LeddarTech Announces Strategic License Agreement With Solid State LiDAR Protection Inc.
Rhea-AI Summary
LeddarTech Holdings Inc. (Nasdaq: LDTC) has announced a strategic license agreement with Solid State LiDAR Protection Inc. This agreement allows Solid State LiDAR Protection to produce and market LeddarTech's advanced LiDAR module and sensor products. These solid-state LiDARs have been successful across various applications, with over 65,000 units delivered since 2010.
Under the agreement, Solid State LiDAR Protection will rebrand and commercialize the products, while LeddarTech will receive royalty payments from sales. This marks the closure of LeddarTech's remaining LiDAR activities. The deal, along with two other strategic licenses established in 2023, highlights LeddarTech's focus on AI-driven automotive software solutions for ADAS and autonomous driving.
The agreement ensures that all aspects of the business, including technology, manufacturing, and commercialization, remain in Quebec, Canada, managed by Canadian companies.
Positive
- Strategic license agreement allows for continued production and marketing of LeddarTech's LiDAR products
- LeddarTech to receive royalty payments from product sales
- Over 65,000 LiDAR units delivered since 2010, demonstrating product success
- Agreement aligns with LeddarTech's focus on AI-driven automotive software solutions
- Business operations to remain in Quebec, Canada, supporting local economy
Negative
- Closure of all remaining LiDAR activities at LeddarTech
- Potential loss of direct revenue from LiDAR product sales, replaced by royalty-based income
Insights
LeddarTech's strategic license agreement with Solid State LiDAR Protection represents a significant business model transition that reshapes the company's future trajectory. This deal transfers LeddarTech's LiDAR module production and marketing rights while establishing a royalty-based revenue stream, coinciding with the closure of all remaining LiDAR operations at LeddarTech.
This agreement marks the third strategic licensing partnership since 2023, confirming LeddarTech's deliberate pivot toward becoming a pure automotive software company. By divesting hardware operations while retaining intellectual property rights, LeddarTech is executing a transition to what they describe as a "low-touch, high-margin, royalty-based licensing business model."
The arrangement allows LeddarTech to monetize technology that has proven market acceptance (over 65,000 units shipped since 2010) while focusing resources entirely on their LeddarVision™ AI-based sensor fusion and perception software for ADAS and autonomous driving applications. This shift aligns with industry trends favoring specialized software providers in the autonomous vehicle technology stack.
For a company with LeddarTech's market capitalization of approximately $22M, this strategic focus may help concentrate resources on higher-margin software opportunities. While the financial terms and expected royalty contribution remain undisclosed, this agreement completes LeddarTech's transition to a pure-play automotive software company with a recurring revenue component through these technology licensing arrangements.
QUEBEC CITY, Canada, Oct. 04, 2024 (GLOBE NEWSWIRE) -- LeddarTech® Holdings Inc. (“LeddarTech”) (Nasdaq: LDTC), an automotive software company that provides patented disruptive AI-based low-level sensor fusion and perception software technology, LeddarVision™, for ADAS, AD and parking applications, is pleased to announce the conclusion of a strategic license agreement with Solid State LiDAR Protection Inc.
This partnership grants Solid State LiDAR Protection the rights to produce and market LeddarTech’s advanced LiDAR module and sensor products. These proven, true solid-state LiDARs are exceptionally robust and have been instrumental across a wide range of applications, with over 65,000 units delivered since 2010.
Under the terms of the agreement, Solid State LiDAR Protection will rebrand and commercialize the products, and LeddarTech will receive royalty payments from the sale of these products. This milestone coincides with the closure of all remaining LiDAR activities at LeddarTech.
The agreement, along with two other strategic licenses established in 2023 with key partners, underscores LeddarTech’s commitment to AI-driven automotive software solutions for advanced driver assistance systems (ADAS) and autonomous driving (AD). LeddarTech’s LiDAR technology assets have been pivotal in establishing a low-touch, high-margin, royalty-based licensing business model.
“We are thrilled to partner with Solid State LiDAR Protection to serve the LiDAR market with the technology and products developed at LeddarTech,” said Michael Poulin, Vice-President of Corporate Strategy and Development at LeddarTech. “We take pride in the continuity of a business that has evolved over nearly two decades, ensuring that all aspects—business, technology, manufacturing and commercialization—remain in Quebec, Canada, managed by Canadian companies with headquarters and a majority of employees based in Quebec.”
