BRN Discussion Ongoing

[rgupta]

Hello All
I was hoping someone could shine a light on a query I have.
First of all, I’m not bothered about the SP falling, I know that there’s a lot of manipulation going on atm. I have been accumulating in small parcels as the price has dropped. To me it’s a golden opportunity.
However, on crapper, a lot of down ramping is going on and in reference to Brn having funding only for a few more quarters and then will require a CR. I know that revenue might come into play but it probably won’t be enough to cover overheads.
With the SP currently at 15 cents and quarterly results due soon, it is quite possible that revenue would not have increased by much unless contracts are signed. The fact that no announcements have been made probably indicates no new contracts.
A quarterly report indicating no increase revenue will impact on the SP further and possibly driving the SP down to single digits.
So my question is:
How financially stable are Brn atm?
If Brn do require a CR it would mean more diluting of shares?

I know that in the long run Brn will achieve its revenue goals but shorters will take full advantage and this could put Brn in a very vulnerable state.

Keen to hear your thoughts. These are genuine questions which I’m hoping someone can give me genuine answers.

I may not be the right person to answer your question, but looks like brainchip have funding for 4-6 quarters. Then by Dec 23 renasas will launch their chip with akida inside. There is high possibility megachips will also start giving some royalties with in 4-6 quarters. 1 year can be a good time for BRN to sign new contracts with akida 2.
So on the whole if the revenue is not getting through in next 4 quarters that will mean we overestimate our investments. But if renue of 2 million to 5 million start flowing through per quarter the sp will improve and even if we need a capital raise dilution will be minimum. On the other hand if revenue of 5-10 million start coming per quarter by then that will mean we may not need a capital raise at all.
End of the day no investment comes without a risk but investing at lower prices reduces those risks.
Dyor

 

[Meatloaf]

I may not be the right person to answer your question, but looks like brainchip have funding for 4-6 quarters. Then by Dec 23 renasas will launch their chip with akida inside. There is high possibility megachips will also start giving some royalties with in 4-6 quarters. 1 year can be a good time for BRN to sign new contracts with akida 2.
So on the whole if the revenue is not getting through in next 4 quarters that will mean we overestimate our investments. But if renue of 2 million to 5 million start flowing through per quarter the sp will improve and even if we need a capital raise dilution will be minimum. On the other hand if revenue of 5-10 million start coming per quarter by then that will mean we may not need a capital raise at all.
End of the day no investment comes without a risk but investing at lower prices reduces those risks.
Dyor

Thanks mate.
There’s a lot of scaremongering going on over there, I know that is all part of the tactic but it got me thinking.
I hope what you stated is correct, it puts my mind at ease.

 

[Boab]

At the 30th June 2023 we had 5 quarters

 

[Townyj]

At the 30th June 2023 we had 5 months
View attachment 46523

5 Quarters...

 

[Meatloaf]

At the 30th June 2023 we had 5 months
View attachment 46523

Your saying 5 months but it states 5 quarters

 

[Meatloaf]

5 Quarters...

Looks like we were typing at the same time

 

[Boab]

5 Quarters...

OOPs my bad now edited

 

[Townyj]

OOPs my bad

Did you just come from the HC dark side... lol kidding.. joshing ya

 

[HopalongPetrovski]

Hey Vlad,

I respect your input too mate, and hope you’re well.

I think having a seasoned board is what will prevent us listing on the Nasdaq. I believe they know full well what happens to premature listings which is why the company has stamped out any whispers of the relisting as soon as they start.

I hope you’re right about accelerated revenue, I’m ready to start seeing it!

Cheers

Whilst I see a Nasdaq listing/ dual listing as inevitable given the success we all ultimately expect, I too hope it’s not undertaken prematurely.

Being thrust into the ASX200 on the back of the over enthusiastic MB announcement without adequate and ongoing revenue or follow up news of similar market perceived import has left us open to unprecedented short attack and share price manipulation.

It’s a ride I could have done without, and though it has taught me some refinement in my trading/investing strategies its an experience I’m not keen to repeat.

I’d like to see us progress as fast as possible whilst continuing building a team that can sustain the momentum without getting burned out in the process.

So let’s build our way back into the 200 and learn the fundamental lessons of survival there before we launch ourselves into where the big boys play.

