Hi
@Fact Finder
Yes it is hard to say what is going on behind the scenes with the EAP’s in relation to deals struck. They could be hiding behind Megachips.
At the moment we are all guessing but since the announcements have been very quiet over an extended period I am assuming they are using the NDA ploy for most of them, I am not sure how long that can hold up.
There is also a chance that the customer holds off signing a formal long term supply contract for as long as possible until they know the Akida chip fully works in a tested production end state customer product and only then commit to a mass production....and probably hold this off until late as possible so as to not tip off the competition.
In the end I am not sure what the play will be ...we do know that Brainchip expects that most of the EAP’s have/will commit for longer term commercial use. Ie. Revenue. Are they all hiding behind Megachips? It is a smart play for sure so as not to tip off the competition - in that instance the Megachips licences will keep increasing per quarter to protect the products developed out of the EAP’s.
The company did say watch the revenue so we should not expect individual announcements. Megachips or NDA protection seems to be the game.
Hard not to start getting excited for each passing quarterly now. There are some seriously big names in the mix - which quarter is going to be the really big pop of xxxx% revenue increase.
Hi F6666
I try to keep in mind everything that is said over a given period rather than run entirely from the last statement made.
Why because this is how we all normally communicate.
For example when you are working with a group on a project as a rule you will assume that what was said previously will carry forward and be built upon and not need to be restated every day before new information is added.
Where income is concerned it is relatively easy as the CEO Sean Hehir has only been CEO since late last year to carry forward what he has said and create the narrative.
Thus for me the narrative he has delivered is as follows:
1. It is too early for the company to have a policy which involves issuing guidance as to expected quarterly or annual receipts.
2. The Board has agreed to revisit and discuss the policy on guidance first half 2023 in line with the company guidance that income will start to increase second half 2022.
3. The growth in income is likely to outgrow the growth in expenses during 2023.
4. Income will eventually be primarily royalties at a factor of at least four to five times any licence fee as a starting point.
5. The companies engaged with Brainchip are extremely concerned to maintain the secrecy around their use of AKIDA technology and when product will be released to market.
6. As a result of 5. above we should look to the income in the 4C to understand the companies progress and the CEO’s performance.
7. The income will be lumpy:
“In the business world, lumpiness refers to revenues that come in big chunks at irregular intervals as opposed to in steady, consistent increments” - (this is one of many definitions as to the term lumpy which are to be found all of which are largely consistent one with the other.)
So keeping all these points in mind I am prepared for any 4C not to be reflective of a smooth upward trend line.
There are three 4C due before the 2023 AGM and I have an expectation that the total income they reflect will be what I have been challenged by the CEO to judge his performance against not the income disclosed in any individual 4C.
Accordingly, the next 4C and each one thereafter could be substantially higher or lower than the previous 4C. - (lumpy)
My opinion only DYOR
FF
AKIDA BALLISTA