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Hi Billy V - Actually I have beeen a shareholder from day one and still am. I only post when I have something relevant to say unlike many of you this board where all I read is bull---t all day long. People that dont understand the business and the people. I am fortunate to know much more than you. Get a life somewhere else away from this board!!!!

I disagree completey about concerns relating to Skids comments. He has been here from the start. He has seen as many of us have, the demise of ENET. He has given advice and a few day traders may have made a few bucks but hey! This company is destined for closure! NO NEWS ON NEW CONTRACTS! POOR FINANCIALS! POOR MANAGMENT! CRAP BOARD! What more can I say. We can always talk up opportunities but this one is about to die.

I have done some independant research this morning using ChaptGPT and Perplexity to get a view where the Ethernity business is. Output is as follows:

Ethernity Networks plc Viability Assessment

Executive Summary

Ethernity Networks plc presents an extremely high-risk investment opportunity with severe liquidity concerns and questionable long-term viability. While the company has potential transformative opportunities in ASIC development and 5G infrastructure, the current financial distress, dramatic stock decline of 99.79% over the past year, and critical cash position make it a highly speculative investment unsuitable for most investors.

Financial Performance and Current Position

Alarming Financial Deterioration

Ethernity Networks reported devastating financial results for 2024, with revenue declining 63% to $1.38 million compared to $3.78 million in 2023. Despite this revenue collapse, the company managed to improve gross margins significantly to 92.1% from 61.9%, indicating efficient cost management of remaining operations.

The company's cash position is critically low at $0.05 million as of December 2024, down from $1.99 million in 2023. This represents a 97.5% decline in cash reserves, creating immediate going concern issues. The company did raise $1.86 million during 2024 and collected an additional $0.39 million from customers in January 2025, providing temporary relief.

Operational Losses Continue

Operating losses decreased marginally from $5.3 million to $5.1 million, while EBITDA losses improved by 10% to $3.48 million. However, these improvements are primarily due to cost-cutting rather than operational improvements, as evidenced by the massive revenue decline.

Stock Performance Analysis

Catastrophic Value Destruction

Ethernity Networks' stock performance represents one of the most severe declines in the technology sector. The stock price collapsed from approximately $0.0479 in July 2024 to $0.0001 by June 2025, representing a 99.79% decline. This translates to a market capitalization drop from approximately $728,000 to just $1,520, destroying over $726,000 in shareholder value.

The stock exhibits extreme volatility with weekly movements averaging 33.4% compared to the UK communications industry average of 6.8%. This volatility, combined with minimal trading volume, creates significant liquidity challenges for investors.

Technology and Market Position

FPGA Technology Foundation

Ethernity Networks specializes in Field Programmable Gate Array (FPGA) based networking solutions, targeting telecommunications, 5G infrastructure, and data center markets. The company holds six US patents for its networking technology and offers products including ACE-NIC SmartNICs, ENET flow processors, and network appliances.

The FPGA market is experiencing robust growth, projected to reach $17.53 billion by 2035 with a 7.6% CAGR. FPGA-based Smart NICs specifically are estimated at $2.5 billion in 2025 with an 18% CAGR through

One aspect I find interesting is why the Board members have not reduced their salaries and converted this shortfall into stock. The salaries of DL, SB, and Richard Bennett are notably high. It is difficult to comprehend how the board can be compensated so generously when the company is on the verge of closure.

Skid - I completely agree with your assessment. If this were a UK-based company, I believe shareholders would have stronger mechanisms to hold directors accountable. However, with an Israeli company structure, those options appear limited. Also the Israel based directors get paid very little as it is dictated by local law so my question is are they really involved or are they just a 'tick in the box' board; which would explain a lot!

The broader market impact concerns me as well. Despite Israel's thriving tech sector, I suspect the ENET experience - which had considerable IPO support - may deter other Israeli companies from pursuing UK listings in the near term and UK investors accepting them.

Looking at the company's track record, there appears to be a pattern of ambitious promises followed by terrible execution. Current investors might benefit from reviewing the historical performance and governance decisions.

While changing leadership at this stage seems unlikely I'm surprised the new board members haven't implemented any significant changes.

I believe this remains primarily a short-term trading opportunity if you have the balls to gamble before the lights are turned out later this year.

Listed companies are required to make RNS announcements when there is financial news, rumours or corporate updates that could affect their share price. Having a few promising meetings at a trade show do not warrant an RNS. We all want contracts not bull s_____. This is typical and has been the same for years. DL needs to understand that he cannot keep telling his investor base that new business is just around the corner as that has been the story since the IPO. I am a shareholder but this company will not survive unless there are changes and that includes DL. My opinion!

B_Positive Fake news!!!

B_Positive

I dont think you get it or want to.

