Cepton, Inc.

Greetings and welcome to the Q4 and full year 2023 Septon Business Update and Earnings Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Dennis Chong, interim CFO. Thank you, Dennis. You may begin.

Thank you, and welcome to SEPTOM's fourth quarter and full year 2023 earnings call and business update. With me today are Jun Pei, co-founder and chief executive officer, and Mitch Cortini, chief commercial officer. During the call, we may refer to our unaudited GAAP and non-GAAP measures in our earnings release. The non-GAAP financial measures should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with U.S. GAAP. Reconciliations for non-GAAP measures are included in our earnings release. I would like to remind everyone that comments made in this conference call may include forward-looking statements regarding the company's expected operational and financial performance for future periods. These statements are based on the company's current expectations and are subject to the safe harbor statements relating to forward-looking statements contained in our earnings release. and the presentation slides that accompany this call. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of risks, uncertainties, or other factors, including those discussed in the earnings release or during today's call and those described in our filings with the US Securities and Exchange Commission. We're not undertaking any commitment to update these statements as a result of future events, except as required by law. As a quick reminder, this call is being recorded, and you can find the earnings release and presentation slides that accompany this call, as well as the webcast replay of this call at www.investors.septown.com. Now I would like to turn the call over to Jun.

Thank you, Dennis, and good afternoon, everyone. Thank you for joining SEPTOWN's fourth quarter and full year 2023 earnings call. We will provide a business update and review our financial results with you. There's quite a bit of news within the industry these past few months, and specifically regarding Septon. First, I'd like to congratulate our team on exceeding our FY23 revenue guidance with a record $13.1 million in recorded revenue and preparing us for growth with the launch of our new LiDAR product, Septon Ultra at CES 2024. These are two major accomplishments that keeps us at the forefront of this industry. First, on our latest long-range LiDAR product, Septon Ultra, demonstrated at CES 2024. Septon Ultra, or Ultra, represents a pinnacle in LiDAR technology, boasting a remarkable long detection range of up to 300 meters at 10% reflectivity, ultra-high resolution, with software-definable regions of interest, and the distinction of being the world's slimmest adaptive long-range LiDAR. This design enables seamless integration into various vehicle locations, maintaining aesthetic appeal, and reducing aerodynamic impact. At its core, Stepton Ultra leverages our next-generation imaging technology, MagnoSteer. alongside with a proprietary chipset SOC to significantly enhance point cloud quality while minimizing cost, footprint, and power consumption. This strategic blend of advanced features is designed to deliver an optimal balance of performance, cost, and reliability making Ultra not just a technological marvel, but also a viable solution for mass market adoption across automotive, smart infrastructure, and various other applications. Moving on to a piece of industry news that creates significant opportunity and competitive edge for SEPTA. In a significant development that has considerable implications for the global LiDAR industry, A prominent Chinese LiDAR company on January 25, 2024, was added to the 1260H list of Chinese military companies by the U.S. government. This designation, which highlights entities believed to be affiliated with the Chinese military and defense sectors, has underscored the complexities and risks associated with American business engaging in partnerships or transactions with firms listed under such a category. This development has prompted many US corporations to reassess their supply chain strategies and partnerships, aiming to mitigate risks associated with compliance, geopolitical tensions, and national security concerns. We believe this event is a significant opportunity and a catalyst for growth for our company, as the stakeholders and partners in the industry seek alternatives to navigate away from the potential risks posed by sourcing from entities on the 1260H list, Cefton, as a U.S. company, has emerged as a viable and secure partner and a supplier for LIDARs. This shift not only highlights our commitment to adhering to international regulations and safeguarding our operations from geopolitical uncertainties, but also reinforces our position as a trusted leader in the LiDAR technology sector. Our competitive advantage to offer reliable LiDAR supply amidst these challenging times has further solidified our market presence and opened new avenues for growth and collaboration. Lastly, I want to briefly touch upon some recent news on the GM series production cancellation and a letter of indication from our Tier 1 partner and shareholder, Coito Manufacturing, which were both disclosed in more details in our Form 8 case. On December 11, 2023, Coito informed us that the original equipment manufacturer that awarded Coito the Series Production Award has decided to re-scope its ADAS product offerings, and as a result, All outstanding purchase orders from Coetel to the company that relate to the series production award have been canceled. As is customary, when an automotive program changes, Chef Tong initiated actions to secure project investment cost recovery related to any delay or cancellation of an existing program. On December 21, 2023, we announced that we have received a non-binding proposal from COETO to acquire 100% of the outstanding shares of SEPTON, not currently owned by COETO. SEPTON's Board of Directors, via a special committee, is currently evaluating the indication of interest among other strategic options with assistance from financial and legal advisors. No assurance can be given that a definitive transaction with respect to COETO's indication of interest or any other potential transaction will eventually be consummated. As we have discussed in prior quarters, we are continuing to build our business and delivered yet another record-setting quarter for revenue. Steptown remains steadfast in pursuing opportunities in automotive and remains in good position to win additional series production award with sourcing decisions on the horizon. With that, I'll turn it over to Mish for details on our efforts with customer programs.