Brain+ A/S (BRAINP) Earnings Call Transcript & Summary

Good afternoon, and welcome to this investor presentation and Q&A with Brain+. With us today, we have the management team of Brain+. First, there will be a presentation and, afterwards, a Q&A. There have already been pre-submitted questions on Stokk.io, and the Q&A is still open so that you can submit questions live as well. I will now hand over the mic to Brain+ to start the presentation. Devika, Fiona, Kim and Hanne, your mic is now open.

Thank you.

Thank you. Good afternoon, everyone. Thank you for being here with us today. We're really looking forward to sharing with you this exciting update about the progress that we're having in the U.K., in particular, but we'll also touch a bit on the home market at Denmark and also we'll round off with an update on the financial plan. So I'll hand it over to Devi and Fiona for the market outlook and the update on progress overseas.

Thank you. Amazing. Thank you, Kim, and thank you, everyone, for joining us today. Obviously, for those that aren't able to attend, we can share the webinar link, it will be on our website for those that aren't able to be here today. But yes, myself and Fiona will take you through some of our commercial plans. Some really exciting updates that we have around revenue models, and then Hanne will talk through some of our finances and how we're going to scale over the next year or 2 years. So as everyone knows, we did a rebrand. So we are building the world's first scale dementia care platform. It's really exciting the work that we're doing. And I just wanted to touch base briefly on why CST currently isn't working and how the work that we're doing in building out an amazing product is going to overcome so many barriers that CST is currently facing to scale. So in its current format, the full benefits of Cognitive Simulation Therapy are not reaching patients because the current delivery model is fundamentally not working. There was a national spotlight audit report that carried out over '23, '24 and the findings have been really eye-opening, and we've utilized these findings to really then hone in on a hypertargeted approach to how we could target the NHS. So what we've seen is that, currently, there's limited access with only 31 patients receiving CST treatment despite the fact that this is a nice recommended treatment methodology for dementia and it's actually being indirectly commissioned across 39 of the 42 integrated care boards or ICBs. But what we are seeing is that there is lacking in compliance in the way that it's being delivered. And I will go into a bit more about the lacking compliance in the next slide. What we're also seeing is that there's a high cost per patient to currently deliver CST in its current format. We're seeing that around GBP 654 per person is costing to deliver CST in a noncompliant manner. And something that is really incredibly important, considering the prevalence and the number of dementia patients that we're starting to see come up over the next few years in the instance of how people are being diagnosed is that there is a huge wait time for people that are looking to get treatment on the NHS, and we're looking at a 1-year waiting time. And there are some areas that we're seeing waiting lists of up to 300 people per service. And so there are huge barriers to adoption that we need to overcome. And the only way that we can really do this is by implementing technology and digital solutions. And if we can, [indiscernible] digital solutions, we can really optimize existing resource, reach more patients and really improve that quality of care. So as I mentioned before, we're seeing really quite a large number of trusts that aren't actually reaching or meeting NICE guidelines. And the NICE guidelines stipulate that, in order to see the clinical benefits of CST of the 6-month reduction in cognitive decline, you have to be doing 2 sessions per week over that 7-week period. But what we're seeing is that a large number, 86%, are only doing one session per week. And this noncompliance or this nonconforming to the NICE regulations or the recommended NICE guidelines is actually having an impact on the outcomes of the patient. And we're seeing that this could be due to the fact that there is a high prep time needed for therapists to deliver the session and a really resource-constrained NHS. Like I mentioned before, there is a huge wait time for people to utilize the service. And in its current format delivery, we're seeing a real limitation to the fact that this is only actually concurrent with people doing in-person sessions in its current format of delivery, it's very paper-based. So as I said before, there is a lot of paper-based preparation done. There's no in-between support sessions to support people in between them actually attending the CST therapy groups. And there's no standardization, which is critically important to get those clinical benefits that we need. And so we introduced Ayla, which we've talked about before in our rebrand. So Ayla is our technology-enabled care solution that's solving these challenges. And we're clinically validated. We've done a lot of work to gain our medical device accreditation. We're fully compliant. So we're now compliant with the recommendations for the benefit to be able to see in the U.K. market. And we're actually also on the G Cloud, which means that we are able to procure directly with the NHS. The solution as well has adaptable content, which I'll go into in a bit more detail, and it's really easy to use. So it can overcome all those barriers to implementation. So what we're aiming to do with Ayla is improve efficiency and outcomes across the entire care continuum. So what we want to achieve and our mission is to set the gold standard for CST to be delivered at scale. Our digital dementia platform enables us to train your workforce and create solutions that a CST therapist can spend more time on work that matters and patients are engaged faster. So we've talked about Ayla, your CST assistant, which is a therapist companion, its accessible, customizable and validated activities offer therapists to streamline the way that they deliver CST in a compliant standardized manner. Then we've got Ayla, your virtual CST assistant, which is really democratizing access to CST. We want to bring a virtual setting for patients to enable scale. And what this means is that patients who are unable to attend in-person therapy groups will be able to attend these in a virtual setting, which is really innovative and really overcoming those huge barriers to people being not able to attend the CST groups. And then we've got Ayla Care, and this is our full service delivery. So we can actually train existing staff within a day or we can provide trained CST experts, together with our digital solution. And this is really exciting for us because we've just become an accredited form for delivering -- training CST trainers to be able to deliver CST, and this was done by accreditation with UCL. And so we've really created a data-driven, hyper-targeted customer approach to how we're going to sell our products in. We've got a strategic approach to combining top-down NHS engagement with grassroots professional adoption. And what we want to talk about today is the fact that we've been doing a lot of work and a lot of groundwork on understanding the NHS pipeline, but we've also found an amazing opportunity within the care home sector to really revolutionize the way that CST is currently being delivered in the care home setting. So care homes within the U.K., there are around 16,900 care homes that currently having residents who experience dementia from mild to moderate and actually third are diagnosed dementia patients live in care homes in the U.K. setting. 40% of those care homes currently deliver CST in a very analog, paper-based format. We now know that we have 6,800 immediate target care homes that we can target with Ayla to enable them to scale and standardize their approach to delivering CST to get the clinical benefits that they need. And there's a pass-through option available because within care home settings, there's either residents paying privately or is a subsidized format in the U.K. market. We've done a very, very hyper-targeted outreach approach to developing an amazing sales pipeline for the care home market, and we're seeing a 65% conversion rate in the number of people that are coming back to us in order to have those conversations. We've got the NHS pipeline that we're building out currently, and we've done an incredible amount of work on stakeholder mapping to identify the key buyers, which Fiona will go into in a bit more detail on the next slide. And we've done a really incredible data-driven approach to identify the most ready to purchase. And we've migrated those that are most ready to purchase based on the conversations and the connections that we've been having. And then we've got an amazing direct-to-professional opportunity that we're really going to target to enable us to have a global scale. By becoming an accredited trainer with UCL, we're able to now sit on their website, which is, in due course, going to happen over the next few months. And Ayla, your CST assistant is going to be embedded in how people will be trained in CST, but also the digital tool that we've created, which really enables us to do a partnership approach to selling globally. I'll now hand over to Fi, who can talk a bit more about the best practice NHS pipeline management around the sales opportunities. And this was part of one of the questions that actually came in. So hopefully, this can be a nice response to that question.

