Biotricity Inc (BTCY) 2023 Q4 法說會逐字稿

Good afternoon, and welcome to Biotricity's Fiscal 2023 First (sic) [Fourth] Quarter and Full Year Financial Results and Business Update Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Debra Chen, Investor Relations. Please go ahead, ma'am.

下午好，歡迎參加 Biotricity 2023 財年第一（原文如此）[第四]季度和全年財務業績和業務更新電話會議。今天的會議正在錄製中。現在，我想將會議交給投資者關係部的 Debra Chen。請繼續，女士。

Good afternoon, everyone, and welcome to Biotricity's Fiscal 2023 Fourth Quarter and Full Year Earnings Conference Call. As a reminder, Biotricity's 2023 fiscal year ended March 31, 2023. So all figures presented for this period will reflect that end date. Earlier today, Biotricity issued its fiscal 2023 fourth quarter and full year press release, which highlighted financial and operational results. A copy of the press release is available on the Investor Relations section of Biotricity's website, and full financials have been filed with the SEC on Form 10-K and posted on EDGAR at www.sec.gov.

大家下午好，歡迎參加 Biotricity 2023 財年第四季度和全年收益電話會議。提醒一下，Biotricity 的 2023 財年於 2023 年 3 月 31 日結束。因此，該期間提供的所有數據都將反映該結束日期。今天早些時候，Biotricity 發布了 2023 財年第四季度和全年新聞稿，重點介紹了財務和運營業績。該新聞稿的副本可在 Biotricity 網站的投資者關係部分獲取，完整的財務數據已通過 10-K 表提交給 SEC，並發佈在 EDGAR 網站 www.sec.gov 上。

Before beginning the company's 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. Any 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.

在開始公司正式發言之前，我想提醒聽眾，今天的討論可能包含前瞻性陳述，反映了管理層對未來事件的當前看法。任何此類陳述都面臨風險和不確定性，可能導致實際結果與這些前瞻性陳述中預測的結果存在重大差異。除必要外，Biotricity 不承諾更新任何前瞻性陳述。

At this point, I'm pleased to turn the call over to Biotricity's Founder and CEO, Dr. Waqaas Al-Siddiq. Please go ahead.

現在，我很高興將電話轉給 Biotricity 的創始人兼首席執行官 Waqaas Al-Siddiq 博士。請繼續。

Thank you, Debra, and thank you, everybody, for joining us today for our 2023 fiscal year conference call. I will cover our fiscal year financial and operational highlights and then turn the call over to John for a discussion of our fourth quarter financials. I will then discuss our sales strategy and outlook and open the call for your questions.

謝謝黛布拉，也謝謝大家今天參加我們的 2023 財年電話會議。我將介紹我們本財年的財務和運營亮點，然後將電話轉給約翰，討論我們第四季度的財務狀況。然後我將討論我們的銷售策略和前景，並開始電話詢問您的問題。

We finished the fiscal year on a strong note, driving revenue 26% higher year-over-year to $9.63 million, while our gross profit rose 19% to $5.4 million. While these solidly rising numbers show strong progress, I'm equally as pleased to report our decreasing numbers. We produced 26% robust revenue growth while reducing, yes, actually reducing, our SG&A by 5% to $17.6 million. And that disciplined cost structure management, along with the strong growth across the board, enabled us to lower our net loss by over 1/3 or 35.4%, down by $10.7 million to $19.5 million.

我們以強勁的業績結束了本財年，收入同比增長 26% 至 963 萬美元，毛利潤增長 19% 至 540 萬美元。雖然這些穩步上升的數字顯示出巨大的進步，但我同樣高興地報告我們的數字正在下降。我們實現了 26% 的強勁收入增長，同時我們的 SG&A 減少了，是的，實際上是減少了 5%，達到 1760 萬美元。這種嚴格的成本結構管理，加上全面的強勁增長，使我們的淨虧損降低了 1/3 以上，即 35.4%，即 1,070 萬美元，降至 1,950 萬美元。

We managed to accomplish all that while sustaining a healthy gross margin of 57%, which declined just 3% from a year ago but for important strategic reasons that I will unpack in just a minute. As you can see, we are relentlessly in pursuit of positive cash flow, and our numbers demonstrate that we are making excellent progress towards that goal. It should be readily apparent that we are scaling our business as well.

我們成功實現了這一切，同時保持了 57% 的健康毛利率，比一年前僅下降了 3%，但出於重要的戰略原因，我將在一分鐘內詳細闡述。正如您所看到的，我們不懈地追求正現金流，我們的數據表明我們正在朝著這一目標取得巨大進展。顯而易見，我們也在擴大我們的業務。

Now for our revenue and margins. Our revenue sources go into 3 buckets. First and foremost, we have technology fees. This is a recurring subscription service fees generated by our diagnostics and Biosphere services. For fiscal year '23, 91% of our total revenue was comprised of technology fees, which rose a hefty 49% year-over-year at a 70% gross margin, which has been consistent at this level year-over-year for the past 2 years.

現在來說說我們的收入和利潤。我們的收入來源分為三個部分。首先，我們有技術費。這是由我們的診斷和生物圈服務產生的經常性訂閱服務費。在 23 財年，我們總收入的 91% 來自技術費用，技術費同比大幅增長 49%，毛利率為 70%，與去年同期相比一直保持在這一水平。過去2年。

In part, its strong growth reflects our extraordinary customer retention rate of 98%, which, in one simple single number, speaks volumes about our excellent customer and cardiology-friendly solutions, superior device hardware and tech services, ease of use and superior diagnostics. We are continuing to strengthen this retention rate through continuous improvement and expansion of our usage and implementation of AI to strengthen automation and enhance our cardiac disease solutions.

