Biotricity reports 21% revenue growth and achieves first positive EBITDA, signaling a path to profitability and expanded market access through strategic partnerships.

UNKNOWN - (00:00:00)

And increase clinic profitability. As we pursue FDA clearance for our groundbreaking AI clinical model, we are setting new standards in cardiac care, ensuring every patient receives the highest quality of care. We believe that our strategic alliances with three of the top group purchasing organizations, otherwise known as GPOs in the U.S. will be pivotal in our future growth. These partnerships provide us access to approximately 90% of all hospitals in the United States, significantly expanding our market access. To that end, we are excited about new opportunities for strategic partnerships that we believe will allow for further US Market expansion and allow us to capitalize on market channels and secure advantageous terms for our solutions. This quarter we continue to pursue regulatory approvals internationally setting us up for future distribution. We now have regulatory approvals in Canada, Saudi Arabia, Argentina and some other smaller markets. These approvals align perfectly with our strategy to promote accessible, high quality care and improve patient outcomes. During this last quarter we have expanded sales of our Biocor Pro, our next generation cardiac monitoring solution, and continue to penetrate and expand our market footprint. This includes recent initiatives that continue to build up momentum including the launch of major cardiac monitoring pilot programs with several hospitals and large networks and clinics. These are expected to continue to result in the rapid adoption of our Biocor Pro both by existing and new customers. To allow for this, we have delivered a best in class clinical solution with award winning technology and industry leading patient compliance. Additionally, our strategic entry into the pulmonary and neurology fields through partnerships with leading home based diagnostic solutions marks a significant diversification of our market access. In summary, our strategic initiatives, technological advancements and operational efficiencies have positioned Biotricity for sustained growth and profitability. We remain focused on delivering innovative high quality cardiac care solutions and are confident in our ability to continue driving value for our shareholders and improving patient outcomes globally. With that, I will turn the call over to our CFO Jonny Anagru. to provide more detailed financial insights.

Jonny Anagru - Chief Financial Officer - (00:02:09)

Thank you Akas. Let's review the highlights for our first quarter fiscal year 2026. Our recurring revenue generated as a result of strong market adoption and of our technology as a service subscription model as well as our usage based subscriptions remains robust driven by the popularity of our FDA cleared cardiac monitoring technology, especially the next generation Biocor Pro which features cellular connectivity. Atrial fibrillation, a primary contributor to strokes, remains a significant focus for our business. Biotricity is already monitored and recorded well over 2 trillion heartbeats, providing early intervention opportunities and improving patient outcomes for patients with atrial fibrillation, providing them the opportunity for earlier medical intervention. This not only improves patient outcomes, it also has the propensity to deliver significant health care cost savings for both individuals and the broader healthcare System. For the first quarter of 2026 ended June 30, 2025, revenue increased by 21% compared to the corresponding period of the prior year to $3.9 million compared to 3.2 million in the prior year quarter. This growth is a testament to the efficacy of our strategic initiatives and our technological advancements. We anticipate further revenue growth in coming quarters as a result of the fact that our latest flagship device is a best in class device that is geared towards use in hospitals and large clinics and we are continuing to penetrate effectively in that space. Technology fees accounted for 87% of the quarter's total revenue, reflecting our strong customer retention and the quality of our support services. Gross profit for the quarter totaled $3.1 million, up 31.9% from the 2.4 million of the prior year period. Our gross Profit percentage improved 665 basis points to 80.5% from this quarter, up from 73.8% in the corresponding prior year quarter. This increase is attributable to the expansion of our recurring technology fee revenue base, efficiencies gained through our proprietary AI and improvements in our monitoring and cloud cost structure. As part of our sales initiatives, we continue to search for opportunities to expand our geographic footprint. We serve thousands of cardiologists across hundreds of centers. Our insourcing business model allows these cardiac professionals to have direct control over our services, enhancing efficiencies and enabling broader market penetration. Our business development initiatives include expansion into other verticals that are ancillary but fit naturally with our core business. Operating expenses for the first quarter were $2.8 million compared to 3.5 million in the same period last year, which is an 18.5% decrease. Our SGA expenses decreased by 27.9%, a comparable savings of over $827,000 for this quarter that we added to our R and D expenses, increasing those by 182,000. As previously discussed, we have strategically transformed our sales force to increase efficiency. Our external sales team is focused on longer sales cycles and larger accounts including independent hospitals and GPO networks. We are contracted under three of the largest GPO networks which, as we've said before, it gives us coveted access to selling to more than 90% of hospitals in the U.S. all these positive improvements in revenue growth and operating efficiencies to the use of AI and other automation as well as proactive cost management have allowed us to continue to achieve positive free cash flows defined as the cash from operations that is available to pay interest and dividends and we've done this for the last four consecutive quarters and have been selling a path towards achieving profitability in the next few quarters. In fact, we're pleased to announce that this quarter, the first quarter of fiscal year 2026, is the first quarter in the history of Biotricity in which it has achieved positive ebitda. This is an important milestone and indicator that we are nearing full profitability. The company achieved EBITDA. of $333,000 this quarter which corresponds to 1.3 cents on a per share basis. A reconciliation of our EBITDA. can be found in our 10Q which is filed on Edgar. We are pleased with the progress made in building our technology and obtaining FDA registrations, as well as developing effective sales strategies and implementing cost cutting measures. The result has been an improvement in operating results of nearly $1.4 million to achieve our first ever profit from operations which was $282,000 for this quarter. Net loss attributable to common stockholders for the first three month period ended June 30, 2025 was $754,000 compared to a net loss to common stockholders of 6.9 million during the corresponding prior year period. On a per share basis, we reported a loss per share of 2.9 cents compared to 49 cents for the corresponding prior year period. Even after removing the effects of a $3 million deemed dividend which was a one time item in the prior year period, we've made significant comparative improvement. This was an additional $3.1 million improvement year over year despite the expenses associated with growth and rising variable interest rates. Looking ahead, we remain committed to advancing our business through the commercialization of our BioCore, BioFlux and BioCare products. Our tech is truly useful Globally, cardiac is the number one chronic care condition in the entire world. The growing market interest and demand for our suite of products dedicated to chronic cardiac disease prevention and management reinforce our confidence in our market position. Importantly, our focus on innovation and development continues to yield significant advancements in remote monitoring solutions for both diagnostic and post diagnostic products, bringing us ever closer to profitability. We're excited about the future and continue to be confident about our ability to deliver sustained growth and profitability for Biotricity. And that concludes our prepared remarks. Operator Please open the line for questions.

OPERATOR - (00:08:57)

We will now begin the question and answer session. To ask a question, you may press Star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. Once again, if you have a question, please press star then one. Seeing no questions, gentlemen. we'll turn the conference back over to you for any additional or closing remarks.

UNKNOWN - (00:09:42)

Thank you everybody for joining us on our call today. We are incredibly excited about the next fiscal year. Moving into positive EBITDA is a huge milestone for the company and us. Showing that we can maintain margins, increase growth and turn to an EBITDA positive company puts us on a pathway to profitability and continued expansion. So we look forward to hearing and talking to you on our next quarterly call. Thank you.

OPERATOR - (00:10:14)

Thank you, sir. That does conclude today's conference call we thank you for your participation. You may now disconnect.