Brain+ A/S

CSE:BRAINP

Earnings Call Transcript

[Operator]

Good afternoon, and welcome to this Brain+ Webcast. Brain+ will begin with a presentation followed by a Q&A session. During the Q&A, the management team will address pre-submitted questions and questions submitted live during the presentation. With that introduction, I will now hand over the call to Brain+ to begin their presentation. So Brain+, your line is now open.

[Devika Wood, executive]

Great. Thank you, everyone, for being here today. I hope you can hear me properly. Today, you're joined with myself, obviously, CEO of Brain+. We have Hanne, who's our CFO; and we have Fiona, SVP of Partnerships. So we'll take you through an update based on the H-One report and our commercial update. We will take you through an update on the amazing outcomes we've seen and that has received some brilliant press, and we'll go through our commercial pipeline and Hanne will give an update on the finances. And we'll answer your questions at the end.

So just to start, I think it's important to set the foundations and give you an understanding of the monumental amount of work that we have put in place to get us to a position where I can confidently sit here and say we are moving mountains and doing incredible work to get us to a place where we can confidently create an incredible [indiscernible] in the dementia care market. The whole point around H-One has been around laying the foundations, getting validation, credibility in the market and reference customers that are now enabling us to be in a position that we can actually scale.

So commercial traction is the first point. We have shared with you all that we have had 3 U.K. care-home operator contracts signed, really, really incredible logo customers that have enabled us to create a validated proof point that the concept and the market offering that we have come out with actually works. So these 3 customers are Southcare, Majestic Care and Park Homes.

The customers covered 7 sites, and they've now moved to expansion stage, which is 22-plus additional sites. We have really exciting updates that we shared yesterday around Southcare Homes, which has shown that they have now signed a contract to uplift to their 4 sites with a fifth one will be expected very soon. They're just in the middle of creating it, so that it's actually ready for us to go live into.

Clinical validation. So I just want to clarify here, Southcare Homes, even though we positioned it as a pilot, it was a paid pilot. So what that meant was Southcare Homes for us was the first proof point and the first customer to take us on. They trusted in us. They trusted in us as a company, as an organization, as a leadership, as a team and as a product. And they decided to take a chance to see whether we could actually do what we say we do. And this for us was absolutely groundbreaking. So not only did we sign with this customer, they paid for the pilot, which is very rare.

And it showed absolutely measurable improvements in resident well-being, cognition, star satisfaction. It moved Ayla from promise to proof, and that's the evidence that you've now seen in the publications that I hope everyone has seen today go live in the press and enabled us to actually validate our market, validate our offering and give something material to be able to show to other care homes nationwide in our commercial pipeline that we do what we say we do. And that for us is absolutely groundbreaking marketing positioning and market positioning. So prior to entering into the U.K. market, we had absolutely nothing in terms of brand awareness in the U.K. market.

We didn't have a validated customer positioning. We did not have a validated customer market potential. And what we have done since coming into the U.K. market in such a short period of time is pretty remarkable. We have had the NHS Dementia Innovator Accelerator recognition, so we applied to be part of the NHS Clinical Entrepreneurship Accelerator. This is a globally renowned accelerator. It is extremely hard to get into. It's led by Professor Tony Young and their team who accept only a small percentage of accelerator -- of innovators on the accelerator annually.

So for us, not only was this kudos and a tick to say that we are doing something groundbreaking, but this year's Dementia Accelerator was the first of its kind, and we were 1 of 3 accepted onto this accelerator. So the recognition for this is unbelievable. They have partnered with Alzheimer's Society, which for those that know is not only a key customer potential for us, but a key logo and a tick of approval that we are doing something that's not only relevant but can actually change the shape and the face of dementia care in the U.K.

