Aeva Technologies, Inc. (AEVA) 2021年年度報告「NYSE」.pdf

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1、UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-K(Mark One)ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31,2021OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 19

2、34 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-39204AEVA TECHNOLOGIES,INC.(Exact name of Registrant as specified in its Charter)Delaware84-3080757(State or other jurisdiction ofincorporation or organization)(I.R.S.EmployerIdentification No.)555 Ellis StreetMountain View,CA94043(Addr

3、ess of principal executive offices)(Zip Code)Registrants telephone number,including area code:(650)481-7070SecuritiesregisteredpursuanttoSection12(b)oftheAct:Title of each classTradingSymbol(s)Name of each exchange on which registeredCommonstock,$0.0001parvaluepershareAEVANewYorkStockExchangeWarrant

4、stopurchaseoneshareofcommonstockAEVA.WSNewYorkStockExchangeSecuritiesregisteredpursuanttoSection12(g)oftheAct:NoneIndicatebycheckmarkiftheRegistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.YESNOIndicatebycheckmarkiftheRegistrantisnotrequiredtofilereportspursuanttoSection13or1

5、5(d)oftheAct.YESNOIndicatebycheckmarkwhethertheRegistrant:(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheRegistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90da

6、ys.YESNOIndicatebycheckmarkwhethertheRegistranthassubmittedelectronicallyeveryInteractiveDataFilerequiredtobesubmittedpursuanttoRule405ofRegulationS-T(232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheRegistrantwasrequiredtosubmitsuchfiles).YESNOIndicatebycheckmarkwhethert

7、heregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,smallerreportingcompany,oranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”“smallerreportingcompany,”and“emerginggrowthcompany”inRule12b-2oftheExchangeAct.LargeacceleratedfilerAccelerat

8、edfilerNon-acceleratedfilerSmallerreportingcompany Emerginggrowthcompany Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.Indicatebycheckm

9、arkwhethertheregistranthasfiledareportonandattestationtoitsmanagementsassessmentoftheeffectivenessofitsinternalcontroloverfinancialreportingunderSection404(b)oftheSarbanes-OxleyAct(15U.S.C.7262(b)bytheregisteredpublicaccountingfirmthatpreparedorissueditsauditreport.IndicatebycheckmarkwhethertheRegis

10、trantisashellcompany(asdefinedinRule12b-2oftheExchangeAct).YESNOTheaggregatemarketvalueofthevotingandnon-votingcommonequityheldbynon-affiliatesoftheRegistrant,basedontheclosingpriceofthesharesofcommonstockonTheNewYorkExchangeStockMarketonJune30,2021,was$888million.ThenumberofsharesofRegistrantsCommo

11、nStockoutstandingasofFebruary21,2022,was215,994,036.DOCUMENTSINCORPORATEDBYREFERENCEPortionsoftheRegistrantsdefinitiveproxystatementrelatingtoits2022annualmeetingofstockholders(the“2022ProxyStatement”)areincorporatedbyreferenceintoPartIIIofthisAnnualReportonForm10-Kwhereindicated.The2022ProxyStateme

12、ntwillbefiledwiththeU.S.SecuritiesandExchangeCommissionwithin120daysaftertheendofthefiscalyeartowhichthisreportrelates.Table of ContentsPagePART IItem1.Business2Item1A.RiskFactors14Item1B.UnresolvedStaffComments49Item2.Properties49Item3.LegalProceedings49Item4.MineSafetyDisclosures49PART IIItem5.Mar

13、ketforRegistrantsCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquitySecurities50Item6.Reserved50Item7.ManagementsDiscussionandAnalysisofFinancialConditionandResultsofOperations51Item7A.QuantitativeandQualitativeDisclosuresAboutMarketRisk59Item8.FinancialStatementsandSupplementaryData61I

14、tem9.ChangesinandDisagreementsWithAccountantsonAccountingandFinancialDisclosure89Item9A.ControlsandProcedures89Item9B.OtherInformation92Item9C.DisclosureRegardingForeignJurisdictionsthatPreventInspections92PART IIIItem10.Directors,ExecutiveOfficersandCorporateGovernance93Item11.ExecutiveCompensation

15、93Item12.SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters93Item13.CertainRelationshipsandRelatedTransactions,andDirectorIndependence93Item14.PrincipalAccountingFeesandServices93PART IVItem15.Exhibits,FinancialStatementSchedules94Item16.Form10-KSummary94iPART ISPECI

16、AL NOTE REGARDING FORWARD-LOOKING STATEMENTSThisreportcontainsforward-lookingstatementswithinthemeaningofSection27AoftheSecuritiesActof1933,asamended(the“SecuritiesAct”),andSection21EoftheSecuritiesExchangeActof1934,asamended(the“ExchangeAct”)regardingfutureeventsandourfutureresultsthataresubjecttot

17、hesafeharborscreatedundertheSecuritiesActandtheExchangeAct.Allstatementscontainedinthisreportotherthanstatementsofhistoricalfact,includingstatementsregardingourfutureresultsofoperationsandfinancialposition,theexpectedimpactoftheCOVID-19pandemiconouroperations,ourbusinessstrategyandplans,andourobject

18、ivesforfutureoperations,areforward-lookingstatements.Thewords“believe,”“may,”“will,”“estimate,”“continue,”“anticipate,”“goal,”“plan,”“intend,”“expect,”“seek”,andsimilarexpressionsareintendedtoidentifyforward-lookingstatements.Wehavebasedtheseforward-lookingstatementslargelyonourcurrentexpectationsan

19、dprojectionsaboutfutureeventsandtrends.Theseforward-lookingstatementsaresubjecttoanumberofrisks,uncertaintiesandassumptions,includingthosedescribedunder“PartI,Item1A.RiskFactors,”andelsewhereinthisreport.Moreover,weoperateinaverycompetitiveandrapidlychangingenvironment.Newrisksemergefromtimetotime.I

20、tisnotpossibleforourmanagementtopredictallrisks,norcanweassesstheimpactofallfactorsonourbusinessortheextenttowhichanyfactor,orcombinationoffactors,maycauseactualresultstodiffermateriallyfromthosecontainedinanyforward-lookingstatementswemaymake.Inlightoftheserisks,uncertaintiesandassumptions,thefutur

21、eeventsandtrendsdiscussedinthisreportmaynotoccurandactualresultscoulddiffermateriallyandadverselyfromthoseanticipatedorimpliedintheforward-lookingstatements.Youshouldnotrelyuponforward-lookingstatementsaspredictionsoffutureevents.Theeventsandcircumstancesreflectedintheforward-lookingstatementsmaynot

22、beachievedoroccur.Althoughwebelievethattheexpectationsreflectedintheforward-lookingstatementsarereasonable,wecannotguaranteefutureresults,levelsofactivity,performance,orachievements.Weareundernodutytoupdateanyoftheseforward-lookingstatementsafterthedateofthisreportortoconformthesestatementstoactualr

23、esultsorrevisedexpectations.Asusedinthisreport,theterms“Aeva,”“we,”“us,”“our,”and“theCompany”meanAevaTechnologies,Inc.anditssubsidiariesunlessthecontextindicatesotherwise.Item 1.Business.Overview Ourgoalistobringperceptiontoalldevices.ThroughourFrequencyModulatedContinuousWave(“FMCW”)sensingtechnolo

24、gy,webelieveweareintroducingtheworldsfirst4DLiDAR-on-chipthat,alongwithourproprietarysoftwareapplications,enablestheadoptionofLiDARacrossbroadapplications.Webelievethatoursolutionswillallowforthewide-scaleadoptionofautonomousdriving.Furthermore,webelievethatourproprietary4DLiDARtechnologyhasthepoten

25、tialtoenablenewcategoriesforperceptionacrossconsumerelectronics,consumerhealth,industrialautomationandsecurityapplications.Foundedin2017byformerAppleengineersSoroushSalehianandMinaRezkandledbyamultidisciplinaryteamofengineersandoperatorsexperiencedinthefieldofsensingandperception,Aevasmissionistobri

26、ngthenextwaveofperceptiontechnologytobroadapplicationsfromautomateddrivingtoconsumerelectronics,consumerhealth,industrialautomationandsecurity.Our4DLiDAR-on-chipcombinessiliconphotonicstechnologythatisproveninthetelecomindustrywithpreciseinstantvelocitymeasurementsandlong-rangeperformanceforcommerci

27、alization.OnMarch12,2021(the“ClosingDate”),Aeva,Inc.consummatedabusinesscombination(the“BusinessCombination”)withInterPrivateAcquisitionCorp.(theCompanyspredecessor,whichwasoriginallyincorporatedinDelawareasaspecialpurposeacquisitioncompany(“IPV”)pursuanttotheBusinessCombinationAgreementdatedasofNov

28、ember2,2020(the“BCA”),byandamongIPV,WLLYMergerSubCorp.,awhollyownedsubsidiaryofIPV,andAeva,Inc.ImmediatelyupontheconsummationoftheBusinessCombination,WLLYMergerSubCorp.mergedwithandintoAeva,Inc.,withAeva,Inc.survivingthemergerasawhollyownedsubsidiaryofIPV.IPVchangeditsnametoAevaTechnologies,Inc.andt

29、hepre-combinationAevaretaineditsnameofAeva,Inc.2Asadevelopmentstagecompany,weworkcloselywithourcustomersonthedevelopmentandcommercializationoftheirprogramsandtheutilizationofourproductsinsuchprograms.Thusfar,ourcustomershavepurchasedprototypeproductsandengineeringservicesfromusforuseintheirresearcha

30、nddevelopmentprograms.Weareexpandingourmanufacturingcapacitythroughthird-partymanufacturerstomeetourcustomersanticipateddemandfortheproductionofourproducts.Unlikelegacy3DLiDAR,whichreliesonTime-to-Flight(“ToF”)technologyandmeasuresonlydepthandreflectivity,AevassolutionleveragesaproprietaryFMCWtechno

31、logytomeasurevelocityinadditiontodepth,reflectivityandinertialmotion.WebelievetheabilityofAevassolutiontomeasureinstantvelocityforeverypixelisamajoradvantageoverToF-basedsensingsolutions.Furthermore,AevastechnologyisfreefrominterferencefromotherLiDARbeamsandsunlight,andourcoreinnovationswithinFMCWar

32、eintendedtoenableautonomousvehiclestoseeatsignificantlyhigherdistancesupto500meters.Webelievetheadvantagesofour4DLiDAR-on-chipallowsustoprovidethefirstLiDARsolutionthatisfullyintegratedontoachipwithsuperiorperformanceatscale,withthepotentialtoallowforthewide-scaleadoptionofautonomousdrivinganddriven

33、ewcategoriesofperceptionacrossindustrialautomation,consumerelectronics,consumerhealth,aerospace,andsecuritymarkets.Technology Overview WiththeworldsfirstLiDARthatisintegratedontoasiliconphotonicschipmodule,AevasproprietaryFMCWtechnologycombinesinstantvelocitymeasurementforeachpixel,superiorlong-rang

34、eperformance,immunityfromanyLiDARorsunlightinterference,atlowopticalpower.Webelievethattheadvantagesofourinnovativesensingtechnologyallowsustoaddressthenextgenerationofautonomousdrivingapplications.Beyondautomotiveapplications,Aevas4DLiDARarchitectureenablessuperiorresolutionandprecisevelocitysensin

35、g,whichwebelievepositionsAevatopotentiallydrivenewperceptioncategoriesforindustrialautomation,consumerelectronics,consumerhealth,andsecurityapplications.Aevas 4D LiDAR Technology Our4DLiDARtechnologyisbasedonanapproachthatisfundamentallydifferentfrom3DToFtechnologyandtraditionalFMCWLiDARtechnologies

36、.OurtechnologydifferentiationisrootedinAevas:proprietaryFMCWdesign;integratedsiliconphotonicstechnology;customdigitalprocessingapplication-specificintegratedcircuit(“ASIC”);and4DPerceptionsoftware.Aevas Proprietary FMCW Design Unlikelegacy3DLiDAR,whichreliesonToFtechnologytotransmithighpowerpulsesof

37、lighttomeasureanobjectsrange,Aevas4DLiDARusesacontinuous,lowpowerlaserbeamtomeasurethechangeinfrequencyofthewaveformasitreflectsoffanobject.Thisallowsour4DLiDARtodetecttheinstantvelocityofeverypointwithcentimeterspersecondprecisionandmeasurerangeatdistancesupto500meters.Aevas4DLiDARisalsofreeofinter

38、ferencefromotherLiDARbeamsandsunlightandoperatesatfractionsoftheopticalpowerthatistypicallyrequiredtoachievelongrangeperformancein3DToFsystems.3WebelievethatAevasproprietary4DLiDARtechnologyapproachaddressessomeofthecriticalhurdlesthathavepreviouslyslowedthebroadadoptionofautomotiveLiDARthatisbasedo

39、nlegacy3DToFtechnology:IntegrationonsiliconphotonicsenablescompactformfactorIntegratingthekeyopticalcomponentsofaLiDARontoonesmallsiliconphotonicsmoduleallowsforcompactformfactorforvolumescaleFreeofinterferenceBycarryingauniquesignatureforeachbeam,our4DLiDARcanblockanysourceofpowerthatdoesnotcarryth

