Biotricity (BTCY) - 2025 Q3 - Quarterly Report

Financial Performance - Total revenue for the three months ended December 31, 2024, was $3,619,108, representing a 21.7$2,972,972 in the same period of 2023[11] - Gross profit for the nine months ended December 31, 2024, reached $7,586,310, up 24.7$6,083,968 in the prior year[11] - The company reported a comprehensive loss of $1,241,866 for the three months ended December 31, 2024, compared to a loss of$3,250,496 in the same period of 2023[11] - For the nine months ended December 31, 2024, Biotricity reported a net loss of $6,485,442, an improvement from a net loss of$9,911,813 for the same period in 2023, representing a 34.5% reduction in losses[16] - Total revenue for the nine months ended December 31, 2024, was $10,087,697, a 13.5$8,885,034 for the same period in 2023[38] Expenses and Liabilities - Operating expenses decreased to $2,932,950 for the three months ended December 31, 2024, down 15$3,449,760 in the same quarter of 2023[11] - Research and development expenses for the nine months ended December 31, 2024, totaled $1,583,093, a decrease from$1,863,551 in the previous year[11] - Total liabilities decreased slightly to $35,783,372 as of December 31, 2024, from$35,919,442 as of March 31, 2024[10] - The company had an accumulated deficit of $137,419,652 and a working capital deficiency of$16,280,084 as of December 31, 2024, raising concerns about its ability to continue as a going concern[26] Equity and Shares - The weighted average number of common shares outstanding increased to 24,232,369 for the three months ended December 31, 2024, compared to 8,979,430 in the same period of 2023[11] - The total shares to be issued increased to 24,555,114, indicating potential future equity dilution[12] - The company issued 70,000 common shares, resulting in an increase of $42,850 in additional paid-in capital[12] - A total of 30,000 shares were issued for services, which added$30,000 to the company's equity[12] - The company issued 1,524,719 warrants for private placement holders, contributing to additional paid-in capital[14] Cash and Assets - Cash reserves decreased to $509,601 as of December 31, 2024, down from$786,060 as of March 31, 2024[10] - Total current assets increased to $4,861,343 as of December 31, 2024, compared to$4,470,573 as of March 31, 2024[10] - Biotricity's inventory as of December 31, 2024, was valued at $1,570,085, down from$1,879,402 as of March 31, 2024[40] Debt and Financing - The Company issued $11,275,500 in Series A Convertible Promissory Notes, which accrue interest at 12$15,465 and $65,184 for the three and nine months ended December 31, 2024, respectively[132] - The Company entered into a short-term promissory note agreement resulting in gross proceeds of$600,000, with a fixed interest rate of 25% per annum[148] Stockholder's Deficit - As of December 31, 2023, the total stockholders' deficit was $27,756,354, reflecting a net loss before dividends of$2,808,091 for the period[14] - The balance of accumulated deficit as of December 31, 2024, is $137,419,652, which highlights ongoing financial difficulties[12] - Preferred stock dividends for the period amount to$89,392, contributing to the overall financial strain[12] Accounting and Valuation - The Company uses the Black-Scholes option pricing model to estimate the fair value of stock options and warrants, considering inputs like volatility and risk-free rate[44][46] - The fair value of derivative liabilities is classified as Level 3 financial instruments, indicating reliance on unobservable inputs[63] - The calculation of current and deferred income taxes involves significant estimates and assumptions regarding future operating results and tax legislation[52] Management Outlook - Management anticipates continued revenue growth and loss reduction through business development and additional equity and debt capitalization[27] - The company plans to continue investing in capital expenditures and research and development for its product lines, including Bioflux, Biocore, and Biocare[32]