Join our daily newsletter At The Bell to receive exclusive market insights
- AI tech company BrainChip Holdings (BRN) has received the U.S. Government CARES loan of approximately $652,000
- The CARES Act is intended to protect employment during the current global crisis
- The loan may be forgiven after 60 days provided that the use of funds supports employee compensation
- BrainChip is up 2.22 per cent on the market today, trading for 4.6¢ each
AI tech company BrainChip Holdings (BRN) has received the U.S. Government CARES loan of US$412,000 (approximately AUD$652,000).
The CARES Act is intended to protect employment during the current global crisis and companies must use the money for employee payroll obligations.
The loan may be forgiven after 60 days provided that the use of funds supports employee compensation.
BrainChip employees are currently working from home during this pandemic
CEO and President Louis DiNardo says the world is experiencing a global health and economic crisis.
“In some sense, we have the benefit that our engineering team can remain productive from home because we have built an infrastructure to support ongoing technical advancement remotely,” he said.
“While challenges exist in customer interaction, we have gained momentum on the commercialisation of the Akida IP through voice and video calls with our prospective customers. This forgivable loan will help maintain our employee base while we continue to exercise cost controls,” he added.
Last week, BrainChip raised $3.12 million to support ongoing costs and the commercialisation of its Akida technology.
BrainChip is up 2.22 per cent on the market today, trading for 4.6¢ each at 12:46 pm AEST.