We have seen some extremely amazing media visibility, thought leadership webinars and through all the work we're doing, the way we're positioning ourselves, my personal connections, the personal work that I put into place in the U.K. market, we have brought on some key strategic advisers. Those include Antony Hall, who's the former lead CQC inspector, former Director at HC-One, the largest care home operator in the U.K. and the MD of Park Homes, which was one of our signing contracts; Vishal Shah, who is a lead across the health and care sector, who is the MD of SweetTree, one of the largest, most prominent on care providers in the U.K. and Michelle Tempest, who is a lead psychologist, a doctor and a keen and massive advocate for effective dementia care having written a book and having been a partner at a company called Candesic with the largest amount of connections across the care home sector.

Financial strengthening, so we raised a TO 5 warrant exercise of [5.8 million]. We had our cash runway extended and we did a lean organization post a restructure. So the reason behind that was up until the point of earlier this year, we were operating not very lean. We had quite a few employees in the organization that we needed to basically cut back on prior to us proving out our business model, proving revenue, proving commercial traction and operating in a leaner way so that we could get to a place where we were a healthier company and operating to a breakeven in 2026.

So laying the foundation when we first came in, Fiona and I to launch into the U.K. market, we had to pivot and we had to prove to the market that we had a validated market potential. We did a temporary pivot from the NHS. At the time when we were looking into the NHS market, there was political changes across the NHS infrastructure and the organization, which would have significantly impacted our potential to sell into the NHS. It wasn't just us that was impacted. It was widely seen across the entirety of the health care system, across digital innovators and if we hadn't pivoted, we would have had no business model and no market.

We quickly found a route to market within the care home sector. This has proven to be one of the most valuable decisions we could have made because not only did we find a validated product market fit, but we found an opportunity for Ayla to actually have a home in a place that we can make some real impact and a real pathway to scale and we managed to secure sales within the first few months of going into the care home sector in a market where we were completely unknown, which has enabled us to get the traction where we are today.

We've gone from 0 awareness to credibility. So we've entered U.K. as an unknown brand in a market with limited CST traction and patient and public awareness. We're now positioned as a trusted voice through consistent visibility on LinkedIn, industry webinars and press. And I can't emphasize the power of becoming a trusted voice when we think about commercial traction and selling.

Marketing, we have built this from scratch. We have no marketing team in-house, and we had no spend at the start of the year. We built a compelling brand in-house at no cost, a brand that resonated with people, that people found the human side to it that again reinforces the power of us to sell into organizations that believe in us. We did a whole website redesign. This is about to go live. We managed to deliver this at a cost of GBP 365 versus GBP 12,000 that gets quoted often for website redesign, which is a 97% cost saving. That was done through myself and Fiona, working through an entire website redesign copy, structure, UX and UI that we then translated into a rebranded website with the help of a designer and a developer.

We then engaged [indiscernible] an external agency at the cost of GBP 3,500 a month instead of building on an internal team. This enabled us to deliver 55% monthly savings plus access to wider expertise. We built a new SaaS licensing model, which is a pathway to a full data-driven platform, and we've built a U.K. sales pipeline of GBP 2.7 million in opportunities. All of this work has given us a compelling foundation to success. What we came into product as a CST product. What we now have is a fully scalable, fully opportunistic service-driven market opportunity to embed a SaaS licensing model at scale across the care home sector, generating valuable outcome data that will prove to the market that what we are doing can significantly improve lives of people living with dementia.

So marketing overview. For those that can see on LinkedIn, we are becoming more and more open. We are engaging more. We're becoming more -- seen as leaders with our voice, and [indiscernible] began posting in April this year. And whilst it's not been a full quarter yet, following metrics you can see in front of you, over only 2 months are super encouraging. So we've gone from a total number of posts of 17 [indiscernible] 79. The average total number of new followers has gone up from 193 to 589.

Our impressions has significantly increased from 5,197 to nearly 45,000 impressions. And the average engagement rate has gone from 7.3% to 9.4%. This is above the industry average of 2.8%. This engagement and this impact has a correlation between the engagement and the posts and the dementia post and the thought leadership that I am pushing out on my own LinkedIn, which coincides with an increase and an influx in inbound inquiries, press coverage, media coverage that is helping us to become a recognized brand and a recognized product that can actually change the face of dementia care.

