Today, I'm pleased to be in conversation with Founder and CEO, Dr. Ann Marie Sastry of Amesite, ticker AMST. During the presentation, please feel welcome to submit questions using the Zoom Q&A interface at the bottom of your screen. After the presentation, we'll open to your questions. And with that, Ann Marie, I'll turn it over to you.
Thanks so much, Alex. And thank you, everyone, for joining today for this presentation by Amesite Nasdaq AMST. With me today is Mr. Brandon Owens, who is our VP of Sales, and he'll be commenting during the presentation about some of our sales outlook as well. We've titled the presentation "The 2025 Outlook." First, a few words about myself. I am an engineer by training. All of my degrees are Mechanical Engineering and Applied Mechanics, undergrad Delaware, PhD Cornell. After I finished my doctorate, I went off and programmed with a big Cray at Sandia National Laboratories, where I worked behind the fence at Kirtland Air Force Base. I was a multiphysics computational scientist there, then was recruited to the University of Michigan, where I served on the faculty for 17 years. I was the Thurnau Professor of Mechanical, Biomedical, and Materials Science and Engineering.
While a professor, I started two large research centers, one in electric vehicles and one in bioscience, also a large global graduate program, and then started a company. The company became quite successful. Sakti3 was acquired by Dyson for $90 million with 15 people on staff, set a record for energy in a battery cell, and was covered by Scientific American and got to go to the White House to meet President Obama on behalf of the team. The team was amazing, multiple workplace excellence awards, and a great exit. Stayed on at Dyson for two and a half years and then left to start this company to bring AI to people. So we were early in space, and we'll talk about that, and we'll talk about what we've been doing this year.
Brandon Owens, our amazing VP of Sales, has long experience in enterprise sales, came to us from Pluralsight, and has set up systems all over the country and all over the world. Amesite's products are now in 21 countries, and our newest product, NurseMagic, which is doing, we believe, very well, very well, is now used by 87 different professions across the globe. So first, our forward-looking statements. And I'll leave you just enough time to read all of that. And now the table of contents of this presentation. First, we'll talk a little bit about who we are as a company, what we do, our products and markets, and then our most recent sales wins, our revenue growth. Then we'll talk about our motions in sales and marketing. Finally, our technology and pipeline, and then a few notes on our people, culture, and leadership and the financials.
Amesite empowers people with AI tools. We are seeing fast growth in our new app, NurseMagic, which targets healthcare professionals. We came to the marketplace, founded in 2018, went public in 2020 with a product in the academic sector, a higher ed product, an AI-powered platform for professional learning. That product generated about $2.4 million in total contract value since launch. It's a turnkey AI-supported professional development tool that enables higher ed to generate revenue. Although we did have early adopters and we were closing large contracts, about $250,000, and generated good revenue, $2.4 million in total, sales have been slow, and last year, we decided to take a hard pivot, so even though that product was rated best in class of AI tools, learner completion rate 96% to 98%, normal is about 60% in online learning, we decided to take a pivot and move into healthcare.
But instead of doing professional training in healthcare, we decided that generative AI had changed the game. And so rather than have a cycle of stop, train, test, and do, NurseMagic just helps people do. It's an app right on a nursing professional's phone that gives them real-time advice on how to do patient care, how to communicate, and most importantly, how to execute writing a nurse note. About 40% of healthcare workers' time is spent in documentation. NurseMagic takes a 20-minute job down to about 20 seconds, and it is available in the app stores now. Rather than describe the app, I'm going to show a short video at the conference and ask you to listen to this. I think you'll find it, hopefully, find it interesting.
Nurses, you are the world's top caregivers, which is why we built something to help you. Meet NurseMagic, the app that gives you superpowers, featuring tools powered by artificial intelligence that give you access to medical information, expert diagnostic support, and drug information. It can even write emails for you, especially on difficult subjects. For dozens of everyday nursing tasks, we've got you covered in whatever language you need. But you might ask, is it accurate? Yes. NurseMagic uses data directly from the FDA. And our tech has beaten the average doctor on the USMLE by 15%. Your average Dr. McDreamy gets a 76, but you with NurseMagic's tech get a 91. But what about the NCLEX? Yep, we've got you there too, right on your own phone. Oh, and hang on, one more thing. Need to write nurse notes? Don't worry.
