In a trading update published today, UK-based machine learning company Insig AI said it would record lower-than-expected total revenue of around £1.3m for its full financial year 2024.
This is below the £1.4m it previously forecasted after two significant contracts were delayed. Meanwhile, some £0.9m of the revenue came from its previously owned legacy Sport in Schools business, which was sold in November 2023.
“Frustratingly, this revenue from the Insig AI business is considerably lower than our previously communicated target of not less than £1.4m,” the Aim-listed company said on Tuesday.
The drop in revenue comes after two license contracts worth a combined total of £1m failed to close before the end of 2024. Insig AI said these contracts are currently at an advanced stage, but their closure is not guaranteed.
Insig AI is struggling with a lack of capital due to the “delayed commercialisation” of some of its key products. To address this, the board said it had been considering a proposal for an equity funding facility of £250,000 from Richard Bernstein, the company’s executive chairman.
In return, he would get the option to buy up to 1,250,000 new shares of the company at a premium of 17.6 per cent to the recent closing share price.
Bernstein said: “We have several important proposals with strong prospects of converting into sales, with our machine learning corporate reporting database attracting significant interest from major consultancies, including two of the “Big 4” Accounting Practices.
“During this period of focus on converting these prospects into revenues, I am happy to provide equity funding at a significant premium to the current share price, to provide the team further time to realise these opportunities,” he added.
Two of the Big Four accounting firms are trialling Insig AI’s machine learning search engine, using its database of 220,000 corporate reports.