Biotricity Inc (BTCY) 2024 Q3 法說會逐字稿

Good afternoon, and welcome to Biotricity Third Quarter Fiscal 2024 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.

下午好，歡迎參加 Biotricity 2024 財年第三季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。

Good afternoon, everyone, and welcome to Biotricity Third Quarter Fiscal 2024 earnings conference call. As a reminder, Biotricity Third Quarter 2020 for fiscal year ended December 31st, 2023. So all figures presented for this period will reflect that.

大家下午好，歡迎參加 Biotricity 2024 財年第三季財報電話會議。請注意，Biotricity 的 2020 年第三季財年截至 2023 年 12 月 31 日。因此，這段時期的所有數據都將反映這一點。

Andy earlier Biotricity issued its fiscal 2024 third quarter press release, which highlighted financial and operational results. A copy of the press release is available on the Investor Relations section of Biotricity website and the full financials have been filed with the SEC on Form 10 Q and posted on EDGAR at www.SEC.gov.

安迪早些時候發布了 2024 財年第三季新聞稿，重點介紹了財務和營運業績。新聞稿的副本可在 Biotricity 網站的投資者關係部分獲取，完整的財務數據已透過 10 Q 表提交給 SEC，並發佈在 EDGAR 網站 www.SEC.gov 上。

Before beginning the company's formal 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 the forward-looking statements.

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前瞻性陳述中預測的結果有重大差異。

Biotricity does not undertake to update any forward-looking statements except as required.

除必要外，Biotricity 不承諾更新任何前瞻性聲明。

At this point, I'm pleased to turn the call over to Biotricity Founder and CEO, Dr. Wilcox Ltd., please go ahead.

現在，我很高興將電話轉給 Biotricity 創辦人兼執行長 Wilcox Ltd. 博士，請繼續。

Thank you, Deborah and everybody for joining us today. This quarter proved to be quite successful for us. Despite limited news announcements, our diligence and focus efforts can be seen across various operational and financial metrics. We not only improved our margins once again, but also achieved record margins, increase our revenue and reduced losses. This brings us closer towards our path to profitability, and I believe that time has never been here. We continue to leverage our data intelligently, pushing the boundaries of operational automation and efficiency. And in late January, we announced the development of our cardiac AI cloud platform. The platform is being designed for predictive monitoring, helping physicians and users in detecting potential issues before they arise. This supports our objective for early interventions, which decreases the likelihood of readmissions and contributes to lowering health care costs. Biotricity product portfolio is already recognized as one of the most extensive remote cardiac monitoring collections worldwide and this further reinforces our commitment to advance healthcare solutions.

謝謝黛博拉和大家今天加入我們。事實證明，這個季度我們非常成功。儘管新聞公告有限，但我們的勤奮和專注努力可以在各種營運和財務指標中看到。我們不僅再次提高了利潤率，而且還實現了創紀錄的利潤率，增加了收入並減少了損失。這讓我們離獲利之路又更近了一步，我相信這個時刻還沒到來。我們繼續聰明地利用我們的數據，突破營運自動化和效率的界限。一月下旬，我們宣布開發心臟人工智慧雲平台。該平台旨在進行預測性監測，幫助醫生和使用者在潛在問題出現之前發現它們。這支持了我們早期介入的目標，從而降低了再入院的可能性，並有助於降低醫療費用。Biotricity 產品組合已被公認為全球最廣泛的遠距心臟監測系列之一，這進一步強化了我們對先進醫療保健解決方案的承諾。

To date, we have successfully recorded over 500 billion heartbeats, a dataset that is supporting our R&D efforts to continuously improve analytics to help drive better patient outcomes.

