Nobody has mentioned half yearly that came out yesterday
world’s first commercial producer of neuromorphic artificial intelligence IP, today released its Half
Year results for the period ended 30 June 2024.
During the first half of 2024, the Company focused its efforts on expanding the capabilities of the
Akida 2.0 technology through continued development of our TENNs platform. These initiatives are
a direct response to customer inquiries and feedback which reflect the market’s rapidly growing
interest for ultra-low power edge AI. The Company has seen growing interest from customers
seeking audio, video, space and military application solutions. Development efforts will continue
throughout the remainder of the year, with anticipated offerings and updates in Q1 of 2025.
The Company continued to implement cost reduction initiatives throughout the period in an effort to
preserve cash. Management continually assesses opportunities to reduce expenses without
hampering critical sales and development activities, or hindering recruiting and retention efforts
that are extremely challenging in the AI and tech industry. This is an ongoing effort and additional
cost reduction initiatives are anticipated in the second half of the year.
Significant Events After 30 June 2024
Subsequent to the balance sheet date, the Company received US$3,645,104 (A$5,465,128) upon
the closure of the capital call notice with LDA Capital on 28 June 2024.
On 25 July 2024, the Company announced:
• an equity capital raise of A$25 million comprising a fully underwritten share placement to
professional and sophisticated investors raising A$20 million before costs (“Placement”),
• the sale of A$2 million (before costs) of existing securities from LDA Capital (“Existing
Share Sale’), and
• a non-underwritten share purchase plan (“SPP”) to be offered to eligible Australian and
New Zealand shareholders to raise a further A$3 million.
The Company received US$13,606,629 (A$20,941,007) (net cash after costs) on 31 July 2024 to
close out the Placement and the Existing Share Sale transactions, with 103,245,355 shares issued
on 1 August 2024.
The SPP offer closed on 15 August 2024 resulting in the issue of 3,274,604 shares on 22 August
2024 and cash received by BrainChip of US$425,838 (A$632,013).
Business progress reflected in key appointments
In August, the Company announced the addition of Steven Brightfield to the executive team as the
Chief Marketing Officer.
Also in late August, the Company formally appointed Jonathan Tapson as the permanent Vice
President of Engineering, replacing Anil Mankar who is currently serving as a technical advisor
until his retirement at the end of this year.
Engagement with Frontgrade-Geisler subsequent to half year end
Also in August, the Company signed two agreements totalling €190k for projects with Frontgrade
Gaisler and Airbus Defense and Space to provide customers with AI capabilities for space
applications using Akida 1.0 technology.
These two projects were initiated in response to a European Space Agency request for ultra-low
power, neuromorphic, edge AI computing in space to enable future missions to the moon and
beyond. Due to the nature, timing and risk associated with these projects, it is not possible for the
Company to estimate future royalty revenues associated with these agreements.
Financial Summary
The Group made a net loss after income tax for the half-year ended 30 June 2024 of $11,517,767
(30 June 2023: $17,146,781). Revenue for the half-year ended 30 June 2024 of $106,693
decreased 8% from $115,606 in the same period a year ago. Total expenses for the half-year
ended 30 June 2024 of $11,690,959 decreased 31% from $16,851,241 reported in the half-year
ended 30 June 2023.
As a result of the Half Year financial close process, the Company completed an assessment of the
recoverability of the Group’s assets after considering impairment indicators such as high global
interest rates and the challenge of inconsistent revenue streams during the start-up phase.
Management completed a value-in-use discounted cashflow model based on a 5-year projection
period with a terminal value. Management determined that it would be prudent to impair the
carrying value of the intangible assets of $576,037, despite the Company’s confidence that the
technology remains on track. It should be noted that the impairment is a non-cash charge and has
no impact on the Company’s liquidity or ability to continue as a going concern.
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 analyse 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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Additional information is available at:
Unlock the power of AI with BrainChip. Enhance data processing, Edge apps and neural networks at the speed of tomorrow. Explore now!
www.brainchipinc.com
Investor Relations Contact:
IR@brainchip.com
Follow BrainChip on Twitter:
https://www.twitter.com/BrainChip_inc
Follow BrainChip on LinkedIn:
https://www.linkedin.com/company/7792006
Price sensitive announcement 
