The BrainChip Holdings Ltd (ASX: BRN) share price has more than halved in the last year.
The artificial intelligence (AI) company's share price has dropped 59% from $1.115 at market close on 13 May to its current share price of 45.5 cents. For perspective, the S&P/ASX All Technology Index (ASX: XTX) has risen nearly 12% in the same time frame.
Let's take a look at what's been weighing on the BrainChip share price.
What's been going on?
A $5,000 investment in BrainChip shares 12 months ago would now only be worth $2,050 based on the company's last closing price.
BrainChip shares appear to have tumbled amid multiple financial reports showing cash receipts far lower than the company's market capitalisation.
In April, BrainChip shares tanked amid a quarterly update showing cash inflows of US$40,000. This was when Brainchip's market cap was $804 million.
BrainChip also attracted considerable attention from short sellers in April and March, as my Foolish colleague James reported at the time.
However, early in March, BrainChip delivered some positive news to the market. The company launched its Akida platform. This technology drives edge devices for the Artificial Intelligence of Things (AIoT) solutions and services market.
Commenting on the new technology at the time, CEO Sean Hehir said:
This new generation of Akida allows designers and developers to do things that were not possible before on an Edge device. By inferring and learning from raw sensor data, we take a substantial step toward a cloudless Edge AI experience.
With this launch, we have significantly extended our competitive advantage in neuromorphic AI.
It was welcome news after BrainChip shares also fell in February. This was when the company revealed it delivered only US$250K in revenue in the second half of 2022. The company's loss after tax was US$22.1 million.
Earlier, in January, the company's share price dropped amid another quarterly update. BrainChip delivered cash receipts of US$1.164 million in the three months to the end of December. This compared to a market cap of $1.2 billion at the time.
In early December, BrainChip's CEO sold 917,025 ordinary shares worth between $664,843 and $701,524. The company's statement at that time said this was "for the purpose of meeting taxation obligation as a result of previous vesting of restricted stock units".
In November, BrainChip director Antonio Viana sold 125,000 ordinary shares at 63 cents each for the same stated reason. Directors selling off shares can sometimes be a red flag for investors who like to see insider confidence in the company.
Meanwhile, in October, BrainChip shares also descended amid a quarterly update. The company reported cash receipts of only $118,000 in the September quarter, or $39,000 per month.
BrainChip share price snapshot
The BrainChip share price has slid 39% in 2023 so far.
In the past month, BrainChip shares have lost 3%. However, in the last week, the company's share price has gained 15%.
