BIOTRICITY INC.
For the period ended Jun 30, 2026. Filed Aug 19, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 19, 2026
BTCY$0.14+7.5%Stored close · as of Jul 8, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-12-31; filed 2026-02-11.
0001493152-26-006211
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-19.
0001493152-26-039209
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 112 previous paragraphs and 84 current paragraphs.
58 unchanged; 16 reworded; 10 added; 32 removed; 6 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
Revenue for the three months ended June 30, 2026 grew 10.4% year over year to $4.3 million, driven by a 23.6% increase in recurring technology fee revenue, which more than offset a decline in device sales. Gross margin improved to 82.6% from 80.5%. These gains were offset by a 26.2% increase in selling, general and administrative expenses, which drove operating income down 43.9% to $0.16 million from $0.28 million, and widened our net loss to $0.96 million from $0.67 million in the prior-year quarter. Management believes the underlying trend — recurring revenue growth and margin expansion — supports its plan to achieve sustained operating profitability and positive cash flow, even as near-term results were affected by higher non-cash compensation expense discussed below. Overall operating margin was 3.7% this quarter compared to 7.3% in the corresponding prior year period.
Current report
Selling, general and administrative expenses for the three months ended June 30, 2026 were $2.7 million, compared to $2.1 million for the three months ended June 30, 2025, representing an increase of approximately 26.2%. The increase was primarily attributable to higher share-based compensation expense, which increased to approximately $340 thousand from approximately $5 thousand in the comparable prior-year period, as well as the reclassification of certain expenses from cost of sales to selling, general and administrative expenses.
Current report
Interest expense for the three months ended June 30, 2026 was $0.85 million, unchanged from the corresponding period in 2025, demonstrating consistency in the average outstanding debt balance during both reporting periods.
Current report
For the three months ended June 30, 2026 and 2025, accretion expense was approximately $0.2 million in each period. The expense remained consistent year over year, primarily due to a comparable level of financing arrangements and related debt instruments outstanding during the respective periods.
Current report
During the three months ended June 30, 2026, the Company did not recognize any gain on the conversion of convertible notes, compared to a gain of approximately $8 thousand during the three months ended June 30, 2025. The decrease was primarily attributable to the absence of convertible note conversions during the current period, whereas certain convertible notes were converted during the comparable prior-year period.
Current report
Net other income for the three months ended June 30, 2026 was approximately $41 thousand, compared to $67 thousand for the three months ended June 30, 2025. Net other income primarily consisted of processing fees and late payment charges. The decrease was primarily attributable to lower processing fees and late payment charges recognized during the current period.
Current report
The Company continued to report positive EBITDA, with EBITDA of approximately $90 thousand for the three months ended June 30, 2026, compared to approximately $0.33 million for the corresponding period of the prior year. The decrease in EBITDA was primarily attributable to one-time share-based compensation charges, that added approximately $340 thousand to operating expenses for the three months ended June 30, 2026 (compared to approximately $5 thousand in the corresponding prior-year period).
Current report
During the three months ended June 30, 2026, the Company continued to fund its operations through a combination of debt financing arrangements and existing financing facilities.
Current report
As of June 30, 2026, the Company had cash and cash equivalents of $466,503 and continued to evaluate additional financing alternatives to support working capital requirements, product development initiatives and future growth opportunities.
Current report
For the three months ended June 30, 2025, the net cash provided by financing activities was primarily due to the proceeds from convertible promissory notes and short term loan, in the amount of $0.442 million.
Removed paragraphs (32)
Previous report
Net loss before dividends for the nine months ended December 31, 2025, demonstrate year-over-year revenue growth and improvements in key operating metrics. Specifically, our recurring technology fees, device sales, and gross margins all demonstrated positive growth while maintaining cost control through management’s efforts to ensure cost reduction and expense management in order to make progress on its plan to achieve positive cash flow and profitability.
Previous report
The Company earned combined device sales and technology fee income of $11.7 million during the nine months ended December 31, 2025 – 16.5% growth in revenue over the $10.1 million earned in the prior year comparable quarter.
Previous report
Total operating expenses for the nine months ended December 31, 2025, were $8.5 million as compared to $9.2 million for the nine months ended December 31, 2024. See further explanations below.
