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Bid I think that is the point of working with Fiberhome. The Ethernity IP is protected by patent. However I expect to see licensing deals as part of short term funding. Allowing third parties access to the tech to reproduce for royalties. The firmware and application cascades will be controlled by Ethernity.

It's important to note that the UPF requires the ACEnic-100 or multiple ACEnic-100 to function depending on the load. These cards can run on any commercial off the shelf server and any third party UPF. However Ethernity has the industry leading infinitely scalable UPF ready to package with their ACEnic-100. These are several thousand dollars a unit. The requirement in China will be many millions of units as they are high density low reach in urban environments.
The UPF is the gateway to the edge, the key part to make it all work. There are others ready to go but most are tied to vendors, Ethernity has remained available with a high degree of flexibility. Third party arrangements like Fiberhome is how Ethernity will come to market. Without Fiberhome Ethernity would not have UPF under test by the major tender winners for China 5G.

"ACE-NIC100 selected by FiberHome Telecommunication Technologies for vBNG (virtual broadband network gateway) offload; now refocused for 5G User Plane Functionality (UPF) to be delivered for testing by Chinese operators during Q4 2020"
This is really interesting the vBRAS is a very specific function which now has been refocused to delivering UPF which appears to have been adopted by several of the large players. The same large players that took the bulk of the recent 5G tenders. This is the kind of mass deployment Ethernity need to put some volumes in the sales. As we know testing and selection was pencilled for late this year. That appears to be loosely holding the good. Mass deployment next year. Certainly mass deployment will last 10 years so a long term deal.

Bid that's exactly right. This is nice work and I suspect that we'll see a universal avionics solution from Ethernity soon. However this is not the main business which is mass deployment of ACEnic-100 with various add on products from the suite available. The great thing is that the ACEnic-100 is hugely versatile and can be used with any existing servers and integrated in any vendor package.
Many will take this up.

Yes I believe so. It is the reason why they need short term finance Sept-Dec this year.

https://www.bangkokpost.com/tech/1942252/huawei-controversy-opens-field-for-5g-challengers
The last couple of paragraphs are the opportunity for Ethernity

I have held inside once before in a AIM listed company and I didn't post. I watched people make assumptions and suggestions that I knew weren't correct but said nothing. I don't want to be in that position again. I Kew that there was going to be a placing in that share at 1p I bought I think just £25k in the placing. The share price was something like 1.6p. I couldn't sell any of my existing holding. The story had a Happy ending and we all lived happily ever after.

I think that this is the difference in view, calling it the crunch point. I don't think that it's a crunch point at all, they have said "the Company will need to secure additional short term funding in the latter half of H2 2020 either via short term finance arrangements or an additional issue of equity"
That to me doesn't say to me that they have a do or die moment looming requiring anyone to panic or hold their breath. It tells me that they have options and will take the decision between September and December. I also know that lots can happen between now and then.
They have cash and a facility to advance pending payments, they disclosed those payments are about $2m. They are not in any danger and I think that they will pick their time and method carefully.
I have contacted Ethernity and asked if they raise money if I can be part of that without moving inside as I will have to stop posting here.

So now we know that they won't be funding until at least September can the market stop panicking about it.

Every forward looking statement has a cautionary coverall. I would be surprised if you can find one without that. Fact is that the momentum is not in Ethernity hands and never has been

Missed this first time around.
"We have taken the decision to defer other technology developments, assigning our resources to focus on the ACE-NIC FPGA SmartNIC product. Once this has created the anticipated significant business and revenue streams, the Company will then revert to completing the developments of other value-add products. Furthermore, in order to ensure that our progress on the 5G offering is maintained and funded, the Company intends offering licensing deals on its IP of its PON and UEP technology.

Ethernity's large scale revenue target is the volume production and sale of cards directly to customers for integration with their virtualised networking function software, that then can run on any commercialised off the shelf (COTS) server"

Licensing deal on intellectual property PON and UEP. I wonder if that is the answer to the funding issue.

Ethernity are market leaders and I expect them to be involved in the majority of the deployments in some capacity. There will be many solutions but all will use fpga. ACE-NIC100's will become the industry standard I know that already. Ethernity are well ahead of the game and assuming the kit passes trial with the big three in China they will adopt probably through Fiberhome in a deal.
The valuation is based on macro events like this placing, lack of knowledge and focus if investors, delays, potential further delays, the AIM etc etc.
I see issues for a takeover, I see further partnerships and that may be linked to some short term funding.

I don't see the funding as an issue, they will have many options from the industry and Israel. However I am thankful for the cheap shares.

the Company will need to secure additional short term funding in the latter half of H2 2020 either via short term finance arrangements or an additional issue of equity.

