Unith is continuing with its growth into the area of Digital Humans and they are currently rolling out a DIY service for existing customers as a Beta platform, prior to rolling out to a wider audience.

At the beginning of CY 2023 they laid out a development and growth map and achieved all the stated milestones and there is generally a lot of confidence in Management.

To aid this scale up they have been investing in new staff and over the past two quarters had around 10 FTEs and 3 intern positions advertised.

Unith have around $4M revenue generated by the Subscription Division and advised that between Feb and October 2023 increased the subscription rate from less than 20,000 to 500,000 paying subscribers. These subscription offers have a lead time of around 6 months to payment and so this should start to impact revenues this quarter more than last quarter.

My assumption is that the subscribers are being held at around the 500,000 level in order to preserve cash and that the growth rate did not continue at the same rate.

Pricing for these apps is in the range 2.99 - 19.99 Euros per month, depending on the launch country and the app. Whilst the revenue flowing to Unith is unknown, even $1/month from each subscriber would be a significant step up in revenues.

Cash on hand should be around $1.8-2.0M, although next week's quarterly will confirm how close they are to a next capital raising.

Additionally Unith have investments in three other businesses, which were valued at $4.33M in the last Annual Report, it is likely they are higher by now. They have no debt.

Over the past 12 months the share price has started to slide and there has been an increase in negative posting and unusual price activity and interested parties have approached the Board with proposals that have been rejected.

Last week, things came to a head with the delivery of S203D and s249D notices.

I am not going to expand on the parties involved, their affiliations or the reasons that they want what Unith has, but suffice to say Unith has an EV of around 2.7 cents and yet is currently trading at 1.7 cents or so, and it seems to be undervalued. (Subject to assets valuation and cash on hand)

At less than 2 cents this will be no good for your Strawman portfolio, but there is something interesting going on that may be of value to some.

The business continued with its restructure, recently won a 2-year, 3 x Talking Head licence with one of the Big 5 tech companies (Google, Amazon, FB etc), integrated ChatGPT into their platform and completed a rebranding of the business from Crowd Media to Unith.

With a recent capital raising under their belt are now fully funded and set to deliver on the launch of the Talking Heads platform by the end of 2023.

The recent investor briefing video shared today is HERE

The investor presentation slideset is HERE

The Pitt Street Analyst report is HERE

The new website at Unith.ai should be available this week, so there is a lot of anticipation how this will look.

There is lots to like here and a lot of opportunity for this technology to improve the way business interact with consumers or customer. Call centres, sales agents, staff onboarding, complaints handling systems are all mentioned as markets looking for this type of solution.

One important point that is often missed, is that these Talking Heads can converse in real time using a closed dataset of information and they do not require huge processing power, hence cheap cost.

They are not pre-recorded videos or speaking avatars as seen in training videos and consequently they do not appear as lifelike.

Currently there is a trade off between appearance and functionality and in reality the Market is less concerned about the physical appearance but rather that they can converse at a reasonable cost.

The purple row in the Roadmap indicates timing for improving the Human Likeness.

I havent dug deep but this seems to me on the surface to have been a well completed placement raising $4.5M with a SPP to raise up to $0.5M.

Placement

Tranche 1 of the Placement comprises 136,363,636 UNT shares offered at $0.033 per share with attaching listed Options (ASX: UNTO) on a 1:1 basis exercisable at $0.06 expiring 25 July 2024 with approx. 45 million of the Options included within the Company's Placement capacity. 

Tranche 2 comprises approx. 90 million UNTO Options and 12.5 million broker Options. Tranche 2 is subject to shareholder approval at a General Meeting on 31 March 2023. 

Share Purchase Plan (SPP)

Eligible shareholders of UNT shares will be offered an opportunity to purchase up to $30,000 of New Shares at an Offer Price of $0.033 via a Share Purchase Plan. The SPP will seek to raise up to a maximum amount of $500,000. If total demand for the SPP exceeds $500,000 then the Board reserves the right to close the SPP early and scale back applications. Oversubscriptions will be handled by Board discretion. No brokerage or commissions are payable in respect of subscribing for shares under the SPP.