迄今為止，我們已成功記錄了超過 5000 億次心跳，該數據集支持我們的研發工作，不斷改進分析，幫助改善患者治療結果。

Additionally, we were proud to announce that to date we have monitored recorded and help diagnose over 250,000 patients. Some additional features that further enhance our existing products include faster analytical results, improved scalability, improved operational efficiency and support for other commercial models. Our efforts to build a comprehensive cardiac AI cloud are the first step in making cardiac care not only accessible but also affordable and scalable. Today, cardiologists are overwhelmed with too many patients and too much data making it difficult for them to service, more patients and accurate cardiac cloud will provide the necessary support and assistance to cardiologists so that they can service more patients and focus on the most relevant piece of the data, I believe that we have the ability to transform cardiac care into a more streamlined and effective health care solution. Results for our third quarter demonstrate year-over-year revenue growth and improvements in all key operating metrics, specifically in recurring technologies, device sales and gross margins. Throughout this, we've maintained a strong focus on cost control, managing expenses and making consistent progress towards our goal of achieving positive cash flow and profitability. We've upheld our track record of strong customer retention, supported by the quality of our customers and the cardiologist friendly support services that emphasize the accuracy of our Diagnostics and ease-of-use are recurring technology fees and gross margins continue to trend upward, and we have successfully managed expenses all while penetrating the market and securing market leadership in cardiac remote patient monitoring devices and solutions. And looking forward, we plan to leverage our sales force to expand and penetrate new markets.

此外，我們很自豪地宣布，迄今為止，我們已經監測記錄並幫助診斷了超過 250,000 名患者。進一步增強我們現有產品的一些附加功能包括更快的分析結果、改進的可擴展性、提高的營運效率以及對其他商業模式的支援。我們建立全面的心臟人工智慧雲的努力是使心臟護理不僅可及、而且可負擔且可擴展的第一步。如今，心臟病專家面對太多的患者和太多的數據，導致他們難以提供服務，更多的患者和準確的心臟雲將為心臟病專家提供必要的支持和幫助，使他們能夠服務更多的患者並專注於最相關的部分根據這些數據，我相信我們有能力將心臟護理轉變為更精簡、更有效的醫療保健解決方案。我們第三季的業績顯示了年比收入成長和所有關鍵營運指標的改善，特別是在經常性技術、設備銷售和毛利率方面。在這個過程中，我們一直高度重視成本控制、費用管理，並在實現正現金流和獲利能力的目標上不斷取得進展。我們維持了強大的客戶保留記錄，這得益於我們的客戶品質和心臟病專家友好的支援服務，強調我們診斷的準確性和易用性，經常性技術費用和毛利率繼續呈上升趨勢，我們成功地管理了費用，同時滲透市場並確保了心臟遠端患者監護設備和解決方案的市場領先地位。展望未來，我們計劃利用我們的銷售團隊來擴展和滲透新市場。

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

接下來，我會將電話轉給我們的財務長 John Ayanoglou。

Thanks Waqaas. Let's review the unaudited highlights of our third quarter fiscal 2024 period. Recurring revenue generated from our technology as a service subscription model as well as our usage-based subscriptions is driven by popularity of our FDA-cleared cardiac devices. Bio tray and bio flex both remain strong. In fact, we're seeing growth in demand and market adoption for the bio trait and the next-generation biotech products. Atrial fibrillation or AF is a primary contributor to stroke. So we are very proud to be able to report, but Biotricity has protected patient lives using the metrics that will cost mentioned earlier that we have monitored and recorded over 500 billion heartbeats. And that over the last two years, we estimate that we have facilitated the diagnosis of over 250,000 patients, providing them the opportunity for earlier medical intervention not only improves patient outcomes, but also underscores significant health care cost savings for both individuals and the broader health care system.

謝謝瓦卡斯。讓我們回顧一下 2024 財年第三季未經審計的亮點。我們的技術即服務訂閱模式以及基於使用的訂閱產生的經常性收入是由 FDA 批准的心臟設備的受歡迎程度所推動的。生物托盤和生物柔性都保持強勁。事實上，我們看到生物特性和下一代生物技術產品的需求和市場採用不斷增長。心房顫動或 AF 是中風的主要原因。因此，我們非常自豪能夠進行報告，但 Biotricity 使用前面提到的指標保護了患者的生命，我們已經監測和記錄了超過 5000 億次心跳。在過去的兩年裡，我們估計我們已經促進了超過250,000 名患者的診斷，為他們提供了早期醫療幹預的機會，不僅改善了患者的治療結果，而且還強調為個人和更廣泛的健康領域節省大量醫療保健成本照護系統。

Revenue for the third quarter ended December 31, 2023 increased 21% year over year to $2.97 million. We continue to persistently advance our focus on our flat fee subscription based services by transitioning most of our customers away from a usage-based subscription. This is strategic for us as it establishes the foundation for a higher quality of revenue that is more predictable and more consistent recurring revenue stream in the long term.

