The BrainChip Holdings Ltd (ASX: BRN) share price has managed to avoid the selloff and is trading flat at 37 cents in late trade following the release of its third quarter update.
What happened in the third quarter?
During the three months ended 30 September, BrainChip reported cash receipts from customers of just US$10,000. This brings its financial year to date cash receipts to US$22,000.
The company posted a cash outflow from operating activities of US$2.2 million. However, thanks to US$8.45 million from the exercise of options, it ended the period with a cash balance of US$12.2 million.
And as of 26 October, its cash balance had increased to US$20.3 million thanks to proceeds from its put option agreement with LDA Capital, as well as the exercise of employee and investor stock options.
What developments have happened during the quarter?
BrainChip had a busy quarter and entered into several agreements for its Early Access Program (EAP).
This includes with The Ford Motor Company, Valeo, Vorago Technologies, and the National Aeronautics and Space Administration (NASA).
Management notes that the EAP provides engineering samples, evaluation boards, and dedicated support to manufacturers that will evaluate its Akida neuromorphic processor. Fees to participate in the EAP are intended to cover the company's expenses related to participants individual requirements.
What is the Akida neuromorphic processor?
BrainChip is working on a neuromorphic processor that brings artificial intelligence to the edge.
Management believes its chip is high performance, small, ultra-low power, and enables a wide array of edge capabilities. These include on-chip training, learning and inference.
It explained that 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 believes it has pioneered a processing architecture, called Akida, which is both scalable and flexible to address the requirements in edge devices.
Akida has been designed to provide a complete ultra-low power and fast AI Edge Network for vision, audio, olfactory and smart transducer applications. It notes that the reduction in system latency provides faster response and a more power efficient system that it believes can reduce the large carbon footprint of data centres.
