Yes expectation always leads reality I think in my case having so deeply researched Brainchip my expectations are always going to exceed the reality because what Brainchip has is so far ahead in my opinion that if I was in charge of a company say Ford I would have been here in 2019.
Having said this I have to remind myself of what the Head of Tata said to his shareholders about the need for NDA's and the omnipresent risk of industrial espionage from known Asian actors. In the first Podcast the CEO of Brainchip if anyone cares to revisit goes out of his way to make the point that if he had his choice he would be telling shareholders about everything that is happening but that in the real commercial world in which Brainchip operates this is not possible for the same reason as Tata's Head states.
My goodness the overriding dispute between China and the US in its current trade war under both Donald Trump and Joe Biden is the Chinese Governments failure to ensure that intellectual property is respected. Notwithstanding that this issue is of such significance as to bring the two most significant world powers to the brink of open military conflict we have posters complaining that Brainchip will not disclose its secrets to the world at large.
Over the last few days or so we have even had from what I can tell through the vale of ignore, posters questioning whether the Ford engagement is continuing because nothing has been said by Brainchip. I posted on this issue and pointed out that Google is not in anyway a threat to what Ford and Brainchip from their initial announcement stated was to be the explored area of technology. Google is offering cloud connectivity and Brainchip is offering driver monitoring regardless of connectivity a feature essential to satisfy governments that Level 2,3, 4 vehicles could be approved for registration and use on public streets. The following is a comprehensive statement of the importance of driver/passenger monitoring systems:
On the Brainchip web site there are three things which as a shareholder you might find significant:
1. When the engagement with Ford was first announced there was no reference by name to Ford in the announcement. Shortly after the ASX required Brainchip to lodge a further ASX announcement the sole purpose of which was to disclose that the Tier 1. auto manufacturer was in fact Ford. While this announcement is available to read on the ASX the list of ASX announcements put up by Brainchip does not include this second announcement so that the entire Brainchip web site has been from the day of the first announcement on the ASX devoid of any identification of Ford by name and the CEO has never again in any webinar or podcast or interview identified Ford by name again.
2. On the web site under the heading 'Applications' sub heading 'Automotive Sensors' the entry refers to vibration monitoring in detail but hidden in amongst all the detail about bearings and vibration and monitoring of same to avoid catastrophic failure almost out of place are the following words:
"The Akida AKD1000 Edge AI processor can also monitor the passenger compartment, checking driver alertness with the aim to reduce human error. Privacy is assured without the need to upload images to the internet."
3. Ford like every other one of the EAP customer would not have received the AKD1000 chip and Board until at least October/November and so just like Valeo which is clearly still engaged in the testing of AKD1000 as stated in the Annual Report the present time from receipt of the chip and board till now is consistent with Valeo's engagement timeline and as such does not allow for any adverse inference to be drawn.
Can I as an anonymous poster on Hot Copper guarantee that Ford is still engaged with Brainchip well obviously not, however logic and common sense can still be chosen over an unsupported rumour and weight can be given to the known facts and the obligation for an ASX listed company to keep shareholders apprised of a material change. Having announced the engagement with Ford on the ASX (effectively twice) Brainchip has an obligation to announce if that trial has ceased. There has been no such announcement. In addition the announcement of Ford and Google joining forces does not on the basis of what has been announced affect what Brainchip and Ford were engaging to explore.
This is only my anonymous opinion so DYOR but unlike some I have provided you with sufficient reference points to go and check everything I have opined.
BRN Price at posting:
47.5¢ Sentiment: Hold Disclosure: Held
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