在某種程度上，其強勁增長反映了我們高達 98% 的非凡客戶保留率，這一簡單的數字充分說明了我們卓越的客戶和心髒病學友好型解決方案、卓越的設備硬件和技術服務、易用性和卓越的診斷。我們將通過不斷改進和擴大人工智能的使用和實施來繼續提高保留率，以加強自動化並增強我們的心髒病解決方案。

As a side note, I recently read that the more time the CEO says AI on an earnings call, the better the share price performs. I'm not so sure about that, but for our newer shareholders, I will point out that we've been actively discussing how Biotricity is deploying AI across our company from customer service to diagnostics for well over a year, and we have been actively developing AI for several years now. The most recent occasion was during our third quarter 2023 call, which was before Wall Street blew AI up to become the next big thing.

順便說一句，我最近讀到，首席執行官在財報電話會議上談論人工智能的次數越多，股價表現就越好。我對此不太確定，但對於我們的新股東，我要指出的是，一年多以來，我們一直在積極討論 Biotricity 如何在我們公司範圍內部署人工智能，從客戶服務到診斷，並且我們一直在積極討論開發人工智能已經好幾年了。最近一次是在我們的 2023 年第三季度電話會議期間，那是在華爾街吹捧人工智能成為下一個重大事件之前。

Back to revenue margins. After technology fees, our second revenue bucket is device sales. As it sounds, that is sales of our proprietary hardware, which, like our software, is all designed in-house. In fiscal 2023, device sales comprised 9% of our total revenue.

回到收入利潤率。繼技術費之後，我們的第二個收入來源是設備銷售。顧名思義，這是我們專有硬件的銷售，與我們的軟件一樣，這些硬件都是內部設計的。 2023 財年，設備銷售額占我們總收入的 9%。

We also have a third bucket called service-related and other revenue, which is entirely opportunistic. We did not book any revenue in this category in 2023 versus $750,000 a year ago, which demonstrates even further just how strong our fiscal 2023 revenue really was.

我們還有第三個桶，稱為服務相關收入和其他收入，這完全是機會主義的。我們 2023 年沒有在該類別中記入任何收入，而一年前為 75 萬美元，這進一步證明了我們 2023 財年的收入確實有多麼強勁。

As our technology fees have been so strong and our customer retention so high, we decided to lower the pricing on our devices to near and, at times, less than our cost. We do this opportunistically and to gain market share, lower the customers' net cost of entry into our Biosphere and to incrementally increase our recurring technology fees with its 70% gross margin. Like the old razor-razorblade sales strategy, it seems some principles in business are timeless.

由於我們的技術費用如此之高，而且我們的客戶保留率如此之高，我們決定將設備的定價降低到接近成本，有時甚至低於成本。我們這樣做是為了獲得市場份額，降低客戶進入我們生物圈的淨成本，並以 70% 的毛利率逐步增加我們的經常性技術費用。就像老式的剃須刀銷售策略一樣，商業中的一些原則似乎是永恆的。

Our pricing strategy, along with solid recurring revenue gross margins and high customer retention, is continuing to produce the growth we planned. From a 70% gross margin on technology fees, our pricing strategy diluted our blended gross margin down to 57%. However, our device sales are earned and recognized upfront. Further, we anticipate the technology fee component of gross margins to continue to grow, outpacing device sales and pulling the blended gross margin higher, all while our growth continues to scale and we capture increasing market share.

我們的定價策略，加上穩定的經常性收入毛利率和高客戶保留率，正在繼續實現我們計劃的增長。我們的定價策略將綜合毛利率從 70% 的技術費用稀釋至 57%。然而，我們的設備銷售是預先獲得和認可的。此外，我們預計毛利率中的技術費用部分將繼續增長，超過設備銷售並拉高綜合毛利率，同時我們的增長繼續擴大並佔據不斷增加的市場份額。

With that, I will turn the call over to our CFO, John Ayanoglou.

接下來，我會將電話轉給我們的首席財務官 John Ayanoglou。

Thank you, Waqaas. Since Waqaas just covered the fiscal year numbers in his discussion of key operational matters, I will hit the fiscal 2023 fourth quarter highlights which are unaudited.

謝謝你，瓦卡斯。由於 Waqaas 在討論關鍵運營事項時剛剛介紹了財年數據，因此我將重點介紹未經審計的 2023 財年第四季度亮點。

Our Technology-as-a-Service subscription-based recurring revenue from our cardiac devices is continuing to ramp up. Revenue for the fourth quarter ended March 31, 2023, increased 27.6% year-over-year to $2.74 million. Exceeding the typical young company growth curve, I note that the fourth quarter revenue of fiscal 2022 also grew at practically the same rate of 27.4% over the fourth quarter of 2021.

我們的心臟設備基於技術即服務訂閱的經常性收入正在持續增加。截至2023年3月31日的第四季度收入同比增長27.6%至274萬美元。我注意到，2022 財年第四季度的收入也以與 2021 年第四季度幾乎相同的 27.4% 的速度增長，超出了典型的年輕公司增長曲線。

Our blended gross margin in the quarter just ended was 57%, which is lower than the 67% in the year earlier quarter, primarily due to lower pricing on our device hardware, which Waqaas just discussed. Although I also note that even so, it is still a strong improvement from the gross margin in the fourth quarter of 2021.

剛剛結束的季度我們的綜合毛利率為 57%，低於去年同期的 67%，這主要是由於我們的設備硬件定價較低，Waqaas 剛剛討論了這一點。儘管我也注意到，即便如此，與 2021 年第四季度的毛利率相比仍然有強勁的改善。

Technology fee gross margins were steady at 71% and comprised 93% of the quarter's total revenue. As Waqaas pointed out, this bodes very well for future margins, and SaaS-based recurring technology fees will be an ever-increasing proportion of our sales mix, notwithstanding the fact that we are also engaging in efforts to contain and improve our costs in our COGS.

技術費毛利率穩定在 71%，佔本季度總收入的 93%。正如 Waqaas 指出的那樣，這對未來的利潤率來說是個好兆頭，基於 SaaS 的經常性技術費用將在我們的銷售組合中所佔的比例不斷增加，儘管我們也在努力控制和改善我們的成本銷貨成本。

Gross profit totaled $1.5 million, up 7% from $1.4 million a year ago. Net loss decreased 19% year-over-year to $4.9 million or $0.09 per share from net loss of $6 million or $0.118 per share in the fourth quarter of fiscal 2022.

