from Year 1.
NEOMORPHIC™ SSI · MANAGEMENT GROWTH PLAN
$155M company revenue in Year 1. $1.605B in Year 3. Positive net income from launch year.
The lead case reflects the management objective to exceed $100M annual revenue in Year 1 and $1B in Year 3. Year 1 is the first 12 commercial months, with paid enterprise, operator and OEM scopes beginning during that year.
| Management target / USD millions | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Phoenix revenue | 115.5 | 473.1 | 1,262.4 |
| Total company revenue | 155.0 | 611.7 | 1,604.9 |
| Gross profit | 112.7 | 452.3 | 1,190.2 |
| Operating expense | 59.0 | 159.0 | 357.0 |
| EBITDA | 53.7 | 293.3 | 833.2 |
| Net income | 39.3 | 216.8 | 617.2 |
| Free cash flow | 89.6 | 352.6 | 953.9 |
Distribution begins alongside enterprise sales
Phoenix targets $115.5M of Year 1 revenue through enterprise licenses, operators and OEM/SDK agreements. SSI/Memory licenses and implementation services bring the company total to $155M. Retained accounts, larger new scopes and broader distribution produce the Year 3 $1.605B target.
The model includes the sales, engineering, direct delivery costs, taxes and working capital supporting this pace. Separate sensitivities test slower commercialization and collection timing.
Presentation: 3sky.ai/deck
Management-target scenarios and required commercial assumptions; not booked revenue or achieved profit.
The contracts behind
$155M in Year 1.
| Year 1 revenue stream | Required commercial scope | Revenue $M |
|---|---|---|
| SSI / Memory licenses | 50 licenses × $1M annual value × 50% recognition | 25.0 |
| Phoenix enterprise | 120 licenses × $1M annual value × 50% recognition | 60.0 |
| Operator agreements | 40 eligible EB × $0.0004375 per GB | 17.5 |
| OEM / optional SDK | 8 average platforms × $2.5M + 120M units × $0.15 | 38.0 |
| Implementation | 145 enterprise parent deployments × $100K | 14.5 |
| Total company | First 12 commercial months | 155.0 |
Enterprise scope and recognition
The plan targets 50 SSI and 120 Phoenix enterprise licenses at $1M average new annual value. Contracts begin throughout Year 1, giving 50% first-year revenue recognition. Twenty-five overlapping buyers yield 145 enterprise parent customers.
Operator and OEM economics
Forty eligible EB at $0.0004375 per GB generate $17.5M operator revenue. The fee is a 25% share of modeled net customer savings. OEM/SDK revenue combines $20M of average platform fees and $18M from covered paid implementations. These are distinct contracted scopes.
The Year 3 build
| Driver | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| New SSI licenses | 50 | 100 | 180 |
| New Phoenix licenses | 120 | 250 | 500 |
| Phoenix new annual value | $1.0M | $1.2M | $1.5M |
| Eligible operator traffic | 40 EB | 200 EB | 500 EB |
| Covered SDK units | 120M | 400M | 900M |
Phoenix enterprise revenue reaches $803.6M in Year 3; operator and OEM/SDK add $218.8M and $240M, taking Phoenix beyond $1.26B.
The longer-term scale path
| Commercial year | Company target $B | Phoenix target $B | Expanded company $B |
|---|---|---|---|
| 1 | 0.155 | 0.116 | 0.256 |
| 2 | 0.612 | 0.473 | 1.015 |
| 3 | 1.605 | 1.262 | 2.676 |
| 4 | 3.081 | 2.432 | 5.171 |
| 5 | 5.050 | 3.956 | 8.503 |
| 6 | 7.635 | 5.920 | 12.883 |
| 7 | 10.883 | 8.358 | 18.398 |
| 8 | 14.882 | 11.339 | 25.196 |
| 9 | 19.648 | 14.859 | 33.305 |
| 10 | 25.288 | 19.007 | 42.907 |
The PDF chart plots Years 1–5 for company revenue, Phoenix revenue and the expanded company scenario. The table provides the full ten-year values.
Management target remains the lead case
The company plan reaches $5.05B in Year 5 and $25.29B in Year 10. The expanded distribution case reaches $2.68B in Year 3 and $8.50B in Year 5. Its assumptions include 50% more new accounts, eligible traffic and covered units; 15% higher new enterprise/platform fees; and 60% more opex and capex.
The ten-year extension expresses the disclosed operating assumptions at scale. It carries no assigned probability. Delayed commercialization and isolated price or collection stresses remain separately labeled in the workbook.
The broader Phoenix opportunity
| Phoenix revenue capture | Annual revenue / 2030 pool |
|---|---|
| 0.1% | $143M |
| 0.5% | $715M |
| 1.0% | $1.43B |
| 2.0% | $2.86B |
| 5.0% | $7.15B |
Management’s $143B codec-addressable 2030 pool shows the value of modest revenue capture: $715M at 0.5%, $1.43B at 1%, and $7.15B at 5%. The contract forecast and this market view are not added together.