Previous report
Our selling, general and administrative expenses for the nine months ended December 31, 2025 was $6.6 million, compared to approximately $7.6 million during the nine months ended December 31, 2024 – a 12.7% reduction. The reduction was a result of increased monitoring of spending efficiency over our fixed general and administrative expenses in the current period.
Previous report
For the nine months ended December 31, 2025 and 2024, we incurred interest expenses of $2.5 million and $2.4 million, respectively. The increase in interest expense during the current period was the result of an increase in borrowings when compared to the prior year period.
Previous report
For the nine months ended December 31, 2025 and 2024, we incurred accretion expenses of $0.5 million and $1.8 million, respectively. The expense for the period decreased due to full amortization of Convertible Notes Series C.
Previous report
During the nine months ended December 31, 2025 and 2024, we recorded a gain of $20 thousand versus a loss of $150 thousand, respectively, related to the redemption and conversion of our convertible promissory notes. The change of gain or loss upon conversion upon convertible notes conversion was largely the result of increased volumes of conversions in the current period as compared to comparable period in the prior year.
Previous report
During the nine months ended December 31, 2025, we recognized $134 thousand in net other income, which consisted of processing fees and late payment charges. During the nine months ended December 31, 2024, we recognized $128 thousand in other expense, which consisted of loss on debt extinguishment, income from late payment charges, as well as the financing component contained in our revenue contracts.
Previous report
Net loss before dividends for the three months ended December 31, 2025, demonstrate year-over-year revenue growth and improvements in key operating metrics. Specifically, our recurring technology fees, device sales, and gross margins all demonstrated positive growth while maintaining cost control through management’s efforts to ensure cost reduction and expense management in order to make progress on its plan to achieve positive cash flow and profitability.
Previous report
Revenue and cost of revenue
Previous report
The Company earned combined device sales and technology fee income of $4 million during the three months ended December 31, 2025 – 10.2% growth in revenue over the $3.6 million earned in the prior year comparable quarter.
Previous report
Operating Expenses
Previous report
Selling, General and administrative expenses
Previous report
Our selling, general and administrative expenses for the three months ended December 31, 2025, was $2.2 million, compared to approximately $2.4 million during the three months ended December 31, 2024 – a 8.2% reduction. The reduction was a result of increased monitoring of spending efficiency over our fixed general and administrative expenses in the current period.
Previous report
Research and development expenses
Previous report
Interest Expense
Previous report
For the three months ended December 31, 2025, and 2024, we incurred interest expenses of $0.8 million and $0.85 million, respectively. The decrease in interest expense during the current period was the result of the decrease in borrowings compared to the prior year period.
Previous report
Accretion and amortization expenses
Previous report
For the three months ended December 31, 2025, and 2024, we incurred accretion expenses of $0.2 million and $0.3 million, respectively. The decrease in the current quarter is due to a comparatively lower number of convertible notes outstanding.
Previous report
During the three months ended December 31, 2025, and 2024, we recorded a gain of $11 thousand versus a loss of $17 thousand, respectively, related to the redemption and conversion of our convertible promissory notes.
Previous report
Other income (expense)
Previous report
During the three months ended December 31, 2025, we recognized $39 thousand in net other expense, which consisted of loss on debt extinguishment, income from late payment charges, as well as income attributed to the financing component provisions contained in our revenue contracts. During the three months ended December 31, 2024, we recognized $65 thousand in net other expense attributed to non-operating costs from note modifications, transaction expense on the Series B preferred share issuance, and the financing component provisions contained in our revenue contracts.
Previous report
The Company has reported positive EBITDA for the third consecutive quarter. The Company reported EBITDA of approximately $1 million for the nine months ended December 31, 2025, compared to negative $2.3 million in the corresponding period of the prior year.
Previous report
Management considers the EBITDA and adjusted EBITDA measures for the three and nine month period ended December 31, 2025, which improved by 491% and 144%, respectively, when compared to the corresponding prior year period, to be indicators of the Company’s progress towards breakeven profitability as well as improvement towards operating cash-flow break-even.
