BRN Discussion Ongoing

[Schnitzel lover]

Yes, the 1H23 report reflects a lacklustre 6 months for the company from a sales perspective.

How some shareholders on here were expecting anything different though is beyond me. What company in their right mind was going to sign an IP licence with Brainchip in the first half of 2023 when Akida 2.0 benefits are right around the corner? As Sean noted in the AGM, the second generation of Akida with its incredible improvements and additional functionality, was developed as a result of direct feedback from customers as to their requirements.

Considering lead adopters have been engaged with the benefits of Akida 2.0 for a short while now with general availability supposedly available now as per @Fact Finder recent post, we should surely be expecting some sales conversions. My personal timeframe to start seeing some more numbers on the boards (IP licences) is 6-12 months. We've been patient. Leeway has been given for much longer than anticipated but with the release of the 2.0 platform, there are no more excuses to deliver tangible, financial results.

I’m of the same opinion.

Next AGM will be 6-7 months with Gen 2 available on the market.

Even if the product cycle is 3-4 years or bust, that should’ve entail time is of the essence and a partner signing an IP to streamline that cycle is imperative.

And to be frank I don’t buy the theory of partners not taking out IP licenses because they can go through their chip makers who hold Akida IP licenses. These Chip makers and end users development through chip makers in Renesas and Megachips will have had 3-4 years as of this time next year to develop products.

So shelve Gen 3 commercially and market availability-wise until these partners have products in the market producing royalties for BRN. Then let them knock the door down to get Gen 3 improvements. After all, there’s supposedly nothing else on market within a 3-5yr window with the same capabilities.

There’s no way shareholders will accept similar results at the next AGM. It will be a metaphorical bloodbath in my view for the current BOD, executive and non-executive.

I would’ve thought the H2 Dec 2023 financials will be pivotal for the company, good or bad.

All in my opinion and DYOR

 

[IloveLamp]

Redirecting

 

[Mt09]

Well.. for all we know, they might as well wait for Akido 3.0 ir Akido 69 at this rate...

Akido 1000 lol.

I’d like to know the timeline for Akido 2.0, when will we actually have hardware ready for customers to work with not just a software emulator, we can only hope one of our eap have seen enough to sign on before they have an engineering sample in their hands, I doubt it though?
Wouldn’t mind betting we use IFS to produce the reference chips..

Lack of news around 1500 has been disappointing..

 

[Schnitzel lover]

A good friend of mine is an Investment Banker and he continues to tell me there is a ridiculous amount of money still on the sidelines waiting to invest into the market.

He considers many would still see BRN on the more speculative end and need to see more evidence of commercial traction to consider taking the assymetric risk reward investment.

 

[Bombersfan]

Good points ...

With reference to Valeo, a "Joint Development " agreement can have numerous commercial iterations. There was agreement with Valeo that would cover some of BrainChips development costs, but no insight to what the commercial outcome of a successful "development using Akida" would be like.

From articles in 2020

Tech developer BrainChip (BRN) has signed a joint development agreement with European automotive supplier Valeo for its Akida system.

Valeo supplies sensors and systems for autonomous vehicles (AV) and advanced driver assistance systems (ADAS).

The tier-one auto supplier will incorporate BrainChip’s Akida neuromorphic System-on-Chip (SoC) as a neural network processor in Valeo’s sensing system.

The SoC will be developed to process data and learn in a way that is a lot more focused and streamlined than previous system architectures.

The low-power, reliable system will bypass the need for an exterior processing unit to integrate large amounts of sensor data, and instead provide a potentially better and more elastic solution in one compact package.

Most likely commercial outcome, IMHO, is a royalty from sales.
Something like 1% - 2%
And this would only become " worthy of ASX announcement" on sales being achieved. Even though Valeo have pre-orders etc, what happens if Valeo goes bust, or production fails etc. etc.
So my logic goes, it's been 3.5 years. Valeo scientists were lauding Spiking Neural Networks as the future back in 2018, they choose to work with BrainChip, so Valeo have been at it for more than 5 years, nothing has been announced that the joint development has been terminated. Is it SCALA 3 ? Very good chance, but not definite. We could still be "developing"

Great answer Quiltman. “Very good chance, but not definite”. The design cycle timeline lines up perfectly and I agree the royalties on sales would be the most likely scenario. From the limited spec details we know, its hard to see it being anything else.

As a developing company, BRN have made great progress in the last 2 years. As shareholders it’s been a horrendous 2 years. I genuinely think the next 2 years will be what we all thought the last 2 we’re going to be and commercial traction will start to reveal itself, and probably sooner rather later. Renasas chip released soon, Mercedes reveal soon, scala3 release soon and gen 2 prove out any minute. All pivotal moments either way to come between now and Xmas.