Allan Lee, President of Solid-State LiDAR Protection Inc., stated: “This licensing agreement with LeddarTech aligns perfectly with our vision to bring advanced, solid-state LiDAR solutions to the market. The robustness and proven performance of LeddarTech’s technology provide a significant competitive advantage that will enhance our product offerings and support the evolving needs of our customers worldwide.”
About Solid State LiDAR Protection Inc.
Solid State LiDAR Protection is a leading company dedicated to developing and commercializing advanced LiDAR technologies. With a strong commitment to innovation and excellence, the company aims to enhance the safety and efficiency of automated systems worldwide.
Sales contact: allan.lee@sslidar.com
About LeddarTech
A global software company founded in 2007 and headquartered in Quebec City with additional R&D centers in Montreal and Tel Aviv, Israel, LeddarTech develops and provides comprehensive AI-based low-level sensor fusion and perception software solutions that enable the deployment of ADAS, autonomous driving (AD) and parking applications. LeddarTech’s automotive-grade software applies advanced AI and computer vision algorithms to generate accurate 3D models of the environment to achieve better decision making and safer navigation. This high-performance, scalable, cost-effective technology is available to OEMs and Tier 1-2 suppliers to efficiently implement automotive and off-road vehicle ADAS solutions.
LeddarTech is responsible for several remote-sensing innovations, with over 160 patent applications (87 granted) that enhance ADAS, AD and parking capabilities. Better awareness around the vehicle is critical in making global mobility safer, more efficient, sustainable and affordable: this is what drives LeddarTech to seek to become the most widely adopted sensor fusion and perception software solution.
Additional information about LeddarTech is accessible at www.LeddarTech.com and on LinkedIn, Twitter (X), Facebook and YouTube.
Forward-Looking Statements
Certain statements contained in this Press Release may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (which forward-looking statements also include forward-looking statements and forward-looking information within the meaning of applicable Canadian securities laws), including, but not limited to, statements relating to LeddarTech’s anticipated strategy, future operations, prospects, objectives and financial projections and other financial metrics. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “may,” “will,” “should,” “would,” “expect,” “anticipate,” “plan,” “likely,” “believe,” “estimate,” “project,” “intend” and other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: (i) the possibility that anticipated benefits of LeddarTech’s recent business combination will not be realized; (ii) the risk that shareholder litigation in connection with the business combination or other settlements or investigations may result in significant costs of defense, indemnification and liability; (iii) changes in general economic and/or industry-specific conditions; (iv) possible disruptions from the business combination that could harm LeddarTech’s business; (v) the ability of LeddarTech to retain, attract and hire key personnel; (vi) potential adverse reactions or changes to relationships with customers, employees, suppliers or other parties; (vii) potential business uncertainty, including changes to existing business relationships following the business combination that could affect LeddarTech’s financial performance; (viii) legislative, regulatory and economic developments; (ix) unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism, outbreak or escalation of war or hostilities and any epidemic, pandemic or disease outbreak (including COVID-19), as well as management’s response to any of the aforementioned factors; (x) access to capital and financing and LeddarTech’s ability to maintain compliance with debt covenants; (xi) LeddarTech’s ability to execute its business model, achieve design wins and generate meaningful revenue; and (xii) other risk factors as detailed from time to time in LeddarTech’s reports filed with the U.S. Securities and Exchange Commission (the “SEC”), including the risk factors contained in LeddarTech’s Annual Report on Form 20-F for the fiscal year ended September 30, 2023. The foregoing list of important factors is not exhaustive. Except as required by applicable law, LeddarTech does not undertake any obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
Daniel Aitken, Vice-President, Global Marketing, Communications and Investor Relations, LeddarTech Holdings Inc. Tel.: + 1-418-653-9000 ext. 232 daniel.aitken@LeddarTech.com
- Investor relations website: investors.LeddarTech.com
- Investor relations contact: Kevin Hunt, ICR Inc. kevin.hunt@icrinc.com
- Financial media contact: Dan Brennan, ICR Inc. dan.brennan@icrinc.com
Leddar, LeddarTech, LeddarVision, LeddarSP, VAYADrive, VayaVision and related logos are trademarks or registered trademarks of LeddarTech Holdings Inc. and its subsidiaries. All other brands, product names and marks are or may be trademarks or registered trademarks used to identify products or services of their respective owners.
LeddarTech Holdings Inc. is a public company listed on the Nasdaq under the ticker symbol “LDTC.”
FAQ
What is the strategic license agreement between LeddarTech (LDTC) and Solid State LiDAR Protection Inc?
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