On the advisory powerhouse team that we brought in, we have Michelle Tempest, Vishal Shah and Antony Hall. Michelle Tempest was a personal connection through wealth, which is a community that I have, which is for women across the entire sector of health, whether it's investment, digital health, health care. I connected with her through this community, and she has joined Pro bono as an advisor to support us on our mission. She personally feels very, very excited and passionate about helping us, and she has already opened the doors to a number of different care homes, including opportunities that could give us significant revenue over the next 6 months. Vishal Shah was a connection I brought in personally as well through my LinkedIn and Antony Hall, again, a connection I brought in through my LinkedIn through engaging and becoming a thought leader.

Now the really exciting part that we're really excited to share with you, which I couldn't be more proud of. This just goes to show the phenomenal work that our team has put in day in and night to create the product validation that we needed to scale this up further across the care home sector. You will all have seen the press coverage, hopefully, about Ayla and our 7-week digitally delivered dementia therapy with Southcare Homes as a paid pilot that has improved cognitive outcome measures by nearly 50%.

What this has done has translated the academic research of CST into real-world evidence in a market that enables us to productize and commercialize an evidence-based therapy. Up until this moment, no real-world evidence have been carried out in organizations to show the impact that CST can have on people. The academic research is now bridged into commercial research that enables us to sell this widely in a way that care homes can see not only outcomes validated but the economic validation. The results have been absolutely remarkable.

In 7 weeks across 2 care homes, we saw almost a 55% increase in cognition; resident well-being went from 15% to 50%; resident satisfaction, 9.6 out of 10 rating, 80% would recommend CST; staff confidence, 100% confidence in delivering therapy. The resident feedback has been absolutely unbelievable. I was there in the care home last week. The whole organization was buzzing.

I spoke to residents. I spoke to their family members. I spoke to the care team. Family members were telling me that their loved ones have recognized them for the first time that they have remembered stories they never thought they would remember again. The activities coordinates that are delivering it have said they feel valued, they feel like they are doing something that is worthy, they feel like they are seeing the impact in their residents, they are seeing their residents smile for the first time, they are seeing residents unblock memories that they were never able to speak about, that in itself is groundbreaking.

The care home manager is telling us that they are seeing relationships formed between the care home residents in the lounges outside of the sessions. They're seeing meaningful interactions. They're seeing memories being made, they're seeing moments being created. And this is all from Ayla being deployed in a 7-week period. This is not just data. This is not just outcomes. This is something that we can tangibly see and as someone that has visited every single care home that we have been speaking to, as someone that has worked to this customer from the moment I connected them on LinkedIn to the point that we have now deployed it.

I can handle my heart, say as someone who's been a young [indiscernible], someone who has been a [indiscernible] and someone who's had a care agency, this is absolutely remarkable what we are doing. The next steps in the impact update. so you'll see that we've already had 2 publications in the last few hours. That is incredible. The publication is still being released. [indiscernible] has created an incredible press release and press pack for journalist to take up. So we will expect to see more PR and more press coming out in the next 24 hours.

Press for us is instrumental considering the fact that the headline is highlighting that digital dementia therapy is boosting cognition by nearly 50% in care homes. It's validating and proof in our product, which again is game changing. In terms of Sussex, this press release is really important for us because from a sales perspective, which was -- Fiona can go into. Southcare Homes was positioned in Sussex and Surrey, and it enables us now to do a really, really hyper-focused attack, a sales strategy attack on the borough of Sussex and Surrey based on the positive outcomes from Southcare Homes, the press release, we can now go to the commissioner and we can look at a wider commissioning strategy around the care homes in that borough.

We're doing an economic evaluation. So we're starting to design an economic evaluation methodology to highlight the ROI for care homes nationwide, which will allow us to embed the real value the care homes can see from an economic footprint perspective. We've had inbound sales inquiries in the last couple of hours from my LinkedIn, 16 new care home operator leads have come through. The foundation, so this is the first real-world evidence pacing CST in a home that drives impact and can be delivered and scaled sustainably. This is the first of its kind. We've never seen this before.

