BRN Discussion Ongoing

[Bravo]

Hi All , just seeking some clarification regarding the very last paragraph of the proposed issue of securities document
The +103million one
Very Last paragraph of the doc, refers to the holder having an arrangement with the entity, with regards to not selling within a 12 month period.

It appears that the new proposed owners of the 103 mil are in agreement to not on sell said shares for 12 months

Am I understanding this correctly
Probably not !

Asking for a friend, because I may be embarrassed by an informed answer

Thanks in advance

Yes, @Kosikan, "my friend" would also like clarification around that too.

It's pretty interesting that the103 million shares issued means it was just a smidge shy of the 5% ownership in the company which triggers a substantial holding disclosure, unless I'm mistaken.

 

[DingoBorat]

One thing I don't understand, why 9 months? We had before CR 3 quarters without the "new" money left

There always has to be a safe margin left in the kitty.

They won't let it run down to one quarter and then say...

"Quick we need to get some money together now!"

Even the ASX itself, in all their wisdom requires companies to have 2 quarters of funding available, or a clear plan to secure more funding.

I say 9 months (other than it matched the baby analogy) because we are practically guaranteed to not need any new CR type funding until then, unless for a special value adding purpose.

The Company has kept the option with LDA open, to the end of this year, but that would only be used, if very strongly in the Company's favor.

Like we are getting a heap of traction, a very strongly rising share price, large International demand etc .

It would crazy then, not to take advantage of those conditions (I'm talking about a share price moving strongly past $1) to top up the cash reserves a little more, with minimal extra dilution.
(For example, another 30 million AUD for 20 million more shares at $1.50 average)

That's a very real possibility (share price North of $1.50) if we secure a couple of meaty IP deals, before the year is out.

 

[Pom down under]

We ended up green

 

[rgupta]

Really, you’re going to correct me on using “we are”, cmon man, get real. I believe that besides myself, there are many SH who are not very happy atm.
However, if it makes you feel better I will rephrase:
I am not happy with the current situation.

Now, can you explain to me why they decided to do a CR.
More development, that’s why.
Where’s the IP contracts, where’s the revenue.

I’m livid atm and so should all the SH be cause we need them to deliver.

Sean said 2024 was a make or break year, well he better pull a rabbit out the hat cause he ain’t surviving the next AGM

A lot of long term investors are feeling frustrated especially when management cannot win us new contracts.
But to me CR is better than selling on market ( LDA is selling on behalf of brn for last 10 months almost continuously) and getting almost the sp is another plus here.
This cr also minimize impact of negligible sale for last 4c.
But definitely management is playing for a long pause here. To be frank it is better not to expect any results in short term.
Dyor

 

[Thebask27]

There always has to be a safe margin left in the kitty.

They won't let it run down to one quarter and then say...

"Quick we need to get some money together now!"

Even the ASX itself, in all their wisdom requires companies to have 2 quarters of funding available, or a clear plan to secure more funding.

I say 9 months (other than it matched the baby analogy) because we are practically guaranteed to not need any new CR type funding until then, unless for a special value adding purpose.

The Company has kept the option with LDA open, to the end of this year, but that would only be used, if very strongly in the Company's favor.

Like we are getting a heap of traction, a very strongly rising share price, large International demand etc .

It would crazy then, not to take advantage of those conditions (I'm talking about a share price moving strongly past $1) to top up the cash reserves a little more, with minimal extra dilution.
(For example, another 30 million AUD for 20 million more shares at $1.50 average)

That's a very real possibility (share price North of $1.50) if we secure a couple of meaty IP deals, before the year is out.