40、euniquesignature,renderingitfreeofinterferencefromotherLiDARandsunlight.HighsensitivityAevas4DLiDARishighlysensitive,whichallowsforlongrangeperformanceupto500meters.HighdynamicrangeAevas4DLiDARisnotpronetonoiseeffectsobservedinToFtechnologieswhenmeasuringhighlyreflectiveobjectssuchastrafficsignsonth

41、eroad.HighersensitivityininclementweatherAevas4DLiDARhasthepotentialtoperformbetterininclementweatherbytakingadvantageofthecontinuoustransmissionoflaserbeamsasopposedtoshortpulsesinToFLiDARs.InstantaneousmeasurementofvelocityAevas4DLiDARcandirectlymeasuretheinstantaneousvelocityofeverypixelbymeasuri

42、ngtheDopplereffectscausedbythedynamicmotionofobjects.LaserSafetyDuetoalowpowercontinuousbeam,Aevas4DLiDARhasbetterlasersafetymarginsbydesigncomparedtoToFLiDARapproachesthatrequirehighpowerlaserpulses.AevastechnologyalsodiffersfromotherFMCWLiDARtechnologiesacrossmultipleareas:Point density and maximu

43、m range:AevasimplementationofaninnovativeFMCWtechnologyapproachbreaksthedependencybetweenmaximumrangeandpointdensity,enablinglongrangecapabilityathighresolutionssimultaneously,whichhasbeenacriticallimitationofotherFMCWLiDARtechnologies.Highly scalable laser solution:Aevascustomizedlasersolutionisfib

44、er-lessandbasedonscalablesemiconductormanufacturingprocesses.Long range performance:Byleveragingourproprietarydigitalsignalprocessingandourcustomintegratedphotonicstechnology,Aevastechnologyisdesignedtoachievesuperiorrangeperformanceupto500meters.Low transceiver count:AevasinnovativeFMCWtechnologyap

45、proachallowsforalownumberoftransceiversrequiredtoprovidehighresolutionperformanceacrosstheentireFieldofView(“FOV”).Integrated photonics built on proven processes:Aevas4DLiDARleveragesprovensemiconductorcomponentsintegratedonscalableComplementaryMetalOxideSemiconductor(“CMOS”)basedsiliconphotonicspro

46、cessesanddoesnotrelyonanyexoticmaterialsthataretypicallychallengingtoproduceinvolume.Integrated Silicon Photonics Technology BuiltonexistingsiliconCMOSandIII-Vtechnologiesandsemiconductormanufacturingprocesses,oursolutionmeasuresdepth,reflectivityandvelocityforeverypixel.Webelievethatourtechnologies

47、inthefieldofintegratedphotonicshavethepotentialtoenable4DLiDAR-on-chipforbroadapplications:Transmitter:Aevausesitsownproprietarysemiconductorlaserbasedonanexistinglow-costIII-Vprocessalreadyinproductionfortelecomapplications.Ourfiber-lesslasersolutionispowerefficientanddesignedforAevasproprietarysig

48、nalprocessingtoprovidelongrangeperformance.4Detector:Aevascustomdetectorsolutionisbasedonexistingandscalablesemiconductorprocesses.LowcostphotodetectorsareintegratedonasiliconphotonicsplatformwithouttheuseofanyexoticmaterialsthatarenotproducibleinvolumeorhighercostdetectorsusedinotherLiDARssuchassin

49、gle-photonavalanchediode(“SPAD”)andavalanchephotodetectors.Silicon photonics platform:ThecoreopticsofAevas4DLiDARismadeofsiliconphotonicstechnologythatbringstogetheranintegratedandmass-manufacturableopticalsensingmoduleinacompactformfactor.Custom Digital Signal Processing ASIC Aevascomplexdigitalsig

50、nalprocessing(“DSP”)algorithmshavebeendesignedanddevelopedtoprocessthereturnedopticalsignaltoenableour4DLiDARtoachievesuperiorperformanceacrossalldetectabletargets.TheresultoftheseDSPalgorithmsisahighfidelitypointcloudof4Ddata(3Dpositionasx,y,zplusinstantaneousvelocity)foreverypixel.Thecustomdesigno

51、fDSPalgorithmsforAevasASICistheresultofextensivedevelopmentandvalidationofreal-worldroaddata,spanningavarietyofroadtypes,geographicandenvironmentalconditionsovermultipleyears.AevasproprietaryDSPalgorithmshavebeendesignedtoprovidethefollowingbenefits:OptimizeddetectionalgorithmscustomdevelopedforAeva

52、sphotonicssolutionenablinglongrangeperformanceupto500meters;Highpointdensityatlowprocessingpowerenabledbyproprietarydetectionalgorithmsthatacceleratecomputationallyintensiveprocessing;Accuraterangeandvelocitymeasurementsfortargetsacrosstheentirefieldofview;Lowfalsealarmratesenableshighconfidencedete

53、ctionsandreliablepointclouddata;andReal-timeperceptionsoftwareutilizing4Dpointclouddata.Webelieveourcustomdigitalsignalprocessinghasthepotentialtoenableahigh-performance,low-powerASICsolutionthatcanoperateacrossavarietyofenvironmentalconditionswhilemeetingthestringentautomotivegradesafetyandsecurity

54、requirementsforproduction.4D Perception Software WhencombinedwithAevaspowerfulperceptionsoftware,ourproductallowsforfastobjectdetectionandclassificationaswellasprecisiontrackingthatisessentialforahighlyautomateddrivingsystem.Inaddition,ourvehiclestateestimationsoftwareproduceshighqualityvehicledynam

55、icsandpositioninginformationwithouttheaddedinertialmotionsensinghardwareandsoftwaretypicallyusedintodaysvehicles.Object Detection WithAevasinstantaneousvelocitymeasurementperpixel,thecomplextaskoffindingmovingobjectssuchasvehicles,pedestriansandbicyclesisnotonlymadesimpleandprecisebutalsofast.Wherea

56、slegacy3DLiDARsystemsrequireaccumulatingmeasurementsoverseveralsamplestodetermineifanobjectismoving,Aevasinstantaneousvelocitymeasurementperpixelallowsthetaskofdetectingmovingobjectstobeexecutedonasinglesample,reducingthereactiontimeandimprovingtheoverallsafetyofthesystem.Object Classification and T

57、racking Webelieveourproductscanenhanceourdetectioncapabilitiestotrackandclassifydynamicdetectedobjectsusing4DLiDARsinstantvelocitydata.5Vehicle State Estimation Throughtheinstantaneousmeasurementofvelocity,Aevas4DLiDARcanproducehighqualityestimatesofvehiclepositioninganddynamicpropertiessuchasveloci

58、ty,acceleration,andrateofturn.Whereashighqualityvehiclestateestimationcanbeobtainedtodaywithexpensivehardwaresolutionssuchasfiberopticbasedgyroscopesandhighprecisioninertialmotionsensors,Aevas4DLiDARasanedgedevicecanprovidehighqualityandpreciseestimateswithouttheuseofanyadditionalhardware,therebyfur

59、therreducingtherequirementsandcostsofsuchadditionalhardware.Thesehighqualityestimatescanbeusedtoproducehighfidelity3Dmapsoftheenvironmentandinformthevehiclecomputeraboutthecurrentdynamicsstateofthevehicle.Ground Segmentation and Lane Detection WithAevasprecisestaticpixelmeasurement,thetaskofestimati

60、ngwherethegroundliesinfrontofthevehicletodeterminedrivableregionsisstraightforward.Thisinformationcanbeusedbythevehicletodeterminedrivableregionsandlanemarkingsontheroad.Aeva 4D LiDAR vs.Other Sensing Technologies Machineperceptionhasevolvedfromusingbasicvisionsensorstomultiplesensingsolutionseachco

61、mplementingtheotherscapabilitytoprovidenewcapabilityandsafefunction.Todaysmachinesutilizethefollowingsensinginputsforperceptionfunction:color,velocity,depth,reflectivityandinertialmotion.Whileeachcurrentsensingtechnologyhasvaryingcapabilitiestomeasuresomeoftheseinputrequirements,webelievethatAevas4D

62、LiDARtechnologycombinekeyadvantagesacrossallrequirements.BelowisacomparisonofAevas4DLiDARtechnologyandotherexistingsolutionstoday.WhilewebelieveAevas4DLiDARtechnologymeetstherequirementsofperceptionfunctionforautomateddrivingandbeyond,othersensingtechnologieshavecertainadvantages.Forexample,othersen

63、singtechnologies,suchascamerasandRadar,representwell-establishedandwell-understoodtechnologies.CamerascanmeasurehigherresolutioncolorinformationcomparedtoLiDARtechnology,whichisadvantageousincertaincircumstances,forexample,whenreadingtrafficlights.Radarsoperateintheradiofrequenciesandthuscanbetterme

64、asurethroughsevereweatherconditionswhereanopticalsensorsuchascameraorLiDARhavevisibilitylimitations.Additionally,Radarandcameratechnologies,aswellascertainlegacyLiDARs,havebeendeployedincertainproductionvehicles,whileAevasproductsarenotyetmassproduced.Camera Camerascanmeasurecolorathighresolutionand

65、canalsobeusedtoinferdepth.However,camerasinherentlycannotmeasuredepth,velocity,reflectivity,orinertialmotion,whichareallessentialforthefunctionofassisteddrivingsystems(“ADAS”)andautonomousdrivingapplications.Monocularcameras,orcommonlyknownas2Dcameras,aretheprimarysensingcomponentintodaysADASsystems

66、.Distancecalculationsinthesecamerasystemsareapproximationsbasedonsoftwarealgorithmsbutarenotbasedonactualdirectmeasurementsofdepth.Theprimaryuseofcamerasforautomotiveapplicationstodayisinlanekeepassist,automatichighbeamcontrol,andtrafficsignrecognitionaswellasuseinadaptivecruisecontrolandautomaticem

67、ergencybrakingwhencombinedwithothertechnologies.Binocularcameras,commonlyknownas3Dcameras,usetwocamerastoprovidethesamefunctionalityof2Dcamerasbutleveragesoftwarealgorithmstoinferdepthestimationatshortdistances.Despitecameraperformancelimitations,whichincludepoorvisualperformanceacrossdifferentenvir

68、onmentalconditionsandlackofvelocitydetectionandaccuratemeasurementofdistance,camerasarelowincostandthustheiruseincurrentproductionvehiclesiscommon.However,anumberofOriginalEquipmentManufacturers(“OEMs”)andTier-1suppliershavedevelopedcamerasystemswithadditionalcomponentstoovercomeinherentcameratechno

69、logyshortfallsthatcomeattheexpenseofincreasedcostandcomplexity.6Radar Radarisasensingsystemthatusesradiowavestodeterminevariouspropertiesofobjects.Radarapplicationswerefirstintroducedtopassengervehiclesforconsumeruseover20yearsagoandradarisconsideredamaturetechnology.Therearethreetypicalmajorclasses

70、ofautomotiveradarsystemstoday:short-rangeradar,medium-rangeradar,andlong-rangeradar.Short-rangeradarisusedforcollisionproximitywarningandsafetyandenableslimitedparkingassistfeatures.Medium-rangeradarwatchesthecornersofthevehicle,performsblindspotdetection,andobservesother-vehiclelanecrossoverandhelp

71、savoidside/cornercollisions.Long-rangeradarisaforward-lookingsensorusedforadaptivecruisecontrolandearlycollisiondetectionatfarranges.Radarsystemsmeasurevelocityanddepthalbeitatmuchlowerresolutionandprecisionacrossavarietyofenvironmentalandlightingconditions.Radardoesnotmeetotherreflectivity,colorand

72、inertialmotionperceptionrequirements.Legacy 3D Time-of-Flight LiDAR LegacyLiDARisbasedonToFtechnologyandcanmeasuredepthandreflectivity.ToFLiDARmeasuresthedistancebetweenasensorandanobjectbasedonthetimedifferencebetweentheemissionofalaserpulsesignalanditsreturntothesensorwhenreflectedfromtheobject.In

73、idealconditions,ToFLiDARcanaccuratelymeasuredistancesinacompletescenewithasinglelaserpulse.However,becauseToFsystemsmeasurepowerdirectlyatthedetector,theytypicallysufferfrommultiplelimitations:Susceptible to interference:ToFsensorscompetewithothersourcesofopticalpower(e.g.sunlightandotherLiDARbeams)

74、andthereforearesubjecttoinference.High optical power:ToFLiDARsystemsneedhigher-poweredlaserpulsestoachievebetterperformanceandovercomeotherinterferencesources.Cant directly measure velocity:ToFtechnologycannotmeasurepixelvelocityinstantaneously.ToFsystemsneedmultiplemeasurementstoestimatethevelocity

75、ofanobject.Higher cost and low scalability:HighperformanceToFLiDARshaveahighercomponentcountand/orarefiberbasedwhichcanmakethemmorecostlyandchallengingtoscaleduetocomplexmanufacturingtechniques.AlmostallLiDARsystemsinthemarkettodayarebasedonlegacyToFtechnologyandfacesimilarlimitationshighlightedabov

