BRN Discussion Ongoing

[TheFunkMachine]

Megachips are selling our IP. If they sold our IP, I doubt we will know who to

Good point. Probably what is going on behind the scene.

 

[Fact Finder]

Megachips are selling our IP. If they sold our IP, I doubt we will know who to

This is correct.

Based on past releases about $2 million OF the $4.8 million is unexplained and attributable predominately to licence fees.

As $2 million is a substantial amount if it has arisen from a licence/s for AKIDA technology directly entered by Brainchip with a customer/s there is no NDA known to man that would sideline the obligation of Brainchip to make a price sensitive announcement on the ASX. There has been no announcement ask Rocket if you want confirmation of this fact.

Logic therefore suggests that MegaChips is the most likely source of this additional licence fee or fees as its agreement allowed for it to sell licences of the AKIDA IP.

The unknown is how many licences and who are the customers.

We know Renesas paid around $500,000 to licence 2 nodes of AKIDA IP.

We know MegaChips paid somewhere from $1.5 million to $2 million for a full AKD1000 IP licence.

As AKIDA IP is scalable in this fashion then the $2 million could be four (4x) sales of $500,000 or one (1x) sale of $2 million.

However we need to remember MegaChips is providing all the resources to achieve the sale and service the customers so they must be receiving a fee or a percentage of each licence they sell. We have not been given the details of this financial arrangement.

So if they are receiving fifty percent of the fee to cover their services and remitting the balance to Brainchip then the potential customer payments remitted rise to eight x $250,000 or two x $1 million or other combinations thereof.

These numbers are based on logic and fact nothing more but in my opinion need to be considered seriously in assessing the potential significance of this report.

My opinion only DYOR
FF

AKIDA BALLISTA

 

[Fullmoonfever]

Significant Events After The Balance Sheet Date (pg 3)

... In August 2022, the Company acquired the rights to patents and patent applications that were filed in 2016 by CERCO (Brain and Cognition Research Center), a pre-eminent public research lab based in Toulouse, France. These patents were licensed exclusively to BrainChip in March 2017. ...


Continuing to build that protective moat.

@Terroni2105

Very nice find and I consider that quite telling and substantial imo.

I was checking in on the Megachips site and searching for any vendor / supplier lists on google that may contain Megachips to see if can find anyone they may supply to as that would be a nice insight into where Akida is being placed eg industry use.

Anyway, overall a very positive report today, regardless of SP currently and Edge Impulse webinar should also be positive I suspect.

With Megachips and Cerco (as you highlighted) something I found interesting that I hadn't really looked into previously. Fixated more on sensors etc and this additional function ties in very well with the Telecoms industry I suspect.

Products | MegaChips Corporation

We provide strategic solutions to solve your problems that range from ASIC to ASSP and module products leveraging our analog and digital technology.

megachips.com

This led me to the following recent paper (attached) which doesn't mention Akida however given relationships would be fair to suspect Akida utilised imo.

So, further to some posts by @uiux and @TECH (I think from memory) on the upcoming Patent Grant (Ann to confirm be nice) we can see the potential use overlap imo. Given packets of info are the mainstay of net / telecom traffic, these are also noted within the Secure Voice Comms System as well as the above paper outlining use of SNN (presume Akida) to classify said encrypted packets .

 

[alwaysgreen]

This is correct.

Based on past releases about $2 million OF the $4.8 million is unexplained and attributable predominately to licence fees.

As $2 million is a substantial amount if it has arisen from a licence/s for AKIDA technology directly entered by Brainchip with a customer/s there is no NDA known to man that would sideline the obligation of Brainchip to make a price sensitive announcement on the ASX. There has been no announcement ask Rocket if you want confirmation of this fact.

Logic therefore suggests that MegaChips is the most likely source of this additional licence fee or fees as its agreement allowed for it to sell licences of the AKIDA IP.

The unknown is how many licences and who are the customers.

We know Renesas paid around $500,000 to licence 2 nodes of AKIDA IP.

We know Renesas paid somewhere from $1.5 million to $2 million for a full AKD1000 IP licence.

As AKIDA IP is scalable in this fashion then the $2 million could be four (4x) sales of $500,000 or one (1x) sale of $2 million.

However we need to remember MegaChips is providing all the resources to achieve the sale and service the customers so they must be receiving a fee or a percentage of each licence they sell. We have not been given the details of this financial arrangement.

So if they are receiving fifty percent of the fee to cover their services and remitting the balance to Brainchip then the potential customer payments remitted rise to eight x $250,000 or two x $1 million or other combinations thereof.

These numbers are based on logic and fact nothing more but in my opinion need to be considered seriously in assessing the potential significance of this report.

My opinion only DYOR
FF

AKIDA BALLISTA

So we need to start digging with Megachips.

Please be Nintendo!

