At time of writing, the share price of BrainChip Limited [ASX:BRN] is up 5.49%, trading at 9.6 cents per share.
The latest news out of the company is its quarterly activities report which details their progress on the SNTech dispute and sales.
SNtech dispute update
According to BrainChip, the audit of SNTech’s books and records in the December 2018 quarter was ‘unsatisfactory’ with regards to disclosures.
SNTech had disputed an invoice of $609,135 from BrainChip.
As a result of the unsatisfactory audit, BrainChip has filed an FOIA request with the Lockport School District to resolve the matter.
Lockport School District responded to the request on 9 January 2019 and said they would provide further information.
Sales update and cash flow update from BrainChip
Total net cash outflows for the quarter were US$2.7 million compared with the US$2.6 million they had expected.
Cash receipts were US$227,000 and does not include invoices issued during this quarter that will be paid at a future date.
Investors will be looking for sales growth as the company went through a significant portion of its cash this past quarter.
They currently have US$7.544 million on hand as per a recently released appendix.
BrainChip did include an interesting update regarding its partnership with Quantum Corporation saying that:
‘The Company will visit several major M&E production companies with Quantum during the first quarter of 2019. In surveillance, the joint sales effort is currently pursuing a Smart City project in Asia.’
As for sales engagements…
‘The quarter included 26 active or pending trials with end-users and original equipment manufacturers… [as well as] a successful trial of BrainChip Studio with a major US-based storage manufacturer and subsequently shipped a BrainChip Accelerator for further evaluation. This is a significant development for potential large-scale deployments.’
In future announcements, investors will be looking for growth in sales receipts from these 26 active or pending trails.
It will be interesting to see if this AI hardware company can fulfill its potential.
For Money Morning