76、e.Our solutions and products Weprovideperceptionsolutionsthatenableourcustomerstoseetheworldaroundthemmoreclearlyandinnewways.Webelievethatourproducts,basedonAevasproprietary4DLiDARtechnologyhavethepotentialtoenableadiversesetofperceptionapplications.Wehavetwoprimaryproductofferingsfordifferentmarke

77、tapplications:a4DLiDARsolution,consistingofour4DLiDARsensingsystemwithembeddedsoftwaretargetedtowardsautomotive,industrial,andsecurityapplications;andasiliconphotonicsengine,andsoftwarealgorithms,forindustrialautomation,consumerelectronicsandconsumerhealthapplications.Oursolutionsaregenerallyexpecte

78、dtobeincorporatedintofinalproductssuchasautomobiles,industrialequipmentandconsumerdevices.Weexpectthat,afterarigorous,multi-yearproductdesignandengineeringvalidationprocess,customerswouldselectoursolutionstobedesignedintospecificfinalproductmodels,andoursolutionswouldbesoldatagreedratesperunitforthe

79、lifetimeofthecustomersproductprograms.7Withintheautomotivesector,weexpectour4DLiDARsolutiontobeintegratedintothevehicleaspartofthevehicleintegrationandproductionprocessestoprovideperceptionsensingcapabilityaspartofthevehiclesoverallautonomousdrivingstack.Weexpectour4DLiDARsolutionstobecompatiblefori

80、ntegrationintopassengervehicles,trucksandnewmobilityvehicleplatforms,andweareengagedwithcustomersineachofthesecategoriesforthepotentialintegrationofoursolutionsintosuchvehicleplatforms.Withinindustrialapplications,weexpectour4DLiDARsolutionwouldbeincorporatedaspartofanindustrialautomationplatformsol

81、ution(suchasindustrialmetrologyproductsorcargomovingrobotsusedforfactoryautomation).Withinsecurityapplications,weexpectour4DLiDARsolutionwouldbeincorporatedaspartofsecuritymonitoringsystemsthatmayuseothersensingandcomputerelectronicssystems.Weexpecttoleveragethesynergiesofoursupplychainandmanufactur

82、ingcounterpartieswithinautomotiveapplicationstoselloursolutionsdirectlytoindustrialautomationcompaniesthatdevelopmanufacturingautomationsolutionsforotherindustrialcompaniesandtomanufactureanddistributeourproductsusingourexistingmanufacturingcounterparties.Product overview 4D LiDAR System Our4DLiDARs

83、ystemisbasedonaninnovativeFMCWtechnologythatisbuiltfromthegrounduponourproprietarysiliconphotonicschip.Aeries for Automotive WebelievethatourAeriesproductmeetsthestringentlongrangeperformanceandvelocitysensingneedsofourautomotivecustomersfortheirautonomousvehicledevelopmentprograms.Aeriesprovidesove

84、r120fieldofviewfordistanceupto500metersandcanmeasuretheinstantvelocityofeverypixelwithcentimeterpersecondprecision.AeriesisalsofreefromanyLiDARorsunlight-basedinterference.TheproductionversionofAerieswillbedesignedforautomotivegrademassvolumeproductionacrosspassengercar,truckingandmobilityapplicatio

85、nsandwillbedevelopedincollaborationwithourautomotiveandmanufacturingcounterparties.Market Outlook Webelievethatourinnovativeproductscanimprovesafety,reducedevelopmenteffortofperceptionsoftwareandreducecostsofautonomousdrivingsystems.Inaddition,webelievethatoursolutionssolveperceptionproblemsacrossab

86、roadsetofmarketapplications,includingtheautomotive,consumerelectronics,consumerhealth,industrialautomationandsecuritymarkets.Automotive Theautomotiveindustryisundergoingatransformativechangetowardsautonomythatisdrivenbyfundamentalshiftsinconsumerbehavioraswellasanindustryresponsetoenvironmental,soci

87、alandgovernance(“ESG”)initiatives.Risingsafetyandsecurityconcerns,increasingdemandforamorereliabletransportationsystem,andtransitionfromcarownershipto“MobilityasaService”,areexpectedtoalsoincreasethedemandforadvanceddriverassistancesystemsandautonomousvehicles.Advanced driver-assistance systems Leve

88、l 1 and Level 2 Passenger cars.Growthinpopulation,urbanization,andrisingdisposableincomehavedrivenhigherdemandforpassengercars.Theautonomouspassengercarindustryisexpectedtoseesteadygrowthasconsumerbehaviorcontinuestoevolve.Currently,Level1passengervehiclesstillaccountforamajorityoftheglobalautonomou

89、spassengervehiclesmarket,butautomotiveOEMsarecollaboratingwithtechnologyproviderstoprovideLevel2ADASsystemsforpassengercars.8Autonomous driving Level 3,Level 4 and Level 5 Autonomous trucking.Theautonomoustruckingindustryisexpectedtogrowrapidly,withNorthAmericacurrentlythelargestmarket,andothergeogr

90、aphiessuchasEuropeandAsiastillintheearlystagesofadoption.Growingdemandfromthelogisticsandconstructionsectorsandgrowthfromotherindustrialsectorshavecontributedtotheexpansionoftheautonomoustruckingindustry.Additionally,morestringentgovernmentrulesandsafetyconsiderationshavealsogenerateddemandforautoma

91、teddrivingtechnologyinthissector.ManytruckOEMsarepartneringwithADtechnologymanufacturingcompaniestoproduceautonomoustrucksystems.SuppliersoftoptruckOEMshavealsocollaboratedwithseveraltechnologycompaniestodevelopautonomoussystems.Webelievetheautonomoustruckingindustryhasthepotentialtorelyheavilyonhig

92、hperformancelongrangeLiDARsensingsolutionsforthedetectionofobjectsatlongdistanceinordertoprovidesafebrakingdistanceandotherwiseachievesafeautomateddrivingfunctionalityonthehighway.WebelieveAeva4DLiDARslongrangeandfastdetectioncapabilitycanpositionustoprovideattractivesolutionsforthismarket.Passenger

93、 cars.WeexpectthetransitiontoLevel3,Level4andeventuallyLevel5vehiclestobeasignificantfactorforourgrowth.Autonomouspassengercarsdependonseveraltypesofautomotivesensorssuchascamera,radar,andLiDARs,alongwithcomprehensivesoftwaretechnologysolutionstoprovideautomateddrivingfunctionsuchashighwayautomation

94、andurbanself-drivingfunctionality.WebelieveautomotiveOEMsandTier1swillcontinuetopartnerwiththemostadvancedtechnologycompaniestoimplementthebestsensingperceptionsystemsthatenablesafeautomateddrivingfunctionatproductionscale.New mobility.Overthepastseveralyears,anumberofemergingmobilityandtechnologypl

95、ayershaveenteredintotheautonomousdrivingmarketwithavisiontodevelopfullyautonomousvehicles.Thissegmenthasexperiencedsubstantialinvestmentsinresearchanddevelopmentinanticipationoftheroll-outofdriverlessmobilityservicestoconsumers.Someplayers,suchasWaymo,Uber,NuroandZoox,havefocusedtheirresearchanddeve

96、lopmenteffortsondevelopingLevel4andLevel5robo-taxisforthedeliveryofpeopleandgoods.Additionally,autonomoustechnologyproviderscollaboratewithautomotiveOEMsandTier1componentproviderstodevelopautonomousvehicles.Consumer devices Consumer electronics WebelieveAevas4DLiDAR-on-chiptechnologyhasthepotentialt

97、obeutilizedinconsumerdevicessuchasphones,tabletsandsmartglassesforvariousperceptionapplications,including3DmappingandAR/VR.Theapplicationofnewsensinginputdevicesusedinconsumerelectronicsisexpectedtocontinuetogrowasinnovationshelpdrivedowncostsandincreaseperformanceofconsumerelectronicsdevices.AR/VRt

98、echnologyhasthepotentialtobeasignificantsourceofdemandfortheconsumerelectronicsindustry.SeveralmajorproductmanufacturersandconsumerelectronicstechnologycompanieshavebeenincreasinglypublicaboutdevelopmentofAR/VRfeaturesetsintheirnextgenerationconsumerelectronicsproducts.WebelieveLiDARiscapableofenabl

99、ingnewusecasesfortheseapplications,andsomeofthelargesttechnologycompanieshavealreadyimplementedLiDARsensingtechnologiesintheirphoneandtabletdevices.Theconsumerelectronicsdevicesmarketishighlycompetitivewithafewmajorplayersdominatingthemarket,includingSamsung,AppleandHuawei.Consumer health Webelievet

100、hatAevas4DLiDARhasthepotentialtoenablenewapplicationswithintheconsumerhealthmarket,includingforcontactlesshealthmonitoring.Specifically,weseepotentialfutureopportunitieswithinconsumerhealthcaredeviceswherethedemandisgrowingfornon-invasive,accurateandlow-powersensorsthatcanmonitorrelevantvitalsignssu

101、chaspulserateandrespirationrate.Longer-term,theremaybeadditionalopportunitiesforour4DLiDARtobeusedinbroaderconsumerhealthapplicationssuchashearthealthmonitoringandotherhome-baseddigitalhealthcareequipment.9Industrial automation Asmanuallyintensivetasksbecomemoreautomated,webelievetheopportunityforou

102、rsensingsolutionsinindustrialworkplaceshasthepotentialtoexpand.Aevas4DLiDARtechnologyhasthepotentialtoofferrobots,industrialmetrologymachinesandotherautomationequipmentasawaytoperceivetheirsurroundingsinamoreclear,accurateandcost-effectivemanner.Thegrowthofautomationposesnumerousbenefitsforindustria

103、lapplications,includingincreasedefficiency,lowerlaborcosts,andenablingworkerstoallocatetheirtimetomoreproductivetasks.Webelievethatsomeofthesamebenefitsthatour4DLiDARtechnologyprovidesforautomotivesafetyapplicationsarebeneficialforincreasingsafetyandimprovingproductionefficienciesinindustrialmanufac

104、turingandfactoryautomationenvironments.Competition GiventheemergingnatureoftheautomateddrivingindustryandotherindustrieswhereLiDARsolutionsareapplicable,thereareanumberofcompaniesdevelopingLiDARtechnologiesforautomotive,industrialandotherapplications,includingcompaniesdevelopingToFLiDARsolutionsandL

105、iDARsolutionsthatmaybesimilartoours.Inaddition,certainautomotiveplayersmayhavetheirowninternalLiDARdevelopmentprograms.Webelieveasignificantportionoftheseothercompaniesaredevelopinglegacy3DLiDARsystems,allofwhichutilizesomevariantofToFtechnologyarchitectureswhichwebelievehavecertainlimitationsinperf

106、ormance,orrequirehighpowerorarehighcost.TheremaybenewcompaniesthatareindependentlydevelopingLiDARsolutionsthatmaybesimilartoours.However,webelievethatourinnovativeproductdesign,substantialrealworldcollectedroaddata,intellectualpropertyportfoliotogetherwithastrongengineeringandoperationsteamprovideus

107、withcertainadvantages.Contracts and Customers Thusfar,wehavegenerallyenteredintostrategicpartnershipagreements,developmentagreementsandsimilaragreementswithcustomersintheautomatedandautonomousdrivingindustry.Pursuanttotheseagreements,wehavesoldorotherwiseprovidedproductprototypesandnon-recurringengi

108、neeringservicesforthepurposeofresearchanddevelopmentandtestingofourcustomersdevelopmentprograms.Sinceourinception,thesetypesofarrangementshaveaccountedformostofourrevenues.Morerecently,wehaveenteredintoproductionmemorandumsofunderstanding,developmentagreementsandsimilararrangementswithcertainofourcu

109、stomersthatoutlinethepotentialdevelopmentandcommercializationofourproductsintosuchcustomersvehicleprogramsandtheutilizationofAevasproductsinsuchvehicleprogramstargetedforseriesproduction.However,therecanbenoassurancethatanyofourcustomersdevelopmentprogramswilleverbedevelopedandcommercialized,andeven

110、iftheyare,therecanbenoassurancethatwewillreceiveproductionpurchaseordersfromourcustomersorthatourproductswillbeselectedinanysuchseriesproductionvehicleprograms.Intellectual Property Oursuccessandcompetitiveadvantagedependsinpartuponourabilitytodevelopandprotectourcoretechnologyandintellectualpropert

111、y.Weownagrowingportfolioofintellectualproperty,confidentialtechnicalinformation,andexpertiseinthedevelopmentofLiDARtechnology,coherentsensing,integratedsiliconphotonics,algorithmsandsoftware.Wehavefiledpatentandtrademarkapplicationsinordertofurthersecuretheserightsandstrengthenourabilitytodefendagai

112、nstthirdpartieswhomayinfringeonourrights.TheapplicationscoverabroadrangeofsystemlevelandcomponentlevelaspectsofLiDARtechnology.10AsofDecember31,2021,wehaveapproximately198pendingpatentapplicationsworldwide.Inaddition,wehaveapproximately4registeredU.S.trademarksand15pendingU.S.trademarkapplications.O

113、urpatentapplicationscoverabroadrangeofsystemlevelhardwareandcomponentlevelaspectsofourkeytechnologiesincluding,amongotherthings,FMCWLiDARsystem,integratedphotonics,lasersolutionsandperceptionsoftwaretechnology.Wealsorelyontradesecrets,experiences,designandmanufacturingknow-how,continuingtechnologica