We've got you covered there too for all formats and situations. NurseMagic, smart tools, and happy nurses.
So that video was produced by our marketing team. Madison Bush has created the brand for NurseMagic. And like I said, we have 87 user professions registered on NurseMagic already. Deployment of NurseMagic has been rapid and we believe successful. We first concepted the product on Valentine's Day of last year, so it's an easy date to remember. In June and July, we rolled it out from beta to launch, adopting it in all 50 states and six countries. We hit key milestones in terms of the technology, including segue into sales. In September, we announced five enterprise pilots with companies that collectively had over 30,000 employees, rolled out across 41 states. In October, NurseMagic hit the App Store and Google Play, and we enabled customized enterprise solutions.
November of last year, B2B was established just five months after launch, and we announced our HIPAA that we met HIPAA regulation, and in December, we announced more growth with a larger marketing reach, social buzz, and enterprise wins with franchise leaders. We also launched paid subscriptions, so this has been a very rapid product launch for us, and we believe, for the reasons I'll outline, that we have a tremendous product-market fit. The pricing is very accessible. We are a freemium company, so we start off with free. Individual pricing is only $29.99 a month. We've had no pushback on that. It gives generous monthly usage. You can cancel any time. For enterprise, obviously, we quote. You can see what our users are saying about us, which is much more important than what Brandon or I would say about it. You can see the quotes at right.
Steven Nickens is an owner of Senior Helpers, a Senior Helpers franchise, which is one of the leaders in the space. And he points out that the tool is transformative. Jenny Marshall, who's a registered nurse at another franchise, BrightStar, another leader in the space, says that it does her least favorite task for her, allowing her to do more patient care. You can view testimonials about our product right on our website, www.nursemagic.ai. I encourage you to go there and visit the testimonial page. Also, our IR page is there, of course. The sales motion is straightforward for B2C. Purchases are automated. Contracts are simple and close and easy to close for B2B. We've been told that one of our testimonials talks about how easy we are to work with. It's a two-page agreement, no hidden terms. Pricing is attractive for both products.
So for cost of much less than an hour's worth of work by an employee, you can take an employee and take 40% of their time and execution and bring it down to a negligible amount. 20-minute note generated in 20 seconds flat. NurseMagic meets huge market pain. The B2C segments and the B2B segments are both enormous. Excuse me. With 5.2 million RNs, 630,000 LPNs, and 1.4 million home healthcare employees, there are large numbers of employees that we can market the tool to and sell the app to. On the B2B side, there's also enormous opportunity, and I'll let Brandon talk a little bit about that.
Thank you, Ann Marie. On the B2B side, like Ann Marie mentioned, we have 26,000 skilled nursing and home care facilities in the United States. This represents an estimated 13% CAGR in the home care over the next 10 years. So this market represents over $138 billion in value. Right now, we're signing home care franchises and home care healthcare franchises, including two of the largest leaders in the space, which we'll talk about here in a moment. We are extremely excited, and we're not only winning the franchises, but more importantly, we're winning the corporations that offer franchise opportunities in this growing and hungry market. Our sales team.
Oh, sorry, Brandon. Go ahead.
No worries. Our sales team is reaching out, as Ann Marie mentioned, and we're really growing, and we're really focused on that.
Yep. Thank you, Brandon. Thank you very much. Again, 40% of healthcare workers' time, whether they're B2C user or B2B user, are spent in documentation, and this tool for less than $30, less than a dollar a day, takes away that burden. Now, for the wins we've generated, on the B2C side, we've registered over 10,000 free users already within six months of launch. B2C subscriptions, paid subscriptions, were launched just last month. We have users, as I mentioned, in 50 states and 21 countries, and our accounts reached over 12.9 million people on Instagram or accounts reached in Instagram and TikTok over the last 90 days alone, so our reach has improved even as we've been engaging people in the free solution, and now, Brandon, talk a little bit about the B2B side.
Thank you, Ann Marie. As we mentioned on the earlier slide, to franchises, we're reaching out and working with the largest corporations and the corporate leaders in the space, including BrightStar Care, Senior Helpers, and we've already won their business. Additionally, we've won businesses with independent operators like Queens Boulevard, Prodigious Health, which is a hospice, home hospice, and other long-term hospice operators. So hospice is another growing and very hungry segment that we're targeting. We're staying focused on this, so we're not getting distracted. We're focused on franchises as well as home care. Because, as you can see here, targeted over 700 franchise locations based on the wins that we've already logged. And these companies and these corporations represent a targeted $5.2 billion in annualized revenue. And these are the companies that we have already targeted.
