The purpose of this is to help understanding how to convert decimal to binary. The sticks measure exactly 128mm, 64mm, 32mm, 16mm, 8mm, 4mm, 2mm and 1mm.
Start with 101 decimal for example. Draw a line 101 mm long. Now you have to put some sticks side by side so that the total length matches exactly the line you drew. There is only one way to do that !
Now, looking at the base plate, starting with the longest stick, when a stick is in, you count a 0, when a stick is out, you count a one.
The picture show that 101 decimal is 01100101 binary.