BRN Discussion Ongoing

[equanimous]

Happy to be here mate and begin providing some actual facts on BRN’s financials rather than just reading all the hype from the chippers. It’s not the first time I’ve posted here though, and I’m glad I’ve got some time off from my other stocks to put some comments on BRN’s financials.

So far I haven’t heard the chippers post anything on BRN’s multimillion dollar operational losses in all the years I’ve owned them. Not surprising really when you look at the figures below.

BRN’s operational losses over the past 5 years (shown below) are over US$100million

2019 were US$11.31million
2020 were US$26.82 million
2021 were US$20.98 million
2022 were US$22.07 million
2023 were US$28.88 million

Anyway, plenty more to add mate, especially when BRN is looking at another year of operational losses, already over US$11 million in the 2024 Half Yearly Report.

Nothing like you techies hyping the stock up, that’s what sucked me in years ago

Here are examples of high-market AI companies that have achieved significant valuations before generating substantial revenue:

OpenAI:
Valuation: OpenAI was valued at approximately $157 billion after raising $6.6 billion in funding in October 2024. Despite this high valuation, the company reportedly lost $5 billion per year, indicating it was not generating significant revenue at the time of the valuation.

Anthropic:
Valuation: Anthropic, an AI company known for its work in large language models, was in discussions to raise funds at a valuation between $30 billion to $40 billion. Previously, in February 2024, it raised $750 million at a valuation of around $18.4 billion, showing a significant jump in valuation without corresponding revenue growth.

xAI:
Valuation: xAI, founded by Elon Musk, was reported to have closed a funding round at a $24 billion post-money valuation in May 2024. Discussions were ongoing to potentially raise funds at a valuation that could nearly double this amount shortly thereafter, again reflecting high market expectations despite limited revenue.
Perplexity AI:
Valuation: Perplexity AI, an AI search startup, saw its valuation soar to $9 billion following a $500 million funding round. This indicates strong investor interest in AI technologies even before substantial revenue is generated.

Sierra:
Valuation: Founded by ex-Salesforce co-CEO Bret Taylor, Sierra raised $175 million in a funding round that valued the company at $4.5 billion. This was a significant jump from its previous valuation of nearly $1 billion just months earlier, highlighting the rapid escalation in AI startup valuations pre-revenue.

These examples illustrate how AI companies, particularly those focused on generative AI, large language models, or innovative AI applications, are often valued based on their potential rather than current revenue. This trend is driven by investor enthusiasm for AI's future impact across various industries, despite the high operational costs and risks associated with scaling AI technologies.

 

[Fullmoonfever]

Thanks for replying to me, it gave me the chance to repost my post that was moderated in a way that should be more acceptable to the moderator

Mate at least you’re the one person who gives a decent reply here, not like some here above your post with comments involving tears

The reason I came here is because the so called moderator of the threads here (and of companies I own) allowed a known troll to come over here from hot crapper and infest himself on the threads of a company I own that’s been fighting corruption from major Chinese companies trying to take us over for the last two years.

A lot of shareholders there have cancelled their TSE membership and left the thread and are no longer sharing info (me included) so I’ve come here.

As far as BRN, I personally don’t care whether the SP goes up or down, I’m beyond caring about that. I held 200,000 BRN shares when the SP hit $2.00 so I have seen the highs and the lows and I have only sold down to 170,000 shares over the last year to pay the bills.

The reason I came to this forum is for the reasons I mentioned, not for the reasons some chippers here think, and I’ll be staying here until I feel like leaving.

……………

Now to reply to you @HopalongPetrovski
I don’t take glee in any of it. The troll on the other company I own is the one who is taking all the glee and if the moderator allows it I’ll just post over here.

I’ve told you about me, I’m a BRN holder and I rather stick to making comments about the company anyway.

Chipper’s banding together is fine, if you think karma will come my way that’s fine too. What I’m doing is raising awareness about companies I own and now that the moderator has warned me I’ll be more careful. You chipper’s are probably lucky you have never had to deal with the corruption shareholders in the other company have for the last two years.

