Biotricity, Inc. (OTCQB:BTCY) Q2 2021 Results Conference Call November 19, 2020 5:00 PM ET
Mark Forney – MKR Investor Relations
Waqqas Al-Siddiq – CEO
John Ayanoglou – CFO
Conference Call Participants
Kevin Dede – H.C. Wainwright
Good day and welcome to the Biotricity’s Fiscal Second Quarter 2021 Q2 Financial Results Conference Call. Today’s conference is being recorded.
And at this time, I would like to turn the conference over to Mark Forney, MKR Investor Relations. Please go ahead, sir.
Good afternoon, everyone, and welcome to Biotricity fiscal 2021 Q2 earnings conference call. As a reminder, Biotricity’s quarter ended on September 30, 2020, so all figures presented for this period will reflect that end date. On Tuesday, we issued our fiscal 2021 Q2 financial results press release. A copy of the press release is available on the Investor Relations section of our website and the financials are posted on EDGAR.
Before beginning our 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.
At this point, I’m pleased to turn the call over to Biotricity’s founder and CEO, Waqqas Al-Siddiq. Please go ahead.
Thank you, Mark, and thank you everybody for joining us today. Today’s an exciting day for us because this is our first earnings call, marking an important step as a public company. We believe that we have all the pieces in place to emerge as a leading growth stock in the med tech sector in 2021. So today’s discussion provides a glimpse into management view that growth will be a common theme in our future earnings calls.
Our core business is centered on remote patient monitoring or RPM as I will refer to. And one of our key differentiators is our technology platform that we built from scratch to serve multiple chronic care conditions. This gives us a significant competitive advantage because very few players in the space have built a fully sensible software platform and FDA approved hardware expertise to match.
We also took the time to integrate the 4G, 5G cellular tech ourselves, creating a complete IoT platform with global reach. We believe that our rapid revenue growth shows that we have incorporated the right features and functionality to become a major force in the complex cardiac remote patient monitoring market, a couple of key points that define our strategy.
First, our vision is to utilize our platform for diagnostic and post-diagnostic solutions where we can develop solutions for chronic patients. We chose the cardiac space as our first market chiefly because it was underserved.
Secondly, we strategically built solutions that aligned with insurance reimbursement codes where a physician and healthcare organization can use our platform in a technology to a service model or task. This is a hybrid approach of the traditional software of the service model, which shares a common theme, a recurring revenue stream with long-term customer retention. This approach of developing solutions that align with reimbursement within a service model, creating a revenue stream for both our customers and Biotricity is a core component of our strategy as a company and the foundation upon which everything is built.
Thirdly, and perhaps the most important strategic differentiator is that our task model enables the physician to drive incremental revenue while increasing patient care. This is the kind of win-win scenario that is highly desirable in any medical practice or healthcare system.
Our first commercial platform called Bioflux is a real time remote patient monitoring cardiac diagnostic solution for high risk patients. We received FDA clearance at the end of 2017 and launched a limited market release in early 2018 to gain valuable on the ground feedback while we refined our go to market plan.
We officially launched the product in early 2019. The Bioflux addresses two key problems. First, it enables the two patients to be monitored in the home; and secondly, to do so in real time. Typically patients have to use passive recording devices where data is recorded off a patch held device returned and then downloaded for analysis, sometimes taking up to two weeks for that data to get back to the patient.
Distributional patch data approach does not work for high-risk patients who could suffer an episode and can be hospitalized before data send to the dilution. Bioflux is an FDA approved high precision single unit mobile cardiac telemetry device with cloud-based software that provides real time active monitoring and transmissions of patient ECG information. Our vision during the development phase of this product was to create a best of breed easy to use platform that seamlessly integrates with physician’s existing workflows while also creating an immediate revenue stream.
Our geographical rollout has been well received and ahead of schedule. We have grown rapidly and now our solution is across 18 states to-date, and we anticipate doubling that coverage by the end of calendar 2021. We now have approximately 500 cardiologists with a 99% retention rate and 100% reorder rate. We are very proud of the fact. Our product pipeline and platform expansion are focused on touching more of these patients on a regular basis than we do today. It is our goal to become the world’s leading complex cardiac cloud.