截至2023年12月31日的第三季營收年增21%至297萬美元。透過讓大多數客戶擺脫基於使用情況的訂閱，我們將繼續堅持不懈地推進對基於固定費用訂閱的服務的關注。這對我們來說具有戰略意義，因為它為更高品質的收入奠定了基礎，從長遠來看，這種收入流更可預測、更一致的經常性收入流。

Our gross profit percentage was 73% for the quarter ended December 31, 2023, as compared to 57% in the corresponding prior year quarter. This increase in gross margin was a result of expansion in our recurring technology fee revenue base and efficiencies gained in using proprietary AI and operational automation and improved efficiency and infrastructure. This is in line with our performance expectations on improving margins as our recurring business grows.

截至 2023 年 12 月 31 日的季度，我們的毛利潤率為 73%，而去年同期為 57%。毛利率的成長是由於我們經常性技術費用收入基礎的擴大以及使用專有人工智慧和營運自動化以及改進的效率和基礎設施所提高的效率的結果。這符合我們隨著經常性業務成長而提高利潤率的業績預期。

Looking ahead, we anticipate continued improvement in overall blended gross margin over time. Technology fees comprised 93% of this quarter's total revenue for the three month period ended December 31st, 2023, gross profit totaled $2.2 million, up 55% from $1.4 million compared to the same period in the prior year. Through the continued success of our sales team, we have reported a geographic expansion into 35 states that include thousands of cardiologists and over one hundreds of centers. Our expansion is intended to allow us to compete in the broader US market using an in-sourcing business model. This approach allows our cardiac medical professionals to have direct control and management over our solution, potentially enhancing efficiencies, but it also establishes It enables us to tap into a broader market. Our technology has large potential total addressable market, which can include hospitals, clinics and physicians, offices as well as other independent diagnostic testing facilities for IDTS., but discuss the business dynamics will support the level of revenue we reported by comparing this quarter to the corresponding quarter one year ago, our SG&A expenses improved by 31% and we reduced our R&D by 48% this was a quarter in which we continue to focus on long term building. We continued to transform our sales force and focus them on longer sales cycle, larger accounts, some of which are also independent hospitals or belong to group purchasing organizations or GPOs networks. In this and the last few quarters, we have purposefully changed our variable sales compensation for our sales team to reward the hunting for new device sales. Since that is the precursor for recurring technology subscriptions. We then use trained account professionals to do the account management work that we previously used salespeople to do this has required that we form a stronger partnership between our outside sales force and our inside sales force.

展望未來，我們預計隨著時間的推移，整體綜合毛利率將持續改善。截至 2023 年 12 月 31 日止的三個月，技術費用佔本季總營收的 93%，毛利總計 220 萬美元，比上年同期的 140 萬美元成長 55%。透過我們銷售團隊的持續成功，我們的業務已擴展到 35 個州，其中包括數千名心臟病專家和一百多個中心。我們的擴張旨在使我們能夠利用內包業務模式在更廣泛的美國市場上競爭。這種方法使我們的心臟醫療專業人員能夠直接控制和管理我們的解決方案，從而有可能提高效率，同時也使我們能夠進入更廣泛的市場。我們的技術具有巨大的潛在整體潛在市場，其中可能包括醫院、診所和醫生、辦公室以及IDTS 的其他獨立診斷測試設施。但討論業務動態將支持我們透過將本季與上一季進行比較來報​​告的收入水準。一年前的相應季度，我們的 SG&A 費用改善了 31%，我們的研發費用減少了 48%，這是我們繼續專注於長期建設的季度。我們持續對銷售團隊進行轉型，將其重點放在更長的銷售週期、更大的客戶上，其中一些也是獨立醫院或屬於集團採購組織或GPO網路。在本季度和過去幾個季度中，我們有目的地改變了銷售團隊的可變銷售薪酬，以獎勵對新設備銷售的追求。因為這是定期技術訂閱的前身。然後，我們使用經過培訓的客戶專業人員來完成我們先前使用銷售人員完成的客戶管理工作，這要求我們在外部銷售人員和內部銷售人員之間建立更牢固的合作夥伴關係。