And again, regional commissioning, this has now led to high-impact, high-value commissioning conversations with local authorities that commission services across care homes within borrowers. We are actively in conversation with one borrower that services 5,000 care homes [indiscernible] webinar. So the work we're doing is absolutely laying the foundations for success. I'll now hand over to Fiona, who will talk you through the sales pipeline.

[Fiona Costello, executive]

Thanks, Dev. I think it's also just worth reflecting that the care homes isn't by accident and isn't purely opportunistic. It's always with the view of how we support the NHS to more effectively deliver cognitive stimulation therapy in a way that traditional approaches don't work. But thinking about logistical barriers to group-based therapy that forms the basis of CST. So thinking about residents or patients living with dementia, how they get to group therapy in a hospital that might be 1.5 hours away from their home, for example.

So the idea is really about building a network of care homes from which they can access CST in support of NHS pathways. And that's very aligned with the objectives that have been outlined in the 10-year plan, which was released in July and has started. We're starting to see elements of government funding come through now following some of their strategic objectives being written down as you would expect with the change in government that we've seen over the last 12 months.

In terms of what that means to the pipeline, though, so as Dev quite rightly pointed out, it has been a very deliberate strategy. No customer in a new market wants to be the first. So the fact that we've managed to get 3 care home operators with multiple care homes is a testament to the quality of the conversations, but it also enables us to build from these foundations to really start getting down to business in terms of sales mechanics. So you will see that the pipeline at the moment demonstrates significant potential.

So what this means is effectively, we've reached out to a number of care homes over the last 9 months. And their issues have been, can you show us where you've done this before? What were the outcomes, what would the impact and then we might be willing to have a conversation. That is reflected in the prospect to nurture the lead, those care homes that were in stakeholder engagement, the demo, the proposal. You will note that there is a figure aligned with the pipeline in its totality, which is around GBP 2.6 million.

The outlook for the remainder of this financial year is close to GBP 700,000 and at each stage, it's weighted. So we know what the weighted value is. We're probably coming in at this stage at [GBP 200,000] going up until the end of the year. But as you would expect, as I'm sure you're all aware, from a sales perspective, there is movement across pipeline all the time. In addition to customers moving through and prospects moving through these different stages of the pipeline cycle, we're also seeing new customers come in at varying different stages, which means that, that number is constantly flexing.

I think that the growth to date has been constrained by trust, not by capability. It has been constrained somewhat by having a reference site, which is why we place so much emphasis on it and why we've known that us just shouting by Ayla because Ayla is really good, wouldn't be enough in the U.K. market is a sophisticated market from a digital perspective. And therefore, this has been really, really important and is integral to how the pipeline moves in the right direction. Can you go to the next slide, please Dev.

Within that, we have a priority pipeline, as you would expect. So we have 20 customers, our ideal customer profile. At this stage, the ideal customer profile is an operator with 3 to 20 care home sites that will have staff sitting above the operations, the day-to-day operations of the care home, so they have the time and the bandwidth in order to be able to engage in conversations about innovation. I personally have spoken to people who really want to talk to me but have to deal with a fire door or have to deal with someone knocking at the door saying something's happening to a resident. It's really important that we're able to mitigate some of those challenges by being able to talk to head office staff, which is why we're really looking at 3 to 20 care home operators.

You will note from earlier in the year, we talked about some really promising conversations with the much larger operators. But as we predicted, they take a lot longer. We're in constant dialogue with them, a really positive dialogue. They're very supportive of Brain+, they re very supportive of Ayla but they have their own cycles in the same way that the NHS would. And so this is why we're being hyper focused in terms of the type of organization, the type of operator that we're targeting. So that forms the backbone of some very targeted outreach. Those top 20 opportunities equate to 250 care homes, which equates to GBP 375,000.

