BRN Discussion Ongoing

[Frank Zappa]

I know we are a BRN centric forum but WBT is another tech stock on the ASX at pre revenue stage that some of you may be interested in. They had a massive announcement today.

I honestly think they have as much potential as Brainchip, perhaps an even higher revenue ceiling.

They are my second biggest holding and to say today is a good day is an understatement!

Well done . I have had them on my watch list since you mentioned them a couple of months ago . 20% increase just today bodes well for BRN when it pulls its head out of the sand .

 

[MDhere]

It's going to suck over the next few days/weeks/months watch the shorters play like pigs in mud!

End of the day we're all hoping for a win sadly this one today wasn't it,

I am still a believe in and full faith in Brainchip.. I am still planning on hold long-term. In a few years time no one here will care or talk about or mention this moment.

We WILL have a moment one day!

View attachment 20290

maybe only until Melbourne cup day. I believe the Linley announcement is ours. it could even be announced tomorrow. but that's my belief and my opinion.

 

[AusEire]

I'll have to open an Onlyfans account too.
Do you have a referral code?

You're on OnlyFans?

 

[Lex555]

Did someone say KFC

 

[BaconLover]

You're on OnlyFans?

Handsomeness can be a curse

 

[Xray1]

The Co said financial ride would be " LUMPY " .... imo It's gone " Flat "

 

[wilzy123]

The Co said financial ride would be " LUMPY " .... imo It's gone " Flat "

This is just the flat part of the lump.

 

[Cardpro]

Time to buy power ball lolllllllll fml

 

[toasty]

Great timing on this post.

Judging by the 4C, the Megachips $2m was an ACCOUNTING ACCRUAL only.

For those that don't have an accounting background, this would mean that, from an accounting policy perspective, Brainchip have "accrued income" for the licensing fee, but have not yet invoiced Megachips so haven't recognised the $2m as a debtor.

I'm now wondering what the terms of the licensing agreement were, in regards to when Brainchip can invoice Megachips - ie. what milestone needs to be met before they can issue an invoice for the remaining $2m. I'm now guessing there was an agreed amount to be invoiced up front (which we've received) and then perhaps the balance to be invoiced upon Megachips successful commercialisation of a product containing akida? Royalties then also to be invoiced monthly thereafter based on sales volumes.

If anyone has experience with IP licensing and general terms you can expect in those sort of agreements it'd be great if you could divulge for the rest of us to better understand.

Looks like those minor engineering/support fees were only $118K.

Excluding the $2m not being reciepted, the rest is pretty well in line with what I was expecting.

"In the coming quarter, the Company will focus on key sales targets and converting technical evaluations into paid licenses. In addition, the Company is accelerating development of next generation Akida IP and products to extend our technological lead and market opportunity. We are seeing the greatest amount of sales activity and engagement in the Company’s history"

Can't wait to see how December pans out.

Cheers all!

If they have "recognised" the income then regulations require that the company has a reasonable expectation of collecting the amount recognised - its just a matter of when. I did warn 3 months or so ago that shareholders should acquaint themselves with the difference between revenue recognised and cash collected.

That said, I was in the software business for a large part of my working life and have seen all manner of licensing conditions, including some that were, for want of a better term, vapourware. One of the difficulties with having a "pull through" licensing model (i.e. one where the immediate customer is not necessarilly the one making saleable products from the technology) is that you are reliant on your immediate client (eg. Megachips) signing up their clients to conditions that are favourable to you. It is doubly difficult when the technology being licensed is brand new and unproven in the general marketplace..................

There is no doubt that BRN's IP has been de-risked by being incorporated in some astonishingly good projects (eg, NASA, Mercedes and Prophesee) but it is clearly going to take more time for that to trickle down to incorporation in large scale deployments (i.e. very profitable and cash flow positive). If you are a believer then you are going to have to exercise patience, no matter how difficult that may be.

FWIW and DYOR

 

[Mccabe84]

Wasn’t what everyone wanted but I guess it will give some people an opportunity to buy more shares. I still wonder why BRN have only 2 IP sales I thought we would have more by now.