With UNITH having operated on a lean budget for the past three years while eliminating debt from our balance sheet, we have an excellent opportunity to capitalise on interest in our Talking Head platform where funds raised will be applied towards: 

• Develop ChatGPT-driven conversational AI features into the Talking Head platform
• Adding the features will improve the software efficiency, both on the end user side and will remove friction on the client side, allowing easy onboarding on the platform.
• Accelerate development of the Talking Head platform, including sizing up the development team
• Increase sales capacity with additional roles flagged for the commercial team in line with scalability of the Talking Head platform 
• Drive sales & marketing initiatives with allocated KPI-focused budgets to capitalise on rising B2B interest in conversational AI and generative AI business solutions
• General working capital and costs of the Placement

After the price running up 100% in the last month, a trading halt was announced today for a capital raise, hope they're doing it at the right price.

Disc: Held

From the recent September 2022 Quarterly Activities/Appendix 4C Cash Flow Report that anyone not following the quarterlies would not have seen...

• A Tier 1 Big Five tech company (which cannot be named as per confidentiality clauses) has purchased 3 licenses for Crowd Media’s Talking Head platform for 2 years to provide them with digital avatars. Each will be powered by conversational AI for information delivery. The digital avatars will be designed in collaboration with the Tier 1 client and be programmed with conversational AI functionalities to support daily operations. This initial 2-year license is a cornerstone in Crowd’s relationship with the company and opens further commercial opportunities. The subscription is expandable to significantly material figures over time with the licensing of more digital avatars and deep-tech applications.
• Cash at 30 September 2022 was $2.57 million
• Net cash flow from operating activities was (positive) $36K

_____________________________________

Market Cap at the current price (quite a rise today) of 0.34 with 718,292,369 FPO shares is 24.45m, though fully diluted (taking into consideration 265.9m performance rights & options that might have a chance of being in the money) is closer to 33.4m if I am not mistaken in my calculations.

Not for the faint-hearted IMHO, but the company seems to be at a potential inflection point in terms of commercialization...

Disc: I hold a small position IRL, acquired recently, and am willing to watch the next few quarters for confirmation (or lack thereof) that this has a chance of going somewhere.

*EDIT* thanks to @mmff *

Brief notes from the June Quarter Activities Report...I'm confused by the numbers.

Pos operating cash flow "for FY22" but only $20k vs -$97k from previous year (I got this wrong and forgot to mention the "-" )

Operating cash flow for quarter was only $4,000....yep, $4k...

Cash in bank of $2.23m at 30 June but looks like that was all from cap raises, not business profits.

Lots of talk about revenue instead of profit...pointing out that they are doing soft launches before scaling (ok)

Partnerships and programs progressing smoothly apparently

Supposedly investing into IP.

$80k paid to non-exec directors

Looks like another cap raise is coming, aiming for another $600k.

Overall, pretty bland but not necessarily in a good-boring way.

Disc. Held IRL but tiny holding really just looking for an advantageous trade out of it.

HI tbra97,

I tried to DM ( Direct Message) you, but you are not set up for it.

I too follow CM8 and have a small holding. The operating cash flow was $0.02M up from -$0.97M.aka almost up $1.00M.

Baby steps, but at least they are going forward,

I will be hanging on for a longer term

Cheers

mmff

This week Crowd Media announced finalisation of two new binding Heads of Agreements that contribute to their strategic vision.

Conversational AI for Media Search - SourceFlare Partnership

Crowd Media and SourceFlare have entered into a Binding Heads of Agreement (HOA) to integrate Crowd's technology into the SourceFlare marketing platform to optimize customer acquisition funnels and lead generation.

SourceFlare will waive licensing fees to Crowd Media for access to the SourceFlare platform which applies machine learning and data insights to generate customer leads through search engines and social media. The platform will be utilised by Crowd’s Mobile Subscription business for customer acquisition. 

A monthly fee of USD $5,000 per month will be payable to Crowd Media for access for ongoing service operation and support.

By extracting data insights from SourceFlare and integrating them with conversational AI, we look forward to generating content that will resonate with consumers and showcase the value of conversational AI in the field of customer engagement and acquisition.

Following delivery of the Proof of Concept, a Scale-Up phase will involve rollout of many different digital avatars that can be applied to unique marketing campaigns in multiple languages where each digital avatar will be interactive with internet users and powered by Crowd Media’s artificial intelligence.

Crowd Media are now featured in the srcflare website list of Partners, alongside

• Tonic
• Sedo
• Facebook
• Amazon
• Tik Tok
• Outbrain
• mgid
• revcontent
• Playworks

Which is amazing considering our Mcap is around $23M. But this sort of publicity and mixing with these larger brands is going to get Crowd noticed eventually.

The second announced partnership is with Impssble. Website here.