Recently, in July, we announced a deal with Verizon to develop applications for first responders. This is the first validation of our technology platform outside of the traditional doctor’s office and our core focus in cardiac. Our long-term plan is to adapt our platform technology into other clinician markets as well and that is something I will touch on in the second half of this call.
Our solution actively monitors patient and transmits the data in real time to clinical personnel, giving medical professionals with the confidence and the time to take action, if and when it’s appropriate. This communication function is a clear advantage in highly valued by insurers and physicians because it helps prevent costly emergency room visits and hospitalization, and most importantly, creates a better level of care and peace of mind for the patient.
The extra time and resources we spent during our R&D phase can be seen in a critical measure, monthly sales. With the exception of one month due to COVID, we have experienced month-over-month growth now for 18 months. This record is a testament to the recurring nature of our business model but also serve as an important measure of the sustainability of our revenue streams.
Those of you, who already know our story, understand how much work has gone into bringing us to this pivotal point in our growth trajectory. For those of you who are hearing our story for the first time, we have perhaps the most milestone reach period in our industry lined up over the next few quarters. We believe the events on the horizon will cement our reputation as a leader in the complex cardiac monitoring space.
Revenue growth is in work will continue to provide strong confirmation of our task model and allow for better comparisons to med tech companies in parallel industries that have evolved beyond just diagnostics to product care services and in turn are growing faster and valued at higher multiples.
We have already proven that our solution has built the traction and recurring revenue to maintain resilient, open ended growth. Now, we are adding skill and building our revenue pipeline further. Our business partners and customers are cardiologists, and by extension, so they’re pool of patients. We serve chronic patients who have a need and that is lifelong in duration.
In terms of important recent milestones during our fiscal Q2 in August 2020, we received a 510(k) clearance for the FDA of our Bioflux Software II System. This product upgrade is an important milestone for the Company because it enhances our standing as the best-in-class solution. The software upgrade represents a quantum leap, improving workflows, and reducing analysis time.
Cardiac monitoring no matter how automated still requires human oversight, so reducing the time between initial data collection and clinical intervention can be lifesaving during periods of crisis. These kinds of improvements also reduce operational costs by Biotricity and ultimately our doctors and healthcare systems, particularly among high risk patient populations who require a greater degree of oversight.
It has only been three months since we received this FDA approval. So, we are just beginning to realize the positive financial impact. The pandemic created an unexpected test platform for all remote practices in all parts of medicine. We made a key strategic move this quarter with the new telemedicine offering, enabling remote prescribing of Bioflux. Telemedicine is a perfect expansion of our Bioflux platform by providing enhanced value added services to our network of cardiac specialists and supports the additional prescribing of Bioflux, a core solution.
A central question for both investors and practitioners is, what will a post-pandemic world look like in remote monitoring and remote patient doctor interaction? For us, we already have the answer, remote cardiac monitoring is one of those categories that is positively correlated to the pandemic, but was already a major focus in health care prior to COVID.
The pandemic simply cemented the need for remote care and brought it at the forefront of people’s minds. We believe that remote monitoring represents a best practice for both patients and the healthcare system, making it an area of tremendous potential growth for years to come, especially as COVID winds down and clinics returned to the new normal and people are more willing to attend healthcare clinics and organizations.
At this time, I would like to turn the call over to our CFO, John Ayanoglou to review some of the highlights from our recently completed quarter.
Thank you, Waqqas, and thank you to everyone who has joined this afternoon. This was another strong growth quarter for by Biotricity. So, I want to begin by highlighting our revenue, which increased from 346,000 in the second quarter of fiscal 2020 to 745,000 in the second quarter of the current fiscal 2021. This represents a 115% year-over-year increase.
But just as importantly, marks a sequential 65% increase over the 452,000 we posted in Q1 of this fiscal year. Revenue acceleration and back to back quarters is a true measure of sales growth. So, we are very pleased with improvement in this key metric.
