- AI technology provider BrainChip (BRN) has released its December 2019 quarterly report
- The company ended the quarter with more than $11 million in cash and cash inflows of more than $530,000
- BrainChip also attended two conferences and held a workshop for its Akida machine learning device that mimics human brain spiking commonly seen in epilepsy
- In midday trade BrainChip’s share price is up an even two per cent with shares trading for 5.1 cents apiece
AI technology provider BrainChip (BRN) has released its December 2019 quarterly report.
The company ended the December quarter with US$7.6 million (AUD$11.3 million) in cash and had cash outflows of US$2.54 million (AUD$3.76 million).
Total cash inflows for the December quarter were US$359,000 (AUD$532,000), which includes research and development rebates, and receipts from customers and interest income.
For the March 2020 quarter, BrainChip forecasts total cash outflows of US$3.97 million (AUD$5.88 million).
This amount includes the non-recurring expense of US$1.5 million (AUD$2.22 million) associated with the Akida device development previously forecasted in the December 2019 quarter.
This leaves a March quarter outflow before the non-recurring Akida development expense of US$2.47 million (AUD$3.66 million).
Following the quarter, BrainChip received US$342,000 (AUD$506,000) for the release of 10 million shares in conjunction with the convertible securities agreement entered into in June 2019.
In addition, a further US$136,799 (AUD$202,747) worth of convertible notes were retired and this was used to reduce the collateral shares outstanding by almost 5 million.
BrainChip is continuing to control expenses, primarily employee headcount, while also completing the development of Akida and marketing its intellectual property.
The company markets an innovative neural network processor that is inspired by the spiking nature of the human brain.
Spiking occurs in the brain when clusters of brain cells send abnormal signals – stemming from tumours, infections or traumatic injuries – in the frontal lobe of the brain.
By mimicking brain processing, BrainChip has developed a spiking neural network called Akida which is a machine learning framework that is used for the creation, testing and training of artificial networks that are loosely based on the human brain.
It is hoped that by doing this a better understanding will be achieved of what causes brain spiking and how to minimise, and maybe stop, the effects.
During the quarter, the company also attended two industry conferences in Canada and California, as well as conducting a workshop for its Akida device in Perth.
BrainChip’s share price is up an even two per cent with shares trading for 5.1 cents apiece at market close.