Among quarterly 4C filings, AI chip technology company Brainchip (ASX:BRN) was always going to be closely watched.

The company’s Q4 update this morning showed it reported cash receipts of US$1.097m to December 31, up from US$112,000 in the September quarter.

Cash expenses of more than US$4m saw net operating cash outflows come in at US$3.416m, up slightly from the US$3.963m that BRN spent in the prior quarter.

After ramping above $2 as the hottest stock on the ASX to start the year, BRN shares fell by more than 30% over the previous four trading days as markets tanked.

But following its trading update, investors crept back into the stock in morning trade. A short time ago it was trading ~2% higher at ~$1.46, after initially jumping to ~$1.60 at the opening bell.
 

Brainchip 4C filing

Along with its quarterly numbers, Brainchip summarised its Q4 trading activity which included receipt of the first batch of its Akida AKD1000 neuromorphic processor chips from contract manufacturer Socionext America.

“This success has allowed the Company to commence taking orders of the Akida development kits from its partners, large enterprises and OEMS (original equipment manufacturers) for their own internal testing and validation,” BRN said.

It also signed a four-year licensing deal with the Tokyo-listed Megachips that BRN said will be revenue-generative, and gives Megachips an exclusive worldwide IP licence to integrate the AKD1000 into its product suite.

BRN hired a new CEO (Sean Hehir), after previous CEO Louis DiNardo stepped down suddenly in March, and said it also secured three more US patents — which along with another one in January bring its total of Akida-related patents to eight.

In capital markets, the company extended its complex equity financing structure with US company LDA Capital, which increased LDA’s total capital commitment to $65m with a minimum draw-down obligation of $30m.
 

Crunching the numbers

Despite a busy quarter and a heady run up in its share price, not all investment commentators were glowing in their assessment of BRN’s quarterly numbers.

Although BRN went through north of US$7m in cash over the previous two quarters, the Brainchip 4C showed its near-term runway looks secure with a US$19.367m of cash sitting in the bank as at the end of December.

Brainchip also released an updated share register showing its Top 20 shareholders.

Co-founder Peter Van De Made has the biggest stake with a 9.35% shareholding. The next 11 positions are held by nominee institutional investors, who hold shares on behalf of clients.

Ex-CEO Louis Di Nardo is also on the list with a 0.69% stake, followed by LDA Capital which holds a 0.59% stake.
 

Elsewhere in ASX semiconductor stocks

With Q4 quarterlies season kicking off, fellow ASX semicondcuctor play Bluechiip (ASX:BCT) also released its trading update this morning.

The company booked operating cash outflows of $880,000, with receipts from customers of $192,000. It finished the quarter with $4.013m in the bank.

Among its quarterly highlights, BCT said it achieved CE IVD certification and FDA registration for direct sale into Australia/New Zealand and North America respectively, across its “full range of Bluechiip products including Bluechiip Enabled storage consumables, readers and software”.

In October, BCT also secured a a two-year Licence and Development Agreement with California-based FUJIFILM Irvine Scientific.

As part of the deal, FUJIFILM will pay BCT an undisclosed licensing fee in return for the use of Bluechiip Enabled technologies in the assisted reproductive technology (IVF) market segment.

During this period, the two companies “will negotiate and seek to agree a supply agreement for the sale and distribution of the customised Bluechiip Enabled products including minimum volumes, pricing and detailed commercial terms”, Bluechiip said.