BRN Discussion Ongoing

[DingoBorat]

Hi there, if you head to brainchips recent (today I believe) podcast, Sean (reads) a response regarding this matter. I didn’t find anything said in the podcast remotely helpful but maybe you will??
Cheers

I just relistened to that part several times and it's not really clear to me ..

"would have benefited the Company, by avoiding a large options exercise (I thought that usually benefits the Company?) and sale of shares, required to meet tax obligations, associated with that exercise"

So was the benefit to the Company, from Mr Hernandez not needing to sell converted options, to cover his tax obligations, at a time when this sale, would have put pressure on the share price, when the Company needed to raise funds?

Won't Mr Hernandez, need to do the same now (if that was the issue) at a time when the share price is already depressed?

Only thing different, is that the Company does not now need to raise funds.

If the pressure on the share price at the time was the issue, then the benefit to the Company at that time, might be hard to quantify and could be worth any extra benefit to Mr Hernandez now.

 

[Rskiff]

I just relistened to that part several times and it's not really clear to me ..

"would have benefited the Company, by avoiding a large options exercise (I thought that usually benefits the Company?) and sale of shares, required to meet tax obligations, associated with that exercise"

So was the benefit to the Company, from Mr Hernandez not needing to sell converted options, to cover his tax obligations, at a time when this sale, would have put pressure on the share price, when the Company needed to raise funds?

Won't Mr Hernandez, need to do the same now (if that was the issue) at a time when the share price is already depressed?

Only thing different, is that the Company does not now need to raise funds.

If the pressure on the share price at the time was the issue, then the benefit to the Company at that time, might be hard to quantify and could be worth any extra benefit to Mr Hernandez now.

just to say the share price was around $1.20 at that time. Oh they were the days

 

[GingerRogers]

"would have benefited the Company, by avoiding a large options exercise (I thought that usually benefits the Company?) and sale of shares, required to meet tax obligations, associated with that exercise"

So was the benefit to the Company, from Mr Hernandez not needing to sell converted options, to cover his tax obligations, at a time when this sale, would have put pressure on the share price, when the Company needed to raise funds?

Won't Mr Hernandez, need to do the same now (if that was the issue) at a time when the share price is already depressed?

Only thing different, is that the Company does not now need to raise funds.

If the pressure on the share price at the time was the issue, then the benefit to the Company at that time, might be hard to quantify and could be worth any extra benefit to Mr Hernandez now.

yeah I agree. I didn’t find any of it helpful. If this podcast is anything to go by, I don’t think us shareholders should expect many adequate answers from Sean during the AGM. Very much another fluff piece to make us feel warm and fuzz before we vote on performance rights etc.
If one carefully analyses the language and responses to questions in the podcast, one is felt like their intelligence is insulted by a used salesman.
Love the tech boffins Peter, etc…. CEO…..salesman….
I am a LTH and will continue to be. However, as amazing as the actual tech is, for me, it’s only amazing if others want to use the IP and that is yet to be realised and we still don’t know if it ever will be realised, based on answers given like these in podcasts.

 

[Dang Son]

I don’t find it offensive as if you don’t ask you don’t get. I just find it unfair until we start seeing regular revenue from customers and then I’d be more than happy to vote yes.

I wonder why it became shareholders problem that Manny failed to put his own skin in the game.

 

[DingoBorat]

yeah I agree. I didn’t find any of it helpful. If this podcast is anything to go by, I don’t think us shareholders should expect many adequate answers from Sean during the AGM. Very much another fluff piece to make us feel warm and fuzz before we vote on performance rights etc.
If one carefully analyses the language and responses to questions in the podcast, one is felt like their intelligence is insulted by a used salesman.
Love the tech boffins Peter, etc…. CEO…..salesman….
I am a LTH and will continue to be. However, as amazing as the actual tech is, for me, it’s only amazing if others want to use the IP and that is yet to be realised and we still don’t know if it ever will be realised, based on answers given like these in podcasts.

I don't think Sean is being disingenuous.
And car salesman like? That was Lou (sorry Lou ).
I think many here, actually cry out for Lou's style..

But Sean's answer to that question, did only raise more questions..

Also remember, the IP is now being utilized, by Renesas and MegaChips (MegaChips being an expansive application) as well as AKIDA1500, also already has customers.

We just haven't seen the growth in revenue from these yet, which is understandable, because it takes time and they are in the process, of being played out.

 

[Diogenese]

I don't like using the ignore button, but I am finding it very useful at the moment. The monotony and repetition of some resident downrampers, determined to undermine our company's achievements and excellent staff in defiance of the evidence is just too much for me. Problem solved now though!

I don't know how many shares the naysayers have (if any), but we will definitely be using our considerable shareholding to support the motions recommended by management. Our future depends on them continuing to advance our company and its revolutionary products. Time is on our side and I believe the future will validate our confidence.
Akida Balista
Deena

Bliss, ain't it?

 

[Diogenese]

Does anyone know a bit more about Intel's 18A process? It says here it's a 1.8nm process. Does anyone know if we can go down that low?



