Inspire Semiconductor (INSSF) Status Update summary

Recent financing and capital structure

• Secured CAD 10 million in upfront convertible loan financing, contingent on delisting from TSXV, to fully fund operations to profitability by mid-2025.

• The loan carries a 10% annual interest, forgiven if delisting occurs, and converts to shares and warrants at CAD 0.135 per unit.

• Investor gains board representation, preemptive rights, and right of first refusal for future funding until EBITDA positive.

• Delisting from TSXV is required by January 31, 2025, or a penalty applies; shareholder vote scheduled for November 20, 2024.

• Delisting will not affect disclosure practices, but shares will become non-tradable on public markets, with private transfers still possible.

Operational and product milestones

• Thunderbird I, the first product, is now in production, marking a significant milestone for the next growth phase.

• Chip design is complete, with manufacturing resuming after funding, and design improvements made during the pause.

• Manufacturing execution for Q1 2025 is critical, with supply chain partners aligned and substrate orders initiated.

• Gained access to TSMC’s advanced 3nm node, positioning for future product generations.

• Hired key engineering talent to support test and embedded software development.

Market positioning and customer feedback

• Thunderbird accelerator offers over 20x CPU cores compared to latest x86 CPUs, enabling significant cost and energy savings for enterprise customers.

• Value proposition resonates strongly at industry events, with unique support for 64-bit floating point math and Linux compatibility.

• Customers appreciate open architecture, avoiding vendor lock-in, and rapid software adoption due to Linux support.

• Early adopter and channel relationships are in place to support rapid scaling and market entry.

• The company is focused on expanding high-performance, energy-efficient computing solutions for diverse industries using its RISC-V based Thunderbird accelerator.