ASX Announcement
BrainChip Holdings Ltd Appendix 4C & Quarterly Activities Report for the Period Ended 30 September 2022
• Cash Balance as of 30 September 2022 US$24.6M
The recently ended Quarter amplified the execution of the Company’s commercialisation for our AkidaTM neuromorphic IP. In the Quarter, BrainChip added a seasoned AI semiconductor sales executive to fortify commercial expansion and execution.
The Company continues to benefit from its research activities as it was granted two new foundational patents related to neuromorphic AI inference and purchased key patents it previously only had licensed rights to use. BrainChip continues to build its AI and ML patent portfolio, strengthening our IP product and commercial differentiation.
In the coming quarter, the Company will focus on key sales targets and converting technical evaluations into paid licenses. In addition, the Company is accelerating development of next- generation Akida IP and products to extend our technological lead and market opportunity.
We are seeing the greatest amount of sales activity and engagement in the Company’s history. However, the current global technology market has created economic dynamics that have extended evaluations, decreased budgets, and delayed introduction of new technology. These conditions have created a headwind for our prospective and current customers. We anticipate these conditions to eventually calm. We remain positive on future market penetration and broad adoption of Brainchip’s technology.
FINANCIAL UPDATE
The Company ended the September Quarter with US$24.6M in cash compared to US$28.4M in the prior quarter.
Sydney – 27 October 2022 – BrainChip Holdings Ltd (ASX: BRN, OTCQX: BRCHF, BCHPY), the world’s first commercial producer of neuromorphic artificial intelligence chips, today provides the Quarterly Activities Report in conjunction with its Appendix 4C lodged for the quarter ending 30 September 2022.
CEO Statement
BrainChip reported net operating cash outflows of US$3.8M vs.US$2.8M in Q2-22. Receipts from customers for the quarter were US$0.1M, a decrease of US$1.1M from Q2-22.
Payments to suppliers and employees were consistent with the prior quarter, totaling US$4.0 in Q3-22 versus US$4.1M in Q2-22. In the September quarter, BrainChip incurred $0.25M to acquire the full ownership of the IP rights to the JAST learning rules and algorithms which were previously licensed to the Company. BrainChip has restructured its sales and marketing team with the addition of Christopher Stevens as VP of Worldwide Sales to continue efforts to increase revenue and bookings.
Cash used for operating activities includes payments to BrainChip’s Board of Directors totaling US$272,400 as noted in item 6.1 of the accompanying Appendix 4C, comprising fees for Non- Executive Directors and salaries for Executive Directors.
Cash inflows from financing activities included $0.19M as a result of the exercise of Long-Term Incentive Plan (“LTIP”) stock options.
BrainChip has entities in Perth, Australia; Laguna Hills, California (United States); Toulouse, France; and Hyderabad, India. The Company continues to maintain strict cost controls, as well as adhering to travel restrictions and precautionary measures related to the COVID-19 pandemic.
The Company will continue to update the market on material events and maintain monthly Podcasts designed to inform all constituents of the Company’s progress and industry trends.
This announcement is authorised for release by the BRN Board of Directors.
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About BrainChip Holdings Ltd (ASX: BRN)
BrainChip is the worldwide leader in edge AI on-chip processing and learning. The company’s first- to-market neuromorphic processor, AkidaTM, mimics the human brain to analyze only essential sensor inputs at the point of acquisition, processing data with unparalleled efficiency, precision, and economy of energy. Keeping machine learning local to the chip, independent of the cloud, also dramatically reduces latency while improving privacy and data security. In enabling effective edge compute to be universally deployable across real world applications such as connected cars, consumer electronics, and industrial IoT, BrainChip is proving that on-chip AI, close to the sensor, is the future for its customers’ products, as well as the planet. Explore the benefits of Essential AI at
www.brainchip.com. ______________________________________________________________________________
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