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It certainly looks like the market is awaiting the final results for 2022 to assuage any fears regarding the going concern issue.

The market also needs to see that Ethernity is able to secure additional new contracts/ existing contracts uplifts before determining what direction the SP should go.

It is obviously not persuaded by the revenue expectations of c $9m for this year given the management's dismal record of underachievement in respect of previous years revenue guidance.

All in all the share is in a sorry mess at the moment with zero new/ existing investor interest and lack of progress on new business.

We all need some reassurance very soon .

Fred

No inside track to company and even when I was a significant shareholder, I got no information from Ethernity other than what was in the public domain.

Good to see the clarification RNS though.

Jesus

That was quick

Are they reading my mind.

Well done , Mark this is much better and is what we know you meant in the first place.

Better a clarification than leave the original RNS to stink up the joint.

Bid

I have been reflecting on the totally botched RNS and the utter confusion caused by it as reflected in the Reuters headline which mentioned that the company SEES revenues of $3.3m for this year.

Any potential new investors would see this as a massive revenue downgrade to the forecast $9m and move on very smartly and will not be bothered to try and decipher the convoluted and poorly written RNS.

If we as existing long term shareholders are totally bemused by the RNS, what chance has an interested observer got.

I feel it is now paramount for management to issue a clarification RNS in clear precise English to get across to the market exactly what it is trying to say particularly as the RNS was supposed to be good news.

There is no shame in a clarification RNS ( it is done all the time) but leaving the RNS stand is utterly unacceptable.

Will Tim give us a update on whether the FDA was held yesterday or are they still waiting for the FDA to respond.

Even if the Type C meeting was held yesterday, it will take a number of days for Avion and Immupharma to digest the information before RNS is released.

More nail biting to come before we are informed of our fate.

ATB

Our customer base with our now developing technologies, I should say

While I am on a roll what was David Levi thinking about by saying " we're pleased to have concluded A PROCESS to secure components to meet the PLANNED followed by a comma ( sic) contracted deliveries...no mention of to who...should have said to our largest customer...the Asian OEM who we hope to expand our relationship with over the coming years following our successful initial contracts.

We look forward to further significant business opportunities to expand our customer with now developing technologies.

The RNS today caused more confusion .

It should have just stated that the company had secured the necessary components to fulfil the contracted orders for delivery this year in respect of its Asian OEM customer.

However they then mentioned that the components would allow it to secure revenues of $3.3m equal to 80% of the pipeline under the contact.

It also plans to continue working with new customers (surely this means potential new customers) and why use the aspiration of "plans to" rather than the definitive "is actively working".

It also goes on to say it is targeting sales OF licence fees rather than revenues FROM licence fees from its PON systems and fibre control devices.

With investors focused totally on the company achieving a target of $9 revenues this year, the only figure mentioned was $3.3m.

Investors whether existing or potential should not have to solve a mathematical conundrum to figure out what management is trying to tell us.

This so called good news RNS got lost in the mist when if properly structured would have been ,with some glitter and trumpets, much better received by the market.

The result was a loud yawn.

Sloppy.

Well it appears no-one wants to have a punt on Wednesdays FDA meeting which is totally understandable given Immupharma's dreadful record over 8 years of disappointing investors.

Maybe we will get good news this week to cheer us all but at the moment the market remains distinctly wary.

ATB

Sorry not my final statement on the going concern.

I see TracyLied speculating on the minimum of 12 months going concern outlook being from the year end date of 2022.

This is totally incorrect as the International Auditing Statement 507 clearly states that the minimum 12 months going concern outlook is from the time the Directors approve and sign the audited statements which I suspect is possibly next week.

Always happy to oblige with facts.

Final comments on the going concern issue

The recent International Standard on Auditing 570 now places significant responsibility on Auditors to opine either with a positive or negative statement that they conclude , based on their audit and representations of the management and directors, that the company can continue ( or not) as a going concern .

Before they could say they have no comments to make on the issue.

This now put significant extra workload and responsibilities on management/ directors who must assure Auditors that both existing cash and future revenues from contracts etc are sufficient to cover all ongoing costs and liabilities as they fall due for a period of not less than 12 months.

