Spectra7 Microsystems Inc (SEV)

[blue_skies]

steve,
you seem like a smart well connected guy?!
When you are evaluating a company, do you take into consideration(if at all) the management and a companies financial situation?

[blue_skies]

Top management in companies that are having liquidly crisis often take pay cuts, or go without their salary, as well as lending the company money.

[SEV123]

Thanks for that info. If they're putting money in, that's a very positive sign.

We have some angry shareholders(rightfully so for some) and former shareholders(rightfully so for some) that either hate seeing positive positives or don't believe positive posts like yours.

We do have some posters that have never owned, lie that they do own or simply some paid shills. Kytrader77 I believe actually held shares and was blindsided.

[SiliconValleyExec]

I'm sorry, what?

[kytrader77]

And I should have stated, if management pockets are SO deep as you say, why didn't they fund the entire PP and save shareholders a 75% share price cut?

2+2 = 1 in this case. What you say doesn't add up.

[kytrader77]

Roauf is this you?!? lol

If so, you could not have possibly have handled this raise, or lack there of, and the PR around it any worse than you have. Like, literally, the worst I've ever seen in my 30+ years of investing. Mind boggling bad.

Spectra needs new management in the worst way. Something still doesn't add up here folks and I can't put my finger on it yet but legitimate companies don't operate this way.

[GARYM1]

Imagine a raise at these levels for 4-5 million,they would likely set price at 10 cents and would require 40-50 million new shares,thus ownership of company through majority stake.
Cheap really

[GARYM1]

Kinda makes you wonder why we can't access money.
Doesn't add up

[SEV123]

Blackrock's Larry Fink Jumps On "Next AI Trade", Warning World Will Be "Short Power"
Tuesday, Apr 30, 2024 - 06:00 PM

At the start of April, we penned a lengthy report for premium subs discussing why artificial intelligence data centers, the electrification of the economy, and onshoring trends will result in a major upgrade of the nation's power grid. We followed the note up on Monday with a report titled Everyone Is Piling Into The "Next AI Trade."

Now , BlackRock Chairman and Chief Executive Larry Fink has jumped on the "Next AI Trade" theme at a World Economic Forum event on Monday.

"I do believe to properly um build out AI. We're talking about trillions of dollars of investing. So data centers today could be as much as 200 megahertz - and they're now talking about data centers being one gigawatt. That powers a city," Fink told the audience.

He pointed out that he spoke with the head of one tech company, who said their data centers currently require about 5 gigawatts of power. By 2030, the person told Fink that number could jump to 30 gigawatts.

"The amount of power that's needed to use AI has a huge impact on society," Fink said.

He then asked: "So where's that power going to come from? Are we going to take it off the grid? What does that mean for elevated energy prices?"

Fink then said the surge in power demand because of AI data centers is a "huge investment opportunity."

He warned: "The world is going to be short power - short power - and to power these data companies you cannot have this intermittent power like wind and solar."

"You need dispatchable power because they can't turn off and on these data centers," he continued.

https://www.zerohedge.com/commodities/blackrocks-larry-fink-jumps-next-ai-trade-warning-world-will-be-short-power

[CleverAces]

That was my reaction as well

[yp_1]

And we pray the news would not be about CEO stepping down.

[SiliconValleyExec]

'As of April 29, 2024, the Company owes an aggregate of $540,000 to the Director Lenders (the “Director Loans”)'

They just made these loans in the past weeks. They have deep pockets. They believe in this and will continue to fund it until such time that it grows on its own, which will begin shortly.

These are opinions.

[CleverAces]

All the info is in the management discussion and analysis. I just had a chance to skim through.

In short, execs loaned money to the company in feb and march.

In april, they got loans from 2 shareholders for $200k+ at 10% interest.

Considering execs are providing the emergency funding, this is a good sign

[Robert31]

I believe they license the use of Patents for a very attractive fee. That would legitimatize the technology and patents and provide the needed cash.

[Spectra777]

So zero unexpected news here. We await another announcement. We shall see what the deal is going to be. I can't imagine this PR having any material effect on the SP. If it dips this am I'd imagine it will go back up to its present price (or higher). Something must be happening behind the scenes along the lines of an acquisition if I were to guess. I can't imagine their patents and team going to waste.

