Financials

[Dave Evans]

I began this thread by posting BRN’s financial status in December 2024 but ended up deleting most of my posts as the BRN brain trust (who love to pump the speculation, brag about bullshit, show their high level of immaturity and hate anyone who criticises the BOD or mentions the financials) thought they’d turn it into a bullying thread

It will be interesting to see where the share price will end up and how the retail investors (who believed the hype and pumping) are faring by the time FY2027 arrives

 

[Dave Evans]

Thanks JDelecto for your reply that I’ve posted below

Regarding the company financials, I'm accustomed to technology companies in the United States operating in the red for several years before they become profitable. BrainChip's choice to use LDA Capital early on to cover operating costs, diluting the value of the stock is annoying at best. I hope the company can live to see a level of profitability and buy back a good portion of those shares.

Full disclosure: I am not a professional investor. I have a technical background and have followed AI technologies since the 90s. I was excited about neuromorphic technology and ran across BrainChip several years ago. Being a fan of the technology, it was serendipitous that shares were selling @ 0.04 USD at the time, so I began converting other shares of stock I had into shares of AZKLF (which was BrainChip's ticker on the OTC Markets at the time). I have a significant long-term holding and with a sense of how long it takes emerging technological paradigms to take hold in the market, my position has been to hold my shares until 2025 and re-evaluate the investment at that time.

While I managed to acquire a large number of shares initially, I've continued acquiring them, averaging up (unfortunately), especially after the Mercedes announcement at CES 2022. While I'm still in the red on my investment, I've seen patents granted for BrainChip's technology, several partnerships established, a couple of IP sales, and their recent contract with AFRL. Both IP sales were for the AKD1000 1st generation technology, which I maintained was not a failed product and is still relevant.

While Sean Hehir noted in a podcast that the AKD1000 chips were for demonstration purposes, he was 100% correct. BrainChip manufactured those chips to demonstrate the IP on silicon, and its main business focus has been licensing that IP to Tier 3 suppliers who incorporate it into their integrated circuit designs to sell down the chain. MegaChips, for example, has invested quite a bit of money into the IP for one of their custom video processing solutions. One thing we may never know (without someone doing a teardown), is where this IP will be used, and the only evidence of its use will be in the form of revenue received by the company.

I'm still giving 2025 a chance, but the opportunity cost is high thus far. With the portion of the commercial market that BrainChip has been targeting (the low-level suppliers), they can stand to win pretty big if they land the right IP license. There are many applications for neuromorphic hardware with a reduced SWaP-C (size, weight, power, cost) to which BrainChip's IP can adapt. It needs industry adoption, and I think interest is starting to pick up.

In summary, I'm invested based on the technological merits of the product and I am speculating that it will eventually make the company profitable, but like many other technology companies, taking on losses and finding creative ways to raise capital and keep the doors open until either they succeed spectacularly or fail miserably.

I have made a long bet that it would be the former.

 

[DingoBorat]

Haha you must be really worried "Dave" ..

Should call this the thread for shareholders worried about the price going up..

I smell another IP deal coming.

 

[Investig8ed]

Thought I’d start a thread on some of BRN’s financial factors where I can add any info I find relevant away from the discussion thread and personal attacks. Don’t care if no one on the forum reads this one, it’s basically for my own research. I’ll add any good info I pick up from from the main thread and ignore the rest.

Last two days have been good ones for BRN, up to $0.31 (20% and 5%). Could be related to the US averting a shutdown and good inflation results but the chippers seem to think it relates directly to BRN.

Might have to start keeping an eye open on macro economics and what’s going on in the markets more broadly, anyway back to BRN

BRN’s operational losses over the past 5 years (shown below) are over US$100million

2019 were US$11.31million
2020 were US$26.82 million
2021 were US$20.98 million
2022 were US$22.07 million
2023 were US$28.88 million

BRN is looking at another year of operational losses, already over US$11 million in the 2024 Half Yearly Report.

Millions of shares in remunerations going to KMP and share based expenses are costing millions

2019 - US$ 1.63 million
2020 - US$ 1.43 million
2021 - US$ 4.36 million
2022 - US$ 9.14 million
2023 - US$11.35 million

US$20 million is a lot of money in share based expenses for a company with operational losses of over US$100 million in the same period and half a billion market cap valuation seems high considering US $100 million operational losses, share dilution, multiple capital raises and low revenue

View attachment 74689

The last jump to $0.30c was after news of hearing aid company Starkey using AI but it had nothing to do with BRN and the SP dropped back to $0.23 within two weeks.