114、linnovations,andlicensingandexclusivityopportunitiestomaintainandimproveourcompetitiveposition.Additionally,weprotectourproprietaryrightsthroughagreementswithourcommercialpartners,supply-chainvendors,employeesandconsultants,aswellasclosemonitoringofthedevelopmentsandproductsintheindustry.Manufacturi

115、ng Process Sinceinception,wehaveenteredintoarrangementswiththird-partymanufacturerstodevelopandmanufactureourproductsforourcustomersdevelopmentprograms.Weintendtocontinuetorelyonthird-partymanufacturers,tocommercializeourproductsforautomotivegradeproduction.Wehaveenteredintodevelopmentagreements,mem

116、orandumsofunderstandingandsimilaragreementswiththird-partymanufacturersthattypicallyincludecollaborationstodevelop,assemble,testanddistributeourautomotivegrade4DLiDARsystemtoOEMsandautomotivecustomersfortheirautonomousdrivingvehicleprograms.Weintendtoutilizeourproductioncounterpartiescapabilitiesfor

117、thefinalassemblyandtestofourproductsandtoproduceourproductsatglobalmanufacturingplantstoprovideour4DLiDARsystem,includingour4DLiDAR-on-chip,toourcustomers.Research and Development ThemarketsinwhichAevacompetesarenewandrapidlyevolvingacrosshardwareandsoftwareapplications.Weinvestsignificantresourcesi

118、ntoongoingresearchanddevelopmentprogramsbecausewebelieveourabilitytogrowourmarketpositiondepends,inpart,oninnovativetechnologiesthatofferauniquevaluepropositionforourcustomersanddifferentiationfromourcompetitors.OurresearchanddevelopmentactivitiesoccurprimarilyintheSanFranciscoBayArea.Ourresearchand

119、developmentteamisresponsiblefordevelopingour4DLiDARtechnology,creatingnewtechnologiesandexpandingourLiDARandperceptionsoftwaresolutionsfunctionality.Theteamalsodesignsour4DLiDARproducts,ensuresitisdesignedformanufacturabilityandconductsrequiredvalidationandverificationactivities.Theresearchanddevelo

120、pmentteamalsopartnerswithouroperationsandsupplychainteamswiththegoalofdevelopingscalablecommercialandreliablemanufacturingprocessesanddirectproductionmaterialprocurementanddistribution.Ourteamconsistsofengineers,technicians,scientists,operatorsandprofessionalswithexperiencefromawidevarietyoftheworld

121、sleadingsensing,engineering,consumerelectronicsandautomotiveorganizations.Sales and Marketing Wetakeaninsight-driven,account-basedmarketingapproachtobuildandexpandourrelationshipswithcustomersandcommercialcounterparties.Wecollectfeedbackdirectlyfromourcommercialcounterpartiestogarnerinsightsthathelp

122、driveourbusinessandproductsforward.Government Regulation Atboththefederalandstatelevel,theUnitedStateshasprovidedapositivelegalenvironmenttopermitsafetestinganddevelopmentofautonomousfunctionality.Wedonotcurrentlyanticipateanynear-termfederalstandardsthatwouldmateriallyimpedethedeploymentofourproduc

123、tsortechnology.Somestates,however,particularlyCaliforniaandNewYork,stillenforcecertainoperationalorregistrationrequirementsforcertainautonomousfunctions.Webelievesuchhurdleswillberemovedasstateregulatorsgainbetterexperiencewiththetechnology.U.S.federalregulations,however,remainlargelypermissiveofdep

124、loymentsofhigherlevelsofsafeandresponsibleautonomousfunctionality.11ForeignmarketssuchastheEUandChinaalsocontinuetodeveloptheirrespectivestandardstodefinedeploymentrequirementsforhigherlevelsofautonomyintheseregions.Asthecarsthatcarryoursensorsgointoproduction,wewillbesubjecttoexistingstringentrequi

125、rementsundertheNationalTrafficandMotorVehicleSafetyActof1966,ortheVehicleSafetyAct,includingadutytoreport,subjecttostricttimingrequirements,safetydefectswithourproducts.TheVehicleSafetyActimposespotentiallysignificantcivilpenaltiesforviolationsincludingthefailuretocomplywithsuchreportingrequirements

126、.WearealsosubjecttotheexistingU.S.TransportationRecallEnhancement,AccountabilityandDocumentationAct,orTREAD,whichrequiresequipmentmanufacturers,suchasus,tocomplywith“EarlyWarning”requirementsbyreportingcertaininformationtotheNHTSA,suchasinformationrelatedtodefectsorreportsofinjuryrelatedtoourproduct

127、s.TREADimposescriminalliabilityforviolatingsuchrequirementsifadefectsubsequentlycausesdeathorbodilyinjury.Inaddition,theNationalTrafficandMotorVehicleSafetyActauthorizesNHTSAtorequireamanufacturertorecallandrepairvehiclesthatcontainsafetydefectsorfailtocomplywithU.S.federalmotorvehiclesafetystandard

128、s.Salesintoforeigncountriesmaybesubjecttosimilarregulations.Asthedevelopmentoffederalandstateregulationofautonomousmachinesandvehiclescontinuestoevolve,wemaybesubjecttoadditionalregulatoryschemes.AsaLiDARtechnologycompany,wearesubjecttotheElectronicProductRadiationControlProvisionsoftheFederalFood,D

129、rug,andCosmeticActandrelatedFDAregulations.TheserequirementsareenforcedbytheFDA.Electronicproductradiationincludeslasertechnology.Regulationsgoverningtheseproductsareintendedtoprotectindividualsfromhazardousorunnecessaryexposure.ManufacturersarerequiredtocertifyinproductlabelingandreportstotheFDAtha

130、ttheirproductscomplywithapplicableperformancestandardsaswellasmaintainmanufacturing,testing,anddistributionrecordsfortheirproducts.Similarly,wearealsosubjecttotrade,customsproductclassificationandsourcingregulations.WearesubjecttotherequirementsundertheDodd-FrankWallStreetReformandConsumerProtection

131、Actof2010thatwillrequireustodiligence,discloseandreportwhetherourproductscontainconflictminerals.Theimplementationoftheserequirementscouldadverselyaffectthesourcing,availabilityandpricingofthematerialsusedinthemanufactureofcomponentsusedinourproducts.Finally,ouroperationsaresubjecttovariousfederal,s

132、tateandlocallawsandregulationsgoverningtheoccupationalhealthandsafetyofouremployeesandwageregulations.WearesubjecttotherequirementsofthefederalOccupationalSafetyandHealthAct,asamended,andcomparablestatelawsthatprotectandregulateemployeehealthandsafety.Likeallcompaniesoperatinginsimilarindustries,wea

133、resubjecttoenvironmentalregulation,includingwateruse;airemissions;useofrecycledmaterials;energysources;thestorage,handling,treatment,transportationanddisposalofhazardousmaterials;andtheremediationofenvironmentalcontamination.Compliancewiththeserulesmayincludepermits,licensesandinspectionsofourfacili

134、tiesandproducts.Human Capital Ouremployeesarecriticaltooursuccess.AsofDecember31,2021,wehad227full-timeemployeesbasedprimarilyintheSanFranciscoBayArea.Wealsoengagenumerousconsultantsandcontractorstosupplementourpermanentworkforce.Amajorityofouremployeesareengagedinresearchanddevelopmentandrelatedfun

135、ctions.Todate,wehavenotexperiencedanyworkstoppagesandconsiderourrelationshipwithouremployeestobeingoodstanding.Noneofouremployeesaresubjecttoacollectivebargainingagreementorrepresentedbyalaborunion.Werecognizethatattracting,hiring,motivating,andretainingdiversetalentatalllevelsisvitaltocontinuingour

136、success.Webelievethatcompensationshouldnotonlybecompetitive;itshouldbeequitableandshouldenableemployeestoshareintheCompanyssuccessasstockholdersoftheCompany.Bycontinuingtofosteranengagingworkenvironmentandfocusoncontinuedimprovementstoemployeeretention,weimproveourabilitytosupportandprotectAevaslong

137、-terminterests.TheCompanyrecognizesitspeoplearemostlikelytothrivewhentheyhavetheresourcestomeettheirneedsandthetimeandsupporttosucceedintheirprofessionalandpersonallives.12TheCompanyiscommittedtoprotectingitsemployeeseverywhereitoperates.TheCompanyhastakenadditionalmeasuresduringtheCOVID-19pandemic,

138、includingprovidinginformationresources,COVIDtesting,andfacemasks.Facilities OurcorporateheadquartersislocatedintheSanFranciscoBayArea,whereweleasetwobuildingswithapproximately28,000and30,000ofsquarefeet,respectively,pursuanttoaleasethatexpiresinJune2023andJuly2025,respectively.Ourheadquarterscontain

139、sengineering,researchanddevelopment,assemblyandadministrativefunctions.Additionally,weleaseapproximately96,000squarefeetlocatedintheSanFranciscoBayAreaforourtestingfacility.ThisleaseexpiresinApril2026.Webelievethatourfacilitiesareadequateforourcurrentneedsand,shouldweneedadditionalspace,webelievewew

140、illbeabletoobtainadditionalspaceoncommerciallyreasonableterms.Legal Proceedings Fromtimetotime,theCompanymaybeinvolvedinactions,claims,suitsandotherproceedingsintheordinarycourseofbusiness,includingassertionsbythirdpartiesrelatingtointellectualpropertyinfringement,breachesofcontractorwarrantiesoremp

141、loyment-relatedmatters.Whenitisbothprobablethataliabilityhasbeenincurredandtheamountofthelosscanbereasonablyestimated,theCompanyrecordsaliabilityforsuchlosscontingencies.TheCompanysestimatesregardingpotentiallossesandmaterialityarebasedontheCompanysjudgmentandassessmentoftheclaimsutilizingcurrentlya

142、vailableinformation.AlthoughtheCompanywillcontinuetoreassessitsreservesandestimatesbasedonfuturedevelopments,theCompanysobjectiveassessmentofthelegalmeritsofanysuchclaimsmaynotalwaysbepredictiveoftheoutcomeandactualresultsmayvaryfromtheCompanyscurrentestimates.Corporate Information Ourprincipaloffic

143、esarelocatedat555EllisStreet,MountainView,CA94043,andourtelephonenumberis(650)481-7070.Ourwebsiteaddressiswww.aeva.Theinformationcontainedon,orthatcanbeaccessedthrough,ourwebsiteisnotpartofthisreport.AevaisourregisteredtrademarkintheUnitedStatesandinvariousinternationaljurisdictions.Aeva,theAevalogo

144、andallofourproductnamesappearinginthisreportareourtrademarks.Othertrademarksappearinginthisreportarethepropertyoftheirrespectiveholders.Available Information WemakeourAnnualReportsonForm10-K,QuarterlyReportsonForm10-Q,CurrentReportsonForm8-K,andamendmentstothosereports,availablefreeofchargeatourwebs

145、iteassoonasreasonablypracticableaftertheyhavebeenfiledwiththeSEC.Ourwebsiteaddressishttps:/.Informationonourwebsiteisnotpartofthisreport.TheSECmaintainsawebsitethatcontainsthematerialswefilewiththeSECatwww.sec.gov13Item 1A.Risk Factors.RISK FACTORSOur operating and financial results are subject to v

146、arious risks and uncertainties,you should carefully consider the following risk factors,which could materially affect our business,financial condition or results of operations in future periods.These risks are not the only risks facing the Company.Additional risks and uncertainties not currently kno

147、wn to us or that we currently deem to be immaterial also may materially adversely affect our business,financial condition or results of operations in future periods.Summary Risk FactorsOurbusinessissubjecttonumerousmaterialandotherrisksthatyoushouldbeawareofbeforemakinganinvestmentdecision.Theserisk

148、saredescribedmorefullyinthesectionentitled“Risk Factors.”Theserisksinclude,amongothers:Aevaisanearlystagecompany,withahistoryoflosses,andhasonlysoldorotherwiseprovidedprototypesandnon-recurringengineeringservicestocustomersforthepurposeofR&Dandtestingofsuchcustomersdevelopmentprograms.Ifsuchprograms

149、arenotfullydevelopedandcommercialized,orifsuchprogramsexperiencesignificantdelays,Aevasbusiness,financialconditionandresultsofoperationswillbemateriallyadverselyaffectedandAevamayneverachieveorsustainprofitability.Aevaslimitedoperatinghistorymakesitdifficulttoevaluateitsfutureprospectsandtherisksand

150、challengesitmayencounter.IfAevasproductsarenotselectedforinclusionindevelopmentprograms,includingdevelopmentprogramsforassisteddrivingsystems(“ADAS”)orautonomousdrivingsystems(“AD”),arenotadoptedbyautomotiveOEMs,automotivetier1companies,mobilityortechnologycompaniesortheirrespectivesuppliers,Aevasbu

151、sinesswillbemateriallyandadverselyaffected.Aevareliesonthird-partysuppliers.Becausesomeoftherawmaterialsandkeycomponentsinitsproductscomefromlimitedorsinglesourcesuppliers,Aevaissusceptibletosupplyshortages,longleadtimesforcomponents,andsupplychanges,anyofwhichcoulddisruptitssupplychainandcoulddelay

