Brn - brainchip holdings

[moka]

Closed at 18.5c, down 2c 9.8% on 16.7m = $3.2m
Shorts – 28/11 & 29/11 no shorts, 30/11 - 2.1m, 1/12 - 2.8m. Total shorts 28/11 = 4.63% =82.8m

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

https://stocknessmonster.com/announcements/brn.asx-2A1491937/

• Company submits notice to sell 25,000,000 Shares
• Available funding under the LDA Agreement of $15,680,696 (AUD)

The Pricing Period for the Capital Call Notice will begin on 04 December 2024 and will end on the earlier of 15 February 2024 or when the shares have been fully subscribed by LDA Capital. The agreement allows extensions to the pricing period upon request by the company in the event unsold shares remain at the period ending date.
As of the date of the capital call notice, available funding under the agreement amounts to $15,680,696 while the company is committed to drawing down a minimum of $2,767,457 no later than 31 December 2023.
The balance of shares includes 9,243,460 shares currently on account with LDA Capital with the remainder to be issued to LDA during the pricing period.

Application for quotation of securities - BRN
https://stocknessmonster.com/announc...asx-2A1491946/
BRN today issued 15,756,540 fully paid ordinary shares (Shares) following the issue of a Capital Call Notice.

Cleansing Notice Correction to LDA Capital Call Pricing Period
https://stocknessmonster.com/announcements/brn.asx-2A1491944/

Correction to LDA Capital Call Pricing Period
https://stocknessmonster.com/announc...asx-2A1492059/
the Capital Call Notice incorrectly stated that the pricing period would begin on 4 December 2024. The correct date is 4 December 2023.

[moka]

Institutions buying according to broker reports.
14 November to 21 November. Biggest buyer Citigroup with $1.228m, also buying Morgan Stanley, Morrisons, Macquaire, Goldman.
21 to 29 Nov. Biggest buyer JP Morgan $1.4m, also buying UBS, Citigroup, Morgan Stanley, Goldman and Jefferies. UBS went from net short to net long.

Note below Top20 on 29/10/23 - 5th. JP Morgan - up 11 million shares. They bought over 20 million shares over the last two quarters. They had 68m = 3.82%.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02729132-2A1482518?access_token=83ff96335c2d45a094df02a206a 39ff4

Some changes in Top 20 Holdings this quarter. Some holders going up, others down. Louis DiNardo (former CEO) is out of the top 20.

Top holder last time - Citicorp - down 43 million shares or 38%, from 156 million to 113 million. One of the holdings in that account is the ADR account held by Bank of NY Mellon. ADR = American Depositary Receipt Program, hold BCHPY shares that trade on US market.

3^rd largest. BNP - up about 6 million shares. Clearstream holds the shares that trade in Germany and Europe.
5th. JP Morgan - up 11 million shares. They bought over 20 million shares over the last two quarters.
6th. HSBC Australia - down 15 million shares.
7th. BNP (2) - up 4 million.
8th. Certane - up 10 million.
10th. HSBC (2). down 12 million.
11th. BNP (3) - up 1 million.
15th. Certane - up one million.

[moka]

CEO Sean Hehir was in Australia early November holding meetings with shareholders, Pitt Street Research and other interested parties. One of the meetings was apparently in Sydney on 6 November. Rumour says that the price spike to 25c and volume spike to 31m on 8 Nov was because of those investor meetings.

Share price was up 38% today on no news.
Up 7c today to 25c, on 31m, so volume up. Has been 4m -8m the last couple of weeks, but there have been other high volume days in Sept and Oct.
Sep 15, 2023 - 77,441,326 traded = out of the ASX200
Sep 22, 2023 - 35,111,091
Oct 10, 2023 - 35,053,810
https://finance.yahoo.com/quote/BRN.AX/history?p=BRN.AX

Not as good as the 143% rise on 29-09-2016 though.

