Adrian Cohen, Headsafe - Portable Brain Assessment System | LSI USA '24

Adrian Cohen  0:04  
I am Adrian Cohen. I'm the CEO and founder of head safe and I'm not from around here. I've come a long way from Australia. I've been a sports physician for over 30 years. And what we're really all about is a game changer in my chosen field of concussion. What's your worst nightmare? Mine's 14 year old soccer star Bella head down on the turf after a clash with another player. I don't know whether she's gonna get up. I don't know whether she's concussed. I don't know whether she's going to be on the slab at BU in 30 years time with CTE concussions on the front page and the back page of every newspaper every day. And yet, we don't actually assess or treat it particularly well. We need a game changer. You can catch an assessment. We don't have a gold standard. You can't cut the tissue out and look it under the microscope. Oh, yeah, that's concussion, people object. When you run onto the field, or in an accident, open their heads and take some tissue and put it under the microscope. Believe me, it happens. Okay. We've got to ensure that this from asking them questions like so how do you feel? And hey, you ready to go back on? And can you tell me who the president is? Now the answer that is usually that 90 year old idiot, but that could be either could be true or it could be false, right? These are subjective ways of finding an answer. Because we haven't and to date had an objective way. We've got it with a heart called an EKG, we are an EKG for the brain. And as a gold standard, our aim is to deliver this concussion assessment in an objective fashion in two minutes. That's all a concussion out there every 21 seconds oh, there's another one in the US. Someone sustained a traumatic brain injury. And the majority of these are concussions, but many of them go undiagnosed, because they're not recognized that I get to the doctor, the symptoms are often subjective. And if we're talking about sport, or the military, they're hidden, get me back out there, good to go dark. And there's no way of telling that they aren't being truthful. Current assessments are lengthy. They're all based on ER procedures when you get lots and lots of time, which isn't the real world where a lot of these accidents happen. And if I'm gonna be really cynical here, from the point of view of the doctors looking after them, I don't make that much money out of them. When I'm talking neurosurgeons here, crack your head and send you a bill for hundreds of 1000s of dollars. We're talking about just managing a mild traumatic brain injury. So our solution is now an FDA cleared medical device to aid in the diagnosis of concussion by a doctor. We give them the information to make relevant decisions, given new metrics. It's a compact concussion assessment device that you can carry around with you a brain scanner that fits in a briefcase. Its objective, just like an EKG is objective. The ones and knots of electricity do not lie, you can't prepare for it, you can't cheat out it, you can't anticipate it. But it does give you reliable information. And it takes only two minutes. Now, a lot of the tests that are out there that I'll talk about later, you need a baseline at the beginning of the season, then you compare later, we're baseline free. And that's because we've developed a proprietary AI algorithm to help us understand what's concussion, and what's not. Critically, this is what insurers pay for a single shot diagnosis in the questionable circumstances of is that concussion or not, they don't pay for the baselines, they just think that's something you want to do out of the goodness of your heart. So we're an innovative concussion assessment device with proprietary technology. We've known that the brain produces electricity for over 100 years, we've known we can stimulate various areas of the brain, we use the sensory system, we use the eyes to end up with a response that we can measure reliably, were cleared as an aid to the diagnosis of concussion. And essentially, this is something that within two minutes can give you actionable information. And the doctors don't need a lot of training with this. We hold the patents we own the IP seven years of development to date, and our supply chain is ready for delivery. Now this gives us a defensible moat as a product in this field, you've probably had lots of concussion technologies as a new one on television every week. But what they aren't is tailored. They don't use the complex analysis of a sophisticated brain function like EEG. We spent four years developing that and literally 1000s of patients to give information the FDA goes Yep, we agree that you do what it says on the box. We've got seven international patents. We've been working with eight international trials from the US New Zealand and Austria idea. And we've got a couple of those FDA clearances that also important in getting a product to market and get it into the hands of the doctors that need it. There are already existing charge codes for that out there, we're not reinventing the wheel, or asking the insurance to think outside the box. And this is how it works. So that's our headset, the sensors on the back read the response to the flashing light, over 400,000 data points get analyzed by the AI, and come up with a simple answer. Do you look like someone who's concussed in which case that's red? Or do you look like someone who's okay? That whole process takes two minutes. You can't cheat, you can't prepare, you can't fool it. And we don't need to refer to a baseline. Now the market is huge. Right now it's a billion dollars in the US, it's going to be four times that globally. By 2032. It's estimated that CDC report 5 million concussions a year. What that doesn't tell you is all the ones that aren't reported because less than one in 10 actually gets to a doctor where they get a number on a form. There are around 11 million tests for concussion every year on average, a patient