BRN Discussion Ongoing

[rgupta]

The AGM was a rollercoaster ride.
Antonio was brilliant. A master of delivery. He was articulate, believable and compelling. He knew his stuff.
Sean, at first glance was disinterested or just unprepared (seemingly) He spoke by reading and struggling to keep his monologue flowing. This was the complete opposite to his 2022 AGM this time last year. I won't comment on the hog feast at the trough other than to say much of it is partially dependant on metrics being achieved.

I had a chat with Antonio afterwards and did my best to get across the incredibly frustrating lack of announcements over the last 12 months. I went on (a bit too much in retrospect) that the company could well use many more announcements that are non price sensitive. I suggested for example that an announcement that ARM are releasing their Cortex M85 chip that Akida may be added in a number of situations like blah...blah. That would be a painless non price sensitive statement that would be distributed to a much broader set of market participants.

I also had a brief chat with PVDM. What a gentleman. Also had the privilage of a good chat with Duy-Loan Le. She is so engaging, interested in what my wife and I had to say.

I caught up with some of the TSE crew and it was fun to say g'day to them all.

To sum up, a hard day, but a day that demonstrated that we are a real company with real disruptive tech that is not an easy sell. Not because of it's 'science fiction' status but clients and potential clients have current tech that is being distributed now and seemingly keeping consumers happy. To change the delivery environment takes time, persuasion and forward thinking and understanding just what is being offered to potential clients. A hard task, but I sincerely believe the current team is the A team.

To sum up, a hard day, but a day that demonstrated that we are a real company with real disruptive tech that is not an easy sell. Not because of it's 'science fiction' status but clients and potential clients have current tech that is being distributed now and seemingly keeping consumers happy. To change the delivery environment takes time, persuasion and forward thinking and understanding just what is being offered to potential clients
To me that is a red flag. May be we had chosen wrong people to engage with. Sometimes we want to bring best person to our side which means we are playing to their potential than our potential.
I did not hear any news about renasas taping out or megachips which is strange. I do not know why management goes so defensive. That is where I feel partner ecosystem comes so handy. Big or small everyone wants to shine. To me a list of 100 partners on our side is better than companies like apple, microsoft, qualcomm on our side because when the technology reaches consumers that will become need for these big businesses. So to me the company had really moved in the right direction where we are partnering with small companies who listen to us than big company who want us to listen.
But really not happy with defensive approach of management here.

 

[Deleted member 118]

Apart from the very seldom positive post about the AGM, the majority here and you know where are very worrying read for the company and I’d be extremely alarmed to be reading them as an employee.

 

[alwaysgreen]

I am a glass half full character and appreciated the honesty today from management as it allows everyone to be able to make more informed decisions around their investment now.

Now for a little glass half empty…

The hard thing for me now is …I am really not sure how long I need to be invested in Brainchip to achieve a personal wealth goals. It was always going to be a guess but by the sounds of things 12 months ago I did think my goal may occur by around 2024/2025 based on royalty ramp up from Akida 1.0. Now I really do have no idea when things will ramp up to that level as Akida 1.0 is now not going to be mass adopted in commercial products in the very near future. Mass - I mean millions of instances. I usually know that the first cut of a product (Akida 1.0) was not going to be the magic pill….however the management sort of made us feel like it was going to be the magic pill and everyone wanted it and decent revenue was coming.

I know management have a 5 year plan but it is unquantifiable in regards to knowing when and how much revenue will flow and from which product. This continues to be a problem.

After the 5 year plan executes (4 years from now) are we then at a stage where that is just the start of the real mass commercial products containing Akida 2.0 and our real mass royalties flow? That is 2027 - larger revenue then starting to build into 2028/29. Ooof that is quite a commitment and where does the SP swing to in the interim .20c to .50c range until then? Ooof.

We don’t know who is developing what, when it will be ready and what royalty it pays. There is some taping out being done by some partners for sure but we don’t know that scale or detail of that and also it’s Akida 1.0 the company is saying it’s a narrow market…ie. Smaller revenue.

I have never been interested in singular IP licenses sales for BRN as that is small fry to me in the grand scheme of things and that will not be the bulk revenue needed for this company nor sustain the share price over 20 cents realistically. Mass Royalties is where we need to be at to move the SP, or the ability to quantify it.

I do have a pretty decent annoyance that when the price was over $1+ 12 months ago, the company had made comments that the sales inquiries were basically insatiable and the CEO in turn indicated revenue would be starting to move up late last year. He had also made a comment last year such as - He saw the current market cap (when around 2 to 3 Billion) to be low and saw the company being worth much much more than that with the recent interest. That is not word for word but that is pretty close to the thought of the comment. At that point I was thinking wow and was happy to not sell any shares at $1+ on the hyped up Mercedes news even though I could see BRN was overvalued at $1.30+ due to no revenue at that point …but why would I sell if revenue was that close and CEO indicating market cap was very low compared to where it should be as he as the CEO can see what was happening internally. That right there was very misleading and had hoped that the management would not make insinuations like that when they were not really not reality. Lesson learned on both sides of the fence there I would say.

