If I read and interpret it correctly, there are three things that I took away from this 4C.
- While the company's expenses went up, it ended the quarter with more cash on hand than in the prior quarter, $31.2M as stated in the report.
- While revenues are low, I do not believe that they have realized all revenue from the MegaChips agreement which, according to their clarification, would aggregate to about $2M by the end of 2022.
- They spent more on R&D than I thought they would; I recall someone from BrainChip commenting in a presentation that they were focusing mainly on sales this year (which has also been sizeably budgeted).
It's unclear as to how much of the reported earnings from 2021 in the Annual Report consisted of payments from MegaChips, but I imagine it will be trickling in for the remainder of this year.
I'm certainly not worried about their cash runway right now, they still can draw down from LDA capital if needed, but it doesn't seem that their increase in operational costs will be significantly outpacing their cash on hand.
For those who are long-term holders, I don't think there is anything to be overly concerned about. It seems from the R&D budget that they are taking the slowly-seeping competition (two main ones listed on BrainChip's slide in the neuromorphic arena) seriously and want to stay ahead in the game.
I'm looking forward to seeing how the technology changes over the next year, CES 2023 should be very interesting when it comes to how AI is starting to permeate everyday consumer products. As a side note, Virtual Reality became a consumer reality in 2016, and look how much the technology and popularity grew over the past six years.