Member Info for Peoplepower1

Openspaces, how are royalties one sixth of revenue when royalties revenue for fy 2019 was A$1,076,225 from total revenue of A$3,204,551. This is closer to one third than to one sixth. It's my understanding that there were no licence fees at all paid in fy 2019. It was all royalties. AVX paid their licence fees in 2016, 2017 and 2018.

There are rampers and derampers of shares.

I think your negative comments may inadvertently cause deramping of the share price by frightening some shareholders into selling their shares at a loss.

Please think on this before commenting.

Openspaces, here are the expenses for Cap-xx for Final Year 2019:-

Annual Accounts - Final Year 2019

General and Administrative Expenses - A$2,084,468

Process and Engineering Expenses - A$914,453

Selling and Marketing Expenses - A$743,678

Research and Development Expenses - A$1,547,361

Share Based Expense - A$859,483

Other expenses - A$71,822

Total Expenses - A$6,221,265

Cap-xx need revenue of A$6,221,265 to break even. The goal of Cap-xx in all their recent annual reports has been to break even.

Cap-xx's biggest assets are their patents, hence the court cases for the same two Cap-xx patents against Tesla Maxwell Technologies, Ioxus and Cornell Dubilier Electronics (CDE). CDE have agreed a settlement. It is the same Judge for all 3 court cases so he knows CDE has already reached an agreement with Cap-xx.

Cap-xx have licence agreements with Murata, AVX, TDK and CDE. The more large companies selling Cap-xx products the better for Cap-xx because Cap-xx products get more known, more widely used and become the go to products to buy.

Cap-xx have added 3 more licensees in the last 3 years AVX, TDK and CDE. AVX in March 2016, TDK in October 2018 and CDE in July 2019. Cap-xx are getting there.

Think of the saying, slowly, slowly catch your monkey.

Openspaces, I think Cap-xx may do licencing agreements to suit what's best for Cap-xx at the time. So if it's better, for example, to go for upfront licence fees with maybe a reduced royalties percentage then they go for this and if it's better not to go for upfront licence fees with a higher royalties percentage then they go for this.

Also the type and number of patents may come into play for which is more lucrative, i.e. upfront licence fees with maybe a reduced royalties percentage or no upfront licence fees with a higher royalties percentage.

My thoughts and others may have other thoughts on here.

man2061 - this means that a proposed joint claim construction order is for Ioxus and Cap-xx. Nothing to do with the Tesla Maxwell Technologies case Claretjay. Both cases are separate.

This proposed joint claim construction order is to agree the meanings of the following terms:-

Volumetric figure of merit or FOM for Cap-xx's U.S. Patent No. 6,920,034 - Charge Storage Device

Gravimetric figure of merit or FOM for Cap-xx's U.S. Patents No. 6,920,034 - Charge Storage Device and U.S. Patent No. 7,382,600 - Charge Storage Device

Gravimetric power maximum for Cap-xx's U.S. Patent No. 6,920,034 - Charge Storage Device

Volumetric power maximum for Cap-xx's U.S. Patent No. 6,920,034 - Charge Storage Device

Great than about 3.2watts/cm3 for U.S. Patent No. 6,920,034 - Charge Storage Device

Maximum operating voltage for both patents

less than about 4 volts, less than about 3.5 volts, less than about 3 volts for both patents

range of about 3.2 watts/cm3 to 4 watts/cm3, range of about 4 watts/cm3 to 5 watts/cm3, range of about 5 watts/cm3 to 7 watts/cm3, range of about 7 watts/cm3 to 8 watts/cm3 - all for patent ending 034

greater than about for both patents

greater than about 2.1 watts/gram for both patents

about for both patents

Proposed Joint Claim Construction Order are both parties Ioxus and Cap-xx to agree on the meaning of these terms.

You can join Pacer for a 14 day free trial and pay 10 cents for each page of any court case document you want to download. After 14 days it is USD 49.99 a month. By signing up for the free 14 day trial for pacer you then get an activation code sent from Pacer within about 10 days and then you can access the court documents for free and cancel the 14 day trial because the documents are free.

