Update on EAP, page-8

Hi Rg

Three stages to think about:

1. Customer in 2019/2020 either as a result of being approved or after open access was given accessed the AKIDA Development Environment (the ADE) and may also have been if approved provided with the IP to play with and see what might be possible. The ADE was implemented with only 200 neurons so not a patch on AKD1000 in its final SoC form.

2. Then in October/November, 2020 Brainchip received the AKD1000 engineering samples and put them in Boards and shipped them to the about 2 dozen customers who were interested in pursuing the use of the IP or the AKD1000 chip.

These customers were restricted to about 2 dozen so that Brainchip could provide engineering support to the customers so that the revolutionary nature of AKD1000 was more easily implemented into whatever product or idea the EAP customer was considering in the most efficient way.

3. At the conclusion of stage 2. and bearing in mind stage 2. had Christmas in between, so take out a couple of weeks, there has been barely three months of testing and Board level consideration by these EAPS as at today. If an EAP has decided to take the relationship further the parties will commence contract negotiations.

In other words we will have our lawyers contact your lawyers and get a contract drawn up and so off it goes into the legal black hole with draft after draft being sent backwards and forwards between the lawyers and lengthy Board meetings at BRN's end until finally the contract including the price have been agreed andeveryone is happy. Three to six months would not be unusual in fact often is longer.

So at the moment Brainchip is well within these timelines and Renesas and NASA were very much bonus announcements coming as quickly as they did which actually should be a cause for great confidence not a cause for has something gone wrong what about the others.

My opinion only.
FF.