Having rebounded from a lengthy slide to soar 206% over the past month (as of market open), the Brainchip Holdings Ltd (ASX: BRN) share price is crashing today.
Shares in the All Ordinaries Index (ASX: XAO) artificial intelligence (AI) chip maker closed yesterday trading for 49 cents. In morning trade on Tuesday, shares are swapping hands for 38 cents apiece, down 22.5%.
For some context, the All Ords is down 0.3% at this same time.
This comes after Brainchip released its full-year 2023 results after market close yesterday.
Here are the highlights.
(Note, all figures in US dollars.)
Brainchip share price crumbles amid mounting losses
- Net loss after tax of $28.9 million, compared to a net loss of $22.1 million the prior year
- Trade and other receivables of $2.42 million, up modestly from $2.35 million in 2022
- Release of second generation Akida technology (Akida 2.0)
- Cash and cash equivalents of $14.3 million as at 31 December
What else happened with Brainchip during the year?
The increased year on year losses that look to be weighing on the Brainchip share price today were said to reflect lower revenue as the company shifted focus to the development and marketing of Akida 2.0.
Operating expenses also increased modestly year on year.
Cash outflows used in operating activities came to $17.5 million for the year, up from $13.6 million in 2022.
Brainchip's second-generation Akida neuromorphic AI product, Akida 2.0, became available as IP in October.
Brainchip did not secure royalty-bearing IP sales agreements in 2023. But the company noted it had "laid the foundations for future commercial success through a more focused, targeted, and qualified customer engagement strategy".
Though judging by today's selling action, ASX investors don't appear overly enthusiastic about those foundations.
2023 also saw Brainchip exit the S&P/ASX 200 Index (ASX: XJO) in September, following the S&P Dow Jones Indices quarterly rebalance.
What did management say?
Commenting on the 2023 results sending the Brainchip share price plunging today, CEO Sean Hehir said:
While the bottom-line loss increased year over year, the results reflect the large transformation Brainchip underwent in 2023 as we invested heavily in developing our second Generation Akida technology and expanded our sales and marketing capability.
Hehir noted that these investments "are indicative of our continued confidence in the market potential and our detailed plans to capitalise on that opportunity".
Brainchip share price snapshot
With today's big loss factored in, the Brainchip share price is down 26% in 12 months.
The ASX AI stock remains up 152% over the past month.