毛利潤總計 150 萬美元，比一年前的 140 萬美元增長 7%。淨虧損同比下降 19%，至 490 萬美元，即每股 0.09 美元，而 2022 財年第四季度的淨虧損為 600 萬美元，即每股 0.118 美元。

We continue to pursue our path toward positive cash flow, and as we anticipated in our third quarter call, we are now seeing the corresponding inflection in our financial growth trajectory.

我們繼續追求正現金流的道路，正如我們在第三季度電話會議中所預期的那樣，我們現在看到我們的財務增長軌跡出現了相應的拐點。

I will now turn the call back over to Waqaas for his closing comments.

我現在將把電話轉回給瓦卡斯，聽取他的結束語。

Thank you, John, for that report. I'll cover a few highlights of our fiscal 2023 accomplishments and then provide some forward-looking guidance. As a convenience for our customers, we recently launched Android and iOS versions of our cardiac monitor smartphone apps in the Google and Apple App stores. Depending on the cardiac device to which they are tethered, these apps display and interpret the customers' data in an easy-to-understand graphics as well as providing a gateway into our secure cloud-based Biosphere portal.

謝謝約翰的報告。我將介紹我們 2023 財年成就的一些亮點，然後提供一些前瞻性指導。為了方便客戶，我們最近在 Google 和 Apple 應用商店推出了心臟監測智能手機應用程序的 Android 和 iOS 版本。根據所連接的心臟設備，這些應用程序以易於理解的圖形顯示和解釋客戶的數據，並提供進入我們基於雲的安全 Biosphere 門戶的網關。

Back to everyone's other favorite subject, AI. In our second fiscal quarter of last year, we announced we will be conducting an NIH-sponsored Phase I study of Bioflux AI, our innovative AI system that we will now customize for predictive detection of stroke in patients with chronic kidney disease. And in February of this year, we were one of the only 8 companies selected to present at the second Annual Innovation Showcase during the American Stroke Association 2023 International Stroke Conference in Dallas, in collaboration with the National Heart, Lung and Blood Institute and the National Institute for Neurological Disorders and Stroke. We presented our ongoing work on stroke prediction in chronic kidney disease patients, supported by our previously awarded NIH grant. Our ongoing research is on optimizing our AI for predictive stroke analytics in patients with chronic kidney disease.

回到大家最喜歡的另一個主題：人工智能。在去年第二財季，我們宣布將開展一項由 NIH 資助的 Bioflux AI 一期研究，Bioflux AI 是我們的創新人工智能係統，我們現在將定制該系統，用於預測檢測慢性腎病患者的中風。今年 2 月，我們是僅有的 8 家公司之一，被選中參加在達拉斯舉行的美國中風協會 2023 年國際中風會議期間舉辦的第二屆年度創新展示會，該活動與國家心肺血液研究所和國家癌症中心合作。神經疾病和中風研究所。我們介紹了我們在慢性腎病患者中風預測方面正在進行的工作，並得到了我們之前授予的 NIH 撥款的支持。我們正在進行的研究是優化人工智能，以對慢性腎病患者進行預測性中風分析。

In addition to the honor and high visibility gained from being selected to help lead an advanced AI-based clinical study under NIH, this greatly expands Biotricity's horizons with the added experience, expertise and contacts within NIH to develop similar future AI programs for other serious chronic diseases that impact cardiac health.

除了被選為 NIH 領導一項基於人工智能的先進臨床研究而獲得的榮譽和高知名度之外，這還極大地擴展了 Biotricity 的視野，增加了 NIH 內的經驗、專業知識和聯繫，為其他嚴重慢性病開發類似的未來人工智能項目影響心臟健康的疾病。

My third point here relates to our sales strategy. We have slowly and meticulously built our national sales and sales support team one carefully considered industry professional at a time, and that is paying off handsomely. Now we have expanded our network to over 350 centers across 31 states with over 2,500 physicians, which is rather remarkable considering that we launched our first product in a competitive industry just 4 years ago.

我的第三點與我們的銷售策略有關。我們慢慢地、精心地建立了我們的全國銷售和銷售支持團隊，一次經過仔細考慮，成為了行業專業人士，並且取得了豐厚的回報。現在，我們已將我們的網絡擴展到 31 個州的 350 多個中心，擁有超過 2,500 名醫生，考慮到我們 4 年前在競爭激烈的行業中推出了我們的第一個產品，這是相當了不起的。

A year ago, we had a plan, but couldn't really discuss upselling our customer base because we had one product commercialized. Now we have 4. When you have 98% customer retention, upselling is a natural and seamless activity as our customers' needs evolve.

一年前，我們有一個計劃，但無法真正討論向上銷售我們的客戶群，因為我們有一個產品已商業化。現在我們有 4 個。當您的客戶保留率達到 98% 時，隨著客戶需求的變化，追加銷售就會成為自然且無縫的活動。

For example, a patient may have a cardiac symptom and warn our Bioflux for diagnosis, and then been cleared with good heart health by the cardiologist. But with that now heightened awareness, those customers may want a simpler consumer device for basic preventative cardiac wellness monitoring to ensure their heart health is optimal, especially relative to whatever symptoms sent them to the cardiologist in the first place.

例如，患者可能有心臟症狀並警告我們的 Bioflux 進行診斷，然後由心髒病專家證明其心臟健康狀況良好。但隨著現在意識的提高，這些客戶可能需要一種更簡單的消費設備來進行基本的預防性心臟健康監測，以確保他們的心臟健康處於最佳狀態，特別是相對於他們首先去看心髒病專家的任何症狀。

Conversely, the physician of the patient wearing one of our monitors who is newly diagnosed with the potentially serious heart condition will order ongoing remote lifestyle monitoring for that patient, such as moving that patient from our Bioflux device to our Bioheart monitor.

相反，佩戴我們的一台監護儀的患者如果新診斷出患有潛在的嚴重心髒病，醫生會要求對該患者進行持續的遠程生活方式監測，例如將該患者從我們的 Bioflux 設備移至我們的 Bioheart 監護儀。

Upselling a second Biotricity product to our installed customer base reduces sales cycles, leading into the customer to input their preferred levels of services and reports. A repeat customer takes much less Biotricity time and resources than a first-time customer. The fact is our repeat customer upsells are far more bought than they are ever sold.

