Biotricity Inc

and welcome to the Biotricity Fiscal First Quarter 2023 Financial Results Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Walter Pinto, Managing Director, KCSA Strategic Communications. Please go ahead.

Good afternoon, everyone. Welcome to Biotricity's Fiscal 2023 First Quarter Financial Results Conference Call. As a reminder, Biotricity's Fiscal First Quarter ended on June 30, 2022. Therefore, all figures presented for this period will reflect that end date. Today, we issued our fiscal 2023 first quarter financial results press release. A copy of this press release is available in the investor relations section of our website. Additionally, our financials will be filed with the SEC on Form 10Q and posted on EDGAR. Before beginning our 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. As 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. I'd now like to turn the call over to Biotricity's founder and CEO, Dr. Waqas Al-Sadiq. Please go ahead.

Thank you, Walter, and thank you, everyone, for joining today. Welcome to our first quarter 2023 earnings conference call. During the first quarter, we continue to advance our product development and commercialization strategy in order to position our company as the all-in-one go-to solution for cardiac diagnostics and disease management. The majority of our revenue for fiscal Q1 2023 continue to come from BioFlux, our high-precision, single-unit mobile cardiac telemetry device, real-time monitoring, and transmission of the patient's ambulatory ECG diagnostics. Revenues earned with respect to this device are sales and technology fee revenues, or technology as a service revenue. During the fiscal first quarter, our revenue increased to $2.1 million. I'm pleased that our technology as a service revenue increased to $1.9 million for the quarter year over year, which is a testament to our business model. This recurring revenue model provides the technology to the doctor who can prescribe and hook with our device within the clinic. This creates a more streamlined process for the patient and doctor, while also creating an additional revenue stream for the doctor as our product is fully reimbursable. Today, we have hundreds of centers across 29 states with over 2,000 physicians using our BioFlux product. I was also pleased in our ability to maintain gross margin 60% during the fiscal first quarter. Gross profit margins can be improved over time as we reduce discounts provided to customers. We expect that the cost of devices sold, as well as cellular and other costs associated with technology fees, will become lower as a percentage of revenues as our business expands. For moderate to severe cases, remote real-time life-saving tool. However, it is critical we capture the life cycle of the patient and follow them through their cardiac care journey. Through our internal innovation capabilities, we set out to build a complete ecosystem that fills in the current gaps in cardiac care. We commercially launched BioTray, our FDA-approved wireless wearable cardiac monitoring device. BioTray is a technology that represents the future of remote patient monitoring and the delivery of real-time diagnostic data. It serves as a three-lead device designed to continuously record ECG data. This provides a significant advantage over a conventional one-lead patch Holter monitor, which requires a longer analysis and diagnosis time. BioTray is a complementary product to BioFlux. The key differentiator between these two products is the patient profile that each is designed to serve. BioFlux is for high-risk patients, which naturally and thankfully results in lower volume of patients. BioTray, on the other hand, is designed for low-risk patients, of which there is significantly higher volume. Because BioTray is a high-volume product, we will also be able to go deeper within our distribution network and also focus on hospital integrated delivery networks. These integrated delivery networks, or hospital networks, centralize purchasing for the largest hospital systems in the country and therefore represent a central target market. where BioFlex is meant for clinics and specialty groups with an estimated TAM of $1 billion through the hospital integrated network and other large distribution outlets has a much larger TAM of approximately $5 billion. Since the introduction, reception has been overwhelmingly positive. We are currently collecting data from our early adopters and are strategically launching the product in limited release while establishing our expansion plans. We also launched BioHeart, a cardiac monitor now directly available to consumers. This device offers the same continuous heart monitoring technology used by physicians, allowing patients to manage heart conditions with retrospective snapshots and long-term data collection in a true state-of-the-art manner. BioHeart is currently available for purchase by consumers at www.bioheart.com for $199. We are excited to roll out our ecosystem. For the first time, cardiologists will have a suite of products available for their patients. all within one portal. We have purposefully designed our ecosystem in a way that when we bring on new customers, they have full access to the portal, allowing seamless data collection as they adopt new devices for the entire cardiac care journey. With BioFlux and BioTrain in the market today, we have successfully increased our total addressable market from $1 billion to approximately $6 billion. More importantly, we have designed scalability with minimal marginal cost into our business model as we can now offer additional products and services to current clients for little to no increased marketing spend. During the remainder of 2022, we look forward to introducing BioCare, our virtual clinic and disease management platform with secure HIPAA compliant technology, enabling clinicians to provide outstanding patient care remotely, ensuring at-risk patients and those needing remote cardiac monitoring do not have to leave the safety of their home. This user-friendly platform ensures seamless integration to the clinic's current workflow, saving time and reducing costs. Monthly care is a large market opportunity roughly about $35 billion. We have seen other industries such as diabetes be very successful with this model, but no one has attempted to execute this model in the cardiac space. We are the first. We are, of course, at the beginning of this journey. Our newly expanded product portfolio combined with the upcoming BioCare Clinic platform will enable us to enter this market in the near future. Cardiac disease often afflicts patients for the rest of their lives and is the leading across the globe. The current approach to care is often disjointed and unintegrated. BiOctrusy's technology assists the patient throughout their cardiac care journey, beginning with diagnostics, monitoring, and lifestyle management. This comprehensive integrated approach could help solve some of the major issues in cardiac care today in an efficient and cost-effective manner.