152、deliveriesofitsproductstocustomers,whichcouldadverselyaffectAevasbusinessresultsofoperationsandfinancialcondition.AevaexpectstoincursubstantialR&Dcostsanddevotesignificantresourcestoidentifyingandcommercializingnewproducts,whichcouldsignificantlyreduceitsprofitabilityorincreaseitslossesandmayneverre

153、sultinrevenuetoAeva.DespitetheactionsAevaistakingtodefendandprotectitsintellectualproperty,Aevamaynotbeabletoadequatelyprotectorenforceitsintellectualpropertyrightsorpreventunauthorizedpartiesfromcopyingorreverseengineeringitsproductsortechnology.Aevaseffortstoprotectandenforceitsintellectualpropert

154、yrightsandpreventthirdpartiesfromviolatingitsrightsmaybecostly.MarketadoptionofLiDAR,includingAevas4DLiDARtechnology,isuncertain.IfmarketadoptionofLiDAR,includingAevas4DLiDARtechnology,doesnotcontinuetodevelop,ordevelopsmoreslowlythanAevaexpects,itsbusinesswillbeadverselyaffected.Aevamayexperiencedi

155、fficultiesinmanagingitsgrowthandexpandingitsoperations.Aevastransitiontoanoutsourcedmanufacturingbusinessmodelmaynotbesuccessful,whichcouldharmitsabilitytodeliverproductsandrecognizerevenue.Aevassalesandoperationsininternationalmarketsexposeittooperational,financialandregulatoryrisks,includingpossib

156、leunfavorableregulatory,political,taxandlaborconditions,whichcouldharmAevasbusiness.AevasbusinesscouldbemateriallyandadverselyaffectedbythecurrentglobalCOVID-19pandemicorotherhealthepidemicsandoutbreaks.14Aevamaybesubjecttoproductliabilityorwarrantyclaimsthatcouldresultinsignificantdirectorindirectc

157、osts,whichcouldadverselyaffectitsbusinessandoperatingresults.Aevasbusinesscouldbemateriallyandadverselyaffectedifitlostanyofitslargestcustomersoriftheywereunabletopaytheirinvoices.Aevaoperatesinahighlycompetitivemarketandsomemarketparticipantshavesubstantiallygreaterresources.Aevacompetesagainstalar

158、genumberofbothestablishedcompetitorsandnewmarketentrantswithrespectto,amongotherthings,cost,productspecificationsandtechnology.Wearerequiredtomaintaineffectiveinternalcontroloverfinancialreporting.Ourmanagementpreviouslyidentifiedmaterialweaknessesinourinternalcontroloverfinancialreportingwhichwerer

159、emediatedinthefourthquarteroffiscalyear2021.Ifothermaterialweaknessesorcontroldeficienciesareidentifiedinthefuture,wemaynotbeabletoreportourfinancialresultsaccurately,preventfraudorfileourperiodicreportsinatimelymanner,whichmayadverselyaffectinvestorconfidenceinourCompanyand,asaresult,thevalueofourc

160、ommonstock.DevelopmentsinalternativetechnologymayadverselyaffectthedemandforAevas4DLiDARtechnology.AevaishighlydependentontheservicesofSoroushSalehianDardashtiandMinaRezk,itstwofounders.Risks Related to Aevas Business and IndustryAeva is an early stage company,with a history of losses,and has only s

161、old or otherwise provided prototypes and non-recurring engineering services to customers for the purpose of R&D and testing of such customers development programs.If such programs are not fully developed and commercialized,or if such programs experience significant delays,Aevas business,financial co

162、ndition and results of operations will be materially adversely affected and Aeva may never achieve or sustain profitability.Aevahasincurrednetlossesonanannualbasissinceitsinception.Aevaincurredanetlossof$101.9millionfortheyearendedDecember31,2021andnetlossof$25.6millionfortheyearendedDecember31,2020

163、,respectively.Aevahasonlysoldorotherwiseprovidedprototypesandnon-recurringengineeringservicesandbelievesthatitwillcontinuetoincuroperatingandnetlosseseachquarteruntilatleastthetimeitbeginscommercialdeliveriesofitsproducts,whicharenotexpectedtobeginuntil2024andmayoccurlaterornotatall.EvenifAevaisable

164、tosuccessfullydevelopandsellitsproducts,therecanbenoassurancethattheywillbecommerciallysuccessful.Aevaspotentialprofitabilityisdependentuponthesuccessfuldevelopmentandsuccessfulcommercialintroductionandacceptanceofitsproducts,whichmaynotoccur.BecauseAevawillincurthecostsandexpensesofdevelopingandcom

165、mercializingitsproductsbeforeitreceivesanysignificantrevenueswithrespectthereto,Aevaslossesinfutureperiodsmaybesignificant.Aevamayneverachieveorsustainprofitability.AevaexpectstherateatwhichitwillincurlossestobesignificantlyhigherinfutureperiodsasAeva:utilizesthird-partypartnersfordesign,testingandc

166、ommercialization;expandsitsdesign,developmentandservicingcapabilities;incursexpensesrelatedtomaintainingincreasinglevelsofinventory;andincreasesitssalesandmarketingactivitiesanddevelopsitsdistributioninfrastructures.Aeva has only sold or otherwise provided prototypes and non-recurring engineering se

167、rvices to customers for the purpose of R&D and testing such customers development programs.If such programs are not fully developed and commercialized,or if such programs experience delays,cancellations or reductions,Aevas business,financial condition and results of operations will be materially adv

168、ersely affected.AevassuccessindevelopingandcommercializingitsproductsdependsinlargepartonitscustomerssuccessindevelopingandcommercializingtheirownproductsthatutilizeAevasproductsandservices.TherecanbenoguaranteethatAevascustomerswillbeabletofullydevelopandcommercializeproductsthatutilizeAevas15produ

169、ctsorthatsuchcustomerswillcontinuetoutilizeAevasproducts.Suchcustomersdevelopmentprogramsmaynoteverbedevelopedandcommercializedorsuchprogramsmaybedelayed.Ifsuchcustomersdevelopmentprogramsarenotfullydevelopedandcommercialized,experiencedelaysorotherwisedonotincorporateAevasproducts,Aevasbusiness,fin

170、ancialconditionandresultsofoperationswillbemateriallyadverselyaffected.Our estimate of total addressable market is subject to numerous uncertainties.If we have overestimated the size of our total addressable market now or in the future,our future growth rate may be limited.TheCompanysestimatesoftota

171、laddressablemarketarebasedonavarietyofinputs,includingproductionestimatesperproductgroup(whicharelargelybasedongloballightvehicleproduction(“LVP”)dataandestimatesfromIHSMarkit),contentpervehicle(“CPV”)estimates,theCompanysownmarketinsights,estimatesastothepaceandextentofstandard-settingandregulatory

172、change,internalmarketintelligenceonpricesandpenetration/adoptionratesofeachexpectedproductgroupandtheCompanyshistoryoperatinginthemarket(including,amongotherthings,itsorderandbidexperience).Wehavenotindependentlyverifiedanythird-partyinformation,includingLVPestimatesbyIHSMarkit,andcannotassureyouofi

173、tsaccuracyorcompleteness.Whilewebelieveourmarketsizeestimatesarereasonable,suchinformationisinherentlyimprecise.IfIHSMarkitorotherthird-partyorinternally-generateddatausedinourestimatesprovestobeinaccurateorwemakeerrorsinourassumptionsbasedonsuchdata,ouractualmarketmaybemorelimitedthanourestimates.I

174、naddition,theseinaccuraciesorerrorsmaycauseustomisallocatecapitalandothercriticalbusinessresources,whichcouldharmourbusiness.Evenifourtotaladdressablemarketmeetsoursizeestimatesandexperiencesgrowth,wemaynotcontinuetogrowourshareofthemarket.Ourgrowthissubjecttomanyfactors,includingthesuccessfulimplem

175、entationofourbusinessstrategy,whichissubjecttomanyrisksanduncertainties.Accordingly,theestimatesofourTAMincludedinthisAnnualReportshouldnotbetakenasindicativeofourabilitytogrowIf Aeva and its collaborators are unable to successfully develop and commercialize Aevas products or services,or experience

176、significant delays in doing so,Aevas business,financial condition and results of operations will be materially adversely affected.Aevasgrowthdependsonsuccessfullydevelopingandcommercializingitsproductsandservices.Aevacurrentlyprovidesprototypesandnon-recurringengineeringservicestocustomersforpurpose

177、sofR&Dandhasnotyetcommercializeditsproductsorservices.Aevamaynotbeabletodevelopandcommercializeitsproductsormaybedelayedindoingso.Inaddition,thesuccessfulcommercializationofAevasproductsdependsinpartonAevascollaboratorssuccessfullydevelopingandcommercializingtheirowndevelopmentprograms,andsuchprogra

178、msmaynotultimatelybedevelopedorcommercialized.Aevas limited operating history makes it difficult to evaluate its future prospects and the risks and challenges it may encounter.Aevabeganoperationsin2017andhasnotyetfullydevelopedandcommercializedanyofitsproducts.Thisrelativelylimitedoperatinghistoryma

179、kesitdifficulttoevaluateAevasfutureprospectsandtherisksandchallengesitmayencounter.RisksandchallengesAevahasfacedorexpectstofaceincludeitsabilityto:developandcommercializeitsproducts;produceanddeliverproductsofacceptableperformance;forecastitsrevenueandbudgetforandmanageitsexpenses;attractnewcustome

180、rsandretainandexpandexistingcommercialrelationships;developandprotectintellectualproperty;complywithexistingandnewormodifiedlawsandregulationsapplicabletoitsbusiness;planforandmanagecapitalexpendituresforitscurrentandfutureproducts,andmanageitssupplychainandsupplierrelationshipsrelatedtoitscurrentan

181、dfutureproducts;16anticipateandrespondtomacroeconomicchangesandchangesinthemarketsinwhichitoperates;maintainandenhancethevalueofitsreputationandbrand;effectivelymanageitsgrowthandbusinessoperations,includingtheimpactsoftheCOVID-19pandemiconitsbusiness;andhire,integrateandretaintalentedpeopleatalllev

182、elsofitsorganization.IfAevafailstoaddresstherisksanddifficultiesthatitfaces,includingthoseassociatedwiththechallengeslistedaboveaswellasthosedescribedelsewhereinthis“RiskFactors”section,itsbusiness,financialconditionandresultsofoperationscouldbeadverselyaffected.Further,becauseAevahaslimitedhistoric

183、alfinancialdataandoperatesinarapidlyevolvingmarket,anypredictionsaboutitsfuturerevenueandexpensesmaynotbeasaccurateastheywouldbeifithadalongeroperatinghistoryoroperatedinamorepredictablemarket.Aevahasencounteredinthepast,andwillencounterinthefuture,risksanduncertaintiesfrequentlyexperiencedbygrowing

184、companieswithlimitedoperatinghistoriesinrapidlychangingindustries.IfAevasassumptionsregardingtheserisksanduncertainties,whichitusestoplanandoperateitsbusiness,areincorrectorchange,orifitdoesnotaddresstheseriskssuccessfully,itsresultsofoperationscoulddiffermateriallyfromitsexpectationsanditsbusiness,

185、financialconditionandresultsofoperationscouldbeadverselyaffected.Aevas forecasts are based upon assumptions,analyses and internal estimates developed by Aevas management.If these assumptions,analyses or estimates prove to be incorrect or inaccurate,Aevas actual operating results may differ materiall

186、y from those forecasted.Aevasforecastsaresubjecttosignificantuncertaintyandarebasedonassumptions,analysesandinternalestimatesdevelopedbyAevasmanagement,anyorallofwhichmaynotprovetobecorrectoraccurate.Iftheseassumptions,analysesorestimatesprovetobeincorrectorinaccurate,Aevasactualoperatingresultsmayd

187、iffermateriallyfromthoseforecasted.TheforecastsincludeforecastsandestimatesrelatingtotheexpectedsizeandgrowthofthemarketsforwhichAevaoperatesorseekstoenter.Suchmarketsmaynotdeveloporgrow,ormaydevelopandgrowatalowerratethanexpected,andevenifthesemarketsexperiencetheforecastedgrowthdescribedherein,Aev

188、amaynotgrowitsbusinessatsimilarrates,oratall.Aevasfuturegrowthissubjecttomanyfactors,including,amongothers,itsabilitytodevelopandcommercializeitsproductsandthemarketsadoptionofitsproducts,bothofwhicharesubjecttorisksanduncertainties,manyofwhicharebeyondAevascontrol.Accordingly,theforecastsandestimat

189、esofmarketsizeandgrowthdescribedhereinshouldnotbetakenasindicativeofAevasfuturegrowth.Inaddition,theseforecastsmaynottakeintoaccounttheimpactofthecurrentglobalCOVID-19pandemic,andAevacannotassureyouthattheseforecastswillnotbemateriallyandadverselyaffectedasaresultoftheCOVID-19pandemic.Aeva continues

190、 to implement strategic initiatives designed to grow its business.These initiatives may prove more costly than Aeva currently anticipates and Aeva may not succeed in increasing its revenue in an amount sufficient to offset the costs of these initiatives and to achieve and maintain profitability.Aeva

