Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreased product demand due to market fluctuations and potential obsolescence.
• Lengthy sales cycle leading to delays between R&D investment and revenue generation.
• Potential defects in complex products causing delays and additional costs.
• Reliance on a small number of customers for revenue.
• Significant competition from larger companies with more resources.
• Dependence on third-party distributors and sales representatives.
• Risk of losing key personnel.
• Reliance on industry partners for operations.
• Liquidity concerns and need for future financing.
• Protection of intellectual property.
• Potential intellectual property litigation.
• Reliance on information technology systems.
• Risks associated with foreign operations.
• Managing growth effectively.
• Potential for claims, insurance issues, and litigation.
• Tax risks in multiple jurisdictions.
• Price and volatility of public stock.

Mitigation Strategies

• Anticipating market trends and developing products to meet customer requirements.
• Implementing programs to increase software solution content and services.
• Improving manufacturing yield, increasing efficiencies, and optimizing manufacturing batch sizes.
• Negotiating lower pricing for products and assembly costs.
• Reducing logistics costs through larger shipment sizes.
• Expediting product development and investing in R&D.
• Restructuring operations to reduce overhead.
• Securing debt and equity financing.
• Reaching an agreement with the secured convertible debenture holder to exchange debt for shares.
• Implementing security procedures for information technology systems.
• Focusing on managing costs and expenses.
• Seeking shareholder approval for debt-to-equity conversion.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Received Silver Status Award from Rockwell Collins for superior supplier performance.
• Settled a claim by a former executive.

Governance Achievements

• Shareholders approved a resolution authorizing LaSalle Capital Group II-A L.P. as a Control Person.
• Exchanged debt for shares with note holders and trade creditors.

Climate Goals & Targets

Environmental Challenges

• Cash constraints in 2014 leading to delays in new product introductions.
• Lower margins on frequency controllers and timing devices business.
• High logistics costs due to air shipments.
• Lengthy sales cycle (2-3 years for revenue generation).
• Reliance on a small number of customers (mitigated by Precision Devices acquisition).
• Significant competition.
• Reliance on third-party distributors and sales representatives.
• Potential loss of key personnel.
• Limited financial resources requiring additional financing.
• Risk of increased interest rates.
• Limited market liquidity for shares.
• Limited intellectual property protection.
• Potential for intellectual property litigation.
• Reliance on information technology systems.
• Foreign operations risks.
• Managing growth and expanding capabilities.

Mitigation Strategies

• Hiring of Vice President of Engineering and establishment of a new D&E center in Hyderabad, India.
• Manufacturing cost reductions (improving yield, efficiencies, batch sizes).
• Pricing review and price increases for some legacy products.
• Negotiating lower pricing for products and assembly costs as production runs increase.
• Acquisition of Precision Devices to diversify customer base.
• Focus on managing costs and expenses.
• Investment to support growth.
• Securing debt and equity financing.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Silver Status Award from Rockwell Collins