Brain+ publishes its Annual Report for 2024
Copenhagen, Denmark, April 29, 2024 – Brain+ A/S (Nasdaq First North: BRAINP)
In 2024, Brain+ (“Brain+” or the “Company”) realized a net loss of DKK -12.0 million (2023: DKK -19,1 million), which is at the lowest end of the Company’s expectations of a net loss of DKK 12-15 million as presented in the Half-year Report for 2024. For 2025, the Company is forecasted to reach DKK 3.6-3.8 million in cash flow from sales and to continue to expand the reach of its Ayla dementia care platform to build the foundation for operational break-even by mid-2026 as previously announced.
Brain+, a healthtech company pioneering Ayla, the world’s first scalable dementia care platform, today published its Annual Report for 2024.
In Q1 2024, Brain+ launched a new commercialization plan focused on the United Kingdom (UK), which is considered the currently most attractive market for the Company’s dementia care solutions. Later in the year, the development of the first product, Ayla – your CST Assistant, was completed for efficient and scaled delivery of Cognitive Stimulation Therapy (CST), the worldwide most renowned and evidence-based non-pharmaceutical dementia therapy, and the product was launched in Denmark and as a certified medical device in the UK.
Transitioning from a research and development focused company, Brain+ in 2024 hired a UK-based Chief Commercial Officer with a proven track-record in building and scaling new healthtech solutions. This set the scene for building a UK commercial organization and start executing an ambitious go-to-market plan for Ayla – your CST Assistant, targeting both the private care home market and public memory assessment units under the NHS. The Ayla dementia care offering has been very positively received and at the end of 2024, Brain+ started gaining customer traction and building a considerable sales pipeline.
Financial highlights for 2024:
- Total income amounted to DKK 7.9 million (2023: DKK 6.4 million). Hereof recognized revenue from Danish sales contributed with DKK 0.2 million (2023: DKK 0.1 million), which was slightly below expectations of reaching DKK 0.25-0.3 million in total sales revenue, as the first UK sales contract was closed in 2025, a few months later than expected.
- Sales, general and administrative costs in 2024 totaled DKK 5.4 million compared to DKK 4.0 million in 2023. The increase was driven by accelerated UK regulatory and go-to-market advisory services accounting for a DKK 1.5 million increase in expenses.
- Gross profit ended at DKK 2.5 million (2023: Gross profit of DKK 2.4 million).
- Brain+ realized a net loss in 2024 of DKK -12.0 million (2023: DKK -19,1 million), which is at the lowest end of the Company’s expectations of a net loss of DKK 12-15 million as communicated in the Half-year Report for 2024.
- Cash flow from operating and investment activities amounted to DKK -13.4 million in 2024 (2023: DKK -17.2 million), while financing activities contributed with DKK 10.4 million (2023: DKK 13.9 million), resulting in a total cash flow for the year of DKK -3.0 million (2023: DKK -3.3 million).
Due to challenging capital market conditions and a negative development in the market valuation of Brain+’ shares during 2024, cash proceeds to the company from funding activities through the year were lower than projected. The Company’s management therefore started in mid-2024 to work on several funding tracks to finance the Company’s commercially focused operations through 2025 towards a sustainable business. This resulted in the launch of a 50% secured unit rights issue in January 2025, including a bridge loan of DKK 4.8 million received upon launch of the transaction. At the same time, management carried out a restructuring, implementing a leaner operational model and reducing expenditures while allocating more resources to support UK commercialization.
The unit rights issue was carried out in March 2025 and secured Brain+ net proceeds of DKK 6.0 million, including the bridge loan. The unit rights issue also led to the issuance of publicly traded TO 5 warrants, which are exercisable for new shares in June 2025, to provide additional funding.
Outlook for 2025
In 2025, Brain+ is focusing all its resources on building its UK commercial business, growing the awareness and customer engagement of Ayla – your CST Assistant, which is gaining traction across both the public and private dementia care sectors.