Now that you seem to suggest all sorts of things about me personally, perhaps we get back to BRN and you could comment on these BRN share based expenses

2019 - US$ 1.63 million
2020 - US$ 1.43 million
2021 - US$ 4.36 million
2022 - US$ 9.14 million
2023 - US$11.35 million

And why BRN deserves a market cap of half a billion when revenue is virtually non existent

View attachment 74646

"comment on these BRN share based expenses

2019 - US$ 1.63 million
2020 - US$ 1.43 million
2021 - US$ 4.36 million
2022 - US$ 9.14 million
2023 - US$11.35 million

And why BRN deserves a market cap of half a billion when revenue is virtually non existent"

Given a proportion of remuneration across the the company comprises of share based components and that the staffing levels have increased over that period, milestones and additional performance metrics have been met, it would be expected the $ value would be increasing yoy.

Deserves?....you probably need to ask the market that question as it's the market that decides that MC not just the sample of SHs in this forum.

 

[HopalongPetrovski]

Thanks for replying to me, it gave me the chance to repost my post that was moderated in a way that should be more acceptable to the moderator

Mate at least you’re the one person who gives a decent reply here, not like some here above your post with comments involving tears

The reason I came here is because the so called moderator of the threads here (and of companies I own) allowed a known troll to come over here from hot crapper and infest himself on the threads of a company I own that’s been fighting corruption from major Chinese companies trying to take us over for the last two years.

A lot of shareholders there have cancelled their TSE membership and left the thread and are no longer sharing info (me included) so I’ve come here.

As far as BRN, I personally don’t care whether the SP goes up or down, I’m beyond caring about that. I held 200,000 BRN shares when the SP hit $2.00 so I have seen the highs and the lows and I have only sold down to 170,000 shares over the last year to pay the bills.

The reason I came to this forum is for the reasons I mentioned, not for the reasons some chippers here think, and I’ll be staying here until I feel like leaving.

……………

Now to reply to you @HopalongPetrovski
I don’t take glee in any of it. The troll on the other company I own is the one who is taking all the glee and if the moderator allows it I’ll just post over here.

I’ve told you about me, I’m a BRN holder and I rather stick to making comments about the company anyway.

Chipper’s banding together is fine, if you think karma will come my way that’s fine too. What I’m doing is raising awareness about companies I own and now that the moderator has warned me I’ll be more careful. You chipper’s are probably lucky you have never had to deal with the corruption shareholders in the other company have for the last two years.

Now that you seem to suggest all sorts of things about me personally, perhaps we get back to BRN and you could comment on these BRN share based expenses

2019 - US$ 1.63 million
2020 - US$ 1.43 million
2021 - US$ 4.36 million
2022 - US$ 9.14 million
2023 - US$11.35 million

And why BRN deserves a market cap of half a billion when revenue is virtually non existent

View attachment 74646

You keep coming back to these figures as if we here are not aware of BrainChips recent history.
Most of us here have been investing in the company for many more years than you have cited.
They're your figures Dave.
Just what is it that you are so concerned about?
And what do you think should be done about it?
You seem to be keen to educate us all.
What exactly is the issue and your proposed solution.
Let's have it.

 

[Dave Evans]

"comment on these BRN share based expenses

2019 - US$ 1.63 million
2020 - US$ 1.43 million
2021 - US$ 4.36 million
2022 - US$ 9.14 million
2023 - US$11.35 million

And why BRN deserves a market cap of half a billion when revenue is virtually non existent"

Given a proportion of remuneration across the the company comprises of share based components and that the staffing levels have increased over that period, milestones and additional performance metrics have been met, it would be expected the $ value would be increasing yoy.

Deserves?....you probably need to ask the market that question as it's the market that decides that MC not just the sample of SHs in this forum.

I don’t think US$20 million in share based expenses in the last two years is reasonable for a company whose operating losses were US$50 million over the same period

 

[Fullmoonfever]

I don’t think US$20 million in share based expenses in the last two years is reasonable for a company whose operating losses were US$50 million over the same period

Then you have your answer to your own question don't you....why ask the forum?