Hope that helps.

Openspaces, I have shown below the annual revenue with the amounts for licence fees and royalties revenue from 2016 to 2019:-

2019 Annual Report Revenue was A$3,204,551 - Licence fees and royalties revenue was A$1,076,225

2018 Annual Report Revenue was A$4,905,687 - Licence fees and royalties revenue was A$1,366,369 (however Licence fees and royalties revenue for 2018 was stated as A$2,215,070 in the annual report for final year 2019)

2017 Annual Report Revenue was A$4,142119 - Licence fees and royalties revenue was A$1,224,290

2016 Annual Report Revenue was A$3,156,448 Licence fees and royalties revenue was A$1,809,000

We know that in 2019 there were no licence fees paid into the Licence fees and royalties revenue for 2019 so the A$1,076,225 is all royalties revenue for 2019. We know that there were licence fees paid in 2016, 2017 and 2018. We know the licence fee from AVX paid in 2016 was A$1.26m so that may mean the royalties in 2016 could have been A$549,000 and in 2019 the royalties revenue had gone up to A$1,076,225 so royalties revenue is increasing. It looks to me like there may be more money to be made from royalties in the future. This may also be a reason for what may seem as a lack of licence fees as well as the number of patents and what patents companies wish to licence. The number of patents and what patents licenced may be more lucrative in royalties revenue than licence fees in the future. I would think Cap-xx when agreeing licences will take into account which patents may be worth more in royalties revenue and which patents may be worth more in up front licencing agreements hence why there may be a difference in licence agreements. These are my thoughts and others may have different thoughts they'd like to share here.

I did speculate Openspaces by saying in my comment below - My thinking, I may be wrong, is the licence fees and royalities may well depend on how many patents and what patents a company is licencing.

Openspaces, it is stated as licence fees and royalties and not just royalties on the annual report for final year 2019.

My understanding is that the decrease from 2018 to 2019 was not only the AVX licence fee, it was also the US China Trade War which affected sales to Spire. Global business has been affected by the US China Trade War and Brexit. Both have had an effect on sales and investment.

As stated previously, CAP-XX will licence to AVX its patents on a non exclusive basis for a range of prisma c and cylindrical supercapacitor sizes. Under the terms of the licence, CAP-XX expects to receive upfront licence fees over a three year period and a 5% royalty for the life of the patents, based on the volume of sales of supercapacitors sold by AVX covered by CAP-XX patents. The last of the CAP-XX patents granted expires in 2029. New patents applied for by CAP-XX will extend this date beyond 2029 once granted. The initial upfront licence fees receivable by CAP-XX for the first twelve months will be a minimum of £1.26 million, with payments in subsequent years being subject to AVX maintaining the licence.

This was on the RNS released on 22 March 2016 for the AVX Technology Licence Agreement.

AVX are licencing a range of prisma c and cylindrical supercapacitor sizes. Questions about licence fees and royalties could be asked by you, Openspaces, at the AGM. My thinking, I may be wrong, is the licence fees and royalities may well depend on how many patents and what patents a company is licencing.

Regarding TDK Tradingdutchman there is no breakdown for battery related.

Cap-xx have licence agreements with Murata, AVX, TDK and Cornell Dubilier Electronics (CDE).

CAP-XX has licence agreements with TDK Corporation, Murata, AVX and Cornell Dubilier Electronics (CDE)

TDK licence a family of CAP-XX’s patents on a non exclusive basis for a range of supercapacitor sizes.

TDK is one of the World’s largest electronic component suppliers, with sales in excess of US$11 billion and over 100,000 employees.

The royalty rate to be paid to CAP-XX from TDK is in line with the royalty rate agreed to in other licence agreements previously announced with Murata and AVX.

