10-Q: Biotricity Narrows Losses, Boosts Revenue 16.5%

Sentiment:

Quarterly Report 11 February 2026 4:29 PM

Biotricity Inc. reported significant revenue growth and improved operating profit for the nine months ended December 31, 2025, despite ongoing net losses and working capital challenges.

Capital raiseManagement explicitly states the need to seek additional debt or equity capital to respond to business opportunities and challenges, including ongoing operating expenses and product development.The company issued 147,150 warrants to its term lender in December 2025 in connection with a forbearance agreement, indicating ongoing financing activities and potential restructuring of existing debt.In November 2024, the company received an additional $635 thousand in term loan proceeds and capitalized approximately $1.5 million in interest amounts due on its existing term loan, also issuing 600,000, 7-year share warrants to the term lender.During the nine months ended December 31, 2025, the company issued $1,365,000 in unsecured convertible promissory notes to private investors.The company entered into a financing arrangement in July 2025, receiving $250,000 from an individual investor.In August 2025, the company received $1,150,000 from a commercial counterparty related to financing arrangements, recorded as a short-term loan.

Better than expectedRevenue increased by 16.5% year-over-year for the nine months ended December 31, 2025.Gross margin improved significantly to 81.3% from 75.2% in the prior year period.The company achieved a positive profit from operations of $996,679, a substantial improvement from a loss of $1,593,500 in the prior year.Net loss before dividends was significantly reduced to $2,079,957 from $6,485,442 in the prior year.EBITDA and Adjusted EBITDA both turned positive, indicating improved operational profitability.Selling, general and administrative expenses decreased by 12.7%, demonstrating effective cost control.

Summary

Revenue for the nine months ended December 31, 2025, increased by 16.5% to $11.7 million, up from $10.1 million in the prior year period.
Gross profit rose to $9.5 million from $7.6 million, with gross margin improving to 81.3% from 75.2% year-over-year.
The company achieved a positive profit from operations of $996,679 for the nine months ended December 31, 2025, a significant improvement from a loss of $1.6 million in the prior year.
Net loss before dividends decreased substantially to $2.1 million for the nine months ended December 31, 2025, compared to $6.5 million in the same period last year.
EBITDA turned positive at $986,703 for the nine months ended December 31, 2025, from a negative $2.3 million in the prior year, with Adjusted EBITDA also positive at $1.0 million.
Despite operational improvements, the company reported an accumulated deficit of $142.1 million and a working capital deficiency of $18.8 million as of December 31, 2025, raising substantial doubt about its ability to continue as a going concern.
Free Cash Flow increased to $1.8 million for the nine months ended December 31, 2025, up from $390,894 in the prior year.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this filing with cautious optimism. While significant operational improvements, revenue growth, and reduced losses are positive, the persistent 'going concern' doubt and working capital deficiency temper the overall sentiment, indicating ongoing financial fragility despite progress.

Positives

Revenue increased by 16.5% to $11.7 million for the nine months ended December 31, 2025, demonstrating strong top-line growth.
Gross profit percentage improved significantly to 81.3% from 75.2% in the comparable prior year period, driven by better margins on technology fees and device sales.
The company achieved a positive profit from operations of $996,679 for the nine months ended December 31, 2025, marking the third consecutive quarter of positive operating profit.
Net loss before dividends was substantially reduced to $2.1 million from $6.5 million year-over-year, indicating improved financial efficiency.
EBITDA and Adjusted EBITDA both turned positive for the nine months ended December 31, 2025, reaching $986,703 and $1,019,081 respectively, compared to negative figures in the prior year.
Selling, general and administrative expenses decreased by 12.7% to $6.6 million for the nine months ended December 31, 2025, reflecting effective cost control.
Technology fee revenue, which is largely recurring, increased by 11% to $10.5 million, comprising 89.5% of total revenue and indicating strong customer retention.
Free Cash Flow increased significantly to $1,795,986 for the nine months ended December 31, 2025, from $390,894 in the prior year, demonstrating improved cash generation from operations.
Ongoing product development includes advanced ECG algorithms, analysis software, and the Biocore 2.0, enhancing the technology ecosystem.
The company was awarded an NIH Grant for AI-Enabled real-time monitoring and predictive analytics for stroke due to chronic kidney failure, broadening its technology platform's demographic.

