Brn - brainchip holdings

[moka]

Closed today at 68.5c on 4,579,268 turnover. The share price has been volatile lately as the shorters play their games. It hit 88c briefly on Jan 05, 2023, and then dropped back last week with a low of 66c.

10 Jan 2023. BrainChip Holdings Announces new Capital Call Notice under continuing agreement with LDA Capital

https://stocknessmonster.com/announcements/brn.asx-2A1424813/

Company submits notice to sell 30,000,000 shares
The Company is obligated to raise a minimum of $15,000,000 (AUD) during 2023
Available funding under agreement of $27,913,239

The issue price for the capital call shares will be 91.5% of the higher of the average daily VWAP of shares over the pricing period (subject to any applicable adjustments) and the minimum price notified to LDA Capital by the Company.

“The proceeds raised from the capital call will be used to accelerate our innovation of the groundbreaking Akida technology as we extend our industry leadership in Edge AI. In 2023 the company will tape out another chip and release significant enhancements to our IP offering”, said BrainChip CEO Sean Hehir. Mr. Hehir went on to say “Additionally, we will further expand our go-to-market capabilities by hiring sales personnel in key international markets, as well as increase our domestic sales and marketing headcount.”

[moka]

Brainchip partnering with Intel.

Brainchip announced that it has become a member of the Intel Foundry Services (IFS) ecosystem alliance to help advance innovation on Intel's foundry manufacturing platform.

https://finance.yahoo.com/news/brainchip-joins-intel-foundry-services-223000351.html

December 12, 2022

BrainChip is the latest industry-leading IP partner to join the IFS Accelerator - IP Alliance. Partners in this alliance collaborate with IFS to enable designers to access high-quality IPs, supporting their design needs and project schedule, while optimizing for performance, power and area. Building upon Intel's advanced technology, the IP portfolios of IFS Accelerator include all the essential IP blocks needed for modern Systems-On-Chip (SoC), such as standard cell libraries, embedded memories, general purpose I/Os, analog IP and interface IP.

Integrating AI into the SoC delivers efficient compute and the unique learning and performance requirements of Edge AI. BrainChip's Akida^TM, enables low-latency and ultra-low power AI inference and on-chip learning.

[moka]

Smart marketing move by Brainchip, partnering with Universities to introduce students to Brainchip's cutting-edge neuromorphic hardware technology.

BrainChip Adds Rochester Institute of Technology to its University AI Accelerator Program

https://finance.yahoo.com/news/brainchip-adds-rochester-institute-technology-223000698.html

November 23, 2022

Brainchip announced that the Rochester Institute of Technology (RIT) has joined the University AI Accelerator Program to ensure students have the tools and resources needed to encourage development of cutting-edge technologies that will continue to usher in an era of essential AI solutions.

Rochester Institute of Technology (RIT) is a highly accredited technology institute with AI engineering programs that conduct research on fundamental and applied topics in artificial intelligence.

BrainChip's University AI Accelerator Program provides hardware, training and guidance to students at higher education institutions with existing AI engineering programs. Students participating in the program will have access to real-world, event-based technologies offering unparalleled performance and efficiency to advance their learning through graduation and beyond.

RIT joins current participants Arizona State University and Carnegie Mellon University in the first year of the accelerator program.

[nztx]

I once had some of these Braincheck Holdings, but they didn't do much for me ..
How are yours working out - Mr Ant .. any positive results yet ?

[moka]

Quarterly report out today. Closed today at 64c down 1.5c on 12,283,175, $7,854,131, high 67c and low 62.5c. They have been hiring lot of new employees over the past months, so they are expecting growth, but it has not translated yet into revenue.

https://stocknessmonster.com/announcements/brn.asx-2A1427494/

Appendix 4C & Quarterly Activities Report for the Period Ended 31 December 2022

Cash Balance as of 31 December 2022 US$23.1M
Net operating cash outflows of US$1.9M vs.US$3.8M in the prior quarter.
Cash inflows in Q4-22 included receipts from customers of US$1.2M, an increase of US$1M from Q3-22, and $0.67M of R&D Tax Incentive credits from the Australian and French tax authorities.
Cash inflows from financing activities included $0.5M resulting from the exercise of Long-Term Incentive Plan (“LTIP”) stock options.