Apple is TDK’s biggest customer, accounting for more than 11% of sales.

https://www.afs.enea.it/lampasi/workshopsupercapacitors/ws2019/ranalli2019.pdf

International Workshop on Supercapacitor and Energy Storage Bologna by Marco Ranalli General Manager Cap-xx

https://www.murata.com/~/media/webrenewal/products/capacitor/edlc/techguide/electrical/c2m1cxs-053.ashx

https://www.murata.com/en-eu/products/productdetail?partno=DMF3Z5R5H474M3DTA0

Traction in SMD EDLC Chip Packages:

The double layer carbon supercapacitor surface mount “slim-line” designs are just now gaining momentum and have a different business model, so the verdict is still out on how well the SMD chip supercapacitor will fare as a viable load leveling solution for portable electronics, but obviously, since Murata Manufacturing has licensed the technology to manufacture the slim-line EDLC chip designs from Cap-XX, the future vision of their use in portable electronics is alive and well.

CAP-XX will licence to AVX its patents on a non exclusive basis for a range of prisma c and cylindrical supercapacitor sizes. Under the terms of the licence, CAP-XX expects to receive upfront licence fees over a three year period and a 5% royalty for the life of the patents, based on the volume of sales of supercapacitors sold by AVX covered by CAP-XX patents. The last of the CAP-XX patents granted expires in 2029. New patents applied for by CAP-XX will extend this date beyond 2029 once granted. The initial upfront licence fees receivable by CAP-XX for the first twelve months will be a minimum of £1.26 million, with payments in subsequent years being subject to AVX maintaining the licence.

This was on the RNS released on 22 March 2016 for the AVX Technology Licence Agreement.

AVX are licencing a range of prisma c and cylindrical supercapacitor sizes.

CAP-XX is pleased to announce that, following a court action, it has reached agreement with Cornell-Dubilier Electronics Inc. (CDE), whereby CDE will licence two of CAP-XX's patents on a non-exclusive basis.

This was on the RNS released on 2 July 2019 for Cap-xx - US Court Action Settlement and Licence Agreement.

CDE are licencing two of Cap-xx's patents.

This is how easy it is to attend the AGM by phone and ask the questions you keep asking on here. If you want to know the answers then attend the AGM and ask.

It’s on the third page of the link below so you'll need to scroll past the proxy form to the third page where it states as follows:-

Shareholders may listen to the Annual General Meeting by phoning +61 2 8077 0506 (UK +44 330 390 2112) and when prompted keying in access code 886943 followed by the hash key. An opportunity will be given also to those shareholders to ask questions.

Please note, if you can’t find the + symbol on your phone, you can also use 0044 330 390 2112.

https://www.cap-xx.com/wp-content/uploads/2019/11/Proxy-Form-2019.pdf

CDE agreed a settlement to the court case brought by Cap-xx against CDE for patent infringement.

This means CDE have a licencing agreement with Cap-xx to manufacture and sell Cap-xx products.

https://www.mouser.co.uk/new/cornell-dubilier/cde-edc-eds-supercapacitors/

The new 3V supercapacitors eliminate the need for low-dropout (LDO) voltage regulators or buck converters to step the voltage down to work with the industry’s existing 2.7V-rated thin, prismatic supercapacitors. CAP-XX is initially targeting markets using 3V coin cell batteries, where popular batteries such as the CR2032 have reasonable energy (~220mAh) but have trouble delivering the peak power (~100mA) needed for data collection and transmission. The CAP-XX devices can handle those power bursts and can be placed directly across the battery without the intermediary LDO.

The new 3 Volt prismatic supercapacitor product is attracting significant interest especially for products using 3V coin cell batteries and new Internet of Things (IoT) products and is expected to be a significant source of revenue going forward.

Statement from FY 2019 Cap-xx Report

https://markets.businessinsider.com/news/stocks/cornell-dubilier-introduces-coin-cell-style-electric-double-layer-supercapacitors-that-provide-memory-backup-in-circuits-up-to-6-3-wvdc-1028509003