Ann: Lenze App Delivered, page-220

Following my post yesterday:

"being US$ 0.15 per active download of the DeB used to remotely control one ADRC-enabled device. For future applications, including the ADRC device proxy, the ADRC daemon and XPE’s Remote Modelling Language (RML), a license fee of US$ 1.00 per gateway applies in situations where multiple devices are being controlled from the DeB requiring connectivity other than ADRC (e.g. Wi-Fi, ZigBee) and US$ 2.00 per device in case the customer devices require use of XPE’s full infrastructure platform."

My reading of above:

future applications and require use ..... means "ongoing use of device".

8 March 2017 Announcement

Business Development & Engineering
Xped advises that it will be dispatching 3 Engineering Staff, and 2 consultants to Shenzhen Lenze next week alongside senior management from both Telink and Xped.  The purpose of this trip is to finalize modifications requested by Lenze to make the Xped app more appealing to the Chinese market. Lenze has agreed to use the Xped app for its new “Bluetooth I‐Charger” device and as announce previously, a royalty bearing license agreement is in place.

Current sales for the “Bluetooth I‐Charger” are consistently tracking in excess of 2 million units per month. It is anticipated that downloads of the Xped/Lenze app in China will begin slowly and increase as more of Lenze’s device are made controllable through the app.


Based on this announcement, I take an estimate of sales of 2 million units of iCharger per month to be used for calculation of revenue from iCharger for Xped.


24 Jan 2017 Announcement

Xped will receive payments monthly based on licensing fees that were negotiated
from the Xped standard rate card being:
 Per active download per device: USD $0.15
 Per system on chip per gateway: USD $1.00
 Per gateway to utilize Xped Infrastructure Platform: USD $2.00


My reading of above announcement:

Xped will charge a monthly licensing fee based on negotiated terms which are based on the above Xped standard rate card.


19 May 2017 Announcement

Lenze will pay Xped a license fee based on a per “Active” download of Lenze or OEM branded versions of the Xped App from either Google Play or Apple app stores. A download is considered “Active” when it is started by the user and it detects an iCharger or Smart iPark Lead device and logs the device’s details to the Xped Cloud. Xped will receive payments monthly based on negotiated licensing fees. The details of the license agreement are commercially confidential information.

My reading of above announcement based on following statement:

"A download is considered “Active” when it is started by the user and it detects an iCharger or Smart iPark Lead device and logs the device’s details to the Xped Cloud."

may be "A negotiated fee which combined all 3 elements of licensing fees per device basis for Lenze".

Scenario (1)

Based on Xped standard rate card being:-

 Per active download per device: USD $0.15
 Per system on chip per gateway: USD $1.00
 Per gateway to utilize Xped Infrastructure Platform: USD $2.00

** Per active download per device:
2.0 million units x USD$0.15 = USD$300K  (AUD$400K)

** Per system-on-chip per gateway :
(my reading from latest announcement: BLE is the gateway - 1 gateway. Every
device will have a chip ie hence, every chip will have a "system-on-chip")

2.0 million units x USD$1.00 = USD$2.0 million (AUD2,666,666)

** Per gateway to utilize Xped Infrastructure Platform :

  2.0 million units x USD2.00 = USD$4.0 million (AUD5,333,333)

Hence, per month licensing fees for 2.0 million units of iCharger based on Xped standard fee chart: AUD400K + AUD2,666,666 + AUD5,333,333 = AUD8,399,999.


That seems a lot. Did I go wrong anywhere? Is my definition and estimate of system-on-chip correct? Anyone?

Scenario (2)

Based on my assumption of the announcement that "A negotiated fee which combined all 3 elements of licensing fees per device basis for Lenze",

and a licensing fee charged of say USD1.60 (rounded up from USD1.575) per device (on a 50% discount for all 3 standard fees which should be conservative enough IMO),

The estimated monthly licensing fee for iCharger will be,

2 million units x USD1.60 per device = USD3.2 million (AUD4,266,666).


Any comment, anyone?


JMO PDYOR