The initial outreach has already opened up a conversation with one of these providers, opening up an opportunity worth [25,500] and coverage across 17 sites in the East of England. Outside of these target customers, we are also moving forward with a pilot in an organization with coverage across 30 sites. The reason why it's a pilot is because their funding is more from a local authority or municipality type arrangement as opposed to a pure private care arrangement, so their margins will be smaller and therefore, their ability to act needs to be in consultation with these local authorities, which is why we want to progress that pilot because it's really important that we work with this type of customer. It's also really important in the context of our NHS strategies where NHS and local authority are working hand in hand.

Next slide, please Dev. So what that means day-to-day, you will have noted from LinkedIn that we have recruited a new business development manager. And what that means is that we've been able to get much more into the mechanics of the selling, especially in the backdrop of the work that's been done in H-One. So in addition to working the existing pipeline and as I said, undertaking a really hyper targeted approach to the care homes in Sussex. It's worth mentioning again that we have a highly competitive space in the care home sector. It is largely privatized.

When I talk about local authorities, that's a proportion of funding. The vast majority of people living with dementia in the U.K. will contribute some form of cost to their care and therefore, having these mixed models is really important for us. It also means that it's a highly competitive space for care home operators. They don't want to have issues with occupancy. They want to make sure that they're attracting the best, which is why some of this local coverage is really important because if it was national coverage, it wouldn't probably move the dial in terms of that care home down the road really worry because this care home is introduced an amazing intervention and has got proof points around it. That's what we're really trying to tap into, which is why it was very deliberate that it was a localized repress strategy.

That will then manifest in a coordinated campaign locally that will then drive some of those competitive factors. Look at what your neighbors is doing, why aren't you doing it? And we expect that to manifest and translate into deals moving through the pipeline in the coming weeks. At the same time, we're going to be introducing 10 new ICP accounts a week. That's because we recognize that it's time intensive. We don't just want to do a scattergun approach and hope for the best. We know who our ICP are. We know who our key personas are that we're targeting, but it does take a bit of research, it does take time. And so for that reason, we've got a cadence of introducing 10 new ICP accounts, which even if it doesn't translate into this quarter and next quarter, we'll build the foundation of the pipeline moving into next year, which is already sitting at [1.6 million].

Next slide, so in summary, what that means is that we have a dual commercial engine now in terms of the pure mechanics of sales. So we've got the ICP cadence constantly building the profile of our -- an ideal customer profile, thinking about who else can we target, how do we target local connections of those we're already working with? How do we tap into these competitive tensions and how do we then present them with a really compelling offer that's indicative of our understanding of this market.

We also have general lead gen activities, so referrals and social proof, as Dev has said, this is directly manifesting now as a result of the LinkedIn activity, so thinking about that outreach and inbound that's coming via those channels. We've also got the marketing engine, so we're going to be doing more and more and more around marketing and making sure that we continue to do the webinars, we continue to establish ourselves as a trusted voice. We continue to make sure that we become really credible. This is also really important because we want to be part of the discussions around the modern service framework for frailty and dementia that will be taking place from this autumn going up into the beginning of next financial year in the U.K., which starts in April.

Our inclusion in these conversations will be really critical to making sure that, a, we have a voice; and b, we continue to advocate for CST because it hasn't. I think it's fair to say that when only 31% of patients are being offered CST, that it's fair to say that it's been a difficult translation from the academic research to operational delivery. What we now think with Ayla is that we're in a position to really help health care systems overcome some of that. And so we want to be around the table, and we want to be able to make sure that we're using every lever at our disposal to make sure that people are hearing us and that they want to talk to us about how this might inform what a modern service framework looks like in dementia, what bipsychosocial approaches to dementia look like in terms of combining traditionally very medicalized models of care with more approaches that look at more holistic factors such as mental health and well-being, where they do contribute to frailty and where they do contribute to A&E attendance.

And then finally, obviously, customer expansion. So we've always taken the view that we want to target those customers, not single site customers where there's no room to grow, but where there's the opportunity to build that trusting relationship that makes that expansion much easier and makes it easier for care homes to see their route because this is as much about their ability and their appetite to engage with [indiscernible] is about us and our ability to sell it.