[Baa_Baa]

The lingering and persistent smell of many years of massive dilution, for early adopter shareholders hoping for a quick win that has never come. The only hope for them is to time the next SP move, maybe this time they get it right? Who knows, no one does so far. How far away is this from mass production, sustained revenues and profits, who knows, or will it ever get there? No one does. Year after year, the story goes on. Better to just trade the chart, when it breaks out, get some, when it breaks down, get out. Don't buy the story and hold, it may never come.

[Aotea]

Hard to pick on this one. Ive sold out to free carry twice over so happy to hold and see what future the company has..

[moka]

Catching up with Brainchip CEO, Sean Hehir. Stocks Down Under. Nov 9, 2023. Sydney

https://www.youtube.com/watch?v=ZCRER0erel4

0:27 What we do at brain chip is we create intellectual property for people that are going to create custom chips that can do AI inference on the edge. When you say the edge that means outside the data center and there's a big movement in the industry to go away from everything in the data center to inference outside the data center, whether that's automobiles, medical devices, hearing aids, things like that industrial applications. So we create intellectual property for people that want to build custom chips.

1:00 We're the first company in the market to commercialize a neuromorphic approach.
1:09 Our model is very simple. like all licensing and IP companies we sell a license. Originally we charge some support and engineering for people who need help building their chips and when the chips come off and are created we collect royalties. It's a business model that over time creates a very attractive P&L.

1:47 Generation One - the first release of IP is a world-class product however it's very narrow in its functionality or very narrow in its use case so we have some customers and prospects there. The majority is interested in generation 2. Some of the things we did in generation 2 were at the customer request meaning - hey we want certain things that you don't do in there.

2:11 Specifically a lot of the industry is on 8bit support and we were on 4bit support so now we do 8, 4 and 2 so that's a big thing. We included long range skip connections which is something that the industry wanted - it's a very common way to do things and we needed to include that.
And now we support pytorch or Onyx pytorch. Most of the models in today's world are created in two major frameworks, tensorflow or pytorch.

Customers spoke to us said please include these functionalities. We've done that. Secondly we included some breakthrough kind of algorithm with called TENNs (Temporal Event-based Neural Networks) which is the ability to do things with element of time call spatial temporal neural networks. The breakthroughs are incredible. The ability to do much more with less lower power consumptions, less parameters and outstanding performance.

3:24 So we're seeing a lot of interest from in the pipeline for TENNs and we've also included something called encoder for vision transformers. So that's a lot of things that people can do now that they couldn't do before.

When people engage with us they start with an idea in mind. They have a product and they want certain types of functionality in it. They want some AI inference capability and they want to do it outside the data center. They don't want to have a network connectivity, they don't want to have large power.

4:15 We're seeing interest for things in hearing aids, such as de-noising and clarification. We see customers’ interest in industrial for IOT or vibration analysis to say hey here's your signature for preventive maintenance. We're seeing interest for wearables, in automobiles in various parts of the automobile so we're seeing a whole variety of things that people are interested in across a lot of verticals.
Just as an example the hearing aid - Akida in that use case would basically filter out what is voice, what is noise and skip the noise and just bring out the voice of whoever you're talking to.

5:05 We've announced the second generation but the customers prospects are waiting for the actual platform to be available.
So in terms of engagement in terms of traction what are you seeing now that is say different from a couple of months ago? If I look across our pipeline of all the engagements, much more than half probably 3/4 of it is all around generation 2 so that tells me it's something that people really, really wanted to have. So, the interest level is incredibly high in generation 2.

5:44 How far along in your sales funnel would you say some of these prospects are because it's one thing to be interested and a second to look at it and start testing with it but at the end of the day of course you want revenues out of that. Can you shed some light on the sales funnel for some of these?