As a reminder, last quarter, the fiscal — the quarter — the first quarter of fiscal 2021, we posted sequential quarterly growth of 24.5%. Now, the significant feature of that quarter and that growth was that it happened despite the initial reaction to the pandemic, which included clinic closures in late March and then the month of April.
And our business still saw sequential growth of 24%, a testament to the resilience of our business and the strength of its growth trajectory. Using our technology as a service model, we enhanced cardiologists’ practices to use our technology repeatedly, to perform cardiac studies on their patient population, which results in predictable recurring revenue for us.
As we grow, our sales force increased our penetration into existing customer clinics, and that new clinics to a customer list, we can project a steady and reliable quarterly growth curve. This gives us confidence in our ability to maintain solid revenue growth in subsequent quarters, particularly as we layer on new products, technologies and services.
During the three months ended September 30, 2020, Biotricity incurred a net loss of 3.2 million. During the period of initial commercialization of the Bioflux and the build-out of the Company’s expanded technology ecosystem, we devoted and expect to continue to devote significant resources in hiring a high caliber sales force.
We also devoted and expected continues to devote capital to our research and development programs and incur additional operating losses as we build the infrastructure required to support rapidly increasing sales volumes.
We’re at that transition point in our build from product development to sales. So, our operating expenses increased approximately 21% year-over-year to $3.2 million. These expenses are comprised of general and administrative expenses, and R&D expenses. Our G&A of $2.8 million that was higher than the corresponding prior year period by 18%.
Our R&D spend came in at $402,000 this quarter a 43% increase over last quarter, but at a level that was consistent with the immediately preceding first fiscal quarter. Our R&D spend is consistent with extensive product line enhancement, and new product development we undertook during these quarters. We anticipate seeing the benefits of these investments in calendar 2021 and beyond.
During the first six months of fiscal 2021, the Company has successfully sourced funding of 4.2 million to support the ongoing funding needs of our business included in cash flows from financing activities was $1.6 million raised from pandemic related federal loan programs. We are in build mode, spending money to expand our sales force, and the technology solutions that will comprise our ecosystem so that we can further penetrate the remote patient monitoring market.
The results of our efforts are compelling. During the first half of fiscal 2021, the Company earned 84.4% of the revenues earned in the full fiscal 2020. This bodes very well for fiscal 2021 results and the quarters to follow. Based on a recurring revenue model, we are confident that we can achieve triple digit growth for fiscal 2021 and fiscal 2022.
At this point, I would like to turn the call back over to Waqqas for his closing comments.
Thank you, John. We spent a great deal of time layering on extra functionality to ensure our solutions were best-in-class for cardiologists both from a business and customer care perspective. The attributes of our platform are obvious. We offer a one piece wearable device that we believe is the most accurate, cost effective and smallest in the market, and we give doctors a new fully reimbursable revenue stream.
A doctor who fully adopts our platform could realize substantial increase in the remote monitoring revenues, all reimbursable while drastically improving patient care. Our long-term goal is to expand our solution to go deeper into the complex cardiac space and follow chronic cardiac patients through their entire journey. Our ultimate goal is to expand across the spectrum of cardiac complexities and address the needs of these patients who have more than one condition.
Our recent launch of telemedicine is the first step in this journey where physicians will be able to remotely prescribe the Bioflux and perform follow up visits. Our telemedicine offering Biocare Telemed provide user friendly access for patients to receive medical care, remote patient cardiac monitoring. It also has some very practical applications for the future, particularly given the difficulty of travel for a percentage of the chronic patient population.
We can now give a cardiologists office the ability to book and manage appointments, connect diagnostic tools, report, monitor and diagnose remotely using our Bioflux device. Most importantly, our platform is EMR agnostic, which means it can be adapted to handle various electronic patient medical records. We recently passed the midpoint of an aggressive fourth quarter our new window with a series of new product enhancements and functionality just completed and more on the way.
Currently, we are working on a cardiac recording solution to address the needs of lower risk patients while addressing the gaps in the technologies available today. This solution tripled our total addressable market, increasing it from $1 billion today to $3 billion, and also opens up larger customer targets. We expect to have this product in early 2021 after FDA clearance. We have built and are building the catalyst that we anticipate to accelerate our growth starting in this next year.
