BrainChip will generate revenue from three primary sources - licensing fees, NRE fees and royalty payments.

The Company will generate licensing fees by providing its SNAP technology via a complete development solution to partners and semiconductor companies that want to enter the neuromorphic semiconductor chip market. These licensees are expected to design and manufacture applications utilizing the BrainChip SNAP technology, which will generate NRE fees. The chip is then incorporated into a digital electronic product which is sold to the consumer.

In addition to NRE and licensing fees, BrainChip will receive royalties, typically based on a percentage of the chip price for every chip sold by the semiconductor and partner company containing BrainChip's SNAP technology.

Many customers will be able to re-use the same SNAP technology in many different chips going into a broad range of end markets, with each new chip starting a new income stream of license fees, NRE fees and royalties.

Three Revenue sources:

  1. Licensing Revenue – SNAP licensed to OEM customers and semiconductor companies.
  2. NRE Revenue – The semiconductor company designs and manufactures a specific chip utilizing SNAP technology with other technologies. The chip is incorporated into a digital electronic product and sold to the OEM consumer to go into the end user products. BrainChip will generate service income in customizing SNAP technology to the client application.
  3. Royalty Revenue – BrainChip receives a royalty for every chip with SNAP technology sold, typically based on a percentage of chip price.