Biotricity Produces Largest Inventory in its History to Meet Accelerated Demand

Rhea-AI Summary

Biotricity (OTCQB: BTCY) has secured significant financing to strengthen its financial position and reach profitability without requiring future funding. The company completed an $811,000 capital raise through promissory notes, matched with a $635,000 term loan. The lender also provided interest relief by capitalizing $945,000 in existing debt.

This capital enabled Biotricity to place its largest manufacturing order to date, preparing for anticipated 2025 sales. The company's AI workflow engine has improved operational capacity by 50%, with an additional 15% improvement expected. Their next-generation AI cloud system is projected to reduce COGS across their SaaS business by 5% post-FDA clearance.

Positive

• Achieved positive Free Cash Flow, a key profitability metric
• Secured $1.446M in new capital ($811K notes + $635K term loan)
• Obtained $945K interest relief through debt capitalization
• AI workflow improved operational capacity by 50%, with additional 15% expected
• Next-gen AI cloud to reduce COGS by 5% post-FDA clearance
• Largest manufacturing order in company history completed

Negative

• Increased debt load through new promissory notes and term loan
• Still operating at a loss, with profitability projected for next calendar year

Company Receives Capital Needed from its Term Lender and Existing Investors to Reach Profitability without any need for future financing.

REDWOOD CITY, Calif., Dec. 27, 2024 /PRNewswire/ -- Biotricity Inc. (OTCQB: BTCY) ("Biotricity" or the "Company"), a Technology-as-a-Service (TaaS) company operating in the remote cardiac monitor sector of consumer healthcare, today announced that it has completed a series of financings that bolster the Company's financial health, reduce execution risk, and provide it with the necessary resources to achieve profitability.

Company has all the capital needed to achieve profitability with no need for any future financing.

 Dr. Waqaas Al-Siddiq, Biotricity's Founder & CEO, explains: "While continuing on our mission to produce transformative healthcare technologies, we have demonstrated a strong commitment to growth and operational efficiency through innovation, automation and financial discipline, driving revenue and margins on our path to profitability. We also recently announced the significant achievement of positive Free Cash Flow, one of the key metrics towards profitability is Free Cash Flow. In so doing, we received an added vote of confidence from our investors and our largest term lender."

As disclosed within the financial filing of our most recent quarter, the Company added $811 thousand dollars of capital in the form of promissory and convertible promissory notes, thereby more than matching $635 thousand of additional term loan proceeds from its term loan lender. The term loan lender also provided interest relief through the capitalization of $945 thousand due on the Company's pre-existing term loan.

Al-Siddiq added: "This capital support has allowed the Company to invest in its largest manufacturing order to date, which will allow it to fulfill anticipated sales orders in calendar 2025. This support and the added revenue that will flow from selling the additional inventory and the connected SaaS-based technology sales that those will generate,  provides the Company with enough capital to augment its positive Free Cash Flows and achieve its goal of full profitability within the next calendar year. Stated differently, Biotricity has all the inventory and cash resources to achieve profitability without any need for future financing.

"The most exciting part of our story is that we have achieved economies of scale and efficiencies so that as revenues grow, our expenses will grow at a much lower pace. Our proprietary AI workflow engine has already improved our operational capacity by 50% with an expected further improvement of 15%. This translates to significantly reduced operational expense increases."

We expect further operational improvements as we continue to enhance and improve our proprietary AI systems. Our next generation AI cloud will improve COGS across our entire SaaS business by 5% post FDA clearance, providing an additional boost to future profits.

About Biotricity Inc.
Biotricity is reforming the healthcare market by bridging the gap in remote monitoring and chronic care management. Doctors and patients trust Biotricity's unparalleled standard for preventive & personal care, including diagnostic and post-diagnostic solutions for chronic conditions. The Company develops comprehensive remote health monitoring solutions for the medical and consumer markets. To learn more, visit www.biotricity.com.

Non-GAAP Measures
Free Cash Flow is a non-generally accepted accounting principle ("non-GAAP") measure that represents the cash that the Company generated from its operations after deducting cash used on operating expenses and any capital asset spending. Unlike other accounting measures such as earnings or net income, this measure of profitability excludes non-cash expenses, but includes spending on any capital assets, as well as changes in working capital on the Company's Balance Sheet. Free Cash Flow therefore represents the cash that the Company has generated that is available to repay creditors and pay interest or dividends to lenders and investors.

We provide non-GAAP financial information to enhance the understanding of Biotricity's GAAP financial information; it should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. We believe that providing these non-GAAP measures in addition to the GAAP measures allows management, investors and other users of our financial information to more fully and accurately assess business performance. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be directly comparable to that of other companies.

Important Cautions Regarding Forward-Looking Statements
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements. Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words "may," "should," "would," "will," "could," "scheduled," "expect," "anticipate," "estimate," "believe," "intend," "seek," "project," or "goal" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements may include, without limitation, statements regarding (i) the plans, objectives and goals of management for future operations, including plans, objectives or goals relating to the design, development and commercialization of Bioflux or any of the Company's other proposed products or services, (ii) a projection of income (including income/loss), earnings (including earnings/loss) per share, capital expenditures, dividends, capital structure or other financial items, (iii) the Company's future financial performance, (iv) the regulatory regime in which the Company operates or intends to operate and (v) the assumptions underlying or relating to any statement described in points (i), (ii), (iii) or (iv) above. Such forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon the Company's current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which the Company has no control over. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the inaccuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation, the Company's inability to obtain additional financing, the significant length of time and resources associated with the development of its products and related insufficient cash flows and resulting illiquidity, the Company's inability to expand the Company's business, significant government regulation of medical devices and the healthcare industry, lack of product diversification, existing or increased competition, results of arbitration and litigation, stock volatility and illiquidity, and the Company's failure to implement the Company's business plans or strategies. These and other factors are identified and described in more detail in the Company's filings with the SEC. There cannot be any assurance that the Company will ever become profitable. The Company assumes no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.

 

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SOURCE Biotricity

FAQ

What financing did Biotricity (BTCY) secure in December 2024?

Biotricity secured $811,000 in promissory notes, $635,000 in term loan proceeds, and $945,000 in interest relief through debt capitalization.

How much has Biotricity's (BTCY) AI workflow engine improved operational capacity?

Biotricity's AI workflow engine has improved operational capacity by 50%, with an additional 15% improvement expected.

What cost reduction is expected from Biotricity's (BTCY) next-generation AI cloud?

Biotricity's next-generation AI cloud is expected to reduce COGS across their SaaS business by 5% after FDA clearance.

When does Biotricity (BTCY) expect to achieve full profitability?

Biotricity expects to achieve full profitability within the next calendar year (2025).

Will Biotricity (BTCY) need additional financing to reach profitability?

No, Biotricity has stated they have all the inventory and cash resources needed to achieve profitability without any need for future financing.