Core Viewpoint - Innoviz Technologies, Cron AI, and D2 Traffic Technologies have announced a collaboration to address barriers to LiDAR deployment in intelligent transport systems (ITS), perimeter security, and infrastructure intelligence by integrating their technologies [1][5]. Group 1: Technology Integration - The collaboration combines Innoviz's rugged LiDAR sensor, InnovizSmart, with Cron AI's edge-native 3D perception platform, senseEDGE, and D2 Traffic Technologies' expertise in local deployment [1]. - This integration aims to resolve three key challenges in LiDAR adoption: unreliable perception, fragmented hardware/software stacks, and the lack of field-ready deployment tools [1]. Group 2: Performance Metrics - InnovizSMART can return 5.76 million points-per-second with a single reflection and has a range capability of 450 meters, enabling superior detection of vehicles and Vulnerable Road Users (VRUs) compared to other sensors [2]. - When combined with Cron AI's senseEDGE software, the LiDAR data is processed at the edge, providing real-time insights without cloud dependency [2]. Group 3: Market Context - The global ITS market is projected to reach USD 73.76 billion by 2034, growing at a CAGR of 6.64%, with North America expected to account for USD 16.67 billion in 2024 and grow at 6.65% annually over the next decade [5][7]. - The collaboration offers a scalable and ROI-driven pathway for LiDAR adoption in various sectors, including ITS, rail, security, and smart city deployments [5]. Group 4: Implementation and Demonstration - The latest D2 VIA solution will be installed at three key intersections in Atlanta, with a live demonstration scheduled at the ITS World Congress from August 24-29, 2025 [6][7].

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $9.7 million, bringing the first half total to $27.1 million, exceeding the total revenue for all of 2024 [4][25] - Cash burn for the quarter was $7.3 million, consistent with guidance for single-digit cash burn, and a decrease from $20.7 million in Q1 2025 [5][12] - The company ended Q2 with approximately $79.4 million in cash and cash equivalents [11][25] - Gross margins for the quarter were approximately 16.31% [26] Business Line Data and Key Metrics Changes - The revenue increase was driven by LiDAR unit sales and non-recurring engineering (NRE) payments [10][28] - The company has begun shipping units from Fabrinet's high-volume production line to meet growing demand [22][23] - NRE bookings for the year have already exceeded $20 million, prompting an increase in guidance for NRE bookings to $30 million to $60 million [12][24] Market Data and Key Metrics Changes - The company is engaged with two out of the top five global automotive OEMs, which together represent nearly one-fifth of the global auto market share [31] - There is a growing recognition in the industry that LiDAR technology is essential for safe autonomous driving, as evidenced by the acceleration of robotaxi deployments [16][32] Company Strategy and Development Direction - The company aims to become the world's premier large-scale provider of best-in-class LiDAR solutions for autonomous driving and beyond [32] - Innovus Smart was launched for non-automotive applications, with partnerships established for security and safety projects [17][19] - The company is focusing on tightly managing cash burn while ramping up production and securing additional design wins in both automotive and non-automotive segments [30][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting financial targets for 2025, with expectations of more than a twofold increase in revenues year-over-year [23][24] - The company is optimistic about growth opportunities in the non-automotive sector, which offers higher average selling prices (ASPs) and margins compared to automotive [80] - The operational environment is described as a "gold rush" for autonomous driving, with increased interest from traditional OEMs and commercial vehicle manufacturers [52][66] Other Important Information - The company is launching an at-the-market (ATM) program for $75 million to support general business purposes and maintain liquidity [27][28] - Innovus Smart is integrated with NVIDIA Jetson, enhancing its appeal for developers in various applications [19][66] Q&A Session Summary Question: What is needed for the development program with the top five auto OEM to become a series production win? - Management indicated that they have already started working on the program towards the SOP in 2027 and are finalizing contract details [37] Question: What are the expected annual volumes if the development program becomes a series production award? - Management noted that the volumes are high, and discussions are ongoing about potentially expanding to short-range LiDAR for other programs [38][39] Question: How quickly does the company plan to use the $75 million ATM announced? - Management stated that they will use the ATM opportunistically to buffer lumpiness related to NRE payments and maintain liquidity [40][42] Question: What is different about the current development agreement compared to previous ones? - Management explained that the current agreement allows for modifications to requirements while working on contract details, similar to past experiences with other OEMs [46][49] Question: Does the acceleration of robotaxi deployments benefit level three programs? - Management clarified that while there is increased interest in autonomy, level three and level four programs are somewhat distinct and cater to different market needs [51] Question: How does the company plan to tune LiDAR for industrial applications? - Management confirmed that Innovus Smart is based on the same LiDAR technology used in automotive applications, meeting functional safety requirements [57][60] Question: What is the strategy for selecting customers and managing engineering resources? - Management emphasized that 95% of their focus remains on automotive, while also leveraging excess production capacity to penetrate non-automotive markets [64][66]