Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Lower volume and COVID-19 related issues impacting total revenue.
• Dependence on certain principal customers (top two customers accounted for approximately 84% of net sales in 2020).
• Limited marketing and sales capabilities outside North America.
• Potential loss of key management personnel.
• Changes in strategies of key trade customers.
• Potential harm from disasters or adverse events.
• Adverse impact from public health epidemics or outbreaks (COVID-19).
• Competition from firms with greater financial resources.
• Uncertainty regarding development of markets for some products.
• Failure to comply with debt covenants.
• Lack of credit and/or limited financing availability.
• Need for capital expenditures to maintain and improve facilities.
• Cyber and other security threats or disruptions.
• Potential unenforceability of patents and proprietary rights.
• Failure to protect proprietary information.
• Rapid technological changes in the industry.
• Limited market for common stock, making it difficult for shareholders to resell shares.
• Compliance with anti-corruption laws (FCPA).
• Environmental compliance costs and liabilities.
• Increasing costs of being a public company.
• Regulation from the Dodd-Frank Act (conflict minerals).
• Potential harm from significant tariffs or other restrictions on imports.

Mitigation Strategies

• Contingency plans to respond to changes in business and maintain financial flexibility (reviewing capital expenditures, operating expenses, and inventory).
• Developing marketing and sales capabilities.
• Implementing new employee retention strategies.
• Developing new products and increasing revenue and presence in new markets.
• Renewed line of credit with Huntington National Bank for $1 million.
• Implementing various procedures and controls to monitor and mitigate cyber and security threats.
• Relying on confidentiality agreements, internal procedures, and nondisclosure agreements to protect intellectual property.
• Focusing development efforts on sputtering targets and integrating advances into the thin film coatings industry.
• Continuing to monitor policies and procedures to ensure compliance with the FCPA and other anti-corruption laws.
• Conducting an analysis of products and supply chain for conflict minerals (3TG).

Supply Chain Management

Responsible Procurement

• Identified several suppliers capable of minimizing potential disruption in business.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Global semiconductor chip shortage
• COVID-19 pandemic impact on customer demand

Mitigation Strategies

• Contingency plans including reviewing capital expenditures, operating expenses, and inventory alignment
• Monitoring COVID-19 situation and adapting to changes
• Active monitoring of supply chain and customer impacts

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Established alternate vendors to ensure material availability

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Electrically conductive Molybdenum Oxide material
• Electrically conductive Zinc Tin Oxide for Solar, Architectural Glass and ThinFilm Transistors
• Specialty materials for additive manufacturing
• Sputtering targets for transparent electronic applications
• Near infrared doped phosphors and short-wave infrared applications

Awards & Recognition

• Not disclosed