[yp_1]

The YE results issued last minute. It says it all.

[SEV123]

Spectra7 Announces Financial Results for Year Ending December 31, 2023
https://www.spectra7.com/year-end-financials-2023

The Company previously announced that it has limited liquidity and is exploring alternatives to address the situation, including emergency funding, a restructuring of the Company’s capital, a sale of the Company, a merger or other business combination. Although focused on funding and restructuring its capital, the Company continues to work with its advisors in pursuing all alternatives. There can be no assurances that any of the explored alternatives will be successful.

[jacksonjohn]

I'm worried for LWLG now.. Here are future's portfolio in case SEV is looking to park that money from DJT
Spectra7 Microsystems Inc (SEV) 1,163
Lightwave Logic Inc (LWLG) 143
Charge Enterprises Inc (CRGEQ) 22
SavWatt USA Inc (SAVW) 379
Next Galaxy Corp. (fka NXGA)

[yp_1]

Last week of agony started…

[SEV123]

That was my thought Spectra. Something just doesn't add up after all the great news out of the conferences, especially this.

SAN JOSE, Calif., March 5, 2024 /CNW/ -- (TSXV: SEV) (OTCQB: SPVNF) Spectra7 Microsystems Inc. ("Spectra7" or the "Company"), the leader in high-performance analog semiconductors for broadband connectivity markets, such as AI networks, hyperscale data centers, and AR/VR, announces that its previously demonstrated market-leading performance of 800G Active Copper Cables ("ACCs") embedded with Spectra7 semiconductors has been confirmed by the leading North American AI hyperscale data center switch manufacturer.

"We are gratified that this significant player in the AI hyperscale data center space has confirmed the market-leading performance of our proprietary ACC semiconductor products," said Raouf Halim, CEO of Spectra7. "High speed cables are the vital arteries of AI networks. This paves the way for Spectra7 to be an important supplier to the $3 billion ACC market for hyperscale data centers.1 We expect these products to be in full commercial production and sale in the second half of this year."

Extension of Convertible Debentures

Spectra7 also announces that it has received commitments from holders (the "Consenting Holders") of the requisite 80% of outstanding principal amount of its existing $8.873 million of 14% unsecured convertible debentures (the "Debentures") to extend the maturity of the Debentures from December 31, 2024 to June 30, 2025 (the "Amendment"). As consideration for the Amendment, the Company has agreed to pay a non-convertible extension bonus at maturity to the Debenture holders equal to 1.5% of the principal outstanding on the effective date of the Amendment.

The Consenting Holders confirm that they remain committed to the execution of the Company's roadmap, and believe the extension will provide the runway to reach significant commercialization milestones

[yp_1]

I have a house that in my opinion costs 1.5m, but nobody seems to want to buy it! You get the idea…

[Spectra777]

If their patents are any good and robust enough... purchased by a large player who can monetize them in both a means of production and protection by suing those who infringe - that's their worth along with their team who can assist in rapid product rollout. For all we know management pulled out the.deal last minute as there was another, more appetizing (solid or potential) offer presented (either to their personal and/or retail investors benefit).

[GARYM1]

If it's VR/AR chip sets they are not worth much

[CleverAces]

They have about $3m of inventory. What that inventory is made up of, i dont know. But, presumably some of it can be sold to somebody

[GARYM1]

They do have other products other then 800 g

[yp_1]

Re: “but i would expect he has some vested interest in this atleast morally”. There is no morality in play when it comes to money, and we all know that.

[yp_1]

Why would one expect orders at this point in time? The qualifications are not complete yet. It takes 6 months, so we are looking at July as the earliest. And this was known when they announced the start of the qualification process in January.

[yp_1]

Why would one expect orders at this point in time? The qualifications are not complete yet. It takes 6 months, so we are looking at July as the earliest. And this was known when they announced the start of the qualification process in January.

[Robert31]

https://www.bloomberg.com/news/articles/2024-04-27/ai-boom-s-secret-winners-the-companies-expected-to-power-it?utm_source=flipboard&utm_content=topic%2Fnews

[SEV123]

I mentioned that, not sure if anyone else did as well.

It was one investor that committed and then backed out.