 

[Guzzi62]

Yes we need to up-list in the US asap, agreed.

The institutions are not allowed to trade OTC stocks in the US so very little is going on there.

From Investopedia:

While many financial institutions are prohibited from trading penny stocks, loosely regulated hedge funds have no such restrictions. That said, most hedge funds won't trade penny stocks on the long side: They far prefer short-selling penny stocks that look to have peaked after being heavily promoted. Penny stocks, although they often do indeed trade for mere pennies, can still be exceedingly dangerous to short because of the risk of a short squeeze. So while the risk-reward payoff for shorting a penny stock is too skewed (i.e., offering a limited reward if the short strategy works and unlimited risk if it doesn't) to be worthwhile for an average investor, the strategy may entice a deep-pocketed hedge fund.

10 Types of Investors and Traders in Penny Stocks Explained

Discover the 10 types of investors trading penny stocks daily, from corporate insiders to speculators, and understand the high-risk landscape they navigate.

www.investopedia.com

My post was written in great haste.

Obviously no way to up-list as a 10 cent stock on the US OTC, we need some IP deals and preferable from one or two of the really big players, Alkida2.0 could be the ticket.

A reverse-split can be necessary with the very high amount of outstanding shares but it would best to avoid it if possible as explained in the link below.

My average on my shares are 0.7 Aus$ so I am deep deep in the red but pointless selling now and I believe in what we got here.

I also believe in the management, Sean's 5 year plan and partners are steadily building up which indicates great interest in the Alkida products capabilities.
Apart from the 2 inventors of the chip, I am mostly impressed by Duy-Loan Le, the lady is super smart and have done her own chip designs before, she knows exactly how Alkida works. Do you think she would join BrainChip if she wasn't impressed? No off-course not, she can pick and choose whom she want to join.

Doubt anything will happen this year, next year we should see some increasing sales but I think 2-3 years out is where things will really take off.
I am retired so can't really buy more shares but I am trying to find funds so I can add just a bit more while they are dirt cheap.

All IMHO

Reverse Stock Split: What It Is, How It Works, and Examples

A reverse stock split consolidates the number of existing shares of corporate stock into fewer—and proportionally more valuable—shares.

www.investopedia.com

Thanks for some really good posts from some very smart people.
No thanks to the posters that just complain all the time, if you are not happy, I suggest you sell and move on.

 

[Kachoo]

Looks like we were typing at the same time

And keep in mind if some revenue starts trickling in a few million a quarter in q4 onto next q1 it will probably be lumpy and grow.

The lack of revenue in q1 q2 was a result of customers shelving putting off Akida 1000 work for 2.0.

It's highly probable that the early access 2.0 people were also engaged previously so they would have needed limited help. So things now have picked up and I would bet that we will see an increase in Engineering revenue going forth plus some possible royalty in q4 that is a big if in my m i nd it could go in q1

So if we have about a 5million burn rate and we average 2 million a quarter then its like 3 million q off the books makes out balance good for 6 or 7 quarters plus we should grow more revenue over that 2ish year time line. So its not as dire as they make it out to be. The HC has an adgenda t o strip as many cheap shares as possible its really crazy atm we will see what happen this is my opinion bimut clearly its not as dire as its made out to be. Oh and we have VVDN boxes comm ijng up for sale in q1 so that should add t o the kitty as things move forth also.

We could start seeing revenue from Scala 3 if they are using Akida the research shows an extreamly optimistic view here the order was do over 1 billion euros worth of units. Even if we got 1 percent of that revenue it be 15 million right there. S ok it's quite possible that we will not see any more CR other then the 3 million they are still obliged to raise buy the end of the year. All this is my opinion.

 

[TECH]

The other photo of our new best friends.
View attachment 46513

Great photo, thanks for putting it up.

Peter is looking very well, he's due to be heading home to Perth next month I believe, after 6 months overseas helping the teams
in the US and France, correct me if I'm wrong here, but doesn't that now represent three companies we are connected to whom
are all heavily involved in next generation space programs ?

NASA, ANT61 and now EDGX

Funny how some posters made rather derogatory comments about Peters first 100% proven, first-run silicon NSoC AKD 1000, seems
to me EDGX and I'm sure many other companies have found that our first chip, which originally wasn't built as a reference chip, until
Sean came onboard and convinced the Board of an almost complete U-turn, contains technology that's beyond this world, rather like
Event-Based Horizons....

