll get a clearance for it. And I think from our perspective, if we can get over the next couple of years 20%, 30% international business, which makes sense and is achievable, I think that's fantastic.

Next year, I think if we can get $0.5 million to $1 million added revenue from distribution partnerships in international markets, I think that's a win for us because it's something that -- it's inbound. It's not something that we're actively outgoing pursuing. But if somebody credible, some opportunistic distribution partner comes in and contacts us, we do respond and we do push on that opportunity. And if it works out, then it's very positive and accretive to the overall organization.

Thank you. There are no further questions at this time. And Dr. Al-Siddiq, we'll turn the conference back over to you for any additional or closing remarks.

Thank you, and thank you, everybody, for joining our call. As always, your support is appreciated. I think this year was a transformational year for us. We're very excited [indiscernible] I spoke with earlier on the call was about us

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getting in reach of profitability, but also we're hitting economies of scale. So every new account that we add, our ability to service that account, our ability to grow that account, every device that we add on, the costs are much less than they were in the previous year. So as we grow, we actually see our top line revenue growing faster than our operational expense. And we think that, that trend is going to continue because of us reaching economies of scale. With that, thank

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to speaking to all of you next quarter.

Thank you, sir. That does conclude today's conference. We thank you for your participation. You may now disconnect.