Member Info for Kooba

I suppose a positive is they have left themselves completely open to a low ball takeover…they no longer have LOAM and RG to protect them with a blocking stake with the very large majority of shares are now in pi hands. Pocket change to one of the major sensor or display companies to secure core IP to support their products and to possibly stymie competitors efforts.

With the now increased shares in issue 206m ( see other rns yesterday) the market cap at last nights close is still over £30m with £20m cash left. Whilst the short term lack of commercial traction has hit the share price , the IP is still there , though the time value of some key patents is becoming a pressing factor, there could still be an opportunistic tilt. Maybe taking this company off market might be for the best…as a listed company it has been a drawn out series of disasters for shareholders and still has had only one tiny commercial order in over 20 years in it’s existence.

I had considered the year end cash position ..having fallen from what should have been £23m allowing for the full £33m return ..we have £20m and only used £1.3m of the £3m committed.

Cash has been chewed up even with what should have been a big interest contribution as they held onto full tranche for 21/2 months . Perish the thought !

I see there was a change in shares in issue this morning rather over shadowed by the trading update. But shares moved out of treasury to cover employee share awards resulting in a big increase in shares in issue. I think most things that happen in this company are more aimed at enriching a few rather than the many shareholders.

“Further, the Company can confirm that it has completed the transfer of 13,762,222 ordinary shares of 10 pence each from the Company to the Employee Benefit Trust, of which 13,750,000 are in accordance with the terms of the share buyback programme announced on 11th April 2024. The additional 12,222 were originally held by the Company before the commencement of the Buyback programme.

Following the cancellation of the ordinary shares purchased above and the transfer of the ordinary shares to the Employee Benefit Trust, the Company will have 206,675,798 Ordinary Shares in issue, of which none are held in treasury.”

Nice day to see 7% of shares put aside to incentivise staff as the shares are 60% down from the last fundraise.

Pretty sure the licence with Samsung only covers display not sensor applications from memory , .not saying that would necessarily stop Samsung. Difficult to know what IP was sold to them but surely not any sensor related IP as that was to be Nanoco’s focus..

I have indeed looked through lots of spec sheets and compared to the early papers and demo’s of how they would use QD’s…nothing ever quite line up.

But if they were being used in products with major launches ( BrightSense) happening would it not be early days to point to either delays or no visibility in any forward material sales. It doesn’t feel like a normal Nanoco goalpost move ..where they kick it down the road a bit ..this says they need to understand where they stand . Could be potentially a long few months to finals results to find out what exactly is going on! But im sure now they will get the buyback done with no trouble…what foresight in holding off for so long !

I thought the same ..but have never managed to find a scrap of evidence that any QD materials in particular our materials are involved.The confidentiality agreements that they say are in place on just about anything to do with commercialisation efforts mean it is nigh impossible to back anything up..we end up where we are today.

Once again LOAM running for the hills and not listening to the guidance of great things have proved rather clever ..maybe they start buying again now expectation is at rock bottom?

Which sensor exacty?

The issue is the new range has never mentioned QDs as far as i am aware so its difficult to know what the investment in what products has been ..or if at all in terms of an available commercial sensor . That is why some have been running around in circles trying to figure out where this revenue build was coming from..and always came up with nothing concrete.

“I really doubt ST would have invested so much in the technology if they weren't very confident about volume sales.”

i think the argument that STM has not invested in gen 1 without there being a material payback is not the right angle…as with the Asian customer who has moved straight on to gen 2 it appears these initial development materials are maybe just on the route to a commercial use.

The context of STMicro spend of $1-2m a year is STMicroelectronics annual research and development expenses for 2022 were $1.901B.

So as others have said this does not mean that gen 2 once available are not a roaring mass market success but it seems unlikely that gen 1 is going to see revenues build as initially expected.

It’s not a simple delay it is pointing to no commercial demand for gen 1 let alone a build up in revenues from gen 1 to move to cashflow breakeven.

Gen 2 guided to further 18months development then up to further 12m to have commercial demand.

Lucky the company kept back more cash that they thought they would need ..because it looks like they will need it as there is no longer visibility to commercial revenues.

