Executive Summary

Q1 2018 delivered a return to profitability: net revenue rose 26% year over year to $0.63M, gross profit rose 28% to $0.44M, and net income reached $0.09M vs a loss in the prior year, driven by higher case volume and reduced operating expenses .
Sequential trend into Q2 2018 remained solid with net revenue of $0.60M and positive net income, as the Las Cruces, NM affiliate contributed incremental volume; however, Q4 2017 quarterly detail was not disclosed, limiting clean prior-quarter comparison .
Management emphasized commercialization progress of Quad Video Halo and expansion across affiliates (Houston, Tyler, Odessa, Las Cruces), alongside disciplined OpEx control, positioning continued profitability as a key near-term narrative .
No formal financial guidance ranges were provided; investor webinar calls were held, but a transcript was not filed; Street consensus via S&P Global was unavailable for this micro-cap, so beats/misses versus estimates cannot be determined .

What Went Well and What Went Wrong

What Went Well

Strong top-line momentum: net revenue +26% YoY to $634,426 with gross revenue of $1,058,124 and a variable consideration discount of $423,698, reflecting improved case activity and affiliate contributions .
Profitability inflection: net income of $90,305 vs a loss of $49,389 in Q1 2017, supported by lower operating, general and administrative expenses ($349,273 vs $382,028) and higher gross profit ($440,781 vs $344,359) .
Management execution and commercialization: “Throughout the quarter our affiliate programs continued to garner what we believe is increasing interest… We continued to introduce our Quad Video Halo to our target markets…” (Dr. Donovan, CEO) .

What Went Wrong

Variable consideration remains material: settlement discounts of $423,698 in Q1 2018 (vs $330,157 in Q1 2017) remain a core feature of revenue recognition, adding volatility to reported net revenue .
Cost pressures tied to expansion: service cost increased to $193,645 (from $156,804) with Las Cruces recording first revenue and higher case volume in Odessa, reflecting the cost of scaling affiliates .
Limited disclosure/Street coverage: no formal guidance, no filed call transcript, and S&P Global consensus not available; this constrains estimate benchmarking and may limit institutional engagement .

Financial Results

Revenue, Gross Profit, Net Income – YoY and Sequential

Metric	Q2 2017	Q4 2017 (prior quarter)	Q1 2018
Gross Revenue ($USD)	$730,894	N/A (annual results disclosed)	$1,058,124
Variable Consideration Discount ($USD)	$304,830	N/A	$423,698
Net Revenue ($USD)	$426,064	N/A	$634,426
Gross Profit ($USD)	$285,481	N/A	$440,781
Net Income ($USD)	-$155,529	N/A	$90,305

Notes: Q4 2017 press release provided annual FY2017 aggregates; quarterly Q4 detail was not disclosed .

Margins (derived from reported figures)

Margin	Q2 2017	Q1 2018
Gross Profit Margin (%)	39.7% (285,481 / 426,064)	69.4% (440,781 / 634,426)
Net Income Margin (%)	-36.5% (-155,529 / 426,064)	14.2% (90,305 / 634,426)

Note: Margins are calculated from reported net revenue and gross profit/net income in filings.

Operating Expenses and Cash Flow

Metric	Q2 2017	Q1 2017	Q1 2018
Operating, G&A Expenses ($USD)	$417,467	$382,028	$349,273
Service Cost ($USD)	$140,583	$156,804	$193,645
Cash from Operations ($USD)	(six months) -$196,584	-$93,553	$5,068
Settlements Collected ($USD)	(six months) n/a	$419,086	$560,343

Segment/Affiliate Activity (operational footprint)

Period	Centers Active	Centers Listed
Q2 2017	3	Houston, Tyler, Odessa
Q1 2018	4	Houston, Tyler, Odessa, Las Cruces (NM)
Q2 2018	4	Houston, Tyler, Odessa, Las Cruces (NM)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2018	Not provided	Not provided	Maintained (no formal guidance)
Gross Margin	FY2018	Not provided	Not provided	Maintained (no formal guidance)
OpEx	FY2018	Not provided	Commentary: emphasis on sales/marketing and operational execution (no numeric range)	Maintained (qualitative only)
EPS	FY2018	Not provided	Not provided	Maintained
Tax Rate	FY2018	Not provided	Not provided	Maintained

No formal quantitative guidance ranges were disclosed; management discussed focus areas but did not issue specific revenue/margin/EPS targets .

