Brain Scientific Issues Shareholder Letter and Corporate Update
New CEO foresees revenue growth from commercial medical product launches in $4 billion addressable market
NEW YORK, Jan. 31, 2022 (GLOBE NEWSWIRE) -- via InvestorWire -- Brain Scientific Inc. (OTCQB: BRSF), a leader in the medical technology market, today issues the following letter to shareholders from Chairman and Chief Executive Officer Hassan Kotob.
On Oct. 1, 2021, Brain Scientific and Piezo Motion completed their merger and appointed me chairman and CEO of the combined entity. The merger resulted in the creation of a medtech company with two cutting-edge product lines: neurology devices and precision motion. Today, we are on the leading edge in the ultra-efficient, compact precision motors market, which we believe will help drive the next generation of medical devices. With two 510(k) FDA-cleared EEG products, we are also poised to disrupt the neurology market.
I’ve always been passionate about leveraging great teams and disruptive technologies. Over the past 25 years, I have founded and led several technology and medical companies, taking them from ideation to commercialization. I have built global operations, led M&A strategies and rapidly grown revenues. I have also served on the board of directors of companies in Europe, Asia and the Americas.
Today, all our efforts are centered around two main objectives: the shortest path to revenue and uplisting the company to a senior exchange in the future. We are executing an aggressive go-to-market strategy that includes an active channel program. Recently, we signed over 15 new partners for the motion products and a master distribution agent for the neurology products. The master agent will give us access to potentially thousands of medical device distributors around the world.
Because our NeuroCaps and NeuroEEGs are designed for telemedicine and remote monitoring, we believe they are ideal for nursing homes, ambulatory services and other arenas where EEG testing could be critical. This would expand access to the estimated 1.4 million nursing home patients in the U.S., per a Centers for Medicare & Medicaid Services estimate, and, according to the Kaiser Family Foundation, over 3 million U.S. patient ambulance trips per year.
Our addressable market is estimated to grow to $4 billion worldwide by 2025.
The industry trends in telemedicine and personalized health data continue to fuel growth for EEG devices. We believe that as cardiology has been the recipient of significant focus and investment, so, too, will neurology as the global population ages and a concurrence of factors increases the prevalence of neurological conditions.
The need for increased precision and efficiency from product manufacturers, we believe, will drive demand for our piezoelectric motors. Our motors improve precision and weight at a similar cost to precision DC and stepper motors, making them ideal for miniaturized devices and microscale motion. Their zero-energy consumption in hold position can save significant percentages of energy in many applications, increasing efficiency and improving battery life.
Our flagship neurology products are the NeuroCap and NeuroEEG. The NeuroCap is a medically reimbursable, disposable EEG headset designed to eliminate time-consuming tasks for healthcare providers and increase access to neurology care. The NeuroEEG is an EEG amplifier the size of a smartphone that connects wirelessly to a computer, allowing freedom of movement for the patient and enabling telemedicine applications for neurologists.
Currently, the shortage of EEG testing equipment and technicians is worsening. Competitor technology usually requires a specialized technician. These neurology technicians are more expensive and in shorter supply than general technicians, limiting the ability of many facilities to perform EEGs. Most hospitals do not even staff these technicians 24/7, not even in the ER. Further, competitor technology typically requires individually connecting 24 wires with electrodes while keeping the patient stuck to a bulky EEG device. This can be time-consuming and uncomfortable for the patients.
Our neurology products are already being used clinically by the Department of Veterans Affairs, regional hospitals and private neurologists. In collaboration with our partners, we are actively pursuing opportunities with specialized clinics, telemedicine providers, laboratories, nursing homes and athletic departments.
Our neurology products will save time and increase patient comfort for routine EEGs. We also believe they are a must-have product for emergency rooms. ER visits require quick, efficient diagnoses of patient conditions. We believe our products are better than existing solutions because they 1) can upload EEG data to the cloud for remote neurologists to scan, 2) will be performed quickly thanks to our easily fitted caps with pre-gelled electrodes, and 3) are disposable caps that eliminate the need to clean reusable EEG equipment between patients. This is a massive opportunity that we plan to pursue aggressively. As the CDC reports, in the U.S. alone there are over 2.7 million annual emergency department visits for mental and neurodevelopmental conditions and 1.3 million for head injuries.
The brain monitoring industry is focused on many different conditions, all requiring EEG scans to properly diagnose and monitor. Our solution makes capturing long-term brain activities quicker, more comfortable and more accessible. We provide researchers access to more data as they race for a diagnosis and cure.
For example, there are 50 million people with dementia. That figure is expected to grow sharply over the next few years as the population ages. For epilepsy patients, conducting an EEG test quickly to determine if another seizure is likely may be the difference between life and death.
There are millions of patients who need EEG tests. Currently, these tests are only consistently available in large hospitals. The ease of use and remote monitoring capabilities of our products expand testing to more regional facilities.
Precision Motion Products
Our motors are unique, and we believe they are perfectly positioned for the medical device space. They are simple, fast, precise, tiny and powerful. The smallest motors we have commercially available are approximately the size of a thumbnail.