Thanx DB, understood

 

[manny100]

Well my theory about the raise ended up with egg on my face. Talking about eggs Sean has thrown all his eggs in the ' next 12 months basket'.
The CR should provide enough cash to throw the kitchen sink at marketing and AKIDA/TENNS development for some time. BRN has withdrawn from the LDA agreement but retained the right to draw on entitlements until 31/12/24. I think that is $A12mill from memory.
So pretty well cashed up until the next AGM.
I think we are at the 'all or nothing' stage. I think Sean is probably thinking the same thing but attacking it with confidence.
I keep coming back to:
AI at the Edge set for explosive growth,
AKIDA's 1st mover advantage,
AKIDA'S superior, measurable comparative performance,
GEN2/TENNS game changing status.
Portfolio value

 

[Pom down under]

How do I get hold of some of these cheap shares going?

 

[FJ-215]

A lot of long term investors are feeling frustrated especially when management cannot win us new contracts.
But to me CR is better than selling on market ( LDA is selling on behalf of brn for last 10 months almost continuously) and getting almost the sp is another plus here.
This cr also minimize impact of negligible sale for last 4c.
But definitely management is playing for a long pause here. To be frank it is better not to expect any results in short term.
Dyor

Hi rgupta,

LDA raised at an average price of 27 cents on the last call, with almost no positive news flow out of BRN via the ASX announcements.
Sean & Team managed 19.3 cents.
I'm not calling that a win.

 

[MadMayHam | 合氣道]

My 2 cents, I value 4 things positive (although for my taste one/some deal announcement(s) need to follow this year):

1. André van Schaik has been added to the Scientific Advisory Board.
There has been an interview/podcast with him at eetimes/brains & machines (https://www.eetimes.com/podcasts/andre-van-schaik-discusses-new-neuromorphic-simulator/) where he states:



2. So, although I don't know how our (current "hardware") IP might be of use inside of a FPGA, I see it as a positive we are getting closer not only to sensors but also these type of semiconductors. In combination with André van Schaik's field of research, to me that sounds like Brainchip is trying to evaluate the usage of Akida also at the opposite end of the spectrum (closer to servers/cloud/HPC). Additionally, some of the most important vendors of FPGAs are Intel, AMD. Can't hurt getting a bit more active in this area, especially as industry trends besides GPUs for HPC, ASICs for specific tasks (at the edge) seems to be trying a 3rd direction by keeping the hardware as flexible as possible for all the use cases in between while the field of ML/AI is progressing so fast and changing constantly.

3. "Development of an Akida 2.0 derivative to support LLM (Large Language Models) on edge devices"
Good that Dr. Eshraghian ("his lab developed [...] SpikeGPT") has also been added to our Scientific Advisory Board.

4. Funding via LDA capital probably not needed anymore, at least for this year. Could help the stock price recover a bit.

Brainchip, please let me know when you finally start considering chiplets .

FPGAs are chips whose logic you can program to perform in a certain manner. Usually used if there's a custom application that you want and don't have the scale to etch a batch of silicon, or if you are testing new chip design and want to see if it works before ordering your wafers.

What that quote seems to state, is that Andre hoped to be involved in a company with the IP to build neural processors in FPGA, which can be tailored for different applications, but BRN is one step ahead of that with neutral processors that can run neural models more efficiently than traditional hardware.

 

[IloveLamp]

Plans unveiled for stronger European Space Agency presence in UK and space skills training

A plan to build on the success of the European Centre for Space Applications and Telecommunications (ECSAT), which employs more than 100 people in Harwell, has been launched today by the UK and European space agencies.

www.gov.uk

This week, the UK Space Agency and European Space Agency - ESA unveiled plans to build upon the success of the European Centre for Space Applications and Telecommunications (ECSAT) on Harwell Science… | UK Space Agency

This week, the UK Space Agency and European Space Agency - ESA unveiled plans to build upon the success of the European Centre for Space Applications and Telecommunications (ECSAT) on Harwell Science and Innovation Campus, which includes strengthening work on the centre’s 5G/6G hub, and further...

www.linkedin.com

 

[Kachoo]

Hi rgupta,

LDA raised at an average price of 27 cents on the last call, with almost no positive news flow out of BRN via the ASX announcements.
Sean & Team managed 19.3 cents.
I'm not calling that a win.