Capital supports commercial expansion
The original plan seeks $20M initial seed. Year 1 budgets $59M opex, $6M capex and $42.35M direct costs, supported by customer receipts. Annual advance enterprise invoicing and 45-day collections produce $204.03M of Year 1 receipts and a $9.08M minimum month-end cash balance over the first 24 months.
Sensitivity is a separate decision tool
The lead case targets $39.34M Year 1 net income. A 50% first-year sales reduction at the same mix and fixed expense produces approximately a $3.9M net loss. A 90-day additional receipt delay requires approximately $18.49M more cash to maintain a $5M buffer. These stresses identify execution requirements without replacing the lead target.
The original $250M Year 3 expansion financing remains an option. The model also shows cash without that round; operations are already cash-generative under the lead assumptions.
Presentation: 3sky.ai/deck
All company values are scenario outputs. The $143B pool is a management sizing assumption, distinct from third-party sector forecasts and current contracted business.
The 120-month global-IP expansion case
The original management plan remains the lead commercial commitment for planning: $155M in Year 1 and $1.605B in Year 3. A separate global-IP case shows the larger opportunity from hardware distribution, deployed runtimes and sovereign programs.
| Commercial year | Original lead revenue | Global-IP expansion revenue | Expansion net income |
|---|---|---|---|
| Year 1 | $155.0M | $155.0M | $39.3M |
| Year 2 | $611.7M | $1.66B | $791.3M |
| Year 3 | $1.60B | $5.22B | $2.74B |
| Year 4 | $3.08B | $9.04B | $4.77B |
| Year 5 | $5.05B | $13.53B | $7.07B |
| Year 6 | $7.63B | $18.56B | $9.60B |
| Year 7 | $10.88B | $24.29B | $12.45B |
| Year 8 | $14.88B | $30.90B | $15.72B |
| Year 9 | $19.65B | $38.65B | $19.58B |
| Year 10 | $25.29B | $47.34B | $23.94B |
The expansion model contains 120 monthly periods and eleven separately scheduled licensing cohorts. From Month 13, it removes the original OEM platform and SDK line and substitutes the new global-IP schedules. Original enterprise, operator and service revenue continues on distinct paid scopes. The two cases are alternatives, not revenue added together.
A defined path to the larger numbers
Each cohort has an activation month, non-recurring engineering (NRE) delivery term, annual minimum, covered-unit price, annual volume schedule, renewal rate and direct-cost rate. The model adds a dedicated hardware/IP operating program, capital expenditure, invoicing and collection schedules. All named accounts are proposed targets; there are no assumed signed contracts represented as actual results.
The Year 10 case earns approximately $23.89B from the global-IP cohorts, including $3.47B in sovereign license revenue. Combined with the retained core scopes, total modeled revenue reaches $47.34B. This is the economic potential of broad multigeneration adoption, with the required coverage exposed in the workbook.
How platform licensing compounds
The PDF chart compares original lead and global-IP company revenue across ten years. The following table gives the values; IP Annual contains the underlying workbook data.
One accepted implementation can generate successive years of licensed shipments, deployed runtime use and supported product generations. The global-IP case models these mechanisms separately and replaces the original OEM/SDK line from Year 2.
| Company revenue / USD billions | Year 3 | Year 5 | Year 10 |
|---|---|---|---|
| Original management lead | 1.605 | 5.050 | 25.288 |
| Global-IP expansion | 5.216 | 13.526 | 47.335 |
| Global-IP cohort contribution within expansion | 3.851 | 9.017 | 23.892 |
Device distribution and recurring infrastructure
Shipped-component royalties follow product adoption. Active-device and accelerator licenses renew over the installed covered fleet. Additional product families expand the paid unit base. The proposed minimums and implementation fees support integration, while reported usage controls earned royalties.
A sovereign portfolio contributes billions annually
The expansion case recognizes approximately $300M in sovereign licenses in Year 3, $960M in Year 5 and $3.47B in Year 10. The annual volume assumptions reach forty $100M programs before renewal weighting. Each represents a defined, funded scope; a multiyear purchasing ceiling is not annual revenue.
The graph and table link to the workbook’s annual summaries, which reconcile to all 120 monthly periods. Coverage, pricing, activation dates, renewals and expenses remain editable. These are adoption scenarios rather than a valuation or a statement of signed pipeline.
What drives the global licensing revenue
| Proposed cohort | Paid unit / price | Initial activation | Year 10 coverage before renewal weighting |
|---|---|---|---|
| MediaTek | Shipped SoC / $0.50 | Month 19 | 2.0B annual units |
| Apple | Active device / $1 per year | Month 19 | 1.5B active devices |
| NVIDIA | New accelerator / $100 | Month 19 | 20M annual units |
| AWS | Active accelerator / $600 per year | Month 13 | 10M active units |
| Active accelerator / $600 per year | Month 19 | 9M active units | |
| Microsoft | Active accelerator / $600 per year | Month 19 | 10M active units |
| Intel | Processor/controller / $2 | Month 25 | 250M annual units |
| IBM | Active controller / $100 per year | Month 13 | 2M active units |
| Additional memory IP | Covered component / $0.20 | Month 31 | 2B annual units |
| Other edge OEMs | Covered component / $0.10 | Month 25 | 8B annual units |
| Sovereign portfolio | Funded program / $100M per year | Month 25 | 40 annual programs |
These are editable adoption assumptions, not disclosed customer fleets or shipment forecasts. Annual renewal weighting is 98%; volumes are conditional on retained contracts. The forecast’s active-unit inputs represent annual average covered installations. Shipped-unit inputs represent newly covered annual shipments. Both are prorated for the cohort’s activation date.