Levi has not had any real business experience before Ethernity. He did not sell Broadlight (see my previous note and Skid's below)!!! He tries to be CEO, Sales Director and Chief Engineer and is not the right person for any of these roles.

As a shareholder I would really like to see new contracts come in but when was the last ' new customer'? At IPO the pitch was "we need money in the bank to support our balance sheet so we can deal with the big players". They havn't got the money so why would anybody want to deal with them now. If all was good they would have been bought by now so something must be wrong and I think it is the leadership team and Levi in particular and maybe even the technology.

Unless there is a rabbit pulled out of the hat this business is not going anywhere.

If you disagree then more facts please and insight into new contracts and where they are coming from.

I would like to be positive but!!!

Firstly, i am not a day to day contributor to this board (for reasons I cannot explain) but I have been involved with Ethernity for a long time in fact since the IPO and for those doubters I am still a share holder. However there are a few things that all investors on this board should realise.

1. Levi was one of 5 co-founders in BroafLight,Ran Dror, David Levi, Haim Ben Amram, Didi Ivancovsky, and Raanan Ivry. He did not run the company and it is my understanding he was not instrumental in the $190m sale!

2. The 2 US patents are in his name and have not been transfered to Ethernity.

3. Since the Ethernity IPO not one single financial objective has been achieved.

4. There is no communication at all with shareholders so you will never know what is really going on. Try emailing Levi and see if you get a response.

I undersand why all these new day traders get excited but this will never be a significant business again. You should all listen to Skid who has been involved from the start. He understands the market and the history.

Levi is unable to grow a business, shareholder value is a secondary consideration and the Board are rubbish, particularly the Chair. But I know all you positive guys will continue to talk it up but this company should have been delisted ages ago and it is very likely to close soon. So take your money when you can!

My understanding is that the ENET event on the 6th is by invitation only. So if anybody wants to attend you would need to contact Peterhouse (Lucy Williams / Duncan Vasey / Eran Zucker) as a current investor for an invite.

Peterhouse are holding an investor lunch for ENET on the 6th February. Anybody going?

Skid

I agree, that if a company believes in the tech they should just buy it out and give DL an earn-out. However, this is DL's baby and he is difficult to work with so why would an acquirer take the risk, certainly if you are an American buyer. Don't forget dealing with an Israeli company is always difficult based on my experiences.

Sorry Fredelm I am not Dallo but I wish he would come back and play a role is guiding sensibility on this chat platform.

Skid

I do not post very often for a variety of reasons which you may be aware of but I have been with ENET since it's IPO and therefore know the company and management very well. I understand your frustration and it basically, in my view, it comes down to DL's ability to manage the company properly. To his credit he has put his own money into support the business, which many would have not done, but he is not the guy I would want running my business. There just needs to be change but with the financial resources available it seems unlikely that will happen. By now the company should be announcing new contracts every couple of months. I ask the question, if you were a buyer for this technology what would you advise your management team, buy or not? It is high risk to work with a vendor that could got bust at any time?

DL stated that some time ago that he would not engage with shareholders any more other than through a relevant RNS. He must change if he wants to get long term support from the markets/investors but he must be realistic unlike before. Tell the truth and many will follow.

All in all, I hope I am wrong , but I don't see how DL can get out of this one. The day traders may make a £ or two but this should be a company worth £200m + now and I keep asking myself why isn't it and I keep coming up with poor management that has never delivered anything to shareholders other than lining the pockets of shark money lenders.

I will get slated by the day trading penny investors for these negative comments but the majority have no idea about the journey and who to trust. I hope I am wrong as I am still an investor and will hold for the time being.

Written by DL, same old, same old style. We now have a head of sales that can at least read an autocue to preset questions. Not very impressive but at least he is visible for the first time online.

Skid

You have posted on this site and been involved for so long with this company and I appreciate your views. as most of the comments now from others are uniformed and don't understand the journey.

Here are a couple of questions.

1. If this is a key appointment why isn't Ilan Tevet on the Board? So I would suggest it is an appointment that has no teeth or change in strategy.

2. Will DL give up sales responsibility to focus on operational issues. I doubt it but in my opinion is what is needed

So not impressed.

Thoughts?

The gold nugget will take far too long to save the company but may interest a buyer.

Dallo

I am not sure how you can feel so positive. Little or no cash with an optimistic 'going concern' statement from the Board which is very questionable. I hope that there are some new contract announcements around the corner but I have my doubts. Also I have noticed that the VP Marketing is looking for a new job if he is still actual working for ENET; part of the cuts probably. No sales, no marketing but lots of R&D resources, still a recipe for disaster.

Quantas - I hate people like you. Go back in your hole and when you have something to contribute which people want to read come back.