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Bluechiip Ltd (BCT.AX) Quarterly Activity - Cashflow Report

·4-min read
Bluechiip Ltd
Bluechiip Ltd

Bluechiip Ltd (BCT.AX) Quarterly Activity - Cashflow Report

Melbourne, Australia, Jan 29, 2021 - (ABN Newswire) - Bluechiip Ltd (ASX:BCT) sales and marketing teams both in Australia and the United States continue to make progressive negotiations with potential OEMs especially in the IVF and Cell Therapy markets despite current COVID-19 travel restrictions. The Company successfully delivered sales of $27K in developer kits through its distributor in China and Czech Republic and achieved sales of $31K for the quarter ended 31 December 2020.

Ongoing improvements to the chip performance and efficiency activity continue to dominate the cash outflow over the last 2 quarters. During the quarter, R&D expenditure and staff costs continue to be amongst the major cash outflow items - $361K and $513K respectively. The company expects to receive a refund for both activities of 43.5% in the form of 2020/2021 R&D Tax Incentive from the Australian Government. The current quarter outflows have been mitigated by customer receipts of $31K and government grants of $146K. Overall, the quarter saw net operating cash outflow come down from $1,281K in the previous quarter to $1,042K. Bank balances stand at $3.6m and an additional $2m is held in a bank term deposit.

The Company continues to respond to market conditions by progressively reviewing several measures implemented including:

- Executing on potential opportunities in the US, including evaluation systems into customer sites through our sales and marketing team based in the US;

- Progressing towards partner agreements with potential OEMs including in the IVF market, Cell Therapy and target Biobanking space, all of which have seen market interest for the Company's products and solutions;

- Focusing R&D activities on improving the quality, performance, and scalability of chips. This is expected 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;

- Focusing on progressing the development of a Bluechiip Enabled range of consumables for the Biobanking market which Bluechiip intends to market directly in North America and Australia New Zealand and through distribution partners globally;

- Continuing from the previous quarters with reallocation of the technical sales team resources to R&D activities with the aim of further improving our products; for example, improving our multi vial readers' functionality by addressing market feedback 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;

- Managing existing cash reserves and allocating to evaluated R&D activities expenditure in line with overall Company's strategy;

- Managing the scale of production in response to the slowdown in sales activity, while continuing to build stocks with the expectation that when markets normalise, Bluechiip is well positioned for a return to growth; and

- Working with patent adviser on further patent applications to add to Bluechiip's existing 9 patent families comprising 25 granted patents.

To view the quarterly report, please visit:
https://abnnewswire.net/lnk/IJ28N630


About Bluechiip Ltd:


Bluechiip Ltd (ASX:BCT) 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:

Lee Mitchell
Company Secretary
Bluechiip Limited
E: leem@nrlawyers.com.au
T: +61 (0) 3 9640 0400

Source:
Bluechiip Ltd

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