 

[Dave Evans]

You keep coming back to these figures as if we here are not aware of BrainChips recent history.
Most of us here have been investing in the company for many more years than you have cited.
They're your figures Dave.
Just what is it that you are so concerned about?
And what do you think should be done about it?
You seem to be keen to educate us all.
What exactly is the issue and your proposed solution.
Let's have it.

I’m not trying to educate you mate, I’m stating the financials for the last five years for every day investors (the majority, or those with between $1,000 and $5,000 invested) who read the hype and and think about throwing more money at BRN without knowing BRN relies on share dilution to keep the lights on.

@Fullmoonfever nice to see no one arguing that point at least

 

[equanimous]

I don’t think US$20 million in share based expenses in the last two years is reasonable for a company whose operating losses were US$50 million over the same period

Contextualizing Share-Based Compensation:

Growth and Talent Retention: Share-based compensation is often a strategic choice in tech companies, especially in fields like AI and neuromorphic computing where BrainChip operates. These sectors require highly specialized talent. Offering equity helps in attracting top-tier engineers, researchers, and executives who might otherwise be lured by larger tech firms. Given BrainChip's goal to pioneer in neuromorphic processing, such incentives are crucial for retaining talent during the company's growth phase.
Alignment of Interests: By compensating employees with shares, BrainChip aligns the interests of its workforce with those of its shareholders. Employees become stakeholders, which can drive motivation, productivity, and innovation - all essential for a company aiming to disrupt traditional computing with new AI paradigms.

Product and Market Potential:

Innovation and Market Position: BrainChip's Akida neuromorphic processor is designed to mimic human brain functions for AI processing at the edge, which promises significant energy efficiency and performance benefits over conventional processors. This innovation could lead to substantial market disruption, particularly in areas like IoT, automotive, and consumer electronics where low power consumption and real-time processing are critical. The investment in share-based compensation reflects confidence in these future revenue streams.
Comparative Valuation: While the share-based expenses might seem high relative to operating losses, consider that BrainChip is investing in its future. The technology sector often sees companies with high initial investments and losses before they achieve profitability. If BrainChip's technology becomes industry standard for edge AI, the current expenses could be justified by future market dominance.

Financial Strategy:

Funding and Investment: The use of stock options rather than cash conserves cash reserves for R&D and scaling operations. BrainChip's financial strategy might be to minimize cash outflows while still securing the human capital necessary for development. This approach is common when aiming for long-term growth over immediate profitability.
Market Perception: The market's valuation of BrainChip isn't solely based on current revenue but also on potential. Investors might be pricing in the future value of BrainChip's IP, partnerships (like with Intel and Arm), and the growing demand for efficient AI solutions.

Operational Losses:

Investment Phase: High operating losses often accompany companies in the investment phase of their lifecycle, especially in tech where product development cycles are long and costly. The losses reflect investments in product development, marketing, scaling operations, and establishing a market presence, which are necessary for a company like BrainChip to become a leader in neuromorphic AI.
Path to Profitability: The share-based compensation could be seen as laying the groundwork for future profitability by ensuring that key personnel are motivated to see the company through to when its products start generating significant revenue.

In conclusion, while the share-based expenses are significant, they should be evaluated in the context of BrainChip's strategic objectives, the competitive landscape of AI hardware, and the long-term vision of transforming computing with neuromorphic technology. The potential payoff could justify these expenses if BrainChip successfully captures even a fraction of the emerging market for edge AI.

 

[Fullmoonfever]

I’m not trying to educate you mate, I’m stating the financials for the last five years for every day investors (the majority, or those with between $1,000 and $5,000 invested) who read the hype and and think about throwing more money at BRN without knowing BRN relies on share dilution to keep the lights on.

@Fullmoonfever nice to see no one arguing that point at least

No one's stated they agree with you either.

Individuals have invested on their own risk assessment...what do you care?

 

[Dave Evans]

Contextualizing Share-Based Compensation:

Growth and Talent Retention: Share-based compensation is often a strategic choice in tech companies, especially in fields like AI and neuromorphic computing where BrainChip operates. These sectors require highly specialized talent. Offering equity helps in attracting top-tier engineers, researchers, and executives who might otherwise be lured by larger tech firms. Given BrainChip's goal to pioneer in neuromorphic processing, such incentives are crucial for retaining talent during the company's growth phase.
Alignment of Interests: By compensating employees with shares, BrainChip aligns the interests of its workforce with those of its shareholders. Employees become stakeholders, which can drive motivation, productivity, and innovation - all essential for a company aiming to disrupt traditional computing with new AI paradigms.