Convert a target into an earned royalty
The buyer first accepts the workload result and licensed scope. Software or firmware deployment can then expand across approved units. New silicon integration follows architecture acceptance, implementation, verification and product qualification. The Month 13–25 entries assume initial supported software/platform deployments; new hardware designs require their own release gates.
The model credits annual minimums against running royalties. Integration fees are separate delivered services. Additional memory and edge cohorts exclude units already paid under the named manufacturer cohorts. Cloud runtime and chip royalties cover distinct functionality; identical rights are charged once.
Monthly cash, delivery cost and capital
The model provides separate Lead 120 Months and IP 120 Months schedules, with annual reconciliation and a balance-sheet check in every expansion month. Commercial Month 1 is the first month of launch; January 2027 is an editable calendar reference.
Preserve the original commercial targets
The lead case includes $20M seed, $59M Year 1 opex, $6M capex and $42.35M direct costs. It targets $240M billings, $204.03M customer collections and $39.34M net income in Year 1. Annual enterprise invoices and 45-day collections support the working-capital profile. A $250M Year 3 financing option remains separate from revenue.
Fund the global-IP delivery program
The expansion adds R&D, sales/channel and IP/security/G&A spending of $60M in Year 2, $120M in Year 3 and $1.10B in Year 10. Incremental capex rises from $10M in Year 2 to $150M in Year 10. Direct license costs range from 10–18% for hardware and cloud cohorts and 35% for sovereign programs; integration delivery costs are modeled at 70% of integration revenue.
These assumptions fund an asset-light licensing organization and its software, qualification and support work. They do not include building semiconductor fabs, purchasing customer fleets or financing national infrastructure construction. Such obligations would require a separate capital plan.
Cash follows the executed terms
The new license schedules invoice annual floors and integration fees upfront, earn them over their service periods and bill excess royalties monthly. Collections lag new-IP invoices by two months; direct-cost payments lag by one. Annual tax expense uses a simplified 25% rate on positive EBIT, with quarterly cash payments. Capex is depreciated over 60 months for the added IP program.
Under the expansion assumptions, Year 3 ends with approximately $3.81B cash and Year 10 with $101.89B. These undistributed balances reflect no dividends, acquisitions or buybacks. They are not additional revenue or a valuation. The workbook exposes price, coverage and activation-delay controls so readers can assess the collection and adoption requirements directly. A 20% unit-price reduction yields $4.45B Year 3 and $42.56B Year 10 revenue; a twelve-month activation and volume delay yields $2.52B and $43.95B, with other inputs unchanged. Annual minimums limit the effect of lower covered usage.
Win a workload. Qualify a platform. Expand the fleet.
Months 1–6: commercial proof and paid integration
Execute the original enterprise and operator launch plan while forming named platform account teams. Build one customer-owned benchmark package for storage, transmission and persistent AI memory, with exact reconstruction, current-release identifiers and cost-per-task comparisons. Negotiate paid evaluations with explicit success criteria and access to representative workloads.
Months 7–18: supported software and design commitments
Deliver production SDKs, runtime adapters, telemetry and compatibility support. Quantify unit economics on customer hardware, then negotiate minimum license commitments, audit mechanisms and product-family rights. Start hardware feasibility work with architecture teams: synthesis, power, performance, area, worst-case latency and memory overhead.
Months 19–36: broader device and cloud entitlement
Expand accepted deployments across covered platforms. The new model activates device cohorts from Month 19, Intel and additional edge designs from Month 25, and additional memory-IP designs from Month 31. These dates are commercial assumptions; each hardware release must satisfy its own qualification gate. Sovereign programs enter from Month 25 through funded scopes and authorized environments.
Months 37–120: successive generations and territories
Renew supported runtimes, expand eligible fleets and add paid product generations. Build regional deployment capacity and authorized partners. Monitor customer concentration, discounting, technical substitution and the share of royalties tied to a single platform. Renewal rights should maintain value through software and hardware refreshes.
The account review that controls expansion
Track benchmark acceptance; paid evaluation value; implementation milestones; signed minimums; eligible shipped or active units; net price; recognized revenue; collections; support cost; and retained customer savings. A target account becomes a forecasted contract only when the internal sales stage and evidence justify it.
The ambition is worldwide device and infrastructure distribution. The operating mechanism is repeated, measurable acceptance by platform owners, with unit-based licensing that preserves customer economics and scales across future generations.