Negatives

The company incurred recurring losses from operations and reported an accumulated deficit of $142,116,468 as of December 31, 2025.
A working capital deficiency of $18,815,645 as of December 31, 2025, indicates short-term liquidity challenges.
The existence of substantial doubt about the company's ability to continue as a going concern is explicitly stated.
Cash balances decreased to $256,357 as of December 31, 2025, from $365,145 as of March 31, 2025.
Interest expense increased to $2.5 million for the nine months ended December 31, 2025, due to increased borrowings.
The company recognized a loss of $168,306 related to the change in fair value of derivative liabilities for the nine months ended December 31, 2025, compared to a gain in the prior year.

Risks

Substantial doubt exists about the company's ability to continue as a going concern for a period of one year from the issuance of these financial statements.
The company will need to seek additional debt or equity capital to fund ongoing operating expenses, protect intellectual property, develop new lines of business, and enhance operating infrastructure.
There is no assurance that additional capital can be raised on acceptable terms, or at all, which could require modification of operating plans or curtailment of development and commercialization.
Future financings may be dilutive to, or otherwise adversely affect, holders of common stock.
The development and commercialization of product offerings are subject to numerous uncertainties, and cash resources could be used sooner than expected.
The process of developing products is costly, and the timing of progress can be subject to uncertainty.
The ability to successfully transition to profitability may be dependent upon achieving further regulatory approvals and adequate product sales.
Fluctuations in sales and operating results, risks associated with international operations, and regulatory, competitive, and contractual risks could adversely affect performance.
Uncertainty exists regarding future profitability and the profitability of acquired businesses or product lines.
The company's common stock was delisted from the Nasdaq Capital Market in August 2024 due to non-compliance with the minimum $35 million market value of listed securities, and is now listed on the OTCQB.

Future Outlook

Management anticipates continued revenue growth and improved liquidity through ongoing business development and additional equity and debt capitalization. The company expects to devote significant resources to capital expenditures, research and development, operations, marketing, and sales for its Biocore and Biocare products. It believes existing cash and anticipated near-term financings will be sufficient for the next twelve months, but acknowledges the need for further capital to respond to opportunities and challenges, including protecting intellectual property and developing new lines of business. The company plans to apply for further FDA clearances for ancillary technologies, including advanced ECG algorithms and the Biocore 2.0, within the next twelve months.

Management Comments

Management anticipates the company will continue on its revenue growth trajectory and improve its liquidity through continued business development and additional equity and debt capitalization.
The company believes its existing cash, along with anticipated near-term financings, will be sufficient to continue to meet its needs for the next twelve months from the filing date of this report.
The company's mission is to innovate and create transformative healthcare products while ensuring financial discipline, to drive margin and revenue growth to deliver value creation for investors.
The company is expanding its AI technology development in remote cardiac care, leveraging proprietary AI to provide a suite of predictive monitoring tools to enhance new disease profiling, improve patient management, and revolutionize the healthcare industry for disease prevention.
The company has engineered its technology to not only improve patient care and outcomes, but to do so in a manner that supports more patients, leading to increasing sales of remote cardiac monitoring devices and ramp-up of subscription-based service.

Industry Context

StockSavvy.ai notes that Biotricity operates within the rapidly expanding remote patient monitoring and telemedicine sectors, which have seen accelerated adoption, particularly post-COVID-19. The company's focus on diagnostic and post-diagnostic solutions for lifestyle and chronic illnesses, coupled with its emphasis on AI-enabled cardiac monitoring, aligns with major industry trends towards preventative care, data-driven healthcare, and efficiency improvements. The projected growth of the healthcare AI market to $208.2 billion by 2030, as cited by Grand View Research, underscores the significant market opportunity Biotricity is targeting with its proprietary AI model and AWS/Google infrastructure. The insourcing business model, empowering physicians with technology and charging service fees, aims to reduce operational overhead and enhance market penetration, a strategy that could be effective in a competitive landscape increasingly valuing integrated solutions and cost-efficiency.