The sales pipeline continues to grow and mature, currently representing a total potential contract value of €620,000 (DKK 4.6 million) and the first important UK sale was closed with a private care home group in late March 2025, while an extended and expanded contract was closed with Copenhagen Municipality.
Brain+ management expects its targeted marketing efforts and expanding customer engagement will convert into an accelerated increase in the number of new contract closings through 2025. The objective in the UK is to have Ayla implemented across 300 of the around 10,000 private care homes in the country and to have closed at least one (1) pilot contract with an NHS unit at the end of 2025. In Denmark, existing relationships with customers and new sales opportunities will be nurtured.
The financial expectations for 2025 include
- Cash flow from sales in the range of DKK 3.6-3.8 million
- A net loss of DKK 8.0-9.0 million
- Achieve the foundation for operational break-even by mid-2026, which is in line with previously announced expectations.
Funding and going concern
As sales are starting to materialize, it is management’s assessment that realizing the forecasted level of DKK 3.6-3.8 million in cash flow from sales together with proceeds from the exercise of the TO 5 warrants in June will provide sufficient additional funding of the Company’s operations at least into 2026. The extent of funding from the TO 5 warrant exercise will depend on the exercise price of the warrants, which will be set based on the price of the Company’s shares in the pricing period of 3-17 June 2025 and the number of warrants being exercised into new shares (= the exercise rate). These elements are associated with uncertainty.
In case sufficient funding is not provided, management sees options of supportive debt financing and of additional expense reductions to lower the company’s need for external funding in H2 2025.
Devika Wood, CEO at Brain+: “Our work is built on clinical rigour, technological excellence, and a deep understanding of real-world dementia care needs and the response to Ayla has been overwhelmingly positive.
For the rest of 2025, our commercial focus is clear. We recently closed our first UK Care Home contract – a key business validating milestone, and we are now working to convert more pipeline sales leads into revenue, aiming to reach UK 300 sites by year-end. Our dementia care offering is unique, and with over 10,000 dementia care homes in the UK and a total revenue potential of over €30 million in this segment alone, we are well-positioned to lead. In parallel, we work to integrate our solution into NHS dementia pathways, and our longer-term growth strategy is international expansion and evolution of Ayla into a comprehensive digital care platform.
I bring a steadfast belief in the power of mission-led growth and solid experience in digital health with a deep respect for evidence-based care, and a commitment to building sustainable, scalable people centered solutions. My vision is for Brain+ and Ayla to become the gold standard in dementia care, recognised across Europe and beyond for the positive impact we make on lives. Few challenges are as urgent or as personal as dementia. It touches every generation, every community—and it is only growing. At Brain+, we are building real solutions for real people, grounded in science and empathy. The path ahead is clear, and the need has never been greater. Thank you for standing with us as we lead this vital work forward.”
Kim Baden-Kristensen, former CEO and management advisor at Brain+: “2024 was a decisive year for Brain+ as we moved from being mainly development focused to becoming truly commercial, marking a critical step towards realizing our mission: provide scalable dementia care solutions to help people affected by dementia live better lives – globally.
As a founder, my journey with Brain+ has come to an end, as the current business phase with focus on commercial scaling calls for other leadership skills and competencies than those required to navigate a research and development-oriented organization. It is with utmost support and conviction that I have handed over the CEO role to Devika, who possesses the right combination of leadership skills and optimal commercial and business competencies to successfully execute the commercial strategy set for Brain+ and steer the company towards business growth and global expansion.”
The full Annual Report for 2024 is attached to this announcement. For further information on the company and to download the Annual Report 2024, please visit Brain+' website: www.brain-plus.com
For more information about Brain+, please contact:
Devika Wood, CEO, E-mail: [email protected]
Or,
Hanne Vissing Leth, Phone: +45 53889902, E-mail: [email protected]
Certified Adviser
HC Andersen Capital 2 ApS
Phone: +45 28 74 66 40
E-mail: [email protected]