Ann: Megachips License Agreement, page-178

A couple of points from the perspective of a long term investor in Brainchip past and future:

1. Brainchip properly so is not now, or in the future, going to release the precise amount of the IP licence fee, the engineering fees or the royalities these are very much commercial in confidence and on top of that as Intel stated to the Australian Parliamentary Committee looking into patent law standardisation it is not industry practice to disclose these details. To bring it down to simple terms when you advertise something for sale do you disclose other than the sale price or do you throw in Price $100 but if you offer $5.00 you can have it? No and it is the same principle in the semiconductor industry. The bigger the opportunity the less you might charge but you are not going to give a heads up to the rest of your customers to appease a few anxious shareholders. If you cannot live without knowing then perhaps the semiconductor industry should be exchanged in your portfolio for Bank and Insurance company shares. Go and read the ARM annual report and see if you can find where they disclose what they charged individual companies.

2. Being a long term investor I personally do not give a toss for seeing income in the balance sheet. I am going to pretend as much as it irks me that I am a US Investor who has the ability to value a technology company on its technology and customer engagements. If you are going to hold onto your Brainchip shares to see the future of this company unfold you need to get used to the fact that income is always going to lag behind the share price and the further we go into the commercialisation, and as the new itterations of AKIDA are revealed to market, the share price will just keep getting further and further ahead of EPS because that is what happens in the tech industry. Wake up and smell the roses in this regard. If the share price was not running well ahead of sales you would not be part of a revolutionary technology company. I could list plenty of examples because it is what happens with every single tech company but the current classic is Tesla.

3. The importance of this announcement today, to me, is not what the share price will do it is final confirmation of two things:

a) The company and Tony Dawe predicted this and it has come to pass as has everything else they have told us to date leave aside occassional delays - so there is no doubt the company speaks the truth and can be relied upon;

b) The signing of Renesas was not a one off and the company is no longer speculative on any sensible interpretation of the meaning of that word.

My opinion only DYOR
FF

AKIDA BALLISTA