 

[AusEire]

Handsomeness can be a curse

I know the feeling mate! Can't go anywhere these days without getting harassed

 

[SERA2g]

If they have "recognised" the income then regulations require that the company has a reasonable expectation of collecting the amount recognised - its just a matter of when. I did warn 3 months or so ago that shareholders should acquaint themselves with the difference between revenue recognised and cash collected.

That said, I was in the software business for a large part of my working life and have seen all manner of licensing conditions, including some that were, for want of a better term, vapourware. One of the difficulties with having a "pull through" licensing model (i.e. one where the immediate customer is not necessarilly the one making saleable products from the technology) is that you are reliant on your immediate client (eg. Megachips) signing up their clients to conditions that are favourable to you. It is doubly difficult when the technology being licensed is brand new and unproven in the general marketplace..................

There is no doubt that BRN's IP has been de-risked by being incorporated in some astonishingly good projects (eg, NASA, Mercedes and Prophesee) but it is clearly going to take more time for that to trickle down to incorporation in large scale deployments (i.e. very profitable and cash flow positive). If you are a believer then you are going to have to exeercise patience, no matter how difficult that may be.

FWIW and DYOR

Thank you toasty. Awesome feedback.

 

[H.E. Pennypacker]

Well done . I have had them on my watch list since you mentioned them a couple of months ago . 20% increase just today bodes well for BRN when it pulls its head out of the sand .

Get it onto the buy list mate..WBT is a beast in the making.

 

[Zedjack33]

 

[Mugen74]

View attachment 20299

Inflation!

 

[Xray1]

The only part of the 4C that gives us s/holders some hope I beleive, is the following significant statement made in the report,.... that being:

" We are seeing the greatest amount of sales activity and engagement in the Company’s history. "

IMO..... If these sales activities and engagements doesn't show or reflect an upward trend in the next 4C .... then Sean H should have some concerns and upset s/holders that he will need to deal with at the next AGM !!!

 

[David holland]

Nxt quarter will be a big 1 in Brainchips history, the CEO Spoke and where no where near his 4 to 5 billion market cap

 

[VictorG]

BRN has 18 months of runway and its energy is now being focused on meeting sales goals in the December quarter and onwards - that is my number 1 takeaway from this 4c.
I would have liked revenue in this 4c but we were told that revenue will kick in at the end of 2022 so no big surprise then.
The global headwind as mentioned in the 4c would have pushed BRN activity/revenue out by a qtr and I think the share price shows it. So I'm hoping the share price has already priced that in and it will hold in the low to mid 80 cents range for a few days then rising steadily over the next 3 months.

When I first invested on BRN, I did so with a 2024 target price in mind. Not that I will sell any BRN shares if my target price is achieved but rather use it as a guide on the performance of BRN. So until 2024, the price will do what the price does and nothing will change that.
I believe we will look back and recall this day to be a pivotal moment on the journey of our BRN lives. It's a marathon, not a sprint and only LTSH's will win the day.

 

[Lex555]

If they have "recognised" the income then regulations require that the company has a reasonable expectation of collecting the amount recognised - its just a matter of when. I did warn 3 months or so ago that shareholders should acquaint themselves with the difference between revenue recognised and cash collected.

That said, I was in the software business for a large part of my working life and have seen all manner of licensing conditions, including some that were, for want of a better term, vapourware. One of the difficulties with having a "pull through" licensing model (i.e. one where the immediate customer is not necessarilly the one making saleable products from the technology) is that you are reliant on your immediate client (eg. Megachips) signing up their clients to conditions that are favourable to you. It is doubly difficult when the technology being licensed is brand new and unproven in the general marketplace..................

There is no doubt that BRN's IP has been de-risked by being incorporated in some astonishingly good projects (eg, NASA, Mercedes and Prophesee) but it is clearly going to take more time for that to trickle down to incorporation in large scale deployments (i.e. very profitable and cash flow positive). If you are a believer then you are going to have to exercise patience, no matter how difficult that may be.

FWIW and DYOR

The $3.4m accounts receivables in the half yearlys had terms of under 90 days which should mean receipts collected for this quarter.
If all we can do is watch the financials we must be able to also trust the financials and this if I’m being honest has me concerned

 

[Zedjack33]

Yet someone had faith after the a
4c came out.