First step, we will apply to receive FDA clearance for Biotrade, which is a three in one monitoring device solution, offering event holter and extended holter functionality. It is difficult to predict timing of FDA clearance due to COVID, but our timeframe for expected approval has now been compressed down to months rather than quarters. The approval will widen our competitive advantage on the device side and greatly increase our appeal to cardiologists.
We are well into the product commercialization phase in the cardiac category, but longer-term, we have additional targets available. During our R&D stage, we developed tools and expertise that constitute a highly scalable, automated, artificial intelligence and data-centric, secure platform that can be replicated for other diseases. We have competition in each part of our current market in the cardiac segment, so that will be our focus in 2021, but we are also prioritizing the most medically synergistic complexity for strategic entry.
We believe that our platform can be adapted for other remote monitoring applications such as fetal ECG, COPD, renal, sleep apnea and diabetes to name just a few. Our focus is to move from cardiac to complex cardiac where we expand our platform to meet the needs of cardiac patients who have multiple conditions. We are at the best place in our company history in terms of product development, industry growth and near-term milestones.
Our cash model is proven to be a monthly growth rates that are accelerating, creating a customer base that is partner in revenue generation gives us a tremendous strategic advantage in maintaining continued market penetration, our revenue solidly recurring scalable and high margin and about to show significant acceleration.
We aren’t well-known yet to investors, but we believe that we are well on our way to establishing ourselves as a leader in the cardiac segment of the remote medical monitoring business. Our ultimate goal is to change the standard of care by becoming the world’s leading complex chronic care cardiac cloud service.
At this point, I would like to open up the call for some questions.
[Operator Instructions] And we will go first to Kevin Dede of H.C. Wainwright.
Thanks taking my question. Congrats to the sequential revenue growth, especially given the overarching environmental considerations. I got a few for you and I guess I ought to just apologize for my ignorance to the story. It’s still relatively new to me. So, please forgive me for that. But could you talk a little bit about your device first, just so I have a handle on it? Were there FDA design requirements that mandated your incorporation of a 4G, 5G modem versus a bluetooth connection with a smartphone that most all of everybody, especially cardiac patients might already have?
Excellent question and no problem, we totally understand and happy to take questions. So, regarding the device and why cellular? So, the FDA has mandated for real-time monitoring is that you need to have, you need to be able to transmit the data in case that an event is occurred because these are smart devices, intelligent devices. So, the moment you are bluetooth dependent and you’re going to the patient cell phone, what if someone use a cell phone? What if you forgot to charge the cell phone?
So, the FDA wants to remove the risk of some situation occurring, and the device tries to transmit and the application is turned off or it’s not running properly in the background or something else is happening. So, what is happening in cardiac spaces, you are provided a dedicated cell phone, so the patient carries their cell phone plus a dedicated cell phone, which is bluetooth connected to a device for transmission, and you are correct, that is the standard today.
We integrated 4G, 5G cellular into our device for two reasons. One is because if you consolidate it, it’s easier for the patient, that charging two units having their cell phone plus this other special cell phone just for transmission creates a whole problem in terms of ensuring effective diagnostics. So, we integrated all of that into one piece device simpler and easier to use for the patient.
And the second reason is, because we see that the vision and our vision for the Company, we see everything going into remote monitoring. And in order to go remote monitoring, you really need to have a platform approach, where you have control on the communication fabric, as opposed to always be dependent on a cell phone manufacturer, and then giving you access and then installing a custom version of your operating system and all of that.
So, our approach was to control that and build our build our platform, and it’s actually working really well and has given us an edge and also allows us to think globally.
Okay, congrats on the Verizon announcement for first responder. But could you sort of take us through, I mean, I have a vague idea of your existing business model, you’ll have patients work with their physicians, physicians have insurance codes, and the standard payment process works for your existing, I mean, it fits into an existing device, right, within I guess — the way things are set up, it seems to fit. What doesn’t work as I see it is, how does your business model fit that Verizon application?
