LeddarTech Concludes Licensing Arrangement With Renesas

Rhea-AI Summary

LeddarTech Holdings Inc. (LDTC) announces a long-term licensing arrangement with Renesas Electronics America Inc. to commercialize LCA2 and LCA3 programmable system-on-chip (SoC) product families. This strategic partnership aims to leverage LeddarTech's AI-based low-level sensor fusion and perception software technology, LeddarVision™, for advanced driver assistance systems (ADAS) and autonomous driving (AD) applications.

Insights

Market Research Analyst

The partnership between LeddarTech and Renesas Electronics America Inc. marks a significant shift in LeddarTech's business model towards a licensing-first approach. This strategic pivot to a pure-play automotive software company could potentially open up new revenue streams and reduce the reliance on direct sales. The focus on AI-based sensor fusion and perception software, LeddarVision™, is aligned with the industry's trend towards advanced driver-assistance systems (ADAS) and autonomous driving (AD) technologies.

By leveraging Renesas' established global sales force and customer base, LeddarTech is positioned to enhance its market penetration without the associated overhead costs of building and maintaining a large-scale sales operation. This collaboration could lead to a competitive advantage in the solid-state LiDAR market, which is critical for the development of ADAS and AD technologies. However, the success of this partnership largely depends on the adoption rate of the LCA2 and LCA3 SoC product families by automotive OEMs and Tier 1-2 suppliers.

Financial Analyst

The licensing arrangement between LeddarTech and Renesas could have a notable impact on LeddarTech's financials. Licensing agreements typically provide a stable and predictable revenue stream, which could improve the company's financial health and potentially lead to an increase in its stock valuation. The long-term nature of the deal suggests a sustained revenue source, which is often viewed favorably by investors.

It's important to monitor how this agreement will affect LeddarTech's operating margins. Licensing can be a high-margin business, as it usually involves lower costs compared to manufacturing and selling hardware. If the terms of the agreement are favorable, LeddarTech might experience an improvement in its profit margins over time. However, details on the financial terms of the agreement are needed to accurately assess its impact on LeddarTech's bottom line.

Automotive Industry Expert

The integration of LeddarTech's LiDAR software and Renesas' SoC products represents a strategic alignment with the automotive industry's push towards more sophisticated ADAS and AD solutions. The demand for such technologies is on the rise due to increased safety standards and consumer expectations for advanced vehicle features. By combining LeddarTech's expertise in solid-state LiDAR with Renesas' programmable SoC solutions, the partnership could accelerate the development and deployment of more reliable and efficient ADAS and AD systems.

However, the automotive industry is known for its long development cycles and stringent safety requirements. The adoption of new technologies can be a slow process and it remains to be seen how quickly automotive manufacturers will integrate these new SoC products into their systems. The partnership's success will also hinge on how well the technology performs in real-world scenarios, which can only be validated through extensive testing and validation.

QUEBEC CITY, March 20, 2024 /PRNewswire/ - 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 that it has concluded a long-term licensing arrangement with Renesas Electronics America Inc. to commercialize the LCA2 and LCA3 programmable system-on-chip (SoC) product families.

LeddarTech collaborated with Renesas (formerly IDT) to develop the LCA2 and LCA3 programmable SoC products. LeddarTech's distinctive LiDAR software, combined with AI-based low-level fusion and perception, formed the foundation of LeddarTech's ADAS and AD offerings to automotive OEMs and Tier 1-2s. This agreement with Renesas is one of the outcomes of LeddarTech's strategic transition to a pure-play automotive software company, building on the LeddarVision AI-based low-level fusion and perception software for advanced driver assistance systems and AD. In connection with this transition, LeddarTech is pursuing a licensing model with strategic partners and customers for its solid-state LiDAR products and technology, and this arrangement with Renesas is currently one of the most prominent licenses established in this process.

"I am very pleased to have concluded this licensing arrangement with Renesas," stated Frantz Saintellemy, President and CEO of LeddarTech. "Renesas has been a significant strategic partner of LeddarTech for several years, and this agreement will benefit both organizations and the LiDAR market, leveraging our joint investments in developing these products. Under this licensing arrangement, Renesas will leverage its global sales force and customer base. LeddarTech will strive to maximize the value of our foundational solid-state LiDAR technology assets for many years to come," Mr. Saintellemy concluded.

About LeddarTech

A global software company founded in 2007 and headquartered in Quebec City with additional R&D centers in Montreal, Toronto 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 150 patent applications (80 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, including as a result of the business combination; (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; * 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."

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SOURCE LeddarTech Inc.

FAQ

What licensing arrangement did LeddarTech announce with Renesas Electronics America Inc.?

LeddarTech announced a long-term licensing arrangement with Renesas Electronics America Inc. to commercialize LCA2 and LCA3 programmable system-on-chip (SoC) product families.

What is the focus of the collaboration between LeddarTech and Renesas?

The collaboration focuses on leveraging LeddarTech's AI-based low-level sensor fusion and perception software technology, LeddarVision™, for advanced driver assistance systems (ADAS) and autonomous driving (AD) applications.

Who is the President and CEO of LeddarTech?

Frantz Saintellemy is the President and CEO of LeddarTech.

What is the strategic transition LeddarTech is undergoing?

LeddarTech is transitioning to a pure-play automotive software company, focusing on building its LeddarVision AI-based low-level fusion and perception software for ADAS and AD applications.

What is the goal of LeddarTech in pursuing a licensing model with strategic partners and customers?

LeddarTech aims to maximize the value of its solid-state LiDAR products and technology assets for the automotive market through licensing agreements.