 

[Learning]

think thats just half the muppets on here buying an akida pci board for 500 buks then trying to figure out what to do with it, then just using it as a trophy to show the kids in 10 years time when brainchip shares are at about 50 buks....lol

Hi Xhosa12345,

Not sure I can agrees with that opinion. Why used the term "muppets".
I was one of the purchaser of the Akida board. And yes I haven't got plans to used it for project.

However, the reason for my purchase of $800 Aud or $500 Usd, was in support of Brainchip for their first commercial availability neuromorphic chip. It's the first to market.

So nothing wrong with owning a part of history.

Learning.

 

[uiux]

If I understood what I read correctly, this patent describes a system by which a device can learn to distinguish one person's voice over another (thus the secure portion of it). Additionally, it describes how other systems learn that person's voice from the first system that was trained, so they don't require their own training.

Think of something like your car learning to unlock the doors based on your command and ignoring everyone else's, while your refrigerator, dishwasher, clothes washer, and various home automation systems learn to respond to your commands (and only your commands) after having learned them from your car.

this is a good explanation



When you read the patent citations on:

US10157629B2 - Low power neuromorphic voice activation system and method - Google Patents

The present invention provides a system and method for controlling a device by recognizing voice commands through a spiking neural network. The system comprises a spiking neural adaptive processor receiving an input stream that is being forwarded from a microphone, a decimation filter and then...

patents.google.com

You can see these two in the list:

US20150106085A1 *2013-10-112015-04-16 Apple Inc. Speech recognition wake-up of a handheld portable electronic device
US9721566B2 *2015-03-082017-08-01 Apple Inc. Competing devices responding to voice triggers


If you were looking at two patents to compare, we have both of ours:

US20190188600A1 - Secure Voice Communications System - Google Patents

Disclosed herein are system and method embodiments for establishing secure communication with a remote artificial intelligent device. An embodiment operates by capturing an auditory signal from an auditory source. The embodiment coverts the auditory signal into a plurality of pulses having a...

patents.google.com

Secure Voice Communications System

US10157629B2 - Low power neuromorphic voice activation system and method - Google Patents

The present invention provides a system and method for controlling a device by recognizing voice commands through a spiking neural network. The system comprises a spiking neural adaptive processor receiving an input stream that is being forwarded from a microphone, a decimation filter and then...

patents.google.com

Low power neuromorphic voice activation system and method

 

[skutza]

As of the start of this year when we burst out of the blocks, I decided on a 5 year plan. That plan is to not buy or sell any BRN shares. I am happy with the % of BRN in my Folio, best to stick with the plan. So the 1/2 yearly to me is almost exactly as I'd hoped, confirming companies are testing and finding that BRN has a real product. Sorry to those who said otherwise, notice they've all now changed their narrative to revenue and MC, overpriced lol. They will soon run out of ideas, because here are the numbers that are important. 529% growth. Sorry non holders and shorters, things are now confirmed, it's only now a matter of time, play with the BRN SP while you can, but those that play with Fire get burnt. So if the next revenue comes in at +10% from here $5.3 mill. +50% $7.2 mill. +100% %9.6 mill. And if we are +529% in the next 2 years (not 1/2 year) $30.1 mill. Who knows what growth lies ahead. But holding for the next 5 years and then deciding how many to hold for divi's well that's a problem I am looking forward to. Peace out chippers, life is good.

 

[Xhosa12345]

Hi Xhosa12345,

Not sure I can agrees with that opinion. Why used the term "muppets".
I was one of the purchaser of the Akida board. And yes I haven't got plans to used it for project.

However, the reason for my purchase of $800 Aud or $500 Usd, was in support of Brainchip for their first commercial availability neuromorphic chip. It's the first to market.

So nothing wrong with owning a part of history.

Learning.

a term of endearment, no offence intended - ill probably be looking back myself in 10 years wishing i had bought one - as i said, when the SP is $50 buks

 

[Steve10]

Great to see some revenue in report.

Macro wise appears USD finally starting to soften. Hopefully, keeps going down so market can rally.



108.500 -0.481 -0.44%
06:59:00 - Closed. Currency in USD ( Disclaimer )

• Prev. Close: 108.495
• Open: 108.933
• Day's Range: 107.990 - 109.205

USD is relentless rising again. Hope it doesn't go to 2002 peak of $120. Markets will be cooked like dotcom.

 

[MaxwellAnne]

I think it's great to read about Fact Finder again.

Regarding the comments about a dependency on his comments and which affects your own invest:
I became aware of Brainchip through a buddy, I read up on the subject as far as I could and through my own conviction I am now invested in Brainchip.

After I wasn't happy in other forums by constantly "badmouthing my investment" or "pushing", thank God I found my way to this forum.
I assume that everyone can decide for themselves whether to invest in stocks and if so, which ones.
A lot of people have left here lately or are taking a break because they didn't feel comfortable here anymore, which I think is a shame.

