Q&A - unanswered questions

Q:You have been hashing for quite a while now at the office. What can you say about the specs? Does it look good?

A: The most important take away is that it confirms that the techniques we are using works in reality and not only in simulation. It also improves our confidence in the power simulations being accurate, which ultmately leads to techincal confidence before the presale launch. Taking the design to a commercial ASIC involves multiplying up the tile that has been tested with potential improvements.
The whole process of validating as thoroughly as we have is not so common in our industry. Being western, listed, and accountable differentiates us from the actors that rush products to the market.

Q: Please explain why market situation for filecoin is bearish at the moment

A: When we started looking into Filecoin, FIL was around $60. Today it is around $3,8.
Fundamentally speaking, we believe there is too much committed storage and too little usage of that storage. Filecoin+, where a storage provider and a client agrees on the terms could in theory 10x your earnings. Long term, we are of the opinion that there are interesting niches within filecoin where our architecture could fit well, like sealing-as-a-service or seal-and-host. These markets, however, aren’t really developed yet.

Q:For how long are you sufficiently funded?

A: With todays burn-rate, we should have multiple years of runway after the commercial tape-out.

Q:what kind of EBITDA-margin is realistic?

A: Without commenting on EBITDA-margins, we have communicated that gross margins should be similar to other specialized B2B hardware sales. An interesting peer to look at could for instance be Napatech. In the short term, gross margins will rely heavily on the yield curve. The chosen process node is relatively well tried, but the exact curve varies from design to design and its content, and the summary of all previous designs that has been produced is under strict NDA.