The results the third fiscal quarter of 2024 on which we're now reporting was a successful device sales quarter to date, the highest sell-in device sales quarter ever. These device sales will mostly impact technology subscription revenues in the next quarter and beyond device sales achieved. And indeed, the revenue reported should also be seen in the context of the fact that they occurred in a traditionally low selling quarter that included Thanksgiving and Christmas or Konica vacation periods, what we what we would have expected lower usage-based revenues.

我們現在報告的 2024 年第三財季的業績是迄今為止成功的設備銷售季度，是有史以來銷量最高的設備銷售季度。這些設備銷售將主要影響下一季的技術訂閱收入以及所實現的設備銷售收入。事實上，報告的收入也應該在以下事實的背景下看待：它們發生在傳統的低銷售季度，包括感恩節和聖誕節或柯尼卡假期期間，我們預計基於使用的收入會較低。

Speaking of GPOs, we now have relationships with the strongest GPOs in the country, which we anticipate will translate into an ability to sell to over [88%] of U.S. hospitals, something we expect to start giving us traction in coming quarters through this focus we've been able to manage our resources more effectively while controlling expenses in the areas that allowed us to retool and effectively impact our future sales growth. We've been able to be nimble and flexible by being proactive and pivot in the areas of better manage our cash flows and push forward the other areas that enhance our financials. We've continued our path towards EBITDA breakeven later this year. To do this, we significantly retooled our cost of goods sold expenses, including our infrastructure, in addition to reorganizing our sales expenses to ensure that our sales force is focused on direct revenue growth. We curbed our spending on other expenses and reduced our pace of some of these, including some of our R&D initiatives in favor of rescheduling some of these initiatives later into 2025.

說到GPO，我們現在與國內最強大的GPO 建立了關係，我們預計這將轉化為向超過[88%] 的美國醫院銷售產品的能力，我們預計這將在未來幾個季度開始通過這一重點為我們帶來動力我們能夠更有效地管理我們的資源，同時控制各個領域的費用，從而使我們能夠重組並有效影響我們未來的銷售成長。透過積極主動地在更好地管理我們的現金流領域和推動其他領域改善我們的財務狀況，我們能夠保持敏捷和靈活。今年晚些時候，我們將繼續實現 EBITDA 盈虧平衡。為此，我們大幅重組了銷售成本，包括基礎設施，此外還重新組織了銷售費用，以確保我們的銷售人員專注於直接收入成長。我們限制了其他開支的支出，並放慢了其中一些開支的步伐，包括我們的一些研發計劃，以支持將其中一些計劃重新安排到 2025 年晚些時候。

We are pleased with our focus on building our technology, our insistence on registering our devices with the FDA. Our focus on building a more effective sales force and on mindful spending, the results show this progress. On a year-to-date basis, our total operating expenses were reduced by $4 million, which resulted in a loss from operations that improved to just under $6.2 million. Net loss attributable to common shareholders for the three months ended December 31st, 2023 was $3 million compared to a net loss of $4.7 million during the comparable quarter in the prior year. This improved result was reported despite some mitigating factors that includes the expenses associated with necessary infrastructure growth and rising variable interest rates, which impact short term notes and our term debt, resulting in a year-over-year increase of $377,000 and interest that impacted this quarter.

