BRN Discussion Ongoing

[Stable Genius]

I may be mistaken but Mercedes is still releasing a car with Akida inside.

Still not confirmed it’s us but Valeo’s Scala 3 LiDAR will be going into vehicles soon too. If Akida is the secret sauce then we can expect revenue in the future.

Having done my research I’ll wait with confidence, contentment and patience.

 

[Damo4]

Good presentation.

A few notes below based on my interpretation and understanding only. These are not intended as advice, guidance, recipe instructions etc. Recommend waiting for the recording and tuning in for yourself.

Cheers.

Presentation

• Edge AI – The Right compute model
• Customer Driven. Market Driven. Generations Ahead.
• Akida - in the market now, real customers and gaining traction.
• Chips, boards & systems available which people can try.
• New chip available late Summer, early Fall
• Market likes what they did with the first chip, have put additional technology into the second.
• Sean has brought on board a number of high-level industry leaders.
• Closed a set of licences already (assume MegaChips and Renesas).
• Can’t build a product without an ecosystem.
• Auto industry has a lot of interest in AI, and a lot of interest in BrainChip.
• BrainChip seeing a lot of interest from healthcare as well.
• Power consumption from data centres is unsustainable. Must move to edge market.
• Market getting stronger every single day.
• BrainChip seeing absolute interest in all markets – industrial, auto, health, home/consumer.
• Fully digital and event based is critical – allows customers to move/deploy to any technology.
• Easy to convert existing models to Akida IP.
• Gen 1 product focused on grey boxes (ie. Akida-E)
• Gen 2 product focuses on addressing orange and blue boxes (ie. Akida-S & P). This results in more functions and more Customers.
• Tech partners – lubricates the sales cycle.
• Customers want to know that varying foundries can be used.
• Selling some chips as a secondary revenue stream.
• MegaChips can build chips on behalf of other Customers.
• Renesas releasing chip in coming months.
• Neuromorphic standard will emerge over coming years - BrainChip intend to be part of that standard.
• Primary revenue is IP licensing.
• Royalties are powerful revenue streams.
• Big market, favourable trend in the edge.
• Gen 2 - Very strong positive reviews from analysts, very strong interest from Customers.
• Working with marquee brands.
• Strong team.
• Real product, real market, real Customers. Attractive business model.

Q&A

• Gen 2 – On pace for Q3 release, maybe earlier - development going well. BrainChip developing hardware and software at same time. Too early to sign customers but seeing high interest level from new prospects and existing customers.
• Future earnings guidance – not at this time. IP licensing model is lumpy and includes a long sales cycle. Hard to predict but as BrainChip matures they will provide forecasts. Complex evaluation cycles ongoing, all going well but can’t time exactly when these will land.
• When will break even be achieved – Similar to above, BrainChip is not forward projecting. Sean has a multi-year board approved plan.
• Akida 1500 – expected to sell some of these to integrators. AKD1000 chip is essentially a demo chip. Never intended to be a revenue stream itself.

Very nice pres and thank you @Evermont for the great summary especially these bits.
Should go a long way to calm nerves unless you want to make a quick buck.

• Future earnings guidance – not at this time. IP licensing model is lumpy and includes a long sales cycle. Hard to predict but as BrainChip matures they will provide forecasts. Complex evaluation cycles ongoing, all going well but can’t time exactly when these will land.
• When will break even be achieved – Similar to above, BrainChip is not forward projecting. Sean has a multi-year board approved plan.

 

[DollazAndSense]

Yes and it would be pretty easy for those who bought at 3c to see the share price at 46c. Unlike those who bought at much higher prices.

It’s not Brainchip’s or early investors fault people bought in at an inflated price that was not sustainable off a news article and not an announcement. Again, impatience on those who don’t do research.

My mistake…realistic people who don’t do their research.

 

[JDelekto]

Don't twist it @Foxdog. If you listen to the presentation it is apparent he is referring to the physical chip and not IP.

That is correct. The AKD1000 chip was not meant for regular sales, but instead inside their enablement technologies (the Raspberry Pi, Shuttle PC, and PCIe cards) for those evaluating and developing their products against the technology.

Their focus had shifted to IP sales of which they have already had two customers. As Sean pointed out, we can still expect lumpy revenue, but I expect to see more activity at the end of this year and through 2024.

I am still steadfast in my resolve to continue holding, acquire more shares when possible, and reevaluate where the company is at in 2025.

At least my question was answered as to when the Akida 2.0 IP would be available --I was hoping to hear there were some people waiting in the wings to sign some deals, but I think allowing them to evaluate the results is fair enough.

 

[Foxdog]

Don't twist it @Foxdog. If you listen to the presentation it is apparent he is referring to the physical chip and not IP.

Didn't mean to twist it but I will continue to balance the over hyped enthusiasm that prevails on this forum with a contrarian view until we see self-sustaining REVENUE from customers who have actually committed. Quite happy for people to continue accusing me of not doing research but all the research in the world will amount to nothing if the company can't sell its product at volume.

