Ad 1) The ADRC IoT stack is the heart of the technology
The ADRC IoT Stack (IoT stack) contains the essence of XPE’s technology to manage wireless communications between devices. This key technology is patented under number 9,136,913 in the United States, China, Japan, Russia (and others) with patents pending in Europe and Australia (PCT/AU2010/000358).
The IoT stack includes XPE’s hardware design for the modules that go into the devices, the connectivity and communications protocols as well as the RML File.
The IoT stack is available in various configurations for OEM’s and electronics companies to purchase depending on the level of integration they require. Typically, the more elaborate solutions will be more expensive. We estimate prices/license fees for XPE’s solution to range between US$0.10 for high volume applications and US$20/25 for fully integrated modules.
Alternatively, XPE may sell its technology through a royalty arrangement, i.e. a percentage per product sold.
(2)A complete module with integrated ADRC chipset
This is the most comprehensive solution XPE offers customers and involves integrating the entire ADRC module into a customer’s device. For instance, an OEM may sell an IoT gateway product for industrial infrastructure devices that uses gateway technology, such as Intel’s DK100 IoT Gateway (formerly known as Moon Island). These gateways form the connection between individual devices and the Internet connecting them to a Datacenter/Cloud environment as illustrated in Figure 5. XPE’s technology is compatible with Intel’s technology and OEM’s may integrate technology from Intel and XPE into one, single gateway.
(3)Chip-only solution requiring design-in by customers
Another way for customers to use XPE’s solution is to only purchase the chip design and further integrate this into their own products. For instance, Chinese chip designer Telink Semiconductor (Telink) is integrating XPE’s IoT firmware into one of its Integrated Circuits (IC’s) aimed at various end markets, including consumer electronics, lighting, healthcare, wearables and smart toys (i.e. toys connected to the Internet). In turn, Telink sells its chip designs to a range of companies active in these various end markets.
(4)Firmware-only solutions Customers with proprietary semiconductor technology or with large electronic design departments can purchase firmware-only solutions from XPE. Firmware is a system’s “resident” software that controls, monitors and processes data within devices and systems. Customers, such as large consumer electronics companies, can integrate XPE’s firmware into their products, e.g. smart TV’s, using their own semiconductor design and chipsets.
Per Xped Presentation: Pg 16
Value Proposition: 3 streams of different revenue for different parties.
For Lenze:
Page 14 of Xped Presentation Telink:
Agreement: Channel partner agreement for Xped Platform,
Licensing of ADRC Proxy firmware for Bluetooth SoCs,
Joint development of new SoCs
Lenze
License ADRC technology and Xped Infrastructure Platform
I am of the same opinion as Rayda that there is no additional 17.8% fee for Telink's chip based on the fact that the arrangement was on the basis of Channel partner agreement for XIP. IMO, this arrangement may not apply to all Telink's partners/clients.
Solekai's terms are different from Lenze. I think different parties pay different fees. As per page 16 of Xped Presentation.
XPE Price at posting:
2.2¢ Sentiment: Hold Disclosure: Held
(20min delay)