- After its teaser earlier this month, Brainchip (BRN) has released a more detailed breakdown of its financial position during the September quarter
- In today’s quarterly report, Brainchip reiterated its cash position of around US$12.2 million (roughly A$17.4 million) at the end of September
- However, the company has been boosting its cash position since then, with US$20.3 million (roughly A$28.7 million) cash in the bank on October 26
- While BrainChip’s quarterly expenses were slightly higher in September than in June, the company said this was because of its efforts to get its flagship Akida tech validated during the quarter
- Nevertheless, BrainChip couldn’t escape the sell-off across the wider market today and company shares closed 1.35 per cent lower at 36 cents each
After its teaser earlier this month, Brainchip (BRN) has released a more detailed breakdown of its financial position during the September quarter today.
In today’s quarterly report, Brainchip reiterated its cash position of around US$12.2 million (roughly A$17.4 million) at the end of September.
However, the company has continued to bolster its cash position since then, and even since its October 19 update. Two weeks ago, BrainChip had US$17.6 million (around A$24.8 million) cash on hand. On October 26, the company had US$20.3 million (roughly A$28.7 million) in cash.
BrainChip said the increased cash reserves come from its put option agreement with LDA Capital and the exercise of some employee and investor stock options.
Of course, investors might be concerned with the higher operating expenses BrainChip has reported for the September quarter. The company spent US$2.2 million (roughly A$3.1 million) on operating activities in the September quarter compared to the US$1.9 million (roughly A$2.7 million) spent in the June quarter.
Nevertheless, the company said the higher spending was the result of locking in the validation of its Akida device and company efforts to support its Early Access Program (EAO).
BrainChip has signed several deals for the EAP, including contracts with The Ford Motor Company, Valeo, Vorago Technologies, and the National Aeronautics and Space Administration (NASA).
The company’s Akida device is a neuromorphic system-on-a-chip (NSoC) device designed to target the world of edge computing and smart homes and businesses.
Though BrainChip has had a solid share price run over 2020, the company was unable to escape the brutal sell-off across the wider market today.
Shares in BRN closed 1.35 per cent lower at 36 cents a pop. The company has a $585.95 million market cap.