BrainChip Holdings provide an update for the quarter ended 31 December 2017
BrainChip Holdings, a developer of software and hardware accelerated solutions for advanced artificial intelligence (AI) and machine learning applications, is pleased to provide an update for the quarter ended 31 December 2017 to accompany the Company’s quarterly cash flow report.
Significant developments for the quarter include the shipment of the first BrainChip accelerator card, the provision of AI video analytics for a large-scale municipal project in France, demonstration of AI-powered video analytics technology at the Milipol 2017 tradeshow, the appointment of Greg Ryan as Director of Sales and Business Development for Australia, and a successful placement which raised A$21.5m.
This solid momentum was continued post the end of the quarter with the Company securing a new license, development, and revenue sharing contract with Gaming Partners International Corporation to use BrainChip’s vision recognition technology in its software packages.
Shipment of first BrainChip Accelerator card
In October 2017, BrainChip shipped its first BrainChip Accelerator card to a major European automobile manufacturer, marking the first commercial implementation of a hardware-accelerated Spiking Neural Network (SNN) system and a significant milestone in neuromorphic computing.
The automobile manufacturer is evaluating the BrainChip Accelerator in Advanced Driver-Assistance Systems (ADAS) and Autonomous Vehicle (AV) applications.
BrainChip accelerator increases the performance of object recognition provided by BrainChip Studio software and algorithms. The low-power accelerator card can detect, extract, and track objects using a proprietary SNN technology and provides a seven times improvement in images/second/watt, compared to traditional convolutional neural networks accelerated by Graphics Processing Units (GPUs).
Provision of AI Video Analytics for a Large-Scale Municipal Project
Also during the quarter, BrainChip was selected to provide its AI-powered object search and facial recognition technology in a new large municipal deployment of video surveillance and video analytics in France. The project has a potential value of more than US$1.2m and the deployment encompasses over four thousand cameras across several towns and cities. BrainChip Studio’s object search and facial recognition capabilities is now being deployed in 11 pilot locations with broader deployments to follow later in 2018.
Demonstration of AI-Powered Video Analytics Technology at Milipol 2017
In November 2017, BrainChip demonstrated its AI-powered video analytics technology at Milipol 2017, in Paris France. The Company co-exhibited with one of its commercial customers, leading avionics and information technology systems provider, Rockwell Collins (US$22.6bn market cap). Inspector Jean-Francois Lespes, Chief of the Indictable Offense Department at the Toulouse National Police also demonstrated how BrainChip Studio aids in the investigation of major crimes following a successful trial of the technology.
The BrainChip Accelerator product was selected as a winner of the Milipol Innovation Award, which recognizes companies with the most outstanding technology solutions related to homeland security.
New Gaming Contract with Gaming Partners International (“GPI”)
Post quarter end, BrainChip secured an agreement with listed casino table game equipment manufacturing and supply giant, Gaming Partners International Corporation (US$86.2mn market cap) to use BrainChip’s vision recognition technology in its software packages. Under the terms of the agreement BrainChip will receive a total of US$500,000 in license fees, a non-recurring engineering fee of US$100,000 for products developed under this agreement, and long-term revenue sharing for the sale of the developed technology. BrainChip’s video analytic, AI technology will be integrated in GPI’s casino table game management system.
Appointment of Greg Ryan as Director of Sales and Business Development for Australia
In November 2017, BrainChip established a local sales and business development presence with the appointment of Mr Gregory Ryan as Director of Sales and Business Development for Australia. Mr. Ryan is a 30-year technology veteran and is supporting the Company’s strategy in both Civil Surveillance and Gaming in Australia as well as the business development requirements for the design and introduction of the Company’s AKIDA Neuromorphic Processing Unit. The local presence in Australia builds on BrainChip’s successful engagements in Europe and the United States by addressing the regions’ urgent requirements in anti-terrorism and anti-crime sought by homeland security and local law enforcement.
Successful Placement Raises A$21.5m
In October 2017, BrainChip completed a placement to raise A$21.5m. The Placement was heavily oversubscribed and was supported by a large number of institutions. Funds raised allow BrainChip to accelerate its commercialization strategy and to further develop its existing video analytics products and its planned AKIDA Neuromorphic Processor Unit.
Quarterly Cashflows
Operating activity cash flows in the December 2017 quarter were an outflow of US$1.880m, comparable with the outflows of US$1.844m in the September 2017 quarter. The Company had US$16.049m in cash at the end of the December 2017 quarter.
Outlook
Going forward, BrainChip expects continued sales growth with original equipment manufacturers, integrators and other partners. At the same time, the Company is focused on the development of its revolutionary AKIDA Neuromorphic Processor Unit. The product is expected to be a leader in the emerging neuromorphic computing field, with multiple applications including robotics, gaming, surveillance and cybersecurity and autonomous vehicles. The Company will also continue sales and marketing initiatives for its existing video analytics products and is progressing discussions with a number of potential commercial partners.
