Climate Change Data

Environmental Metrics

Social Achievements

• Implemented work-from-home procedures during the COVID-19 pandemic; maintained compliance with government mandates and health agency protocols, including masking requirements and encouraging vaccination; increased cleaning procedures and provided cleaning supplies; implemented policies and practices to support employee safety, health, and well-being; strive for continuous improvement in diversity and inclusivity among employees, management, and board of directors.

Climate Goals & Targets

Environmental Challenges

• Operating losses since inception and expectation of significant losses in the future; dependence on one customer (Microsoft) for revenue; material weakness in internal controls identified in 2021; stock price fluctuation and volatility; lack of financial resources relative to competitors; difficulty in qualifying contract manufacturers and partners; dependence on third parties for development, manufacturing, sales, and marketing; potential lawsuits related to technology use; challenges in managing expansion effectively; potential impact of environmental, health, and safety regulations; impact of worldwide political and economic uncertainties; risks associated with acquisitions; potential damage or disruption to suppliers' facilities; challenges in obtaining effective intellectual property protection; potential significant product liability claims; potential impact of information technology system failures; loss of key personnel; adverse effects of COVID-19 pandemic; failure to secure series production awards for automotive lidar solutions; complexity of products and potential for unforeseen delays or expenses; adverse conditions in the automotive industry; developments in alternative technologies; delayed adoption of ADAS features by OEMs; difficulty in forecasting customer adoption rates and selling prices.

Mitigation Strategies

• Prioritizing the health and safety of employees by adapting workplace policies; working to establish direct marketing and co-development relationships with OEMs; seeking additional capital through equity or debt securities, product sales, and licensing activities; implementing a remediation plan to address material weakness in internal controls; developing strategic relationships with suppliers; seeking patent protection for technology; implementing policies and practices to support employee safety, health, and well-being; entering into foreign currency hedges to offset material exposure to currency fluctuations; investing in the integration of acquired assets and businesses; maintaining insurance coverage to address cyber risks and product liability; investing in research and development to maintain technology leadership and improve performance; building partnerships with OEMs and Tier 1 automotive suppliers.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Social Achievements

• Continued focus on employee well-being and skill building through continuous learning and reward programs.
• Strive for continuous improvement in diversity and inclusivity among employees, management, and board of directors.

Governance Achievements

• Adopted a Policy on Recoupment of Incentive Compensation in November 2023 to comply with new regulatory requirements.

Environmental Challenges

• History of operating losses and expectation of continued losses.
• Revenue generated from a small number of customers.
• Material weakness in internal controls identified in the past.
• Stock price volatility.
• Difficulty in qualifying contract manufacturers and managing supply chain.
• Competition from larger, better-resourced companies.
• Potential lawsuits related to intellectual property.
• Challenges in managing expansion effectively.
• Risks related to cybersecurity incidents.
• Potential product liability claims.
• Dependence on key personnel.
• Challenges in securing series production awards from automotive OEMs.
• Complexity of products and potential for unforeseen delays or expenses.
• Adverse conditions in the automotive industry and global economy.
• Potential for alternative technologies to affect demand.
• Potential delays in ADAS adoption by OEMs.
• Difficulty in forecasting customer adoption rates and selling prices.
• Uncertainty in market opportunity estimates and growth forecasts.

Mitigation Strategies

• Seeking additional capital through equity or debt issuance, development revenue, product sales, and licensing.
• Strengthening internal controls and compliance programs.
• Implementing improvements in financial and managerial controls, reporting systems, and procedures.
• Investing in manufacturing capabilities.
• Building partnerships with OEMs and Tier 1 automotive suppliers.
• Seeking intellectual property protection.
• Implementing measures to safeguard information systems and protect against cybersecurity threats.
• Maintaining insurance coverage to address certain aspects of cyber risks and product liability.
• Attracting and retaining qualified personnel.
• Focusing on timely investments in the correct market opportunities.

Supply Chain Management

Climate-Related Risks & Opportunities