The cash has already depleted to £20m from £23m ( that was after the full £33m capital return..which is not yet completed) post tender but with the build up of cost base a la Apple and now predominantly revenue reflecting an accounting treatment of the Samsung settlement the cash will deplete further in the absence of anything new. The commentary from the company seemed far less up beat that their usual efforts when they kick the can..this time they don’t seem to know where they are at all.

“Following customer dialogue, the Group no longer expects to receive a further production order for its validated first generation sensing products during FY24.

· The Group is working with its customer to understand the range of possible outcomes and any potential impact on Nanoco beyond the end of the financial year. The Group expects to issue a further update with the full year results in October.”

It’s not just saying they will not get an order this FY they are saying they have no visibility anymore on when they might do…if they had said they now expect further orders this CY or next FY anything it might be interpreted as less of an issue.they have clearly teed up a miss of their cash flow breakeven guidance so it appears more of an issue that a slight delay imo.

Totally agree maxi..that is how i was reading it and looking at the previous revenue estimates there was no factoring in revenues above the samsung and r&d work anyway..which still hasn’t been met !. So i had interpreted orders in the first half of next financial year anyway.

The worry is around the wording here…it is far less confident than” the customer has told us to expect further orders before the end of this year “ messaging. If things have slipped by a few months then an overreaction but they seem very woolly on what they expect now and there is a real possibility that the company is now looking at gen 2 ( and years off) for sensor revenues to build…maybe that is what the price is telling us.

The comms again are vague and the actions over the buyback and the release of marketing material last week do not help in gaining shareholder trust.

They need a new ceo to repair the relationship with those that own the company as confidence in BT is shot. I hope the NEDS act in the interests of the company and shareholders .

The approval by the company of the highly bullish paid for marketing note from Edison last week looks incredibly poorly thought through knowing this was coming ..the suspension of the buy back makes more sense now but would indicate they or their advisors knew such a profit and revenue warning was coming. The company has hardly clear the last complete comms FU and know is in another.

Those who bought on that note last week that the company signed off on should be asking questions on the timing.

Any anyone reading this

The Group is working with its customer to understand the range of possible outcomes and any potential impact on Nanoco beyond the end of the financial year. The Group expects to issue a further update with the full year results in October.

Needs to realise they haven’t got a clue what is happening.

Ngr i would check your comments on cash flow breakeven cy2025 and mine..

Well ..wont get fooled again…they have ramped up the cost base and have built a FAB …and once again have not read it right. They have a very close and long term relationship with STM yet once again have been sold a dummy. When did they find out ? Was this the reason for the suspension of the buyback? Not many positives out of this and i hope the believe everything you are told and dont question that it doesnt add up brigade enjoy their humble pie.

Yes not much that gives direction as to where our materials go but has the codenames indeed it is Wolfy Smithy…power to the people!! Some clues to age there.

Secrecy !

It would be odd to be launching vd55g1 and a range under the BrightSense umbrella which seems very much there long term offering in small low power sensors if it was to be replaced by a better version shortly ..a new version that already has gone through development validation and samples..seems odd if there was a new secret product just to be released that faced the same markets. My guess is that QF is in vd55g1 and maybe others in the BSense range ..who knows why it is not revealed. There is no secret that stm new range of sensor tech in near and short wave infrared incorporated QD’s..they published papers and have done presentations at trade events demonstrating how they work. Why the secretary when it’s known and others are taking the same approach. Bit odd.

It means that the person on the bid wasn’t getting any stock so has decided to raise their bid i guess. It’s an order book ..sometimes a brokers algo programme will input slightly different levels to attract trade…so could be Cavendish working to find stock again.

Why they stopped buying for a month and a half and started again on an average volume day at higher levels who knows…but i imagine they will continue on a daily basis again.

Not a volume related thing , not because there was something close to being announced..just stopped when the price bottomed out and started buying when the price nudges up.

X It was only announced a week ago jut before i posted on it ..always good to share relevant stuff rather than saying you saw it after the event..it’s not a competition ..but well done for spotting it first and not sharing anyway i look forward to the feedback.