BrainChip added two North American and one Korean sales executive towards the tail end of the quarter and has launched formal searches for sales talent in Germany and Japan as we aggressively pursue engagements globally. BrainChip also appointed a new Chief Marketing Officer, Mr Nandan Nayampally, to lead our marketing efforts, and appointed Ms Duy-Loan Le as a Non-Executive Director, to further strengthen the Board’s capabilities and connectivity. Both individuals have extensive semiconductor expertise and industry contacts.

https://stocknessmonster.com/announc...asx-2A1427498/
Top 20 Shareholders

[moka]

Brainchip dropped 13.6%, 8c today to close at 51c on 28.9m, with a low of 50c. There was no news to trigger the drop. BRN goes up on no news – went from about 65c to 88c and then back again to the 60s recently on no news, and now down on no news. It dropped 2c yesterday to close at 59c on 10.3m.

It is still heavily shorted, 6.69%. https://www.shortman.com.au/stock?q=BRN
Daily short sells range from about 600k to 2m, and are often about 20% of the turnover, but they are also buying back so 40% of the daily turnover can be short sellers churning the market.

The chart has been in a downtrend for the last year, after spiking to $2.34 on the Mercedes news. So, no surprise to see it drop, but the scale of the drop today was surprising to me. Some people have been saying it will drop to 30c - 50c, but I was expecting a more gradual drop over the next couple of months.

I think this is a tree shake, to shake out the weak holders, and trigger stoplosses. I sold some recently at 65c to have some cash to buy if it dropped to 40c – 50c. I think it is attracting institutional interest now, and institutions like the price to be low when they buy.
https://www.marketindex.com.au/asx/brn

A speeding ticket was issued.
https://stocknessmonster.com/announc...asx-2A1430789/

[moka]

Motley Fool article out yesterday, pushing the bear case.

https://www.fool.com.au/2023/02/14/brainchip-shares-the-bull-and-bear-case/

BrainChip shares: The bull and bear case

Bull case

Another thing that bulls will highlight is Brainchip’s inclusion in the Arm AI partner program. This is an ecosystem of hardware and software specialists enabling developers to deliver the next generation of AI solutions. Think of it as a Bunnings store and developers can browse the shelves and pick out the bits of technology they want for whatever they’re building.

The company also has a strategic partnership with MegaChips, which is a leading provider of chip solutions. It plans to leverage and licence Brainchip’s Akida intellectual property to provide U.S. customers with applications across a wide variety of applications, such as consumer tech, telecom/network, industrial, and automotive.

Bear case for Brainchip shares

Where do I begin? Brainchip shares are not new to the Australian share market. The company has been around a long time and has a history of releasing hugely promising announcements that ultimately go nowhere.

In fact, given that Brainchip’s technology is out there in the world, it begs the question why a company like IBM would not just acquire Brainchip if it felt that its technology was going to change the game.

In FY 2022, IBM spent US$6.6 billion (A$9.5 billion) on research and development activities. It was also sitting on a cash balance of US$8.8 billion (A$12.6 billion) at the end of December. This means it could snap up Brainchip many times over and still have plenty of cash leftover. This could be interpreted as a sign that Akida is not seen as a threat in the industry.

Another key part of the bear case is that despite Brainchip shares crashing over the last 12 months, the company still has a $1 billion market capitalisation. That’s also despite the company generating less cash receipts than some city cafes during the last couple of quarters and management stating that it was experiencing the “greatest amount of sales activity and engagement” in its history. Maybe they should open up a café at Brainchip HQ.

Final word

The odds certainly are stacked again Brainchip and its market capitalisation implies huge future sales growth.

[moka]

Annual Report out Friday

https://stocknessmonster.com/announc...asx-2A1433201/ Annual Report

The Group made a net loss after income tax for the year ended 31 December 2022 of $22,087,670 (2021: $20,981,309).
Revenues for the year ended 31 December 2022 of $5,071,252 increased 219% from $1,588,483 in 2021.
Total operating expenses for the year ended 31 December 2022 of $27,015,834 increased 27% from $21,234,175 incurred in the year ended 31 December 2021.

