BRN Discussion Ongoing

[Proga]

Interesting comments from the MB boss in the 2nd attachment.

"Taking more control of the supply chain through direct supply contracts and being more strategic about material choice would also help lower costs,” he said.

Mr Schafer said that in reducing EV costs, he predicted that cobalt, a common battery material, was likely to be phased out of production.

Rising prices for cobalt, sourced mostly from Democratic Republic of Congo, are pushing battery makers to explore cobalt-free technology.

Mercedes earlier this week said it was the first automotive customer of battery startup Sila Nanotechnologies’ silicon anode chemistry.

Mercedes are partnering CATL in a new battery manufacturing plant in Hungry. At first they'll be using LFP batteries or LMFP which don't use cobalt. However CATL have come up with a new battery M3P supposed to be even better with a more complex cathode chemistry than basic LMFP.

Rumor: China-Made Tesla Model 3 To Get CATL's M3P Batteries

In the not-too-distant future, Tesla might be equipping its electric cars produced at the Giga Shanghai plant with CATL's new battery type, called M3P.

insideevs.com

Mercedes-Benz Expands Its Battery Supply Partnership With CATL

Mercedes-Benz announced expansion of the battery supply partnership with CATL and large contract for batteries from the upcoming plant in Hungary.

insideevs.com

The price of cobalt has been dropping since Glencore increased production at its mine in the Democratic Republic of Congo around June. It now supplies 26% of the worlds cobalt.

I wonder if @uiux is man enough to apologies for his comment?

 

[Fastback6666]

Hi @Fastback6666,
My idea of using MegaChip only works if Mercedes Benz wants to hide the use until after or at the time of vehicle release. Waiving the licence fee would not defeat the obligation to make an ASX announcement if they signed a deal with Mercedes Benz to have the AKIDA technology in Mercedes Benz EV passenger sedans.

Why is this so because the ASX requires announcements which are material and where the value of the announced agreement is reasonably able to be calculated. Mercedes Benz has past sales figures going back for 100 years and production run numbers set for each new vehicle so it would be a very simple matter for Mercedes Benz or Brainchip to do some calculations and put up a reliable estimate on the value of the agreement even though it is an agreement just based on royalties. As such it would be material and ascertainable.

In saying this I am not arguing you are wrong or that I am right because I have not yet had an email from either Brainchip or Mercedes Benz inviting me to an exclusive briefing on their corporate plans so until then our propositions are like Schrodinger's cat both alive and dead until the box is opened.

The good thing about this unlike Schrodinger's cat when our box is opened while one will be dead we will have one alive and that alive cat will be so miraculous that we will soon forget the dead cat.

My opinion only DYOR
FF

AKIDA BALLISTA

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.

 

[Fact Finder]

@factfinder

Has anything been initiated from that email you sent to tony regarding nasa docummet and brainchipname mentioned in it. He suggested looking in to it
sent to

I had a reply enclosing an email from Ken Scarince saying he would look into it but it was unlikely something that would meet the threshold to be announced.

I might hear something further but doubt it would be we are going to announce because that would be insider info so anything further will only be yes nothing we can announce here.

Regards
FF

AKIDA BALLISTA

 

[Proga]

Damn you made me look on Commsec and it’s just terrifying slightly more than half of one percent of shares on issue have traded as at 2.14pm.

This is a disaster to rival the Wall Street crash in the 1930’s. Good thing high rise are air conditioned and don’t have opening windows.
LOL.

Such a solid base of educated shareholders the manipulators struggle to create volume even when the entire ASX is under pressure.

Thank goodness for TSEx and the 1,000 Eyes.

By the way I wonder why Mr. Powells warning on interest rates did not affect bond rates. That’s right because these are set by intelligent clear thinking people who do not panic and know that he was trying to take the gloss of the cash splash by Congress to pump the tech industry and had actually not increased interest rates. In fact they had already factored in further interest rate rises because inflation has not yet been defeated in the US.

My opinion only DYOR
FF

AKIDA BALLISTA

SP has bounced of 80c 3 times in the last couple of months. It may get tested again. Hopefully not.

