Ann: Annual Report, page-9

I can't find the early buyout (https://announcements.asx.com.au/asxpdf/20240725/pdf/065xr2jg9031j9.pdf) of LDA agreement $371,000 shouldn't it be mentioned here. (try searching for it; please let me know where it is -should have a note)

I thought it would be listed under finance expense but it isn't there either, have to say at the moment (after everything else) I am left wondering did it even really happen?


Directors’ report
Significant changes in the state of affairs p4-5

On 29 December 2023, BrainChip, together with LDA Capital Limited and LDA Capital LLC (“LDA Capital”) executed a Third Amendment to the Put Option Agreement (“POA”) (refer to ASX announcements dated 13 August 2020 and 26 October 2020), extending the agreement for a one-year period. The amendment also provided an option to extend the POA for two additional years under the same terms upon mutual consent. Under the terms of the renewal, the Company was required to fulfil its obligations under the SecondAmendment to draw down the remaining A$2.7M in addition to an amount no less than A$12M by 31 December 2024.

On 4 December 2023, BrainChip submitted a capital call notice in accordance with the POA to subscribe for up to 25 million shares. The capital call notice was closed and cash funds of US$2,535,623 (A$3,850,488) were received on 23 January 2024.

On 27 March 2024, BrainChip submitted a capital call notice to LDA Capital in accordance with the Third Amendment to the POA to subscribe for 40 million shares. The formula used to determine LDA Capital’s purchase price remained set at 91.5% of the average of the daily Volume Weighted Average Price for each day that shares were sold throughout the pricing period. Cash funds were received in two instalments, comprising US$1,810,792 (A$2,820,000) on 19 April 2024, and US$3,645,104 (A$5,465,128) on 3 July 2024. Thepurchase price per share ranged from A$0.2194 to A$0.3664 during the capital call period.

..............

On 31 December 2024, the Company signed a Fourth Amendment to the POA with LDA Capital. Total funding increased to A$140M (Total Commitment Amount), of which A$68 million in gross proceeds has been drawn since inception in 2020. Under the new terms, BrainChip has agreed to an additional Minimum Drawdown Amount of A$20 million to be drawn no later than 30 June 2026. BrainChip will issue 40 million Collateral Shares by the earlier of the next Capital Call or 30 June 2025, subject to Listing Rule 7.1 placementcapacity. The purchase price remains set at 91.5% of the average daily Volume Weighted Average Price for each day shares are sold throughout the pricing period.