我們對我們專注於技術開發、堅持向 FDA 註冊我們的設備感到高興。我們專注於建立更有效的銷售團隊和謹慎的支出，結果顯示了這一進步。年初至今，我們的總營運支出減少了 400 萬美元，營運虧損改善至略低於 620 萬美元。截至 2023 年 12 月 31 日的三個月，普通股股東應佔淨虧損為 300 萬美元，而去年同期淨虧損為 470 萬美元。This improved result was reported despite some mitigating factors that includes the expenses associated with necessary infrastructure growth and rising variable interest rates, which impact short term notes and our term debt, resulting in a year-over-year increase of $377,000 and interest that impacted this四分之一.

Earnings per share for the quarter improved to negative $0.339 per share versus negative $0.411 per share compared to the preceding quarter quarter over the immediately preceding quarter, adjusted EBITDA improved by about $720,000. Such that adjusted EPS improved and negative $0.12 per share each quarter, I'd like to provide a big high-level explanation of how we drive our revenues versus our technology fees, which are recurring subscription service fees generated by our software platform, diagnostics and bio secure data platform for the third quarter, fiscal 2020 for our technology fees rose 23% year over year to $2.78 million. This growth reflects our strong customer retention that is supported by the quality of customer and cardiologist funding support services that emphasize accuracy of diagnostics and ease of use.

與上一季相比，本季每股收益增至負 0.339 美元，而上一季每股收益為負 0.411 美元，調整後 EBITDA 提高約 72 萬美元。這樣調整後的每股盈餘有所改善，並且每季負0.12 美元，我想提供一個關於我們如何推動收入與技術費用的高級解釋，這些費用是由我們的軟體平台、診斷和技術產生的經常性訂閱服務費。2020 財年第三季 生物安全資料平台的技術費用年增 23% 至 278 萬美元。這種成長反映了我們強大的客戶保留率，這是由強調診斷準確性和易用性的客戶和心臟病專家資助支援服務的品質所支持的。

Our second revenue segment as device sales which are the sales of our proprietary hardware, which like our software, is all designed in-house. In Q3 fiscal 2024 device sales comprised 6.5% of our total revenue or $193,000 for the three month period ended December 31st, 2023. In January 2024, we hired Dr. free acid, Vicki as our VP of healthcare to spearhead Community Health and remote patient diagnostics for chronic care. This has the potential for being a significant business for us in 2026 and beyond. More on that in future quarters. Our technology is truly globally useful. Cardiac is the number one chronic care condition in the entire world. We've recently made inroads or received approvals from regulatory bodies of other countries that will allow us to sell in other jurisdictions. This sets us up for new initiatives. We intend to move on in 2026 and beyond as we advance the commercialization of BioD, create iO-Flex and Biocare products. We anticipate continuing this growth trajectory. The market's growing interest and demand for our suite of products dedicated to chronic cardiac disease prevention and management reinforces our confidence in our market position. And our focus on commercialization and development has resulted in significant advancements in remote monitoring solutions for both diagnostic and post diagnostic products, bringing us closer to achieving positive cash flow.

我們的第二個收入部分是設備銷售，即我們專有硬體的銷售，與我們的軟體一樣，都是內部設計的。在 2024 財年第三季度，截至 2023 年 12 月 31 日的三個月期間，設備銷售額占我們總收入的 6.5%，即 193,000 美元。2024 年 1 月，我們聘請了遊離酸 Vicki 博士擔任我們的醫療保健副總裁，負責領導社區健康和慢性病護理的遠距患者診斷。這有可能在 2026 年及以後成為我們的重要業務。未來幾季會有更多相關內容。我們的技術確實在全球範圍內有用。心臟病是全世界排名第一的慢性病。我們最近取得了進展或獲得了其他國家監管機構的批准，這將使我們能夠在其他司法管轄區進行銷售。這為我們採取新措施奠定了基礎。我們計劃在 2026 年及以後繼續推進 BioD 的商業化，創建 iO-Flex 和 Biocare 產品。我們預計將繼續保持這種成長軌跡。市場對我們致力於慢性心臟病預防和管理的產品套件日益增長的興趣和需求增強了我們對市場地位的信心。我們對商業化和開發的關注導致診斷和診斷後產品的遠端監控解決方案取得了重大進步，使我們更接近實現正現金流。

With that, I hand it back to you Waqaas.

