Hi
@BarrelSitterI know you are aware but for those who don’t a few facts to assist with understanding why now for the additional capital:
1. Under the rolling funding agreement Brainchip have with LDA Capital (hereafter LDA) last year they negotiated a deferral of the outstanding 5.2 million draw down date to this month and extended the overall amount they could draw down against LDA to ensure they had more than sufficient capital;
2. So in consequence anyone who does proper due diligence knew there would be a draw down for at least the 5.2 million;
3. The Chief Financial Officer of Brainchip Ken Scarince is highly experienced and prepared a forward budget in which the known 5.2 million was allocated;
4. In Ken Scarince’s presentation to German investors he referred to the company understanding that to maintain its commercial lead that it was absolutely imperative that they continue to drive technology development and his immediate concern was to ensure the hand off to engineering of AKD2000 and he hoped that this might occur sooner than later so that steps could be put in place to get it produced and to market in 2022;
5. In this same presentation he stated that if this was to occur they would need to spend above their present budget an additional 5 to 7 million;
6. So looking at the 15 million draw down ninety percent of which will be paid to Brainchip being 13.5 million if you subtract the already known amount of 5.2 million you are left with 8.3 million which my mate Blind Freddie thinks is to pay for the production of AKD2000 sometime in about mid 2022;
7. How does Blind Freddie come to this conclusion well it is because the company announced late last year 2021 that the design for AKD2000 was complete and was being handed off to engineering.
Now anyone who has half a clue will know that AKD2000 will have LSTM on board and as a result have the ability to extrapolate from known events a next action such as a ball running across the road in front of an EV could mean a child emerging from between parked cars.
The presentation of a working AKD2000 to the market will according to Peter van der Made extend Brainchip’s first to market lead out to 5 years.
Now here is the exciting part having completed the design for AKD2000 the IP could already be in the hands of EAP customers just as the AKD1000 IP was in 2019/2020 many months before the working AKD1000 engineering samples came out.
A little research and logic goes a long way to building confidence in the future of an investment.
My opinion only so DYOR
FF
AKIDA BALLISTA
(20min delay)