Brain Scientific Files Its Annual Report on Form 10-K Announcing 2020 Results

Rhea-AI Summary

Brain Scientific (OTCQB: BRSF) filed its Annual Report for the fiscal year ending December 31, 2020, reporting revenue growth to $544,275, up from $489,202 in 2019. The company is enhancing its NeuroCap and NeuroEEG products, with plans to scale production in the U.S. and expand to the EU. Significant R&D investment of $275,926 marks a 266% increase from the previous year. Total assets grew to $440,218, while total liabilities surged to $5,237,042 primarily due to increased derivative liabilities and convertible notes. The company aims for new product introductions and patent filings in the upcoming 24 months.

Positive

• Revenue increased to $544,275 in 2020, a rise from $489,202 in 2019.
• R&D investment surged to $275,926, reflecting a 266% increase from 2019.
• Plans to scale production in the U.S. and expand into the EU market.
• Launch of NeuroCap™ for pediatric use in the U.S. announced.
• Establishment of subsidiaries in Russia and Poland for distribution.

Negative

• Total liabilities increased significantly to $5,237,042, from $1,186,534 in 2019.
• 80% of the increase in liabilities stemmed from $2.6 million in derivative liabilities and $694,000 in convertible notes payable.

NEW YORK, April 19, 2021 (GLOBE NEWSWIRE) -- via InvestorWire – Brain Scientific Inc. (OTCQB: BRSF) (the “Company” or “Brain Scientific”), a neurology-focused medical device and software company, filed its Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2020, with the U.S. Securities and Exchange Commission (SEC). Brain Scientific is a neurodiagnostic and predictive technology platform company seeking to provide a centralized platform for data acquisition and analysis of EEG data that combines innovative medical device technologies with cloud-based telehealth services.

The Company focuses primarily on establishing diagnostic protocols to identify pathological risk factors involving the brain and driving novel insights into cognitive health that support early treatment of neurological disorders. Brain Scientific’s key products, NeuroCap, a pre-gelled disposable EEG headset, and NeuroEEG, a 16-channel, portable, wireless, miniature EEG amplifier, were cleared for marketing by the U.S. Food and Drug Administration (FDA) in 2018.

2020 Highlights

• The Company is bringing the production of NeuroCaps to the U.S. during 2021 and has already evaluated several possible manufacturers.
• A commercial roll-out of the NeuroEEG™ and NeuroCap™ is underway on a limited basis within the United States market, expected to be followed by the Canadian market.
• The initial entry market is identified as ICU’s, acute care settings and other emergency departments in the United States.
• The Company has established a wholly owned subsidiary in Russia and has established a wholly owned subsidiary in Europe (Poland) for product distribution and certification.
• Research and development efforts were significantly increased in 2020 with an R&D investment of $275,926, a 266% increase over 2019’s total of $103,616.
  

The Company announced that the NeuroCap™ will now be available to the pediatric market in the United States.

The Company filed a provisional patent application for a new long-term monitoring EEG cap.

The Company Brain Scientific Introduces Enhanced NeuroCap™ Disposable EEG Headset

“In 2020, Brain Scientific made good progress toward our vision of introducing transformative brain diagnostic solutions that apply cutting edge technologies and establish a new innovative norm for clinicians,” said Boris Goldstein, Chairman of the Company’s Board of Directors. “We made strides on the operations front to improve lead times and quality control, as well as connections to expand our customer base in early 2021.”

Outlook

The Company expects the following developmental milestones to be completed within the next 24 months:

• Scale production in the U.S. and expend into EU market.
• Introduction of a long-term monitoring cap.
• Introduction of a long-term monitoring 24-channel EEG.
• Launch of data storage capabilities for normalized data brain scans.        
• Further development of the Company’s planned AI neuro net.
• Perfect application for minimally invasive graphene electrodes connected to the micro-EEG.
• File international patent applications in Latin America, Europe and beyond.
  

Financial Results

Revenue for the fiscal year ended Dec. 31, 2020, was $544,275, compared to $489,202 for the fiscal year ended Dec. 31, 2019.

Total assets at the end of 2020 were $440,218, compared to $291,002 at the end of 2019. Total liabilities at the end of 2020 were $5,237,042, compared to $1,186,534 at the end of 2019. Eighty percent of the increase in liabilities were from the addition of $2.6 million in derivative liabilities and $694,000 in convertible notes payable, net.

About Brain Scientific

Brain Scientific is a commercial-stage healthcare company with two FDA-cleared products, providing next-gen solutions to the neurology market. The Company’s smart diagnostic devices and sensors simplify administration, shorten scan time and cut costs, allowing clinicians to make rapid decisions remotely and bridge the widening gap in access to neurological care. To learn more about our corporate strategy, devices, or for investor relations, please visit: www.brainscientific.com or email us at info@memorymd.com.

NO OFFER OR SOLICITATION

This communication shall neither constitute an offer to sell nor the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

FORWARD-LOOKING STATEMENTS

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements. Forward-looking statements, which involve assumptions and describe the Company’s future plans, strategies and expectations, are generally identifiable by use of the words “may,” “should,” “would,” “will,” “could,” “scheduled,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “seek,” or “project” or the negative of these words or other variations on these words or comparable terminology. 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 several 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. 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.

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FAQ

What were Brain Scientific's revenue and growth in 2020?

Brain Scientific reported a revenue of $544,275 for 2020, an increase from $489,202 in 2019.

What are Brain Scientific's plans for product distribution?

The company plans to scale production in the U.S. and expand into the EU market.

What is the status of Brain Scientific's liabilities?

As of December 31, 2020, total liabilities were $5,237,042, marking a significant increase from the previous year.

When will NeuroCap™ be available for pediatric use?

NeuroCap™ is now available for the pediatric market in the United States.

What investments did Brain Scientific make in R&D in 2020?

Brain Scientific increased its R&D investment to $275,926 in 2020, a 266% increase over 2019.