Xhosa12345
Regular
Megachips only posted a few slides on what they are up to, JUST A FEWOnce again a summary of information, I believe to be important, that has transpired on this discussion thread.
For new investors, 1000 eyes that may have missed it or those that are time poor and haven’t read all posts I have layed it out here for convenience.
Megachips is a BRN IP license holder.
They have paid for the Akida IP and can offer this IP to their customers for use in their products.
Megachips offered a presentation this week to their shareholders.
Here is the full presentation
https://pdf.irpocket.com/C6875/aG1f/lbpj/UtUa.pdf
from which 2 slides related to BRN are pasted below
View attachment 21748
View attachment 21749
Megachips have many customers, all can access BRN IP through the Chips, tools and software Megachips offers them.
Slide 2 above depict Megachips belief in relation to their projected growth leading into 2025.
It makes perfect sense that BRN royalties will align with the ‘Direction of growth’ Megachips have outlined for themselves.
This also ties in with the BRN financial reports the CEO has told us to look out for.
During this ‘Business launch’ phase Megachips outlines, there is little cash generation, BRN is beginning commercialisation and BRN get lumpy licensing fees appearing in the 4C.
When ‘Volume production’ occurs, BRN will receive the more steady and exponentially growing royalty stream from the Megachip customer relations.
ARM is a BRN partner
ARMs podcast today gives some more insight into potential future growth.
ARM has been operating for 30 years, there engagement speeds up the process for companies wishing to bring a product to the IoT market whilst ensuring they meet the required standards.
ARM sold 230 billion chips since inception
Imagine for a minute, if you will, knowing that AKIDA is unique and the global Standard for edge AI or will be soon according to the CEO, that AKIDA is added to only one quarter of the ARM chips sold.
Add to that imagination that the royalty paid to BRN is a mere 20c per chip. That my dear chippers will mean BRN could have collected a measly 11.5 billion from ARM customer base alone, over the last 30 years.
If we use ARMs last quarter (7.4billion chips) lets round to 28 billion per year, with the above numbers in use, (i.e 25% of the total chips produced use Akida and a 20c royalty for each), BRN get paid 1.4 billion in royalties per year from ARM customers alone.
What we don’t know is:
Will the royalty be a fixed price, if so how much per item or
Will the royalty be a % price of the item sold.
The 20c per item selected for the above calcs is a VERY small number.
Here is what ARM do
https://www.arm.com/company/on-arm
Who is using ARM ecosystems according to the podcast today?
https://youtu.be/SJ6SnD7ZOwc?t=545
Silicone partners, Cloud service providers (Amazon and Oracle)
Software Tool providers (GitHub and GitLab) to name a few
Why would ARM customers use BRN IP in their chips?
Kevin Ryan: said this about the partnership:
Our partnership solves some very specific use cases we see in the IoT market.
It gives the ecosystem the ability to scale.
He encourages customers to go to the ARM catalogue to learn about partners and solutions for their needs.
Chippers have already seen this but it does highlight the ubiquitous nature of our tech.
Go here to check out partners in the ARM catalogue, count the number of ‘Use Cases’ in which Brainchip is offered as a suitable partner to work on a solution.
View attachment 21750
An easier way of making this comparison is; from the same location enter Brainchip in the search field and all use cases, products and Industry and tech that BRN is offered as suggested support in will appear. Compare this to the list when the search field is blank and you will see BRN is ubiquitously offered J
I have added Brainchip as a search parameter here for you
Im not doing this justice so you will need to investigate for yourself.
But in summary, just like Megachips the relationship BRN has with ARM is not fully recognised
I have outlined ideas generated from 2 of the BRN partners. All the others will have the same timelines for growth and exponential projections due to this being a disruptive tech.
All partners are faced with the same timeline and projections i.e Akida IP has been available for a short period of time, being so new, the partners customers have only recently had access to tools and programs to test and implement Akida IP in their products.
Sale of those newly tweaked products is just around the corner. Royalties follow soon after.
The CEO said watch the financials for this uptick in cash received to give an indication of growth.
Once the royalties flow they will be more stable and I dare say higher year on year for some time and BRNs original image depicting sales seems very similar to Megachips projections, only difference is that BRN have multiple partners workign on adding to the cash flow graphic.
View attachment 21751
Thanks for each of the chippers that contributed to peices of this post.
And we are heavily featured
Check megachips revenue (convert to aud) ... and they bothered to mention us in their preso, with ALL they fukn have going on.....
Just saying....
Not imo, this is fact
Happy weekend all, gamble responsibly....