10-Q: Biotricity Reports Strong Revenue Growth, Operational Profit

Sentiment:

Quarterly Report 14 November 2025 3:38 PM

Biotricity Inc. announced significant revenue growth and a second consecutive quarter of positive operating profit, despite ongoing liquidity concerns and a substantial accumulated deficit.

Capital raiseManagement explicitly states the need to seek additional debt or equity capital to respond to business opportunities and challenges, including ongoing operating expenses, intellectual property protection, developing new lines of business, and enhancing operating infrastructure.The company issued $1,315,000 in unsecured convertible promissory notes to private investors during the six months ended September 30, 2025.An additional $291,437 was raised in September 2025 through a promissory note agreement with an individual investor.During the three months ended September 30, 2025, the company entered into a financing arrangement with an individual investor, receiving proceeds of $250,000.

Better than expectedRevenue increased by 20% year-over-year, indicating strong top-line growth.Gross margin improved significantly to 81.2%, reflecting enhanced profitability per unit of revenue.The company achieved positive profit from operations, a substantial turnaround from a loss in the prior year.EBITDA and Adjusted EBITDA both turned positive, signaling improved operational efficiency and cash flow generation before financing costs.Net cash generated from operating activities became positive, a key indicator of improved business sustainability.Free Cash Flow also turned positive, demonstrating the company's ability to generate cash after operating expenses.

Summary

Revenue for the six months ended September 30, 2025, increased by 20% to $7.8 million, up from $6.5 million in the prior year.
Technology fee revenue grew by 13.2% to $6.9 million, comprising 88.7% of total revenue.
Gross profit percentage improved to 81.2% for the six months ended September 30, 2025, compared to 74.6% in the prior year.
The company reported a profit from operations of $555,764 for the six months ended September 30, 2025, a significant improvement from a loss of $1,424,518 in the prior year.
Net loss before dividends decreased substantially to $1,362,890 for the six months ended September 30, 2025, from $5,256,288 in the prior year.
EBITDA turned positive at $706,473 for the six months ended September 30, 2025, compared to negative $2,247,947 in the corresponding prior year period.
Adjusted EBITDA also became positive at $570,677, up from negative $1,305,678 in the prior year.
Net cash generated from operating activities was $42,241 for the six months ended September 30, 2025, compared to $1,891,299 cash used in the prior year.
Free Cash Flow was positive at $1,752,914 for the six months ended September 30, 2025, compared to negative $370,551 in the prior year.
The company continues to operate with a significant accumulated deficit of $140,968,401 as of September 30, 2025, and a working capital deficiency of $18,077,790.
Two customers comprised 23% and 20% of total accounts receivable during the six months ended September 30, 2025.

Sentiment

Score: 6

Explanation: The company shows strong operational improvements with significant revenue growth, improved gross margins, and positive operating profit, EBITDA, and cash flow from operations. However, these positives are tempered by a persistent going concern warning, a substantial accumulated deficit, and an ongoing need for external capital, indicating underlying financial fragility despite operational progress.

Positives

Revenue increased by 20% year-over-year for the six months ended September 30, 2025, driven by growth in both technology fees and device sales.
Gross profit margin significantly improved to 81.2% from 74.6% in the comparable prior year period, reflecting better margins on technology fees and device sales.
Achieved positive profit from operations for the second consecutive quarter, indicating improved operational efficiency.
EBITDA and Adjusted EBITDA turned positive, demonstrating progress towards breakeven profitability and operating cash-flow break-even.
Generated positive net cash from operating activities ($42,241) and positive Free Cash Flow ($1,752,914) for the six months ended September 30, 2025.
Selling, general and administrative expenses decreased by 15% for the six months ended September 30, 2025, due to increased monitoring of spending efficiency.
Continued investment in Research and Development, with expenses increasing to $1.3 million, supporting existing and new product enhancements.
Successfully launched the cellular version of the Biocore Pro device in October 2023 and the patient-facing Biocare app in March 2023.
Awarded a NIH Grant for AI-Enabled real-time monitoring and predictive analytics for stroke due to chronic kidney failure, broadening technology platform's disease space.