Previous report
During the fiscal year ended March 31, 2023, the Company raised short-term loans and promissory notes, net of repayments of $1,476,121 from various lenders, and also raised convertible notes, net of redemptions of $2,355,318 from various lenders. During the fiscal year ended March 31, 2024, the Company raised short-term loans and promissory notes, net of repayments of $853,030 and convertible notes, net of redemptions of $2,962,386 from various lenders. The Company sold 36,897 common shares through use of its registration statement, for gross proceeds of $123,347, raising a net amount of $119,285 after paying a 3% placement fee and other issuance expenses. Additionally, on September 19, 2023, the Company entered into a securities purchase agreement with an institutional investor for the issuance and sale of 220 shares of the Company’s newly designated Series B Convertible Preferred Stock, at a purchase price of $9,091 per share (Note 9), or gross proceeds of $2,000,000. Net proceeds after issuance costs were $1,900,000. During the three months ending March 31, 2024, 110 Series B preferred shares were issued for net proceeds of $925,000.
Previous report
During the three months and year ended March 31, 2025, convertible notes with a face value of $nil and $1,487,700 and accrued interest of $nil and $237,230, were converted into nil and 2,173,089 common shares, respectively. As of March 31, 2025, 581,599 shares are recognized as an obligation for shares to be issued relating to the conversions. The fair value of common shares issued during the three months and year ended March 31, 2025 is $nil and $2,431,178, respectively, and is determined based on market price upon conversion. Total value of debt settled is $nil and $ 2,234,232, respectively, which consisted of the face value of notes converted, accrued interest of $nil and $237,230, respectively, and relevant derivative liability of $nil and $509,303, respectively. The Company recognized a loss upon conversion of $nil and $196,945, respectively, representing the difference between the value of debt settled and fair value of shares issued and to be issued.
Previous report
During the three months and the year ended March 31, 2025, convertible notes with a face value of $25,000 and $150,000 and accrued interest of $5,021 and $34,864, were redeemed for a cash payment of $30,021 and $184,864. The Company recorded a gain on redemption of $8,391 and $50,692 related to the conversion, representing the difference between the value of the debt settled and the cash payment value.
Previous report
During the year ended March 31, 2025, the Company issued $1,985,000 in unsecured convertible promissory notes to private investors; $100,000 of the notes mature on their six-month anniversary of issuance and bear interest of 20%; $710,000 of the notes mature on their twenty four-month anniversary of issuance and bear interest of 10%; and $1,175,000 of the notes mature on their eighteen-month anniversary of issuance and bear no interest; all of the notes have conversion features that require the mutual consent of the investor and the Company. Since the conversion is not in control of the holder of the note, the Company did not recognize a derivative liability in connection with the conversion option of the notes.
Previous report
In November 2024, the Company completed an additional transaction with its term lender to receive an additional $635 thousand in term loan proceeds, and interest relief through the capitalization of approximately $1.5 million in interest amounts due on its existing term loan. As part of this arrangement, the Company issued 600,000, 7-year share warrants to the term lender with an exercise price of $0.50 per share and agreed to increase the term loan exit fee to $1.425 million at the end of its 5-year term. Concurrently, the Company received waiver and forbearance relief on certain term loan covenants and their respective defaults.
Previous report
During period three months ended March 31, 2025, the Company also raised additional funding from private investors of $337 thousand in the form of promissory notes and convertible promissory notes.
Previous report
On December 31, 2025, we had cash deposits in the aggregate of approximately $256 thousand.
Previous report
For the nine months ended December 31, 2025, the net cash provided by financing activities was primarily due to a short term loan of $1.54 million, the proceeds of which were used to make a principal payment of $600 thousand towards the Term Loan; the Company used cash to redeem $200 thousand of Series B preferred stock.
Reworded paragraphs (16)
Previous wording
We are expanding our AI technology development in remote cardiac care, leveraging proprietary AI technology to provide a suite of predictive monitoring tools to enhance new disease profiling, improve patient management, and revolutionize the healthcare industry for disease prevention.
Current wording
We are expanding our AI technology development in remote cardiac care, leveraging proprietary AI technology to provide a suite of predictive monitoring tools to enhance new disease profiling, improve patient management, and transform the healthcare industry for disease prevention.
Previous wording
Increasing interest and demand continue to drive the adoption of our suite of products, which are focused on chronic cardiac disease prevention and management. Our efforts in commercialization and development have yielded tremendous progress in remote monitoring solutions for diagnostic and post-diagnostic products.