Yes, so what happened with first responder is, it’s a completely different application completely different business model completely different approach. And this is where I was talking to earlier about, how our platform can be applied to different areas. So first responders, they have a challenge of getting information from a patient into the field, and getting it in front of the doctor as quickly as possible, right. And since we’re cellular connected, we collect that data and feed it off to the position.
There is reimbursement available for that. It’s just done it with a different code because it’s not long term monitoring. Now, it’s a short term quick check. So, there’s less revenue associated with there, but it would become a part of a first responder kit and allow for faster response time. So, there’s still an insurance reimbursement around quick spot check ECG or quick spot check cardiac monitoring. The codes are different, but there is a there is a model that still exists there.
Okay, okay, that that helps, all right. So, the $1.2 million that you recognized for the first six months of the fiscal year, is it fair to assume that that’s all tied to Bioflux? I know that you’ve introduced some other products and services. I’m just wondering, especially telemedicine. I’m just wondering if you’ve launched any of that and you’re recognizing revenue for any of those yet.
All of that revenue is Bioflux oriented right now. We’ve just launched Bioflux, just launched a telemedicine and the other products and services are going to be showing up in our revenue cycle in the next 90 days, in the next quarter, you’ll see some of those line items show up.
Okay. I think the big sort of elephant in the room is the biz dev strategy, and how, I guess, do you plan on continuing the growth track, making sure that people recognize Biotricity versus to your point during your prepared remarks about the, I guess, just the growth in telemedicine in general and the increasing competition that you’re finding? So, sort of a couple of questions rolled in there, if you can handle it or if you want to handle it, and just sort of maybe give us a little insight on who you think some of your better competitors might be?
Yes, absolutely. I’ll kind of divide that up into a couple of different components since you had rolled up. So not to oversimplify it, but when you talk about what’s going to help us to continue our growth and achieve our business goals of countrywide coverage, I mean, simply put, we need add more sales people. We have a product that’s in the market, that’s got insurance reimbursement, that’s working, it’s accepted.
Having 500 cardiologists across 18 states using a product, every single day, it’s no small feat. So, we need to expand our sales force and we do not see anything changing the need to maintain cardiac health that has been proven under the most demanding times. And I believe that, it will not only accelerate because of COVID, but as offices come back and be open up, I think our growth has that opportunity of accelerating as well.
In terms of we’re talking about telemedicine, you mentioned in competition, so telemedicine in its current form is really meant for non-high risk non-chronic patients. It’s really for basic visits, right? And I have a fever, what do I need to do? You get onto telemedicine. You talk to general practitioner. It’s a simple. It’s a simple visit. We’ve introduced telemedicine for cardiologists. So, you should get specialist access on telemedicine.
And that is primarily for them to provide access to their patients and as well as remotely prescribed the Bioflux. So, our approaching telemedicine is really chronic cardiac, which is very unique, and there’s really no competition in that space. So, that’s how we kind of see our approach in terms of how telemedicine competes with us and then how we see our growth in terms of cardiac, it’s about expanding our sales force.
So, where is your headcount now and where do you think it needs to be by, I don’t know, maybe year and next year?
We have 12 full-time sales reps right now, and we want to be at 25, call it, this time next year.
Okay, all right. So you pushed through your product rollout timeline a little too quick for me. I was just kind of wondering, if you wouldn’t mind just sort of take a step back and walk through that again and explain how your total addressable market goes from $1 billion to $3 billion? I mean, your website talks to a pain product, but I imagine there are many other sensors that you could incorporate into Bioflux. So could you just give us some insight on those?
Yes. So in terms of looking at how that that increases from $1 billion to $3 billion, so right now our product is for high risk patients, real-time monitoring. Low risk patients use a passive recorder, the holter market, which is basically a patch that collects the data then downloaded a new analysis. That is a $2 billion market. So the Bioflux product, which we’re going to file for FDA, in the next 90 days, that product is going to be launched next year.
And the moment that that’s obviously available, even within our own existing ecosystem, all those customers will adopt it because they also have low risk cardiac patients along with high risk cardiac patients. Right now, we are only — you’d like to buy Biotricity for high risk patients. So, this will increase that market opportunity from capturing not just the high risk, but the high risk and the low risk cardiac patients.
