The announcement states several points that we must either accept as being true or rejecting as hype. I see no reason not to accept them as being true, and unequivocal in their import. It seems that a lot of posters are still quite gun shy about AKP's announcements, and persist in doubting clear statements. I underline below sections that I feel are definitive.
29 January 2021 - REVIEW OF OPERATIONS
Achievements during the reporting period were technical in nature, focused on advancing the Company’s proven prototype technologies into a mass-production product. The primary focus of the period has been an intensive effort overcoming what are believed to be the final technical hurdles required for technology demonstration and volume production of our revolutionary MEMS digital speaker.
[Are these expressions of wishful thinking or statements of achievement? Believe it or don't. That is what they have said has happened and is happening.]
Our previous report (Oct-2020) updated our advancements toward the production of engineering samples. As informed, wafers of both the full and simplified chip structures were tested, measured, producing sound and music inside our cleanroom (sample recordings were posted on our website). This achievement provided the reliance needed to requisition wafers containing various aspects required to package the chips.
[Again this indicates that the co is satisfied that at least some of the wafers are ready to be turned into chips. This means completing the processing steps needed to permit the MEMS to be packaged. This is a definitive step from which there is no return. They are satisfied that time has arrived.]
The principal differences between wafers compliant for packaging and those that are not, are:
* Wafers for packaging contain critical metal layers that permit direct and indirect wire bonded connections between the MEMS Transducer chip and our proprietary embedded ASIC controller. At this time the addition of these layers necessitates removal of the sacrificial layers, used during wafer fabrication, to be conducted by a third-party vendor.
* Wafers for packaging require singulation (dicing) of the wafer into individual chips (dies). This process at this time also requires the services of an external vendor that uses an innovative sawless technique to dice wafers such as ours that are vulnerable to contamination prior to packaging.
[I think this process is being done by more than one 3rd party contractor. One being the manufacturer of the metalising equipment that was said to have demonstrated the process earlier (pre COVID). This may or may not be the packaging contractor that cuts the wafer up into dies and then joins the MEMS onto the ASIC and the outer packaging, including the protective film. These are both in Germany if I recall. Clearly this involves risk.]
Until these processes are brought inhouse (during mass production phase), these two additional steps present the company with rather considerable technical and logistical challenges in producing packaged chips that permit development and demonstration of the acoustic output capabilities outside the very noisy and cumbersome environment of the cleanroom.
[They have previously indicated that they would like to bring these processes in house (Tel Aviv? Sydney?) for the final mass production phase. Moving the wafers between these contractors sites is undoubtedly a logistical issue given their vulnerability between the two process steps, and especially during COVID. The wording (...until...) suggests that there are two phases being considered. The first sounds like they are committing a subset of their available wafers to get demonstrable chips in adequate volumes for evaluation by prospective customers. The second is the true mass production process in a commercial fab at full commercial volumes.]
The resurgent outburst of COVID-19 worldwide in particular in Israelandat the third-party vendor locations caused rather considerable delays to our original demo scheduling, from late December 2020 to the currently advised timetable at or before the end of February 2021. Management is very pleased to inform that we have a substantial number of very high- profile customers eagerly awaiting our out-of-cleanroom demonstration.
[The fab is in Israel but the 3rd party locations are not in Israel. Demos were originally scheduled for Dec 20 but were delayed by COVID lockdowns. They have now been scheduled for at or before end of Feb 21. Major prospective customers will be attending these demos. Again this is clear and unequivocal. We either believe what has been said or we choose not to. So long as the packaging processes do not fail there will be finished chips and big customers will be coming tor see and hear them. That is very reassuring, and certainly floats my boat!]
In parallel significant progress has been made during this reporting period on a variety of fronts. The primary focus of such activities has been advancing the electronics and algorithms to better serve product demonstration capabilities. This included various electronics and boards that enable single and multichip demonstration, the development of a suite of additional algorithms offering varied and improved functionality for both the simplified and full structure architecture, as well as the transition of our algorithms to firmware.
[But wait - there's more! The delays have permitted development of augmented capabilities for the chips. We have long been aware that the chip offers directional sound, differential volumes, beamed sound, ultrasonic location of objects in front of the devices for gesture recognition etc. While not specifically referring to them these are all likely to be of significant interest to the prospective customers. This is just what we would like to be able to show.]
Additional activities included among others, qualitative and quantitative improvements to our test and measurement capabilities through the design and construction of multiples of dedicated probe stations that enable us to test more wafers for longer periods of time, the introduction of significant advancements to our measurement techniques and capabilities that not only improve measurement resolution and accuracy but also provide a dramatic reduction in the amount of time it takes to conduct various measurements, as well as the invaluable expansion of our proprietary data collection, analytical and simulation tools and capabilities.
[And still more! Multiple advanced testers ("probers") allows testing at production scales of more and better data, faster. That is pertinent as commercial level production volumes get closer to reality.]
Four additional patents have been granted to the company during the reporting period.
[And the IP is being protected too.]
This announcement has been authorized for release to ASX by Fred Bart, Chairman.
So there we have it. Read what has actually been said, and approved for release, and choose whether to believe it or not. Given what has been said the time for second guessing what they could possibly mean is getting towards its end.
The situation as far as I am concerned is that there is still a window of risk until the chips are successfully packaged, after which demonstrations are imminent and will depend more on COVID's impact on travel and shipping than anything else.
I would be very surprised at this stage if AP's technical craftsmen (and women?) have not already picked and probed every detail of their samples to to death in their assessment of their readiness for packaging and demonstration. I would be confident that if the packaging works out the chips will perform to expectation and will do things nothing has ever done before. And that is less than a month away.
The supplementary release of the 4C confirms to me that they expect to have to pay out for the work done in getting the samples to this stage and completing them as expected. And that they have very eager investors ready to grab a share of the company as soon as they confirm the product is a goer. They don't expect finding funding will be an issue from that point onwards.
This all sounds like pumping I guess, but I have waited since 2012 for this stage to roll around, and everything I hear now ticks all the boxes I have waited a long time to tick!
GLTAH and DYOR, this is not intended nor offered as financial advice.
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