Brain+ releases preliminary annual financial statements for 2023

Copenhagen, Denmark, 30 April 2024 – Brain+ A/S (Nasdaq First North: BRAINP) 

• Brain+’ preliminary financial results for 2023 shows a gross profit of DKK 2.4 million and a net result of DKK -19.1 million 

• Brain+’ management has maintained a tight cost control to extend the company’s financial runway as much as possible and ensure operational momentum in its early phase of product commercialization 

• On 31 December 2023, the company’s cash and cash equivalents amounted to DKK 3.1 million.  

• In March 2024, Brain+ raised DKK 2.5 million in net proceeds from a 91% exercise of its TO 3 warrants and announced that work is ongoing towards a decision on the next funding step to secure the company’s operations and UK commercialization plan  

• As previously announced, Brain+ will publish its full Annual Report for 2023 on 7 May 2024  

Brain+ A/S (‘Brain+’) announces that its Board of Directors has approved the company’s preliminary financial results for the year ended 31 December 2023. As announced in a Company Announcement on 29 March 2024, Brain+ will publish its full Annual Report for 2023 on 7 May 2024. As this date is more than four months after the close of the company’s accounting year on 31 December 2023, the company is under Nasdaq Copenhagen rules required to issue its preliminary financial statements no later than on 30 April 2024. The preliminary financial statements have not been reviewed by the company's auditor. 

In 2023, Brain+ realized a gross profit of DKK 2.4 million compared to a gross profit of DKK 2.6 million in 2022. While the gross profit for 2023 includes early revenues from sales, the income component mainly comprises recognized revenue from grant-funded projects and income from activated development work for own cost. The reason for gross profit in 2023 being lower than in 2022 is mainly that income from activated development work was lower in 2023 than in the previous year as part of the company’s resources are being prioritized for non-activated go-to-market and commercialization activities.  

Net loss in 2023 amounted to DKK -19.1 million compared to DKK -9.7 million in 2022. The higher accounting loss in 2023 was driven mainly by three elements: 1) interest expenses of DKK 2.2 million related to the company’s unit rights issue in May 2023, 2) increased amortization on development projects as an additional DKK 22.7 million in activated development projects were completed and thus subject for amortization from 2023, and 3) an impairment loss of DKK 4.9 million realized on a subset of activated development projects. About half of the interest expenses, the increased amortization and the impairment write-down did not have any cash-flow impact. 

During 2023, Brain+ has been evaluating the market performance of a v1.0 of the CST-Assistant, its first product for better dementia management, in Denmark. To date, this has led to 6 initial sales contracts with 4 Danish municipalities and provided the company with valuable user experiences and feedback to guide the development of an upgraded version of the product. Most of the company’s activities have however been centered around technical and clinical product development and market access activities with a focus on the development of the CST-Assistant v2.0 to be ready for commercial release in the UK and Denmark in 2024. Through the accounting year, the company’s management has maintained a tight cost control to extend the company’s financial runway as much as possible while ensuring operational momentum in its early phase of product commercialization.  

On 31 December 2023, Brain+’ had cash and cash equivalents of DKK 3.1 million. An additional DKK 2.5 million in net proceeds were raised in March 2024 through a 91% subscription on the company’s warrants of series TO 3, which were issued in connection with its unit rights issue in May 2023. In the announcement of the outcome of the TO 3 warrant exercise, the company informed that work is ongoing towards a decision on the next funding step to secure the company’s operations and commercialization plan for the UK. 

Brain+ expects to convene for the Annual General Meeting to take place on 22 May 2024.  

The preliminary annual financial statements are appended to this release and available on the company’s website: Company releases & financial documents - Brain+ Better brain better life (brain-plus.com)

For more information about Brain+, please contact: 

Kim Baden-Kristensen, CEO 
Phone: +45 31 39 33 17 
E-mail: [email protected]  
www.brain-plus.com 

Certified Adviser 
Keswick Global AG 
Phone: +43 1 740 408 045 
E-mail: [email protected]