I will never buy or sell more stocks based on posts written here as I have my own opinion on them.
However, I always found it very helpful to read here more about hardware, IPs, licenses, patents, connections between the individual companies and also legal things. That's why it's so important to have people like Fact Finder and all the others too.
These people carry you through the ups and downs that we shareholders often have, but also all the great humor.
All this makes this forum so colourful!

Conclusion: No dependency, but great enrichment through their extensive knowledge! So it's just nice when everyone comes back here!

It is really great to be here!

Well said @Sirod69

 

[FabricatedLunacy]

And another 1500 units topped up today.... Might make my 10k shares target quicker than I planned. Come on next month with same price, and I will break the target.

Happy Humpday!

Be nice, be friendly, relax and wait for the rocket powered bus to take off... Today, tomorrow, in 5 years. Don't care, just keep adding to my pile

 

[Xhosa12345]

This is correct.

Based on past releases about $2 million OF the $4.8 million is unexplained and attributable predominately to licence fees.

As $2 million is a substantial amount if it has arisen from a licence/s for AKIDA technology directly entered by Brainchip with a customer/s there is no NDA known to man that would sideline the obligation of Brainchip to make a price sensitive announcement on the ASX. There has been no announcement ask Rocket if you want confirmation of this fact.

Logic therefore suggests that MegaChips is the most likely source of this additional licence fee or fees as its agreement allowed for it to sell licences of the AKIDA IP.

The unknown is how many licences and who are the customers.

We know Renesas paid around $500,000 to licence 2 nodes of AKIDA IP.

We know MegaChips paid somewhere from $1.5 million to $2 million for a full AKD1000 IP licence.

As AKIDA IP is scalable in this fashion then the $2 million could be four (4x) sales of $500,000 or one (1x) sale of $2 million.

However we need to remember MegaChips is providing all the resources to achieve the sale and service the customers so they must be receiving a fee or a percentage of each licence they sell. We have not been given the details of this financial arrangement.

So if they are receiving fifty percent of the fee to cover their services and remitting the balance to Brainchip then the potential customer payments remitted rise to eight x $250,000 or two x $1 million or other combinations thereof.

These numbers are based on logic and fact nothing more but in my opinion need to be considered seriously in assessing the potential significance of this report.

My opinion only DYOR
FF

AKIDA BALLISTA

Ok a rare serious post from me:

Circling back to the comment 'revenue growth will exceed expense growth by the end of the year, again we dont have an answer as to gross $ or %, or whether the comment was revenue will exceed expenses by the end of the year:

Lets look big picture, and in gross terms:
2022:
- 5M revenue (Look at the GP too guys, 92% - yes i know there is a potentially $2M one off fee - but still, take that out, i still get 86%!)
-13M costs

so for the next 6 months, if we assume we are getting towards breakeven, my guess is costs will be more than half - as we are adding headcount
-$8M costs
-maybe $6M revenue

After end of year its possible revenue will be exceeding costs - so from january to june:
-$10M costs
-maybe $12M revenue

so hopefully 2023 is NET BREAKEVEN from a profit and loss perspective (18M revenue 18M costs) - maybe this is aggressive, i dont know- maybe it will be way more!

more conservatively, if its only a revenue growth will exceed cost growth, as a % basis, well using the above costs of say $18M per year- well its about a 30% increase in costs, meaning revenue by end of year needs to be growing at more than 30%, so the $5M revenue will become $7 or $8M? Does anyone think revenue in 2023 for the year will be only $8M? i seriously seriously doubt it......


all my opinion only

 

[alwaysgreen]

USD is relentless rising again. Hope it doesn't go to 2002 peak of $120. Markets will be cooked like dotcom.

It makes our revenue even stronger haha

 

[DingoBorat]

$US4M in licence fees, which is great news. It will be many months before these new licences generate royalties. We've been waiting for royalties from Renesas for over 18 months.

Sean did say that revenue would be "lumpy", so let's not confuse our eggs for chickens.

That said, if Megachips can keep the licences flowing, and MosChips can also get a bit of momentum, ...

We officially teamed up with MegaChips in November 2021 (but we may have been friends for some time before that) so reporting revenue in 10 months is very pleasing. It means that the licences were signed within a 6 to 9 month window after the announcement.

Our association with MosChips was announced in May 2022, so I'm hoping that they will benefit from the growing momentum of adoption of Akida.

Then there's our new partnerships with ARM, SiFive, Prophesee, and long term associations with Valeo, NASA (DoD), ... and start-ups NaNose, Biotome nViso, Edge Impulse, ...

... and, of course, Mercedes.

So there are plenty of opportunities for revenue generation, it's just that we don't know when.

Don't we need the IP agreement from MosChips first?

That's one of the things I've been waiting for..