And then finally, other leads, which will -- off the back of our Board advisers that Dev has put together and all the various different factors that influence the buying decision. By combining this cadence with a broader lead gen and expansions, we're creating a balanced engine, disciplined short-term wins and sustainable long-term growth. I think I have said previously, and I will say again, all of this has been really deliberate, and it's partly because we really want to create that inbound sales funnel because it is always easier to convert an inbound sales than it is an outbound sales. Any salesperson will tell you that. So it's been a really important part of our strategy, which is why we place so much emphasis on brands and market visibility. I will stop there. I am aware I talk very fast, so I hope that, that was okay, but always happy to pick up any questions around pipeline and management of pipeline.

[Hanne Leth, executive]

Okay. Thank you. And with that, we move to the financial part, and welcome to all of you listening in or good afternoon, I'd say. It's a pleasure to have you with us and a pleasure to be able to sort of give you this update. In terms of financials for the first half, it reflects completely sort of the activities we've been focusing on, as Devika has explained. And in particular, does it also or the numbers reflect the implementation of an organizational restructuring that we undertook in January in order to operate with a leaner model and be able to allocate all resources available to directly sales supportive activities. So the result of that was that we came out with a gross profit of -- a gross profit loss of DKK 1 million compared to a profit of DKK 1 million last year.

This is really very much accounting measures. So still can we see that the revenue component of gross profit is small, and this is exactly as expected because it still completely relies on the small DK sales. So no U.K. revenue is included in the gross profit for the period. We had this effective hold of development activities in January, and that has a consequence in the sense that we have previously in the first half of 2024, taken [2 million] of income based on capitalized development costs. But as we have decided to hold all development activities in the pipeline and allocate it to directly sales supportive tasks and activities, we essentially had no income from capitalized development costs.

And that [2 million] sort of drop is the only reason why we had a [2 million] drop in gross profit. Both recognized income from grants and G&A costs were unchanged compared to the same period last year. So the net result obviously reflects the gross profit. And on top of that, we also have seen staff expenses which have amounted to [4.7 million], and that is a 16% reduction compared to the same period last year. And that is actually the early result of the restructuring implemented in January, where we sort of made a more lean organization to be able to sort of extend our cash flow or our cash runway.

Amortization of activities; activated development costs was essentially the same as last year. And that resulted in an operating result of minus [7.9 million] versus [6.7 million] in the first half of 2024. And again, if we exclude the effect of the [2 million] drop in income from capitalized development cost, which has no cash flow impact whatsoever, it was actually an improvement of CHF 0.8 million compared to the to the same period last year. And the net effect of financial was also much smaller than last year, so it was a minus of DKK 100,000 compared to DKK 400,000 last year.

And last year, we actually had a tax credit component. But again, as we have cut down on development costs, we do not expect to have a tax credit component for 2025. So the cash flow position as of end first half was [4.3 million]. The cash flow from operational and investment activities was [7 million] compared to [7.4 million] in the first half of 2024. The investment cash flow obviously consists of -- yes, sorry, the investment cash flow is the capitalized development cost, which was [2 million] in first half 2024, but has been insignificant again, as I said, this half.

So from financing, where we were successful in actually raising a total net of [11.3 million] through first the bridge loan, which was associated with the unit rights issue in March, April and then the sort of TO 5 warrant, which was issued together with the [Technical Difficulty] and which were -- which was -- others who were lacking behind, exercisable, I think you'd say, in June. So that resulted in a net cash flow of GBP 4.3 million versus GBP 1.6 million in the first half. And as I said, we completed the year with GBP 4.3 million or completed the half year with GBP 4.3 million in cash.

Next slide, please. So our financial forecast and cash runway. So in the full year report for 2024, we projected that we would be able to close sales contracts of worth of DKK 3.6 million, and we retain that forecast. And again, based on the development in the pipeline and all the activities and the established validation that we now have, we definitely expect, as presented by both Devika and Fiona to see an accelerated conversion of the pipeline prospects we have.