Interactive NFT Projects - Impssbl Partnership

In a separate agreement, Crowd Media and IMPSSBL Corporation have entered into a Binding HOA to integrate Crowd’s Talking Head technology into the NFT marketplace as a series of interactive Non-Fungible Tokens.

Impssbl will develop a ‘bridge’ that will convert an AI generated Talking Head (aka a digital avatar) into NFT artwork. Impssbl will then lead the NFT creation process, and then execute marketing and sales of the created series which will be integrated with Crowd's AI to be a world-first collection of interactive NFTs.

Phase 1 is anticipated to be completed before the end of September 2022. Marketing initiatives will then be rolled out by Impssbl with details for the first collection’s mint expected to be confirmed in the December quarter.

Profits generated from the first and future NFT series will be shared with Impssbl to be allocated 70% and Crowd Media to be allocated 30%, after expenses for technology development and marketing spend are recouped.

With these NFTs, collectors are not getting a picture, they will be getting an interaction. And in the future as we scale the project up utilising Crowd’s Talking Head platform, collectors will be able to acquire an interaction with a celebrity avatar that is personally made for them.

This is just one of the opportunities Crowd has identified as an additional opportunity to monetize Crowd's Talking Head platform beyond the B2B conversational AI solutions we have been developing.

Impssbl have now been granted access to the backend of the Talking Head platform so we look forward to seeing a first Proof of Concept.

IMPSSBL is headed by ex-Google, Head of AGT - Startups and VC Growth, Alessandro Botteon

Each of these agreements is setting them up to be able to deliver on the overall strategic plan for the business and the timeframe is relatively short for delivery.

Given that the business is running essentially cash-flow neutral ie the Subscription Division is funding the research and development, then there is little downside at current prices.

Based upon the delivery so far and the projects in the pipeline there seems more upside at this time.

The Subscription Division of Crowd Media is called Track Concepts and it is this profitable Division that is financing the development of the Talking Heads and allowing the company to operate its Research and Development activities essentially for nothing.

Crowd published a timeline of activities to year end and Track Concepts has already produced and is scaling the sales of the Horoscope App mentioned before and in addition they are now adding Childrens Stories to the offering.

The link to the LinkedIn post is here, where the short video should be viewable (fingers crossed)

Crowd have previously shown a Beta airline check-in application in one of their presentations and there has been speculation that this could have been created for KLM as they are based in Holland.

In terms of financials, Crowd have around $1M in cash, as well as another ~$0.3M due to them this month from a loan made to a third party as part of a business divestment.

As they are cash neutral for the quarter most of the reduction in cash was accounted for by increasing the investment in Aflorythmic. (The original $1M investment is now valued at $2M) and an investment in Decentraland billboard for advertising purposes.

It is nice to see them executing on their plan and to be honest it pays to take note of what their socials are doing as not much is coming out via ASX, although they do have a newsletter that can be subscribed to.

The current Chairman, Steven Schapera has resigned due to other committments and will leave at the end of the month.

Hopefully a replacement will bring along some new investors and some more awareness to this rapidly changing area of technology.

• CM8.ax
• SOI 670M
• Mcap $22M
• Cash $1.7M

Crowd Media just published their investor webinar from earlier this week highlighting their progress and potential new opportunities in the pipeline.

Subsequent to the webinar the share price has fallen and a number of holders looking for a quick profit took a bath and vented their wrath on the way out.

Unfortunately, comments such as, "I can't wait a month for them to deliver this, there are much better opportunities elsewhere" seem to be the norm these days, and some people have got used to the idea that the stock market is a route to easy money. It seems that investing is just for old people.

As a tech company the investment into the Talking Heads technology is being funded by the profitable Subscription division, who have just launched the world's first Astrologer that talks directly to you.

Whilst Astrology may not be everyone's ideal service, the reality is that this is a niche that subscribers are willing to pay for and it is a large underserved, fragmented market.

At the same time the company will be renewing its existing stable of Apps and upgrading them to the Talking Heads concept and driving the acquisition of new subscribers. The services are available in Europe and the Middle East, not in Australia.

The Crowd website ably describes how the business was turned around over the past couple of years and has demonstrations of the Talking Heads technology.

Of note is the first commercialisation of the Digital Doctor with Pangea Med in South Africa, which allows patients' pre and post operatively to get approved medical advice via a Talking Head.

If you are unfamiliar with the business then this is a good starting point.