And we’ll go to our next question from [indiscernible] Equity.
Hey Waqqas, I got two questions for you here. So, Kevin asked one question I was going to ask, which is where the extra $2 billion in 10-K came from when I get it now, but what about the idea of the telemedicine monthly care? It sounds like that could be — you’ve got the doctors in place, and what do they see? So what’s the business case for them to adopt this because I’m sure there’s 1 million products out there. So why yours and assuming that it gets in the way of that TAM look like?
Excellent question, Chris. So basically, our approach there and why — first of all, why is it important, right? So, a cardiologist first, what is Bioflux used for? Bioflux is used for diagnostics. So screening the patient, determining if there’s something wrong thing, then the doctor performs a treatment. That treatment is medication or he’s doing a surgery or a procedure or something like that.
Now that patient is chronic, and he’s got to watch them patient, basically perpetuity every six to nine months, he may do another diagnostic test to see. Is the medication helping? Are they aligned or not aligned? And so on and so forth. But the patients that are in control, he doesn’t necessarily really — he or she — the cardiologist does not necessarily to see. And so, the number of patients that a doctor can see is limited by obviously their time and besides their practice, et cetera, but they’re responsible for all those patients.
And so, we’re monthly care and this chronic care, and this telemedicine, all of these things come in, it really helps deal with in a more efficient way, the 30% to 40% of the patients that are stable. So now instead of the doctor saying, hey, I’m going to go see you every three months, you’re going to say, everything looks good. Let’s schedule a new telemedicine call with you. Everything looks good, no need to come in, we’re going to schedule I’ll do prescription refill, let’s connect again in three months.
And so what it does is it opens up the physician’s time. So their main incentive of adopting this and utilizing this is to create an efficiency so they get extra time and they’re not spending their time with patients that are stable. They’re focusing on the patients that really need them, right, procedural work or better, not stable, etcetera. And in terms of our differentiator, and why that is critical, why do they choose our solution is because we are the product that they’re depending on for the initial diagnosis.
So, we know more about that patient from a technology perspective after the doctors. So, it only makes sense that if you’re going to use the Bioflux in Biotricity to diagnose the patient, you should use Biotricity Bioflux to manage the patient because after you’ve managed the patient, if they are stable, or let’s say, they’re not stable, you have to go back to Biotricity to do the diagnostic, because that’s what you’re using for diagnostics.
So, it’s an alignment of the technology so that you can actually track the patient and get a holistic picture of the patient in one environment in one view, without having to look at multiple different vendors. And in terms of the TAM, chronic care and cardiac care, it’s estimated to be a $50 billion market, because it’s the number one killer in the United States and pretty much every country in the world.
And it’s the biggest burden in terms of costs because you’ve got multiple people not just with cardiac disease that I alluded to earlier in the call, they’ve got multiple issues. So you’ve got diabetes in cardiac disease, sleep apnea in cardiac, kidney disease in cardiac. So, all of these patients have the same problem. It’s about cardiac management and that’s where we think; A, that side of the TAM; B, why did we choose us and see; and C, why it’s important to begin with.
Okay. And what’s intriguing about what you guys are doing is the business model differences, competitive advantage you have versus other players in the space. Did the same business model advantage apply what you have in Bioflux in Biotrade and into the telemedicine in the chronic care product?
Yes, absolutely. So one thing that we do and I obviously the call is a little bit long, and one of the things that I was trying to stress is, we place an importance on advanced technology or best of breed technology. So, with the Biotrade, we’ve solved all of the challenges with current holter solutions. And we align that with a revenue stream for the physician. So, that creates that competitive advantage, not only are you getting the best in breed technology, you’re providing it in a framework that the physician has generating the revenue or the healthcare organization is generating the revenue, and of course Biotricity is generating a recurring revenue from it as well. So, that’s structured technology as a service, that remains, and that competitive advantage remains because not only are you creating a revenue center for the physician, you’re doing it by creating, by providing the best in breed technology to improve the quality of care.
