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Bluechiip Ltd (ASX:BCT) Quarterly Report

Melbourne, Australia, Jan 29, 2020 - (ABN Newswire) - Bluechiip Limited (ASX:BCT.AX - News) today released its quarterly cash flow report for the quarter ended 31 December 2019.

Corporate and Business highlights

- Completed Placement and Share Purchase Plan which successfully raised $4.676m and $4.495m respectively

- Received Research & Development (R&D) Tax Incentive 2018/2019 refund of $1.233m from AusIndustry's R&D Tax Incentive program

- Cash position significantly improved cash holding increased from $2.801m to $10.733m as at 31 December 2019 with no borrowings

- Increase in R&D activity for improvement to the chips, and scalability of chip production and readers to address market feedback

- Continuous inflow of sales receipts from customers

- 35 developer kits now in marketplace with 3 converted in to OEM agreements

- Implementation in progress of Quality Systems to meet ISO 9001 compliance

Additional information

The Company recorded net sales revenue of $38K and sales receipts of $272K for the quarter, mainly from the sales of chips, readers, software and services in prior quarter.

Sales delivery during the quarter was affected by logistical issues a slow down at a contract manufacturer for one of the processes, which both have now been remedied.

An increase in R&D costs to $1,404K during the December 2019 quarter attributable to research on and improvements to the scaling of chip roduction. However, net operating cash outflow for the quarter reduced to $911K from $1,072K (September 2019 quarter), primarily due to the approved R&D Tax Incentive 2018/2019 of $1.233m received in December 2019.

Outlook

The Company remains focused on:

- Fulfilling the orders received from the secured OEM Agreements that have entered the commercialisation phase

- Working closely with existing manufacturers rapidly scaling production of chips and readers to meet purchase orders and accommodate growing demand

- Converting starter kit purchasers to OEM or full customer status

- Increasing R&D activity on our chips to attain higher quality and yield with the aim of achieving economies of scale and lowering production costs as the Company approaches full volume production up to and over 5-10 million chips per year

- Developing the pipeline of OEM partners, particularly in the US market, to advance negotiations and secure new license agreements for Bluechiip's technology

- Conducting further R&D to meet current and potential OEM partners' requirements, arising from the sales of developer kits in previous quarters. The developer kits enable potential OEM partners to integrate Bluechiip's technology into their own products

- Progressing work on further patent applications to add to Bluechiip's existing 9 patent families comprising 25 granted patents

- Ongoing implementation of Quality Systems to meet ISO 9001 compliance

To view the quarterly report, please visit:
https://abnnewswire.net/lnk/29F8VNT8


About Bluechiip Ltd:

Bluechiip Ltd (ASX:BCT.AX - News) has developed a wireless tracking solution for the healthcare and life science, security, defence and manufacturing industries which represents a generational change from current methods such as labels (hand-written and pre-printed), barcodes (linear and 2D) and microelectronic integrated circuit (IC)-based RFID (Radio Frequency Identification).

The unique tag is based on MEMS technology and contains no electronics. The tag can either be embedded or manufactured into a storage product, such as vials or bags. Easy identification, along with any associated information from the tag such as temperature can be detected by a reader, which can also sense the temperature of the tagged items. The traditional identification technologies have significant limitations. Whereas a barcode requires a visible tag or line-of-sight optical scan, bluechiip(R) technology does not. Unlike labels, barcodes and RFID, the bluechiip(R) technology can sense the temperature of each item a tag is attached to, or embedded in.

The bluechiip(R) technology has initial applications in the healthcare industry particularly those businesses which require cryogenic storage facilities (biobanks and biorepositories). bluechiip(R) offers the only technology that enables accurate and reliable tracking of products including stem cells, cord blood, and other biospecimens. In addition to functioning in extreme temperatures, the bluechiip(R) tracking solution can survive autoclaving, gamma irradiation sterilization, humidification, centrifuging, cryogenic storage and frosting.

The bluechiip(R) technology has other healthcare applications in pathology, clinical trials and forensics. Several other key markets outside of healthcare include cold-chain logistics/supply chain, security/defence, industrial/manufacturing and aerospace/aviation.

Further information is available at http://www.bluechiip.com

Contact:

Andrew McLellan
Managing Director / CEO
Bluechiip Limited
Ph: +61-457-823-470
Email: andrew.mclellan@bluechiip.com

Media
Richard Allen
Ph: +61-3-9915-6341
Oxygen Financial PR
Email: richard@oxygenpr.com.au

Source:

Bluechiip Ltd

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