Investment Thesis
Biotricity exhibits severe financial distress with negative stockholders' equity of -$34.2M, indicating the company is technically insolvent. Despite strong gross margins of 81.3%, the company burns cash operationally (-$698K in FCF) and cannot cover basic operating expenses, with a critical liquidity crisis evidenced by a current ratio of 0.21x and only $256.4K in cash.
Strengths
- Exceptional gross margin of 81.3% indicates strong pricing power and product unit economics
- Positive operating income of $996.7K demonstrates some operational profitability at the EBIT level
- Medical device sector with potential for recurring revenue if commercial traction improves
Risks
- Negative stockholders' equity of -$34.2M represents technical insolvency and existential bankruptcy risk
- Severe liquidity crisis with current ratio of 0.21x and only $256.4K cash against $38.2M total liabilities
- Negative operating cash flow of -$698K and free cash flow of -$727.8K indicates unsustainable cash burn with no clear path to profitability
- Net loss of -$2.1M on $11.7M revenue demonstrates inability to convert gross profits into bottom-line profitability
- Interest coverage ratio of 0.4x indicates inability to service debt obligations from operating earnings
Key Metrics to Watch
- Cash burn rate and cash runway until depletion
- Operating cash flow trajectory toward positive territory
- Revenue growth rate and path to achieving positive net income
- Stockholders' equity recovery through capital raises or debt restructuring
- Debt service obligations and refinancing risk
Financial Metrics
Revenue
11.7M
Net Income
-2.1M
EPS (Diluted)
$-0.10
Free Cash Flow
-727.8K
Total Assets
5.7M
Cash
256.4K
Profitability Ratios
Gross Margin
81.3%
Operating Margin
8.5%
Net Margin
-17.7%
ROE
N/A
ROA
-36.6%
FCF Margin
-6.2%
Balance Sheet & Liquidity
Current Ratio
0.21x
Quick Ratio
0.13x
Debt/Equity
N/A
Debt/Assets
671.9%
Interest Coverage
0.42x
Long-term Debt
270.0K
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-21T14:54:11.964507 |
Data as of: 2025-12-31 |
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