 

[Kachoo]

That is correct. The AKD1000 chip was not meant for regular sales, but instead inside their enablement technologies (the Raspberry Pi, Shuttle PC, and PCIe cards) for those evaluating and developing their products against the technology.

Their focus had shifted to IP sales of which they have already had two customers. As Sean pointed out, we can still expect lumpy revenue, but I expect to see more activity at the end of this year and through 2024.

I am still steadfast in my resolve to continue holding, acquire more shares when possible, and reevaluate where the company is at in 2025.

At least my question was answered as to when the Akida 2.0 IP would be available --I was hoping to hear there were some people waiting in the wings to sign some deals, but I think allowing them to evaluate the results is fair enough.

Akida 1000 was put strait to IP
Akida 1500 on 22n is being made in production to be sold for customers threogh Renesas.

Akida 2000 is likely IP again.

I would like to see an solid example of a first time made product be absolutely seller in the last few decades. Every product has be reworked to be better.

We are not selling a dump piece of metal but highly complicated technology 99.9 % of humanity does not understand yet.

Also they are on schedule to release Akida 2000 on time or ahead of schedule a bit.

I think some credit has to be given to them.

The delays I see in industry is mind boggling at times lol

 

[DK6161]

Seems to me that this is now confirmed as a slow burn. Doesn't appear to be any chance of a sudden ground-breaking announcement that will see a re-rate any time soon. The use of the term 'interested' when referring to customers doesn't really mean much in my opinion, it appears as though none are willing to commit to this new tech and are quite happy to wait and see what each new version will bring. 'AKD1000 never intended to be a revenue stream'....really? I thought Sean said the company would be self sustaining by Y/E 2022 on the back of AKD1000, perhaps I misunderstood. Personally I'm not expecting much from the next 4C or the AGM. Producing better and better chips/IP is fine but not if potential customers keep sitting on their hands waiting to see what's next. Nice, professional looking presentation though.

My thoughts exactly.

 

[Foxdog]

It’s not Brainchip’s or early investors fault people bought in at an inflated price that was not sustainable off a news article and not an announcement. Again, impatience on those who don’t do research.

My mistake…realistic people who don’t do their research.

Yes but it's pretty inconsiderate for some to gloat about the cheap prices that they bought at. Indeed many may well have bought on the hype that pervades this site. Think about that for a second. Early buyers quite comfortable with their current 10x gain happily joining dots and constantly ramping are now showing no sympathy or consideration for those who may have bought on the hype that they (the rampers) helped to create. I've done plenty of research by the way, much of which points to no substantial revenue and no new IP contracts for many months. Realistic is looking at the situation from different angles and not through blinkered, rose coloured glasses.

 

[FrederikSchack]

And I don't see some of them here now.
Looks like the LDA deal is finished after all. Funny how the timing of all that works.
All these podcasts and talk of trillions, all these talks about explosive revenue, imminent contracts and interesting times....
What's interesting is a commercial product such as akida is selling lesser than a research piece such as loihi.
Forget trillions, hopefully BRN makes more than 5 million revenue this year. I know a 20 million market cap company on ASX which made nearly 5 million revenue last year.
Hopefully by 2025... and then when 2025 comes we can move the post to 2030.

With that outlook, you should sell your stocks.

 

[FrederikSchack]

It's easy to be an unhappy investor, not so easy to make a new revolutionary chip, get the attention of the world and get everybody to implement it, but seems like people are starting to buy into it now:

 

[Xhosa12345]

Going to be an interesting 4c and agm. Probably going to be a more dour affair this time around. I wouldnt be expecting comments like revenue growth will soon exceed expense growth,or judge me at next years agm...

On the plus side, none of the board nor founder have sold any shares, other than for a donation or to cover tax, so they are clearly confident in the longer term.

Just like pretty much all businesses, things just happen slower than anticipated.

When it does go and revenue starts kicking in, its probably going to be exponential so market cap will continue to remain high in anticipation over the coming year or so, hopefully shorter!

Speaking of shorters theyve probably made packets along the way, so theyll keep playing until the above revenue kicks in most likely.

Have a good friday froffy day everyone!

 

[BaconLover]

With that outlook, you should sell your stocks.

Nice financial advice.

And yeah, proves the point Foxdog says above in post 53,711.

 

[DollazAndSense]

Yes but it's pretty inconsiderate for some to gloat about the cheap prices that they bought at. Indeed many may well have bought on the hype that pervades this site. Think about that for a second. Early buyers quite comfortable with their current 10x gain happily joining dots and constantly ramping are now showing no sympathy or consideration for those who may have bought on the hype that they (the rampers) helped to create. I've done plenty of research by the way, much of which points to no substantial revenue and no new IP contracts for many months. Realistic is looking at the situation from different angles and not through blinkered, rose coloured glasses.