Thanks, Dev. Good afternoon, everybody. It's a pleasure to be here today. So as Dev said, one of the things we've been really focusing on is how do we hit the ground running and really deploy best practice approaches to NHS pipeline management, recognizing the potential of delays that come with contracting public sector organization. And so with that, we have decided to ensure that we adopt a staged approach to pipeline management, which will help with forecasting and revenue assumptions that starts with prospecting, awareness raising activities to build awareness of the brand, including a series of webinars and sales white papers. So if you follow us on LinkedIn, you will have seen that we held a webinar last month, and we're about to hold another webinar with a specific focus on care homes. These are really important to building our brand awareness and starting to create that sort of inbound funnel, which in time we will hope we'll be able to mitigate an outbound sales strategy, so we've got a mix of both, which is informing revenue generation activities. Once we have built that set of prospects, they'll then move into leads and then we'll be doing effective management of leads through multichannel outbound sales techniques, [indiscernible] sales and marketing collateral that can help manage customers and reduce that time to sale, constantly iterating those documents to ensure that whether our commonly asked questions that we're able to respond accordingly. There will then be -- and for those of you familiar with public sector contracting and procurement, there's always a period of stakeholder engagement which invariably is with service managers, clinical staff, clinical leads. Our persona mapping has been designed to ensure due regard to those needs and once with clear identification of critical reasons to act, and that's informed how we've decided to approach the NHS market, recognizing which conversations take longer to mature versus those that can be relatively straightforward. We'll then move into the proposal with commercial options that are clearly mapped out that favor upfront payment and multiyear deals. And then finally, contracting. So the G Cloud framework is a really important contracting mechanism. It essentially enables us to offer standardized contracting terms and conditions and a mechanism for immediate contracting by the NHS. We are about to enter into the final quarter for the NHS financial year. Historically, this has always been a time where most organizations, particularly those that contract via G Cloud, see their busiest period in terms of sales. However, for those of you that do follow U.K. news, you'll know that there are political and economic headwinds in the U.K., particularly in relation to the NHS. Our new Health Secretary is talking about a 10-year forward plan, he's talking about from an analog to a digital NHS, so we're seeing some ongoing work that will impact and influence budgeting, I suspect, and also people's appetite to have conversations. That has got the potential to elongate sales cycles, which is why this methodology to pipeline management is so important and making sure that we prioritize those customers who are most likely ready to have a conversation about CST. We're also to mitigate some of those potential delays focused on diversifying revenue streams with a mix of volume-based transactions with care homes versus partnership development that will contribute to long-term sustainability, which will be strengthened by the evolving platform and the product offering. So as we move to virtual CST and options that can be delivered at home, we start to offer an amazing range of options to NHS clients that can overcome some of the existing barriers to delivery, which come with delivering in-person group sessions. So next slide, please, Dev. So to support that data-driven approach to NHS pipeline development, we've really focused on understanding current provision, funding flows and barriers to delivery to enable a targeted approach to NHS customers. And we really want to focus on those trusts who are already delivering CST, but may benefit from tools to support standardization, address service variation and enable workforce optimization. So rather than focusing, you'll see on this graph, this basically -- this graph illustrates the extrapolated rates of CST provision across various service locations in services across England. Their benchmarks against a 65% target. That 65% is the proportion of patients that we think could benefit from CST because they have been diagnosed with mild to moderate dementia. Each point represents a service location showing the estimated proportion of eligible dementia patients that are being offered CST based on audit data. That red dash line is at 65%, indicating the recommended or ideal threshold, locations plotted above the line exceed the benchmark, suggesting those services are more successful in meeting CST needs. And you will see that the green dots represent those that currently deliver CST, but have room to improve their provision and those services are our target in the first tranche of NHS customers, and we will continue to build out. Just to make the point that those sites that appear to be not providing CST at all, it's not because they're not providing CST in that area, but rather those services may not be commission to deliver those types of service interventions or they work in partnership with other agencies who deliver CST, so that might be [ AGK ], it might be Alzheimer's Society. And so it essentially means that we've got a range of partners that we need to engage with. So that data builds on the -- the raw data that underpins the memory assessment services audit, but we also did a range of activities to enhance that data collection even further. So we looked at the days provided by our U.K. partner Quiddity, who you'll remember from earlier in the year. We also submitted a range of freedom of information request to the provider trust to gain clarity on how they're currently funding CST provision, what the waiting times are, what the waiting lists are, and we continue to build out that data source so that we can become experts in how it is currently delivered across the U.K. to really be able to refine and incrementally improve our value proposition as we gain more and more information. This has been further supplemented by public health data. So for example, one of those green dots represents one of the areas of highest prevalence of dementia in the U.K. So what that means in practical terms is we've identified Tier 1 provider of NHS Trust, and we're undergoing targeted outbound strategies to leveraging sales technology platforms to connect, educate and engage and support effective pipeline management, while maximizing efficiency. So what that means is that we're connecting with all the relevant stakeholders across those NHS trust with the view that we will be raising the profile of Brain+, we'll be doing outreach and beginning those conversations and allowing those to take place as we work towards the end of the NHS financial year, which is March 31. Those -- you'll see that we've RAG rated these bullet points. So these bullet points represent different systems across England. And the RAG rate effectively represents those where we've got warm leads, represents those where we've got an intro into the area or -- and those red ones where we don't, but we're working very hard to establish them. So the green sites are those that have got direct links to brain center research. So at the beginning of the year, the government made an allocation of funding to support dementia research is a key priority that's been highlighted in the NHS -- not in the NHS, in the labor manifesto. And that will then enable us to leverage their ongoing work in dementia to help us to refine our value proposition and expand and strengthen our approach to business development with their stakeholders. So that's [indiscernible] Black Country, East London. In addition, Devika and I will be attending [ a Devon ] dementia strategy launch on the 5th of December, next week. The reason why that's important is because it's a signal that the Integrated Care Board and region are focusing really heavily on dementia by virtue of the fact they've got a strategy. And normally, if you've got a strategy, you have funding. So we'll be going down to again build those connections and to build our awareness of key stakeholders who will be able to influence and advocate on behalf of Brain+ to get Ayla into their services so that we can improve access to CST for patients. We also know from the freedom of information requests that the average contract value that's attributed to CST provision in England is about GBP 132,000. So we'll be working with those numbers, not only to maximize the economic value that Ayla provides but also to inform our approach to service model development as we expand our range of offerings, as Dev mentioned earlier. Next slide. And that's it for me.

