BRN Discussion Ongoing

[itsol4605]

A new analysis of the potential of Brainchip's Akida

 

[Guzzi62]

I think given the events of the last couple of days and associated sentiment change of people within the community here that it might be prudent to reassess the operating circumstances of the company and our current stake in it.

Currently, we all possess some level of investment in a company providing a cutting edge product that most technology companies are not actually placed to implement into existing products. This company currently has a market valuation of 350m.

If even one significant revenue generating deal were to be signed, the company would likely move from a loss creator to break even (or profitable). This would likely allow the company to move from strength to strength garnering a significant increase in the share price. In fact, many speculate that the company has the potential to become a several billion dollar company if such deals come to fruition.

Given the potential value of the company, If the process of securing such a deal was linear or assured, the market would have taken this into its consideration of BRNs value long ago. The fact it has not done so provides some insight into the complexity of the field in which BRN navigates, and reminds us retail investors that success will be hard fought and is evidently not a guarantee.

Many apportion this to the affect of manipulation or shorters, but I believe a more balanced take is that the market has priced in the complexity of procuring such a deal, and the risk of us not being able to.

Realistically, we hold a stake in a company that has the ability to 10/100x based on its current valuation. Instead of viewing the signing of large or significant deals that will have a transformative effect on the fortunes of the company as a guarantee, I think some are beginning to realise (and sophisticated investors which we love to lament have known all along) that this is not the case. In no other field of investment (or gambling) would punters enter into an arrangement expecting that a 10/100x shot was a surety.

Whilst I relate to the issues that many have with Sean and the current leadership team, I think that many have placed an unrealistic (admittedly one contributed to by leadership/BOD themselves) expectation on their shoulders. The task of procuring a long term revenue generating deal was always an enormous one. Deapite not meeting their initial expectations of revenue generating deals being signed within their initial tenure, I think many may need to take a step back and realise the enormity and complexity of their task.

As mentioned, institutions and SIs recognise this and have priced BRN appropriately. I for one am comfortable with risk I have taken on by purchasing a stake in the company given the fact it has the potential to significantly change my personal circumstances if it one day meets the potential value we all expect. However, given the circumstances I also recognise that this success is not guaranteed, and if it were I would not have had the opportunity to secure as large a stake as I have.

I will continue to follow BRN news from time to time and check in with its SP movements, but will be reframing my mindset to a more realistic one - the odds are stacked against the company in a relatively tough business environment - a deal in the short/medium term would represent a huge success - one that “bookmakers” have not taken into consideration in their current pricing evaluation - and would not simply be par for the course of normal expectation.

I know many have been invested for long periods and will view this differently, but I think given the circumstances and the markets valuation this outlook is probably quite realistic.

What a super good post that is

Let's say they can't sell any IP, can they sell on the IP's to say Nvidia for a billion $ and close the shop?

Well I guess it's the same selling the company in order to survive in some capacity and shareholders gets out with the skin on the nose.

I really hope that it will not end at that and as I said before, I am giving them until next AGM to prove they are as good as their words.

I am still over 90% sure they will succeed considering AI on the edge is still a fairly new point of interest and the people in management, the board of directors and the science advisory board, all very smart persons putting their reputation on the line. Those persons are not crooks but okay success isn't given either.
The main thing is being patient, ahh well, we heard that one before but it still applies. All big companies was struggling in the beginning, earnings was lumpy (I hard that one before as well).

https://brainchip.com/company/

 

[FiveBucks]

Hoping for a grey day today lol

 

[7für7]

Come on!!! 21

 

[7für7]

Is this interesting!? Thanks Dallas

Unified Capital Partners (UCPS) on LinkedIn: #edgeai #neuromorphic #akida #brainchip #silicon #lowpower #performance…

Unified Capital Partners (UCPS) is honoured to be acting as Sole Lead Manager, Underwriter and Bookrunner to raise $25 million by way of a $22 million fully…

www.linkedin.com

 

[MadMayHam | 合氣道]

What a super good post that is

Let's say they can't sell any IP, can they sell on the IP's to say Nvidia for a billion $ and close the shop?

Well I guess it's the same selling the company in order to survive in some capacity and shareholders gets out with the skin on the nose.

I really hope that it will not end at that and as I said before, I am giving them until next AGM to prove they are as good as their words.

I am still over 90% sure they will succeed considering AI on the edge is still a fairly new point of interest and the people in management, the board of directors and the science advisory board, all very smart persons putting their reputation on the line. Those persons are not crooks but okay success isn't given either.
The main thing is being patient, ahh well, we heard that one before but it still applies. All big companies was struggling in the beginning, earnings was lumpy (I hard that one before as well).

https://brainchip.com/company/

Truth be told, I'd rather have lumpy than empty any given day..

 

[Smoothsailing]

What a great read and spot on, thank you: We are on the right path, it’s going to happen.