說完，我把它還給你 Waqaas。

That concludes our opening remarks. I will now turn the call over to the operator for questions. Thank you.

我們的開場白就到此結束。我現在將把電話轉給接線員詢問問題。謝謝。

Thank you. Ladies and gentlemen, if you'd like to ask a question, please press star one on your telephone keypad and A confirmation tone will indicate your line is in the question queue, you may press star two. If you would like to remove your question from the queue For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please while we poll for questions.

謝謝。女士們先生們，如果您想提問，請按電話鍵盤上的星號一，確認音將表明您的線路已在問題隊列中，您可以按星號二。如果您想從佇列中刪除您的問題 對於使用揚聲器裝置的參與者，可能需要在按星號鍵之前拿起聽筒。請稍等一下，我們進行投票提問。

And our first question comes from the line of Ben Haynor with Alliance Global Partners. Please proceed.

我們的第一個問題來自 Ben Haynor 與 Alliance Global Partners 的對話。請繼續。

Good afternoon, gentlemen. Thanks for taking my questions. I'll first off for me just on the sales force changes, the hunters and the farmers, the changes that you've made there, how much more efficiency is available to you there? And have you the trends that you've seen, obviously they look positive, but any more color you can provide to us there?

下午好，先生們。感謝您回答我的問題。我首先要談談銷售隊伍的變化，獵人和農民，你們在那裡所做的改變，你們在那裡可以提高多少效率？您是否看到了您所看到的趨勢，顯然它們看起來很積極，但是您可以向我們提供更多的顏色嗎？

Yes. I mean, it's early days. It's hard to kind of like quantify what the what the efficiency gain is. But I can certainly say that with 100 pharma methodology. You have people that are focusing on purely account management, individuals that are focused purely on sales versus before the sales rep was spending part of their time on selling and part of their time on account management. So certainly that has made and the sales force more efficient and each individual more focused on new business.

是的。我的意思是，現在還為時過早。很難量化效率增益是什麼。但我可以肯定地說，透過 100 Pharma 方法論。有些人純粹專注於客戶管理，有些人純粹專注於銷售，而以前銷售代表則將部分時間用於銷售，部分時間用於客戶管理。因此，這無疑使銷售團隊變得更加高效，並且每個人都更加專注於新業務。

Okay. I mean that certainly makes sense. And then on the larger account opportunities, the GPOs and such that what do you see out there?

好的。我的意思是這當然有道理。然後是更大的客戶機會、GPO 等，您對此有何看法？

I mean, in terms of, of course, the dynamics to these sorts of larger groups and such, is there other near term opportunities that you expect will hit the P&L sooner rather than later? Or is it kind of later in or in calendar 24 that we should start to see a bigger impact.

我的意思是，當然，就這類大型集團的動態而言，您預計是否還有其他近期機會會盡快影響損益？或者是在 24 日曆年晚些時候或在日曆 24 中我們應該開始看到更大的影響。

Yeah, in the GPOs are really allowing us to focus on larger the larger deals and the larger customers and the the IDNs, those deals typically take longer. And I think that based on our internal projections and the conversation that we're having, we're expecting to see that towards the end of 2024. Typically, sales cycles on those deals are well above a year, but you're having GPO relationships shortcut that. But there's still there's still a pretty long sales cycles. The key for us is building a base of our business, which is, you know, got us back to breakeven. And so that allows us to have the extra time and the ability to go after these bigger accounts and with the GPO relationships, it helps us shorten that process.