Negatives

The company has incurred recurring losses from operations and has an accumulated deficit of $140,968,401 as of September 30, 2025.
A working capital deficiency of $18,077,790 as of September 30, 2025, indicates short-term liquidity challenges.
The company's independent registered public accounting firm included an explanatory paragraph noting substantial doubt about its ability to continue as a going concern.
Cash balance decreased to $308,460 as of September 30, 2025, from $365,145 as of March 31, 2025.
Total liabilities increased to $37,984,860 as of September 30, 2025, from $35,655,054 as of March 31, 2025.
Interest expense increased to $1.7 million for the six months ended September 30, 2025, due to increased borrowings.

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 due to recurring losses and working capital deficiency.
Inability to raise additional capital on acceptable terms or at all could compromise the ability to execute the business plan, modify operating plans, or curtail development and commercialization of product lines.
Future financings may be dilutive to, or otherwise adversely affect, holders of common stock.
Uncertainty regarding future profitability and the ability to generate positive cash flow from operating activities.
Development and commercialization of product offerings are subject to numerous uncertainties, potentially leading to faster-than-expected cash resource depletion.
Reliance on a few key customers, with two customers comprising 23% and 20% of total receivables for the six months ended September 30, 2025, poses concentration risk.
Exposure to foreign currency fluctuations as the Canadian subsidiary's functional currency is the Canadian dollar, and the company has not entered into derivative instruments to offset this impact.
Estimates and assumptions used in financial statements, such as fair value of derivatives, useful life of assets, and contingencies, could materially differ from actual results.

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 address business opportunities, operating expenses, intellectual property protection, new business lines, and infrastructure enhancement. The company is expanding its AI technology development in remote cardiac care to provide predictive monitoring tools and aims to support healthcare professionals in managing more patients and identifying critical data.

Management Comments

"This is the second consecutive quarter that Company has reported positive profit from operations, before deducting various costs of capital such as interest and dividends."
"Net loss before dividends for the six months ended September 30, 2025, demonstrate year-over-year revenue growth and improvements in key operating metrics."
"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 of the Company."
"We believe our existing cash, along with anticipated near-term financings, will be sufficient to continue to meet our needs for the next twelve months from the filing date of this report."
"Our mission is to innovate and create transformative healthcare products while ensuring financial discipline, to drive margin and revenue growth to deliver value creation for our investors."
"We are expanding our AI technology development in remote cardiac care, leveraging proprietary AI technology to provide a suite of predictive monitoring tools to enhance new disease profiling, improve patient management, and revolutionize the healthcare industry for disease prevention."
"This has led to increasing sales of our remote cardiac monitoring devices and the ramp-up of our subscription-based service, increasing our recurring revenue over the past few quarters."
"Increasing interest and demand continue to drive the adoption of our suite of products, which are focused on chronic cardiac disease prevention and management."

Industry Context

Biotricity operates in the remote monitoring segment of preventative care, focusing on diagnostic and post-diagnostic solutions for lifestyle and chronic illnesses. The company's strategy involves applying innovation within existing business models with established reimbursement, which it believes reduces risk and accelerates revenue. The COVID-19 pandemic has underscored the importance of telemedicine and remote patient monitoring, aligning with Biotricity's platform. The company is leveraging AI technology, including Google's TensorFlow and AWS infrastructure, to develop predictive monitoring tools in the healthcare AI market, which Grand View Research projects to grow to $208.2 billion by 2030. This focus aims to address the growing patient numbers and the shortage of healthcare professionals by enabling more efficient patient management and data analysis.

Comparison to Industry Standards

The filing does not provide specific comparable companies, projects, or results for a direct assessment against global benchmarks.

Corporate Governance

Change Type	Description	Effective Date	Impact Assessment
Amendment to Certificate of Designations	On April 1, 2024, the Amended Series B Certificate of Designations removed the provision granting 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	Reduces the voting power of Series B Preferred Stock holders, potentially consolidating control with common stockholders or other classes of stock.

Legal Proceedings

Not currently a party to any material legal proceedings.

Related Party Transactions

Trade and other payables and accrued liabilities included $417,085 as of September 30, 2025, and $373,744 as of March 31, 2025, due to a shareholder who is a director and executive of the Company.

Stakeholder Impact

**Shareholders:** Potential for dilution from future equity capital raises. Improved operational performance and reduced net losses could be positive, but the going concern risk remains a significant concern.
**Employees:** Continued investment in R&D and sales force expansion suggests job stability and growth opportunities, particularly in technology development and market penetration.
**Customers:** Continued development and commercialization of products like Bioflux, Biocore, and Biocare, along with improved software, aim to provide enhanced cardiac monitoring solutions and customer support.
**Creditors:** The company's substantial debt and working capital deficiency, coupled with the going concern warning, indicate elevated risk for creditors, although management is actively seeking to improve liquidity.
**Suppliers:** The company's financial health and liquidity challenges could impact its ability to meet payment obligations to suppliers, though no specific issues are mentioned.