Despite what chippers say there’s always plenty of liquidity and plenty of shares on offer.

@Dave Evens
I can see your concerns about the extra SOI and the cash burn BRN have produced over the last 5 years.
Is there a better way to fund this company until we become successful.
Or is PVDM reason for keeping it out of venture capital nonsense.

 

[DingoBorat]

This guy is so happy about BrainChip's performance today and how much his 160000 shares have increased in value, that he's decided to start a new thread on "our" operational losses, on New Years Eve!

Dude I can smell the fear on you "Dave".


Tell you what, I do think the big boys were rattled today, when the second surge happened and all the "walls" which were put up, were gladly gobbled up, by who knows who..

That's the Big Question.

Where did the insatiable hunger for BrainChip stock come from?

It is not just better maket conditions, as you alluded to, in my humble opinion.

 

[Dave Evans]

@Dave Evens
I can see your concerns about the extra SOI and the cash burn BRN have produced over the last 5 years.
Is there a better way to fund this company until we become successful.
Or is PVDM reason for keeping it out of venture capital nonsense.

Thanks mate, obviously it’s the CFO and BOD’s decision how to fund the company and each shareholder has their own view.

All I’m doing is keeping a record of the financials

 

[IloveLamp]

 

[Pom down under]

So are you trying to tell us something we already don’t know, so thanks for your advice I’ve just increased my sell order for $7 to $15

 

[Ethinvestor]

I think he is just a young guy who didn’t realised in the beginning that there is much more seasoned investors here and now he just can’t let it go… so better not even comment.. waste of time even reading it…

 

[Doz]

 

[manny100]

Most great companies start off as specs and those that buy early make a fortune.
Quote from Wiki on NVIDIA.
" The sense of extreme desperation around Nvidia during this difficult era of its early history gave rise to "the unofficial company motto": "Our company is thirty days from going out of business".[34] Huang routinely began presentations to Nvidia staff with those words for many years.[34]"
........................ and NVIDIA SOI = " According to NVIDIA 's latest financial reports and stock price the company's current number of shares outstanding is 24,533,000,000."
We have a paltry circa 2 bill.

 

[IloveLamp]

View attachment 74722

 

[Guzzi62]

The last 6–7 posts were quite good.

I won't be reading any more posts on this tread.

DE goes on ignore, not wasting any time reading your posts about operating expenses, that you call losses?

Dude really? It not losses, but money spent on devolvement- university programs and interactions with potential customers. To do that you need people and those people expect to be paid. In order to lure the best talent, you need to give them an attractive package, even before the company is profitable.
That's all I have to say about that!

Over and out!

 

[Bravo]

I’m equally as happy when people put me on ignore as when I put other people on ignore, saves a lot of unnecessary nonsense getting posted and I only have to read comments relevant to BRN written by intelligent investors.

Wannabe bullies, pack mentality and petty tyrants often try to act tough on forums, possibly as a result of not spending time in the real world. Regulations for online forums provide ignore and block options that act in a similar as fly spray so people can read the information they choose, which on this thread will be BRN’s financials.

I’m even interested to see the comparison between Nvidia and BRN, only at this stage I don’t believe you can make a comparison between the two

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Hi @Dave Evans,

I can give you a comparison between NVIDIA and BrainChip but you have put me on ignore. I am the last one you showed here on your ignore list on this post:

• #11

I think you might have reported me and put me on ignore because I accidentally posted my movie review of "La Palma" to this thread instead of posting it on the "BRN Bar" thread. I've asked Zeebot if he can recover it and put it onto the correct thread because I thought it was not a bad review, even if I do say so myself.

Anyway, to address matters at hand, here is a comparison of NVIDIA and BrainChip.

Someone else might need to re-post this post #85,444 so Dave can see it, given he's put me on ignore.

 

[Pom down under]

I’m equally as happy when people put me on ignore as when I put other people on ignore, saves a lot of unnecessary nonsense getting posted and I only have to read comments relevant to BRN written by intelligent investors.

Wannabe bullies, pack mentality and petty tyrants often try to act tough on forums, possibly as a result of not spending time in the real world. Regulations for online forums provide ignore and block options that act in a similar as fly spray so people can read the information they choose, which on this thread will be BRN’s financials.

