Member Info for skid35

Rooney.

1. The results coming in lower than the revised lower forecast doesn’t inspire confidence.

2. At the half year if memory serves the market cap was equal to net asset value. Selling $2.1m of assets for $7.1m and with today’s drop means a massive discount.

3. Whilst they are signalling they are selling for greater opportunities and return elsewhere, the lack of substantial news with $$$ or timescales is my real issue.

4. Slater on X seemed happy though.

Sharebel.

Firstly stop saying “we” as if you are an employee, it’s just juvenile.

Looks like all the hype of contracts on DLs desk awaiting signing the second after tsp were amazingly wrong - who’d have thought based on ENETs history of #### ups?. So we had traders and others believing it just getting out on a 10-20% loss to clear their position.

Not at £48k.

Neil, won't make a blind bit of difference.

It's like the last three years, seeing an RNS thinking it might be real business but remembering 99% of ENET RNSs are nothing to do with them actually doing anything with a customer.

Worth reading about kentik mentioned in the blurb. I know similar other companies provide similar software but getting close to these companies or their partners a good strategy.

Coco.

Going forward there is never 100% certainty.

So as a creditor I want to see a very certain level minimum revenue (tarana and royalties), the margin from this, that ENET have got to a position where their operating costs are in line with this (no in year pinch points) to provide a forward cash profile. Is then how the balance sheet exiting TSP flows out, assume the stock is worthless, any remaining debts paid / written off etc.

So as I stated from your earlier question "So skid how did Enet management manage to persuade all creditors to exit the TSP" thats how - from getting their opex run rate down to a level to support a very base level of business which does not include completely new customers / contracts.

Coco.

Unlike everyone here I have shown my workings and basis for assumptions.

1. A key message from DL is the monthly opex run rate.

2. The on the drip / zero haircut aligns with quarterly royalty reporting / tarana regular drops.

3. It doesn’t align to working capital being tied up in additional stock / projects - especially as ENET would not get credit from third parties

Watching.

Old enough to remember the banana company fyffes became fyffes.com.

Coco.

They demonstrated on the minimum level of business (just tarana plus small c $0.5-$1.0m royalties at x% margin), massively reduced operating costs and associated cash flow of the two. As a baseline it didn’t include any additional news everyone here thinks was ready to sign immediately after they came out of the tsp.

Sharebel.

Yes, you said in a better position than in anytime in the past two years. I pointed to their position in the last two years where investors priced in DL actually executing, both of which have fallen to pieces.

Again vague statements.

1. "enhanced its capabilities and IP". Please provide real examples, as real customers tell a different story as trials / interest etc have led them to rejecting ENET - all material customer cash is pre IPO products.

2. What is the rich news period ? No it didnt get "miilions" (as this implies $2m plus) in contracts and you simply don't understand what these represent if you think being in or out of a TSP had anything to do with it.

3. Please tell what news is coming, who from, the value and time over which it is to be used.

Sharebel.

Just looking back at my detailed notes of the PI meeting in person meeting with DL/ MR at the start of 2022 and the zoom meeting at the start of 2023 - a two year period.

At the start of 2022 DL reassured that the Indian OEM deal was all systems go / in full swing with an expected 10k units per year (a conservative $10m pa), this was the meeting when they mentioned they were working with Cisco and Juniper (which was 100% false).

At the start of 2023 MR went through his assumptions on the revenue forecast including how the substantial order backlog and new deals would be recognised, including the brilliant chinese OEM deals.

In both cases there was more cash than now to be used for working capital (and not spaffed away as it has been).

As of today ENET has effectively ZERO backlog.

Bland words of "best position / rich news" need to be backed by some evidence...when youre ready...

Https://www.msn.com/en-gb/health/nutrition/new-study-reveals-diet-link-to-pfas-forever-chemicals-in-human-body/ar-BB1iwnjP?ocid=entnewsntp&pc=U531&cvid=a8db4b4081b44f48a87e1bb7e8ad32ea&ei=22

A long time from any news here, news would be very welcome !

Sharebel.

What exactly are the fundamentals here, no waffle ?

What hard work ?

Trickey -

There are 7 figure contracts and there are 7 figure contracts.

If ENET had a $1m contract from Tarana with detail that this would be until the end of Q3 ENET should tumble 50% (however with the current /potential shareholders this would probably spike!).

If it was a royalty agreement with a prepay of $1m expected to just last 2024 for a product with no current revenue stream, this would go up 100-200% plus.

Its about the liklihood of either and waht is built into the current share price - and then the value, the customer name, for what period of time is it called off, and the expcted future orders..

Neil, less than 10% in sticky hands is not a tight share register. Also consider there are now no institutional shareholders in the 90% plus, just retail traders.

The longer the wait for the one RNS the more existing holders will sell at a lower % gain than they would have as another contract RNS does not seem imminent.

Perhaps a trading update with "interest, trials, big companies, at the finish line, no brainer products" might help, but visibility is required on the chinese contracts which appear dead in the water with c $1m of stock.

Lightbulb.

- Tech companies shouldn't be valued on assets as they are asset light but on discounted future cash.

- The issue with ENET is the lack of any backlog means cash is important for "cash out" scenarios.

- On assets. Having been lead a merry dance by MR I think the auditors will take a chop to intangibles, stock they have is very customer / contract specific and may be essentially scrap value. So potentially massive impairments for 23.

A real need for a Tarana order and time over which it is used to gain confidence for 24, I can't see new contracts ramping to any material scale in the 1-10 months left his year and q4 oneoffs on royalties will no be repeated.

Lightbulb.

There is a real difference between gross and net cash. It's a bit like saying you've got a £1m house, forgetting the £1m mortgage.

I don't believe they have ever mentioned an absolute cash number but it is nowhere near $4m (even gross).

All ENET reporting is $ not £.

The important factor to remember on AIM companies is you are putting your hard earned cash into a few individuals.

Unfortunately I have lost quite a bit here as I placed too much reliance on DLs sale of his previous company (slightly different as private) and the statements he and MR made in meetings and to other large holders on which we had placed reliance which I now realise were, let's say, completely incorrect.

I think Miton finally realised DL and MR were no longer investable and believe the terrible settlement with Bergen recognised assurances that they had been given.

I'm an investment trust man (75% plus of my SIPP and ISA), I have a few smaller company investments which have not performed that well (partly with smaller cos being out of favour) but I can see the management are competent.

Does this make ENET a buy or sell at 1p, haven't a clue. But those who have come on board recently need to look back at past RNSs / proactive interviews and see the lack of execution.

I used to run day long pipeline reviews with EMEA regional VPs and a wrap up session at the end with the EMEA DO to develop a weighted forecast. There were always names that cropped up with "in the bag / strong upside" deals which you completely discounted from a history of non performance - DL is in this bracket.

Stale / Stall ?

The appointment is not massive, she does the books.