Ann: Megachips License Agreement, page-478

Hi Quatrojos

I think we should forego short term advantage and respect Brainchips mission and not kick the sleeping dog.

If you read the Pitt Street Research report from this year reading between the lines and given in the reported earnings in the 4C’s one can assume Renesas paid around the $1 million for the IP licence the following is possibly a very well informed Example of what Renesas will mean.

Example: Assume BRN entered into a licencing agreement with a customer to licence its technology with specific integration requirements.

Terms could include US$500k of NRE fees, US$1m of one-time licencing fees and 5% royalty on sales from each of its chips that incorporates Akida.

Further assume that this customer will sell 1m, 5m and 10m of these chips in years 1 through 3, respectively, at US$25 each.

In this example the company will recognise the following three revenue streams from this customer:1) NRE fees of US$0.5m.

2) One-time licencing fees of US$1m before the start of production.

3) Royalties of US$1.25m (1m x US$25 x 5%), US$6.25m and US$12.5m, respectively, in the first three years of production

Having just read the Pitt Street Research Report again with the knowledge of what has transpired I would highly recommend a revisit as it clearly has been very much in touch with the spirits as it has clearly foretold the future from what I/we now know from recent events and discoveries.

As Molly used to say ‘Do yourself a favour’ and give it another read. $1.50 sounds very realistic as a present value NOW.

My opinion only DYOR
FF

AKIDA BALLISTA