also had $100 going through this process. And most of these and you know, the US leads the way it's got half of the world market in this. Most of the 21% of these are in sporting injuries. But let's not forget falls let's not forget motor vehicle accidents, let's not forget the military. Let's not forget domestic violence. Your brain doesn't care if it's in the front seat of a car, if that cars a Humvee or if you're in the front line of scrimmage, it's trauma to the brain that causes an effect, which we measure. The revenue model we've got for this is relatively inexpensive hardware at $3,000. That means it's below the threshold for most clinics and most doctors to be able to purchase this literally out of their coffee money. The key for us for profitability is a per test fee. So we know that insurers will reimburse 100 $150 per test. And we'll take a $30 slice of that. And of course, there's training and certification that goes with all of this is just ongoing revenue for the company. Now, there are competitors out there, but there's only a couple that are cleared by the FDA as a diagnostic tool. So right now, let's just go to the last column here, these eye tracking devices that say that they can guess what track your eyes, which is fine. That's not a concussion that's tracking your eyes, they're not cleared as an aid to the diagnosis. And there's a lot of them, and they've made a lot of noise. But they can't get reimbursement in the concussion field. And often, many of them use one of those tests as a baseline at the beginning of the season when guess what, the athlete acts dumb and goes slow. So then it looks bad later on. insurance doesn't pay for that either. When you look at the market leader in this space, and I'll come back to this in a moment, it's called impact impact came out of UPMC, a bunch of doctors there that made a neurocognitive test, that most of us that work in the field, don't think is worth the paper, it is no longer printed on. Because guess what, people don't tell you the truth. They want an outcome to get back on the field. So the first time they do this test, which the insurance company doesn't pay for, they act dumb and go slow. Hopefully, when they can cast they won't look any worse. So it's kind of one of those worst kept secrets. We all know this doesn't work, but it's the best we've got? Well, it's no surprise that their market share is declining. And people are sick of paying for tests, even small amounts of money for tests that actually don't advance the science and don't help the actual individual. There's my testing pupil up on the tree from archeologic. Here, it's an expensive product takes up well, probably half this stage, to give you an answer, and it's cumbersome, and that's means slow adoption. Brain scope, you good taxpayers gave half of about $50 million of your tax money to the DOD to invest in brain scope. Military don't use it. It's interesting to try and work out why not but it's got a $300 single use electrode that goes on to you. And that's kind of you know, it's an EEG, so it's supposed to be objective. But you're doing one of those done fangled cognitive tests while he got one of these things on you know, the cognitive tests that don't work. So just because you take a metric, like EEG that does work and apply it to a test that doesn't work, doesn't give you a solution. So it's not getting anywhere, either. But basically, we're we're facing is a large, untapped market. And that's our go to market strategy, starting in the US because it represents such a large part of the world. We've got significant awareness here. People understand that this is a cost effective way of getting a product to market with a sales technique of selling directly to the doctors who manage them. They fits in with their workflow. They're going to remember estimate from it from the patient's insurer. And we've got some help along this ways. I'm going to tell you about that in a moment. We've raised money over the past, we're raising just over three and a quarter million dollars now to opportunity to get in there to take us to this next level, which is for commercial start in the US. There's lovely numbers here, I'll just I could draw a hockey stick for you all know what those things look like. And that's because we've got a market that we understand and we know where it's going. We'll use the funds wisely into sales and marketing, and to continue the research and development. We've got a great team behind it next to me, a CTO with great experience as a CFO who's worked for a large manufacturer. We've got their little company from Australia called resume that our product manufacturers and product development guys worked for Mike waltzed around that company impact through decades. He made it profitable. And he was frustrated because they wouldn't move to the next level of technology, which we've delivered. He sent our strategic panel for the last three years. Kevin Maguire, an ex NFL player knows there's only two Well, there was a wide receiver back in the day. He's now an agent for over 100 NFL players, and over 400 NCAA players with really close contacts not just to the team owners in the NFL, but more importantly, the NFL Players Association, the people who really are going to benefit from all this, and Alison Kamiyama, who's part of our regulatory team here at our QM plus, thanks, guys. They get you through they get us through there, make sure we're doing everything right. And that's part of our success story today. Why are we doing this? Because I think about Beller on the soccer field. And I fundamentally believe that saving brains creates lasting value. If you're an investor, that's got one resonance. If you're a parent, it's got a completely different one lasting value. We're downstairs in the ballroom, you don't have to dance. You just have to come out and have a chat. There's an email, there's a Insta, there's a Facebook, there's all those things. We'd love to have a talk you join us on this journey.