Management Changes

Role	Previous Person	New Person	Effective Date	Reason
VP of Healthcare	NA	Dr. Fareeha Siddiqui	January 2024	To spearhead the roll-out and Biocare adoption to existing and new customers.

Corporate Governance

Change Type	Description	Effective Date	Impact Assessment
Amendment to Certificate of Designations	On April 1, 2024, the company filed an Amended Series B Certificate of Designations, removing the provision that granted Series B Preferred Stock holders the right to vote on an as-converted basis with common stock. The Series B Preferred Stock is now nonvoting, except as required by law.	2024-04-01	This change centralizes voting power, potentially reducing shareholder influence for Series B Preferred Stock holders and simplifying corporate decision-making.

Legal Proceedings

The company is not currently a party to, and its property is not the subject of, any material legal proceedings.

Related Party Transactions

Trade and other payables and accrued liabilities as of December 31, 2025, included $459,397 due to a shareholder who is also a director and executive of the company.

Stakeholder Impact

Shareholders face potential dilution from future equity capital raises and the ongoing risk associated with the 'going concern' doubt, but may benefit from improved operational performance and strategic growth initiatives.
Employees are impacted by stock-based compensation plans and the company's continued investment in research and development, which could lead to new opportunities.
Customers benefit from continued product development, enhanced technologies like Bioflux Software II System, and new offerings such as Biocore Pro and the Biocare app, aiming for improved patient care and efficiency.
Creditors are exposed to the company's debt obligations and the 'going concern' risk, although forbearance agreements and warrant issuances indicate ongoing efforts to manage these relationships.
Regulatory bodies (e.g., FDA) are key as the company continues to seek clearances for new and enhanced medical technologies.

Next Steps

Continue commercialization of Bioflux, Biocore, and Biocare product development.
Devote significant resources to capital expenditures, research and development, operations, marketing, and sales.
Seek additional debt or equity capital to respond to business opportunities and challenges.
Apply for further FDA clearances for ancillary technologies, including advanced ECG algorithms and the Biocore 2.0, within the next twelve months.
Expand the sales force to address new markets and achieve sales penetration.
Continue to develop the telemedicine platform with real-time streaming capabilities.
Further develop predictive capabilities relative to atrial fibrillation and arrhythmias using the growing data set of patient heartbeats.