I appreciate contrarian views and tried to prompt a discussion with you which resulted in a once sentence reply, not countering my points of time from customer interest to implementation.

Second generation Akida was recently made available to early adopters. Did you notice all the improvements and new capabilities this second generation provides? So now those early adopters have access and have to learn how to implement these new features for their purposes. You seem to think that the customer’s engineers simply know what to do with this tech. It’s a brand new technology that would need a long time to implement into a customers end product. Thus, we’re only just going to have IP in a Renesas product this year and we signed with them a long time ago.

Waiting ‘Many months’ for licenses for a technology that most people knew NOTHING about a couple of years ago, is a very short timeframe. You have been told by Renesas and Brainchip, our IP will be in a Renesas chip this year. How is this not a great start in your eyes, with the magnitude of MCUs Renesas sell?

 

[FrederikSchack]

Nice financial advice.

And yeah, proves the point Foxdog says above in post 53,711.

If you don't really expect BrainChip to move the needle this year and you don't see any great long term perspectives, then why to hold the stock?

 

[rgupta]

I was just researching how a start up grows from a start up to a full grown enterprise.
It always starts with an idea and some technological benefits to start with.
So brainchip was started with a vague idea and a few people invested in the idea. When we invest in ideas we always know chances of a failure are more than 90% but it is a success we will get benefitted. And there is 1% chance the company can become an enterprise.
To me brainchip have all those attributes to become an enterprise. It is proving everything what soever it is saying they can do.
Akida 1000 was from a fantasy land and no one was sure at the start. In between company make a few decisions and reevaluate them. The process is slow but still there is no competitor on the horizon which means company have a small luxury in time to deliver.
Right now there is only one company promoting the same thing what we are promoting and i.e. Qualcomm. We will know with time if they use ours or they have their own. But it proves there is a big market for technology like ours.
In the end only time will tell what is coming out but looking at the past and present I am quit assured about better returns on my patient with brn.
Dyor

 

[FrederikSchack]

Because it's a good lesson for me that actions are louder than words. There's always to learn something, even when you're losing.
It's a great reminder how companies can twist and turn their words, change strategies, move goal posts, miss figures and targets, and there'll still be a few who still be gullible to it all.
Again, thank you for your financial advice asking another poster to sell the stock.

It took tremendous courage, vision and risk appetite to buy Brainchip before they had a proven working chip. Even a downward price movement scare some people. So, those that bought at 4 cent really deserve their winnings.

I don't know if you were there back in 2020, but there were virtually no media attention about Brainchip at all, there were very little information to navigate according to. Now we're in the media all the time, we're floating in partners and appraisals. I saw a fresh interview with Nandan today and a presentation with our CEO.

We're so lucky that our vision worked out. We are in the core of the revolution, we have the best product for that core of the revolution. Neuromorphic computing is not something you just create and the the whole world is going to use it the next day. The Brainchip team were strategically smart to delay everything and implement a CNN interface to the chip, so it's compatible with existing models, that was a brilliant move.

Things take time.

 

[rgupta]

Yes but it's pretty inconsiderate for some to gloat about the cheap prices that they bought at. Indeed many may well have bought on the hype that pervades this site. Think about that for a second. Early buyers quite comfortable with their current 10x gain happily joining dots and constantly ramping are now showing no sympathy or consideration for those who may have bought on the hype that they (the rampers) helped to create. I've done plenty of research by the way, much of which points to no substantial revenue and no new IP contracts for many months. Realistic is looking at the situation from different angles and not through blinkered, rose coloured glasses.

I don't think there was a hype created on this site. In actual sense a lot of contributors here tell they sell their stock. We all know things can never travel in one direction but a few people wants to become rich sooner than others.

 

[rgupta]

Because it's a good lesson for me that actions are louder than words. There's always something to learn, even when you're losing.
It's a great reminder how companies can twist and turn their words, change strategies, move goal posts, miss figures and targets, and there'll still be a few who still be gullible to it all.
Again, thank you for your financial advice asking another poster to sell the stock.

I assume there is a lot of pressure with time frames to the holders. May be they want to become rich overnight.
On the other hand time is a sweet luxury with us as there is not much competition here.
To me company should work on best interests of share holders in a longer run and that is exactly what is happening here.
By the way is that I am smelling a greed from someone who wants to get more on these cheap prices?

 

[FrederikSchack]

I remember when I started researching Brainchip back in May 2020, I think I had about 80 results in Google when I searched for Brainchip, now there's more than a million What really helped me was that I read the whole HC Brainchip thread back then, thanks a ton guys!

 

[Damo4]

Seems the smart play when a nugget of gold is dropped is to quickly read what you can, then leave immediately to avoid the rubbish.

Classic BRN team complaining when anything good is released, always the same lads.

Thanks to all the valuable contributions made, sorry if I can't find them buried amongst the doom/gloom.