 

[IloveLamp]

 

[TECH]

Good afternoon stakeholders,

Well, after thinking about what I read yesterday, the only disappointing area for me was seeing $48,000 USD in cash receipts, am I to
assume that only 50 Edge-Box's were sold, meaning 100 AKD I chips, I stuck my neck out thinking the cash receipts would be north of
about $300,000, anyway, some may remember that I reached out to VVDN a little while ago and at the time of posting hadn't heard a word,
well a couple of weeks ago I received an email from them, promoting the company, but nothing about the Akida AI Edge-Box, then today I
received a direct invitation/request for a zoom call with the software product engineers team, at my earliest convenience !!

Maybe the way in which I worded my questions gave out the wrong impression, I think I'll need Jesse Chapmans engineering background
to get me out of this one !!

Back to the report.

Having calculated the funding, our balance sheet will include the following during this current quarter:

16.777 Million AUD (Cash on Hand)
5.565 Million AUD (LDA Capital- Final Payment)
25.000 Million AUD (Capital Raising/SPP)

47.342 Million AUD Total Funds

With a steady cash burn of around 6.154 Million AUD per quarter, it would indicate all things being equal, we will have around 23 months
or 7.69 quarters of runway, without any revenue, so help me God !!

Having Peter making himself available for the SAB is fantastic, despite losing 3 top class SAB members, the two coming onboard are
excellent replacements, with heaps of experience who will no doubt offer new dynamic ideas and a fresh prospective on things as we move
into this next phase.

On a sad note, I'm sorry to see our Research Institute close down, but I understand why to some degree, I can't state this as fact, but I'm
100% sure Peter would have been fighting hard to keep it open for business in downtown Perth.

So, overall, despite feeling a little disappointed with yesterdays news, many positives were visible and let's all be honest, the technology
isn't going away, it's only becoming stronger, month by month....we know Mercedes Benz is going to name another partner later this year,
maybe October ? who knows, we may just feature in the equation.

Keep the faith.....Tech

 

[Pom down under]

Just confirming received a response and will be getting an application form in the post

 

[Meatloaf]

I think given the events of the last couple of days and associated sentiment change of people within the community here that it might be prudent to reassess the operating circumstances of the company and our current stake in it.

Currently, we all possess some level of investment in a company providing a cutting edge product that most technology companies are not actually placed to implement into existing products. This company currently has a market valuation of 350m.

If even one significant revenue generating deal were to be signed, the company would likely move from a loss creator to break even (or profitable). This would likely allow the company to move from strength to strength garnering a significant increase in the share price. In fact, many speculate that the company has the potential to become a several billion dollar company if such deals come to fruition.

Given the potential value of the company, If the process of securing such a deal was linear or assured, the market would have taken this into its consideration of BRNs value long ago. The fact it has not done so provides some insight into the complexity of the field in which BRN navigates, and reminds us retail investors that success will be hard fought and is evidently not a guarantee.

Many apportion this to the affect of manipulation or shorters, but I believe a more balanced take is that the market has priced in the complexity of procuring such a deal, and the risk of us not being able to.

Realistically, we hold a stake in a company that has the ability to 10/100x based on its current valuation. Instead of viewing the signing of large or significant deals that will have a transformative effect on the fortunes of the company as a guarantee, I think some are beginning to realise (and sophisticated investors which we love to lament have known all along) that this is not the case. In no other field of investment (or gambling) would punters enter into an arrangement expecting that a 10/100x shot was a surety.

Whilst I relate to the issues that many have with Sean and the current leadership team, I think that many have placed an unrealistic (admittedly one contributed to by leadership/BOD themselves) expectation on their shoulders. The task of procuring a long term revenue generating deal was always an enormous one. Deapite not meeting their initial expectations of revenue generating deals being signed within their initial tenure, I think many may need to take a step back and realise the enormity and complexity of their task.

As mentioned, institutions and SIs recognise this and have priced BRN appropriately. I for one am comfortable with risk I have taken on by purchasing a stake in the company given the fact it has the potential to significantly change my personal circumstances if it one day meets the potential value we all expect. However, given the circumstances I also recognise that this success is not guaranteed, and if it were I would not have had the opportunity to secure as large a stake as I have.

I will continue to follow BRN news from time to time and check in with its SP movements, but will be reframing my mindset to a more realistic one - the odds are stacked against the company in a relatively tough business environment - a deal in the short/medium term would represent a huge success - one that “bookmakers” have not taken into consideration in their current pricing evaluation - and would not simply be par for the course of normal expectation.

I know many have been invested for long periods and will view this differently, but I think given the circumstances and the markets valuation this outlook is probably quite realistic.

Ok, fair enough. Maybe you’re right, maybe it’s time to reassess.

Yesterday I had a hissy fit cause so much has been stated by management and posters on this forum which has led to high expectations.