191、s ability to effectively manage its anticipated growth and expansion of its operations will also require Aeva to enhance its operational,financial and management controls and infrastructure,human resources policies and reporting systems.These enhancements and improvements will require significant ca

192、pital expenditures and allocation of valuable management and employee resources.Aevacontinuestomakeinvestmentsandimplementinitiativesdesignedtogrowitsbusiness,including:partneringwithcustomersandpotentialcustomerstodevelopandcommercializeAevasproducts;investinginR&D;developingahighlyskilledworkforce

193、;expandingitssalesandmarketingeffortstoattractnewcustomers;investinginnewapplicationsandmarketsforitsproducts;17partneringwiththird-partiestodevelopmanufacturingprocesses;andinvestinginlegal,accounting,andotheradministrativefunctionsnecessarytosupportitsoperationsasapubliccompany.Theseinitiativesmay

194、provemoreexpensivethanAevacurrentlyanticipates,andAevamaynotsucceedinincreasingitsrevenue,ifatall,inanamountsufficienttooffsetthesehigherexpensesandtoachieveandmaintainprofitability.ThemarketopportunitiesAevaispursuingareatanearlystageofdevelopment,anditmaybemanyyearsbeforetheendmarketsAevaexpectsto

195、servegeneratedemandforitsproductsatscale,ifatall.Aevasrevenuemaybeadverselyaffectedforanumberofreasons,includingthedevelopmentand/ormarketacceptanceofnewtechnologythatcompeteswithitsproducts,failureofAevascustomerstodevelopandcommercializetheprogramsthatincludeAevasproductsortechnology,Aevasinabilit

196、ytoeffectivelymanageitsinventoryormanufactureproductsatscale,AevasinabilitytoenternewmarketsorhelpitscustomersadaptitsproductsfornewapplicationsorAevasfailuretoattractnewcustomersorexpandordersfromexistingcustomersorincreasingcompetition.Furthermore,itisdifficulttopredictthesizeandgrowthrateofAevast

197、argetmarkets,customerdemandforitsproducts,commercializationtimelines,developmentsinautonomoussensingandrelatedtechnology,theentryofcompetitiveproducts,orthesuccessofexistingcompetitiveproductsandservices.Forthesereasons,Aevadoesnotexpecttoachieveprofitabilityoverthenearterm.IfAevasrevenuedoesnotgrow

198、overthelongterm,itsabilitytoachieveandmaintainprofitabilitywillbeadverselyaffected,andthevalueofitsbusinessmaysignificantlydecrease.Aevasabilitytoeffectivelymanageitsanticipatedgrowthandexpansionofoperationswillalsorequireittoenhanceitsoperational,financialandmanagementcontrolsandinfrastructure,huma

199、nresourcespoliciesandreportingsystems.Theseenhancementsandimprovementswillrequiresignificantcapitalexpenditures,investmentsinadditionalheadcountandotheroperatingexpendituresandallocationofvaluablemanagementandemployeeresources.Aevasfuturefinancialperformanceandabilitytoexecuteonitsbusinessplanwillde

200、pend,inpart,onitsabilitytoeffectivelymanageanyfuturegrowthandexpansion.TherearenoguaranteesAevawillbeabletodosoinanefficientortimelymanner,oratall.If Aevas products are not selected for inclusion in development programs,including development programs for ADAS or autonomous driving systems(“AD”),or a

201、re not adopted by automotive OEMs,automotive tier 1 companies,mobility or technology companies or their respective suppliers,Aevas business will be materially and adversely affected.Aevaiscurrentlydevelopingproductsforuseinitscustomersdevelopmentprograms,whichareinvaryingstagesofdevelopment.Inmanyca

202、ses,Aevascustomersandtheirsuppliersaredesigninganddevelopingtheseprogramsandtherelatedtechnologyoverseveralyears.Manyoftheseprograms,includingdevelopmentprogramsforADAS,automotiveOEMs,automotivetier1companies,mobilityortechnologycompaniesortheirrespectivesuppliers,requireextensivetestingorqualificat

203、ionprocessespriortothecustomerplacingordersforlargequantitiesofproductssuchasAevasproducts,becausesuchproductswillfunctionaspartofalargersystemorplatformandmustmeetcertainotherspecifications.Aevaspendssignificanttimeandresourcestohaveitsproductsselectedfortheseprograms,whichisknownasa“designwin.”Int

204、hecaseofADandADAStechnology,adesignwinmaymeanAevasproducthasbeenselectedforuseinaparticularvehiclemodel.IfAevadoesnotachieveadesignwinwithrespecttoaparticularvehiclemodel,itmaynothaveanopportunitytosupplyitsproductstotheautomotiveOEMforthatvehiclemodelforaperiodofmanyyears.Inmanycases,thisperiodcanb

205、easlongasfivetosevenormoreyears.IfAevafailstowinasignificantnumberofvehiclemodelsfromoneormoreautomotiveOEMsortheirsuppliers,itsbusiness,resultsofoperationsandfinancialconditionwillbemateriallyandadverselyaffected.IfAevasproductsarenotselectedforaparticularprogramorifAevasproductsarenotsuccessfulins

206、uchprogram,itisunlikelythatitsproductwillbedeployedinotherprogramsofthatcustomer.If Aevas products are not selected for inclusion by consumer electronics or consumer health device manufacturers or suppliers to industrial and security applications,its business will be materially and adversely affecte

207、d.Inadditiontodevelopingproductstobeusedintheautomotiveindustry,Aevaistargetingthedeploymentofitsproductsintheconsumerelectronics,consumerhealthdeviceandindustrialandsecurityindustries.Aevas18forecastsassumethatAevawillsuccessfullycommercializeitsproductsintheseindustrysegments,inadditiontotheautomo

208、tiveindustry,andsuchsuccessfulmarketpenetrationrepresentsasignificantcontributiontoAevasforecastedresults.Asaresult,ifAevasproductsarenotselectedforinclusionbyconsumerelectronicsorconsumerhealthdevicemanufacturersorsupplierstoindustrialandsecurityapplications,Aevasbusinesswillbemateriallyandadversel

209、yaffectedandAevasactualresultsmaydiffermateriallyfromitsforecasts.Aeva relies on third-party suppliers.Because some of the raw materials and key components in its products come from limited or single source suppliers,Aeva is susceptible to supply shortages,long lead times for components,and supply c

210、hanges,any of which could disrupt its supply chain and could delay deliveries of its products to customers,which could adversely affect Aevas business,results of operations and financial condition.SomeofthecomponentsthatgointothemanufactureofAevasproductsaresourcedfromthird-partysuppliers.Todate,Aev

211、ahasproduceditsproductsinrelativelylimitedquantitiesforuseindevelopmentprograms.AlthoughAevadoesnothaveanyexperienceinmanagingitssupplychaintomanufactureanddeliveritsproductsatscale,itsfuturesuccesswilldependonitsabilitytomanageitssupplychaintomanufactureanddeliveritsproductsatscale.Someofthekeycomp

212、onentsusedtomanufactureAevasproductscomefromlimitedorsingle-sourcesuppliers.Aevaisthereforesubjecttotheriskofshortagesandlongleadtimesinthesupplyofthesecomponentsandtheriskthatitssuppliersdiscontinueormodifycomponentsusedinitsproducts.AevahasaglobalsupplychainandtheCOVID-19pandemicandotherhealthepid

213、emicsandoutbreaksmayadverselyaffectitsabilitytosourcecomponentsinatimelyorcost-effectivemannerfromitsthird-partysuppliersdueto,amongotherthings,workstoppagesorinterruptions.Forexample,Aevasproductsdependonexternalsemiconductorfoundries.AnydisruptionstothosefoundriescouldmateriallyadverselyaffectAeva

214、sabilitytomanufactureitsproducts.Inaddition,theleadtimesassociatedwithcertaincomponentsarelengthyandprecluderapidchangesinquantitiesanddeliveryschedules.Aevahasinthepastexperiencedandmayinthefutureexperiencecomponentshortagesandpricefluctuationsofcertainkeycomponentsandmaterials,andthepredictability

215、oftheavailabilityandpricingofthesecomponentsmaybelimited.Componentshortagesorpricingfluctuationscouldbematerialinthefuture.Intheeventofacomponentshortage,supplyinterruptionormaterialpricingchangefromsuppliersofthesecomponents,Aevamaynotbeabletodevelopalternatesourcesinatimelymanneroratallinthecaseof

216、soleorlimitedsources.Developingalternatesourcesofsupplyforthesecomponentsmaybetime-consuming,difficult,andcostlyandAevamaynotbeabletosourcethesecomponentsontermsthatareacceptabletoit,oratall,whichmayundermineAevasabilitytomeetitsrequirementsortofillcustomerordersinatimelymanner.Anyinterruptionordela

217、yinthesupplyofanyofthesepartsorcomponents,ortheinabilitytoobtainthesepartsorcomponentsfromalternatesourcesatacceptablepricesandwithinareasonableamountoftime,wouldadverselyaffectAevasabilitytomeetitsscheduledproductdeliveriestoitscustomers.ThiscouldadverselyaffectAevasrelationshipswithitscustomersand

218、channelpartnersandcouldcausedelaysinshipmentofitsproductsandadverselyaffectitsoperatingresults.Inaddition,increasedcomponentcostscouldresultinlowergrossmargins.EvenwhereAevaisabletopassincreasedcomponentcostsalongtoitscustomers,theremaybealapseoftimebeforeitisabletodososuchthatAevamustabsorbtheincre

219、asedcost.IfAevaisunabletobuythesecomponentsinquantitiessufficienttomeetitsrequirementsonatimelybasis,itwillnotbeabletodeliverproductstoitscustomers,whichmayresultinsuchcustomersusingcompetitiveproductsinsteadofAevas.Continued pricing pressures,automotive OEM cost reduction initiatives and the abilit

220、y of automotive OEMs to re-source or cancel vehicle or technology programs may result in lower than anticipated margins,or losses,which may adversely affect Aevas business.Cost-cuttinginitiativesadoptedbyAevascustomersoftenresultinincreaseddownwardpressureonpricing.Aevaexpectsthatitsagreementswithau

221、tomotiveOEMsmayrequirestep-downsinpricingoverthetermoftheagreementor,ifcommercialized,overtheperiodofproduction.Inaddition,AevasautomotiveOEMcustomersoftenreservetherighttoterminatetheirsupplycontractsforconvenience,whichenhancestheirabilitytoobtainpricereductions.AutomotiveOEMsalsopossesssignifican

222、tleverageovertheirsuppliers,includingAeva,becausetheautomotivecomponentsupplyindustryishighlycompetitive,servesalimitednumberofcustomersandhasahighfixedcostbase.Accordingly,AevaexpectstobesubjecttosubstantialcontinuingpressurefromautomotiveOEMsandTier1supplierstoreducethepriceofitsproducts.Itispossi

223、blethatpricingpressuresbeyondAevasexpectationscouldintensifyasautomotiveOEMspursuerestructuring,consolidationandcost-cuttinginitiatives.IfAevaisunableto19generatesufficientproductioncostsavingsinthefuturetooffsetpricereductions,itsgrossmarginandprofitabilitywouldbeadverselyaffected.Aeva expects to i

224、ncur substantial R&D costs and devote significant resources to identifying and commercializing new products,which could significantly reduce its profitability or increase its losses and may never result in revenue to Aeva.Aevasfuturegrowthdependsondevelopingitsproducts,penetratingnewmarkets,adapting

225、existingproductstonewapplicationsandcustomerrequirements,andintroducingnewproductsthatachievemarketacceptance.Aevaplanstoincursubstantial,andpotentiallyincreasing,R&Dcostsaspartofitseffortstodesign,develop,manufactureandcommercializenewproducts,andenhanceexistingproductsandthesecostsarelikelytogrowi

226、nthefuture.BecauseAevaaccountsforR&Dasanoperatingexpense,theseexpenditureswilladverselyaffectitsresultsofoperationsinthefuture.Further,AevasR&Dprogrammaynotproducesuccessfulresults,anditsnewproductsmaynotachievemarketacceptance,createadditionalrevenueorbecomeprofitable.Market adoption of LiDAR,inclu

227、ding Aevas 4D LiDAR technology,is uncertain.If market adoption of LiDAR,including Aevas 4D LiDAR technology,does not continue to develop,or develops more slowly than Aeva expects,its business will be adversely affected.WhileAevas4DLiDARtechnologycanbeappliedtodifferentusecasesacrossendmarkets,asigni

228、ficantportionofitsrevenueisprimarilygeneratedfromthedevelopmentofautomotiveapplications.DespitethefactthattheautomotiveindustryhasengagedinconsiderableefforttoresearchandtestitsLiDARproducts,includingAevas4DLiDARtechnology,forADASandADapplications,theautomotiveindustrymaynotintroduceLiDARproductsinc

229、ommerciallyavailablevehicles.Aevacontinuallystudiesemergingandcompetingsensingtechnologiesandmethodologiesanditmayaddnewsensingtechnologies.However,LiDARproductsremainrelativelynewanditispossiblethatothersensingmodalities,oranewdisruptivemodalitybasedonneworexistingtechnology,includingacombinationof

