Many of you would have watched the interview in the thread "Brainchip Interview - Sept 2020 - Good Update" which was posted yesterday. My highlights of the interview are as follows (and I have tried to quote Louis accurately):
Question: Just released an announcement on the ASX about a collaboration, can you talk us through the highlights and why this is significant for the company? - Answer: "The collaboration is with a company called Vorago, who is a subcontractor to NASA. NASA is very interested and intent on bringing neuromorphic computing into space, aerospace and space flight. The Akida design is uniquely suited to solve a lot of problems in space flight. It's complete and doesn't need any external circuitry, it's ultra low power which is completely necessary in space and it provides that neuromorphic processing capability that NASA sees as the next generation of autonomous operation in space flight and aerospace".
Question: The share price jump over the past month attributable to investors' view that Akida device is ticking boxes during the current proof of concept stage? - Answer: "I think that's absolutely on point, we've been designing and developing Akida for the better part of three or four years. We've hit certain proof points. I think the collaboration with Vorago makes a big statement ... I think the investor base in Australia has been very loyal, somewhat patient, we are at a turning point where we are ready to commercialise the product and we've seen great receptions from some of our key names".
Question: From an earnings prospective, surely it's all about the successful testing of the Akida device and product applications, what's your strategy and next steps here? - Answer: "Well, it's somewhat twofold. Certainly we need to complete the testing and validation of the integrated circuit ... we're really at that point where the device can be tested in the hands of customers very shortly and I think that will really inspire our loyal shareholder base to gain more and more confidence".
Question: Expenses, growth and cash burn to trend into fiscal year 2021? - "... I do expect to see some incremental increase in the early part of 2021 as we commercialise ... put some people in the field, to visit customers ... so we will add to sales and marketing, what we call solutions architects that will work with customers to help them design their systems ..."
Question: Idea of some of the practical examples of the applications of this evolving artificial intelligence technology? - Answer: "... primary goal is to work at the far edge, not data centre not cloud, but at the far edge or near edge, so in devices, surveillance cameras ... cameras, pixel based cameras and net based cameras and automobiles, medical diagnostics ..."
Question: Longer term growth prospects? - Answer: "... focus in Japan, South Korea, Europe and the United States ... we have a wide variety of applications we can serve".
Question: Potential health sector applications of Akida? - Answer: "... looking into applications for recognising VOCs, or volatile organic compounds ... originally the application for VOC detection was aimed at cancer research, early detection of cancer, can also be applied for infectious diseases, COVID-19, H1M1 and others, so we've focussed heavily on the medical aspects and medical implementation of Akida on those types of devices".
Question: One year from now, how would you like BrainChip to be positioned? - Answer: "Well one year from now, we should certainly be well into the commercialisation of Akida, I think we are very focussed on very specific end markets and applications, all which can drive significant revenue growth and profitability. A year goes by very quickly ... we can make a lot of ground up in the next 12 months".
Does Akida work? Is there a ready market for it? Is there future potential for it? Can it generate revenue and profits? Watching the interview and the manner in which Louis answers the questions, I think I know the answer. Of course, you can all make your own assessment of the interview. Personally, I would be very interested to see what the year brings - I hope it goes by very quickly too!
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(20min delay)