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Aurora Innovation(AUR) - 2023 Q4 - Annual Report

PART I Item 1. Business. Aurora develops the Aurora Driver, a self-driving platform for trucking and mobility, commercialized via a DaaS model - Aurora's mission is to deliver the benefits of self-driving technology safely, quickly, and broadly14 - The core product is the Aurora Driver, a self-driving hardware, software, and data services platform designed to adapt across various vehicle types and applications1535 - The company intends to commercialize the Aurora Driver using a 'Driver as a Service' (DaaS) business model, where it supplies self-driving technology and earns revenue on a fee per mile basis, partnering with automotive companies and fleet operators1737 - Aurora plans to launch its driverless trucking subscription service, Aurora Horizon, as its first commercial product, followed by passenger mobility (Aurora Connect) and local goods delivery15212224 - Strategic partnerships include PACCAR & Volvo (Class 8 trucks), Toyota (vehicle manufacturing), Uber (ride hailing), and Continental (technology manufacturing and Tier 1 automotive supplier)17325354555758 - Key technological differentiators include proprietary FirstLight Lidar (FMCW technology) for long-range sensing and simultaneous position/velocity detection, a hybrid machine learning and engineered approach, a common driver platform, a proprietary Virtual Testing Suite, and scalable high-definition maps1729414548 - As of December 31, 2023, Aurora has an approximately 1,800-person team, with about 1,600 focused on engineering and product, and holds over 1,600 awarded and pending patents worldwide172852 Corporate History and Background Company Overview Commercialization & Growth Strategy Aurora's Competitive Advantages Our Product Technology Our Culture Competition Intellectual Property Material Agreements Government Regulation Corporate Social Responsibility and Sustainability Diversity and Inclusion Sustainability Employees Corporate Information Available Information Item 1A. Risk Factors. Aurora faces risks from technical commercialization, ongoing losses, competition, capital, and regulatory hurdles - Aurora has incurred net losses of $796 million in 2023 and $1,723 million in 2022, and expects to incur significant expenses and continuing losses for the foreseeable future74 - The company operates in a highly competitive market with some participants having substantially greater resources, posing a risk if competitors commercialize superior technology earlier81 - Aurora's business plans require significant capital, and future needs may necessitate additional equity or debt financing, potentially diluting stockholders90 - The company is subject to cybersecurity risks impacting operational systems, security systems, infrastructure, integrated software, and partners' data99 - Burdensome or inconsistent regulations, or a failure to receive regulatory approvals or exemptions for its technology, could materially and adversely affect business operations122 - The market price and trading volume of Aurora's common stock may be volatile and could decline significantly due to various factors, including market expectations, competition, and economic conditions167 Risks Related to Our Technology, Business Model and Industry Risks Related to Our Business Operations Risks Related to Our Dependence on Third Parties Risks Related to Our Legal and Regulatory Environment Risks Related to Our Intellectual Property Rights Risks Related to Ownership of Our Securities Item 1B. Unresolved Staff Comments. The company has no unresolved staff comments from the SEC - There are no unresolved staff comments180 Item 1C. Cybersecurity. Aurora has a robust cybersecurity risk management program, led by the VP of Security Engineering, integrated with overall risk management - Aurora's Information Security team, led by the Vice President of Security Engineering, has implemented a robust cybersecurity risk management program integrated with overall risk management180 - The program includes a cybersecurity incident response procedure (CIRP) for detection, investigation, and mitigation of incidents180 - Periodic internal and third-party assessments are performed, with results reported to the Board of Directors and senior leadership182 - As of December 31, 2023, the company does not believe cybersecurity risks have materially affected or are reasonably likely to materially affect its business strategy, results of operations, or financial condition183 Risk Management and Strategy Risks from Threats and Incidents Governance Item 2. Properties. Aurora's corporate headquarters are in Pittsburgh, PA, where it leases significant office and industrial space, including a test track - Corporate headquarters are located in Pittsburgh, Pennsylvania185 - Leases approximately 590,000 square feet of office and industrial space in Pittsburgh, with leases expiring between 2024 and 2035185 - Leases a 42-acre test track facility in Pittsburgh, with the lease expiring in 2024185 - Maintains other leased office and industrial facilities in Mountain View, San Francisco, Bozeman, Dallas/Fort Worth, El Paso, Houston, Seattle, Livonia, and Louisville185 Item 3. Legal Proceedings. Aurora is subject to various claims and lawsuits but none are considered material or likely to have a material adverse effect - No currently pending claims, lawsuits, or proceedings are considered material to the business or likely to result in a material adverse effect on future operating results, financial condition, or cash flows186 Item 4. Mine Safety Disclosures. This item is not applicable to Aurora Innovation, Inc - This item is not applicable187 PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.](index=