What are everyone's thoughts on these two issues:
1) Still no revenue from the IP Block after almost 6 months? Is no one interested?
BrainChip Announces the Availability of Advanced AI Intellectual Property (May 28, 2019)https://www.asx.com.au/asxpdf/20190528/pdf/445fdzjhfs4nww.pdf"The
Akida NPC is now available to license as an IP block for incorporation into ASICs provided by semiconductor suppliers developing Artificial Intelligence enabled “Edge” devices. Applications at the edge include intelligent environmental controls, driver safety monitoring, vehicle safety and preventative maintenance, medical image classification, wearable health monitors, retail item recognition, access control, the industrial Internet-of-Things (IoT) and acoustic analysis."
BrainChip Holdings September 2018 Quarter Update Presentation (November 07, 2018)https://www.finnewsnetwork.com.au/archives/finance_news_network201160.html"Fortunately for us, the contact that we've had in the cellphone space is not to buy an Akida chip. If you tear open your cellphone you're only going to find three or four ICs or integrated circuits in your cellphone. Each of the majors and again you can think about everyone from Apple, to Huawei, Samsung, ZTE, all of them have their own internal IC development capability and they build their own applications processors in many cases. What they would look to us for is the
Akida IP block.
You basically sell your design the
IP block only those pieces that they need when we look at the architectural design of Akida, they wouldn't need a lot of the things that are on there. They'd need neuron fabric, they need the data to spike converter for whatever the specific use case is, but they would then take that design and they would incorporate it in their own silicon, their own processor that they're building.
Very nice part about this is it
could lead to revenue for Akida long before we even have our own IC. If you intersect with one of these companies and you have a compelling case, smaller footprint meaning less dye area, consumed with a spiking neural network rather than what they may be do with a convolutional neural network now, much lower power. Again increasing battery life basically when you think about power it's all about battery life."
Bonus (Someone was
completely off the mark when they made these comments):
"We've got about
17 design wins. There's a number of questions about design wins and what the conversion rate on design wins would be. That is something we'll learn overtime. We expect that the conversion rate will be very high. Once you go through the qualification process and they go through a trial,
by the time we call it a design win, we've got a pretty high confidence that that design win will go into production. We don't control whether our customers will be successful or not. They give us volumes, they tell us what their timelines are, but again they have to sell their products not us.
17 design wins is quite healthy for BrainChip Studio, it really is the flagship product that we're selling right now as many have commented in their questions.
That revenue will carry us until we get Akida out in the marketplace and we start to generate revenue off of our own silicon."
2) Another capital raising seems
almost inevitable, likely within 6 months?
https://www.asx.com.au/asxpdf/20191031/pdf/44b39fd0h38cjx.pdfSome calculations:
Assumption 1: No significant cash inflows until
after June 2020
Assumption 2: The third party expenses (mentioned above) are a once off (are they?)
Assumption 3: Cash outflows remain constant
December Cash Outflow: US$4,150k
Minus Third Party Expense: US$1,500k
Potentially normal quarterly cash outflow: US$2,650k
End of September 2019 Cash: US$9,537k
End of December 2019 Cash: US$5,387k (US$9,537k - US$4,150k)
End of March 2020 Cash: US$2,737k (US$5,387k - US$2,650k)
End of June 2020 Cash: US$87k (US$2,737k - US$2,650k)
(20min delay)