Thanks, Fiona. So I'll now talk a bit more about numbers, and then I'll hand over to Hanne to talk through the financial model. So we've built our model on a SaaS model, which is on a site network activation strategy. So what that means is I referred at the beginning to the fact that we've got a modularized approach to being able to sell different aspects of the Ayla platform, depending on who you are as an organization and what you may need. So, currently, we've got a SaaS pricing model, which is based on a small, medium and large unit. So depending on whether you're delivering a small, which is 1 to 2 CST groups per year, or that to a large unit, which is 5 plus CST groups per year, those are the numbers that equate to that. These numbers actually are playing into the Ayla, your CST assistant, so this doesn't take into account the full service delivery model, the Ayla Care model, which actually encompasses providing a trained CST expert, training the staff members and then adding on the digital solutions. So these numbers are really conservative but we're working with these in our first instance to support winning over the small enabler contracts that we're looking at before we build out into those really large multiyear contracts where we can become the service provider. But -- and that's in the NHS. When we think about the target market for the care home sector, which is where we're seeing a really short and simple pipeline to diversify our revenue numbers and to ensure that we've got revenue that can come in quickly, we've got those total U.K. care homes of the 16,800 and we are targeting a number of those care homes to close within Q4 over to Q1, Q2 and beyond. The potential ARR when we think about the site activation strategy, which includes, obviously, the 215 NHS trust that we can target and the kind of total U.K. care home sector. We've got a potential ARR of the total addressable market of between EUR 50 million to EUR 75 million. There is a huge long-term potential here than if we were to target 5,000-plus potential sites in the U.K. alone, which if we are targeting the care home sector, it's very easily feasible, we've got an ARR potential by 2032, which could be EUR 75 million if we were to capture the market that we have the potential to in terms of the total addressable market. But thinking about the short term and our targets for 2027, we're looking at 218 active sites, which gives us an annual recurring revenue of EUR 3.8 million. And the graph on the left-hand side is just highlighting the fact that it's an activated site model over the number of years and the ARR potential. These numbers are really conservative. We want to make sure that we are over-delivering and not overpromising. And so we've really tried to take into account a consolidated and conservative approach to selling, but we realize that there is a real great potential here that goes far beyond the numbers that we've kind of really brought into today. We wanted to highlight the fact that we've got 2 really distinct revenue potentials to markets where we're not relying on just a public sector market, but we have a really, really exciting opportunity in the care home market. Hanne, do you want to speak a bit about the financials just so people can get an idea about what we're looking at?