Earnings Call Themes & Trends

Topic	Q2 2017 (Prior Two)	Q4 2017 (Prior One)	Q1 2018 (Current)	Trend
Affiliate expansion	COO appointed to drive national expansion; model generated ~9,000 procedures, ~$17M collections over seven years	Four QVH systems in operation; affiliate programs in Houston, Odessa, Tyler, New Mexico	Four centers active; Las Cruces first-quarter revenue contribution	Expansion progressing; broader footprint
Quad Video Halo commercialization	Emphasis on scalability and standardized program; COO to develop expansion	Commercial progress and national affiliate expansion; QVH meeting performance requirements	Continued introduction to target markets; focusing applications and feedback loops	Ongoing commercialization and adoption
Macro/Disruption (Harvey)	n/a	Hurricane Harvey depressed 2017 activity in Houston; multi-month impact	Normalizing activity with revenue growth	Recovery underway
Cost discipline/OpEx	OpEx flat YoY in Q2 2017; service cost down with lower case volume	FY17 OpEx down vs FY16; noncash charges reduced	OpEx reduced vs prior-year quarter; noncash charges modestly higher	Continued control
New diagnostics (PCS testing)	n/a	n/a	Management anticipates expanding Post-Concussion Syndrome testing in affiliates	Pipeline of new services
Collections/settlements	Six-month CFO negative; financing activity mixed	2017 collections $1.80M; cumulative collections highlighted	Q1 settlements collected $560k; six-month collections exceed $20M cumulatively	Strengthening collections trend

Management Commentary

“Throughout the quarter our affiliate programs continued to garner what we believe is increasing interest from our unique services… [we] continued to introduce our Quad Video Halo to our target markets…” — Dr. William Donovan, Chairman & CEO (Q1 2018) .
“Fiscal 2017 marked a year of substantial progress in our commercialization efforts and our national affiliate expansion plans for Quad Video Halo… we concluded the year with four Quad Video Halo systems in operation and 780 procedures conducted in 2017.” — Dr. Donovan (FY2017) .
“The first half of this year has provided us with reaching milestones… Through June 30th our collections exceeded $20 million… results included top line growth, strong gross profit, and net income.” — Dr. Donovan (Q2 2018) .
“We remain committed to developing long-term partnerships, increasing revenues, generating positive cash flow and remaining profitable… emphasizing sales and marketing activities as well as improving overall operational execution.” — Dr. Donovan (Q1 2018) .

Q&A Highlights

The company held investor webinar calls (Gotowebinar) and provided replay access; however, a formal transcript was not filed, limiting detailed Q&A review .
Calls emphasized affiliate expansion, QVH commercialization, and operating execution; questions could be typed or asked via moderated webinar, but content is not available as a transcript in filings .

Estimates Context

Wall Street consensus via S&P Global for Q1 2018 EPS and revenue was unavailable for BTTC; as a result, we cannot evaluate beats/misses versus Street expectations. Values retrieved from S&P Global.*

Metric	Q1 2018 Consensus	# of Estimates
Revenue ($USD)	N/A*	N/A*
Primary EPS ($USD)	N/A*	N/A*

Key Takeaways for Investors

Profitability inflection: Q1 2018 posted $0.09M net income on $0.63M net revenue, a decisive improvement vs the prior-year quarter; continued positive net income in Q2 2018 supports a sustained turnaround narrative .
Expanding affiliate footprint is the growth lever: the addition of Las Cruces and higher Odessa volume drove both revenue and service costs; near-term thesis hinges on scaling centers while maintaining margin discipline .
Revenue quality considerations: sizable variable consideration discounts (Q1: $423,698) are inherent to the model; investors should track gross-to-net dynamics and settlement cadence to assess durability of revenue growth .
OpEx control is working: operating, G&A expenses fell year over year in Q1, aiding profitability; maintaining cost discipline through expansion is critical to margin consistency .
Collections and cash flow trajectory: Q1 operating cash flow turned positive ($5,068) and settlements collected rose to $560k, signaling improving monetization, though six-month CFO was negative, requiring monitoring of working capital and receivable cycles .
Commercialization of QVH and new diagnostics (PCS testing) can widen the revenue base; the pipeline suggests incremental services that could diversify revenue and enhance gross profit .
Lack of formal guidance and limited Street coverage: absent consensus, trade setups will rely on operational milestones (new centers, collections, gross-to-net trends) and webinar disclosures; watch for any future filings that add quarterly detail or guidance ranges .

Bitech Technologies Corp (BTTC)·Q1 2018 Earnings Summary