230、technology,willachieveacceptanceorleadershipintheADASandADindustries.EvenifLiDARproductsareusedininitialgenerationsofADtechnologyandcertainADASproducts,AevacannotguaranteethatLiDARproductswillbedesignedintoorincludedinsubsequentgenerationsofsuchcommercializedtechnology.Inaddition,Aevaexpectsthatinit

231、ialgenerationsofautonomousvehicleswillbefocusedonlimitedapplications,suchasrobo-taxis,andthatmassmarketadoptionofautonomoustechnologymaylagbehindtheseinitialapplicationssignificantly.ThespeedofmarketgrowthforADASorautonomousvehiclesisdifficultifnotimpossibletopredict,anditismoredifficulttopredictthi

232、smarketsfuturegrowthinlightoftheeconomicconsequencesoftheCOVID-19pandemic.Inaddition,AevaexpectscompetitionamongprovidersofsensingtechnologybasedonLiDARandothermodalitiestoincreasesubstantially.IfcommercializationofLiDARproductsisnotsuccessful,ornotassuccessfulasAevaorthemarketexpects,orifothersensi

233、ngmodalitiesgainacceptancebymarketparticipants,regulators,safetyorganizationsorothermarketparticipants,Aevasbusiness,resultsofoperationsandfinancialconditionwillbemateriallyandadverselyaffected.Aevaisinvestinginandpursuingmarketopportunitiesoutsideoftheautomotivemarkets,includinginthetechnology,cons

234、umerelectronicsandconsumerhealthdeviceindustries.Aevabelievesthatitsfuturerevenuegrowth,ifany,willdependinpartonitsabilitytoexpandwithinnewmarketssuchastheseandtoenternewmarketsastheyemerge.Eachofthesemarketspresentsdistinctrisksand,inmanycases,requiresAevatoaddresstheparticularrequirementsofthatmar

235、ket.Addressingtheserequirementscanbetime-consumingandcostly.ThemarketforLiDARtechnologyoutsideofautomotiveapplicationsisrelativelynew,rapidlydevelopingandunproveninmanymarketsorindustries.ManyofAevascustomersoutsideoftheautomotiveindustryarestillinthetestinganddevelopmentphasesanditcannotbecertainth

236、attheywillcommercializeproductsorsystemswithAevas4DLiDARtechnologyoratall.AevacannotbecertainthatLiDARwillbesoldintothesemarkets,oranymarketoutsideofautomotivemarket,atscale.AdoptionofLiDARproducts,includingAevasproducts,outsideoftheautomotiveindustrywilldependonnumerousfactors,includingwhetherthete

237、chnologicalcapabilitiesofLiDARandLiDAR-basedproductsmeetuserscurrentoranticipatedneeds,whetherthebenefitsofdesigningLiDARintolargersensingsystemsoutweighthecosts,complexityandtimeneededtodeploysuchtechnologyorreplaceormodifyexistingsystemsthatmayhaveusedothermodalitiessuchascamerasandradar,whetherus

238、ersinotherapplicationscanmovebeyondthetestinganddevelopmentphasesandproceedtocommercializingsystemssupportedbyLiDARtechnologyand20whetherLiDARdeveloperssuchasAevacankeeppacewithrapidtechnologicalchangeincertaindevelopingmarketsandtheglobalresponsetotheCOVID-19pandemicandthelengthofanyassociatedworks

239、toppages.IfLiDARtechnologydoesnotachievecommercialsuccessoutsideoftheautomotiveindustry,orifthemarketdevelopsatapaceslowerthanAevaexpects,itsbusiness,resultsofoperationandfinancialconditionwillbemateriallyandadverselyaffected.Aeva may experience difficulties in managing its growth and expanding its

240、operations.Aevaexpectstoexperiencesignificantgrowthinthescopeandnatureofitsoperations.AevasabilitytomanageitsoperationsandfuturegrowthwillrequireAevatocontinuetoimproveitsoperational,financialandmanagementcontrols,complianceprogramsandreportingsystems.Aevaiscurrentlyintheprocessofcontinuingtostrengt

241、henitscomplianceprograms,includingitscomplianceprogramsrelatedtoexportcontrols,privacyandcybersecurityandanti-corruption.Aevamaynotbeabletoimplementimprovementsinanefficientortimelymannerandmaydiscoverdeficienciesinexistingcontrols,programs,systemsandprocedures,whichcouldhaveanadverseeffectonitsbusi

242、ness,reputationandfinancialresults.Aeva has only sold or otherwise provided prototypes and non-recurring engineering services to customers for the purpose of R&D and testing of such customers development programs,and Aeva expects to continue to do so as it seeks to develop and commercialize its prod

243、ucts.As a result,Aeva expects its results of operations to fluctuate on a quarterly and annual basis,which could cause the stock price of the Company to fluctuate or decline.Aevasquarterlyresultsofoperationshavefluctuatedinthepastandmayvarysignificantlyinthefuture.Assuch,historicalcomparisonsofitsop

244、eratingresultsmaynotberelevant,meaningfulorindicativeoffutureresults.Inparticular,becauseAevassalestodatehaveprimarilybeenofprototypesandnon-recurringengineeringservicestocustomersforthepurposeofR&Dandtestingofsuchcustomersdevelopmentprograms,salesinanygivenquartercanfluctuatebasedonthetimingandsucc

245、essofitscustomersdevelopmentprojects.Accordingly,theresultsofanyonequartershouldnotberelieduponasanindicationoffutureperformance.Aevasquarterlyfinancialresultsmayfluctuateasaresultofavarietyoffactors,manyofwhichareoutsideofitscontrolandmaynotfullyreflecttheunderlyingperformanceofAevasbusiness.Thesef

246、luctuationscouldadverselyaffectAevasabilitytomeetitsexpectationsorthoseofsecuritiesanalysts,ratingsagenciesorinvestors.IfAevadoesnotmeettheseexpectationsforanyperiod,thevalueofitsbusinessanditssecuritiescoulddeclinesignificantly.Factorsthatmaycausethesequarterlyfluctuationstoinclude,withoutlimitatio

247、n,thoselistedbelow:thetimingandmagnitudeofordersandshipmentsofAevasproductsinanyquarter;thetimingandmagnitudeofsalesreturnsandwarrantyclaimsofAevasproductsinanyquarter;thetimingandmagnitudeofnon-recurringengineeringservicesrevenueinanyquarter;pricingchangesAevamayadopttodrivemarketadoptionorinrespon

248、setocompetitivepressure;Aevasabilitytoretainitsexistingcustomersandattractnewcustomers;Aevasabilitytodevelop,introduce,manufactureandshipinatimelymannerproductsthatmeetcustomerrequirements;disruptionsinAevassaleschannelsorterminationofitsrelationshipwithimportantchannelpartners;delaysincustomerspurc

249、hasingcyclesordefermentsofcustomerspurchasesinanticipationofnewproductsorupdatesfromAevaoritscompetitors;fluctuationsindemandpressuresforAevasproducts;themixofproductsandservicessoldinanyquarter;thedurationoftheglobalCOVID-19pandemicandthetimeittakesforeconomicrecovery;thetimingandrateofbroadermarke

250、tadoptionofautonomoussystemsutilizingAevasproductsortechnologyacrosstheautomotiveandothermarketsectors;21marketacceptanceofLiDARandfurthertechnologicaladvancementsbyAevascompetitorsandothermarketparticipants;theabilityofAevascustomerstocommercializesystemsthatincorporateitsproducts;anychangeinthecom

251、petitivedynamicsofAevasmarkets,includingconsolidationofcompetitors,regulatorydevelopmentsandnewmarketentrants;Aevasabilitytoeffectivelymanageitsinventory;changesinthesource,cost,availabilityofandregulationspertainingtomaterialsAevauses;adverselitigation,judgments,settlementsorotherlitigation-related

252、costs,orclaimsthatmaygiverisetosuchcosts;andgeneraleconomic,industryandmarketconditions,includingtradedisputes.Aevas transition to an outsourced manufacturing business model may not be successful,which could harm its ability to deliver products and recognize revenue.Aevaisintheinitialstagesoftransit

253、ioningfromamanufacturingmodelinwhichitsourcescomponentsfromthird-partiesandassemblesitsfinalproductsatitsSanFranciscoBayArealocation,toonewhereitreliesexclusivelyonthird-partymanufacturersinforeignanddomesticlocationsforboththemanufacturingandassemblyofitsproducts.Aevabelievestheuseofthird-partymanu

254、facturersinthismannerwillhavebenefits,butinthenearterm,whileitbeginsworkingwithnewcounterparties,Aevamayloserevenue,incurincreasedcostsandpotentiallyharmitscustomerrelationships.Relianceonthird-partymanufacturersreducesAevascontrolovertheproductionprocess,includingreducedcontroloverquality,productco

255、stsandproductsupplyandtiming.Aevamayexperiencedelaysinshipmentsorissuesconcerningproductqualityfromitsthird-partymanufacturers.IfanyofAevasthird-partymanufacturersexperienceinterruptions,delaysordisruptionsinsupplyingitsproducts,includingbynaturaldisasters,theglobalCOVID-19pandemic,otherhealthepidem

256、icsandoutbreaks,orworkstoppagesorcapacityconstraints,Aevasabilitytoshipproductstodistributorsandcustomerswouldbedelayed.Inaddition,unfavorableeconomicconditionscouldresultinfinancialdistressamongthird-partymanufacturersuponwhichAevarelies,therebyincreasingtheriskofdisruptionofsuppliesnecessarytofulf

257、illAevasproductionrequirementsandmeetcustomerdemands.Additionally,ifanyofAevasthird-partymanufacturersexperiencequalitycontrolproblemsintheirmanufacturingoperationsandAevasproductsdonotmeetcustomerorregulatoryrequirements,itcouldberequiredtocoverthecostofrepairorreplacementofanydefectiveproducts.The

258、sedelaysorproductqualityissuescouldhaveanimmediateandmaterialadverseeffectonAevasabilitytofulfillordersandcouldhaveanegativeeffectonitsoperatingresults.Inaddition,suchdelaysorissueswithproductqualitycouldadverselyaffectAevasreputationanditsrelationshipwithitschannelpartners.Ifthird-partymanufacturer

259、sexperiencefinancial,operational,manufacturingcapacityorotherdifficulties,orexperienceshortagesinrequiredcomponents,oriftheyareotherwiseunableorunwillingtocontinuetomanufactureAevasproductsinrequiredvolumesoratall,Aevassupplymaybedisrupted,itmayberequiredtoseekalternatemanufacturersanditmayberequire

260、dtore-designitsproducts.Itwouldbetime-consuming,andcouldbecostlyandimpracticable,tobegintousenewmanufacturersanddesigns,andsuchchangescouldcausesignificantinterruptionsinsupplyandcouldhaveanadverseeffectonAevasabilitytomeetitsscheduledproductdeliveriesandmaysubsequentlyleadtothelossofsales.WhileAeva

261、takesmeasurestoprotectitstradesecrets,theuseofthird-partymanufacturersmayalsoriskdisclosureofitsinnovativeandproprietarymanufacturingmethodologies,whichcouldadverselyaffectAevasbusiness.Aevas outsourced manufacturing business model may not be successful.Aeva depends on manufacturing counterparties,a

262、ssemble and test its products.If Aevas manufacturing counterparties are not able to perform their obligations at a sufficiently high standard or in a timely manner,Aevas ability to deliver products and recognize revenue may be harmed and its business could be adversely affected.Aevareliesonthird-par

263、tymanufacturers.Inthenearterm,whileAevaisbeginningmanufacturingwithnewcounterparties,Aevamayloserevenue,incurincreasedcostsandpotentiallyharmitscustomerrelationships.22Relianceonthird-partymanufacturersreducesAevascontroloverthemanufacturingprocess,includingreducedcontroloverquality,productcostsandp

264、roductsupplyandtiming.Aevamayexperiencedelaysinshipmentsorissuesconcerningproductqualityfromitsthird-partymanufacturers.IfanyofAevasthird-partymanufacturersexperienceinterruptions,delaysordisruptionsinsupplyingitsproducts,includingbynaturaldisasters,theglobalCOVID-19pandemic,otherhealthepidemicsando

265、utbreaks,orworkstoppagesorcapacityconstraints,Aevasabilitytoshipproductstodistributorsandcustomerswouldbedelayed.Inaddition,unfavorableeconomicconditionscouldresultinfinancialdistressamongthird-partymanufacturersuponwhichAevarelies,therebyincreasingtheriskofdisruptionofsuppliesnecessarytofulfillAeva

266、sproductionrequirementsandmeetcustomerdemands.Additionally,ifanyofAevasthird-partymanufacturersexperiencequalitycontrolproblemsintheirmanufacturingoperationsandAevasproductsdonotmeetcustomerorregulatoryrequirements,itcouldberequiredtocoverthecostofrepairorreplacementofanydefectiveproducts.Thesedelay

267、sorproductqualityissuescouldhaveanimmediateandmaterialadverseeffectonAevasabilitytofulfillordersandcouldhaveanegativeeffectonitsoperatingresults.Inaddition,suchdelaysorissueswithproductqualitycouldadverselyaffectAevasreputationanditsrelationshipwithitschannelpartners.Ifthird-partymanufacturersexperi