向我們的固定客戶群追加銷售第二個 Biotricity 產品可以縮短銷售週期，從而使客戶輸入他們喜歡的服務和報告級別。回頭客比初次客戶花費的 Biotricity 時間和資源要少得多。事實上，我們的回頭客追加銷售的購買量遠遠多於銷售量。

On a final note, I'll provide some color for our outlook. Last quarter, I stated that our gross margin is an important leading indicator of our future profitability. Now as our business is advancing with a longer and stronger track record, I can tell you that even better than gross margins, our technology fee revenue is our best leading indicator of future growth.

最後一點，我將為我們的前景提供一些色彩。上個季度，我說過我們的毛利率是我們未來盈利能力的重要先行指標。現在，隨著我們的業務以更長久、更強勁的業績記錄向前發展，我可以告訴您，我們的技術費收入甚至比毛利率還要好，是我們未來增長的最佳領先指標。

Separately, as recently as last month, we reported reaching certain annualized revenue run rate. In May, we announced we had reached a $13 million run rate in April. To clarify, that simply means we take a designated full calendar month's revenue and multiply it by 12. With a 98% retention rate, our forward-looking revenue is simply the latest month multiplied by 12, not including any additional sales or growth. New sales and growth are additive, making the last multiplied by 12 the base case outlook. That then produces an annualized revenue run rate that is the same as we use in our internal models as we strive to be more transparent and keep our shareholders informed.

另外，就在上個月，我們報告達到了一定的年化收入運行率。 5 月份，我們宣布 4 月份的運行費用已達到 1,300 萬美元。澄清一下，這只是意味著我們將指定的完整日曆月的收入乘以 12。由於保留率為 98%，我們的前瞻性收入只是最近一個月乘以 12，不包括任何額外的銷售額或增長。新銷量和增長是相加的，最後乘以 12 就是基本情景前景。然後產生的年化收入運行率與我們在內部模型中使用的相同，因為我們努力提高透明度並讓股東了解情況。

Looking ahead, reaching positive cash flow is a top priority which we are aiming to achieve by the end of calendar year 2024. I will qualify that by saying if we see a low-risk, high-reward opportunity for investment to produce a much greater positive impact on our value than the cost of pushing back our cash flow target, we will evaluate those competing priorities and do what's best for our shareholders in the long run. With John closing the books on our first fiscal quarter, I can report our growth steadily accelerating, if a bit unevenly, with key metrics all trending favorably.

展望未來，實現正現金流是我們的首要任務，我們的目標是在 2024 年底之前實現這一目標。我會通過說如果我們看到低風險、高回報的投資機會來產生更大的收益，我會對此進行限定。與推遲現金流目標的成本相比，對我們價值的積極影響更大，我們將評估這些相互競爭的優先事項，並從長遠來看，做對我們股東最有利的事情。隨著約翰結束我們第一個財政季度的賬目，我可以報告我們的增長穩步加速，儘管有點不均勻，但關鍵指標均呈良好趨勢。

I would now like to open up the call for questions.

我現在想開始提問。

(Operator Instructions) Our first question comes from Kevin Dede with H.C. Wainwright.

（操作員說明）我們的第一個問題來自 Kevin Dede 和 H.C.溫賴特。

I'm curious -- curious, Waqaas, if you could just peel back the onion a little bit more on the fee contribution revenue given the 4 product lines. It'd be interesting to hear how your customers transition right through that upselling process and may -- and how that reflects on your service fee income.

我很好奇——很好奇，Waqaas，如果你能在 4 條產品線的費用貢獻收入上再剝一點洋蔥。了解您的客戶如何通過追加銷售流程以及可能的過渡以及這如何影響您的服務費收入會很有趣。

Yes, for sure. So great question, Kevin. In terms of our product line, so a couple of those products are very new, right? So let's focus on the one that we launched in May of last year, right, with Biotres. So Biotres, as a product, it has grown, and we expect it to be at a $2 million run rate within 15 months of launch. We launched in May. So we're probably another 2, 3 months. So maybe I should say 15 to 16 months, it will be at a $2 million run rate.

是肯定的。這是一個很好的問題，凱文。就我們的產品線而言，其中有一些產品非常新，對嗎？因此，讓我們重點關注我們去年 5 月與 Biotres 推出的產品。因此，Biotres 作為一種產品，它已經發展壯大，我們預計它在推出後 15 個月內的運行速度將達到 200 萬美元。我們於五月推出。所以我們可能還需要 2、3 個月。所以也許我應該說 15 到 16 個月，運行費用將是 200 萬美元。

Now if you compare that to Bioflux, it took us 30 months to get to a $2 million run rate on the Bioflux. And that business is already at a $12 million run rate today. So we're -- it's certainly -- the strategy of taking a new product and adding it to our ecosystem and selling it into the ecosystem as a vertical strategy to go deeper into the accounts is certainly bearing fruit. The speed of acquisition in our statement and -- that we've been talking about and saying that it's going to be faster, that's also true. And the cost of the sales since it's already an existing customer and the onboarding process and everything related to that is pretty minimal.

現在，如果將其與 Bioflux 進行比較，我們花了 30 個月的時間才使 Bioflux 的運行費用達到 200 萬美元。如今，該業務的營業額已達到 1200 萬美元。因此，我們的戰略——當然是——將新產品添加到我們的生態系統中，並將其銷售到生態系統中，作為深入客戶的垂直戰略，這肯定會取得成果。我們聲明中的收購速度——我們一直在談論並說它會更快，這也是事實。由於它已經是現有客戶，因此銷售成本和入職流程以及與之相關的一切都非常低。

So all of those things, if you take this trend for this product and you apply that to the other 2 products that we're now -- we have launched in the early part of this year, we expect a similar thing to happen. But every product has its own uptake rate. They have their own reimbursement and business model. And generally, our business model is always the same technology.

