BRAINCHIP HOLDINGS LTD ASX Announcement
BrainChip Holdings Ltd
Appendix 4C & Quarterly Activities Report for the Period Ended 31 March 2022
• Cash Balance as of 31 March 2022 US$31.2M
• Began Volume Commercialization of AKD1000 Chips
Sydney - 26 April 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 31 March 2022.
CEO Statement
The recently ended quarter continued our drive to full commercialisation and global expansion of our Akida™ neuromorphic IP and computing platforms. From expanding international patent rights to producing commercially available PCIe boards to entering new global markets, we extended the reach of our technology and our status as leader in enabling efficient procession of all sensor modalities to support continuous learning and inference at the Edge.
Three key appointments were made during the quarter: Mr. Antonio J. Viana was appointed Chairman of the Board of Directors, Ms Pia Turcinov joined as a Non-Executive Director, and Mr. Jerome Nadal joined the Company as Chief Marketing Officer to help the Company continue its path to commercialisation and profitability.
In the coming quarter, the Company will be focused on securing additional strategic partnerships for incorporating Akida chips as part of our customers' technology offerings as well as through sales engagement in key markets worldwide.
COMMERCIAL AND OPERATIONAL UPDATE
Sales & Marketing
During the most recent quarter, the Company announced the appointment of semiconductor marketing expert Jerome Nadel as Chief Marketing Officer. An internationally experienced executive in scaling and growth-stage companies, Mr Nadel will drive corporate and product marketing to support the full commercialization of its Akida neuromorphic computing platforms.
Brainchip continued to expand the commercial reach of its Akida neuromorphic computing platforms in new geographical territories in the EMEA via expanded and formalised partnerships with Eastronics and SalesLink. Relationships with local and regional technology solutions providers and sales professionals represent an effective way to grow the global market for the Company's IP across a wide range of applications - from industrial IoT and autonomous vehicles to smart sensors that can detect and act on visual features, sound, touch, smell and taste.
Board changes
On 4 January 2022, the Company announced the appointment of Ms. Pia Turcinov as Non-Executive Director. On 1 March 2022 Mr. Antonio J. Viana was appointed as Chair of the Board of Directors after acknowledging the retirement of Mr. Emmanuel Hernandez, who has served on the BrainChip board since 2017. The Company is continuing its search for additional non-executive board members.
Engagement with global equity capital markets
Following the Company's launch of the American Depositary Receipt (ADR) program in November 2021 as a way to attract US institutional investors, BrainChip announced on 3 February 2022 that its ordinary shares had been approved for eligibility by the Depository Trust Company (DTC), making it possible to settle trades electronically in the United States among broker/dealers and the
Company's US transfer agent.
LDA Capital
On 14 January 2022, BrainChip submitted a capital call notice to LDA Capital Limited and LDA Capital LLC ("LDA Capital") in accordance with the Put Option Agreement ("POA") (refer ASX announcements dated 13 August 2020 and 26 October 2020) to subscribe for up to 15M shares.
The purpose of this capital call notice was primarily to satisfy the Company's obligation under The
First Minimum Drawdown Amount to draw a minimum of A$5.3M no later than 28 February 2022, as well as to ensure the Company will meet the liquidity requirements necessary to execute the business plan. On 18 February 2022, the capital call notice was settled resulting in the Company receiving US$16.2M (A$22.4M).
Patents
During the quarter, BrainChip received notification from the US Patent and Trademark Office of various patents and trademarks, as a result of the Company's efforts to protect BrainChip's intellectual rights. The Company's patent portfolio comprises eight (8) patents granted in the US and one (1) patent granted in China, with a further 22 international patent applications pending in the US, Europe, Canada, Japan, Korea, Australia, Brazil, Mexico and Israel.
The Company remains focused on pursuing and maintaining patent protection on all current and future developments across multiple global jurisdictions in order to retain our technological edge over the growing number of competitors in the edge AI space.
FINANCIAL UPDATE
The Company ended the quarter with US$31.2M in cash compared to US$19.4M in the prior quarter.
BrainChip reported net operating cash outflows of US$5.0M vs.US$3.4M in the prior period. Receipts from customers for the quarter were US$0.2M, a decrease of 81% from US$1.1M in Q4-21.
Payments to suppliers and employees were up quarter-on-quarter, totaling US$5.3M (Q4-21: US$4.9M). This increase was primarily driven by increased marketing and branding expenditures; US$0.5M final milestone payment to Socionext for the production of the Akida device (Q4-21 US$1.0M); additional licensing fees and increased corporate costs resulting from increased shareholder activity.
Cash used for operating activities includes payments to BrainChip's Board of Directors totaling US$290,000 as noted in item 6.1 of the accompanying Appendix 4C, comprising directors' fees for Non-Executive Directors and salaries for Executive Directors.
Net investing cash outflows for the quarter were US$0.07M (Q4-21: US$0.3M), primarily related to new equipment being installed in the new office in California, USA.
Cash inflows from financing activities included US$16.1M cash receipts from the issue of shares to LDA Capital upon the submission of capital call notices in January and February 2022, and $0.9M as a result of the exercise of Long-Term Incentive Plan ("LTIP") stock options.
BrainChip currently 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 a global technology company that is producing a groundbreaking neuromorphic processor that brings artificial intelligence to the edge in a way that is beyond the capabilities of other products. The chip is high performance, small, ultra-low power and enables a wide array of edge capabilities that include on-chip training, learning and inference. The event-based neural network processor is inspired by the spiking nature of the human brain and is implemented in an industry standard digital process. By mimicking brain processing BrainChip has pioneered a processing architecture, called Akida™, which is both scalable and flexible to address the requirements in edge devices. At the edge, sensor inputs are analyzed at the point of acquisition rather than through transmission via the cloud to a data center. Akida is designed to provide a complete ultra-low power and fast AI Edge Network for vision, audio, olfactory and smarttransducer applications. The reduction in system latency provides faster response and a more power efficient system that can reduce the large carbon footprint of data centers.
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Additional information is available at:https://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
Company contact:
Tony Dawe
IR@brainchip.com+61 405 989 743
BrainChip Holdings Ltd
ACN 151 159 812
Level 12 225 George St Sydney NSW 2000
T: +61 2 9290 9606 I F: +61 2 9297 0664 I W:www.brainchipinc.com
Rule 4.7B
Appendix 4C
Quarterly cash flow report for entities subject to Listing Rule 4.7B
Name of entity
BrainChip Holdings Ltd
ABN
64 151 159 812
Quarter ended ("current quarter")
31 March 2022
Consolidated statement of cash flows | Current quarter $US'000 | Year to date (3 months) $US'000 |
| 205 (2,063) (578) (834) - (802) (1,017) - 13 - (14) 35 - | 205 (2,063) (578) (834) - (802) (1,017) - 13 - (14) 35 - |
(5,055) | (5,055) |
* $471,000 relates to third party expenses associated with the Akida device development.
2.
Cash flows from investing activities
2.1
Payments to acquire or for:
ASX Listing Rules Appendix 4C (17/07/20)
(a) entities | - | - |
(b) businesses | - | - |
(c) property, plant and equipment | (73) | (73) |
Page 1 |
+ See chapter 19 of the ASX Listing Rules for defined terms.
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Brainchip Holdings Ltd. published this content on 26 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2022 06:19:04 UTC.