Definitely. Thank you, Devika, and hello, everyone. It's a pleasure. So as Devika has just shown, we are expecting, based on a quite conservative assumption, that we will grow our annual recurring revenue to about EUR 1 million by the end of '25 and up to EUR 3.8 million by the end of '27. And with these numbers, we do expect that the U.K. operations can be breakeven with the annual recurring revenue we expect end '25. And that by end '26, we will have reached a revenue level, which can then, based on our current cost and the current business model, have the full company being operationally breakeven. So what you will see in the table is the different assumptions and the elements going into our expected annual recurring revenues. And as you will see that the Danish market does provide a small element into these numbers. But as we've said often, this market is a very important test market, pilot market, and we have really great value in the very good contact and key opinion leaders we are engaged with in Denmark. But the market is still small, and CST is not considered a therapy to the same extent as it is in the U.K. So, obviously, the main part of our revenues we expect to come from the U.K. And that is, as presented by Devika and Fiona, partly from the NHS market and then partly from the very attractive private care home market where we see a shorter-term potential in the sense that the sales funnel is much shorter in the private care home market and also because there is the ability of passing through costs to extend to the residents and their families. So what we are expecting actually builds on contract with the NHS. We expect that we will be able to close one this year or maybe in the beginning of January. And then that will build to around 18 contracts. And as you will see below, the contract size of -- the average contract size is growing over that expected time frame in the sense that we will be closing contracts first with larger ICBs and then adding potentially more elements into it as well. For the private care home market, we expect to see the first couple of contracts this year and then growing to a number of 200 by '27. And here, we actually have a price per contract on average going down in the sense that a value per site because we do expect that we will be closing contracts with maybe franchises or larger groups because in the U.K., many of the care homes are actually in groups and in larger franchises. So building on the expected sort of growth number of care homes delivering CST, as we said, about 40% of the 16,800 care homes currently are delivering CST. We do expect this number to increase. So what we believe here is that our assumptions in terms of the annual recurring revenue we can attain in '27 is based on a relatively conservative expectations in terms of the number of contracts we can close. So what we also actually do believe is that with the current sort of valuation of around between 6 and 8x annual recurring revenue that there's a relatively large value potential in these numbers we expect in terms of revenue. Thank you.