I wonder if the company should just suspend trading in/of our stock for say 12 months.....

Tech

 

[thelittleshort]

#neuromorphic | Cristian Axenie

Proud to lead team NeurOHM from Technische Hochschule Nürnberg Georg Simon Ohm towards winning the second place in the Pedestrian Detection Competition of tinyML Foundation. Our solution, Spiking Perception and processing for Intelligent Detection of pEdestrians on urban Roads (SPIDER)...

www.linkedin.com

 

[RobjHunt]

I believe in Buffet's famous quote "when everyone is fearful be greedy"
So if you believe in company then it may be a good time to become greedy.
Dyor

I couldn't agree with you more @rgupta I was only thinking of the same thing last night when I was read the days comments last night. No truer a quote!!

 

[Bravo]

This could be something worth keeping our 1000 eyes peeled on, especially since we "recently-ish" (1 June 2023) had Shyamal Anadkat from OpenAI touting the benefits of BrainChip's AKIDA.

OpenAI said to be considering developing its own AI chips​

• Kyle Wiggers

Sat, 7 October 2023 at 6:31 am AEDT·3-min read

OpenAI, one of the best-funded AI startups in business, is exploring making its own AI chips.
Discussions of AI chip strategies within the company have been ongoing since at least last year, according to Reuters, as the shortage of chips to train AI models worsens. OpenAI is reportedly considering a number of strategies to advance its chip ambitions, including acquiring an AI chip manufacturer or mounting an effort to design chips internally.
OpenAI CEO Sam Altman has made the acquisition of more AI chips a top priority for the company, Reuters reports.

Currently, OpenAI, like most of its competitors, relies on GPU-based hardware to develop models such as ChatGPT, GPT-4 and DALL-E 3. GPUs’ ability to perform many computations in parallel make them well-suited to training today’s most capable AI.
But the generative AI boom -- a windfall for GPU makers like Nvidia -- has massively strained the GPU supply chain. Microsoft is facing a shortage of the server hardware needed to run AI so severe that it might lead to service disruptions, the company warned in a summer earnings report. And Nvidia's best-performing AI chips are reportedly sold out until 2024.
GPUs are also essential for running and serving OpenAI's models; the company relies on clusters of GPUs in the cloud to perform customers' workloads. But they come at a sky-high cost.
An analysis from Bernstein analyst Stacy Rasgon found that if ChatGPT queries grew to a tenth the scale of Google Search, it'd require roughly $48.1 billion worth of GPUs initially and about $16 billion worth of chips a year to keep operational.
OpenAI wouldn't be the first to pursue creating its own AI chips.
Google has a processor, the TPU (short for "tensor processing unit"), to train large generative AI systems like PaLM-2 and Imagen. Amazon offers proprietary chips to AWS customers both for training (Trainium) and inferencing (Inferentia). And Microsoft, reportedly, is working with AMD to develop an in-house AI chip called Athena, which OpenAI is said to be testing.
Certainly, OpenAI is in a strong position to invest heavily in R&D. The company, which has raised more than $11 billion in venture capital, is nearing $1 billion in annual revenue. And it's considering a share sale that could see its secondary-market valuation soar to $90 billion, according to a recent Wall Street Journal report.
But hardware is an unforgiving business -- particularly AI chips.
Last year, AI chipmaker Graphcore, which allegedly had its valuation slashed by $1 billion after a deal with Microsoft fell through, said that it was planning to job cuts due to the "extremely challenging" macroeconomic environment. (The situation grew more dire over the past few months as Graphcore reported falling revenue and increased losses.) Meanwhile, Habana Labs, the Intel-owned AI chip company, laid off an estimated 10% of its workforce. And Meta's custom AI chip efforts have been beset with issues, leading the company to scrap some its experimental hardware.
Even if OpenAI commits to bringing a custom chip to market, such an effort could take years and cost hundreds of millions of dollars annually. It remains to be seen if the startup's investors, one of which is Microsoft, have the appetite for such a risky bet.

