Bitech Technologies Corp (BTTC)·Q2 2018 Earnings Summary

Executive Summary

• Q2 2018 delivered strong year-over-year improvement: revenue rose 42% to $604,709, gross profit rose 39% to $397,101, and the company swung to net income of $22,619 from a loss of $155,529, driven largely by increased case volume at the new Las Cruces, NM affiliate .
• Sequentially, revenue moderated vs. Q1 2018 ($634,426), with gross profit and net income also lower versus Q1’s $440,781 and $90,305 as the company invested in operations while maintaining four diagnostic centers (Houston, Tyler, Odessa, Las Cruces) .
• Management highlighted H1 collections surpassing $20 million since inception and reiterated expansion of affiliate programs and QVH technology, pointing to future growth including increased diagnostic testing for Post-Concussion Syndrome .
• No formal quantitative guidance or Street consensus was presented; focus turns to affiliate expansion, technology commercialization (QVH), and potential diagnostic testing ramp as near-term catalysts .

What Went Well and What Went Wrong

What Went Well

• Strong YoY growth and profitability inflection: revenue +42%, gross profit +39%, and net income of $22,619 vs. a loss in Q2 2017, supported by Las Cruces ramp and four operating centers .
• Operating discipline: operating, general and administrative expenses fell vs. Q2 2017 due to lower bad debt and payroll, aiding the swing to profitability .
• Management confidence and milestone achievement: “The first half of this year has provided us with reaching milestones and exceeding expectations… our collections exceeded $20 million… expanding our core business model” (Dr. Donovan) .

What Went Wrong

• Sequential softness vs. Q1 2018 (revenue $604,709 vs. $634,426; net income $22,619 vs. $90,305) as investments and changing case mix tempered quarter-on-quarter momentum .
• Service cost increased with case volume (notably in Las Cruces), partially offsetting gross profit gains (Q2 service cost $207,608 vs. $140,583 in Q2 2017) .
• No formal guidance or consensus estimate framework, limiting near-term visibility for investors; management commentary remained qualitative around expansion and technology rollout .

Financial Results

Quarterly results vs prior quarter

Notes: Gross margin = Gross Profit / Revenue, calculated from cited figures.

Q2 year-over-year comparison

Operating detail and KPIs

Additional context: FY2017 net revenues were $1,855,615 with a 70% gross margin, impacted by Hurricane Harvey’s disruption at the Houston affiliate .

Guidance Changes

No quantitative ranges for revenue, margins, OpEx, or tax rate were provided in the Q2 materials; management commentary focused on expansion of affiliates/QVH and anticipated diagnostic testing opportunities .

Earnings Call Themes & Trends

Note: A Q3 2018 release later indicated initial SaaS/HaaS subscriptions for QVH with deferred revenue recognition beginning Q4 2018 (forward context) .

Management Commentary

• “The first half of this year has provided us with reaching milestones and exceeding expectations… our collections exceeded $20 million… expand our core business model of funding spinal injury medical procedures through our own affiliates.” — Dr. William Donovan, Chairman/CEO .
• “The first six months of 2018 is a base from which we can expand… anticipate a significant increase in the amount of diagnostic testing for Post-Concussion Syndrome.” — Dr. Donovan .
• “Q1 was a period filled with opportunities due to aggressive sales and marketing efforts… continued to introduce our Quad Video Halo… focusing on numerous applications to enhance our knowledge of the challenges… where the Quad Video Halo can play a central role.” — Dr. Donovan .

Q&A Highlights

• The company held an investor conference call on August 15, 2018 at 10:30 a.m. EDT; access was via webinar with open Q&A after prepared remarks .
• A public transcript was not provided in company filings; a playback video was to be available on the website per the release .
• No additional guidance clarifications or quantitative updates beyond the press release were available in the filings reviewed .

Estimates Context

• No Wall Street consensus (revenue or EPS) comparisons are presented due to lack of accessible S&P Global consensus data for this micro-cap period; management did not provide formal guidance in the Q2 materials .
• Investors should anchor on historical trends (YoY and sequential changes) and operational drivers (affiliate expansion, QVH commercialization, diagnostic testing ramp) pending broader analyst coverage .

Key Takeaways for Investors

• YoY momentum with profitability inflection: Q2 revenue +42% and net income of $22,619 vs. loss prior year, underpinned by Las Cruces growth and four-center network .
• Sequential moderation vs. Q1 2018 (revenue $604,709 vs. $634,426; net income $22,619 vs. $90,305) suggests quarter-to-quarter variability tied to case volume/mix and ongoing investments .
• Operating leverage improving: lower operating, G&A expenses vs. prior-year quarter aided swing to profit; watch for sustainability as volumes scale .
• Collections milestone (> $20M since inception by June 30) validates monetization model; continued affiliate expansion could compound collections over time .
• Near-term catalysts: additional affiliate signings and QVH deployments; management is preparing for increased Post-Concussion diagnostic testing .
• Visibility challenge: no formal quantitative guidance and no presented consensus limits estimate-based trading setups; focus on monthly/quarterly operational updates and affiliate wins .
• Watch case volume at Las Cruces and any new market entries for read-through to revenue cadence and service cost absorption .