I thought you were smarter than that...
Signing a contract with no license fee for IP:
- Signing a contract is market sensitive and it needs to be disclosed as an announcement – even if there is no upfront cash. That’s a cash flow issue.
- The Auditors will want revenue recognition on the transaction – waiving the IP license fee for higher royalty is accountable in the books and will require disclosure in the accounts.
Arm may waive the upfront fee but they can afford to BUT if 2.0 has been adopted ie a contract then it has to be disclosed because royalties will be forthcoming.
2024 BrainChip Discussion, page-4552
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