NUH (ASX) Ann: March 2024 Quarterly Appendix 4C

Originally posted by Teddyward: ↑

I would love to see the internal business case ( assuming there was a complete thought process with numbers attached) that CEO presented to follow the current pathway and each monthly review as the writing gradually got written on the wall and the actions of the board? It would be a revelation to understand just why they chose this massive high risk and expensive strategy.. IMO the same chip was to be used by NUH in their devices and also to be marketed by RT and integration into non NUH devices / applications

IMO we don't know the fine details that should have been given regarding why a RK person came to NUH and if RK has access to chip at special terms to market to its clients. That per clip is a important % or number . Obviously now chip is produced ( assuming it is working to spec or the software workarounds will work ) they can now approach clients . It is not a quick process and never expect RK to go early to clients without working complete product they are happy to put their name on.
No consulting income on quarterlys to see so I assume things have not progressed to any early stage intergration work internally with RT or with RT external clients.

We are still back at the base questions
What competitive advantage does NUH product have in regards to hardware - chip or software that can't be achieved with another chip? The theory and hints were less bluetooth lag ,more efficient sound and ANC processing , compactness and overall battery efficiency in a format that would fit in bud format.
The time delays have meant that the market has moved ( since NUH started this build its own chip) on and other chips are available
What was the cost of using existing available chips ( now with better bluetooth integration, more inputs and outputs and massive processing power) and what prevents NUH software running on such competitors chips? What specific commercial advantage was there in building own chip?

So 6 mill in cash to RT and we don't know what else spent in time and internal resources now do we know what RT put in and what they actually get apart from 1st access to sell to their clients?

Why wouldn't RT add more cash - well hey have seen the chip and its performance and are not as interested ? or they have IMO NUH by balls anyway so will be in control if administration happens to they can do what they want then . At no point do they want the whole ASX company as it complicates things when if they want it they look to be able to achieve technology anyway. RT has keys to everything as their contracts for production etc will always allow them a way out.

The recent cash thrown in is a massive gamble IMO by those concerned and not sure they got enough leverage for the risk based on public information as they are gambling against RT ultimately who has both time and $ and may be in a pissed off position .

What i do wonder with all this time delay is why? Is there a legal dispute going on and needs time to get to a point that can be announced and using strategic review due to financial position as an excuse? Is there an awareness that XX$ are required to get to FDA approval where then there is actually a trigger in existing MOU and agreements that help further funding options and lift NUH out of gutter ?

One thing I can say is that any potential client will look at history or company and will be e=very suspicious and want a risk free deal when dealing with such a partner so again RT have NUH by balls IMO as they are the intermediary and reputation carrier in every deal and IMO can negotiate hard so NUH may not be in a strong position and be a price taker at every level in regards to any lic of software, sale of chips or any other combination even if NUH are the party that brings in the client.

Why did RT invest - well they got a man on the inside and a full look under the bonnet but it hasn't progressed fast enough and possibly the potential they though was there that they could leverage off is not as expected or performance is not greater than competition etc etc hence no more $ in

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A few points
1) Its around $4-$5mln not $6mln. Not sure where this $6mln number is coming from
2) chip development takes time, how do you know it hasnt progressed fast enough?
3) The commercial advantage of working with a chip maker is that you effective set up a platform which you can leverage to a variety of products and a single chip solutions offers significant advantages over a multi chip solution. The other question is whether there is one chip or multiple versions of the one chip?
4) I dont think RealTek was ever interested in NUH’s buds , NUH building buds and trying to sell them appears to be an indulgence that RealTek was allowing NUH. If it worked great. I always go back to Leroy’s presentation, it was completely at odds with Miller , he was prepared to give Miller the benefit of the doubt it appears. In fact it appears RealTek were prepared to back Miller’s strategy, give it a chance as they say, that is now well and truly over it seams. There is no way RealTek’s business case could stand if the chip was for exclusive NUH use. Perhaps this is where any conflict centres around non exclusivity vs exclusivity.
5) RealTek is about selling chips and NUH has the R&D for this, forget the buds for a moment, that is what makes this a great platform to on sell to 3rd parties. They need to make the correct decisions around this. The history of the company being a ear bud maker wont matter in this context.
6) They do have a working chip and that was demonstrated at last yrs Automic conference and by all reports to potential customers at CES. Unless Miller has lied and completely misled the market we have to assume that the chip is complete or just about complete. In the most recent announcements they talk about finalising the chip, but they could mean anything. If the chip wasnt completed and working and the 4Gen product functional, what were they showing people at the CES?