BrainChip Holdings Ltd (ASX: BRN) had some good news out of the US this morning; its neuromorphic technology received a new export classification from the Bureau of Industry and Security (BIS).

The EAR99 means BRN no longer needs pre-approval from the US Department of Commerce to market its technology overseas.

Markets assessed that the new designation was a material development for Brainchip, which develops AI computing technology based on the biology of the human brain.

BRN shares rose more than 14.5 per cent in morning trade to 6.3 cents:

Brainchip CEO Louis DiNardo said the approval gives the company a leg up on its competitors in the emerging tech space who haven’t yet received the same designation.

“An EAR99 classification from the U.S. Government will further fuel our commercial momentum with target customers, particularly across Asia,” DiNardo said.

The company said it is targeting high growth companies in countries included Japan, Thailand, China and South Korea.

Brainchip received the EAR99 for two products; the Akida Neuromorphic System-on-Chip (NSoC) and the BrainChip Akida Development Environment (ADE).

The Akida technology is complex; an AI-based computing solution based on spiking neural networks (SNNs), which are calculated using a logical algorithm derived from the neural networks of the human brain.

While traditional computers shuttle information between central processing unit and the memory storage, neuromorphic chips process and store this as an integrated part of the same operation.

The company says the aim of its technology is to create a low-power alternative that can compete against “large carbon footprint” data centres.

Brainchip’s latest 4C filing showed it booked $195k worth of customer receipts in 2019, but only $4k in the December quarter.