So, these are very serious engagements, these are engagements with customers that have timelines to create product. So they're not just saying hey show me this and let's figure out if there's something to do right. Many of these customers have real projects. They have a date somewhere out in the future to get something done with a timeline. We're going to create an evaluation, we've got budget to do that. So they're very serious engagements and then when we engage that takes a fair amount of time. Typically it starts with a customer sharing their models with us. We'll run some models and share the performance data with them and say here's what you can expect from us and so we do it that way. In addition then we might turn over a board or a system and let them run themselves so they take a fair amount of time but we're deep in several, several engagements.

[moka]

Catching up with Brainchip CEO, Sean Hehir. Stocks Down Under. Nov 9, 2023. Sydney

https://www.youtube.com/watch?v=ZCRER0erel4

6:44 These aren't just explorations, they're projects where people have defined budgets and defined timelines. So you don't do that unless you're very serious about actually implementing that, because it's going to take a fair amount of resources on their behalf too. They're going to have to dedicate some technical resources to do these evals.
Which industry would you say is dominant among your prospects? I think it's relatively distributed. I've just talked about a fair amount in wearables, a fair amount in hearing aids, a fair amount in industrial and a fair amount in automobiles.

7:25 One of the initial deals was Megachips probably two years ago. That was one of the big ones in terms of the first license fees coming in.
How far along is that one in terms of mass production which would mean royalties for you?
We don't talk about the customers and their progress. It's their business. Now we work with Megachips. We are in constant contact with Megachips, we support Megachips but I really can't comment on where they are in their revenue streams.

What sort of delay is there between getting that first revenue in from licenses and actual royalties from mass production? So when somebody's going to build a custom chip it takes a fair amount of time and typically IP selection is pretty early in as part of that process so once they decide to buy their IP then they're going to have to go ahead and complete the design of their chip and that takes anywhere six to 12 months and at that point then when the chip comes back they're going to do some test QA and then eventually it goes into their end product and then it goes out to market so it could be well over a year, two years at a time.

8:54 I noticed you've got about 17 million in cash. You're burning roughly four a quarter. can you remind us of the structure of the deal with LDA Capital for your funding purposes.

Sure but before I do I want to add one more thing if I could to the last comment because you know I've got a lot of questions on this trip about the recent announcement on a commercial model. We announced something with a system integrator called VVDM, and VVDN is going to create an edge box that is going to be very small, and it's going to include our chip the Akida 1000. The box will be used for all kinds of use cases. Some of it could be for security, for retail monitoring and things like that. It'll be sold predominantly by VVDN. We will sell it as well. We're not going to sell it in volume with our salespeople. We're going to put it up on our website for people who want to buy it.

So people have asked me repeatedly is that a change in our business model to a chip versus IP? The answer is no. We're doing that for a couple reasons, We really want to just prove out more workloads into the market. And there's been there's been an ask from system integrators to do this. So we're going to do this with VVDN and we might do with others, but it is not a shift in our business model.
We're just going to try this and get some workloads out there. So you'll see some revenue but we're not expecting to be big revenue off the hardware.

10:19 LDA is a very favorable and friendly way for us to do our fundraising. We provide a certain number of shares to LDA. We specify a period of time that they can release those to market. We set a minimum price that they can't sell below and they take 8 and a half % for that service. As CEO and our CFO and our board we're evaluating all options for funding.

11:03 What can investors look forward to in terms of milestones in the next 12 months?
I think the next 12 months are critical for Brainchip in a lot of ways. When I came here two years ago the company was just really exiting its R&D phase. Now we had just released a chip but there was minimal sales people, we had minimal marketing presence. We just realized our generation One was narrow in focus.

So a lot of work went to creating generation 2 which we believe is the product that the company's going to be built on for the coming years.
We've revamped our entire sales organization. We now have sales presence around the world. We have people in Korea, Japan, Israel, Europe, the United States. We talked a little bit about the pipeline as well.

We're in a in a very different position than two years ago. So, the next 12 months is critical. So what can people expect from us? Certainly more partnership agreements, that's a critical part of our success. I made a comment at the AGM that we're going to accelerate our product development. So look for more product announcements from us and also for announcements around engagements that we're hopefully going to be winning.

