Apologies for the delay but this was transcribed its not the best version but from me listening its pretty accurate.
Better to read it imo. You can now understand how the company BOM and Sean have confidence and see this. We all need to take this with our own opinion but i can say that these words spoken are recorded and if any of it was a lie criminal action could go against them so i will error on this being fact. I got this of the other site so the below is not my work. But I do think this is pretty accurate to those that listened would likely agree also.
Q AND A transcribed below
Q. You say you are doing some deals. How many deals do you expect a year. On the sensible side of it you need at least 6-8 IP licenses a year to cover costs. How many IP licenses are you expecting to sign in a year? A. Sean Hehir - again I’m going to leave my comments where they are. We are ging to try and win as many as possible. I understand you are saying you 6-8 to fund the company.
Q. How many years do you expect to get these IP licences? In 12 months time or 9 months time you are going to come back and say we need more funding.
A. Antonio - let me rephrase your question. Sean do you believe based on our progress to date that we are sufficiently building our pipeline that we can turn enough licences to turn profitability in the next 2-3 years time? Sean Hehir answers ‘yes’ to Antonio.
Q. So you’re saying that we the shareholder has to fund you for the next 3 years?
A. Antonio - the reason why it’s difficult to answer that question is because in 4 months time there could be a large semi conductor company (shareholder interrupts and argues) if we just do 2 or 3 licences that’s not good enough (shareholder interrupts and argues). You may have one of the licencees’ in our pipeline may come to us and take a 5 year subscription licence, they’re that big. Thats only one licence. But if they take a 5 year architectural licence to what we’re developing that will make us profitable overnight. Or, I might have 3 or 4 licencees that only take a one time use licence (shareholder interrupts and argues about when will there be revenue) and if we can tell you, to Sean’s point, a date at which we are flipping to profitability we’d be happy to tell you that the reality is we don’t know the answer to that question.
Q. So why all these RSUs you’re dishing out? For what? Nobody’s done anything. Sure the people in development have but what about the other people, what do they do?
A. Antonio - on RSUs we will take that one later. Let’s take your first question, you are asking us point blank, based on licensing it would take 5-6 licencees to reach profitability to cover costs. And while I can understand someone saying that statement I am simply clarifying that’s not necessarily the case as we don’t know the license type that someone necessarily needs. That’s all I’m saying. I’m not asking to to accept the answer, I’m telling you what the answer is.
Q. I think it’s about time you people started to come up with the goods.
A. Antonio - noted, noted.
Q. Are you more confident today or commercial success than you were 12 months ago?
A. Antonio – am I more confident of commercial success today than 12 months ago? That’s a super question. As a board member we have a unique advantage, because we get to look under the covers, we get to pull the curtain back, and we get to ask deep questions to a Dr Lewis, to a Sean Hehir, to a Steve Thorne about what their working on and I will tell you this, behind the scenes we give Sean a lot of crap and I’m sure that’s going to end up on the front page of some newspaper. And we recognise that we’re not happy with the pace, we know that. Everyone in this room knows that, and all the shareholders know that, all the employees know that. And us as a board, we get visibility of how hard the employees at BrainChip are working, they are busting their tails off, the reality is the marketplace is filled with people in tech who like to re-use existing technology and they’re very risk averse. Well think about it, if you’re an engineering manager of a large semi-conductor company and you’re risking millions upon millions of the company’s dollars on a specific project you want to de-risk that as hard as you possibly can. That’s reason why people will use Arm along with a simple DLA and some software and write a simple neural network and call it AI and put it out in the marketplace. There’s even golf clubs that have AI on them. I mean please. Come on. I mean everyone’s just using the term AI and pushing products out to market. BrainChip is different. We are out there telling people of a different approach and some people are going to take that approach and some people aren’t.And as we have pushed that approach to market we have altered our product offer, we have absolutely altered our product offer. Our (inaudible) architecture and our development of TENNS, this is radically different stuff we’re putting out into the marketplace. Now I want to be respectful to those of you have been with BrainChip for a very long time, I’m not ignoring that. My horizon is looking after the last couple of years in particular, because when I came on board we have overturned the architecture. Now with all that said here’s the answer to your question, I get to look at what the team’s doing as a bord we see the level of engagements that are going on inside the company. I see the fact that Sean recently, a couple of weeks ago, didn’t just have a meeting with an engineering manager or a engineering VP, he is meeting CEO’s and COO’s of the largest tech companies on the planet who are actively engage with us right now looking at our technology. But at the same time there is the reality that there aren’t a bunch of people out there who have BrainChip based technology into the marketplace. So who are going to be the trailblazers? The great thing about selling intellectual property and being new to the market with technology is once you get over that hump and you start working with the industry and they say “well how do I know it’s going to work” well then you simply point to a couple of other people who have products in the market. We’re not there yet. And so right now on a benchmarking case and a technology case and an opportunity case and a positional case with respect to segments we’re pushing that story forward. And what I see, is I see the depth which BrainChip is engaged in the market, I see the attention that we’re getting, I see the questions that the architectural partners are asking of us. We all on the board see that and that’s what puts us in a position have more patience with the team. Ands its because of our position as a board.So the answer to your question is ‘yes’ I am far more confident this year than last year and the main reason is I have visibility of our depth (inaudible), I have visibility of our pipeline. Am I happy with the pace? No, no. And it is not lost on anyone in this company that the pace has to improve and the gentleman in the back who echoed a bit of frustration, he has every right in the world to be frustrated. He has every right in the world to be frustrated. All I can do is say I share the frustration, but a the same time I have the visibility and the rest of my board have the visibility to see the progress that we’re making. Between Tony, Sean, myself and a couple of others at BrainChip, we can get audiences with anyone in the global tech market. We can. And they’re listening to us. And they’re asking the right questions, and they’re intrigued by what we’re doing. And we’re trying to get them over the line.
BRN Price at posting:
25.0¢ Sentiment: None Disclosure: Held
(20min delay)