It's not a win but it gets them out of the LDA. If they would have raised that Money through LDA the shortsnwould have hit hard like the have been dropping the SP causing LDA to sell all the shares to them at a lower price.

Now we take 113 million shares off the table for atleast a year or longer if the Institution will hold longer.

The 22 million they put in they are not expecting 25 million they are likely expecting much more its a risk reward play when it's that kind of capital.

This is more signifigant then you think even look at the trading before the SP broke the negative on these down days you see a crap load of shares sell at that .25 cent range which we can't execute at after it took off there was litterly non.

When the algorithms take hold for the up movement shorts will have to cover.

I'm speculating that the recent increase and cover was dependant on the next CR in a way

Let's see what happens but my thought are we will drift back to the 30s its kinda a base line where the company sits usually.

Crap we did not have any news yet on deals but this could happen soon or later. It's but as for the SP I think the games may have subsided at this level as its kinda set a floor price IMO. Who knows what game will be played still but really most of the downnsales have been short sales over the last month.

 

[Meatloaf]

A lot of long term investors are feeling frustrated especially when management cannot win us new contracts.
But to me CR is better than selling on market ( LDA is selling on behalf of brn for last 10 months almost continuously) and getting almost the sp is another plus here.
This cr also minimize impact of negligible sale for last 4c.
But definitely management is playing for a long pause here. To be frank it is better not to expect any results in short term.
Dyor

Hi rgupta,

LDA raised at an average price of 27 cents on the last call, with almost no positive news flow out of BRN via the ASX announcements.
Sean & Team managed 19.3 cents.
I'm not calling that a win.

Look, today I was hoping that the CR was going to be followed by a positive announcement such as: an expansion or allowing an investor to purchase shares which could lead to future revenue.

The fact that Brn were raising money through LDA, prior, gave no reason to believe that this was just a standard CR.

When the TH was announced they stated:

Reason for the trading halt – the trading halt is requested to allow the capital raise to take
place in an orderly manner.

I was very disappointed when the truth was that Brn are not anywhere near what I was hoping for.

Akida 2 was introduced in 2023 and so far not one positive announcement. Renesas nearly 4 years ago, Mega Chips nearly 3 years ago.

How many engineers are employed at Brn, someone mentioned 65 the other day (I’m not sure if that is correct). But let’s say even 30 and we have revenue of 48k. Crikey. Surely, as a SH you have to ask yourself: what the bloody hell is going on?

To be honest, I wasn’t expecting 5 million revenue but I was expecting progress.

The idiots on HC must be cracking themselves now. MF is only too happy to write more damming articles. But you know what, Brn management make it so easy for them.

 

[manny100]

It's not a win but it gets them out of the LDA. If they would have raised that Money through LDA the shortsnwould have hit hard like the have been dropping the SP causing LDA to sell all the shares to them at a lower price.

Now we take 113 million shares off the table for atleast a year or longer if the Institution will hold longer.

The 22 million they put in they are not expecting 25 million they are likely expecting much more its a risk reward play when it's that kind of capital.

This is more signifigant then you think even look at the trading before the SP broke the negative on these down days you see a crap load of shares sell at that .25 cent range which we can't execute at after it took off there was litterly non.

When the algorithms take hold for the up movement shorts will have to cover.

I'm speculating that the recent increase and cover was dependant on the next CR in a way

Let's see what happens but my thought are we will drift back to the 30s its kinda a base line where the company sits usually.

Crap we did not have any news yet on deals but this could happen soon or later. It's but as for the SP I think the games may have subsided at this level as its kinda set a floor price IMO. Who knows what game will be played still but really most of the downnsales have been short sales over the last month.