Product and Market Potential:

Innovation and Market Position: BrainChip's Akida neuromorphic processor is designed to mimic human brain functions for AI processing at the edge, which promises significant energy efficiency and performance benefits over conventional processors. This innovation could lead to substantial market disruption, particularly in areas like IoT, automotive, and consumer electronics where low power consumption and real-time processing are critical. The investment in share-based compensation reflects confidence in these future revenue streams.
Comparative Valuation: While the share-based expenses might seem high relative to operating losses, consider that BrainChip is investing in its future. The technology sector often sees companies with high initial investments and losses before they achieve profitability. If BrainChip's technology becomes industry standard for edge AI, the current expenses could be justified by future market dominance.

Financial Strategy:

Funding and Investment: The use of stock options rather than cash conserves cash reserves for R&D and scaling operations. BrainChip's financial strategy might be to minimize cash outflows while still securing the human capital necessary for development. This approach is common when aiming for long-term growth over immediate profitability.
Market Perception: The market's valuation of BrainChip isn't solely based on current revenue but also on potential. Investors might be pricing in the future value of BrainChip's IP, partnerships (like with Intel and Arm), and the growing demand for efficient AI solutions.

Operational Losses:

Investment Phase: High operating losses often accompany companies in the investment phase of their lifecycle, especially in tech where product development cycles are long and costly. The losses reflect investments in product development, marketing, scaling operations, and establishing a market presence, which are necessary for a company like BrainChip to become a leader in neuromorphic AI.
Path to Profitability: The share-based compensation could be seen as laying the groundwork for future profitability by ensuring that key personnel are motivated to see the company through to when its products start generating significant revenue.

In conclusion, while the share-based expenses are significant, they should be evaluated in the context of BrainChip's strategic objectives, the competitive landscape of AI hardware, and the long-term vision of transforming computing with neuromorphic technology. The potential payoff could justify these expenses if BrainChip successfully captures even a fraction of the emerging market for edge AI.

Mate I appreciate the info, straight off BRN’s website was it. The thing is, it doesn’t seem to matter how good the KPM are, they haven’t made the company profitable, in fact just the opposite, and there’s been a few come and go in the time I’ve held

 

[Dave Evans]

No one's stated they agree with you either.

Individuals have invested on their own risk assessment...what do you care?

Doesn’t hurt to educate investors mate. Not all investors know how important company’s financials are, and plenty of new investors get caught by hype. Maybe you don’t care but they do

 

[7für7]

No one's stated they agree with you either.

Individuals have invested on their own risk assessment...what do you care?

Do not feed the trolls

 

[Dave Evans]

Do not feed the trolls

Especially the ones that want to talk about a company’s finances

 

[Ethinvestor]

I just learned there is no such thing as free speech… anymore … i been moderated for saying about somebody he is that stupid.. i thought it is legal to even say that to a police officer if thats what i think lol… but i guess i just keep to the rules …

 

[Ethinvestor]

I just learned there is no such thing as free speech… anymore … i been moderated for saying about somebody he is that stupid.. i thought it is legal to even say that to a police officer if thats what i think lol… but i guess i just keep to the rules …

And Dave Evans I apologise i didnt mean that .. i was just in a good mood in the morning Bali time

 

[HopalongPetrovski]

I’m not trying to educate you mate, I’m stating the financials for the last five years for every day investors (the majority, or those with between $1,000 and $5,000 invested) who read the hype and and think about throwing more money at BRN without knowing BRN relies on share dilution to keep the lights on.

@Fullmoonfever nice to see no one arguing that point at least

Ok Dave.
So you're here to look out for the majority of investors (those with between $1000-5000 invested) who may be fooled into increasing their investment by the hype presented here and you think the company is not being run reasonably?