Current wording
Increasing interest and demand continue to drive the adoption of our suite of products, which are focused on chronic cardiac disease prevention and management. Our efforts in commercialization and development have yielded significant progress in remote monitoring solutions for diagnostic and post-diagnostic products.
Previous wording
Technology fee revenue increased to $3.63 million during the three months ended December 31, 2025, which is a 7.4% increase over the corresponding three-month period of the prior year. The majority of this revenue is recurring, and its growth can be attributed to strong customer retention that is supported by the quality of customer and cardiologist-friendly support services that emphasize accuracy of diagnostics and ease-of-use. Device sales comprised 8.8% of our total revenue, or $351 thousand for the three-month period ended December 31, 2025. Gross profit percentage was 81.5% for the three months ended December 31, 2025, compared to 76.4 % in the corresponding prior year quarter. This increase in gross margin is a result of improved margins on technology fee revenue as well as significantly improved margin on device sales. Given strong gross margin on technology fees of approximately 82.8%, and efficiencies gained in using AI in data processing as well as an evolving revenue mix where we expect technology fees to comprise an increasing proportion of revenue, we anticipate continued improvement in overall blended gross margin over time. Technology fees comprised 91.2% of total revenue for the three-month period ended December 31, 2025.
Current wording
Technology fee revenue increased to $4.2 million during the three months ended June 30, 2026, which is a 23.6% increase over the corresponding three-month period of the prior year. The majority of this revenue is recurring, and its growth can be attributed to strong customer retention that is supported by the quality of customer and cardiologist-friendly support services that emphasize accuracy of diagnostics and ease-of-use. Device sales, which were lower this quarter due to channel timing, comprised 2.6% of our total revenue, or $0.11 million for the three-month period ended June 30, 2026. Gross profit percentage was 82.6% for the three months ended June 30, 2026, compared to 80.5% in the corresponding prior year quarter. This increase in gross margin is a result of improved margins on technology fee revenue as well as significantly improved margin on device sales. Given consistent gross margin on technology fees of approximately 86.9%, and efficiencies gained in using AI in data processing as well as an evolving revenue mix where we expect technology fees to comprise an increasing proportion of revenue, we anticipate continued improvement in overall blended gross margin over time. Technology fees comprised 97.4% of total revenue for the three-month period ended June 30, 2026.
Previous wording
Total operating expenses for the three months ended December 31, 2025, were $2.8 million compared to $2.93 million for the three months ended December 31, 2024. See further explanations below.
Current wording
Total operating expenses for the three months ended June 30, 2026, were $3.4 million compared to $2.8 million for the three months ended June 30, 2025, driven primarily by selling, general and administrative expenses, partially offset by lower research and development spending.
Previous wording
For the three months ended December 31, 2025, we recorded research and development expenses of $0.62 million, compared to $0.6 million for the three months ended December 31, 2024. The research and development activity related to both existing and new products. The increase in research and development activity was a result of the timing of activities associated with the development of new technologies for our ecosystem and product enhancements.
Current wording
For the three months ended June 30, 2026 we recorded research and development expenses of $0.67 million, compared to $0.7 million for the three months ended June 30, 2025. The research and development activity related to both existing and new products. The decrease in research and development activity was a result of the timing of activities associated with the development of new technologies for our ecosystem and product enhancements, rather than a reduction in overall planned development spending.
Previous wording
For the three months ended December 31, 2025, and 2024, we recognized a loss of $134 thousand versus a gain of $32 thousand, respectively, related to the change in fair value of derivative liabilities. The fair value changes were largely attributed to the underlying change in our mezzanine equity, convertible notes and equity fair value.
Current wording
For the three months ended June 30, 2026 and 2025, we recognized a loss of $110 thousand versus a loss of $25 thousand, respectively, related to the change in fair value of derivative liabilities. The fair value changes were largely attributed to the underlying change in our mezzanine equity, convertible notes and equity fair value.
Previous wording
Translation adjustment was a loss of 15 thousand versus a loss of $77 thousand for the three months ended December 31, 2025 and 2024, respectively. This translation adjustment represents gains and losses that result from the translation of currency in the financial statements from our functional currency of Canadian dollars to the reporting currency in U.S. dollars over the course of the reporting period.