Thank you so much. And then we want to give a commercial status and outlook in Denmark. So Hanne, would you like to talk through some of the exciting stuff that we're seeing in the Danish market?

Definitely. Yes, in Denmark, as said, it is an incubator market. It's the market where we are testing our products and actively getting a lot of user feedback of important value. So we have 5 out of the 98 Danish municipalities under introductory sales contracts, and that includes the largest Danish municipality of Copenhagen. So all that is public information. Two of those contracts are coming to term by the end of this year, 2 contracts are coming to term in Q1 and one later in '25. So what we can share is that we have advanced dialogues with 2 municipalities on updated contract extensions and that actually provides for potentially closing multiyear contracts based on the first introductory contracts. And we will, of course, update the market as we have news to share. We also have 6 municipalities engaged and being educated in using Ayla, your CST assistant, as part of the [indiscernible] project that we are running on implementation and scaling of CST in Denmark. And we have, on top of that dialogue, ongoing with a handful of other Danish municipalities regarding introductory contracts.

I think it's worth adding here that the ongoing advanced dialogues are not only for multiyear contracts, but it's also moving from an introductory sales contract, which has covered maybe one or a few sites to multiple sites or entire municipality. So we're also talking about contract sizes amounts that are significantly larger than our introductory sales contracts.

Often, what we see with introductory sales contracts is that a municipality is saying, well, we would like to have access to using your Ayla CST assistant in 1 or 2 care homes providing CST groups today. And based on that sort of trial period or introductory contract, they can then decide whether to extend the use into all the sites, all the care homes in their municipality offering CST. And the potential of the contract is then dependent on to what extent does the municipality actually offer CST in more sites because that's also a difference across municipalities.

Thank you. And also just to add briefly that indicators of really good products and sales is often around renewals, and having renewals and uplifts and contracts being renewed is a really exciting and also an affirmation to suggest that we are doing something brilliant and that the product is serving a great purpose. So from that perspective, it's really exciting that we're having these conversations. And as a clear indicator that we're doing something really valuable and generating revenue at the same time for them to be kind of renewing those contracts. So the final bit that we wanted to talk through is our key validating milestones and, obviously, the investment strategy. So we've done the last 2 months of launching Ayla into the U.K. has been incredibly exciting. It's been fast paced, it's not something to forget that we are launching into a new market where we have no brand awareness. And so Fiona and I have made incredible headway in just 8 weeks to get the ground running, amazing conversations going, some really exciting work happening in the care home sector and validating conversations and leads within the NHS. So within 8 weeks, we've managed to achieve all of that, including a huge rebrand, we've productized and created a value proposition for the products that we're developing. There is incredible excitement about what we can create in the next 6, 12 months. So in, obviously, Q4, with the U.K. launch with Ayla your CST assistant, medical device certified. And then since then, we've had an incredible conversation with a key U.K. care home MD, who is joining us, and he will be coming in as an advisory appointment, looking to join the Board, which is a really good indicator that we have an incredible value proposition opportunity within the care home sector. It's a really amazing signal for us and will open up many doors even in Q4 and then beyond. As Hanne just talked to, we've done some brilliant new DK sales contracts plus renewal of existing contracts with uplift and we are still really positive to close an initial sale with the private care home and obviously build that NHS pipeline to close Q1 and beyond. We're continuing to do a pipeline building based on that hyper-targeted approach that Fiona and I have talked to, and we feel like the market is in a really amazing position now, especially with lots of dementia strategies and push from government and the NHS to drive innovation. And so we're really excited about the opportunities that, that brings, including an accelerator that we're applying to join, which is part of the Alzheimer's society, which will be equity-free money, but also an opportunity for us to get access directly to potential partners and clients. And then what we've obviously mentioned before at the beginning, which is around the CST education integration into the Ayla platform. This for us is hugely game-changing. It just goes to a firm and point us into that direction they're really becoming that gold standard for CST delivery, not just in the U.K. but globally for having that nod for us to be a CST educator from UCL, which enables us to then drive forward on that full service delivery model, which enables us to be the go-to provider, not just in the U.K. but globally. So this is obviously an amazing validator for things that we're going to achieve. As Hanne, maybe you want to talk to it, but I can briefly talk about it. So we're doing the bridge round now in Q4. We will then look to do a growth funding round in Q2 2025. And then we are on track should we achieve all of our milestones to be breakeven 2026 end year. So it's a really exciting time to join us with the renewed and really hyper-targeted and validated commercial approach into the U.K. market. And not to mention that over the next year as well, we won't just be stopping at the U.K. market. We're going to start thinking about new territories and growing into new areas because there is so much potential for what we're doing, not just here, but globally. So Hanne, I don't know if you want to add anything on to the fund or we can open up to questions now.