There were obviously a few nibbles at Akd1000 that hopefully bear fruit soon, but gen 2 is what it’s all about. If it’s announced as successful very soon, Antonio said companies were waiting for general availability before committing so that hopefully translates to licence news soon too.
Without immediate news unfortunately we might see .20’s this week but by Xmas I think it will be a different story. It’s tough to watch but this isn’t the end, it’s a lull.
(If we are still flailing in the same commercial position 12 months from now then we have problems)

 

[Schnitzel lover]

Great answer Quiltman. “Very good chance, but not definite”. The design cycle timeline lines up perfectly and I agree the royalties on sales would be the most likely scenario. From the limited spec details we know, its hard to see it being anything else.

As a developing company, BRN have made great progress in the last 2 years. As shareholders it’s been a horrendous 2 years. I genuinely think the next 2 years will be what we all thought the last 2 we’re going to be and commercial traction will start to reveal itself, and probably sooner rather later. Renasas chip released soon, Mercedes reveal soon, scala3 release soon and gen 2 prove out any minute. All pivotal moments either way to come between now and Xmas.

There were obviously a few nibbles at Akd1000 that hopefully bear fruit soon, but gen 2 is what it’s all about. If it’s announced as successful very soon, Antonio said companies were waiting for general availability before committing so that hopefully translates to licence news soon too.
Without immediate news unfortunately we might see .20’s this week but by Xmas I think it will be a different story. It’s tough to watch but this isn’t the end, it’s a lull.
(If we are still flailing in the same commercial position 12 months from now then we have problems)

Great points..

How genius was that Capital call now roughly between 58-68c for $12.2mill AUD.

Only $2.8mill left to draw down by Dec 31..

Knowing Gen 2 out plus a string of other hopefuls there’s still a chance to get the next call out above the first 2023 avg.

 

[rgupta]

The last investor updates had proven shorters and fools right about the company and we holders wrong. I don't know what is behind the scenes but the words were almost exact. Our 1.0 was not robust enough to support the sp. Which in other means stands no where.
I am a believer of technology and believes company will learn from their failures and come out of dark. We have better ecosystem, better products , better market insights than what we had 3 years ago. So hopefully things will change for better.
I also believe that 1st strike was an eye opener for the management and if they cannot improve in time that means we are in serious trouble now.
Dyor

 

[GStocks123]

The last investor updates had proven shorters and fools right about the company and we holders wrong. I don't know what is behind the scenes but the words were almost exact. Our 1.0 was not robust enough to support the sp. Which in other means stands no where.
I am a believer of technology and believes company will learn from their failures and come out of dark. We have better ecosystem, better products , better market insights than what we had 3 years ago. So hopefully things will change for better.
I also believe that 1st strike was an eye opener for the management and if they cannot improve in time that means we are in serious trouble now.
Dyor

Agreed mate. Would be nice if our CEO came out of the woodwork once in a while..

 

[Bravo]

Thanks for sharing 2the! Great to see NVIDIA shown as an Edge Impulse partner at 43.43 mins.

Re NVIDIA, I'm just going to revive an old post (#60,518), because I'm too lazy to re-phrase it, by way of demonstrating how impossible it would be to imagine that NVIDIA isn't totally and 100 percentiley aware of us.

So, I'm looking forward to the Edge Impulse "Imagine" online event on the 27 September. 2023

 

[rgupta]

The last investor updates had proven shorters and fools right about the company and we holders wrong. I don't know what is behind the scenes but the words were almost exact. Our 1.0 was not robust enough to support the sp. Which in other means stands no where.
I am a believer of technology and believes company will learn from their failures and come out of dark. We have better ecosystem, better products , better market insights than what we had 3 years ago. So hopefully things will change for better.
I also believe that 1st strike was an eye opener for the management and if they cannot improve in time that means we are in serious trouble now.
Dyor

Listening to the update provides an answer to a lot of unanswered questions e.g departure of LDN, why company was looking for a technical person to head the company, why company changed it's policy on public disclosure after LDN.
I am hopeful the things are changing for betterment.
To me there is no enjoyment of success without a failure. Yes I am in red but still hopeful that management will not try to hide facts from share holders and era and expectations from LDN times are well behind us.
The 3rd important point I realized is software developments. ( which to me was the biggest reason for akida 1 not going past a certain stage). So this time we have many more ecosystem partners who are working on technology. No doubt softwares may still not match the big enterprises but they will be good enough to support our journey upto big enterprises.
So fingers crossed let us see how brn launch second generation akida.

 

[Cgc516]

How about us next Monday?
Another 15% or company do some what they supposed to do . They make the trap for shareholder, why they keep doing this way? We all knew the figures not going to be good, then release it normal way , the people will understand if they understand. But the current way, only make the thing worse! And with no awareness, keep doing it . I think at this stage if the Sales won’t be good, the company really need a Good Experienced public relations person .

Bloodbath? Hahaha
By now this is a standard week for BRN holders.

Bring on Akida2

View attachment 42960

 

[Rise from the ashes]

For interest little bit over 7 mins
Haven't seen this posted before.