Okay, all right. A question on sales people, you mentioned you have 12 now. What’s the kind of the average tenure? I’m trying understand, have they, they seasoned to the point now where they’re hitting them all cylinders or is they’re still working our way up to that point?
So, we did a big sales expansion in the early part of this year, that was when we were hiring and then COVID happened and derailed us for a little bit in terms of recruiting and an office and shutting down because obviously not everybody is willing to have salespeople coming into their offices. But there’s four people that are very tenured in our team, and the other eight people are all new, but everybody’s hitting their stride, and as the numbers show we are growing very well. But to your point, these are recently many of these guys have come in the last 9, 10 months. So, we’re going to see — we feel that next year is going to be a very, very good year for us.
And we’ll move to our next question from Kent Williams of [indiscernible].
This is Kent Williams. Thank you very much for the good informative call. I have question relative to your successful competitors Livongo well on track. It seems as though they’re very, they’re not proactive, they’re responsive from a platforms and telemedicine. It seems like there’s an opportunity to differentiate yourself and also for joint venture opportunities for your diagnostics to support new platforms as well, part of licensing or any other types of business model extensions, you might be thinking about?
Excellent question, Ken, and happy to have you on the call. So, there are several factors that we believe will allow us, not only to compete, but also to align ourselves if there is a strategic alliance there. The complex cardiac market is basically a wide open market, if you look at the companies that you mentioned, none of them have a cardiac space; and more importantly, when you go into the cardiac space, you need the link to the cardiac specialty, which Biotricity has because we come from the diagnostic side.
So, there’s a natural alignment that if someone wants to look at in terms of partnering or aligning patients that have diseases that they’re supporting and that we’re also supporting like diabetics that Livongo supports also have cardiac disease. So the one thing that we have is we have this ecosystem of cardiac specialist cardiologists. And then, we’ve got a solution in a platform that is focused on cardiac in and of itself, which these other vendors are not going into because cardiac is a complicated and you need diagnostics to understand where and how they are managing and improving.
And, the key thing that we bring and this is where the Bioflux is such an important product for us, is bringing diagnostics into the equation, not only facilitates management, but it also facilitates intervention, because if the patient is stable, then the doctor is going to go back and he’s going to use Bioflux to diagnose and make sure that they’re stable. But if they’re not stable, again, you do need the Bioflux to show that they’re not stable and then make a treatment decision.
So you need this connection into the diagnostics and that is going to be a key component that I think is a differentiator for us. It’s going to allow us to compete. And also bear in mind that, we are very early on, we talked about our product lifecycle and how we came to be in this call. Our product, it was officially launched in April of 2019. So, we’re like 18 months old. Livongo and some other companies that you had mentioned have been around for a very long time. And Livongo was an example started with the glucometer. And then they move deeper and wider and we think the same approaches available for cardiac.
One last question. Relative to your sales force reaching out to the doctors, isn’t there a better approach to dealing with clinics and electrophysiology labs?
Absolutely. So, we do both, right. So, there EP labs that are aligned with cardiac centers and cardiology centers and then there EP specialty groups and then there EP is within multi-care groups. So, we are going after the bigger groups, multi-care groups and independent cardiologist, sand here and there we end up in the healthcare system, the health care system sales cycle is a lot longer our sales cycle on the cardiac side in terms of independent multi-groups is a lot shorter.
So, the answer to your question is, we’re going after the EPs and there is an approach where, you know, sales guys don’t have to go door by door to go after a group. And we are layering that along within our go to market strategy, but we obviously go after low-hanging fruit, because if the sales cycle is short and we can close sales immediately, we will close those first while also working the bigger market.
And we will go to our next question from [indiscernible]
Thank you very much. And again guys congrats on the great quarter, a couple of quick questions. If you could just add a little color on when you expect to achieve profitability? And then I have a follow-up after that.
Thank you, Chad. Thank you for joining next and excellent questions. So, profitability becomes a focus for emerging growth companies facing a small addressable market for those that can be severely impacted by a recession. Fortunately, we faced neither of those difficulties and in fact, we have a recession resilient recurring revenue business. And if you look at the most successful companies, they have focused on growth until the economy of scale realized and then they become focusing on efficiency or hyper efficiency.
