BrainChip (BRN) Q3 2024 earnings summary

Executive summary

• Advanced customer engagements for commercialization and strengthened leadership team during the quarter.

• Signed €190,000 in agreements with Frontgrade Gaisler and Airbus Defence and Space for Akida 1.0 in space applications.

• Appointed Steven Brightfield as CMO and Dr. Jonathon Tapson as VP of Engineering; co-founder Anil Mankar to retire end of 2024.

• Reconstituted Scientific Advisory Board with key industry leaders to guide R&D and strategy.

Financial highlights

• Cash balance at 30 September 2024 was US$25.6M, up from US$10.9M in the prior quarter.

• Net operating cash outflows were US$3.4M, slightly improved from US$3.9M in the previous quarter.

• Cash inflow from customers was US$0.04M, similar to the prior quarter.

• Total payments to suppliers and employees were US$4.0M, consistent with the previous quarter.

• Recognized US$0.89M in unrealized FX gains from AUD cash revaluation post capital raising.

Outlook and guidance

• Optimistic about future sales due to active customer engagements and interest, despite long sales cycles.

• Proceeds from recent capital raising to support commercialization of Akida 2.0 and development of TENNs products.