BRN Discussion Ongoing

Fact Finder said:

Ok the best way to answer your question is it reasonable to posit chip production OR no income is to read closely the actual announcement:

“The Capital Call Notice pricing period will begin upon exercise of the put option on or around 11 January, with an anticipated ending date in late March or early April, subjectto adjustments based on the share price performance throughout the pricing period.”

The capital raise is not proceeding until end of March early April and may be subject to adjustment subject to the share price - No urgency and only if share price is reasonable

“The issue price for the capital call shares will be 91.5% of the higher of the average daily VWAP of shares over the pricing period (subject to any applicable adjustments) and the minimum price notified to LDA Capital by the Company.” - LDA Capital used to receive 10% commission but now only 8.5% commission. The higher the sale price they achieve the more they make in commission so incentivised to achieve highest price. Brainchip set a floor price for the sale below which LDA Capital cannot sell.

“As of the date of the capital call notice, available funding under the agreement amounts to $27.9M while the company is committed to drawing down a minimum of $15M no later than 31 December 2023.- They we’re going to have to do it under terms of agreement at some point. So they have chosen to do it in the month the next 4C is due and before the AGM when they have asked to be judged on their performance. It seems an overly pessimistic position to take that it is all going to be sh.t till end of 2023 given they could have easily delayed until after 4C and AGM and fluffed their way through.”


“The proceeds raised from the capital call will be used to accelerate our innovation of the groundbreaking Akida technology as we extend our industry leadership in Edge AI.”
- Money well spent I would argue. Maintain and extend proven technology lead. Just makes sense and increases shareholder value.

“ In 2023 the company will tape out another chip and release significant enhancements to our IP offering”, said BrainChip CEO Sean Hehir.”- It is not speculation a chip is going to be manufactured. No mention of engineering sample or other qualification. The only speculation is quantity. AKD1000 first production run was about 7,000.

“Mr. Hehir went on to say “Additionally, we will further expand our go-to-market capabilities by hiring sales personnel in key international markets, as well as increase our domestic sales and marketing headcount.” - What seems an unreasonable view to take is that a company with a history of belt tightening and fiscal restraint would knowing things are going nowhere would be on a recruitment drive for sales people around the globe.

When tech giants are reportedly putting off staff they could easily have told shareholders if things were grim as you posit they are pulling back reducing staff and overheads across the board but instead they are spending to grow the whole company.

I personally just cannot understand anyone finding negatives in the above.

My opinion only DYOR
FF

AKIDA BALLISTA

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Bravo said:

Sorry, this is a tiny bit off topic so apologies in advance but I seriously wonder now how I ever got by with out having ChatGPT in my life because it is literally a font of useful and practical information. Who even knew you could wash your socks in vinegar?

However, in other sightly more relevant news, Apple are going to phase out Broadcomm and Qualcomm chips. If Apple wants to reduce it's reliance on Qualcomm, then they might need to fill the gap somehow. Wink, wink, nudge, nudge.


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skutza said:

Maybe I'm way off the Mark here, but I get the feeling that BRN'S AKIDA was not needed. However it feels like all the companies that come across AKIDA are understanding what it can help them achieve so now they're going back to the drawing board and redesigning what they do now they can push their limits much further, thus it's taking time to get this company some revenue. I see it as PDVM has actually reinvented the wheel and so now people are working on products that can utilise the new 'wheel'. PDVM is so far ahead he has had to pull the handbrake and wait for Clients to jump on his ever moving bus. In my youth I taught English and Golf in Japan. Good gig in those days. An ex-sony head (Osaka office) was a student. We would discuss tech and he didn't tell me what, but they had years of tech sitting there waiting to be released, at the right time. I feel Brainchip are at this stage, maybe AKIDA 2000 is waiting in the wings for others to catch up?

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GrandRhino said:

Hey @TechGirl, good find!
It's not password protected for me, maybe they just unlocked it?

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Damo4 said:

Do you guys mind starting a GPT-3 thread for this stuff?

I fully understand it's just for a bit of a laugh, and I wish I didn't hate it, but I really hate seeing it.
Not trying to start anything, it's not a dig, I just think that program will generate a random story and then focus on making it believable.

Edit: obviously if I'm outspoken then that's ok, please continue, I just feel like a few of us don't really love seeing it.

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GrandRhino said:

Hey @TechGirl, good find!
It's not password protected for me, maybe they just unlocked it?

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robsmark said:

his performance has been questionable

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wilzy123 said:

What on (or off) earth are you basing this on?

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robsmark said:

Hey FF,

All valid points, but the fact is that at this stage it’s just words and assumptions from all parties - inclusive of Brainchip.

At the last AGM Sean quoted that he will be judged by his performance by the next AGM, and the reality is that his performance has been questionable. We haven’t seen a single new customer since MegaChips which was likely signed prior to his engagement.

This is what we know, as this is what has, or hasn’t as the case is, been announced to the market via the ASX. Forgive my bleak view, but again, this is the actual state of affairs.

I’ll be watching the financials with great interest and eagerness, as our CEO advised. This next quarterly need to show significantly increased revenue or again it just proves that talk is cheap.

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robsmark said:

Hey FF,

All valid points, but the fact is that at this stage it’s just words and assumptions from all parties - inclusive of Brainchip.

At the last AGM Sean quoted that he will be judged by his performance by the next AGM, and the reality is that his performance has been questionable. We haven’t seen a single new customer since MegaChips which was likely signed prior to his engagement.

This is what we know, as this is what has, or hasn’t as the case is, been announced to the market via the ASX. Forgive my bleak view, but again, this is the actual state of affairs.

I’ll be watching the financials with great interest and eagerness, as our CEO advised. This next quarterly need to show significantly increased revenue or again it just proves that talk is cheap.

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robsmark said:

Deliverables.

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wilzy123 said:

What on (or off) earth are you basing this on?

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robsmark said:

Deliverables.

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BaconLover said:

I wouldn't go to the lengths of questionable performance.

We have made partnerships with a few giants over the last few months, and I believe a few more surface soon.

It's not as lucrative as an IP/material contract for share holders, but from company perspective, they're ticking boxes.
I also believe the likes of Renesas are close to blooming, obviously not in our control so just need to sit tight a bit longer than expected.

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Mccabe84 said:

When is the next AGM?

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wilzy123 said:

Wow... ok.

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robsmark said:

Two years+ years into commercialisation and two commercial contracts, the most recent being over a year ago.

From 26 (EAP? - I wouldn’t know as they’ve not being mentioned for that long) you’d expect at least a couple more contracts? I dont think that’s unreasonable.

Partnerships mean nothing until they yield revenue.

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robsmark said:

Two years+ years into commercialisation and two commercial contracts, the most recent being over a year ago.

From 26 (EAP? - I wouldn’t know as they’ve not being mentioned for that long) you’d expect at least a couple more contracts? I dont think that’s unreasonable.

Partnerships mean nothing until they yield revenue.

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BaconLover said:

Usually in May from what I understand. They only disclose the exact date a few weeks before.

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BaconLover said:

Always tricky especially in this market. Every company is firing staff and cutting costs.
Won't be easy to get the dotted line signed so quick.

On contrary, BRN is hiring staff.
We have until May to see the performance and then can ask questions to Sean directly at the AGM. Pretty sure they'll be expecting it too.

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