是的，GPO 確實讓我們專注於更大的交易、更大的客戶和 IDN，這些交易通常需要更長的時間。我認為，根據我們的內部預測和我們正在進行的對話，我們預計在 2024 年底看到這一點。通常，這些交易的銷售週期遠高於一年，但 GPO 關係可以縮短這個週期。但銷售週期仍然相當長。對我們來說，關鍵是建立我們的業務基礎，這讓我們恢復了損益平衡。這樣我們就有了額外的時間和能力來處理這些更大的客戶，並且透過 GPO 關係，它可以幫助我們縮短這個過程。

Okay. That makes sense. And then how does the hunters going to spend their time in between, you know, going after the larger accounts and then some smaller accounts or one-offs, who how does that typically gets spent and anything you can share on that.

好的。這就說得通了。然後獵人將如何度過他們的時間，你知道，追捕較大的帳戶，然後是一些較小的帳戶或一次性的，這些時間通常如何花費以及你可以分享的任何內容。

And the way we think about it is like pillars and pillars, if you will. So the larger accounts are our pillar accounts that are going to be leveraged with the GPO relationships and the longer sales cycles, but reps have quotas and they have to sell a certain amount on a quarterly basis. So they are building that base pipeline to meet their quota requirements on a quarterly basis, and then they're augmenting that with the with the larger deals.

如果你願意的話，我們思考它的方式就像柱子和柱子。因此，較大的客戶是我們的支柱客戶，將利用 GPO 關係和較長的銷售週期，但銷售代表有配額，他們必須每季銷售一定數量的客戶。因此，他們正在建立基礎管道以滿足每季的配額要求，然後透過更大的交易來擴大這項基礎管道。

And our next question comes from the line of Michael Donovan with H.C. Wainwright. Please proceed.

我們的下一個問題來自邁克爾·多諾萬 (Michael Donovan) 和 H.C.溫賴特。請繼續。

Thank you. Operator And congrats on the quarter. Costs are key at a bit more color on your cardiac AI cloud platform, what sort of milestones and time line can we expect as you work towards commercializing the new predictive features?

謝謝。營運商 祝賀本季。成本是心臟人工智慧雲端平台上更多色彩的關鍵，當您致力於將新的預測功能商業化時，我們可以期待什麼樣的里程碑和時間表？

Yes, for sure. So our CardiAQ cloud, that is we'll be focused on getting and taking our traditional algorithms and really improving those and improving the sensitivity and specificity on that so that we can actually scale faster and it service more patients with essentially less resources and you know, up and scale the operations of the organization a little bit better in terms of time line, we've tracked about 500 billion heartbeats that grows every month. It is a big initiative for us and the FDA clearance process and stuff like that is typically, you know, a year, sometimes a little bit longer. Right now. We are in the stage of analyzing and establishing a foundation which we will then follow following FDA for. So I expect that we'll file something by the end of this year, maybe a bit earlier and expect the FDA response to come in, you know, nine months after we file. So I would say probably you're looking at mid to late next year in terms of commercial availability. But that is something that is going to be a game changer for us.

是肯定的。因此，我們的CardiAQ 雲，我們將專注於獲取和採用我們的傳統演算法，並真正改進這些演算法並提高其靈敏度和特異性，以便我們實際上可以更快地擴展，並以更少的資源為更多患者提供服務，你知道，在時間線方面更好地擴大和擴展組織的運營，我們追蹤了每月增長的約 5000 億次心跳。這對我們來說是一項重大舉措，FDA 的審批流程和類似的事情通常需要一年，有時甚至更長一點。現在。我們正處於分析和建立基礎的階段，然後我們將遵循 FDA 的要求。因此，我預計我們將在今年年底前提交一些文件，也許早一點，並預計 FDA 會在我們提交文件後九個月做出回應。所以我想說，您可能會在明年中後期考慮商業可用性。但這對我們來說將改變遊戲規則。

Great, great. Thank you. And now will this platform be prioritized in terms of R & D expenses? I mentioned happening was the reduced R&D initiatives and then pushing a little bit more of these initiatives later out in the calendar year 2024. So if you could kind of break that down a little bit more, that would be helpful.