 

[IloveLamp]

Timing and wording is interesting imo

Samsung set to supply HBM3, packaging services to AMD - KED Global

South Korea’s Samsung Electronics Co., the world’s top memory chipmaker is poised to provide its high bandwidth memory (HBM) chips and turnkey pack

www.kedglobal.com

 

[Galaxycar]

I for one can’t wait for next a AGM to vote these idiots out, problem will be we may not have a company by then.

The last investor updates had proven shorters and fools right about the company and we holders wrong. I don't know what is behind the scenes but the words were almost exact. Our 1.0 was not robust enough to support the sp. Which in other means stands no where.
I am a believer of technology and believes company will learn from their failures and come out of dark. We have better ecosystem, better products , better market insights than what we had 3 years ago. So hopefully things will change for better.
I also believe that 1st strike was an eye opener for the management and if they cannot improve in time that means we are in serious trouble now.
Dyor

 

[curlednoodles]

I'd love to hear from Sean about this HY report. Seems the biggest expense has been salaries and employee expense accounts. I don't feel were getting value for money here.. gets paid millions to bring in 100k. A fish n chip shop makes more. Wouldn't you think they'd take a pay cut in such times as these..

 

[Dozzaman1977]

They appear to be buying up big
View attachment 42918

https://fintel.io/so/au/brn/first-trust-exchange-traded-fund-vi-first-trust-nasdaq-artificial-intelligence-and-robotics-etf

This is not a positive. Well done to the 50 odd people that liked ROBT "buying up big" post
It took 3 minutes to look up how ROBT is composed. All tech companies in this ETF are ranked into 3 categories. 30 companies per category. Each company has the SAME equal weighting with this being rebalanced quarterly.

SO the only reason they are "BUYING UP BIG" is because they have to due to BRN share price falling quarter on quarter on quarter. The "BUYING UP BIG" is to keep BRN weighted the same in the category they are in.
I guess this post wont get 50 likes even though its correct and factual.

"The share price will do what the share price will do"
Spoken by a person that will never put one dollar of his own money into the company.

 

[robsmark]

This is not a positive. Well done to the 50 odd people that liked ROBT "buying up big" post
It took 3 minutes to look up how ROBT is composed. All tech companies in this ETF are ranked into 3 categories. 30 companies per category. Each company has the SAME equal weighting with this being rebalanced quarterly.

SO the only reason they are "BUYING UP BIG" is because they have to due to BRN share price falling quarter on quarter on quarter. The "BUYING UP BIG" is to keep BRN weighted the same in the category they are in.
I guess this post wont get 50 likes even though its correct and factual.

View attachment 42969

"The share price will do what the share price will do"
Spoken by a person that will never put one dollar of his own money into the company.

Absolutely correct.

 

[Bravo]

This is not a positive. Well done to the 50 odd people that liked ROBT "buying up big" post
It took 3 minutes to look up how ROBT is composed. All tech companies in this ETF are ranked into 3 categories. 30 companies per category. Each company has the SAME equal weighting with this being rebalanced quarterly.

SO the only reason they are "BUYING UP BIG" is because they have to due to BRN share price falling quarter on quarter on quarter. The "BUYING UP BIG" is to keep BRN weighted the same in the category they are in.
I guess this post wont get 50 likes even though its correct and factual.

View attachment 42969

"The share price will do what the share price will do"
Spoken by a person that will never put one dollar of his own money into the company.

It says the "index selects the top 30 companies within each category", so that's pretty good! I mean, they've selected NVIDIA, Tesla and Valeo, so we're in good company right?

 

[Dozzaman1977]

It says the "index selects the top 30 companies within each category", so that's pretty good! I mean, they've selected NVIDIA, Tesla and Valeo, so we're in good company right?

Yes its great to be included in this ETF. It is full of successful tech companies so hopefully BRN can start signing up some customers.
Currently the ETF has brainchip with a weighting of 0.51%.

 

[Foxdog]

'Several active customers elected to defer their evaluation of BrainChip’s technology until after the expected release of Akida 2.0 in August 2023'.

So what exactly does this statement from Antonio really mean. It appears to me that no evaluation was done by these companies and that said evaluation will only begin when they get their hands on Gen2. If the usual design cycle is 3 to 4 years then products from this particular cohort of customers will not appear for ages. Have they not been playing around with Akida1000 with the view of incorporating Gen2 quickly into a product range?

Is AKIDA actually groundbreaking? 3 things need to happen over the next month 1. Mercedes confirmation that AKIDA is in their next EV's. 2. Valeo confirmation that we are in Scala 3 and 3. Release of Gen2 and confirmation that specific customer requests have been addressed in this release and that product development is underway to incorporate it.

If by some miracle each of these events come to pass over the next month then we will see a significant re-rate. If none of them happen then I doubt AKIDA is actually a viable solution for the current commercial market. IMO this is a binary outcome that will play out very soon.