Antonio J. Viana Chair

“2022 was a year of commercial expansion with new sales leadership and rapidly expanding geographical coverage. Our sales engagements have never been higher than they are today. Clearly, we expect significant growth in engagements from this point forward. To further support the commercial effort, BrainChip has established and refined a critical ecosystem program for the enablement of BrainChip-based designs. As a technology company looking to become a standard in the AI space, broad ecosystem support is critical for our customers, and it remains a huge area of focus and investment.

However, the global shift to AI as a new standard with a focus on in-device, edge computing will bring increased opportunity for BrainChip. We look to leverage upon this as we position AkidaTM to become an integral part of edge AI solutions.”

Sean F Hehir CEO

“On the commercial front, BrainChip has deepened relationships existing customers and grown the pool of prospective customers being evaluated. The semiconductor design and development processes are long, and selection of design components (IP) takes time. The addition of new sales leadership and expansion of worldwide sales and field engineers has catalyzed sales opportunities and technology evaluations.

Also, Renesas, one of our early licensees, has announced that they are taping out a chip that will be available in 2023 for IoT and edge devices.

Ecosystem integration and partnerships are critical to semiconductor technology integration. Partner development and vertical product integration is a fundamental element of the commercialization strategy presented at last year’s Annual General Meeting.
In this year, we have added key partners including Arm, SiFive, Intel Foundries, Edge Impulse, NVISO and Prophesee, making the selection and integration of AkidaTM easier and standardized.”

https://stocknessmonster.com/announc...asx-2A1433200/ Appendix 4G and Corporate Governance Statement
https://stocknessmonster.com/announc...asx-2A1433200/ Appendix 4E

[moka]

Announcement last Monday 6th March. BrainChip Introduces Second-Generation Akida Platform.

The sp was up 8.5c, 16.7% to 59.5c on that Monday on 28m. Short sales that day were 4.87m, 17%. The sp has drifted lower since then and closed today at 50c, down 2.5c on 11m.

Brainchip is the 8th most shorted stock on the ASX with 126,692,571 shares shorted or 7.170%, so I expect the sp to go lower. Last Monday it was 15th most shorted with 118,815,976 or 6.615%.

https://stocknessmonster.com/announcements/brn.asx-2A1435369/

• New generation of Akida allows designers and developers to incorporate features that were not possible before
• Adds capabilities that are critically needed in industrial, automotive, digital health,smart home and smart city applications

Sean Hehir, BrainChip CEO said, “Our customers wanted us to enable expanded predictive intelligence, target tracking, object detection, scene segmentation, and advanced vision capabilities. This new generation of Akida allows designers and developers to do things that were not possible before on an Edge device. By inferring and learning from raw sensor data, we take a substantial step toward a cloudless Edge AI experience. With this launch, we have significantly extended our competitive advantage in neuromorphic AI.”

Mr Hehir added, “The development of the second generation of Akida was strongly influenced by our customers’ feedback and driven by our extensive market engagement.We have recently expanded our sales organisation to become truly global and we are focused on executing more IP licence agreements and generating revenue growth overcoming years.

[moka]

Closed at 40.5c down 1.5c, on 20.5m, high 41.5c, low 35c on Friday, so the trend is still down. 13^th most shorted stock on ASX with 128.7m shorted = 7.23%.

Quarterly report to 31 March out - with disappointing revenue of only $40,000.
Capital call notice to LDA Capital Limited - A$12,232,543 was received from LDA Capital upon the issue of 20,756,540 shares.
The recently ended Quarter amplified the execution of the Company’s commercialisation for our AkidaTM neuromorphic IP by adding critical talent in Japan and Germany.
The Company ended the March 2023 Quarter with US$17.7M in cash compared to US$23.1M in the prior quarter. It should be noted that the A$12.2M cash received from LDA Capital will be reflected in the Appendix 4C for the next quarter.
BrainChip reported net operating cash outflows of US$6.3M vs.US$1.9M in the prior quarter.

https://stocknessmonster.com/announc...asx-2A1446088/
https://stocknessmonster.com/announc...asx-2A1446119/ Top 20 Holdings