Brain+ (BRAINP) H1 2024 earnings summary

Executive summary

• Commercial strategy refocused on the UK, targeting NHS and aged care sectors, with operational break-even in the UK by end 2025 and company-wide break-even by end 2026.

• Achieved key milestones: NHS procurement application, Age UK partnership and usability study, UK branch establishment, and expanded UK commercial team.

• Major product upgrade (CST-Assistant v2.0) completed, with UK medical device certification and first UK sales targeted for Q4 2024.

• Cost reductions implemented to maintain lean operations amid challenging public funding conditions.

• UK market chosen for its size, strategic fit, and alignment with national dementia strategies and funding priorities.

Financial highlights

• H1 2024 gross profit: DKK 1 million, down from DKK 1.6 million in H1 2023, reflecting lower capitalization of development costs and increased UK market access expenses.

• Realized sales: DKK 100,000 in H1 2024, with total closed contracts valued at DKK 250,000; staff expenses reduced to DKK 5.7 million (from DKK 6.2 million).

• Operational loss: DKK 6.7 million, nearly unchanged year-over-year; net loss was DKK 7.1 million (H1 2023: DKK 6.1 million).

• Operational cash outflow improved to DKK 5.4 million (from DKK 8.9 million in H1 2023); cash and equivalents at H1 close: DKK 4.7 million.

• DKK 8.8 million in new cash raised from capital increases in H1 2024.

Outlook and guidance

• 2024 sales expected at DKK 0.25–0.3 million, with UK NHS evaluation contracts in Q4 and Danish sales from existing contracts.

• Full-year net result projected between -DKK 12 million and -DKK 15 million.

• Recurring UK sales expected from H1 2025, with UK operational break-even targeted by end 2025 and company-wide break-even by end 2026.

• Updated sales forecasts and marketing plan to be provided in September after further commercial review.