Next Steps

Continue commercialization of Bioflux, Biocore, and Biocare products.
Devote significant resources to capital expenditures, research and development, operations, marketing, and sales.
Seek additional debt or equity capital to fund ongoing operating expenses, protect intellectual property, develop new lines of business, and enhance operating infrastructure.
Apply for further FDA clearances for advanced ECG algorithms and analysis software and the Biocore 2.0 within the next twelve months.
Continue to grow the sales force to address new markets and achieve sales penetration.
Further develop predictive capabilities relative to atrial fibrillation and arrhythmias using the growing dataset of patient heartbeats.
Continue to develop a telemedicine platform with real-time streaming capabilities.

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 term loan, with a maturity date of December 21, 2026; Company entered into a new lease agreement.
2022-01-01	Received 510(k) FDA clearance of Biocore (previously named Biotres) patch solution.
2022-10-01	Launched Biocare after successfully piloting the technology in two facilities.
2022-11-01	Bioheart received recognition as one of TIMEs Best Inventions of 2022.
2022-11-01	Unpaid interest of $364,000 was added to the outstanding principal balance of the term loan.
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 started a new lease with an additional suite in the same premise as the existing lease.
2022-12-30	Company exchanged $500,000 of Series A Notes along with outstanding interest accrual of $121,500 into a new convertible note; Company extinguished 51,101 warrants and replaced them with a new promissory note of $270,000 principal balance.
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 (ESPP).
2023-06-01	Company entered into a secured revolving account purchase credit and inventory financing facility (the Revolving Facility).
2023-07-13	Company entered into another short-term bridge loan agreement with a collateralized merchant finance company for $400,000.
2023-07-18	Company entered into an amendment with the finance company, increasing total proceeds of a collateralized bridge loan to $700,000.
2023-08-11	Company issued two short term promissory notes (August 2023 Notes), each for a principal amount of $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	Launched the cellular version of 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.
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	Appointed Dr. Fareeha Siddiqui to the position of VP of Healthcare.
2024-01-01	Company issued a further Preferred Note in January 2024 in the principal amount of $114,303.
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.
2024-06-17	Company issued a Preferred Note in the principal amount of $300,000.
2024-08-01	Company received a notice from Nasdaq stating delisting of its common stock from The Nasdaq Capital Market, effective August 5, 2024.
2024-11-01	Company completed an additional transaction with its term lender to receive an additional $635 thousand in term loan proceeds and interest relief through capitalization of $1.5 million in interest.
2025-09-05	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 $57,890.
2025-09-30	End of the quarterly reporting period.
2025-10-01	Additional 86,191 shares issued at a conversion price of $0.34 per share, pursuant to a notice received on September 5, 2025.
2025-11-04	Conversion Notice received by the Company to convert 25 Series B Preferred Shares ($250,000 stated value + $64,055 accrued dividends) into 919,912 common shares at $0.428 per share.
2025-11-14	Date the condensed consolidated interim financial statements were issued.
2026-12-21	Maturity date of the $12.4 million term loan.

Recommendation

hold

While Biotricity Inc. has demonstrated impressive operational improvements, including significant revenue growth, improved gross margins, and positive operating profit, EBITDA, and free cash flow, the underlying financial structure remains highly precarious. The explicit 'going concern' warning, substantial accumulated deficit, and persistent working capital deficiency indicate significant financial risk. The company's reliance on continuous capital raises, which may be dilutive, offsets the positive operational momentum. A seasoned investor would likely 'hold' due to the strong operational turnaround but remain cautious given the severe liquidity and solvency challenges, awaiting sustained profitability and a stronger balance sheet before considering a 'buy' recommendation. The stock is speculative at this stage.

Keywords

Remote Patient Monitoring, Cardiac Monitoring, Telemedicine, Medical Technology, AI in Healthcare, Biometric Data, FDA Clearance, Bioflux, Biocore, Biocare, SEC Filing, 10-Q, Financial Results, Revenue Growth, Gross Margin, Operating Profit, EBITDA, Liquidity, Going Concern, Convertible Notes, Debt Financing

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