因此，所有這些事情，如果你採用該產品的這一趨勢，並將其應用到我們現在的其他 2 個產品中——我們在今年年初推出了，我們預計會發生類似的事情。但每種產品都有自己的採用率。他們有自己的報銷和商業模式。一般來說，我們的商業模式始終是相同的技術。

What I mean is like reimbursement rates are different, right? Our Bioflux reimbursement rates are significantly different than our Biotres reimbursement rate in terms of what reimbursements are linked to that technology. So adoption rates can be different, but the strategy of selling into the account, the strategy of that generating an additional revenue line item and going deeper into the accounts and reducing that cost of onboarding the customer, that is all holding true.

我的意思是報銷率不同，對嗎？就與該技術相關的報銷內容而言，我們的 Bioflux 報銷率與 Biotres 報銷率顯著不同。因此，採用率可能會有所不同，但向賬戶銷售的策略、產生額外收入項目的策略、深入賬戶並降低客戶入職成本的策略，這一切都是正確的。

Okay. Waqaas, can we take a step back then? And aside from Bioflux and Biotres, what are the other products that encompass your full product line? And give us an update on where you're going on kidney disease detection given you've done a lot of work on the AI side in predicting stroke based on kidney function.

好的。 Waqaas，我們可以退後一步嗎？除了 Bioflux 和 Biotres 之外，您的整個產品線還有哪些其他產品？鑑於您在人工智能方面根據腎功能預測中風方面做了很多工作，請告訴我們您在腎臟疾病檢測方面的最新進展。

Yes, absolutely. So answering the first part of your question. So we have Bioflux, which is our smart cardiac monitor, right, that is analyzing ECG data while you -- [Biotres] is our passive recording product, which is more of the Holter space. And those are our 2 diagnostic solutions. And those products are used -- they're prescribed by the physician, and they're rotational. So they go on patient A, they come back, they get cleaned up, they go and they're put on patient B.

是的，一點沒錯。所以回答你問題的第一部分。所以我們有 Bioflux，這是我們的智能心臟監測儀，對吧，它可以在您分析心電圖數據時 - [Biotres] 是我們的被動記錄產品，更多的是動態心電圖領域。這些是我們的 2 個診斷解決方案。這些產品是由醫生開處方的，並且是輪換使用的。所以他們繼續治療病人A，他們回來，他們被清理乾淨，然後他們去治療病人B。

Then we shift into Biocare, which is our chronic care management and remote patient monitoring platform. So this is about, okay, you get diagnosed on the Bioflux or the Biotres. Now you have to be managed. So just as a diabetic is managed, right, for the rest of their life, cardiac disease has no cure. You have to manage that patient. So that is a cardiac disease management platform that also has additional biometrics that you can record like blood pressure cuff, weight information, other metrics related to the patient. But ultimately, it's about the doctor tracking the patient month-over-month, making sure the patient is taking their medications, collecting their data, and they're not deteriorating.

然後我們轉向 Biocare，這是我們的慢性護理管理和遠程患者監控平台。所以，好吧，您可以通過 Bioflux 或 Biotres 進行診斷。現在你必須被管理。因此，就像糖尿病患者在餘生中得到控制一樣，心髒病也無法治愈。你必須管理那個病人。這是一個心髒病管理平台，還具有額外的生物識別信息，您可以記錄這些信息，例如血壓袖帶、體重信息以及與患者相關的其他指標。但最終，醫生會逐月跟踪患者，確保患者正在服用藥物，收集數據，並且病情沒有惡化。

And that is a per-patient concept, right? So instead of rotating between patients, it's a per patient. So you diagnose the patient and then you go into a Biocare ecosystem, and now you manage that patient. That is also reimbursable, but it's a lot less from a reimbursement perspective, right? So it's reoccurring versus recurring type of -- one is rotational, one is a per month, per patient, but it's significantly less. We're talking the doctor's billing $50 to $100 per patient, per month.

這是每個患者的概念，對吧？因此，不是在患者之間輪換，而是每個患者輪換。因此，您診斷患者，然後進入 Biocare 生態系統，現在您管理該患者。這也是可以報銷的，但是從報銷的角度來看，少了很多，對吧？因此，它是重複發生的，與重複發生的類型相比——一種是輪換，一種是每個患者每月一次，但數量要少得多。我們說的是醫生每月為每位患者收取 50 至 100 美元的費用。

So whereas with Bioflux and Biotres, you can get to economies of scale and profitability from a clinic perspective very quickly. The Biocare requires investment in time from the clinic perspective to get economies of scale and they get enough patients onboarded.

因此，通過 Bioflux 和 Biotres，您可以從診所的角度非常快速地實現規模經濟和盈利能力。從診所的角度來看，Biocare 需要投入時間才能實現規模經濟，並吸引足夠的患者加入。

The last solution that we have is Bioheart, which is a lifestyle consumer product really targeted for stable cardiac patients. So again, Bioflux, Biotres, you identify the patient and you say, hey, this patient is stable or unstable. If they're unstable, you want to put them into disease management. If they're stable, you still want to see them, but you don't need to see them as regularly so the doctor can recommend the Bioheart product. And that is a lifestyle solution that the patient can use on a personal basis and use it to manage themselves efficiently and effectively in between physician visits.

我們的最後一個解決方案是 Bioheart，這是一種真正針對穩定心髒病患者的生活方式消費產品。再說一次，Bioflux、Biotres，你識別出病人後你會說，嘿，這個病人是穩定還是不穩定。如果它們不穩定，您需要將它們納入疾病管理。如果它們穩定，您仍然想去看它們，但您不需要定期去看它們，這樣醫生就可以推薦 Bioheart 產品。這是一種生活方式解決方案，患者可以在個人基礎上使用它，並使用它在醫生就診之間有效地管理自己。

So those are the 4 products, right? So we've got the Bioheart, the Biocare ecosystem for chronic disease management, the Biotres for Holter monitoring and for smart monitoring. And then the last part of your question -- sorry, go ahead, go ahead.