But again Dave, just what exactly do you propose is the solution?
Do you propose we sack the Board and start again, or do you want Sean to go, or what?
Or do you not have a solution to offer?
If you have a clever "fix" for BrainChip's woes, I'm sure we would all like to hear it.

 

[Fullmoonfever]

Doesn’t hurt to educate investors mate. Not all investors know how important company’s financials are, and plenty of new investors get caught by hype. Maybe you don’t care but they do

And you've posted the education.

Did I say I don't care?

This is where it gets murky as to your posting doesn't it....trying to twist or put words in anothers posts.

Google's your friend if want some education and people can also take ownership and make the effort to educate themselves.

What you consider important to you may not carry as much weight to anothers investment strategy or risk profile.

Are your concerns, analysis or fears much diff from the so called hype you speak of?

They both put messages out there for the reader to decide what is important to them or not or what needs further investigation.

I don't mind if someone has a contrarian view, wants to voice something or have a vent.

Gets tiresome when the message gets put on repeat.

 

[manny100]

Thanks for replying to me, it gave me the chance to repost my post that was moderated in a way that should be more acceptable to the moderator

Mate at least you’re the one person who gives a decent reply here, not like some here above your post with comments involving tears

The reason I came here is because the so called moderator of the threads here (and of companies I own) allowed a known troll to come over here from hot crapper and infest himself on the threads of a company I own that’s been fighting corruption from major Chinese companies trying to take us over for the last two years.

A lot of shareholders there have cancelled their TSE membership and left the thread and are no longer sharing info (me included) so I’ve come here.

As far as BRN, I personally don’t care whether the SP goes up or down, I’m beyond caring about that. I held 200,000 BRN shares when the SP hit $2.00 so I have seen the highs and the lows and I have only sold down to 170,000 shares over the last year to pay the bills.

The reason I came to this forum is for the reasons I mentioned, not for the reasons some chippers here think, and I’ll be staying here until I feel like leaving.

……………

Now to reply to you @HopalongPetrovski
I don’t take glee in any of it. The troll on the other company I own is the one who is taking all the glee and if the moderator allows it I’ll just post over here.

I’ve told you about me, I’m a BRN holder and I rather stick to making comments about the company anyway.

Chipper’s banding together is fine, if you think karma will come my way that’s fine too. What I’m doing is raising awareness about companies I own and now that the moderator has warned me I’ll be more careful. You chipper’s are probably lucky you have never had to deal with the corruption shareholders in the other company have for the last two years.

Now that you seem to suggest all sorts of things about me personally, perhaps we get back to BRN and you could comment on these BRN share based expenses

2019 - US$ 1.63 million
2020 - US$ 1.43 million
2021 - US$ 4.36 million
2022 - US$ 9.14 million
2023 - US$11.35 million

And why BRN deserves a market cap of half a billion when revenue is virtually non existent

View attachment 74646

For all intents and purposes BRN is a US based company with a global presence. US companies are big on incentivizing employees at all levels and BRN is no exception.
As a result BRN 'insiders' hold 15.5% - 16.6% of SOI (See Simply WS and Yahoo Finance). That shows confidence. It also ensures enough AGM power to prevent spills. It also acts as a takeover block. Even Sean's predecessor LDN is still in the Top 25 holder's.
Sean and the Chairman Tony V have been accumulating heavily, quickly and are now in the Top 50.
Sean if he repeats his 2024 effort should be in the Top 25 by 2025 year end. That shows the value of RSU's.
Insiders usually know a little more than the market and may be a hint as to what is to come..
Now all that gives confidence.
Sometimes it's best not to bet bolted to the past but be alert to what may be ahead.

 

[DingoBorat]

Do not feed the trolls

Whoa, wait, did you say he's a troll??...

Where is Wilzy, when you need him ..

 

[HopalongPetrovski]

Whoa, wait, did you say he's a troll??...


View attachment 74647


Where is Wilzy, when you need him ..

I think Wilzy concluded we are just an interminable bin fire and has opted out till all the shorter's and wilful manipulators have been put to death.

 

[IloveLamp]

Cannot find a shred of technical information here, anyone know about these guys?

If i had to guess, I'd say it's a third party ip.

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