[moka]

While some people have their doubts about whether Brainchip will be successful, Steve Thorne sees its potential and is willing to leave a senior position in Intel to join Brainchip. The fact that Brainchip is able to attract high calibre people including the new CTO, Dr. Tony Lewis shows that those in the industry can see its potential and want to be involved.

BrainChip Attracts Former Intel AI Sales Executive to Head Up Sales. December 5, 2023

https://finance.yahoo.com/news/brainchip-attracts-former-intel-ai-170000793.html

Brainchip has hired Steve Thorne as vice president of sales to help the company fulfill its mission to make every device with a sensor AI-smart.

Thorne is a senior sales and marketing executive with nearly three decades of experience in AI and data center solutions. He comes to BrainChip from Habana Labs, an Intel company, where he served as Head of Sales for the company’s world class AI processors. He holds a Bachelor of Science degree in computer science from the Georgia Institute of Technology and was issued a patent for the design of a rack-mount stackable hub and switch.

"I have had the benefit of growing with one of the largest technology innovators in the industry and applying a customer-centric mindset to high-growth sales organizations," said Thorne. "Having seen the market’s need for innovative AI solutions, I believe that BrainChip has the essential disruptive technology to make AI ubiquitous across a wide range of industries and use cases."

"We are excited to bring Steve in to drive the next phase of Akida^TM sales growth," said Sean Hehir, CEO of BrainChip. "His AI experience, his enthusiasm to foster customer success to build business, and nurture the sales organization is a tremendous asset not only to BrainChip, but to our customers and partners as well."

[moka]

Spectacular drop in shorts in the last week or two. Shorts are closing. Now 1.47%.

https://www.shortman.com.au/stock?q=BRN

Shorts on 1st December 1.47% = 26.2m, and on 4^th December were 1.47% = 26.6m shares. out of 1,805m.
The high was 8.2% on August 28.
15 September 5.9%
22 November 5.92%
23 November 5.07
29 November 4.5%
30 November 4.5%
1 December 1.47%
4 December 1.47%

Short sales on 7 December were 103,385.So it looks like Brainchip is bottoming. It had a low of 15c on 6 October and 16c on 31 October.

https://www.google.com/finance/quote/BRN:ASX?window=6M

[moka]

https://finance.yahoo.com/news/media-alert-brainchip-details-olfactory-183000617.html

BrainChip Details Olfactory Capabilities of Identifying Bacteria in the Blood in New Research Report. November 30, 2023

LAGUNA HILLS, Calif., November 29, 2023--(BUSINESS WIRE)--BrainChip Holdings Ltd, the world’s first commercial producer of ultra-low power, fully digital, event-based, neuromorphic AI IP, today announced the availability of a research paper detailing how neuromorphic computing can be utilized as part of an electric nose system to detect and identify different bacteria in the blood.

With findings achieved through studies by BrainChip Research, "Finding Bacteria in the Blood: Scaling a Hardware-Driven Neuromorphic Solution for Real-World E-Nose Applications" presents how a hardware-based, low-power neuromorphic solution can be combined with electronic sensors to create compelling real-world healthcare solutions that are cost-effective, portable and accurate. These assisted devices could significantly speed up disease diagnosis in remote locations, or even outside of traditional clinical facilities.

The paper explores a blood dataset collected as part of the Mednose project at Örebro University. The classifier model developed using Akida™ was able to identify ten different bacteria species in blood samples with a classification accuracy of 97.42%, outperforming previous implementations.

"Leveraging neuromorphic hardware to provide portable, power-efficient solutions for use in the identification of sensory data is a game-changer for a plethora of practical applications, such as e-nose systems," said Anup Vanarse, Research Scientist at BrainChip. "This latest research paper shows how Akida’s olfactory analysis technology allows for efficient and accurate detection of various strains of bacteria in blood to help with important disease diagnosis. Incorporating beneficial AI within sensory devices will provide the means for massive breakthroughs in the healthcare industry."