Artificial intelligence company BrainChip (ASX: BRN) has been granted its tenth US patent for “An Improved Spiking Neural Network” in October 2022. The patent protects the learning function of BrainChip’s digital neuron circuit implemented on a neuromorphic integrated circuit/system, like its flagship product Akida.
Through this patent, the Company protects a feature associated with choosing the synapses for weight variation during on-chip learning. The right combination of factors related to accuracy and efficiency is chosen that delivers valuable results during edge learning.
Its neurons and synapses are implemented efficiently for computing. The Company’s tech aims to imitate the average human brain, in that it aims to learn our ways of processing things. The solution is low cost and fully online, using very little power to function. In fact, Akida claims to detect things that the human eye and other tech often fails to. Unlike Tesla’s ghost-busting abilities, Akida can pin-point people when they aren’t visible too, like when you’re backing out of a parking space or trying to turn a corner.
While the Company’s AI solution sounds great in theory, it has had a turbulent time convincing the share market. In 2021, the Company had reported significant losses worth USD $20 million. For 2022, those losses are set to be replicated with a half year loss amounting to $8.2 million for the six months ended 30 June 2022. The Company has, however, seen a revenue uptick of over 500% to $4.8 million following its partnership with custom chip solution provider MegaChips and the licensing revenues from Akida.
The revenue growth could also be attributed to the Company’s expenses. In total, as on June 30, 2022, the Company’s expenses amounted to nearly $13 million, up 37% from $9.4 million in 2021 in the same period. Over 60% of the expenses were dedicated to sales and marketing efforts, which are largely responsible for its newfound popularity.
Though things seem to be looking up for BrainChip, the Company is wary of letting its successes get to its head. After all, when you have no tangible product or presence, it can get challenging to keep the world’s attention. Plus, with events like Covid still abound, BrainChip believes that it might affect its future earnings and cash flows.
To better prepare for future uncertainties, the Company is prioritising mergers, acquisitions and marketing efforts. In August 2022, the Company acquired the rights to patents and patent applications that were filed in 2016 by CERCO (Brain and Cognition Research Center), a public research lab based in Toulouse, France. These patents were licensed exclusively to BrainChip in March 2017.
With this new US patent in place, BrainChip’s portfolio now boasts 10 US and 1 Chinese issued patents. At the same time, the Company has 27 patent applications pending in the US, Europe, Australia, Canada, Japan, Korea, India, Brazil, Russia, Mexico and Israel. Could Akida infer what BrainChip’s future is going to look like? Perhaps it’s too soon to tell.
Alinda is a Business Reporter for The Sentiment
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