*Here’s a detailed summary and forward outlook for BrainChip’s March 2025 Quarter:
BrainChip (ASX: BRN) Q1 FY25 – Detailed Summary
1. Commercial Progress
| Area | Key Details |
|---|
| Space Sector | - Frontgrade Gaisler (FG) licensed Akida IP.- Swedish National Space Agency awarded FG a contract to develop the first neuromorphic System-on-Chip (SoC) for space (GRAIN product line).- The flagship GR801 SoC will combine FG’s NOEL-V RISC-V processor + Akida.- Enables energy-efficient AI for space missions (small size, low power). |
| U.S. Defense | - Awarded a $1.8M contract by the U.S. Air Force Research Lab for neuromorphic radar signal processing.- Raytheon (RTX) officially named as a subcontractor with BrainChip.- Program: "Mapping Complex Sensor Signal Processing Algorithms onto Neuromorphic Chips." |
| Healthcare Collaboration | - Onsor Technologies (Oman) partnership for a wearable seizure prediction system using Akida and EEG glasses.- Initial seizure prediction accuracy >95% with incremental learning to improve personalization. |
| Radar/Surveillance | - Information Systems Laboratories (ISL) partnership for AI radar solutions (including drones, space, undersea).- ISL to integrate Akida into advanced radar R&D platforms. |
2. Corporate and Financials
| Area | Key Details |
|---|
| Cash Position | - End of March: $16.98M USD (down from $20M in Dec 2024).- Cash burn for quarter: ~$4.1M operating cash outflow. |
| Funding | - Extended Put Option Agreement with LDA Capital (must raise AUD $20M minimum by June 2026).- $1.19M raised this quarter from LTIP stock options and vested equity sales. |
| Expenses | - $4.9M spent on suppliers and staff (higher than last quarter mainly due to employee bonuses).- Payments to Directors: $441k. |
| Cash Flow | - Receipts from customers were $0.14M (up from prior quarter but still low).- $0.54M in expected engineering revenue was delayed until after quarter end (impacting cash inflow). |
| Funding runway | - Estimated 4.3 quarters of funding left at current burn rate (~1 year). |
3. Strategic Developments
| Area | Key Details |
|---|
| Redomicile to USA | - BrainChip announced it is evaluating redomiciling from Australia to the USA.- Would involve ASX delisting and listing on a U.S. exchange.- No formal decision yet; would require shareholder and court approval. |
| Marketing/Visibility | - Embedded World 2025 (Germany): showcased Akida 2.0 in gesture recognition demos with Prophesee's event-based vision sensors.- Demonstrated Edge LLM model using Temporal Event-Based Neural Networks (TENNs). |
| Technology Push | - Strong emphasis on combining Prophesee's sensors + Akida to open new markets (e.g., industrial automation, security, IoT, autonomous vehicles).- Highlighted low-latency, ultra-low power, and event-driven processing advantages. |
Forward Outlook
| Area | Outlook |
|---|
| Bookings Growth | CEO expects substantial increase in commercial bookings in 2025 vs 2024.- More contracts expected to close in second half of 2025.- Momentum building with space, defense, and healthcare verticals. |
| Space Sector Expansion | The GRAIN product line from FG will use Akida for multiple future space SoCs.- This could expand Akida's footprint into institutional space missions, satellites, and low-orbit communications. |
| Defense Sector Penetration | Partnerships with Raytheon and ISL open doors to major defense opportunities.- Success with the U.S. Air Force SBIR program could trigger Phase III follow-on contracts and larger deployments. |
| Medical AI | Early success with Onsor's seizure prediction product could validate Akida in medical wearables.- If efficacy is proven in real-world trials, it may unlock broader health tech applications (Alzheimer's, cardiac monitoring, etc.). |
| Redomiciling Decision | - A U.S. move could unlock access to larger capital markets, strategic investors, and U.S. government contracts.- However, there is execution risk around shareholder approvals and transitional costs.- Expect final decision announced second half of 2025. |
| Cash Management | - Cash burn will remain a focus; future cash raises (via POA or capital raising) are still a possibility if new contracts don't accelerate revenue fast enough.- Delayed customer receipts ($0.54M) should partially boost the June quarter cash inflows. |
| Technology Leadership | - Strong push to market Akida 2.0 and TENNs for embedded AI use cases.- Event-driven processing + Prophesee partnership may create early leadership in next-gen industrial AI and automotive safety sectors. |
Quick Summary Table
| Metric / Event | Status |
|---|
| Cash balance | $16.98M (March 2025) |
| Cash burn | ~$4.1M/quarter |
| Runway | 4.3 quarters (approx. 12 months) |
| Bookings outlook | Higher bookings expected in 2025 |
| Major partnerships | Frontgrade Gaisler (space), Raytheon (defense), ISL (radar), Onsor (healthcare) |
| Redomiciling | Under evaluation (decision by late 2025) |
| Technology milestones | Embedded World demos: Gesture recognition + Edge LLM with TENNs |
| Financing | POA with LDA Capital (AUD$20M by mid-2026) |
| Risks | Cash burn vs. revenue timing, execution risk in redomiciling |
Conclusion
BrainChip's March quarter shows meaningful strategic progress — space, defense, radar, healthcare, and embedded AI are all active and growing.
Revenue conversion and managing cash will be the next key tests.
If they close more contracts in H2 2025 and execute a successful U.S. redomicile, BrainChip could significantly strengthen its global positioning.
*gpt4o
(20min delay)