Spot on, the shorts will not like this at all. LDA sells adding selling pressure to the stock. This selling pressure is taken away as the Institutions are likely to hold, maybe even accumulate more if the marketing and development go well.
Keeping the discount to a minimum will also be despised by the shorts who would have been hoping for an issue price 0f 15 or 16 cents.
Shorts as they close will add a little buying pressure.
LDA were effectively keeping the SP down.

 

[FJ-215]

It's not a win but it gets them out of the LDA. If they would have raised that Money through LDA the shortsnwould have hit hard like the have been dropping the SP causing LDA to sell all the shares to them at a lower price.

Now we take 113 million shares off the table for atleast a year or longer if the Institution will hold longer.

The 22 million they put in they are not expecting 25 million they are likely expecting much more its a risk reward play when it's that kind of capital.

This is more signifigant then you think even look at the trading before the SP broke the negative on these down days you see a crap load of shares sell at that .25 cent range which we can't execute at after it took off there was litterly non.

When the algorithms take hold for the up movement shorts will have to cover.

I'm speculating that the recent increase and cover was dependant on the next CR in a way

Let's see what happens but my thought are we will drift back to the 30s its kinda a base line where the company sits usually.

Crap we did not have any news yet on deals but this could happen soon or later. It's but as for the SP I think the games may have subsided at this level as its kinda set a floor price IMO. Who knows what game will be played still but really most of the downnsales have been short sales over the last month.

We're not taking 113M shares off the table, they are added to SOI. Does the promise not to sell for 12 months also include not lending the shares to shorters? Institutional investors are only interested in making money and have no qualms whether that money comes from being long or short.

Insto's are use to getting big discounts on shares for CRs not to mention the money they make on fees. I can see how they would hate the LDA model as it cuts them out of the CR market and forces them to buy at market prices. I would not be surprised if management has come under pressure to abandon LDA. Could explain why calls were extended to 3 months. Less volitility in the SP.

Its done now and I suspect there may be radio silence from BRN for a while. If significant news drops in the next month or so this deal will look and smell terrible.

 

[Food4 thought]

I still don't understand why no one has come out and backed Brainchip and purchased the IP
does anyone understand it ?

what's our problem as a business?
or do all the companies that might be interested get the same treatment as the share holders get.? left in the dark
we will get back to you when we are ready....
even the little box sold out before it got going ( that is if there were even any for sale.

yes I feel raw and nervous and feel that we have be led on by a smoke and mirrors salesman.. snake oil for anyone?

 

[Kachoo]

We're not taking 113M shares off the table, they are added to SOI. Does the promise not to sell for 12 months also include not lending the shares to shorters? Institutional investors are only interested in making money and have no qualms whether that money comes from being long or short.

Insto's are use to getting big discounts on shares for CRs not to mention the money they make on fees. I can see how they would hate the LDA model as it cuts them out of the CR market and forces them to buy at market prices. I would not be surprised if management has come under pressure to abandon LDA. Could explain why calls were extended to 3 months. Less volitility in the SP.

Its done now and I suspect there may be radio silence from BRN for a while. If significant news drops in the next month or so this deal will look and smell terrible.

The only part I think your missing is if the short seller sells the shares and they are bought buy a holder what mecanisimndo they have to buy back if there was nobody willing to sell it was only them they would need to pay more.

If they new a CR was coming like the lda then they would know that they could cover. As of now there are not many shares for sale any more at these prices IMO maybe in a year if they still have no deals but at this point we should be more positive.

 

[Fullmoonfever]

Be interesting to see if these dogs are still short. Not massive in the scheme of things but anyway.

This filing was end June for end April data.

SEC.gov | EDGAR Full Text Search

Picked up from Fintel.

https://fintel.io/sosh/au/brn

By my calcs (could be wrong) about AUD$556k at ~ 0.285 after quick conversion at their rate listed. If get a move up to high 20's then I'd expect they'd maybe looking to cover unless of course already done since April.

Given the ~ 0.28 I'd suspect bought in around 29/4 or 30/4 as prior to, we were in the 30s.