Ok glass half empty done…looking back at the glass half full again and still holding for now…even though todays reality check was quite painful.

Great post and exactly where my head is at currently.

 

[Deleted member 118]

I am a glass half full character and appreciated the honesty today from management as it allows everyone to be able to make more informed decisions around their investment now.

Now for a little glass half empty…

The hard thing for me now is …I am really not sure how long I need to be invested in Brainchip to achieve a personal wealth goal. It was always going to be a guess but by the sounds of things 12 months ago I did think my goal may occur by around 2024/2025 based on royalty ramp up from Akida 1.0. Now I really do have no idea when things will ramp up to that level as Akida 1.0 is now not going to be mass adopted in commercial products in the very near future. Mass - I mean millions of instances. I usually know that the first cut of a product (Akida 1.0) was not going to be the magic pill….however the management sort of made us feel like it was going to be the magic pill and everyone wanted it and decent revenue was coming.

I know management have a 5 year plan but it is unquantifiable in regards to knowing when and how much revenue will flow and from which product. This continues to be a problem.

After the 5 year plan executes (4 years from now) are we then at a stage where that is just the start of the real mass commercial products containing Akida 2.0 and our real mass royalties flow? That is 2027 - larger revenue then starting to build into 2028/29. Ooof that is quite a commitment and where does the SP swing to in the interim .20c to .50c range until then? Ooof.

We don’t know who is developing what, when it will be ready and what royalty it pays. There is some taping out being done by some partners for sure but we don’t know that scale or detail of that and also it’s Akida 1.0 the company is saying it’s a narrow market…ie. Smaller revenue.

I have never been interested in singular IP licenses sales for BRN as that is small fry to me in the grand scheme of things and that will not be the bulk revenue needed for this company nor sustain the share price over 20 cents realistically. Mass Royalties is where we need to be at to move the SP, or the ability to quantify it.

I do have a pretty decent annoyance that when the price was over $1+ 12 months ago, the company had made comments that the sales inquiries were basically insatiable and the CEO in turn indicated revenue would be starting to move up late last year. He had also made a comment last year such as - He saw the current market cap (when around 2 to 3 Billion) to be low and saw the company being worth much much more than that with the recent interest. That is not word for word but that is pretty close to the thought of the comment. At that point I was thinking wow and was happy to not sell any shares at $1+ on the hyped up Mercedes news even though I could see BRN was overvalued at $1.30+ due to no revenue at that point …but why would I sell if revenue was that close and CEO indicating market cap was very low compared to where it should be as he as the CEO can see what was happening internally. That right there was very misleading and had hoped that the management would not make insinuations like that when they were not really not reality. Lesson learned on both sides of the fence there I would say.

Ok glass half empty done…looking back at the glass half full again and still holding for now…even though todays reality check was quite painful.

 

[perceptron]

Akida500 please. : )

 

[Deleted member 118]

All we need now is FF to come back and put his lovely sugar coated posts to make everyone feel happy and secure lol and his probably reading this as well. Come out come out where ever you are? As I managed to get you to bite back the last time.

 

[Cgc516]

Did anyone see FF there today?

 

[Deleted member 118]

Did anyone see FF there today?

Yes he was ironing the table cloth.

 

[Foxdog]

Did anyone see FF there today?

I suspect he's busy building the class action case against Sean and the company . I do recall him saying that there was no way a CEO would say what Sean said at the last AGM if it couldn't be substantiated. I also suspect plenty of long term holders have cashed in their healthy profits and FF'd off.

 

[Cgc516]

Yes he was ironing the table cloth.

For this tough moment, we definitely need him more than ever!

 

[Jchandel]

I could be wrong but I think he had to read from the document so he doesn’t stray from the script as that is the same as the ASX AGM document; CEO’s address.

I would like him to be more charismatic and a better public speaker however that is one job on one day a year. It’s the other 364 days I’m concerned with. Maybe he’s excellent in small groups building a rapport with customers rather than public speaking; I know I don’t enjoy it. He was hired with a lengthy sales experience history of building ecosystems and a plan approved by the board so suggesting he has some skills.

Problems were identified and solutions given. It’s better than pretending everything’s rosy.

I thought the remuneration was explained quite well. The packages were set for a 3 year period based on KPI’s including the SP. The amounts were the total they could get if they achieved %150 over their targets. They get less if they achieve less. Sounds fair to me.