Current wording
Translation adjustment was a gain of $422 versus a loss of $36 thousand for the three months ended June 30, 2026 and 2025, respectively. This translation adjustment represents gains and losses that result from the translation of currency in the financial statements from our functional currency of Canadian dollars to the reporting currency in U.S. dollars over the course of the reporting period.
Previous wording
The Company is in the early stages of commercializing its products. It is concurrently in development mode, operating a research and development program in order to develop an ecosystem of medical technologies, and, where required or deemed advisable, obtain regulatory approvals for, and commercialize other proposed products. The Company launched its first commercial sales program as part of a limited market release, during the year ended March 31, 2019, using an experienced professional in-house sales team. A full market release ensued during the year ended March 31, 2020. Management anticipates the Company will continue on its revenue growth trajectory and improve its liquidity through continued business development and additional equity and debt capitalization of the Company. The Company has incurred recurring losses from operations, and as at March 31, 2025, has an accumulated deficit of $139 million (2024: $128 million), the Company has a working capital deficit of $16 million (2024: $18 million).
Current wording
The Company is in the early stages of commercializing its products. It is concurrently in development mode, operating a research and development program in order to develop an ecosystem of medical technologies, and, where required or deemed advisable, obtain regulatory approvals for, and commercialize other proposed products. The Company launched its first commercial sales program as part of a limited market release, during the year ended March 31, 2019, using an experienced professional in-house sales team. A full market release ensued during the year ended March 31, 2020. Management anticipates the Company will continue on its revenue growth trajectory and improve its liquidity through continued business development and additional equity and debt capitalization of the Company. The Company has incurred recurring losses from operations, and as at June 30, 2026, has an accumulated deficit of $143 million (March 30, 2026: $143 million), the Company has a working capital deficit of $32 million (March 30, 2026: $31 million).
Previous wording
On August 30, 2021 the Company completed an underwritten public offering of its common stock that concurrently facilitated its listing on the Nasdaq Capital Market. On August 1, 2024, the Company received a notice from Nasdaq stating that Nasdaq has determined to delist the Company’s shares of common stock on The Nasdaq Capital Market, effective at the open of business on August 5, 2024. Nasdaq reached its decision pursuant to Nasdaq Listing Rule 5550(b)(2) because the Company no longer complied with the minimum $35 million market value of listed securities. Following the suspension of trading on The Nasdaq Capital Market, the Company’s shares of common stock were again listed on the OTCQB under the symbol “BTCY.”
Current wording
On August 30, 2021 the Company completed an underwritten public offering of its common stock that concurrently facilitated its listing on the Nasdaq Capital Market. On August 1, 2024, the Company received a notice from Nasdaq stating that Nasdaq has determined to delist the Company’s shares of common stock on The Nasdaq Capital Market, effective at the open of business on August 5, 2024. Nasdaq reached its decision pursuant to Nasdaq Listing Rule 5550(b)(2) because the Company no longer complied with the minimum $35 million market value of listed securities. Following the suspension of trading on The Nasdaq Capital Market, the Company’s shares of common stock were again quoted on the OTCQB under the symbol “BTCY.”
Previous wording
The Company has consistently reported positive Free Cash Flows for last six quarters, which is defined as the operating cash flow generated by the Company that is available to pay for dividend and interest obligations. 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. This is a key measure that management and investors use to evaluate progress towards Company profitability.
Current wording
The Company has consistently reported positive Free Cash Flows for last year, which is defined as the operating cash flow generated by the Company that is available to pay for dividend and interest obligations. 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. This is a key measure that management and investors use to evaluate progress towards Company profitability.
Previous wording
During the nine months ended December 31, 2025, we used cash in operating activities of $698 thousand. compared to $1.98 million cash used for the corresponding prior year period. The cash in operating activities was primarily due to selling expenses as well as research, product development, business development, marketing and general operations. The decrease in cash used reflects management’s concerted effort to contain costs while increasing revenues.
Current wording
During the three months ended June 30, 2026, we generated cash in operating activities of $507 thousand compared to $373 thousand cash used for the corresponding prior year period. The cash in operating activities was primarily due to selling expenses as well as research, product development, business development, marketing and general operations. The increase in cash generation reflects management’s concerted effort to contain costs while increasing revenues.
