Great timing on this post.
Judging by the 4C, the Megachips $2m was an ACCOUNTING ACCRUAL only.
For those that don't have an accounting background, this would mean that, from an accounting policy perspective, Brainchip have "accrued income" for the licensing fee, but have not yet invoiced Megachips so haven't recognised the $2m as a debtor.
I'm now wondering what the terms of the licensing agreement were, in regards to when Brainchip can invoice Megachips - ie. what milestone needs to be met before they can issue an invoice for the remaining $2m. I'm now guessing there was an agreed amount to be invoiced up front (which we've received) and then perhaps the balance to be invoiced upon Megachips successful commercialisation of a product containing akida? Royalties then also to be invoiced monthly thereafter based on sales volumes.
If anyone has experience with IP licensing and general terms you can expect in those sort of agreements it'd be great if you could divulge for the rest of us to better understand.
Looks like those minor engineering/support fees were only $118K.
Excluding the $2m not being reciepted, the rest is pretty well in line with what I was expecting.
"In the coming quarter, the Company will focus on key sales targets and converting technical evaluations into paid licenses. In addition, the Company is accelerating development of next generation Akida IP and products to extend our technological lead and market opportunity. We are seeing the greatest amount of sales activity and engagement in the Company’s history"
Can't wait to see how December pans out.
Cheers all!