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The angstrom or ångström is a metric unit of length equal one ten-billionth (US) of a metre, a hundred-millionth of a centimetre, 0.1 nanometre, or 100 picometres. Its symbol is Å, a letter of the Swedish alphabet. The unit is named after the Swedish physicist Anders Jonas Ångström (1814–1874).

 

[Diogenese]

Obviously he hasn’t heard about not letting the door hit you on the way out.
It’ll be nice when the share price goes up and we’re all heroes and geniuses again.

fallen hero -

 

[Schnitzel lover]

Hi AG:
Please find the following from BRN ASX Ann dated on the 14/10/2022, which explains how this lapse happened and why the Company consider reissuing the shares to Mr Hernandes.

Laguna Hills, Calif. – 13 October 2022 – BrainChip Holdings Ltd (ASX: BRN), (OTCQX: BCHPY) (“Brainchip” or “the Company”) wishes to advise that the Company proposes the issue of 8 million Restricted Stock Units (RSUs) in Brainchip (New Rights) to Emmanuel Hernandez following his resignation and the lapse of options previously granted to him by the Company on 7 July 2017 (Options). The New Rights are to be issued in accordance with the Brainchip Long-term Incentive Plan (Plan) and invitation terms (Terms) and will be subject to required approvals under the ASX Listing Rules and Corporations Act at the Company’s next Annual General Meeting (AGM) or any earlier EGM that may be called by the Company.

The Options granted to Mr Hernandez lapsed on 1 March 2022, following his resignation from the Company.

Mr Hernandez expressed interest in reaching an agreement with the Company to avoid exercising his Options at the same time and instead to continue holding the Options beyond his resignation date up to expiration. The Company agreed to work with Mr Hernandez to find an alternative to exercising the Options as this was considered to be in the best interest of the Company and shareholders. In so doing, the parties entered into discussions relating to deferring the exercise of the Options. However, at the time of his resignation, it was determined that the Company could not modify the terms of the Options without seeking shareholder approval or a waiver from ASX in relation to Listing Rule approval requirements for any such modification. During the time required to investigate the proper method of modifying the Options and negotiating the terms with Mr Hernandez, the Options ultimately lapsed. As this occurred whilst Mr Hernandez was engaging with the Company on the process for exercise, the Company considers it appropriate to award Mr Hernandez with the new RSUs.

The Company has been exploring the best approach to address this issue, since the lapse of the Options, and has now agreed to issue the New Rights, subject to required shareholder approvals. The board does not consider that the issue of the New Rights will materially prejudice the Company or other shareholders.

Brainchip also considers the issue of the New Rights to Mr Hernandez to be a necessary step in the prevention of any potential claim by Mr Hernandez.

The terms of the New Rights are attached to this announcement

True that it is up to every individual to interpret and decide. BUT IT IS A CLEAR YES FOR ME VOTING FOR THIS MOTION AFTER READING.

Had a 2nd listen to the 3rd Quarter Q & A. I thought it was very good and addressed many of the queries often seen on forums.
Not sure why so many are complaining about the podcast but i suspect we may have a few downrampers deliberately stirring up unrest.
One thing that must be taken into account is that BRN is still regarded as a spec stock and that is what we invested in.
At least we now have a 'line of sight' as to when Gen 2 will be commercially available and that revenue will start to flow in (2024+).
I note that early adapters have access already.
I am optimistic and still accumulating.

Maybe the current license holders have it already as they contributed ideas to the updates.. That would indeed be exciting.. An Edge-rush to market sounds good.. Just pump the proverbial out of it customers and give us a sign!

 

[Dhm]

About the bonus shares etc. my opinion is that we are charting very unexplored waters with our first to market SNN IP and it is not as though potential customers say 'wow, sign me up' and away we go. This is NEW and so far ahead of existing processes that clients/partners have to turn their Titanic around and that is not easy. Therefore we need and have the best talent in Silicon Valley, and of course here in Australia. These people deserve performance bonuses, otherwise we get monkeys. Most of us here aren't privy to the criteria of how they are set and met, I'm just happy we seem to have the right global team to turn those Titanics around with supercharged engines.

In five years time when the SP is stratospheric we will look back at the pathway which was created when Sean joined Brainchip and thank the senior management.

 

[Schnitzel lover]

I think this matter needs to be spelt out in plain English, for the benefit of all.

Was there an exercise price for the options (as sometimes there's not).

I think the Company has stated, that it was beneficial for them at the time, that they were not exercised, how so?

How do the RSUs to be awarded, differ from the options that lapsed, do they entail extra benefit to Mr Hernandez?

Why is there risk of legal repercussions? On what grounds? And to what effect?

This needs to be all explained, in as simple terms, in the least volume, but containing all the facts.

It can't be that hard..

This seems to be a very important resolution, that the Company needs to get past/passed, but it's not being explained properly, in my opinion.

It’s not hard at all if you read the Annual reports.. 12.5c is Mannys exercise price..

 

[rgupta]

Good evening,

Once again the company is attempting to listen, Sean interviewed 3 times now in short succession, please stop all the moaning.

Brainchip Studio and Accelerator are so in the past, and from my understanding, despite all the chatter at the time, never performed
anywhere near as was expected, I'd have to go digging through my 1000's and 1000's of emails to spit out the facts.