Management have told us that they have several EAP’s who they are working with and that they have received positive feedback. Then they stated that Akida 1 needed to be improved upon as customers have demanded more. So back to the drawing board and Akida 2 is born.
We keep hearing how Brn are years ahead of the competition and that Brn are leading the race in AI.

Die hard posters and cheer squad have insisted that Brn is number one and any negativity is brought on by shorters. They point out the partnerships, the patents, the staff being recruited etc etc.


But, I also came to the realisation yesterday that shorters were not to blame for the SP decline. Sure they played a part but the truth is that Brn management had nothing to show, in the way of progress, which made the shorters job a lot easier. If Brn revenue was going from strength to strength, shorters would not be celebrating.

Some will argue that Brn had made progress and I’m too naive to see it but while partnerships are necessary they don’t guarantee revenue nor progression to IP.

In my opinion, management have not done enough to communicate with SH in regards to progress. They have hidden themselves behind the NDA’s and stated nothing can be said. But they could have been honest and stated some of the obstacles that they face and what they are doing to try to overcome them.

However, I have come to the same conclusion that you have. I’m going to lower my expectations, ignore the speculation that’s been posted, ignore the down ramping and place Brn shares in the bottom draw cause they are not reaching their current full potential and do not deserve my full attention.

I also have invested a fair bit of my money in Brn and would like to see that come to fruition but I know longer have the belief in management as I once did. I will continue to hold as I’m carrying a decent loss and still hold a glimmer of hope that things may turn around.

This is just my opinion. Not financial advice by any means.

 

[Fenris78]

I am also extremely frustrated with the words from our CEO - "Explosion of sales etc etc." Normally, I would have lost faith in management and ejected long ago... But... what keeps me intrigued and holding... isn't the words from our management... it's the validation from companies like Tata, Mercedes, NASA, the European sapce Agency, Megachips, Arm, Intel etc. I've been burnt by "lifestyle" companies in the past, spruking glossy brochures and false promises only to dissapear into receivership. But, no such company, has had the heavy weight of their industry promoting how great their product is - as Brainchip does. That alone has me keeping the faith and telling myself to be more patient.

 

[DingoBorat]

Yup.... another year, another big fat nothing, beyond "hey give us some money, I'll be good for it next month promised, big things are coming".

Like many, I feel this is becoming a joke. AGM sounded promising to me... CR now looks like the same old same old.

Anyways. Back to my cave I go.

Sorry.. Your post just reminded me of this old pearler ..

 

[Plebby]

Ok, fair enough. Maybe you’re right, maybe it’s time to reassess.

Yesterday I had a hissy fit cause so much has been stated by management and posters on this forum which has led to high expectations.

Management have told us that they have several EAP’s who they are working with and that they have received positive feedback. Then they stated that Akida 1 needed to be improved upon as customers have demanded more. So back to the drawing board and Akida 2 is born.
We keep hearing how Brn are years ahead of the competition and that Brn are leading the race in AI.

Die hard posters and cheer squad have insisted that Brn is number one and any negativity is brought on by shorters. They point out the partnerships, the patents, the staff being recruited etc etc.


But, I also came to the realisation yesterday that shorters were not to blame for the SP decline. Sure they played a part but the truth is that Brn management had nothing to show, in the way of progress, which made the shorters job a lot easier. If Brn revenue was going from strength to strength, shorters would not be celebrating.

Some will argue that Brn had made progress and I’m too naive to see it but while partnerships are necessary they don’t guarantee revenue nor progression to IP.

In my opinion, management have not done enough to communicate with SH in regards to progress. They have hidden themselves behind the NDA’s and stated nothing can be said. But they could have been honest and stated some of the obstacles that they face and what they are doing to try to overcome them.

However, I have come to the same conclusion that you have. I’m going to lower my expectations, ignore the speculation that’s been posted, ignore the down ramping and place Brn shares in the bottom draw cause they are not reaching their current full potential and do not deserve my full attention.

I also have invested a fair bit of my money in Brn and would like to see that come to fruition but I know longer have the belief in management as I once did. I will continue to hold as I’m carrying a decent loss and still hold a glimmer of hope that things may turn around.

This is just my opinion. Not financial advice by any means.

I completely agree. Whilst I have framed our positioning in the market the way I have above, I believe that management’s lack of effective communication and somewhat empty promises have exacerbated the problem that we face.

There are many factors that help me and other holders like yourself remain bullish that an opportunity may present itself at some point in time. However, upon reflection I no longer view this as the certainty I did a year or two ago off the back of the commitments made by Sean and the board. In retrospect this was probably somewhat naive - if it was ever a certainty BRN would be valued very differently.

The primary factor in holding out hope is what I spoke to earlier - a single long term deal may very well bring BRN into a profitable position and overnight make a company.

Cross your fingers and take BRN off the watchlist until some substantive news arrives.

 

[Smoothsailing]

The fact BRN team is as high level as they go means their doing their jobs and we are being assessed by the biggest out there to sign up to this new revolutionary technology. It’s going to work