 

[uiux]

Mercedes are partnering CATL in a new battery manufacturing plant in Hungry. At first they'll be using LFP batteries or LMFP which don't use cobalt. However CATL have come up with a new battery M3P supposed to be even better with a more complex cathode chemistry than basic LMFP.

Rumor: China-Made Tesla Model 3 To Get CATL's M3P Batteries

In the not-too-distant future, Tesla might be equipping its electric cars produced at the Giga Shanghai plant with CATL's new battery type, called M3P.

insideevs.com

Mercedes-Benz Expands Its Battery Supply Partnership With CATL

Mercedes-Benz announced expansion of the battery supply partnership with CATL and large contract for batteries from the upcoming plant in Hungary.

insideevs.com

The price of cobalt has been dropping since Glencore increased production at its mine in the Democratic Republic of Congo around June. It now supplies 26% of the worlds cobalt.

I wonder if @uiux is man enough to apologies for his comment?

These are your words


"To start off, Akida will only be in the EQA and EQC range, small to mid size vehicles. The reason given was young people who are more tech savvie buy these cars and will provide feed back about the new tech."



How about you post proof or be man enough to gtfo

 

[Proga]

These are your words


"To start off, Akida will only be in the EQA and EQC range, small to mid size vehicles. The reason given was young people who are more tech savvie buy these cars and will provide feed back about the new tech."



How about you post proof or be man enough to gtfo

I did but not to you though

 

[wilzy123]

I did but not to you though

Still waiting for an answer. Still haven't see anywhere that publicises the words "EQA and the EQC are the only 2 electric models which run on the MMA".

As @uiux said, these are your words.

 

[Proga]

Still waiting for an answer. Still haven't see anywhere that publicises the words "EQA and the EQC are the only 2 electric models which run on the MMA".

As @uiux said, these are your words.

Google it.

 

[wilzy123]

Google it.

Nah. I think you're just making shit up.

 

[Proga]

Nah. I think you're just making shit up.

Believe what you want. Stop being lazy and read the article

hint - In its electrification and software strategy, in addition to the vehicle operating system MB.OS, Mercedes-Benz has also launched two pure electric platforms. Among them, the EVA platform is suitable for large electric vehicles, including EQS, EQE and other models, and EQS has been launched this year. Not many models left for the smaller MMA platform

 

[TheDrooben]

Managed to sell one of the kids today and scooped up some more shares at 89c.......bargain!!!

For sale.......2 more kids

 

[Bravo]

Here's a great video from Cerence from 23 August 2022 about the evolution of increasingly proactive voice assistants that can act like co-pilots to increase comfort, entertainment, safety and convenience. It also covers driver monitoring systems which are going to be mandated soon, which are apparently really resonating with users.

They discuss the role of the new, smarter/more proactive voice assistants as a complete paradigm shift, saying we can expect to see more and more of them starting early next year to mid next year, getting more sophisticated as they roll-out.

(10:00) We'll start to see the first flavours of this and then it will get more and more intelligent as we go on.

There's also a segment where they discuss predictive maintenance and pure conveneince services like automatically reserving parking spaces, etc.

 

[Fact Finder]

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

 

[Fastback6666]

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

Hi FF,

I agree with all your points.

Lumpy has been mentioned and I am at ease with that comment and that is pretty normal early on and especially if there is some new large contracts being struck.

I just hope lumpy is on a larger dollar scale and not smaller dollar scale. Time will tell.

Ie. 500k to 1.5 mil to 750k to 2mil is not going to cut it for the next 4 quarters.

5mil to 12mil to 7mil to 18mil will be more in line with what needs to be seen to keep the SP moving in the right direction.

The CEO said the the market cap should be much higher than what it currently was at the last AGM so I am expecting some impressive numbers over time. Hopefully he is on track with that statement.

 

[Perhaps]

I am thinking of just basic use cases:

A controller that can recognise who is holding it to adjust the in game profile accordingly

Exactly. Nintendo has only the Switch console in program by now. An update is coming 2023. The technical dates of it been leaked earlier this year, no Akida inside. According to the usually well informed games scene a new console will not appear earlier than 2026. When there comes a new console with new in game functionalities, it first needs new games which can handle the new features. Games have a very long development cycle, there is no way to speed this up.
So anything about controller updates is much closer to reality than speculations on a brandnew console coming soon containing Akida IP.