很棒很棒。謝謝。而現在在研發費用上會優先考慮這個平台嗎？我提到的情況是研發計畫減少，然後在 2024 年稍後推出更多這些計畫。因此，如果您能將其進一步分解，那將會有所幫助。

Yes. So I'm sure you guys have read and pay attention. We have a lot of initiatives going on. So in terms of an R&D perspective, we recently got a couple of FDA clearance. We launched a couple of products. So a lot of those products are now in maintenance mode. So just naturally some of our R&D expenses come down because those products are no longer in the R&D phase or in the maintenance mode. And the CardioKey iCloud is the priority right now for us and anything that's related to our cardiac ecosystem. The stuff that we have pushed out is stuff that is, you know, and for Larry and things that we have plans for in the future, we unless, of course, that gets accelerated as we got an NIH grant to and I work on Arch stroke prediction in kidney patients and that we brought closer because that was a fun new program, but other initiatives that we have in terms of development and bringing in other biometrics into our cardiac ecosystem. That stuff is been pushed out a little bit further so we've been really focusing on things that are driving direct business outcomes and direct operational efficiency.

是的。所以我相信你們已經閱讀並關注了。我們正在進行許多舉措。因此，從研發角度來看，我們最近獲得了 FDA 的多項許可。我們推出了幾種產品。因此，許多產品現在處於維護模式。因此，我們的部分研發費用自然會下降，因為這些產品不再處於研發階段或維護模式。CardioKey iCloud 是我們以及與我們的心臟生態系統相關的任何事物目前的首要任務。我們推出的東西是，你知道的，對於 Larry 和我們未來有計劃的東西，當然，除非我們得到了 NIH 的撥款，而且我在 Arch 上工作，所以這會加速。腎臟患者的中風預測，我們更加接近，因為這是一個有趣的新項目，但我們在開發方面還有其他舉措，並將其他生物識別技術引入我們的心臟生態系統。這些東西被進一步推出，所以我們一直真正專注於那些推動直接業務成果和直接營運效率的事情。

Great. That's very helpful color. And one last question of so for is the increased device sales these arise from previous relationships with where hospitals are or do you think that this increase is from new relationships with GPOs and whatnot?

偉大的。這是非常有用的顏色。最後一個問題是，設備銷售的增加是由於之前與醫院所在的地方的關係而產生的，還是您認為這種增加是由於與 GPO 的新關係等等造成的？

A combination of both. I mean there were certainly deals that were already inside of our pipeline that we had recently closing and we're closing count. So they were they were continuing to increase in terms of sales and growing in terms of our sales. And then there were new accounts that we closed. So good sales come from a combination of accounts that are growing and attracting new accounts.

兩者的結合。我的意思是，肯定有一些交易已經在我們的管道中，我們最近完成了這些交易，並且我們正在關閉計數。因此，他們的銷售額持續成長，我們的銷售額也在成長。然後我們關閉了一些新帳戶。因此，良好的銷售來自不斷成長的客戶和吸引新客戶的組合。

Great. Thank you so much, guys.

偉大的。十分感謝大家。

Thank you.

謝謝。

Ladies and gentlemen, as a reminder, if you would like to ask a question, please press star one on your telephone keypad.

女士們、先生們，謹提醒您，如果您想提問，請按電話鍵盤上的星號一。

There. Are no further questions at this time. Gentlemen, I will I'll turn it back to you for closing remarks.

那裡。目前沒有其他問題。先生們，我會把它轉回給你們作結束語。

Thank you, everybody, for attending the call, and we appreciate you taking your afternoon and listening to our remarks, we are always available. You can reach us at investors at Biotricity.com or reach out to us on our website or if there are any questions that weren't answered, please feel free to contact us in joint our mailing.

感謝大家參加電話會議，也感謝您抽出寶貴的下午時間來聆聽我們的講話，我們隨時為您服務。您可以透過 Biotricity.com 的投資者聯絡我們，或透過我們的網站聯絡我們，如果有任何問題未解答，請隨時透過聯合電子郵件與我們聯繫。

This concludes today's conference. You may now disconnect your lines at this time. Enjoy the rest of your day.

今天的會議到此結束。此時您可以斷開線路。享受你一天剩下的時間。