 

[Guzzi62]

I still don't understand why no one has come out and backed Brainchip and purchased the IP
does anyone understand it ?

what's our problem as a business?
or do all the companies that might be interested get the same treatment as the share holders get.? left in the dark
we will get back to you when we are ready....
even the little box sold out before it got going ( that is if there were even any for sale.

yes I feel raw and nervous and feel that we have be led on by a smoke and mirrors salesman.. snake oil for anyone?

Just as frustrated as you.

It's my understanding they are doing a lot of testing before committing to buy an IP and if they have a good working product already, they want it to run its lifecycle out in order to maximize profit and perhaps using Akida in the next version.
Some applications don't need Akida to work well but are doing fine with older technology.

The smart box was never targeted as a money earner but more "getting the word out" application and maybe smaller companies utilities & advanced cellar hobbyists.

Their business model as an IP provider has so far not paid off, what happened to the IP deal that was done Dec 2020 with Renesas??
I am surprised nothing have come out of them so far. I can't even find those 2 deals on BRN webpages?

I am giving them until next AGM to come up with an IP deal or more, both Antonio and Sean sounded very positive and talked about C-suite talks. If no deals they have shafted the shareholders big time and their business model has failed.

If IP is not working, they must start to tap out chips via a chip manufacturer and BRN pays for that and sell them on. That will give us instant profit but way higher operating costs, so the profit will not be as good as a IP provider only company.

All above is only my opinion, I am no expert.

Keeping my shares, still believe in the company.

See this article from CNN where they explain about aging systems in the airline industry sometimes 30 years old, it's just mind-boggling.

Aging, outdated technology leaves air travel at risk of meltdown​

https://edition.cnn.com/2023/01/13/business/airline-meltdowns/index.html

10 Examples of Vintage Computing Still in Wide Use Today

When we think of modern computing, we inevitably think of how fast technology moves these days. It seems we can barely buy a new laptop or smartphone and

listverse.com

 

[Newk R]

I still don't understand why no one has come out and backed Brainchip and purchased the IP
does anyone understand it ?

what's our problem as a business?
or do all the companies that might be interested get the same treatment as the share holders get.? left in the dark
we will get back to you when we are ready....
even the little box sold out before it got going ( that is if there were even any for sale.

yes I feel raw and nervous and feel that we have be led on by a smoke and mirrors salesman.. snake oil for anyone?

Well, if you consider the CD was 1st invented in 1979, but didn't overtake vinyl records till the late 80s, it may give some indication. Better technology is not always embraced early. Just a thought, that's all.

 

[MadMayHam | 合氣道]

At this stage, I don't understand why people are still blaming the shorters for the depressed share price... Despite having a commercially available product since 1Q2022, the company has had no sales for the the better part of the last 8 or so quarters, and barely (if any) NRE income (which usually would be an indication of future sales), no known contracts approaching on the horizon, yet bleeding $7m each quarter on average... the last commercial agreement involving any significant payments happened under LDN/PVDM's watch. Our last 4C revenues were $48,000. That's enough to cover only 1.25% of expenditure for the quarter, and we're not even talking about profit here. And what's worse is that the revenue is half of the previous quarter 4C's revenue of ($90k), which covered only 2.1% of expenditure. Even without shorts where do you think the price would be?

Now if I'm a fisherman and every night I catch 5 fish, which isn't enough to feed the kids, I don't keep doing the same thing. I either get a bigger net or change the fishing spot and timing.

Sean has done what he can, we need another CEO who can hit the ball out of the park, not creep a wicket every few bats. He told us to judge his performance by the financials, so that's what we should do. I'd be happy to be proven wrong in the next quarter, but we can't afford to wait till the end of his 5-year plan to see that it has failed, then spend another year looking for a new CEO and giving the next guy another half a decade of run time. We don't want to be Betamax. Someone has to bear the responsibility of the share price dropping more than 50% over the time period, and it sure isn't the shorter.