We've won our first enterprise deal within only five months of launch in a highly regulated space, so we're very confident we'll be able to close deals this quarter and beyond.
Yes. And to Brandon's point, we don't have to close complex deals. We can win franchise after franchise after franchise, agency after agency, and there are 26,000 of these to sell to. So rather than go after complex deals in difficult-to-penetrate markets like hospitals or universities, we're going after business owners who directly need our tool and report massive savings, massive improvements in improving patient care, reducing costs, and driving revenue. Our B2C audience on the brand loves the brand, and we have a validated market entry, we believe, with no significant objections in care and healthcare markets. So talking about our paths to profitability, our B2C revenue growth in NurseMagic is focused on winning RNs and LPNs. With less than 0.5% market penetration of RNs, we are profitable. Alternatively, this is an either/or, not/and. We can penetrate less than 4.8% of the LPN market and be profitable.
How we convert is straightforward. We target with paid digital advertising. We gain endorsements from trusted influencers, and we outreach for users with email and with text messaging. We can achieve profitability within, we think, a reasonable amount of time with fewer than 30,000 B2C users, and we've already enrolled over 10,000 free users. User feedback is highly positive, and the price point is attractive. Now, Brandon's going to talk a little bit about the B2B motion.
Thank you, Ann Marie. We have multiple paths to profitability for NurseMagic on the enterprise side. The first is in skilled nursing and home care. As we discussed, we need to achieve less than 1.6% market penetration to be profitable, and in the franchise and home care, we need only 9.3% market penetration in actively targeted corporations. These corporations, we've already closed and won deals with, which is really important, so again, that's 9.3%. How we convert is, again, similar a similar motion. We target owners and pay digital ads, and we do direct email campaign, of course, phone calls, calling directly to our target agencies, and we have a publicly available list that we are able to contact and reach out to. We can achieve profitability with fewer than 17,000 B2B users, and we have generated wins in independent and franchise home care already.
The feedback is, as Ann Marie will mention, again, very outstanding, and the product and the price point is resonating within the market.
Thank you, Brandon. So our brand reach, our marketing, we believe, has been successful. We have been running over 125 social posts per week. We have multiple viral posts with over a million views. The vibe on the brand is very friendly and accessible. And you'll notice that the comments on our social media channel are uniformly positive. We're in six channels: Facebook, X, LinkedIn, of course, TikTok, and Pinterest. We publish five blogs a week. We have 38,000 followers since our inception. And as I mentioned, we have had a large reach of accounts. Overall, we have a robust positive marketing that's driving millions of views. We are first and loud in AI for care teams. Onboarding our product is simple and scalable: B2C, B2B. B2C, you see NurseMagic on social media or an ad. You sign up, you try it for free, and you subscribe.
B2B, you do a short trial to demonstrate the benefit, a couple of days. Enterprise gets a customized solution, and the customer manages the app access and use. In the enterprise solution, the customer can actually associate their employee with care recipients and execute that without intervention by NurseMagic. And they have been very strongly positive. I'd encourage you to visit our testimonial page. Overall, the freemium model builds trust and drives adoption. The limited free usage encourages conversion, and the subscription revenue does protect our margin with controlled usage. The tech stack that we've built supports this. After years of working in the academic market, we have a buttoned-up infrastructure that allowed us to deliver an app in, we think, an amazing time frame. I'm very proud of the engineering team. The infrastructure is designed to integrate innovative solutions.
So as the time comes, we can integrate solutions very readily. We can integrate thousands of APIs. We already integrate hundreds. The analytics, functional APIs, and new APIs feed into our cloud architecture. We acquire data, we prep it, we refine our models, and we deliver our models. So we're training on data all the time. We do this while meeting HIPAA regulations. So we do strip data even as we get it so that we can use it and improve our models continuously. And we do work directly with some of our clients on delivering solutions and features continuously that meet their needs. Our goal is nothing less than being the favorite app in healthcare. To that end, we do meet HIPAA requirements. We have secure electronic protected health information.
