Hi guys,
Why are people expecting money in the next 4c??? I didn’t think there were any deals done in this quarter. And it is far too early for royalties from renesas and megachips. Hoping for some more deals signed over the next few months… probably still a few years away from significant revenue
Seems no one is going to answer. When the MegaChip deal was announced in the further announcement required by the ASX Brainchip declared they would receive about $2 million dollars in 2022. So if this is evenly distributed about $1 million of that should turn up this quarter.
Then we have the sale of the sold out Rasberry Pi etc which could add a further $300,000 to $1 million.
Then you have engineering fees from Mercedes, Valeo, NASA, etc say a couple of hundred thousand.
So as I said a little while ago a couple of million this time round.
Last years AGM provided income projections and showed income commencing to ramp up second half 2022.
In multiple interviews the CEO Sean Hehir has stated income will commence to ramp up later this year and recently said if you want to know how the company is going look to the income.
The precise details of the Renesas deal are unknown but they have to pay a royalty on every single use of the IP. They are bringing out the AKIDA MCU second half.
I do not believe based on the scant details released that they have to sell the MCU containing the IP to be liable to pay the royalty. So it will depend on how many they produce as to what income they will generate for Brainchip during second half 2022 but MCU’s are a high volume low cost item.
I believe I read last year that Renesas had sold in the order of 40 billion MCU’s since they started making them.
So I suppose the above is why some expect income this year.
My opinion only DYOR
FF
AKIDA BALLISTA