Tony has opened up a new quarterly chatline with Sean, addressing common questions posed by the shareholders, it's another
positive step in the communication process, try to respect it for what it is, it's not a podium to make or reveal major announcements from.

I personally can't see the need for any future Capital Raising in the near future, why, because I'm like the rest of you, I'm expecting to see
revenue, lumpy or not, start to turn up between now and January 2025, unless something comes out of left field, it's all hands on deck and steady as she goes.

All of the above is my opinion, and only my opinion thanks.

Goodnight.

I am just wondering how much brn drawn from LDA upto date.
On top we had sold more than 10 million through LDA last year when sp was going north.
Thirdly through the last update company informed that LDA agrees to lend us upto 65 million on the same old deal.
So anyone have any idea how much is draw down from LDA till date and if there is difference in draw down limit why the same was not updated through ASX.
Dyor

 

[wilzy123]

These director bonus shares are not a given part of their healthy salary package by the fact they require Shareholder Approval.
Personally I find it offensive under current circumstances that bonuses be proposed at all.
With regards to past Chairman Manny Hernandez letting his options laps, and a generous BoD propose 8,000,000 share gift which requires Shareholder Approval because they ARE dilutive .5% of M/Cap that I also find offencive under shareholders circumstances on a bus in the dark stuck in reverse gear.

 

[Schnitzel lover]

View attachment 35015
It’s not hard at all if you read the Annual reports.. 12.5c is Mannys exercise price..

Actually, that’s maybe NQR..

If you goto pgs 56 & 57 of the 2022 Annual report it highlights the exercise prices are generally between 12.5-18c

 

[Deleted member 118]

I am just wondering how much brn drawn from LDA upto date.

I think it was mentioned in the annual general meeting notice recently, but I could be wrong.

 

[DingoBorat]

View attachment 35015
It’s not hard at all if you read the Annual reports.. 12.5c is Mannys exercise price..

Thanks for answering one of my questions Schnitzel Lover

 

[Dr E Brown]

I just relistened to that part several times and it's not really clear to me ..

"would have benefited the Company, by avoiding a large options exercise (I thought that usually benefits the Company?) and sale of shares, required to meet tax obligations, associated with that exercise"

So was the benefit to the Company, from Mr Hernandez not needing to sell converted options, to cover his tax obligations, at a time when this sale, would have put pressure on the share price, when the Company needed to raise funds?

Won't Mr Hernandez, need to do the same now (if that was the issue) at a time when the share price is already depressed?

Only thing different, is that the Company does not now need to raise funds.

If the pressure on the share price at the time was the issue, then the benefit to the Company at that time, might be hard to quantify and could be worth any extra benefit to Mr Hernandez now.

Sean basically read verbatim the BRN notice on this subject from 2022

 

[Xhosa12345]

carn the fukn pies u beauty what a comeback!

As for brn.... the gif above
But we will get there... my timelines are blown out from what i was expecting and hoping

 

[TECH]

Manny Hernandez served as Chairperson as did the previous Chair, including Lou (Chief 3 Hats) each brought their own style and
networks of friends, business associates to the table.

A lot of water has since gone under the bridge, the company addressed a lot of the issues with regards the issuing of shares, salaries,
staff layoffs, rewarding performance that had met the strict standards set by the Board, as soon as Lou departed, Peter stood up as
our original founder and took charge, he did a great job, with the help of highly intelligent, business minded staff he had also helped
to hire. Some of the criticisms I have heard are based on fluff, his work on Akida 2.0 was never put on hold or jeopardized because of the responsibilities he took on as acting CEO, he stood up which was a real sign of strength, worked very long hours because of a combination
of self-discipline and in knowing the job had to be done. I have always backed his determination to "never give up".

We have now the strongest team ever assembled to be working on revolutionary, ground-breaking technology, from my understanding
it's a very tight knit global work force, one that we as shareholders should be proud to be associated with.

Tall Poppy syndrome, a company that dares to be different, or how could a neuroscientist in little old Australia be that innovative, have
such a vision, be so creative, surely Australia doesn't house any geniuses, well we do, just watch this space.

We as a company, that's us and the entire staff, run a tight, no nonsense company, we've tightened our belts a number of years ago,
hired the best staff available and are making forward steps, even into the current headwind/s.

4 weeks till the AGM 7 weeks to the next Quarterly Investors Podcast, plus other exciting presentations along the way, try to just take a
step back, breathe and smell the roses for a change.


Have a good rest of the week, cheers.....Tech

 

[Getupthere]

Remuneration
Sean Hehir currently receives USD450,000 per annum for his position as Chief Executive Officer. The amount stated is per annum comprising salary plus superannuation contributions, short term incentive payments (cash) and medical benefits. Mr Hehir is eligible to receive a Short-Term Incentive (“STI”) of up to 100% of the aforementioned salary annually. The Restricted Stock Units proposed to be issued to Mr Hehir under Resolution 7(a), if passed, are in addition to this sum and have an estimated fair value of A$985,054 (being A$328,351 per annum).