This is most reassuring for me and that is why I await the RNS on the final accounts for 2022 with considerable interest.

Definitely my last comment on the matter, you will all be pleased to hear!

Remember it is the responsibility of the Directors to demonstrate clearly to the Auditors and shareholders that the company has sufficient financial resources to

continue to trade for a MINIMUM of 12 months from the date they sign off the accounts .

The 12 months is a minimum requirement in a going concern statement as , for example, in large companies , major refinancing of debt could be 2/3 years away but with rising interest rates , the Auditors may want assurance that the company has the necessary resources to manage this situation.

By the way in case TracyLied is concerned about me , I have a breakeven price of just under 30p following some recent buys..which is nothing to be proud of ,I admit, but we are not dead yet.

If you examine the shareholders list , I don't see any one individual with a shareholding above 2m shares apart from myself, so TracyLied must be using multiple accounts to get to 2.5m..interesting.

Apologies

12 months from signing not 22 months

One of the possible reasons for the delay in publishing the audited accounts for 2022 is that in order for the Auditors to give a clean audit report they must be satisfied on the going concern position of the company for the 12 months following the sign off by the Directors of the financial statements.

I suspect the Auditors needed more assurance on the cash position of company at the date of signing, the prospects of securing funding as the year progresses and the confirmations from the Board of Directors of the visibility of future contract revenues.

Hence the two deeply discounted placings in a dreadful AIM market and the repricing of the 15p warrants to 6p.

No Director will sign off accounts without being totally satisfied on the going concern statement as their personal reputations and risk of potential litigation is a serious risk.

As a Chartered Accountant, former Auditor and a Director of numerous companies , I would never sign off on audited accounts without being totally convinced that the company is viable and has sufficient cash to continue in operations for the 22 months following the Directors signing the accounts.

I am sure Mark Reichenberg and his fellow Directors have followed this professional standard to the letter.

JT

I agree fully...18 months of dire news /RNS and no new contracts.

A number of shareholders including myself suggested a Strategic Review earlier this year similar to Napatech.

However the management continued on independently and the SP continued to crash.

I feel something has to give very soon as most LTH s have been effectively wiped out and are exhausted.

I think the scrap value ..tax losses forward, IP and Patents, existing contracts and Stock Exchange listings have a value higher than c£4m.

The question is whether any larger player will want to take them out and at what price.

A lot of us have invested a large amount of time ,belief and hope and serious money in Ethernity and it is awful to see where the company is right now.

Something has to give and soon .

ATB

JT

I agree it is looking very bleak at present with the SP at 2.7p bid and a market cap of under £4m.

The market is saying Ethernity is toast and who would disagree with that assessment given the lack of positive news on any front and the series of disastrous RNS of the past 18 months.

However I still think Ethernity has a chance if they give investors belief again, secure the $9m revenue target for 2023 and get the 6p warrants exercised.

But time is running out sadly and we need some reassurance very soon .

Bid

Sad we are talking about a £4.6 k sell as a significant event

That's where Ethernity's stock market status is at the moment.

Pathetic situation for us all.

ATB

Jt

Fully agree

Without positive contract news , the SP will just drift away to dust.

Even crumbs from the Emperors table can transform Ethernity but as I have said many times, we need evidence very soon.

ATB

JT

Ethernity's patented Semiconductor data transmission and processing technologies are designed to improve 5G speeds and lower latency ( 4G latency levels range from 50 to 95 milliseconds while 5G reduces these to between 1 and 5 milliseconds).

The technologies also assist in significant cost reductions / lower power usage in 5G networks .

AI cannot function effectively without 5G network transmission speeds and therein lies the correlation.

Ethernity needs to give investors this information and demonstrate clearly how its technologies relate to the current red hot 5G/AI sectors .

I hope they will get this important message out sooner rather than later as we could all do with some positive newsflow.

Dyor

ATB

No rational investor would participate in a fund rising until they see what transpires next week.

If the company wants the warrants exercised and are confident of a good FDA result, it will wait until after the decision.