So that is the reason why we still expect to be able to close contracts of DKK 3.6 million worth of. So -- but in terms of cash flow, since we can see that the sort of time cycles from closing the contract and to -- we see cash flow come in, they are longer than we projected earlier in the year. And this is the reason behind the sort of -- how can we say, a lowering of our cash flow forecast from previously DKK 3.5 million to DKK 3.7 million to DKK 3 million. In terms of recognized revenue, because the contracts that we are closing, we see will be paid upfront, but as they cover a full year, the recognized revenue from those contracts will extend into 2026. And as a consequence of the sort of, again, the longer cycles from closing the contract and to seeing cash flow, we also see the same impact on revenue, so we've downgraded that from around EUR 1 million to around GBP 0.5 million. And in terms of net loss, also considering the impact of the nondevelopment cost income component, we have -- we now expect a net loss of around

[Audio Gap]

[Devika Wood, executive]

Because not only in those 7 weeks, can they see the outcomes are significantly improved, but they also enable them to have the framework and that blueprint to then deploy it easily across all the other sites. So Majestic Care is yes. Park Homes, we have started the implementation phase. They will be up and running very shortly, and we hope to sign out to full contracts before the end of the year across all the other sites.

Getting a new product out on market is very challenging, perhaps particularly so in health care, what typical conversion rates to expect from now until mid-next year. Please use a metric of your convenience for this. Fi, do you want to answer that question?

[Fiona Costello, executive]

Yes. I tried to touch upon this. So because we know and yes, to the author of the question, you're quite right, that's exactly what happens in health care. We -- I am currently working on a 5x, so where we -- the target figure, we basically need the equivalent of 5x pipeline value. So if it's 1.6, then the total figure as a sales target would be 20% of that. And there is because for all the reasons that you'll be aware of, there is drop-off in pipeline. And we know that, which is why we've weighted every single stage of the pipeline to come up with a view of where we'll land by the end of the year.

And also, it's talking about that flex across different pipeline stages. So for example, if a champion of yours leaves the organization and then puts it at risk in terms of time lines, but we know that there's an opportunity there, it will move back and forth and so on. To make sure that we're not over inflating the pipeline. Both Devika and I have experienced over inflated pipeline. It's not fun. I'm certainly using those experiences and that discipline to make sure that doesn't happen here. But as a key metric, we would expect ultimately 20% of leads to convert into contracts with the view that those leads that happen that 80% would still mature at some stage through the pipeline.

We also know that as it stands right now that there is still a bit of work to do in terms of getting up to that total 5x number, which is why I've highlighted the work we're doing to continue to expand our list of ideal customer profile, how that impacts our reach out strategy with the view that anything else that comes through the pipeline is then upside from targets, so it's a very deliberate approach. It's a conservative approach. It's based on our experiences and it's based on industry benchmarks for healthtech, which is around 20% conversion.

[Devika Wood, executive]

Thank you, Fi. The press release today showed remarkably good first results. Thank you. Do you believe this will have a practical impact also on the execution of planned rollout already this fall? And within a 12-month period, what other factors do you believe will be the key for various groups of care homes when they ultimately decide whether to give Ayla a chance or not?

So yes, it has had a significant impact, as you've seen even in the last few hours, not only on the engagement from LinkedIn, we've had inbound inquiries. We've had press release. We are now also using the outcome report and the press release to engage conversations with warm and hot leads, new leads, which is really exciting. What it is enabling us to do is, like I said, proof it's proof it's validation. One thing to further enhance it, which we've obviously discussed on this webinar is really starting to showcase that economic ROI piece for the care home.

So they can now -- first of all, what you need to show a care home is that is it easy to implement? Is it going to tangibly improve the lives of people living there? Is it cost effective? Is it clinically effective? And is it going to be something that they can scale up widely. The scale up widely obviously comes hand in hand with being able to provide a very, very succinct economic ROI. And I think that's really easy to do, and we're on the ground doing that now. And we're working up what that looks like. We'll share it with you shortly when we have it available.