Otherwise here is the Investor Webinar

Take note of the slide on Strategic Partnerships to research more and keep an eye out for the Quarterly due at the end of the month. As a minimum, investors will be looking for the cashflow neutral position to have been maintained or an increased positive number, as well as an increase in Subscribers for the profitable subscription division.

CM8.ax

SOI 670M

Mcap 26.8M

Debt $0

After the release of the latest Quarterly reporting I want to update the community about the progress that Crowd Media have made in the past 6 months or so.

What do Crowd Media do?

Before we talk about what Crowd do, let's revisit some history and look at what they used to do

Basically, in 2019 Crowd Media came to the attention of a European investment group because they had developed an artificial intelligence application that could answer customer questions in multiple languages. 

This intellectual property was the reason that the Group invested in Crowd and aimed to establish the concept of Talking Heads, with the idea of entering the Influencer Marketing market and selling products online via clones of Influencers.

By buying into Crowd by the way of a Convertible Note, they believed that the current IP was worth $10M and that they had saved a ton of time in development stages.

After the initial investment Crowd formed partnerships with other businesses to accelerate the development of the Technology. 

Of the remaining partners, there is Uneeq in New Zealand and Aflorythmic in Europe.

In the case of Aflorythmic in the UK Crowd also took a strategic GBP 1 million investment, to fund engineers working on Crowds agenda.

It has not been plain sailing for Crowd, there have been some headwinds along the way as Covid created new challenges by increasing online marketing costs, as everyone went online and the price of ads increased significantly.

I consider this to be a turnaround scenario, not unusual in startups, whereby management have had to modify the initial growth thesis and adapt to changing circumstances.

Where are we now? 

Well, two years on from the initial investment Crowd has gone from a loss making enterprise to being cash flow positive for the quarter. Non-profitable revenues have been trimmed and staff reorganised. Unused office space has been leased out.

These revenues are coming from the Subscription Division and are now paying for the development of the Talking Heads.

In developing the concept of a Talking Head, Crowd have faced the challenges of how to make the Head look realistic, the speed at which new heads can be created and the server load caused by multiple users at one time and not forgetting the actual speech being realistic.

Like any new technology there is still room for improvement, but as part of the latest Quarterly, Crowd released three videos to demonstrate their technology and a new partnership with PangeaMed providing patient support Talking Heads in a medical environment.

Crowd and Pangea Partnership video

Digital Doctor Demo - Healthcare

https://talk.crowdmedia.com/demo2/?head_id=patient&org_id=pangea

Gustave Eiffel Demo - Education 

https://talk.crowdmedia.com/demo2/?head_id=eiffel&org_id=cm8

The mobile subscription division has primarily been funding the development of the Talking Head platform but plans are now in place to accelerate its commercial value with new verticals that will include integration of our conversational AI in the gaming/entertainment space. 

Crowd has already purchased a digital billboard in Centralland and with the increasing interest in the Metaverse, it expects to be playing a part as this new technology accelerates. 

Over the coming years there will likely be huge opportunities for players in the digital Metaverse and comparisons have been made between Crowd and Animoca Brands that is now worth $5bn, whereas two years back they were worth $200M or so on the ASX.

My investment thesis is that, Crowd are not losing money and they are developing technology in a space that is becoming more important, so I see more upside than downside at this time.

The Metaverse and NFTs are a whole new technology that Crowd is well placed to take advantage of over the coming years.

Crowd have cut their costs and are operating around the breakeven level as they develop their AI technology in the conversational commerce space.

In the last couple of months they have engaged two key positions in the team.

Idan Schmorak as CEO and Sytze Voulon as MD and next Tuesday 30 November they have an investors briefing to discuss progress on the talking heads technology.

Now it has already been announced that they have the Medihealth talking heads contract about to be signed in South Africa, but there seems to be more to the story.

On Friday the stock surged 25% intraday on no news and a statement from the company confirmed that.

However a lot of the talk was about how Crowd could benefit in this whole interest in the Metaverse space. Not something I had considered, but an article by Stockhead had put this forward.

So far the company has been very coy in sharing progress details as they cite "not letting competitors know what they are up to". I don't think they are far from letting out the details of progress and this may give them a rerating.

At around a $24M Mcap this could easily be 3x this level and not be overvalued.

I hold this stock and I am very interested in what direction they decide to go. Metaverse doesn't mean much to me, but a lot of people seem to see this as a big opportunity.

$2.7M Improvement in underlying EBITDA and Year 1 milestone achieved