They are up to 1,000 times more precise and 100 times faster to respond than DC competitors. A typical DC rotary motor makes 30,000 steps in each turn. In comparison, our rotary motor makes over 600,000 steps. This drives a smoother and more precise motion, which can be critical in lifesaving devices. To give another example, in a partner test for valve applications, our products were up to 90% more energy efficient than traditional solutions because our motors require zero energy to hold position. They also weigh 50%-75% less than competitors. We believe our motors simply offer more value at comparable prices.
Piezo technology is not new. The advantages of piezo technology are proven; however, the technology has always been prohibitively expensive. By creating a simpler motor, we are expanding our addressable market to compete directly with precision DC technology.
We believe we can displace the current DC motors in the market with a motor that outperforms them at a similar cost. We purposefully designed our motors for scale and mass production. They fill a void in the market where there is demand for better performance and a more energy-efficient solution for products.
Precision Motion Opportunity
Currently, our motors are being tested in several medtech applications, such as high-end microscopes and surgical robots. To exemplify the benefits of our motors, we’ve created a micro-dosing pump that may outperform many existing syringe and infusion pumps. This micro-dosing pump uses our rotary motor, showcasing the unique advantages of our compact design and high precision. It can move liquid at one-billionth of a liter, which creates a drop smaller than a human hair.
Other prime use cases are highlighted below:
MICROSCOPE STAGES – Today, researchers need automated high-resolution images for tissue sampling. Our comparative analysis of the speed and precision of our piezoelectric motor versus conventional DC or stepper motors shows that a piezo motor can significantly increase the number of images taken while reducing the time necessary to sample.
ROBOTIC SURGERY – Surgery today is relying more and more on robotic devices. From precise brain incisions to being able to perform a biopsy of just a few cells, our motors may bring the precision needed for products today and into the future.
INFUSION MRI PUMPS – MRI systems cannot tolerate electromagnetic interference. Many high-precision piezoelectric motors require metallic parts, while DC motors create electromagnetic fields in their drive mechanisms. Our motors may be produced using only thermoplastics, ceramics and alloys to reduce or eliminate electromagnetic interference for use in devices like MRI scanners or surgical robots used alongside MRI scanning.
WEARABLE DISPENSERS – Wearable drug dispensers are a growing solution for treating chronic illnesses. These devices require lightweight, precise and energy-efficient motors available at an affordable cost.
SYRINGE PUMPS – Already, many medications are being enabled for syringe and infusion delivery via a smooth, continuous flow of medication. The variable speeds and further precision offered by our motors may allow pumps to use higher concentrations and reduce refills, patient disruption and size of the pumps.
We have over 25 patents, seven trade secrets and two FDA-cleared products. Our current products only leverage a handful of our existing patents, giving us a large store of underleveraged IP to use. Furthermore, our scientists’ R&D efforts continue to create significant intellectual property, erecting more barriers for our competition.
Thank you for your continued support.
About Brain Scientific
Brain Scientific (brainscientific.com) is a medical technology company with multiple patents and FDA-cleared products. Brain Scientific is committed to developing next-gen solutions that advance the future of neurodiagnostic and OEM medical devices. Brain Scientific has two product lines covering neurology and precision motion. The NeuroCap and NeuroEEG are smart neurological diagnostic devices that simplify administration, shorten scan time and cut costs. The Piezo Motion product line consists of ultra-efficient compact precision motors that will drive the next generation of medical devices. To learn more about Brain Scientific's corporate strategy, products or investor relations, please visit brainscientific.com.
About Piezo Motion
Piezo Motion (piezomotion.com) is a leader in piezo motor technology with multimillion-dollar investments in research and development of affordable piezoelectric motors to meet and exceed the needs of today's global markets. The company is committed to the development of innovative piezoelectric technology and motion products that enhance their functionality in a multitude of applications. We work with startups, OEMs, research institutions and industrial companies from around the world, empowering the visionaries behind their products.
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements. Forward-looking statements may include, without limitation, statements regarding (i) the plans and objectives of management for future operations, including plans or objectives relating to the design, development and commercialization of EEG products and services and piezo motor technology; (ii) a projection of income (including income/loss), earnings (including earnings/loss) per share, capital expenditures, dividends, capital structure or other financial items; (iii) the company's future financial performance; (iv) the successful integration of Piezo Motion with and into Brain Scientific; and (v) the assumptions underlying or relating to any statement described in points (i), (ii), (iii) or (iv) above. Such forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon the company's current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, over many of which the company has no control. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the inaccuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation, the company's inability to obtain additional financing; the significant length of time and resources associated with the development of products and related insufficient cash flows and resulting illiquidity; the company's inability to expand its business; significant government regulation of medical devices and the healthcare industry; lack of product diversification; volatility in the price of the company's raw materials; and the failure to implement the company's business plans or strategies. Some of these and other factors are identified and described in more detail in the company's filings with the SEC. The company does not undertake to update these forward-looking statements.
Released January 31, 2022