 

[Schnitzel lover]

Is licensing revenue through Megachips royalty revenue or subsidiary licensing through Megachips?

Either way it wouldn’t be unreasonable for Brainchip to clarify IMO..

 

[Cardpro]

This is correct.

Based on past releases about $2 million OF the $4.8 million is unexplained and attributable predominately to licence fees.

As $2 million is a substantial amount if it has arisen from a licence/s for AKIDA technology directly entered by Brainchip with a customer/s there is no NDA known to man that would sideline the obligation of Brainchip to make a price sensitive announcement on the ASX. There has been no announcement ask Rocket if you want confirmation of this fact.

Logic therefore suggests that MegaChips is the most likely source of this additional licence fee or fees as its agreement allowed for it to sell licences of the AKIDA IP.

The unknown is how many licences and who are the customers.

We know Renesas paid around $500,000 to licence 2 nodes of AKIDA IP.

We know MegaChips paid somewhere from $1.5 million to $2 million for a full AKD1000 IP licence.

As AKIDA IP is scalable in this fashion then the $2 million could be four (4x) sales of $500,000 or one (1x) sale of $2 million.

However we need to remember MegaChips is providing all the resources to achieve the sale and service the customers so they must be receiving a fee or a percentage of each licence they sell. We have not been given the details of this financial arrangement.

So if they are receiving fifty percent of the fee to cover their services and remitting the balance to Brainchip then the potential customer payments remitted rise to eight x $250,000 or two x $1 million or other combinations thereof.

These numbers are based on logic and fact nothing more but in my opinion need to be considered seriously in assessing the potential significance of this report.

My opinion only DYOR
FF

AKIDA BALLISTA

I've also checked the Megachip's financial summaries covering 3 month between April & June, and it appears that the account receivable increased by approx 5 Billion Yen which is approx 50 Million AUD..!!

Also, their notes and accounts payable increased by approx 2 Billion..!
https://www.megachips.co.jp/english/pdf/220805-1q_e.pdf

 

[Diogenese]

Don't we need the IP agreement from MosChips first?

That's one of the things I've been waiting for..

Hi DB,

You are right - we've only done a joint presentation with Moschips in India

https://moschip.com/blog/semiconduc...emonstrate-ai-capabilities-at-iesa-ai-summit/

I was getting a little ahead of myself - so we may have to put any MosChips expectations on hold for a while.

I've clarified my earlier post to avoid confusion.

 

[havealot]

I have seen advertised the new AI Samsung washing machine which analyses the stain on your washing and adjusts the wash cycle etc to suit. Think this is what was talked about here where Brainchip could analyse through sensor this very thing. Just curious who does the chips for Samsung

 

[Proga]

This is correct.

Based on past releases about $2 million OF the $4.8 million is unexplained and attributable predominately to licence fees.

As $2 million is a substantial amount if it has arisen from a licence/s for AKIDA technology directly entered by Brainchip with a customer/s there is no NDA known to man that would sideline the obligation of Brainchip to make a price sensitive announcement on the ASX. There has been no announcement ask Rocket if you want confirmation of this fact.

Logic therefore suggests that MegaChips is the most likely source of this additional licence fee or fees as its agreement allowed for it to sell licences of the AKIDA IP.

The unknown is how many licences and who are the customers.

We know Renesas paid around $500,000 to licence 2 nodes of AKIDA IP.

We know MegaChips paid somewhere from $1.5 million to $2 million for a full AKD1000 IP licence.

As AKIDA IP is scalable in this fashion then the $2 million could be four (4x) sales of $500,000 or one (1x) sale of $2 million.

However we need to remember MegaChips is providing all the resources to achieve the sale and service the customers so they must be receiving a fee or a percentage of each licence they sell. We have not been given the details of this financial arrangement.

So if they are receiving fifty percent of the fee to cover their services and remitting the balance to Brainchip then the potential customer payments remitted rise to eight x $250,000 or two x $1 million or other combinations thereof.

These numbers are based on logic and fact nothing more but in my opinion need to be considered seriously in assessing the potential significance of this report.

My opinion only DYOR
FF

AKIDA BALLISTA

Arranging the license would be all part of the service fee MegaChips charges the customer I suspect. Taking a cut in the license IP to do paper work would be cheeky. MegaChips isn't selling licenses. They are selling their services to help get an application to market which uses a chip.

How much revenue is price sensitive and do you have to reveal the customer or just the amount? I own MQG and ANZ. They don't report anything outside of the half and full year results

 

[Lex555]

Could someone please clarify where the $4.8m revenue from the half yearly came from, as the previous 4C’s state we received $1.2m in Q2 and $0.2m in Q1, totaling $1.4m. This leaves $3.4m unaccounted for over the same time period. Wouldn’t this have been disclosed as receipts in the 4C

Edit: or is this due to accrued accounting?