We have 24/7 automated threat monitoring, strict development and access controls, and our infrastructure enables entry into all healthcare segments. We are staying laser-focused on home and healthcare, which spans healthcare and skilled nursing right now, rather than go after complex sales right out of the gate. But our infrastructure does allow us to go broad when the time is right for that. NurseMagic, bottom line, is a secure and reliable solution for enterprise that meets HIPAA requirements. Continuous improvement is always important to us. We have over 20 proprietary models. We have over a billion lines of projected training data in the first year of our public release. We generate about five feature upgrades per week on average, and we have over 100 APIs already integrated. So as we need to integrate with other solutions, we can do so quite readily.
The reason, of course, is the team that I'm very proud of. Engineering has over 49 years of collective experience, everything from full-stack coding, cybersecurity, statistical data analysis, and beyond. Sales has over 22 years of collective experience in both U.S. and global sales, higher education, enterprise, nonprofit, and financial services, in addition to healthcare. Marketing has over eight years of collective experience from digital marketing to SEM, SEO, and public relations. And finally, at finance, with 32 years of collective experience in public and private accounting. The team has won 19 earned workplace excellence awards. These are not purchased awards. These are earned based on employee surveys and assessment of the company. Eight of them are national, from Best and Brightest in the country to Best and Brightest in wellness and others. The board that I'm grateful to have pulled together for this company is amazing.
J. Michael Losh is the chair of our audit committee. He's the former CFO of General Motors. Dr. Gilbert Omenn is the first and foremost CEO of the entire Michigan healthcare system. Barbie Brewer ran talent for Netflix, and George Parmer is an incredible entrepreneur who's built an amazing business across the country. I believe we have the right team to forge ahead in 2025. A word on the financials. These are, as of January 17, our last fundraise was a CMPO. We had heavy insider participation on that. You could read about that. I myself put $1 million in, and the board collectively put in $1.26 million on a $3.5 million or $3.6 million raise. At present, we have $3.5 million cash on hand, zero debt, over 14 months of burn, 4 million shares outstanding, 2.8 million public float, and $2.4 million in total contract value since inception.
Now that we've pivoted in NurseMagic, we are gunning hard for profitability. We're building revenue with B2C and B2B sales. Our recognition is growing. We have good liquidity and zero debt. Overall, we have cut our expenses since our pivot quite dramatically. Year on year, from 2022 to 2023, we cut our expenses in half as we executed our full stack and offboarded offshore teams that were helping us create code. We didn't need them anymore because we had executed the full stack. Even last fiscal year, we have also cut our expenses further. We have a steady burn rate projected for fiscal year 2025. And by the way, that 14 months of burn is considering no revenue. So it is the most conservative assumption possible, of course.
We have automated B2C sales and efficient B2B sales, which are driving scalability in a repeatable sales motion without significant new expenses. So the investment highlights, we've been loud in the marketplace on AI for some years, coming onto the Nasdaq in 2020. With our pivot into healthcare, we are able to leverage a lot of what we've built, including the trust that we've built in our technology, and we're seeing rapid adoption, so with that, I thank you very much for your attention, and I'd be glad to entertain any questions.
Great. Well, thank you very much, Ann Marie and Brandon. I'd like to remind folks, if they have additional questions, they can submit them using the Zoom Q&A interface. But in the meantime, let me pick up where you left off. I think you spoke about the recent fundraise and the insider participation in it and the conservative runway. Could you share a little bit more about how that runway might align with any sorts of milestones you're looking to achieve along that path to profitability?
Yeah, we're going to use it for general corporate purposes, as always. We, like I said, don't expect any significant increase in expenses in executing this repeatable sale, both B2B and B2C motions. So we don't think that we have to, for example, scale employees as we scale sales because the B2C is automated and the B2B is straightforward. Customers run their own systems. Once we set them up, we learned how to do that with universities. And so we're leveraging that experience here. And we did that successfully across the country, if that makes sense.
Yes, good context. Thank you.
You bet.
In terms of scaling sales, which I know you've mentioned, something I've seen is that the B2B ROI, return on investment, is kind of something that's frequently asked about. Do you have any sort of early quantification of that, or are you kind of looking to put that case together?
