Brn - brainchip holdings

[moka]

Episode 1 — BrainChip Quarterly Investor Podcast Q1 2023. BrainChip’s CEO Sean Hehir and Director of Global Investor Relations Tony Dawe.

https://www.youtube.com/watch?v=uURpjIhc1l4

1:16 Aikido 1.0 was and is a world-class leader in terms of its technology leadership however it was very narrowly focused and the focus was the places where good enough solutions exist in the market so to displace them was a significant lift, so we beat them on performance we beat them on power we beat them on e-supportability but existing solutions were there in place.

1:43 what Akida 2.0 does for us is a couple really important things it allows us to address a much larger set of use cases in the market so it's easier to use, bigger use cases, bigger models in places where the competition is not so well entrenched.

3:39 Forbes business Insight recently talked about a 1.2 trillion dollar AIoT Revenue by the year 2030. We're going to address that market

5:01 we expect Akida 2.0 to be fully commercially available by the end of the year

11:02 Can you provide some guidance on when they can expect to see brain chip generating revenues - it's very hard to say when exactly a customer will make a decision… so really I can't give you that forecast

14:37 economic headwinds - there's no question this is a tough economic environment in Tech what we have seen is not a lot of cancellations but more things taking a little bit longer I can give one example where that I know where they have put a project on hold where we actually won the engagement but in the end the board of that company decided not to spend the money to build a chip.

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AGM on Tuesday 23^rd May. The good, the bad and the ugly. Making progress with commercialisation but generating even enough revenue to cover costs is still to come.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02668656-2A1450681?access_token=83ff96335c2d45a094df02a206a 39ff4

Chairman’s address - the past 12-15 months, the post Covid-era if you will allow me to call it, has been the most challenging for tech in general. More challenging than the dragging years of the mid 90s, the dot-com bust of 2001, and the slowdown of 2007/2008.
Let me be clear, nobody at BrainChip is happy or content with our current position.
We haven’t hit any significant stride yet with respect to revenue. No one is satisfied, and no one should be. However, there is plenty to be positive and optimistic about.
BrainChip has done more in the past 12 months to strengthen its development, market position and talent than it has since its inception.

The trick for many companies comes when the move from technology to product takes place. In the past, BrainChip frankly hasn’t gotten this right. We haven’t had a product that can see its way into end production systems. Additionally, we haven’t had a product that forces the market to move toward us.

The reality is that the market is still in the discovery and embryonic stage with respect to edge-based AI. Unfortunately, Brainchip historically hasn’t executed with respect to an appropriate product mix to accelerate the market.
.. there is work that still needs to be done to make BrainChip a success. I am not ignorant tothe shareholders that have been on board for a long time.
…the trajectory we are currently on is the most promising since BrainChip's inception.

Chief Executive Officer’s Address
…. one of the worst technology economies I have ever seen in my in entire technology career, with virtually all sectors, and specifically the semiconductor sector, seeing a slowing of orders, increased layoffs, and increased tendency for customers to slow down important future technology decisions.

During this interesting period, our company has been on a large transformation from a creator of promising technology to a supplier of enterprise-ready products supported by a robust commercial organization and focus.

We are in the right market and BrainChip’s technology and IP product are positioned to scale with the market opportunity.

… the many partner announcements and amplification of our presence in the market. On the ecosystem front, we solidified our framework of Technology, Enablement, and Integrators. Since our last AGM we added new partners such as Intel Foundry, Prophesee, AI Labs, Edge Impulse, Emotions 3d, and Teksun. These partnerships enhance our ecosystems, allowing our potential customers to have confidence that our technology can be deployed in multiple foundries, workloads are easily ported, and key semiconductor enablers work better with Akida.

We have just completed the tape out of another chip, the Akida 1500, in the MCU-friendly 22nm process technology. We’ve received our first samples and will begin building different demonstration boards and modules for use by our sales prospects immediately. Most importantly, in March of this year, we told the world about our second generations of Akida.

We also now further understand the length and complexity of an AI IP sales cycle; it is long, but we are on paths with several leading prospects. Even during this challenging economic environment, world class companies still innovate to exit the down cycle with solid plans for the future and while engagements are not closing at the pace we desire, it is important to note that we are not losing to others - it’s just taking longer.