OpenAI said to be considering developing its own AI chips

Discussions of AI chip strategies within the company have been ongoing since at least last year, according to Reuters, as the shortage of chips to train AI models worsens. GPUs’ ability to perform many computations in parallel make them well-suited to training today’s most capable AI...

au.finance.yahoo.com

 

[David holland]

I think many people here are too much in love with Sean Hehir and that's why they don't criticize him. Personally, I don't think he's doing a good job because he doesn't let us know what's happening and because he doesn't care about the SP. I can't judge the rest of his work, but since he doesn't talk about it (not the minor details, of course), I have to judge it negatively. And it is my right as a stockholder to do so.
It is also the company's job to monitor the SP and make shareholders feel more comfortable about their investments by releasing information more often. It seems to me like he doesn't care about shareholders at all and I don't like that feeling. I have worked for many CEOs in my long life and know how a CEO should appear in public. Sean is not like that at all. You got to the point with Church Mouse.

I really hope I'm completely wrong when I see the next 4C, and I'm more than willing to apologize then.

At the end of the day Brainchip need there juice in products , Products and Revenue if there is none it's going to be a short conversation

 

[JDelekto]

Thanks mate.
There’s a lot of scaremongering going on over there, I know that is all part of the tactic but it got me thinking.
I hope what you stated is correct, it puts my mind at ease.

There is a lot of scaremongering going on over at HC. Since one's natural inclination is to be curious about the drama, getting caught up and emotional about it is too easy.

Some will have you think that it is shorter or manipulators; however, I believe the vast majority are trolls --some who may have been burned in their bad investments and want to feel better about their losses, or some who take joy in the suffering of others and watch their reactions as they push buttons. As Alfred Pennyworth (Bruce Wayne's butler, played by Michael Caine) quoted in 'The Dark Knight': "Some men aren't looking for anything logical, like money. They can't be bought, bullied, reasoned, or negotiated with. Some men just want to watch the world burn."

It's not to say that there aren't day traders making some profit from the short upswing or by shorting the stock, but I don't think that it constitutes the parade of antagonists that come out of the woodwork as the stock drops lower. To be fair - a similar reaction in the opposite direction happens when the stock price is green. In my opinion (this is not advice), this is a long-term hold for my retirement. The decline in stock price has contributed to a very high opportunity cost for those with substantial holdings over the past several years.

I do think that there are a handful of people who understand BrainChip's marketing strategy and the technology behind it, and there are some people who honestly do not understand the technology, the target customers, the timelines it takes for BrainChip to be successful by their customers launching their products containing BrainChip's IP. They only look at the fundamentals and that BrainChip does not yet have a continuous and sustainable revenue stream.

I have said before that I would reassess my investment in 2025. A good portion of my investment is in my retirement accounts, so while I have some time that money is (technically) inaccessible, others cannot hold onto BRN for such a long period as the company continues its lengthy journey to becoming profitable. Their technology is not yet widely adopted in various industries, and companies that sell event-based sensors (such as Prophesee) are serendipity for BrainChip's event-based neuromorphic processor.

Just know that the marketing strategy that BrainChip has chosen is not quite as transparent as most investors would like. NDAs that protect trade secrets and revenue streams from suppliers using BrainChip's IP selling their products to OEMs will obscure where BrainChip's revenues will originate. While I believe the announcement of any signed contracts will bring about a temporary rise in the stock price, other price-sensitive announcements will do little for those basing their investment strategy on the company's revenues. This has already been evidenced by the continued decline in stock price, even after recent price-sensitive announcements on the ASX.

I would read the news that BrainChip publishes on their site and testimonials by those who have evaluated the technology or have already incorporated it into their designs. Look at the partnerships they are creating, the recognition they are garnering in the AI community (specifically Edge IoT), and how they differentiate from the other well-known companies staking claims in the broad area of AI development.

I believe in doing the research and not being swayed by the maligned individuals who serve no more than to get a reaction out of others suffering paper losses. I hope that when the pendulum does swing in the opposite direction, those who have made a fortune on their investments will show more class than these individuals and silently take great joy in them.

 

[Bravo]

This could be something with keeping our 1000 eyes peeled on, especially since we recently-ish (1 June 2023) had Shyamal Anadkat from OpenAI touting the benefits of BrainChip's AKIDA.