I’m even interested to see the comparison between Nvidia and BRN, only at this stage I don’t believe you can make a comparison between the two

View attachment 74736 View attachment 74737 View attachment 74738 View attachment 74739 View attachment 74740

 

[DingoBorat]

Manny100’s comparison

NVIDIA has circa 24.8 billion shares on issue. BRN has circa 2 billion shares on issue. NVIDIA has 12.4 times the number of shares on issue that BRN has.

At a current circa SP of $US140 for NVIDIA at their current market cap if they had the same number of SOI that BRN has their SP would be circa $140 x 12.4 = $US1736.

On 30/4/12 NVIDIA had circa 25 billion shares on issue with as SP of US 32.5 cents!!!

So what's your point Dave?...

Are you predicting US$140 or US$1736 per share for BrainChip? ...
Edit (I now realise you were just copying and pasting Manny's post here, but that would have been clearer, if you put the text in italics and quotation marks, as there is no distinction between what Manny has said and whether you have added your own opinion).

But still, you don't seem to have even a basic understanding of Supply and Demand dynamics, or human psychology, when it comes to how people/the Market, value companies (especially Technology).

But in your defence, even professionals can be completely wrong, for a long time.

Cathy Woods of ARK for example, dumped Nvidia shares, just before them spiking "initially" 160%, calling the Company "overvalued".

Cathie Wood says ARK dumped Nvidia shares before 160% surge because it’s ‘just pivoting’ to other A.I. plays | Fortune

Nvidia gained more than half a trillion dollars in market value after her flagship ETF cut its holdings in January.

fortune.com

The point Manny was making, if you had much knowledge of how Technology Companies are valued vs Mining companies, is that circla 2 billion shares on issue, for a Global Technology Company, is not a large amount.

Which is why I believe, there will most probably be a "share split" in the Future, on the cards for BRN shareholders.

This will most likely coincide, with a NASDAQ listing.

A NASDAQ listing, puts BrainChip in the sights of a whole nother breed of institutional investor and yes, shorting and manipulation will still be there, as it is with any Major Technology Company, but they won't be like the current low level chumps of the ASX and the share price will be in multiple dollars (after the split to boot).

Everything I've said about the NASDAQ, is obviously forward looking and completely dependant on BrainChip securing large IP contracts, of high volume products, with large terrestrially focused Companies.

I know for a fact though, that arrangements were made, for a possible Future NASDAQ listing, around 3 years ago, before Russia invaded the Ukraine and turned the whole World upside down.

Business confidence is becoming much higher now, with the prospect of Trump's influence on the World stage (there were no major wars during his last Presidency, which was testament to his "Peace through Strength" philosophy, or Peace through being unpredictable, how ever you want to look at it).

Ben Shapiro (who you may have heard of, very smart guy) recently told of a story of speaking to Trump, about why Putin didn't invade the Ukraine while he was in office.


(sounds like he's "channeling" the late Great Robin Williams, when he says "this could get ugly" ).

An in plain sight example, of increased business confidence, is Softbank's promised 100 billion US dollar investment, over 4 years, to create 100,000 jobs focused on artificial intelligence and related infrastructure.

BrainChip, has secured a front seat, in the coming A.I Revolution.

 

[HopalongPetrovski]

Yes.
Your own little thread where you can talk amongst your selves seems most appropriate. Enjoy

 

[Pom down under]

And just like that his vanished

 

[Pom down under]

Not a good look when a NED dumps his vested shares, especially when he’s a member BRN’s audit and governance committee and chair of BRN’s remuneration and nomination committee

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All together now

And his is a Ms

 

[Pom down under]

BRN’s December Quarterly out today

https://announcements.asx.com.au/asxpdf/20250128/pdf/06dw58dyyzp7td.pdf

R&D, marketing and administration costs for 2024 were $15.8million. When the share based expenses come out in next month’s Annual Report it will fully reveal BRN’s operational losses for 2024.

A few takeaways from this and other recent BRN Quarterly Reports show the Capital Raise in July - August 2024 raised $25million but by the time the September Quarterly came out it showed that was all BRN had left in cash.

The September Quarterly also showed BRN had 7.7 Quarters of funding available but the latest (December) Quarterly shows BRN only has 5.1 Quarters of funding.

Some of that heavily diluting CR in July - August 24 went towards payments to LDA Capital to fulfill obligations under its Put Option Agreement. And then this month BRN amended the LDA arrangement (for the fourth time) increasing it to $140million and further diluting shares. Of that $140million, $68million has already been used.