這就是 4 種產品，對嗎？因此，我們擁有 Bioheart、用於慢性病管理的 Biocare 生態系統、用於動態心電圖監測和智能監測的 Biotres。然後是你問題的最後一部分——抱歉，繼續，繼續。

Yes, yes, yes. So as you talk about kidney disease, maybe you can refresh my memory on where Biotricity stands on delivering products to monitor kidney disease?

對對對。因此，當您談論腎臟疾病時，也許您可以讓我想起 Biotricity 在提供監測腎臟疾病的產品方面的立場？

Yes. So what we're doing on the kidney disease side is -- so think of it from our strategic perspective, right? So we came out, you've known us for a few years, right? We said, hey, we're going into cardiac diagnostics, but we really want to build a platform company, right, and deal with the cardiac patient holistically through that entire condition, right?

是的。那麼我們在腎臟疾病方面正在做的是——所以從我們的戰略角度來考慮，對吧？所以我們就出來了，你認識我們好幾年了，對吧？我們說，嘿，我們要進入心臟診斷領域，但我們真的想建立一個平台公司，對吧，並在整個病情中全面處理心髒病患者，對吧？

So now we've completed that journey, right? And then during that process, we also said, hey, what else are we looking at? Well, we're looking at where our cardiologists are getting referrals from, right? So what does that mean? That means another patient whose primary doctor is not the cardiologist, it's some other specialist, but that patient now has -- they also have a risk for cardiac issues.

現在我們已經完成了這段旅程，對嗎？然後在這個過程中，我們還說，嘿，我們還在看什麼？好吧，我們正在研究我們的心髒病專家從哪裡獲得推薦，對嗎？那麼這意味著什麼呢？這意味著另一位患者的主治醫生不是心髒病專家，而是其他專家，但該患者現在也有患心髒病的風險。

So we get a lot of referrals from nephrologist, which are kidney dialysis patients that also have a heightened risk of cardiac issues, right? But they're not getting cardiac screenings because nephrologists don't necessarily have access to the technology, or they don't always have a referral setup for a cardiologist. They're just openly setting it up. And these patients, if you're dialyzed, you're getting -- you're in and out of the clinic 3 times a week. So the last thing you want to do is then go to another doctor's office.

因此，我們收到了很多腎病專家的轉診，這些患者是腎透析患者，心臟問題的風險也很高，對嗎？但他們沒有接受心臟篩查，因為腎病專家不一定能夠獲得該技術，或者他們並不總是有心髒病專家的轉診設置。他們只是公開地設置它。這些患者，如果您接受透析，您每週會進出診所 3 次。因此，您最不想做的就是去另一位醫生的辦公室。

So the idea was, and the idea we were focusing on is, take our existing monitoring devices, so we think Bioflux and Biotres. We improve and specialize our cardiac algorithms and apply them for a specific demographic, in this case, patients suffering from ESRD and CKD, and modify our algorithms for that. And then deliver the same monitor, right, but now tailored for their nephrology.

所以我們的想法是，我們關注的想法是，利用我們現有的監測設備，所以我們想到了 Bioflux 和 Biotres。我們改進並專門化了我們的心臟算法，並將其應用於特定人群，在本例中是患有 ESRD 和 CKD 的患者，並為此修改了我們的算法。然後提供相同的監視器，對吧，但現在是針對他們的腎髒病學量身定制的。

So the hardware and all of that is already there. So it would be the same Bioflux and Biotres, now tailored for a nephrologist. They do the cardiac screening inside of the dialysis center and then refer a diagnosed patient to the cardiologist. So we actually already have the monitor. We're not building a new monitor. We're tailoring all of the software to apply for that, and then the idea is to commercialize.

所以硬件和所有這些都已經存在了。因此，這將是相同的 Bioflux 和 Biotres，現在是為腎病專家量身定制的。他們在透析中心內進行心臟篩查，然後將確診的患者轉診給心髒病專家。所以我們實際上已經有了監視器。我們不會建造新的顯示器。我們正在定制所有的軟件來實現這一點，然後我們的想法就是將其商業化。

And so whereas we're not just selling to the cardiologist, we're grabbing the nephrologist so that when they come to our cardiologist customer, the cardiologist already knows what's going on with that patient. So -- and the same kind of perspective that we're looking at. We're always looking at comorbidities, right? So CKD patients have high risk for cardiac, that's where we get referrals from. Same thing, (inaudible) patients, they have higher risk for cardiac so we get referrals from pulmonologists. So these are all areas that, as we grow and as we look at, we look at what are complementary spaces where we can either add sensors or tailor our existing technology to capture patients a little bit earlier in the disease progression state.

因此，雖然我們不只是向心髒病專家銷售產品，但我們還是在吸引腎病專家，這樣當他們來到我們的心髒病專家客戶那裡時，心髒病專家已經知道該患者的病情。所以——我們正在尋找同樣的觀點。我們總是在關注合併症，對嗎？因此，慢性腎病患者患心髒病的風險很高，這就是我們轉診的來源。同樣的事情，（聽不清）患者，他們患心髒病的風險較高，所以我們從肺科醫生那裡得到轉診。因此，隨著我們的成長和觀察，這些領域都是互補的，我們可以在其中添加傳感器或定制我們現有的技術，以便在疾病進展狀態的早期捕獲患者。

So just to finish sort of the line of logic here for my little brain, fill in the kidney disease AI quotient that your team has been working so heavily with AI on.

因此，為了完成我的小大腦的邏輯線，請填寫您的團隊一直在大力研究人工智能的腎臟疾病人工智能商數。

So what we've been doing is we've been looking at dialysis patients and how they are -- so arrhythmia detection in cardiac patients and arrhythmia detection in patients with kidney disease is significantly different because kidney patients have like a bunch of mineral deficiencies and whatnot.

因此，我們一直在做的是，我們一直在研究透析患者以及他們的情況——心髒病患者的心律失常檢測和腎臟疾病患者的心律失常檢測有顯著不同，因為腎臟患者缺乏大量礦物質，並且諸如此類的。

So where our AI has been tailored for a general person without a bunch of other challenges and issues going on, we are basically adjusting all of our AI and algorithms to basically look at predictive ability to find out what's going on with that kidney patients.