OpenAI said to be considering developing its own AI chips​

• Kyle Wiggers

Sat, 7 October 2023 at 6:31 am AEDT·3-min read

OpenAI, one of the best-funded AI startups in business, is exploring making its own AI chips.
Discussions of AI chip strategies within the company have been ongoing since at least last year, according to Reuters, as the shortage of chips to train AI models worsens. OpenAI is reportedly considering a number of strategies to advance its chip ambitions, including acquiring an AI chip manufacturer or mounting an effort to design chips internally.
OpenAI CEO Sam Altman has made the acquisition of more AI chips a top priority for the company, Reuters reports.

Currently, OpenAI, like most of its competitors, relies on GPU-based hardware to develop models such as ChatGPT, GPT-4 and DALL-E 3. GPUs’ ability to perform many computations in parallel make them well-suited to training today’s most capable AI.
But the generative AI boom -- a windfall for GPU makers like Nvidia -- has massively strained the GPU supply chain. Microsoft is facing a shortage of the server hardware needed to run AI so severe that it might lead to service disruptions, the company warned in a summer earnings report. And Nvidia's best-performing AI chips are reportedly sold out until 2024.
GPUs are also essential for running and serving OpenAI's models; the company relies on clusters of GPUs in the cloud to perform customers' workloads. But they come at a sky-high cost.
An analysis from Bernstein analyst Stacy Rasgon found that if ChatGPT queries grew to a tenth the scale of Google Search, it'd require roughly $48.1 billion worth of GPUs initially and about $16 billion worth of chips a year to keep operational.
OpenAI wouldn't be the first to pursue creating its own AI chips.
Google has a processor, the TPU (short for "tensor processing unit"), to train large generative AI systems like PaLM-2 and Imagen. Amazon offers proprietary chips to AWS customers both for training (Trainium) and inferencing (Inferentia). And Microsoft, reportedly, is working with AMD to develop an in-house AI chip called Athena, which OpenAI is said to be testing.
Certainly, OpenAI is in a strong position to invest heavily in R&D. The company, which has raised more than $11 billion in venture capital, is nearing $1 billion in annual revenue. And it's considering a share sale that could see its secondary-market valuation soar to $90 billion, according to a recent Wall Street Journal report.
But hardware is an unforgiving business -- particularly AI chips.
Last year, AI chipmaker Graphcore, which allegedly had its valuation slashed by $1 billion after a deal with Microsoft fell through, said that it was planning to job cuts due to the "extremely challenging" macroeconomic environment. (The situation grew more dire over the past few months as Graphcore reported falling revenue and increased losses.) Meanwhile, Habana Labs, the Intel-owned AI chip company, laid off an estimated 10% of its workforce. And Meta's custom AI chip efforts have been beset with issues, leading the company to scrap some its experimental hardware.
Even if OpenAI commits to bringing a custom chip to market, such an effort could take years and cost hundreds of millions of dollars annually. It remains to be seen if the startup's investors, one of which is Microsoft, have the appetite for such a risky bet.

OpenAI said to be considering developing its own AI chips

Discussions of AI chip strategies within the company have been ongoing since at least last year, according to Reuters, as the shortage of chips to train AI models worsens. GPUs’ ability to perform many computations in parallel make them well-suited to training today’s most capable AI...

au.finance.yahoo.com

And this too...which suggests OpenAi maybe considering acquiring a chip company...

OpenAI could make its own AI chips

OpenAI's new strategy to keep its AI services immune to the ongoing chip shortage is building its in-house AI chips.

www.xda-developers.com

 

[Dugnal]

And this too...which suggests OpenAi maybe considering acquiring a chip company...

View attachment 46534


View attachment 46530

View attachment 46532

OpenAI could make its own AI chips

OpenAI's new strategy to keep its AI services immune to the ongoing chip shortage is building its in-house AI chips.

www.xda-developers.com

 

[Dugnal]

Details emerge on Jony Ive and OpenAI’s plan to build the ‘iPhone of artificial intelligence’..​

The project aims to create a more natural way to interact with AI, fueled by over $1 billion in funding from Softbank CEO Masayoshi Son... the largest shareholder in ARM.

from the Verge,, https://www.theverge.com/2023/9/28/...tman-iphone-of-artificial-intelligence-device