Lots of positives, some negatives or changes in focus. It's that kind of Industry. They seem in no rush to fundraise and it seems that business is as normal. The company is focusing R&D on the big open goal directly in front and this seems to be the right plan. That goal is becoming real now and the big players are testing Ethernity products. The market for the next 5 years is huge and it is only going to get bigger. Ethernity will grab the lion share as they have the best products and have cultivated the in market relationships.
Cash and recurrent revenues will be in the 100's millions. The prize is just beyond current reach but is coming our way, Ethernity is a winner and all you need to do is wait now. Yes short term it can be rough but this is going our way. If I were to give advice by what you can afford and don't sell even one share.

"In February 2020 we finalised our agreement with TietoEVRY to create a joint offering of an open source concept based on VPP for 5G User Plane Functionality (UPF) to accelerate 5G packet processing at the network edge. The intention is to deliver to customers an end-to-end open UPF platform that includes the UPF control utilising the VPP open source and the UPF data plane running and offloaded by the ACE-NIC100. Following completion of the enablement with the VPP we have delivered the offering for Lab testing to two operators and to two strategic partners. Furthermore major go-to-market activities are handled together with TietoEVRY in China"

"June 2019 our ACE-NIC100 was selected by FiberHome Telecommunication Technologies for implementation within their Broadband Network Gateway (BNG) and promotion to FiberHome's core Chinese telecom customers. With the refocus of Chinese operators on 5G, the delivery of this project has been re-assigned to one of FibreHomes' group companies, with the Ethernity 5G UPF accelerated performance solution intended for lab testing by the largest Chinese operators during Q4 2020.

The increased drive from the Chinese markets, focused on building a 5G mobile network based on NFV, was the sign we have been waiting for over the last two years. It is based around the building of the edge compute virtualised network together with a need for extensive performance, for which Ethernity technology is the best fit, providing greater value added solutions that are appreciated and demanded by our customers. We have therefore taken the strategic decision to focus on porting the ENET flow processing features on the ACE-NIC100 to accelerate performance of the 5G UPF data plane. This has resulted in multiple engagements and design wins for our ACE-NIC100 during the first half of 2020 with the potential onward conversion to multiple delivery contracts during H2 2020 and into 2021"

"Our estimated total addressable market for the next five years for NIC cards required for acceleration of 5G UPF is $1.2Bn, which the Ethernity ACE-NIC product family can address. This is based on the assumptions that a 100Gbps performance will serve 10,000 5G users, and with the market analysis (depicted in the Annual Report) that forecasts a total of 3 billion users by 2025. Within this we anticipate a market need for 300,000 FACs for 5G UPF over the next 5 years, commencing in 2021 with growth ramping up exponentially from 2022.

As a result of the market's intentions for 5G NFV based deployment, and the growing engagements with customers for our ACE-NIC family that embeds a Router-on-NIC implementation, the Company has continued and is now focussing its efforts on the ACE-NIC offering for acceleration of the 5G NFV based solution, deferring other activities, with the main goal being to capture a greater market share of the upcoming 5G market"

Ethernity are market leaders here with direct engagement in the first mass market of China. Three of the major providers are going down the route Ethernity are focused. The world will follow and Ethernity will be the major provider. Ethernity will expand their offering to virtualise other functions. The market will be split between supply of hardware (card) and the code, firmware and software. Ethernity do this all in house at huge margin close to 100%.

the Company will need to secure additional short term funding in the latter half of H2 2020 either via short term finance arrangements or an additional issue of equity.

Doesn't seem to be a hurry for them.

"ACE-NIC100 selected by FiberHome Telecommunication Technologies for vBNG (virtual broadband network gateway) offload; now refocused for 5G User Plane Functionality (UPF) to be delivered for testing by Chinese operators during Q4 2020"

"June 2020 - order from South Asian service provider planning to deliver their own UPF control and offload, with Ethernity's ACE-NIC, the UPF data plane"

"Direct relationship in place with three major telecom service providers in China - China Mobile, China Telecom and China Unicom - each either planning to use an FPGA SmartNIC offering for 5G UPF for integrating their own open UPF software to be offloaded by the ACE-NIC"

David Levi, Chief Executive, said "I am encouraged by the fact that, finally, the telecom cloud and NFV market combined with the data usage requirements of 5G has been realised and, despite the uncertainty resulting from the COVID-19 pandemic, is now positioning towards mass deployment, allowing the Company to fulfil its goal. I am hopeful that the growing momentum around our 5G UPF acceleration solution will lead to the achievement of large scale growth in the coming years."

https://www.fiercewireless.com/tech/nokia-unveils-5g-cloud-ran-giving-o-ran-a-push
Nokia accepting that virtual functions are how it is going to be. Note that the platform is not closed to all vendors. The days of boxes with brand names on the side are over. Ethernity cards could easily be in this kit and this opens up the idea of multi vendor solutions picking the best aspects of each.
It is great to be invested in a market leader that saw this two or three years ago. It is going to happen.