Ken and Antonio were up front about the Manny situation. Antonio agreed it was too generous and has fixed the system to reflect the market and company size; but that was historical. However if we want good people in a competitive market we have to pay them; no arguement from me. Ken was honest stating this was a quick, clean, friendly way to avoid litigation. Essentially, you can look backwards, pointing the finger with he said, she said or forwards and remove the distraction to focus on commercialisation. Only guessing here but if Manny argued that if he had his shares when the price was $2+ they would have been worth a lot more which is what I think Ken wanted to say but couldn’t. However the mistake happened it’s now dealt with but if Manny didn’t have a case to answer then I’m sure it wouldn’t have been as generous an offer. I don’t know anyone who has never made a mistake before; glad we’ve moved on from it.

Renesas is still putting out a chip with us. MB still building cars. NASA making rockets. GF making AKD1500. TEKSUN doing presentations with our products. ARM, INTEL, SiFive still making systems. Gen 2 being made for better commercialisation success. Gen 3 in the pipeline.

Potentially a longer wait but it is what it is!

A disappointing day, however I would rather focus on the last couple of lines from you and keep holding my shares:
Renesas is still putting out a chip with us. MB still building cars. NASA making rockets. GF making AKD1500. TEKSUN doing presentations with our products. ARM, INTEL, SiFive still making systems. Gen 2 being made for better commercialisation success. Gen 3 in the pipeline.

Potentially a longer wait but it is what it is!

 

[Quatrojos]

I suspect he's busy building the class action case against Sean and the company . I do recall him saying that there was no way a CEO would say what Sean said at the last AGM if it couldn't be substantiated. I also suspect plenty of long term holders have cashed in their healthy profits and FF'd off.

I've always thought FF was a component of BRN's marketing strategy with, of course, his own aligned agenda.

In addition, I've always thought that TSEx was also a component of BRN's strategy. Bear (I wish it was bull) with me...

https://announcements.asx.com.au/asxpdf/20220114/pdf/454zp1bqz2kx0j.pdf

BRN announced their capital call on 14/01/22.

TSEx, which is solely a BRN forum (can anyone find much discussion on other stocks?) was given birth on 03/02/22.

The company knew that relatively few holders held a lot of shares. The company had interest in maintaining the share price whilst the LDA call was open.

Select posters were repeatedly vocal re the evils of HC. Such posters were the same ones to extol the virtues of this 'safe space'. The same posters exhibited an intimacy which I judged to be too close for an anonymous forum. Of course, these posters might've/would've met at previous AGMs which may explain their intimacy. Otherwise, there seemed to be more than a superficial level of coordination around that time.

I'm a fan of HC as an unfiltered yardstick for sentiment. I also fear safe spaces for their obvious bias and subtle pathology.

What's the word for a phobia of safe spaces?

By the way, I dig TSEx because of the familiar handles and access to these posters' research. These days, I treat TSEx as Yin and HC as Yang.

 

[alwaysgreen]

For this tough moment, we definitely need him more than ever!

Fact Finder can tell you all about the partnerships and that we have a science fiction chip all he wants if that makes you feel better but the only thing that will cheer me up is if they can sell the damn thing!!

 

[nannapat]

I fully trust all BRN staff that attended the AGM today in Sydney



1. FLEW ECONOMY. (hand was put into their own pocket to upgrade to business class or 1st class flights)

2. STAYING IN ACCOMMODATION NO MORE THAN $250.00 PER NIGHT

3. ADHERING TO ATO RULES FOR MEAL ALLOWANCE PER PERSON PER DAY INCLUDING LIQUIDS ($80.00 to $100.00 per day)

4. SHARING CABS

5. COMPANY DINNER / GET TOGETHER NO MORE THAN $80.00 PER HEAD INCLUDING ALCOHOL


I‘m pleased about the result today 1st strike, thank you to all that voted @BaconLover , you held your head high and showed courage against backlash. I didn’t vote, moving forward I will be voting as you have all proven today, together voices can be heard and a difference made to arrogant/ selfish outcomes including attitudes.


Nan xxx

 

[Easytiger]

Agreed. There was a moment when a question was posed to Sean about why there was no ASX disclosure about Akida 1000 being a failure as this information would have a material impact on the share price.

Sean was absolutely lost at sea and looked to Antonio for defense. Antonio deflected it back and told Sean to answer. That is part of the CEOs job - to answer the tough questions when the times are tough. While I don't agree that Akida 1000 was a failure, the way Sean handled the question was extremely amateur and doesn't strike confidence in his capabilities as a CEO (he looked to Antonio to cover for him a number of times throughout the AGM).

