I’m genuinely excited about Brainchips prospects over the coming years. There has been a clear and growing signal across the industry that many companies intend to move to the edge, and with the ecosystem we have built, I believe we are well positioned to take advantage of that shift. I would expect that partnerships with the likes of Frontgrade, RTX, Onsor, Metaguard, Andes, SiFive, Arquimea, Tata Elxsi, etc., should start to bear fruit over the next one to two years.
With that in mind, I think this year’s AGM provides an appropriate forum to ask Sean and the Board for a clearer view on the expected timing of royalties and any meaningful revenue. To date, the only guidance I recall being provided was during the ASX Investors youtube interview in May 2023, where Sean indicated that 6–12 months was too soon, while 3–5 years was too far out, suggesting somewhere in between. We are now at the point he suggested he should be able to provide some cadence around sales.
Sean would have visibility over the company’s commercial engagements, and his team would be in regular contact with partners who are working to integrate Akida into end products. Six years into commercialisation, and with multiple partnerships in place, I think it is reasonable to expect that management is forming internal forecasts around upcoming revenue to ensure the company remains in a financially strong position.
As shareholders, I think it is fair to ask at a high level, when management expects the commencement of royalties and meaningful revenue so that we can make informed decisions about our investment. I’m not expecting any NDAs to be breached or partner-specific details to be disclosed, but some clear commentary around what the financial outlook is over the next few years.
If management is unable to provide any meaningful guidance on this question, that would be a concern for me. To me it would suggest that material revenue may still be several years away. Greater clarity here would go a long way toward reassuring investors, particularly given how challenging the past five years have been for shareholders when focusing on the shareprice.