So, take a look at Amazon, Netflix, Facebook, Uber, all of these companies focused on growth, growth, growth, growth, growth, and then, efficiency, efficiency, efficiency. So given the market size, our priority and focus is growth, but in alignment with our market opportunity and increasing shareholder value. So what does that mean? As the market in our time increases our growth and focus on growth is aligned to how that market is expanding. And of course the root of all of this is our focus and commitment to increasing shareholder value.
Very good. Thank you. And just one more question. Could you give a little color on a lot of what we’re seeing out there in terms of the conserving device like the Apple Watch and the Fitbit is getting to biometrics and what that means to Biotricity?
Another excellent question. We see a lot of activity in the space and whatnot. And what I would say is, Apple Watch and the types of products, I mean, they really are opening up the market for a product like by Bioflux. And to state it in a simpler way, a doctor’s not going to crack somebody’s chest open based on what your Apple Watch or Fitbit says. Apple Watches are going to grow this market. They are acting as a screening tool or early identifiers, but efficient physician cannot prescribe medication or perform surgery based on what these devices provide.
But today and every day, based on what the Bioflux provides, they do. And in fact, if one of these devices screens a patient today, they would end getting referred to a cardiologist office and that cardiologist would then prescribe the Bioflux to perform the appropriate diagnosis before making a treatment decision. So, I’m not trying to be, I mean, cheek here, but the key focus here is, really the differentiator between diagnostics and screening.
So there are many, many Americans that are living, that don’t understand that they actually have a cardiac condition, they’re asymptomatic and whatnot. And so, these tools are actually quite valuable for them. But ultimately, they will end up at a cardiologist office with a diagnostic tool to perform a proper study so that the physician can actually take action.
[Operator Instructions] And we do have a follow up question from Kevin Dede of H.C. Wainwright.
Apologies for lagging your time I’ll close. But Kent got me thinking, given your biz dev targeting and focus on non-existing practices and groups where you can shorten the sales cycle. Has there been any kicking around the idea of maybe forming a partnership? And I mean, you just came to the forefront for me, because he’s seen obviously, lots of discussion of partnerships with companies like Pfizer and Biotech. And I’m just kind of wondering if you’re thinking about other ways to get to the market more comprehensively?
No, that’s an excellent question. And Absolutely, I mean, like I was saying, we’ve taken a lot of time we’ve gotten to build this ecosystem out. We’ve got a good footprint now. And now that we have that footprint, and we kind of have that network, we’re going to and, I think, we’re undecided by 2021, it’s really about a network effect. And how does the network effects takes place is, is really when you have something like what we have today, where we are on the cusp of this type of growth, but we have a network in an ecosystem that’s big enough, that is of interest to partners.
So why did Verizon look at us, because it’s an, hey, this device aligned, but hey, they also have 500 cardiologists, that can if need to be we can connect our ecosystem into them and access these physician. So, what is going to change I think for us as a company is, partnerships and exploring these partnerships, there’s going to be a lot of synergies, there’s going to be a lot of opportunities. And that is really a product of where we are at today, a year ago, our footprint more than big enough. As the footprint grows, these partnerships are going to become more and more available to us.
And absolutely, we will take advantage of them when their strategic alignment and we can access, because at the end of the day, we’re focused on complex cardiac. But there are going to be other patients that are the primary issue something else, but they’re at risk for cardiac. So, they are not a patient that we would ever see in our ecosystem or a physician that would come into our ecosystem. But we want to be aligned, because at some point, they may want to screen their patient with a diagnostic tool.
And I would like to turn the call back to our presenters.
Thank you. So, a couple of concluding remarks. In this environment, we can’t really be certain of the timing of every event on our agenda. We discuss a lot of things here. But what I can say is we have a full pipeline of revenue enhancing events on our near term calendar.
So we look forward to sharing those details and the details of the progress along those lines as we continue to build our leadership position in cardiac remote patient monitoring and focus on increasing shareholder value.
Thank you, everybody for joining us today.
And this concludes today’s call. Thank you for your participation. You may now disconnect.