Key Dates

Date	Description
2012-08-29	Biotricity Inc. incorporated under the laws of the State of Nevada.
2014-07-03	iMedical Innovations Inc. incorporated under the laws of the Province of Ontario, Canada.
2016-02-02	iMedical Innovations Inc. became a wholly-owned subsidiary of Biotricity through reverse take-over; Board of Directors approved the 2016 Equity Incentive Plan.
2018-04-01	Company adopted Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (ASC 606).
2018-04-06	Bioflux COM technology made available to the market under limited release.
2019-04-01	Full market release of the Bioflux device for commercialization occurred.
2020-04-01	Company received $370,900 from the U.S. Small Business Administration (SBA) under the Economic Injury Disaster Loan (EIDL) program.
2021-01-08	Final closing date for Series A Notes, warrants exercise price was $6.36 per share.
2021-05-01	Company received an additional $499,900 from the SBA under the EIDL program.
2021-08-30	Company completed an underwritten public offering of its common stock, facilitating its listing on the Nasdaq Capital Market.
2021-12-21	Company entered into a Credit Agreement with SWK Funding LLC for $12.4 million, maturing December 21, 2026.
2022-01-01	Company received 510(k) FDA clearance of its Biocore (previously named Biotres) patch solution.
2022-09-01	Company was awarded a NIH Grant from the National Heart, Blood, and Lung Institute for AI-Enabled real-time monitoring.
2022-10-01	Company launched Biocare technology.
2022-11-01	Bioheart received recognition as one of TIMEs Best Inventions of 2022.
2022-12-01	Company entered into a short-term bridge loan agreement with a collateralized merchant finance company for $400,000; Company entered into a short-term collateralized bridge loan agreement with a finance company for $800,000; Company entered into a promissory note agreement with an individual investor for $600,000.
2022-12-15	Maturity date for the $600,000 promissory note agreement with an individual investor.
2022-12-30	Company exchanged $500,000 of Series A Notes into a new convertible note; Company extinguished 51,101 warrants and replaced them with a new promissory note for $270,000.
2023-01-23	Company issued $2,000,000 (face value) in a convertible preferred note to an accredited investor.
2023-03-29	Company entered into an additional collateralized bridge loan agreement with a finance company for $300,000.
2023-03-31	Company adopted the 2023 Equity Incentive Plan and the Employee Stock Purchase Plan; Company received $238,703 under the NIH Grant.
2023-06-01	Company entered into a secured revolving account purchase credit and inventory financing facility.
2023-07-13	Company entered into a separate short-term bridge loan agreement with a collateralized merchant finance company for $400,000.
2023-07-18	Company entered into an amendment with a finance company, increasing total proceeds to $700,000 for a collateralized bridge loan.
2023-08-11	Company issued two short term promissory notes, each for $250,000, to one investor.
2023-09-19	Company entered into a securities purchase agreement with an institutional investor for the issuance and sale of 220 shares of Series B Convertible Preferred Stock; Company filed a certificate of designations of Series B Convertible Preferred Stock.
2023-09-25	Company entered into a convertible preferred note financing and issued a convertible note in the principal amount of $1,000,000.
2023-10-01	Company launched the cellular version of the Biocore device, the Biocore Pro.
2023-10-23	Final closing date for Series C Notes, exercise price of warrants determined to be $4.18 and $2.09 for note holder and placement agent warrants, respectively.
2023-10-25	Company issued a Preferred Note in the principal amount of $250,000.
2023-12-08	Company entered into a short-term bridge loan agreement with a collateralized merchant finance company for $630,000.
2024-01-01	Company issued a further Preferred Note in the principal amount of $114,303.
2024-01-01	Dr. Fareeha Siddiqui appointed VP of Healthcare.
2024-02-01	Company entered into a promissory note agreement with an individual investor for $660,504.
2024-04-01	Company filed an Amended Series B Certificate of Designations of Series B Convertible Preferred Stock, removing voting rights.
2024-08-01	Company received notice from Nasdaq of delisting from The Nasdaq Capital Market.
2024-08-05	Delisting of company's shares of common stock from The Nasdaq Capital Market became effective.
2024-09-01	Company raised an additional $291,437 on similar terms to the February 2024 promissory note.
2024-11-01	Company completed an additional transaction with its term lender to receive $635 thousand in term loan proceeds and interest relief.
2025-07-01	Company entered into a financing arrangement with an individual investor, receiving $250,000.
2025-08-01	Company received $1,150,000 from a commercial counterparty related to financing arrangements.
2025-11-14	Notice received by the Company to convert Series B Convertible Preferred Stock with an aggregate stated value of $250,000 together with aggregate accrued dividends of $64,055.
2025-12-01	Company entered into a short-term bridge loan agreement with a collateralized merchant finance company for $250,000.
2025-12-12	Company issued 147,150 warrants to its term lender in connection with a forbearance agreement.
2025-12-31	End of the quarterly period covered by this report.
2026-02-06	Company entered into a note term extension agreement with a convertible note investor to extend the term of a $114,303 note by 24 months to February 2028.
2026-02-11	Date the condensed consolidated interim financial statements were issued.

Recommendation

hold

Biotricity's latest 10-Q shows significant operational improvements, including strong revenue growth, improved gross margins, and a shift to positive operating profit and EBITDA. These are compelling indicators of progress in its core business. However, the persistent 'going concern' warning, substantial accumulated deficit, and working capital deficiency present material risks. While the company is moving in the right direction operationally, the financial stability remains precarious, necessitating further capital raises that could dilute existing shareholders. A 'hold' recommendation is appropriate for seasoned investors who recognize the high-risk, high-reward profile, allowing them to monitor the company's ability to secure necessary financing and achieve sustained profitability without taking on new exposure at this stage.

Keywords

Remote patient monitoring, Cardiac monitoring, Medical technology, Healthcare AI, Bioflux, Biocore, Biocare, SEC filing, 10-Q, Financial results, Medical devices, Biometric data, Chronic care management

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