…. consistent feedback from virtually all engagements, which was while Akida 1.0 was, and is, at leadership levels of performance and power, the addressable number of uses cases was arguably narrow and targeted in places where existing “good enough” solutions were already in place. We simply were not going to be successful with the Version 1 product. This direct customer feedback is what drove our push to the 2nd generation Akida. At its simplest level, Akida 2.0 now allows BrainChip to address many more industry use cases, which means we can now address many more prospects.

We are in an industry where change is constant, and the pace is accelerating. … AI is becoming the standard compute model and is now mainstream. We are doing the right things; the market is coming, and I am confident that substantial sustainable revenues will occur.

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At the AGM 52.57% of shareholders voted against Adoption of Remuneration Report.
· Remuneration Report did not pass and company receives first strike

The two-strike rule. This rule gives shareholders the power to spill the board if they are not happy with the remuneration report. That is, ELIGIBLE shareholders have the power to ‘fire’ or relieve directors of their board positions.

https://cdn-api.markitdigital.com/ap...df02a206a39ff4
BrainChip – Results of Annual General Meeting held on 23 May 2023

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02668759-2A1450729?access_token=83ff96335c2d45a094df02a206a 39ff4

BrainChip Responds to AGM Remuneration Report Resolution Results
• Remuneration Report did not pass and company receives first strike

https://www.youtube.com/watch?v=KLdT9VqYQxQ

CPA Two-Strike Rule - The Australian Corporations Act was amended in 2011 to give shareholders some power over executive remuneration. This is done in terms of the two-strike rule. This rule gives shareholders the power to spill the board if they are not happy with the remuneration report. That is, ELIGIBLE shareholders have the power to ‘fire’ or relieve directors of their board positions.

https://www.asx.com.au/documents/res...wo-strikes.pdf

[moka]

There was a pump and dump in the days leading up to the AGM. It happened last year too. And around the quarterly report. The day of the quarterly report Friday 28 April the low was 35c and it closed at 42c. So traders and shorters making lots of money and long term holders seeing their investment drop in price. On 23/5 the day of the AGM there were 2.7m short sales, over 10% of turnover. BRN 16^th most shorted stock with 6.76% shorted. On Mar 14^th it peaked at 7.75% shorted, so shorts slowly decreasing.

Thursday 18/5 closed at 43c up 2c, 4.9%
Friday 19/5 closed at 47c up 4c, 9.5%
Mon 22/5 closed at 51c up 4c, 8.5%, with a high of 52c
Tues 23 AGM day closed at 42c down 9c, 17.6% on 24.5m turnover
Wed 24/5 closed 40.5, dn 1.5c

[Aotea]

Am still a believer in the technology just not sure if this team can deliver. Pleased to be free carried but not pleased with what i put my initial capital into...

[moka]

Am still a believer in the technology just not sure if this team can deliver. Pleased to be free carried but not pleased with what i put my initial capital into...

I have held for seven years, and so when they started talking recently about how big the market will be in another seven years in 2030 I was disappointed because years ago they were talking about how big the market would be in 2023. I am retired now so in seven years I may be the richest person on the rest home. At times I feel like selling and just not bothering, but then I would be really annoyed if I wasn’t holding and it really took off. And I think it will have exponential, hockey stick growth but maybe not for another year, or two or three or five. However AI stocks are the hot stocks now thanks to ChatGPT so hopefully it will help the BRN share price. If markets really are forward looking then we should see an improvement in the share price.

[moka]

https://www.youtube.com/watch?v=JIlkRlDnrX8
ASX Investor - CEO Sean Hehir interview. Understanding Brainchip's Role In The AI Revolution

5:11 we came from promising technology to putting out Enterprise ready product.

18:27 are you hoping to see that Cadence (regular revenue as opposed to lumpy revenue) in the next six to 12 months or are we talking three years, five years, what are you anticipating? I would think it's not that far out (3-5 years) but it's not that far in (6-12 months) somewhere in between them (18 months – 2 years?).