I think what is worthwhile adding is that this sort of funding perspectives are really completely in line with what we have announced to the market earlier. So we did say when we closed the Q4 warrant exercise round that we had money into Q1 of '25. So obviously, we are now looking to raise funds. And what we are also very keen to actually -- how can we say avoid is a massive dilution of our shareholders. So considering that we do believe that the milestones we see in front of us for the coming quarters will provide validation of the -- and proof of business and, hopefully, also be reflected in a higher share price, we will push as long as we can, a sort of last expected funding round of -- which is larger and expecting to do that in Q2 in order to raise enough funds to reach breakeven by the end of 2026.

Perfect. And that opens up for the Q&A session. Let's jump directly into the questions. And first of all, the question here is, can you describe the sales process in U.K. from first contact to signing and payment? The U.K. public health sector have the same fixed dates for signing and payments as we have in Denmark?

I'll just go back to the slide that hopefully answers that question. So Fi, do you want to briefly talk to it again?

Yes. So for those of you familiar with NHS or in the public sector procurement, you know that they are longer than average sales cycles. However, I am pleased to say that we don't have fixed dates in the U.K. for contract signature. We are, of course, dictated by holidays. That's why Q3 is always a shorter quarter because of Christmas and New Year. But the vast majority of the activity tends to happen between January and April 24, which is why some of the awareness raising activities we've been doing this quarter will be really important to next quarter. I think in terms of the overall size, we are targeting 100 days, which is just over 3 months from experience, that's not unreasonable. I think any shorter than that, you probably have questions any longer than that. And we haven't taken as many steps as we could to accelerate these different stages, as I described earlier. But we're constantly looking to and iterating and thinking about different things that could slow down contracting and making sure that we have responses there. And that's through ongoing dialogue with customers, but also internal conversations about continually improving our sales processes.

And just for clarity, when you say Q3 leading up to Christmas, that's because the NHS year starts on the 1st of April?

Yes, exactly that.

And the next question. How are the financial health of NHS going to affect Brain+'s ability to make contracts with NHS?

Do you want me to take this one, Dev?

Yes, and then I'll interject. Start and I'll come in.

So I think it's fair to say that this financial year, so 2024, '25 has been one of the more challenging years for those of us who have been in and around the NHS for a long time. It's probably been the most challenging year. However, there are significant policy indicators from the government, from treasury, from the Department of Health from NHS England that says analog to digital is not an option, it's a necessity. And therefore, there is funding that's being released for digital to support that goal. We also have a significant issue with white force capacity. So any product that can support capacity building in the way that Brain+ can will enable a greater case for investment than those that are just purely adding costs and aren't actually responding to some of the systemic issues that are influencing the NHS and influencing budgets today. And the final thing that I just want to add is that dementia is a core priority, and it has been for a number of years. It was mentioned directly in the labor manifesto prior to the election. There was funding allocation at the beginning of the year for research and innovation. We have quite significant third sector bodies that are very influential in this space and continue to push for greater care for those with dementia and that's borne out in local strategies as we mentioned earlier.

And I'll just add in here as well. It's -- I mean, Fi attested to the fact that it's the NHS and the health system itself, it's never going to be a dead easy win strategy. It takes time to build trust and build a solution that really changes the way that services are delivered to really improve efficiencies and reduce how we're seeing this huge resource burden. What we've done to kind of overcome a lot of those pieces of work is about thinking about innovating within our CST opportunities, and a lot of that has to do with the fact that we've worked to building out the virtual solution that is enabling us to not only just sold for the problem directly, which is around solidifying the way CST is being delivered, standardizing, being compliant, but also providing a solution that enables the NHS to deal with the issue they're seeing at hand, which is the increase in the number of patients that are presenting with dementia, the increase in the budget they're having to allocate to dementia patients and an inability to find treatment methodologies. By bringing in our virtual CST solution, which is part of our full package, it will enable us to really scale up CST in a way that the NHS is currently not being able to do by being able to provide a solution for those that are unable to attend in person CST groups. And so by breaking down yet another barrier for people being able to access dementia treatments means that the conversations that we're having are so much more lucrative, so much more useful and so much more impactful. And that just lends itself to the kind of narrative that we're seeing, which is that real push for better dementia treatment and better dementia care within the NHS.