Antonio was able to put things in an easier to digest perspective such as the timeframe of a product cycle in this industry as well as why they won't make announcements via ASX unless it is pretty much a guarantee. He handled questions much more confidently and clearly displays a lot more empathy towards the current position of Brainchip (whereas Sean seems to lack this empathy and only focuses on a potential future).

Given Sean's inexperience as a CEO, I'm not suprised at the amaeteurish CEO display seen at this year's AGM. We've only seen Sean talk prior to this in low pressure situations - last years AGM was much more pleasant for him. I think this AGM may light a much needed fire under his ass, hopefully take heed of the shareholder sentiment and realise that a lot of shareholders' patience is running thin. Hopefully he can rein it in and deliver some deals before 2024 AGM.

Is it fair to say the AGM presentation was a fkn train smash and this was reflected in the share price?

 

[DK6161]

Based on what happened today, I wouldn't be surprised if key personnel might start thinking about stepping down. That would be a red flag for me as it doesn't show full commitment and belief on the company and technology.
Fingers crossed it's all positive moving forward.

 

[DK6161]

I fully trust all BRN staff that attended the AGM today in Sydney



1. FLEW ECONOMY. (hand was put into their own pocket to upgrade to business class or 1st class flights)

2. STAYING IN ACCOMMODATION NO MORE THAN $250.00 PER NIGHT

3. ADHERING TO ATO RULES FOR MEAL ALLOWANCE PER PERSON PER DAY INCLUDING LIQUIDS ($80.00 to $100.00 per day)

4. SHARING CABS

5. COMPANY DINNER / GET TOGETHER NO MORE THAN $80.00 PER HEAD INCLUDING ALCOHOL


I‘m pleased about the result today 1st strike, thank you to all that voted @BaconLover , you held your head high and showed courage against backlash. I didn’t vote, moving forward I will be voting as you have all proven today, together voices can be heard and a difference made to arrogant/ selfish outcomes including attitudes.


Nan xxx

Sorry, and where did you get this info from?

 

[zeeb0t]

I've always thought FF was a component of BRN's marketing strategy with, of course, his own aligned agenda.

In addition, I've always thought that TSEx was also a component of BRN's strategy. Bear (I wish it was bull) with me...

https://announcements.asx.com.au/asxpdf/20220114/pdf/454zp1bqz2kx0j.pdf

BRN announced their capital call on 14/01/22.

TSEx, which is solely a BRN forum (can anyone find much discussion on other stocks?) was given birth on 03/02/22.

The company knew that relatively few holders held a lot of shares. The company had interest in maintaining the share price whilst the LDA call was open.

Select posters were repeatedly vocal re the evils of HC. Such posters were the same ones to extol the virtues of this 'safe space'. The same posters exhibited an intimacy which I judged to be too close for an anonymous forum. Of course, these posters might've/would've met at previous AGMs which may explain their intimacy. Otherwise, there seemed to be more than a superficial level of coordination around that time.

I'm a fan of HC as an unfiltered yardstick for sentiment. I also fear safe spaces for their obvious bias and subtle pathology.

What's the word for a phobia of safe spaces?

By the way, I dig TSEx because of the familiar handles and access to these posters' research. These days, I treat TSEx as Yin and HC as Yang.

That’s quite an interesting take but I’ll have you know TSE is completely independent. I know we love a dot join here, but come on…

I started this forum because I was sick of the status quo over there. Since then, in order to remain impartial, I refrain from commenting on the stocks (as is the ASIC guideline) and that was my own personal loss I did not envision. It’s no longer “fun” for me in any way, but then to hear this ridiculousness is just icing on the cake.

 

[robsmark]

As fast as I am to call out the unsubstantiated positive claims in this forum, I feel I have to call out the unsubstantiated negative ones - and there are more than a few being posted in here tonight.

Let’s stick to the facts.

 

[DollazAndSense]

Is it fair to say the AGM presentation was a fkn train smash and this was reflected in the share price?

Well it wasn’t anything unexpected. Most people here knew there was not going to be anything of material value that would be announced as there was no ASX announcement.

Antonio did a great job at giving further explanation on a few key issues ie not announcing partnerships via ASX, clarifying why the development cycle is so long for those who aren’t in the know and a few other minor things I can’t recall off the top of my head.

Sean read his presentation and stumbled along it quite a bit. Did not perform well under the pressure of the Q & A in my opinion. Not that it truly matters, as long as he can perform when it comes to closing deals in the next few quarters, his public speaking skills won’t matter in the slightest.

Not a train wreck, just a summary of a pretty poor twelve months. Some shareholders asked a couple of good questions but didn’t amount to much in terms of answers. Some shareholders also rightly expressed frustration in a respectable way and hopefully management use it as inspiration and motivation to at least communicate better.