因此，我們的人工智能是為普通人量身定制的，沒有出現許多其他挑戰和問題，我們基本上正在調整所有人工智能和算法，以基本上考察預測能力，以找出腎臟患者的情況。

Are they going to actually have a stroke or not stroke? Are they progressing? Is their heart actually deteriorating? And then we can identify that, quantify that piece, highlight that information, and then alert the nephrologist.

他們真的會中風嗎？他們有進步嗎？他們的心臟真的在惡化嗎？然後我們可以識別這一點，量化該部分，突出顯示該信息，然後提醒腎病專家。

So the same thing that we're doing in the cardiology, but just tailoring the algorithms for an individual that has very, very different biometrics and very, very different data, right? So that means that the -- our algorithms will still work in the same way, and they would work on an nephrology patient. But since they're sicker, we can actually move a little bit faster, and we can augment and improve by focusing and tailoring the algorithms to a specific patient population, right? So it's customizing our algorithms as opposed to using just general cardiology algorithms.

我們在心髒病學領域所做的事情是一樣的，只不過是為具有非常非常不同的生物特徵和非常非常不同的數據的個體定制算法，對吧？因此，這意味著我們的算法仍將以相同的方式工作，並且它們將適用於腎病患者。但由於他們病情較重，我們實際上可以更快地採取行動，並且我們可以通過針對特定患者群體關注和定制算法來增強和改進，對吧？因此，它是定制我們的算法，而不是僅使用一般的心髒病學算法。

All right. So last question on this line is how you package that AI with your Biocare platform and market it to nephrologists.

好的。因此，這方面的最後一個問題是如何將人工智能與 Biocare 平台打包並將其推銷給腎髒病專家。

Yes. So I mean, we've already commercialized the same way that we have our cardiologist, right? We have the sales force. Now we've signed up some distribution relationships, and we go and we sell to these clinics and hospitals from a direct sales perspective. So same thing we would do with the nephrology, right? So dialysis centers are out there. You have a nephrologist that either owns it or they're part of the group. They're specialty groups. It's the same concept, right, direct sales to them.

是的。所以我的意思是，我們已經像心髒病專家一樣將其商業化，對嗎？我們有銷售隊伍。現在我們已經簽訂了一些分銷關係，我們從直銷的角度向這些診所和醫院銷售。那麼我們對腎髒病學也會做同樣的事情，對嗎？所以透析中心就在那裡。您有一位腎臟科醫生擁有該設備，或者是該團隊的成員。他們是專業群體。這是同樣的概念，對吧，直接銷售給他們。

And as those algorithms get finalized and FDA cleared, et cetera, all of that just gets built into our ecosystem. So if we know that the nephrologist is the customer, and we can basically hit a tab on it, then the system will dynamically tell that [device] to go into kidney mode versus cardiac mode. So it will load up. It will, of course, have both algorithms running on the device, but it will load up the different AI interface that is focused on kidney patients because the cloud is essentially telling it, hey, this is a dialysis patient, not a general cardiac patient.

隨著這些算法的最終確定和 FDA 的批准等等，所有這些都將被內置到我們的生態系統中。因此，如果我們知道腎臟科醫生是客戶，並且我們基本上可以點擊其上的選項卡，那麼系統將動態地告訴[設備]進入腎臟模式還是心臟模式。所以它會加載。當然，它會在設備上運行兩種算法，但它會加載專注於腎臟患者的不同人工智能界面，因為雲本質上是在告訴它，嘿，這是一名透析患者，而不是一般的心髒病患者。

So you'll need FDA approval for that algorithm to run? You can't run it in the background and, I guess, use it as an indicator?

那麼你需要 FDA 批准該算法才能運行嗎？你不能在後台運行它，我想，將它用作指示器？

So we want to go a step further. So as an indicator, we are okay. But what we want to do is we want to predict, right? So we're moving -- we're moving from -- so if you look at what we're doing in kidney, it's not -- we're not using it as a leading indicator. We're building things that are now into prediction. Like you're going to have a stroke and we're telling you 5 days before it happens. For that type of sophistication, you need FDA approval.

所以我們想更進一步。所以作為一個指標，我們沒問題。但我們想做的是預測，對嗎？所以我們正在移動——我們正在移動——所以如果你看看我們在腎臟方面所做的事情，就會發現——我們沒有將其用作領先指標。我們正在構建現在可以預測的東西。就像您將要中風一樣，我們會在中風發生前 5 天通知您。對於這種複雜程度，您需要 FDA 的批准。

So on AI-related items, I mean we've been swimming in this for years now, right? So FDA has a different positioning depending on what you're trying to do, right? And predicting mode, it's looking at it more. And for us, that's a much better aspect is if we get it cleared from that perspective, that's actually a very, very valuable asset because not every nephrologist is close to a cardiology clinic or something like that, right?

所以在與人工智能相關的項目上，我的意思是我們已經在這方面游泳很多年了​​，對吧？ FDA 根據您想要做什麼而有不同的定位，對吧？而預測模式，它更多地關注它。對我們來說，這是一個更好的方面，如果我們從這個角度弄清楚這一點，這實際上是一項非常非常有價值的資產，因為並不是每個腎科醫生都靠近心髒病診所或類似的地方，對嗎？

So it provides much better access and much better support from a commercialization standpoint and it also creates another barrier to entry. So -- and in the FDA's perspective, when it comes to AI, they're saying, look, we're happy to look and approve AI. We're happy to also say in certain cases, we don't want to look at it because this is not really driving any clinical decision-making. But once you get into clinical decision making, which is what we're trying to do, then you have to have another layer of accuracy and another layer of oversight, which is where FDA steps in.