And then moving on to the next question around Denmark. How are the sales going in Denmark?

I think we've answered that maybe on the slide, hopefully, we have. But this was kind of what Hanne had spoken to. But just to kind of talk to it, Denmark has been an amazing opportunity for us. We see it as an incubator market, where it really validated, proved out the product that we wanted to build. It enabled us to be a location where we could build out the R&D focus to give us a product that we could then launch into the U.K. market. The sales are actually going well, as we've said, that we're seeing renewals in our contracts. We're seeing multiyear contracts that are potentially coming through. And that in itself proves that this is a product that's being utilized and there's a benefit in the market. What we really wanted to do, though, is find a market that we could really rescale, improve revenue in and start to build out the commercial validation and the numbers that we believe that we can achieve. We know that we can do that in the U.K., and we know that we can do it in other markets. And so we want to be really hyperfocused and hypertargeted in our approach to putting the limited resource that we have, being really lean in our operating and making sure that what we are doing in terms of the U.K. market is where we are putting our attention and our resources so that we get the output that we need and we get the numbers that we need. So despite the fact that we're seeing great sales in the Danish market in terms of the fact that we're seeing it now starting to bear fruit, we are really hyperaware of the fact that we want to focus on a market where we can really drive millions in revenues, and that we see in the U.K. market. So that's why we're now focusing and we want to most of our attention on to the U.K. market.

It might be worth mentioning here that actually this sales pipeline in Denmark, Danish market in these results, we're seeing is something that is happening. And as Devika very well mentioned, we're running an extremely lean operation already. So this is with less than half a business development resource and this has actually been created these results and imagine what we can do in the U.K. in a much larger market.

And if we stay in Denmark, there's another question here. Regarding sales in Denmark, like with Himalayan, is it trial versions that can be upgraded, scaled up to a larger contract? Or is it a full contract, for example, for [indiscernible]?

If okay, I can answer that. So the [ Vestimolan ] contract is the first contract with that municipality. And normally, the first contract is an introductory contract. So for [ Vestimolan ], it's also getting access to the current product for a limited use and for 1 to 2 sites. So essentially, after that contract and the introductory contracts are normally for a year. And after that, it's then up to the municipality of course, in negotiations with Brain+ to decide whether they will extend and whether they will scale up. And for each municipality, as I said earlier, it really depends on the scale of CST they are delivering. Some municipalities are only delivering CST in one site or at one site, and others are delivering like Copenhagen, for example, are offering CST in multiple sites across the municipality.

Then we move a bit on to the U.K. market. How is the competition looking in the U.K.? Is there any similar products way of working? And if yes, how far are they in the process if you have any guesses for this, please?

So in terms of competitors, we're actually first to market in our solution, in our approach. There have been a few organizations that have tried to create apps to streamline the way that CST is being delivered, and they've not really gone very far. Their approach to developing the work based on the years of R&D and the research and the real kind of validated science behind what we've done and brought to life. So in terms of direct competitors and anything else in the market for us to compete with, no, in the U.K. market, we don't. The beauty about what we've created as well in terms of a first market mover is that we have created something that is going to be able to bring efficiency gains. It's going to bring compliance the way it's currently being delivered. And by the fact that we have buy-in from the CST KOLs and experts, [ Amy Spector ] from UCL, who was the coinventor of CST, plus the fact that we have buy-in from UCL in terms of being a kind of accredited trainer that in itself speaks multiple like -- benefits and positivity to the fact that we can continue to have this first-to-market mover over the next few years. I don't believe fundamentally that somebody could come in and build what we've built in terms of the amount of years and validation and expertise that we brought to the product. And because we are now in the market and we're having those conversations, I think we have a really, really amazing advantage to try kind of become a gold standard for CST delivery. Fi, do you want to add something?

I was just going to say that I think at the moment, actually, our biggest competitor is existing approaches and analog approaches, which, as we said a couple of times, is inconsistent with policy direction. I don't think that from a longevity perspective, we can rely on paper-based processes by a workforce that's facing such significant challenges. So we're not only actively addressing from a policy direction perspective, but also future-proofing how services can continue to deliver to match prevalence. If I give you an example, there's a current site in the East of England and their current approach is hitting about 2.5% of prevalence. That's a really long way to go. And digital is the only way to enable any kind of scale. And even for those that use analog as they're existing, they can absolutely see the benefit, and we can attest to this through conversations that we've had. They can see the benefit of the product developments that we've got on the road map as well, which together creates an incredibly compelling value proposition and solution for the U.K. market that enables us to really not only manage competitive factors, which is existing processes today, but also future-proof tomorrow and into the years ahead.