We have not messaged publicly on anything but the number of users it takes us to get to profitability. We've priced the product at a point that is accessible to customers, but also delivers us a margin that is scalable, so at the current pricing model, we do not expect to be losing money when we start, when we break even, if that makes sense. We could have, we think, set the product at a higher price point, but our goal is to win healthcare, so we want to set it at a point where people just say yes, and at less than $30 a month, less than $1 a day, to have somebody write your nurse notes for you and make sure your documentation is complete, that is incredible.
Additionally, there are protections for business owners who buy our solution, and I'll ask Brandon to say a few words about that. What they tell us is that it gives them significant risk protection in things like audit. So if their nurse notes don't say that something happened, then if they get audited, it didn't happen and they can't get paid. Brandon, you want to talk a little bit about that?
Yeah, absolutely. Thank you, Ann Marie. So there's an issue in home care and home health for the risk of audit. And nursing professionals in those industries are known not to provide perfect documentation every time. And it's very time-intensive. For example, an admission note in home hospice can take anywhere from 15-20 minutes. With NurseMagic, it does it in 20 seconds, and it's done right the first time. So our owners are telling us it mitigates their risk to ensure it's properly documented on every visit, every single time. And that is a game changer, they tell us.
Does that help, Alex?
Yeah, yeah. I think certainly the risk is a big part of the ROI and that speed, and it sounds like quality of outcome and audit are also good components of it.
Our owners are telling us that the three main benefits of NurseMagic, number one, improve patient care. If you can't do that, you shouldn't be in the business, right? But that's what they tell us because it does everything from help healthcare professionals communicate with patients to make good decisions under stress. Second, cut costs, be efficient. NurseMagic takes that 40% of time and takes it down to almost nil, and with auditable records that protect the business. So it drives incredible efficiency. Third, driving revenue. 77% of home care patients are turned away, cannot find home care. So this industry is under tremendous pressure to grow, and there's a tremendous opportunity for revenue with these franchise opportunities. What our owners are telling us, and you can visit the testimonial page. You don't need to hear it from me and Brandon.
You can go visit the testimonial page, but that they plan to take on more complex cases, that they believe that they can drive more revenue with NurseMagic at lower audit risk, lower risk of not getting reimbursed for the work that they do, so for all of those reasons, we think that this is a great product-market fit.
Great. Yeah, I appreciate that. And I think earlier you shared some of the sort of break-even points, perhaps on the consumer side. Do you have any sorts of plans around building out a B2B salesforce or kind of a similar metric that you might achieve for break-even?
We do. We've reported the break-even for the B2C as fewer than 30,000 users, and the break-even for B2B is fewer than 17,000 users. So we have two motions going on at present. One is the B2C, one is the B2B. Brandon leads a sales team that is focused on that B2B motion with these segments that we think are very, very good, where we have a very, very good product-market fit without a lot of friction in the sale. On the B2C side, of course, it's automated.
Great. And we are almost out of time, so maybe we could end with a question. If you could sum up the value proposition for investors who might be looking across AI tools or AI and medicine in particular, we'd love to give folks that context.
Absolutely. We've been in AI for a long time. We were early in the space, founded the company in 2018, went public in 2020, took a hard pivot in 2024 to go into healthcare, and we've rolled out an app very fast. We've already met all of the regulatory hurdles, including meeting HIPAA regulation. And we see the forecast as being very, very low regulatory barriers in AI in the next few years, very low. So we look at this and see that the only way to meet the needs of a healthcare system in which we pay more than any other country and get worse outcomes of any industrialized country, that AI is the way for us to innovate. And we believe that entrepreneurs and owners are going to vote with their feet and are going to choose AI tools.
It's been a really fun journey to market this tool and to sell it because we're selling it into a marketplace that really needs it. In terms of the company, we have zero debt, reasonable liquidity, high inside ownership, about 27%. I, as the founder and CEO, put $1 million of my own money into the last financing. That's how strongly I believe. The team is amazing, has won workplace excellence award, and is battle-hardened. We believe that the outlook for 2025 is very, very positive for us.
Great. Well, thank you very much. And with that, we are at time. So I'd like to thank you as well for the overall presentation. Thank you, Ann Marie and Brandon. And also thank everybody listening for spending time with us today.
You're very welcome. Thank you so much. Appreciate it.