And in terms of the cost effectiveness versus clinical effectiveness, we have done that. All of our commercial modeling has been around the cost effectiveness and the clinical effectiveness. And so we've priced it competitively. We priced it justifiably. And so I don't think there's any hindrance to us having -- stopping any conversations happening. But again, we will have -- we will have these coming out from Majestic Care and Park Homes. The more outcome reports we have, the better proof we have. And it goes one step further than that. It's, again, like I said at the beginning, we're bridging the gap from the academic research, which was on paper into a real-world evaluation. validation in a care setting, which enables us to show proof of the pudding that this works in a space that has never been done before.

The next question, as a CEO of a thriving company like Brain+, Devika is fully focused on Brain+. Does she perhaps have any side projects? Thank you for that question. So I'll just start with saying I hope from this webinar and through taking you through the traction, you may have changed an opinion or seen that the dedication that I have to this role is the top of my priority. I'm doing everything I possibly can to make this company a success. I've been in the position of CEO since April, and I would like to say the traction for itself. I can't materially change Brain+ history, but I can and I am accelerating its future.

Every LinkedIn post, every conversation, every strategic decision I make has one laser focus, and that is driving Brain+ forward. This isn't theoretical for me and this is not my first rodeo. I have been a young [indiscernible] since I was 10. The story of my grandmother is not just a story, it is marked in me, it's my passion, it's my purpose, and it's driven me to create authentic conversations, meaningful connections and drive commercial conversations. All of the commercial sales that you have seen have started with the narrative around understanding the pain point of these care organizations. You cannot take that away.

There's no amount of sales tactic that will ever be stronger than resonating with those that are on the front line. I built my first company at 26, which is a domiciliary care agency managing dementia patients in the community that generated GBP 2.1 million in year 1. Everything I do is with intention. My network through wealth, women health has brought us in customer conversations and strategic advisers, like I shared with you. My personal mission and Brain+ commercial mission are completely aligned, improving outcomes for people living with dementia.

And in the 5 months that I've been here as CEO, we've established our U.K. presence, launched the enhanced technology SaaS system, secured the significant funding, completely made our operations lean, strapped away and pushed away any costs around resource that we didn't need to be lean in our approach to prove to the market and prove to the investors and prove that we have a sustainable business model, which I believe hasn't been done before. and signed commercial contracts. So that's not distraction. That's focus delivering results. And I don't think the question here is whether I'm dedicated to Brain+. It's how fast we can scale the impact. We're already proving in the market. So hopefully, that answers your question.

[Hanne Leth, executive]

I think maybe if I can add to that as a close management colleague to Devika. I have never met a CEO as committed and as commercially focused as Devika, and that's speaking from the heart. I think Brain+ has with Devika on board the best chances ever of making a great success in the U.K. and beyond. Lack of dedication is nowhere to be seen. And I think we're all human beings. So of course, we have something call it projects or whatever, we also have a life outside the maybe 50, 60 hours put into the job. The question is only how much do we expose those, also on social media because we are all human beings. Lack of commitment and lack of dedication to Brain+ has absolutely no such thing with Devika.

[Devika Wood, executive]

Thank you, Hanne. And just to reiterate, if any shareholder or investor ever wants to have a chat with me, my line is always open. You can always e-mail me, and I will always have a personal call with you to rectify any concerns you may have and speak to you about the work that we're doing. So my line is always open.

[Hanne Leth, executive]

And I think we ve actually gone over time. So I think maybe [indiscernible] unanswered, we can follow up on if you write to us.

[Operator]

That is perfect. We can end the Q&A here. And yes, you have access to all the questions. So if there's any questions you want to answer afterwards, you can do that or else investors can contact you in your Investor Relations contact information. So that finalizes the Q&A and the webcast for today. But before we end, I will just hand over the word for you at Brain+ with your final remarks.

[Devika Wood, executive]

Just thank you all for your time and listening to us today. And rest assured, we are doing everything we possibly can to make this a success. Every single individual working here is committed, is passionate, is talented beyond means. And we aren't going to stop until this is a success. So thank you, and we'll keep you informed of the amazing work that we're going to continue to change the lives of those living with dementia for the better.