In This Article:
First Time in the Company's History
REDWOOD CITY, Calif., Dec. 3, 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 achieving positive free cash flow, a measure of financial health and another major milestone towards profitability.
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. One of the key metrics management and investors use as a measure of progress to profitability is Free Cash Flow. We are pleased to see this measure become positive during the second fiscal quarter ended September 30, 2024."
Free Cash Flow is a non-generally accepted accounting principle ("non-GAAP") measure that represents the cash that the Company generates 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 capital assets and 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. New product launches anticipated in FY25 will be accelerated, bringing the Company closer to long-term profitability and sustainability.
Management intends to report this metric as it continues on its path to profitability." Positive Free Cash Flow of $355,016 for the quarter ended September 30, 2024 demonstrated consistently strong progress from the immediately preceding quarter ended June 30, 2024, when this measure was negative $725,567; and even more pronounced progress from the corresponding quarter one year ago, when the measure was negative $1.6 million. Free Cash Flow per share for the quarter ended September 30, 2024 was positive $0.016 per share compared to negative -$0.186 in the corresponding quarter of the prior fiscal year.
| Free Cash Flows | |||||
| | 3 months $ | 3 months June 30, $ | 3 months $ | 6 months $ | 6 months $ |
| Net cash used in operating activities | (397,059) | (1,494,240) | (2,390,036) | (1,891,299) | (4,222,154) |
| Add: Interest expense | 752,075 | 768,673 | 753,268 | 1,520,748 | 1,413,780 |
| Less: Investment in capital assets | - | - | - | - | - |
| Free cash flows before one-time items | 355,016 | (725,567) | (1,636,768) | (370,551) | (2,808,374) |
| Add (Less): | | | | | |
| One-time items (1) | - | - | - | - | - |
| Free Cash Flows | 355,016 | (725,567) | (1,636,768) | (370,551) | (2,808,374) |
| Weighted average number of common | 22,493,626 | 14,169,441 | 8,795,742 | 18,354,277 | 8,774,242 |
| Free Cash Flow per Share, Basic and | 0.016 | (0.051) | (0.186) | (0.020) | (0.320) |
| (1) These items relate to financing transactions and therefore do not reflect the Company's core operating activities | |||||
Non-GAAP Measures
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.