And then the same person has another, a bit longer question, so I would divide it into 2 parts here. First question is, would it be possible to update the stockholders of cash burn? Will there be any funding needs in 2025? And are they depending on any specific factors?

I think we already addressed that question, partly, with the last slide. But obviously, in terms of cash needs, we do expect that we will have increasing cash revenue coming, starting in particular towards the end of the year and then through '26. We will obviously need more funding also from the equity market. And the bridge around that we are doing in this quarter is in the form of a directed issue and loan. That's the intention. So that we will not dilute as earlier said. And then we expect that there will be one bigger round in Q2 and, obviously, that round will then take the company to the expected revenue or the breakeven by end '26. But as we grow and the more we get into the U.K. market and also, as I said, our revenue projections are actually building on the existing products, so the Ayla, your CST assistant, not taking into consideration the full-scale clinical service model or any additional products. So we can also potentially see that we will be able to provide breakeven earlier than expected. But obviously, there's a lot of uncertainties. So, yes.

And then there's a question for the U.K. team. Can you rate your optimism for 2025 on a scale from 1 to 10, where 10 is most optimistic?

Who wants to go first? I can go first. So I'm going to go with a 9 because well, first of all, I think in order to break into a market, you have to have a formidable team, and I feel like we've got the most amazing team working on this, not only from a U.K. perspective, I can attest to Fiona being one of the most smartest commercial leaders I have ever worked with, both here and previous roles, but also the team that supports us back in Denmark. So that would be my first factor that relates to my 9. I'd say the market forces and the fact that we are that first mover, so we have a really exciting opportunity to bring innovation to something that is ripe for innovation that needs to see a difference in the way it's being delivered because of the number of pressures that we're seeing and the increase in incidence that we're seeing in terms of dementia patients coming in and needing to have the treatment that they deserve. And CST being, I believe, still to this day, best kept secret. And then I think the third factor is the fact that we've diversified our revenue. So we're not just really focusing here on the public sector, where like we've said many times, it's longer sales cycles, yes. Once you've got them, you have an amazing opportunity to drive revenues and multiyear contracts, but I always believe, as a commercial leader, that you need to diversify revenues. And we've done that by identifying the care home sector, by bringing in a leader who's going to support us in Brain+ who is from that market, to support us in that endeavor and from doing our initial validation across the care home market and the NHS market, just in the last 8 weeks, we've launched into the U.K., which is a really small amount of time. We have done some incredible work. We've had some amazing feedback and we are really, really positive on being able to drive the revenue numbers and the sales that we have promised and forecasted. Fiona, if you go lower than me on this number, then I feel like we're no longer friends.

I had 8 in my mind because -- but I would say that if you'd asked me a year ago, that question working for an organization that works with lots of health tech developers, it was looking pretty bleak, it was a really challenging financial year. We, as a system, we are still recovering from COVID. We've had a very tumultuous time, as I'm sure you're aware from a U.K. political perspective. However, I think that the signals from government are probably the strongest they've been. And I would say, probably since 2018, 2019, and that gives me great cause for optimism. I also think that the project is really addressing a fundamental problem that the U.K. really has to think about addressing. We are an aging population. We don't really have the luxury of thinking this is a nice to have because it's not, it's a must-have. And I think that when you look at the quality of the product and what it's offering, but also the product road map, which really does unlock CST at scale. It will be difficult, I think, to find organizations that don't understand in some way, shape or form the value of Brain+ and the value of Ayla in addressing their priorities. And that goes right across the different revenue markets that we've discussed today. And so whilst I'm always a cautious optimist and I worked in clinical governance, which makes me always quite risk averse, and I've worked in around health for a really long time so never say never, I am genuinely the most optimistic I've been in a long time when it comes to digital and when it comes to health.

Perfect. And that was actually all the questions so that finalizes the Q&A. But before we end the webcast, I will just hand over the word for you if you have any final remarks to end with.

I think we just want to say thank you to everybody for spending the time today. I think it's -- the team's work here just shows how quickly and rapidly we can progress, how detailed and well supported commercial plan we have. Data-driven, hyper-focused, but also being able to work across several customer segments, meaning that we're not dependent on, for example, somewhat longer sales sites in the NHS that can actually contract fast into the care home market where CST is already being delivered very broadly, but in an analog fashion. So we really have a chance to come in here and scale this business fast. So thank you so much for taking the time today, and we'll, of course, be coming up with more and more news shortly.