HA1020 Group

Video Presentation

BRAINCHIP INC.
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HA1020 Group Video Presentation 1

 Brainchip Holdings is an AI hardware and software provider headquartered in
Perth, Western Australia, with research, design and engineering centers in Aliso
Viejo California, Toulouse France and Hyderabad India.

Company
Akida NSoC and Akida Intellectual Property are the company's flagship products
in the neuromorphic computing for edge AI industry.  Akida uses spiking neural
network technology to quickly identify characteristics derived from data streams

Background (such as images from a camera or LIDAR), and it can also learn on-the-fly from
the data it receives through TCP/IP traffic.

The company derives its roots form the idea of modeling functional tech around
human biological abilities especially that of the nervous and Immune system.

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Foundations and scope
Peter van der Made, a computational
neuroscientist and former chief scientist at
IBM Internet Security Systems, created
Brainchip in 2013.

Van der Made realized that rapid parallel

processing would be too slow to execute
brain-like cognition after leaving IBM to
establish Brainchip, and by 2008 he had
solved a new design hindrance inspired by the
structure of the biological brain. In the same
year, he applied for the technology's
fundamental patent (Patent 8250011)

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Operations and Expansion

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 • In May 2020, the firm announced a collaboration with Ford Motor
company a major manufacturer to test the Akida neural network for
Advanced Driver Assistance Systems (ADAS) and Autonomous Vehicle (AV)
applications.

Major • The company announced on August 17, 2020, that it had partnered with
Magik Eye Inc., a Tokyo-based developer of 3D sensors for robots and
machines, to market a solution for object detection, object classification,
Collaboration and gesture recognition based on MagikEye's Invertible LightTM 3D depth
sensing technology and the Akida neuromorphic processor.

s • Vorago Technologies, a privately owned technology firm headquartered in

Austin, Texas that specializes in radiation-hardened and extreme-
temperature solutions for the high-reliability industry, signed up for the
Akida Early Access Program in September 2020. The collaboration's goal is
to assist a NASA Phase I programme for a spaceflight-capable
neuromorphic processor with a high degree of integration and a low
component count, size, and power consumption.

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 Patents
Brainchip holds US20190012597A1 - Method and A System for Creating Dynamic Neural Function
Libraries
most of its
asset value in US20200143229A1 - Spiking neural network
the form of
commercial and US10157629B2 - Low power neuromorphic voice activation system and method
scientific
patents over US20170024644A1 - Neural processor based accelerator system and method
most of its
technologies
US20170236027A1 - Intelligent biomorphic system for pattern recognition with
some of the autonomous visual feature extraction
notable ones
are: US20180225562A1 - System and Method for Spontaneous Machine Learning and Feature
Extraction

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Organizational structure

Founder and CTO: Peter van der Made

CEO: Louis DiNardo

Co-founder and CDO: Anil Mankar

CFO: Ken Scarince

VP of Worldwide Sales: Rob Telson

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Balance Sheets at a glance

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Income statements

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 Current Ratio
2018 2019 2020
Current $ 8,165,108 $ 8,961,245 $ 21,696,570
Assets

Current liabilities $ 952,503 $ 1,591,379 $ 5,547,487

Ratio 8.57:1 5.63:1 3.91:1

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 Debt ratio
2018 2019 2020
Total Assets $ 10,165,636 $ 11,142,502 $ 23,694,895

Total Liabilities $ 1,286,327 $ 2,046,152 $ 5,965,559

Ratio 0.12:1 0.18:1 0.25:1

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 Debt-service coverage ratio

2018 2019 2020

Net operating loss $ (16,523,186) $ (11,310,062) $ (26,822,049)

Total Liabilities $ 1,286,327 $ 2,046,152 $ 5,965,559

Ratio -12.85 -5.52 -4.50

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 • Current ratio is calculated by dividing the current
assets by the current liabilities and it depicts the
liquidity position by comparing liquid assets (short
term) with short term liabilities.
Interpretatio • Ideally current ratio should not be less than 1.
Which would indicate that the business would not
n of be able to pau off its short term liabilities. In this
case the current liabilities should be handled with
Financial care and expenses need to be cut.
Ratios • If it is more than one or one it is said to be ideal
and a good balance always goes a long way to add
financial utility and health to the business.
• If the number is more than one it also points to
good lending capacity of the business and high
liquidity.

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 •The ratios for the year 2018,2019 and 2020 for
Brainchip Inc. are 8.57:1, 5.63:1, 3.91:1 respectively.
This points to decreasing liquidity over the years as
Interpretation Brainchip is increasing lending as per research
progression but still maintains a high current ratio
of Current and can continue to lend more funds over the years.
ratio •The current asset pool has not seen a stark rise
considering the company is still at its research phase
and has not initiated supply operations.

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 • Total debt ratio measures the extent of leverage
used by a company in terms of total debt to total
assets by comparing them.
Interpretatio • Debt ratio of greater than 1 indicates a company
has higher debt than assets and less than one
n of indicates that the company has more assets than
Financial debt.
• Debt ratios can be industry specific.
Ratios • Used in conjunction with other measures of
financial health, the debt ratio can help investors
determine a company's risk level.

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 •The Total debt ratios for the year 2018, 2019, 2020
for Brainchip Inc were 0.12:1, 0.18:1 and 0.25:1.
Interpretatio • The organisations assets are many times more than
n of Total their total debt, this is owed to the massive equity
investment by the founder as well as the Grants as
debt well as the IPO. The company has a pristine asset
valuation which is considerably suitable for R&D
Ratio companies like brainchip that only have operating
losses every year.

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 Briefly describe Is the selected
your group’s company
conclusions about performing well
this company. financially?

Conclusio
n What are the
What are the
likely future
challenges for this
areas of concern company based
and/or what are on the ratio
the highlights? analysis you have
performed in your
groups ?

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