 

[TheUnfairAdvantage]

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

FF.

In reference.

4. Income will eventually be primarily royalties at a factor of at least four to five times any licence fee as a starting point.

I agree it is on record. I never truly understood the true meaning. Did Sean mean return in total or a factor per annum?

What is your interpretation of said statement? I prefer an answer that gives a per annum return

 

[uiux]

Sorry @Perhaps wrong person

 

[Cardpro]

@Fact Finder

Although the listing rule 3.1 mandates us to make continuous disclosures, and having an NDA doesn't excuse us, it appears that if it's considered as a 'trade secret', it can be excluded.

4.20 Commercially sensitive information
Issues can sometimes arise under Listing Rule 3.1 in relation to the disclosure of commercially sensitive matters, such as the pricing given to a major customer or supplier under a material contract. ASX recognises that the disclosure of such information could be used by the entity’s competitors or by other customers or suppliers, to the detriment of the entity and investors in the entity.
Some commercially sensitive information may be a trade secret and therefore protected from disclosure under Listing Rule 3.1A.130 Some commercially sensitive information, however, may be difficult to characterise in that
manner.
ASX has no issue with an entity structuring an announcement about a particular transaction to avoid disclosing
commercially sensitive matters, provided it includes sufficient information in the announcement to enable the market to assess the impact of the transaction on the price or value of the entity’s securities.131
If an announcement is structured in this manner, care must be taken to ensure that it is accurate, includes all material information that would influence investors in deciding whether to buy or sell the entity’s securities and is not misleading. If the announcement is not capable of being drafted to meet these requirements without including the commercially sensitive information, then Listing Rule 3.1 will require the commercially sensitive information to be disclosed. https://www.asx.com.au/documents/rules/gn08_continuous_disclosure.pdf


IMO

 

[Fact Finder]

@Fact Finder

Although the listing rule 3.1 mandates us to make continuous disclosures, and having an NDA doesn't excuse us, it appears that if it's considered as a 'trade secret', it can be excluded.

4.20 Commercially sensitive information
Issues can sometimes arise under Listing Rule 3.1 in relation to the disclosure of commercially sensitive matters, such as the pricing given to a major customer or supplier under a material contract. ASX recognises that the disclosure of such information could be used by the entity’s competitors or by other customers or suppliers, to the detriment of the entity and investors in the entity.
Some commercially sensitive information may be a trade secret and therefore protected from disclosure under Listing Rule 3.1A.130 Some commercially sensitive information, however, may be difficult to characterise in that
manner.
ASX has no issue with an entity structuring an announcement about a particular transaction to avoid disclosing
commercially sensitive matters, provided it includes sufficient information in the announcement to enable the market to assess the impact of the transaction on the price or value of the entity’s securities.131
If an announcement is structured in this manner, care must be taken to ensure that it is accurate, includes all material information that would influence investors in deciding whether to buy or sell the entity’s securities and is not misleading. If the announcement is not capable of being drafted to meet these requirements without including the commercially sensitive information, then Listing Rule 3.1 will require the commercially sensitive information to be disclosed. https://www.asx.com.au/documents/rules/gn08_continuous_disclosure.pdf

The risk is in the tail:

“ If the announcement is not capable of being drafted to meet these requirements without including the commercially sensitive information, then Listing Rule 3.1 will require the commercially sensitive information to be disclosed”

The problem with the ASX is they will not give guidance or advice to companies in advance and only step forward to judge after publication when the ASX can direct additional information.

It is a legal nightmare for small growing technology companies on the ASX.

My opinion only DYOR
FF

AKIDA BALLISTA

 

[Bravo]

Fact Finder, thank you for graciously coming back into TSE and posting once in a while! As much as I am a hard rusted on LT share holders with a holding timeframe of minimum 2025 it can get dark and gloomy once in a while.

But reading your posts helps me regain perspective and clearing to why I am here and why I have chosen to put my money on Brainchip. The statement that we are only 9 months from the 2023 AGM made my balls skip a beat.

FF for president

I couldn't find any skipping balls, but I found a skipping nut which is pretty close.