[CleverAces]

Someone posted earlier that Ron said that when they gave him a call

[blue_skies]

YOU DO NOT WAIT TILL YOU ARE DRIVING ON FUMES TO LOOK FOR A GAS STATION.

I agree with most of what you wrote.
So why do you think that someone pulled out?

[CleverAces]

I really dont think we are done.
I am getting the sense that management and the board never expected to be in the position where they would run out of cash. All was smooth sailing, private placement in play, then everyone got blindsided by one or maybe more investors pulling out of the private placement. The reason for that could be related to s7 or maybe not.
For the board to protect themselves, they had to issue the press release just in case this thing does go belly up. I would imagine that if they never shared the liquidity update and the company randomly went bankrupt, they may be liable as directors for breach of fiduciary duty. Imagine that press release…. Company was finally rebounding in the market and then company announces they are done?
From talking to Dave he seemed very calm and unbothered by the whole situation. Maybe thats because he came out of retirement as an interim cfo and this wont impact him personally at all… but i would expect he has some vested interest in this atleast morally

[Robert31]

https://www.thestreet.com/investing/stocks/nvidia-set-to-capture-billions-as-microsoft-google-and-meta-boost-ai-spending?utm_source=flipboard&utm_content=topic%2Ftechnology

[CleverAces]

Just some small talk and other pointed financial questions… none of which he could answer/disclose

[SEV123]

Clever, from your post, "That's about all I will share."
Was there more?

[SEV123]

Okay so provide the facts after your headline that "we are done"
Gary, I have no idea what's going to happen but you seem to know for sure.
From reading your post over the months I think you're bipolar, positive, negative, positive......
Again, I have no idea where this is going to land.

[SteveSchiets]

Charlie Munger always said ‘ you deserve what you get’

If you pleasure yourself with the suffering from others, karma will come for you.

Don’t be a bad human having the last laugh.

[SteveSchiets]

Thx cleveraces for the feedback.
I mentally took a loss here. Anything up from zero is good news. And it looks like they will close the PP next week. Not sure how much money S7 has to have in order to be ready for the second half of this year.

Fingers crossed.

[GARYM1]

We are done.
Face facts
If they had orders the answer to that question would be yes.

[SEV123]

Thanks again Clever!

[SEV123]

We don't know what's going on. Take a look at dollars Meta is spending on AI that's here but around the corner. Many commented after the release of the financials but Meta said it's coming and they need to spend.

SEV can't make them move things faster but SEV can be ready for when that time comes.

[CleverAces]

Alright, so I tried calling Ron to get some information… his cellphone was turned off.

Dave, CFO, on the other hand answered. As expected he wasnt able to share much information.

Some questions I asked that I will share with you all -

I asked him what their current cash position is. He said that as of the last press release they had a little over 2 weeks in the bank. I thus got the impression that their statement was conservative in the press release, so i dont think it will be lights off on Monday.

I asked when we can expect news regarding cash position / private placement. He estimates within the next week.

I asked if they have since received any orders that would help with their liquidity… he wasnt able to comment.

I asked if management and the board still has a commitment to continue operating this company into the future.. his answer was a resounding yes.

Thats about all I will share.

He ended the call with “I hope to share positive news with you soon”

Im sure that will send many into a tailspin

[yp_1]

Correct. And this will be the main problem for a while, despite what the cheerleaders of the board tell you. 25 gbps is still sufficient for most applications.

[CleverAces]

Not yet. They are too ahead of the market

[GARYM1]

Only if someone orders them,doesn't appear to have any takers.

[SEV123]

“Embedded with Spectra7's cutting-edge GC1122 chips, Volex's QSFP-DD High Speed #CableAssemblies soared past industry standards, delivering low pre-FEC bit error rates.”

Gotta be worth something.

[SEV123]

Thanks for update.

It is California after all and it is 3 hours behind.

[jacksonjohn]

Sadly SEV has every one on ignore except future and future is back to searching for the next SayWhatt?

[CleverAces]

A friend of mine called the CFO to see what is going on. CFO told him its management intention to continue the business and that they plan on getting financing whether its through the private placement, which is still in play, or by other means.

Friend also mentioned that the CFO sounded like he was sitting at home on his couch…