因此，從商業化的角度來看，它提供了更好的訪問和更好的支持，同時也創造了另一個進入壁壘。因此，從 FDA 的角度來看，當談到人工智能時，他們說，看，我們很高興研究並批准人工智能。我們也很高興地說，在某些情況下，我們不想考慮它，因為這並沒有真正推動任何臨床決策。但是，一旦你進入臨床決策，這就是我們正在努力做的，那麼你必須有另一層準確性和另一層監督，這就是 FDA 介入的地方。

Makes perfect sense. A quick question for John. As discussed in prepared remarks, targeting all things being equal, cash flow positive quarter? Months? That's the first question. And then what revenue level have you sort of penciled out your models on?

很有道理。問約翰一個簡單的問題。正如準備好的發言中所討論的，目標是在所有條件相同的情況下實現正季度現金流？幾個月？這是第一個問題。那麼你的模型是根據什麼收入水平來製定的呢？

We intend to have to bring in enough revenue and to -- because we're ramping our revenue month-over-month-over-month and to improve our expense and cost structure, particularly on the monitoring side and in the selling commissions to be able to get to breakeven, what we've announced by the end of calendar '24, but I actually believe it's going to happen quite a bit earlier than that. So I look forward to actually beating that estimate.

我們打算必須帶來足夠的收入，因為我們正在逐月增加我們的收入，並改善我們的費用和成本結構，特別是在監控方面和銷售佣金方面能夠實現收支平衡，這是我們在 24 日曆年底之前宣布的，但我實際上相信這會比這更早發生。所以我期待著實際超過這個估計。

I see. So -- but obviously, not cash flow positive for the entire year, but some period of 2024? And then I guess...

我懂了。那麼，但顯然不是全年現金流為正，而是 2024 年的某個時期？然後我猜...

I personally think that we're going to get there -- I personally think we're going to get there probably towards the end of the first fiscal quarter of the next year. But we haven't given that guidance. So I look forward to doing better and better on the cost structure side as well as on the revenue side. We've got quite a few things and projects that we're handling that are under our belt and new technologies that we're rolling out as well as new distribution relationships. So there's a lot to digest and work through during this period, and we don't know how everything is going to exactly perform. But even at conservative levels, I'm quite comfortable that we're going to get there.

我個人認為我們將會實現這一目標——我個人認為我們可能會在明年第一財季末實現這一目標。但我們還沒有給出這樣的指導。因此，我期待在成本結構方面以及收入方面做得越來越好。我們正在處理很多事情和項目，我們正在推出新技術以及新的分銷關係。因此，在此期間有很多事情需要消化和解決，而且我們不知道一切將如何準確執行。但即使在保守的水平上，我也對我們能夠實現這一目標感到非常滿意。

Thank you. There are no further questions at this time. Gentlemen, we'll turn the conference back over to you for any additional or closing remarks.

謝謝。目前沒有其他問題。先生們，我們將把會議轉回給你們，讓你們發表任何補充或結束語。

Thank you, and thank you, everybody, for attending our 2023 year-end conference call. Some closing things. I think it's an exciting time for us. And what we've got going forward, we've shown that the strategy of developing additional products that are complementary not only increases our TAM, but also allows us [to get] additional revenue that is complementary. And each of these business lines (inaudible) are bigger than our core and flagship product, Bioflux.

謝謝大家，謝謝大家參加我們的 2023 年年終電話會議。一些結束的事情。我認為這對我們來說是一個激動人心的時刻。我們已經證明，開發額外的互補產品的策略不僅可以增加我們的 TAM，而且還可以讓我們[獲得]額外的互補收入。這些業務線（聽不清）中的每一個都比我們的核心和旗艦產品 Bioflux 更大。

So that's an exciting place to be especially with the climate out there. We are in a market that is growing. We are in a market and have technology that is focused on health care, which is a recession-resilient market. And I think that from a business fundamental perspective, I'll leave this one closing statement for you guys, which I think is very important for investors, which is when we look at how a company is going to achieve cash flow, positive cash flow, we look at, is top line revenue growing? Top line revenue is growing. Are expenses in control? Expenses are in control. Is margin being sustained? And in our case, margin is actually direct line improving.

所以這是一個令人興奮的地方，尤其是考慮到那裡的氣候。我們正處於一個不斷增長的市場中。我們所處的市場並擁有專注於醫療保健的技術，這是一個具有抗衰退能力的市場。我認為，從商業基本面的角度來看，我將為你們留下一份結束語，我認為這對投資者來說非常重要，當我們考慮一家公司將如何實現現金流、正現金流時，我們看看，營收是否在增長？總收入正在增長。費用是否可控？費用可控。利潤率是否持續？在我們的例子中，利潤率實際上是直接提高的。

And the reason we know that is because more and more of our technology fee is becoming the larger and larger percentage of our revenues. So if you take a state 2 or 3 years from now, where 99% of our revenue up from today's 93% of our total gross revenue being technology fees, then effectively, our margin becomes what our technology fee margin is, or at least very close to it. That has been solid between 69% and 71% for 2 years now.

我們之所以知道這一點，是因為我們的技術費在我們收入中所佔的比例越來越大。因此，如果你看 2 或 3 年後的情況，我們的收入從今天佔總收入的 93% 上升到 99% 是技術費，那麼實際上，我們的利潤率就變成了我們的技術費利潤率，或者至少非常高。接近它。兩年來，這一比例一直穩定在 69% 到 71% 之間。

So I think that's an exciting place to be, and I think that's where John was talking about. We really -- from a base case perspective, we expect to reach positive cash flow by end of calendar year 2024. But there are a lot of opportunities and a lot of levers that will allow us to get there faster. And I think that's an exciting place to be, and I think that's an exciting opportunity for investors and something that we are looking forward to.

所以我認為這是一個令人興奮的地方，我認為這就是約翰所說的地方。從基本案例的角度來看，我們確實預計到 2024 年年底將實現正現金流。但是，有很多機會和槓桿可以讓我們更快地實現這一目標。我認為這是一個令人興奮的地方，我認為這對投資者來說是一個令人興奮的機會，也是我們所期待的。

And with that, thank you, everybody, and I hope you guys all enjoy your long weekend, and happy July 4th.

在此，謝謝大家，希望大家週末愉快，7 月 4 日快樂。

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

謝謝你，先生。今天的會議到此結束。我們感謝您的參與。您現在可以斷開連接。