30:00 watch us closely there'll be a lot of interest things happening in the next couple of years

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Appendix 4C and Quarterly Activities Report out yesterday. Closed at 36c, down 1.5c on 8.3m. Still heavily shorted = 7.36%. It did drop to 33c on 10 July, and then a pump and dump for the Quarterly report with a high of 39c last week. Good to see receipts from customers of $830,000 for June Quarter.

https://stocknessmonster.com/announc...asx-2A1462458/ Appendix 4C and Quarterly Activities Report

https://stocknessmonster.com/announc...asx-2A1462464/ Top 20 Holdings

BrainChip continued to expand its ecosystem partnerships during the quarter by adding Lorser Industries, CVEDIA, Teksun, Blue Ridge Envisioneering, and Quantum Ventura to its growing number of partners that are taking the unique benefits of Akida technology into both, standard products as well as defining cutting edge new solutions. These collaborations along with a growing number of ecosystem partnerships are essential elements of BrainChip’s commercialisation strategy.

The University of Oklahoma joined Arizona State University, Carnegie Mellon University, and the Rochester Institute of Technology in becoming the latest US educational institution to join the BrainChip University AI Accelerator Program. The program is intended to share BrainChip’s technical knowledge and promote leading-edge discoveries and position students to be next-generation technology innovators and potential future Brainchip employees. Interest in our University program remains high, and we are currently reviewing Universities for inclusion from other regions of the world.

The Company ended the June Quarter with US$21.8M in cash compared to US$17.7M in the prior quarter.

BrainChip reported net operating cash outflows of $4.1M vs.$6.3M in the prior quarter.

Cash inflow from customers in the current quarter of $0.83M was higher than the prior quarter (US$0.04M).

Total payments to suppliers and employees of $5.0M in the current quarter was lower than the prior quarter ($6.2M) due to the payment of 2022 bonuses to employees of $0.92M and other corporate costs in Q1.

Cash used for operating activities includes payments to BrainChip’s Board of Directors totaling $276,923 as noted in item 6.1 of the accompanying Appendix 4C, comprising fees for Non- Executive Directors and salaries for Executive Directors.

Cash inflows from financing activities included $8.12M (A$12.2M) received upon the issue of 20,756,540 shares to LDA Capital Limited and LDA Capital LLC (“LDA Capital”) after the completion of the capital call notice that was issued to LDA Capital in January 2023. A further $0.32M of financing cash inflows resulted from the exercise of Long-Term Incentive Plan stock options.

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https://finance.yahoo.com/news/brainchip-holdings-asx-brn-good-225649732.html

BrainChip Holdings (ASX:BRN) Is In A Good Position To Deliver On Growth Plans

So it had a cash runway of approximately 20 months from December 2022.

On balance, we think it's mildly positive that BrainChip Holdings trimmed its cash burn by 4.6% over the last twelve months. But the operating revenue growth of 219% was even better. It seems to be growing nicely.

Since it has a market capitalisation of US$448m, BrainChip Holdings' US$14m in cash burn equates to about 3.1% of its market value.

Given that is a rather small percentage, it would probably be really easy for the company to fund another year's growth by issuing some new shares to investors, or even by taking out a loan.

As you can probably tell by now, we're not too worried about BrainChip Holdings' cash burn. For example, we think its revenue growth suggests that the company is on a good path.


https://simplywall.st/stocks/au/software/asx-brn/brainchip-holdings-shares?blueprint=2600260

Revenue is forecast to grow 91.38% per year

Currently unprofitable and not forecast to become profitable over the next 3 years

https://simplywall.st/stocks/au/soft...eprint=2600260
We currently don't have sufficient analyst coverage to forecast growth and revenue for BrainChip Holdings.

[moka]

Brainchip has been expanding its ecosystem of partners as per the list below, since CEO Sean Hehir was appointed as CEO on 15 November 2021. Most of them have been press releases rather than Announcements. Some big names there: - ARM, Ford, Intel, Mercedes Benz, NASA.

https://brainchip.com/partners/

https://finance.yahoo.com/quote/BRN.AX/

Ai Labs
ARM
ANT 61
BIOTOME
BLUE RIDGE ENVISIONEERING
CVEDIA
EDGE IMPULSE
EMOTION 3D
FORD
GLOBAL FOUNDRIES
IPRO
INFORMATION SYSTEM LABORATORIES
INTEL
INTELLISENSE SYSTEMS
LORSER INDUSTRIES
MEGACHIP
MERCEDES BENZ
MOSCHIP
NANOSE
NASA
NUMEN
NVISO
OCULI
PROPHESEE
QUANTUM VENTURA
RENESAS
SALESLINK
SiFIVE
SOCIONEXT
TATA CONSULTING SERVICES
TEKSUN
VALEO
VORAGO
VVDN