Melbourne, Australia (ABN Newswire) - Bluechiip Limited (ASX:BCT) (FRA:1BL), a developer and leader in wireless tracking solutions for the healthcare and life science, security, defence and manufacturing industries is pleased to release its Appendix 4C - Quarterly Cashflow report and update for the quarter ended 30 June 2021.
Corporate and Business updates for the Quarter
- Successfully concluded the private mediation on the dispute between Bluechiip and Labcon North America (Labcon) with settlement of USD1.6m from Labcon;
- Cash of USD850k fully received as part of the USD1.6m settlement from Labcon;
- Bluechiip and Labcon entered a new Supply Agreement for new Bluechiip Enabled consumables, readers and software;
- Progress being made to secure a new OEM partner agreement with a key USA clinical business;
- Continuous research and development work (R&D) made on Bluechiip direct to market portfolio of products for the Biobanking market including a range of Bluechiip Enabled and Bluechiip-branded range of cryogenic consumables;
- Optimisation stage of the chip commercial production well in progress; and
- Closing cash and cash equivalents of $5.92m as at 30 June 2021, with no borrowings.
Following the private mediation, Bluechiip and Labcon ended their dispute with the following mutual beneficial resolution:
- Labcon agreed to provide Bluechiip with USD1.6 million comprising:
o Cash payment of USD850,000; and
o Bluechip delta tags and products previously sold and paid for by Labcon worth USD750,000, which will be incorporated or repurposed into the newest generation of Bluechiip Products and Bluechiip Enabled consumables
- Labcon and Bluechiip entered into a new Supply Agreement for new Bluechiip Enabled consumables, readers and software that is to be drawn down from credit of up to USD1.35m provided by Bluechiip.
Sales and marketing team both in Australia and the USA continue to make progress with potential OEM partners. Advances being made to secure an agreement with an OEM partner in the USA. The sales team in both Australia and the USA have also resumed face-to-face product demonstrations where possible following relaxation of COVID-19 restrictions and installed evaluation systems into customer sites in North America and Australia resulting in an order for delivery of products to a new Australian customer for delivery on launch of Bluechiip Enabled cryovial range.
As part of its strategy to market Bluechiip's portfolio of consumable products, the Company continues to intensify its resources into R&D of its branded range of cryogenic consumables.
The Company has also successfully made production improvement to the quality, performance and scalability of its chips. The optimisation stage of the chip commercial production is expected to attain higher quality and yield, with the aim of achieving economies of scale and lowering production costs as the Company approaches full volume production.
During the quarter, staff costs and commercial production costs of chips continue to dominate cash outflow items - $478K (Q3 Mar 21: $510k) and $471K (Q3 Mar 21: $403k) respectively.
The current quarter outflows have been mitigated by settlement receipt of $1.134m from Labcon. The Company is financially well supported with closing cash and cash equivalents of $5.92m as at 30 June 2021, with no borrowings.
The Company continues to respond to market conditions by progressively reviewing several measures implemented, including:
- Resuming in person meetings and product demonstrations with potential OEM partners;
- Executing on potential opportunities in the USA, including evaluation systems into customer sites through our USA-based sales and marketing team;
- Focusing on R&D of a Bluechiip Enabled range of consumables for the Biobanking market which Bluechiip intends to market directly in North America and Australia/New Zealand and through distribution partners globally;
- Improving its suite of products including multi-vial reader functionality by addressing market feedback to meet current and potential OEM partners' requirements to showcase its stand-alone all-in-one multi-vial reader;
- Managing its existing cash reserves and allocating to evaluated R&D activities expenditure in line with the Company's overall strategy;
- Managing the scale of production in response to the slowdown in sales activity, while continuing to build stocks with the expectation that when markets normalise, Bluechiip will be well positioned for a return to growth; and
- Working with patent adviser on further patent applications to add to Bluechiip's existing nine patent families comprising 26 granted patents.
To view the cashflow report, please visit:
About Bluechiip Ltd:
Bluechiip Ltd (ASX:BCT) understands that every sample - stem cells, blood, eggs, sperm and other biospecimens - is critical, so our objective is to manage each one with optimal quality in the most efficient way. Bluechiip's advanced management solution is the only one that provides sample temperature with ID in cryogenic environments to. Most importantly, this delivers confidence in every sample.
Bluechiip's unique patented technology is a MEMS-based wireless tracking solution that contains no electronics. It represents a generational change from current tracking methods such as labels (hand-written and pre-printed), barcodes (linear and 2D), and Radio Frequency Identification. Bluechiip tags are either embedded or manufactured into storage products such as vials or bags. Each product can be easily identified, and critical information such as sample temperature, is detected by readers and stored in the Bluechiip software. In addition to functioning in extreme temperatures, the Bluechiip(R) Advanced Sample management solution can survive autoclaving, gamma irradiation sterilization, humidification, centrifuging, cryogenic storage and frosting.
Bluechiip's technology has applications in healthcare, including in cryogenic storage facilities (biobanks and biorepositories), pathology, clinical trials and forensics. Other key markets include cold-chain logistics/supply chain, security/defence, industrial/manufacturing and aerospace/aviation.
Bluechiip: Delivering confidence in every sample.
Managing Director - CEO
Oxygen Financial PR