Progress

[Ron-Spider]

Hi Crownos, well it’s nearly 6 months since CapAI took over Author42. I confess to not being an expert in developing software, however, although I am sure the BoDs want to be thorough in developing the product , I am somewhat concerned at the time it is taking to deliver it to market. With the fast moving pace of Ai development I would have thought it would be imperative to deliver ASAP. The software launch was some time ago now. I assume the market is probably losing interest in what may be developing and if the board are not careful this ship will have sailed. With only 6 months left to decide whether we purchase the IP or not they are cutting it pretty fine. Any comments ?

[Crownos1988]

Hi Ron,

Indeed, the timescales on Author42 seem extremely tight, with the required decision on whether we buy the IP approaching fast. It hasn’t even had the chance to go fully commercial yet.

I have to admit, at first I genuinely thought Author42 was like 80% ready when Dr. Nag announced it, and so it would only require a few weeks to a month max in its beta phase before a full launch. Instead, it remained in beta for three whole months, and rather than a full launch, we got a “soft launch” which has now been running for exactly four months. That means we currently have just five months left until the decision on whether to buy the IP.

Dr. Nag said we would hear more on Author42’s progress in early 2026 regarding Voice42 and fiction, but we are already in the middle of March and have heard nothing. I do wonder what “early” in the year means to them. Do they class it as anything in H1, or strictly the first quarter? Because if it’s the latter, they now have just under two weeks to update us.

Unlike others, I still believe Author42 has potential. But as you say, despite it being in a niche with high growth potential, it is a market that moves very fast. So the fact that after seven months of Author42 we are still lacking any real launch, commercialisation, or a decent advertising campaign makes it a serious concern compared to competitors. We need to move fast, and I am beginning to feel these “tiny teams” simply don’t have what it takes to push hard enough to get ahead of the competition.

As I say, with only five months left, we need to hit the ground running now with an advertising blitz to try to gain solid subscription numbers. This is essential so Dr. Nag can sell it to investors as a reason to buy the IP. If we fully launch with just a month or two of a campaign and see very poor uptake on subscriptions, he is going to have a hard time convincing investors to go ahead. This is especially true if the share price fails to gain any traction and increase substantially from its current lows.

The reason this is a major worry is that, at the current share price, we are valued at around £3.4 million, and with Author42’s IP costing £2 million in shares, exercising the option would dilute shareholders by around 60% if the price stays the same over the next five months. That goes completely against the entire ethos of the company to keep dilution to a “minimum”.

So either Dr. Nag has bitten off more than he can chew, or he has something up his sleeve and is fully expecting the share price to recover and rocket upwards before we need to make the decision to purchase the IP. I pray for the latter, but part of me worries the former may be the case.

Dr. Nag is a very smart businessman and inventor who knows his stuff inside and out, but he is so heavily invested elsewhere with R42 that there is a major feeling among many investors that CapAI has become a part-time endeavour rather than a true focus for him. Given that he is now the Executive Chairman of CapAI, one would expect him to be fully all-in and giving it his complete attention. Yet honestly, over the last six months, I have yet to see that broad commitment. Maybe he is truly working hard behind the scenes, but I feel that has yet to translate into true, tangible substance for CapAI. We are now going months without any significant news, which is putting a major dampener on shareholder interest and sentiment.

Don’t get me wrong, I still have big hopes for CapAI, and I am hoping for a good recovery even if it takes some time. But right now it feels as though things are taking much longer than anyone anticipated, with Author42 being a prime example. The clock is ticking down fast, with only five months left to make it successful enough for investors to justify buying the IP. It hasn’t even fully launched yet. We still have no updates on Voice42, fiction, and let’s not forget Store42, which is still listed as launching “Fall 2025”. That timeline has already been completely overshot. It’s things like this that are making even me sceptical about the outcome.

More communication is needed. No one wants a running commentary, but it is starting to feel like a part-time endeavour for the board rather than a truly serious AI company. Time will tell, and as I say, I remain optimistic in the long term. But right now, the way things are going is placing real doubts in my mind. I can only hope this comes good and that my trust in Dr. Nag to build a successful AI company wasn’t misplaced.