Previous wording
Net cash used in investing activities was Nil and Nil during the nine months ended December 31, 2025 and 2024.
Current wording
Net cash used in investing activities was Nil and Nil during the three months ended June 30, 2026 and 2025.
Previous wording
Net cash provided in financing activities was $649 thousand compared to net cash provided of $1.76 million during the nine months ended December 31, 2025 and 2024, respectively.
Current wording
Net cash used in financing activities was $191 thousand compared to net cash provided of $436 thousand during the three months ended June 30, 2026 and 2025, respectively.
Previous wording
For the nine months ended December 31, 2024, the net cash provided by financing activities was primarily due to the issuance of Series B preferred stock of $1.7 million.
Current wording
For the three months ended June 30, 2026, the net cash used by financing activities was primarily due to repayment of short term loan of $185 thousand.
Previous wording
Our consolidated interim financial statements are prepared in accordance with GAAP. These accounting principles require us to make estimates and judgments that can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenue and expense during the periods presented. We believe that the estimates and judgments upon which we rely are reasonably based upon information available to us at the time that we make these estimates and judgments. To the extent that there are material differences between these estimates and actual results, our financial results will be affected. The accounting policies that reflect our more significant estimates and judgments and which we believe are the most critical to aid in fully understanding and evaluating our reported financial results are described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, included in our 2025 Form 10-K/A filed on July 18, 2025.
Current wording
Our consolidated interim financial statements are prepared in accordance with GAAP. These accounting principles require us to make estimates and judgments that can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenue and expense during the periods presented. We believe that the estimates and judgments upon which we rely are reasonably based upon information available to us at the time that we make these estimates and judgments. To the extent that there are material differences between these estimates and actual results, our financial results will be affected. The accounting policies that reflect our more significant estimates and judgments and which we believe are the most critical to aid in fully understanding and evaluating our reported financial results are described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, included in our 2026 Form 10-K filed on July 14, 2026.
Previous wording
During the nine months ended December 31, 2025, there were no material changes to our critical accounting estimates disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our 2025 Form 10-K/A filed on July 18, 2025.
Current wording
During the three months ended June 30, 2026, there were no material changes to our critical accounting estimates disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our 2026 Form 10-K filed on July 14, 2026.
Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
The following table sets forth our results of operations for the nine months ended December 31, 2025, and 2024.
Previous report — wording carried elsewhere
Technology fee revenue increased to $10.5 million during the nine months ended December 31, 2025, which is an 11% increase over the corresponding nine-month period of the prior year. The majority of this revenue is recurring, and its growth can be attributed to strong customer retention that is supported by the quality of customer and cardiologist-friendly support services that emphasize accuracy of diagnostics and ease-of-use. Device sales comprised 10.5% of our total revenue, or $1.2 million for the nine-month period ended December 31, 2025. Gross profit percentage was 81.3% for the nine months ended December 31, 2025, compared to 75.2% in the corresponding prior year quarter. This increase in gross margin is a result of improved margins on technology fee revenue as well as significantly improved margin on device sales. Given consistent gross margin on technology fees of approximately 82.1%, and efficiencies gained in using AI in data processing as well as an evolving revenue mix where we expect technology fees to comprise an increasing proportion of revenue, we anticipate continued improvement in overall blended gross margin over time. Technology fees comprised 89.5% of total revenue for the nine-month period ended December 31, 2025.
Previous report — wording carried elsewhere
For the nine months ended December 31, 2025 we recorded research and development expenses of $1.9 million, compared to $1.6 million for the nine months ended December 31, 2024. The research and development activity related to both existing and new products. The increase in research and development activity was a result of the timing of activities associated with the development of new technologies for our ecosystem and product enhancements.
Previous report — wording carried elsewhere
For the nine months ended December 31, 2025 and 2024, we recognized a loss of $168 thousand versus a gain of $468 thousand, respectively, related to the change in fair value of derivative liabilities. The fair value changes were largely attributed to the underlying change in our mezzanine equity, convertible notes and equity fair value.
Previous report — wording carried elsewhere
Change in fair value of derivative liabilities
Previous report — wording carried elsewhere
Gain (loss) upon convertible promissory notes conversion