268、encefinancial,operational,manufacturingcapacityorotherdifficulties,orexperienceshortagesinrequiredcomponents,oriftheyareotherwiseunableorunwillingtocontinuetomanufactureAevasproductsinrequiredvolumesoratall,Aevassupplymaybedisrupted,itmayberequiredtoseekalternatemanufacturersanditmayberequiredtore-d

269、esignitsproducts.Itwouldbetime-consuming,andcouldbecostlyandimpracticable,tobegintousenewmanufacturersanddesigns,andsuchchangescouldcausesignificantinterruptionsinsupplyandcouldhaveanadverseeffectonAevasabilitytomeetitsscheduledproductdeliveriesandmaysubsequentlyleadtothelossofsales.WhileAevatakesme

270、asurestoprotectitstradesecrets,theuseofthird-partymanufacturersmayalsoriskdisclosureofitsinnovativeandproprietarymanufacturingmethodologies,whichcouldadverselyaffectAevasbusiness.Aeva,its outsourcing partners and its suppliers may rely on complex machinery for Aevas production,which involves a signi

271、ficant degree of risk and uncertainty in terms of operational performance and costs.Aeva,its outsourcing partners and its suppliers may also rely on highly skilled labor for Aevas production,and if such highly skilled labor is unavailable,Aevas business could be adversely affected.Aevasoutsourcingpa

272、rtnersanditssuppliersmayrelyoncomplexmachineryfortheproduction,assemblyandinstallationofAevasproducts,whichwillinvolveasignificantdegreeofuncertaintyandriskintermsofoperationalperformanceandcosts.Thefacilitiesofitsoutsourcingpartnersandsuppliersconsistoflarge-scalemachinerycombiningmanycomponents.Th

273、esecomponentsmaysufferunexpectedmalfunctionsfromtimetotimeandwilldependonrepairsandsparepartstoresumeoperations,whichmaynotbeavailablewhenneeded.Unexpectedmalfunctionsofthesecomponentsmaysignificantlyaffecttheintendedoperationalefficiency.Inaddition,Aevaanditsoutsourcingpartnersanditssuppliersalsore

274、lyonhighlyskilledlaborforAevasassemblyandproduction.Ifsuchhighlyskilledlaborisunavailable,Aevasbusinesscouldbeadverselyaffected.OperationalperformanceandcostscanbedifficulttopredictandareofteninfluencedbyfactorsoutsideofAevascontrol,suchas,butnotlimitedto,scarcityofnaturalresources,environmentalhaza

275、rdsandremediation,costsassociatedwithdecommissioningofmachines,labordisputesandstrikes,difficultyordelaysinobtaininggovernmentalpermits,damagesordefectsinelectronicsystems,industrialaccidents,fire,seismicactivityandnaturaldisasters.Shouldoperationalrisksmaterialize,itmayresultinthepersonalinjurytoor

276、deathofworkers,thelossofproductionequipment,damagetoproductionfacilities,monetarylosses,delaysandunanticipatedfluctuationsinproduction,environmentaldamage,administrativefines,increasedinsurancecostsandpotentiallegalliabilities,allwhichcouldhaveamaterialadverseeffectonAevasbusiness,prospects,financia

277、lconditionoroperatingresults.As part of growing its business,Aeva may make acquisitions.If Aeva fails to successfully select,execute or integrate its acquisitions,then its business,results of operations and financial condition could be materially adversely affected,and our stock price could decline.

278、Fromtimetotime,Aevamayundertakeacquisitionstoaddnewproductsandtechnologies,acquiretalent,gainnewsaleschannelsorenterintonewmarketsorsalesterritories.Inadditiontopossiblestockholderapproval,Aevamayneedapprovalsandlicensesfromrelevantgovernmentauthoritiesfortheacquisitionsandtocomplywithanyapplicablel

279、awsandregulations,whichcouldresultinincreaseddelayandcosts,andmaydisruptAevasbusinessstrategyifitfailstodoso.Furthermore,acquisitionsandthesubsequentintegrationofnewassets,businesses,keypersonnel,customers,vendorsandsuppliersrequiresignificantattentionfromAevasmanagementandcouldresultinadiversionofr

280、esourcesfromAevasexistingbusiness,whichinturncouldhaveanadverse23effectonAevasoperations.AcquiredassetsorbusinessesmaynotgeneratethefinancialresultsAevaexpects.Acquisitionscouldresultintheuseofsubstantialamountsofcash,potentiallydilutiveissuancesofequitysecurities,theoccurrenceofsignificantgoodwilli

281、mpairmentcharges,amortizationexpensesforotherintangibleassetsandexposuretopotentialunknownliabilitiesoftheacquiredbusiness.Moreover,thecostsofidentifyingandconsummatingacquisitionsmaybesignificant.Todate,Aevahasnoexperiencewithacquisitionsandtheintegrationofacquiredtechnologyandpersonnel.Failuretosu

282、ccessfullyidentify,complete,manageandintegrateacquisitionscouldmateriallyandadverselyaffectitsbusiness,financialconditionandresultsofoperationsandcouldcauseourstockpricetodecline.Aevas sales and operations in international markets expose it to operational,financial and regulatory risks,including pos

283、sible unfavorable regulatory,political,tax and labor conditions,which could harm Aevas business.InternationalsalescompriseasignificantamountofAevasoverallrevenue.SalestointernationalcustomershaveaccountedforasignificantportionofAevasrevenuesince2018.Aevaiscommittedtogrowingitsinternationalsales,andw

284、hileithascommittedresourcestoexpandingitsinternationaloperationsandsaleschannels,theseeffortsmaynotbesuccessful.Internationaloperationsaresubjecttoanumberofotherrisks,including:exchangeratefluctuations;politicalandeconomicinstability,internationalterrorismandanti-Americansentiment,particularlyinemer

285、gingmarkets;globalorregionalhealthcrises,suchastheCOVID-19pandemicorotherhealthepidemicsandoutbreaks;potentialforviolationsofanti-corruptionlawsandregulations,suchasthoserelatedtobriberyandfraud;preferenceforlocallybrandedproducts,andlawsandbusinesspracticesfavoringlocalcompetition;potentialconseque

286、ncesof,anduncertaintyrelatedto,the“Brexit”processintheUnitedKingdom,whichcouldleadtoadditionalexpenseandcomplexityindoingbusinessthere;increaseddifficultyinmanaginginventory;delayedrevenuerecognition;lesseffectiveprotectionofintellectualproperty;stringentregulationoftheautonomousorothersystemsorprod

287、uctsusingAevasproductsandstringentconsumerprotectionandproductcomplianceregulations,includingbutnotlimitedtoGeneralDataProtectionRegulationintheEuropeanUnion,Europeancompetitionlaw,theRestrictionofHazardousSubstancesDirective,theWasteElectricalandElectronicEquipmentDirectiveandtheEuropeanEcodesignDi

288、rectivethatarecostlytocomplywithandmayvaryfromcountrytocountry;difficultiesandcostsofstaffingandmanagingforeignoperations;importandexportlawsandtheimpactoftariffs;changesinlocaltaxandcustomsdutylawsorchangesintheenforcement,applicationorinterpretationofsuchlaws;andU.S.governmentsrestrictionsoncertai

289、ntechnologytransfertocertaincountriesofconcern.TheoccurrenceofanyoftheseriskscouldnegativelyaffectAevasinternationalbusinessandconsequentlyitsbusiness,operatingresultsandfinancialcondition.24Aeva faces risks associated with manufacturing operations outside the United States.ManufacturingoutsidetheUn

290、itedStatesissubjecttoseveralinherentrisks,including:foreigncurrencyfluctuations;localeconomicconditions;politicalinstability;importorexportrequirements;foreigngovernmentregulatoryrequirements;reducedprotectionforintellectualpropertyrightsinsomecountries;tariffsandothertradebarriersandrestrictions;an

291、dpotentiallyadversetaxconsequences.SuchriskscouldincreaseAevascostsanddecreaseitsprofitmargins.The complexity of Aevas products could result in unforeseen delays or expenses from undetected defects,errors or reliability issues in hardware or software which could reduce the market adoption of its new

292、 products,damage its reputation with current or prospective customers,expose Aeva to product liability and other claims and adversely affect its operating costs.Aevasproductsarehighlytechnicalandverycomplexandrequirehighstandardstomanufactureandhaveinthepastandwilllikelyinthefutureexperiencedefects,

293、errorsorreliabilityissuesatvariousstagesofdevelopment.Aevamaybeunabletotimelyreleasenewproducts,manufactureexistingproducts,correctproblemsthathavearisenorcorrectsuchproblemstoitscustomerssatisfaction.Additionally,undetectederrors,defectsorsecurityvulnerabilities,especiallyasnewproductsareintroduced

294、orasnewversionsarereleased,couldresultinseriousinjurytotheendusersoftechnologyincorporatingAevasproducts,orthoseinthesurroundingarea,itscustomersneverbeingabletocommercializetechnologyincorporatingourproducts,litigationagainstAeva,negativepublicityandotherconsequences.Theserisksareparticularlypreval

295、entinthehighlycompetitiveADandADASmarkets.SomeerrorsordefectsinAevasproductsmayonlybediscoveredaftertheyhavebeentested,commercializedanddeployedbycustomers.Ifthatisthecase,Aevamayincursignificantadditionaldevelopmentcostsandproductrecall,repairorreplacementcosts.Theseproblemsmayalsoresultinclaims,in

296、cludingclassactions,againstAevabyitscustomersorothers.Aevasreputationorbrandmaybedamagedasaresultoftheseproblemsandcustomersmaybereluctanttobuyitsproducts,whichcouldadverselyaffectitsabilitytoretainexistingcustomersandattractnewcustomersandcouldadverselyaffectitsfinancialresults.Inaddition,Aevacould

297、facemateriallegalclaimsforbreachofcontract,productliability,fraud,tortorbreachofwarrantyasaresultoftheseproblems.Defendingalawsuit,regardlessofitsmerit,couldbecostlyandmaydivertmanagementsattentionandadverselyaffectthemarketsperceptionofAevaanditsproducts.Inaddition,Aevasbusinessliabilityinsuranceco

298、veragecouldproveinadequatewithrespecttoaclaimandfuturecoveragemaybeunavailableonacceptabletermsoratall.Theseproduct-relatedissuescouldresultinclaimsagainstAevaanditsbusinesscouldbeadverselyaffected.Aeva may be subject to product liability or warranty claims that could result in significant direct or

299、 indirect costs,which could adversely affect its business and operating results.Aevascustomersuseitsproductsandtechnologyinvariousapplications,includingADandADASapplications,whichpresenttheriskofsignificantinjury,includingfatalities.Aevamaybesubjecttoclaimsifaproductusingitstechnologyisinvolvedinana

300、ccidentandpersonsareinjuredorpurporttobeinjured.AnyinsurancethatAevacarriesmaynotbesufficientoritmaynotapplytoallsituations.Similarly,AevascustomerscouldbesubjectedtoclaimsasaresultofsuchaccidentsandbringlegalclaimsagainstAevatoattempttoholditliable.Inaddition,iflawmakersorgovernmentalagencieswereto

301、determinethattheuseofAevasproducts,includingADorcertainADASapplications,increasedtheriskofinjurytoallorasubsetofitscustomers,theymay25passlawsoradoptregulationsthatlimittheuseofAevasproductsorincreaseitsliabilityassociatedwiththeuseofitsproductsorthatregulatetheuseofordelaythedeploymenttheproductsth

302、atuseAevastechnology,includingADandADAStechnology.AnyoftheseeventscouldadverselyaffectAevasbrand,relationshipswithcustomers,operatingresultsorfinancialcondition.Aevatypicallyprovidesalimited-timewarrantyonitsproducts.TheoccurrenceofanymaterialdefectsinitsproductscouldmakeAevaliablefordamagesandwarra

303、ntyclaims.Inaddition,Aevacouldincursignificantcoststocorrectanydefects,warrantyclaimsorotherproblems,includingcostsrelatedtoproductrecalls.AnynegativepublicityrelatedtotheperceivedqualityofAevasproductscouldaffectitsbrandimage,partnerandcustomerdemand,andadverselyaffectitsoperatingresultsandfinancia

304、lcondition.Also,warranty,recallandproductliabilityclaimsmayresultinlitigation,includingclassactions,theoccurrenceofwhichcouldbecostly,lengthyanddistractingandadverselyaffectAevasbusinessandoperatingresults.If Aeva or its suppliers do not maintain sufficient inventory or if they do not adequately man

305、age their respective inventory,Aeva could lose sales or incur higher inventory-related expenses,which could negatively affect Aevas operating results.Toensureadequateinventorysupply,Aevaanditssuppliersmustforecastinventoryneedsandexpenses,placeorderssufficientlyinadvancewiththeirrespectivesuppliersa

306、ndmanufacturingcounterpartiesandmanufactureproductsbasedonitsestimatesoffuturedemandforparticularproducts.FluctuationsintheadoptionofLiDARmayaffectAevasabilitytoforecastitsfutureoperatingresults,includingrevenue,grossmargins,cashflowsandprofitability.Aevasabilitytoaccuratelyforecastdemandforitsprodu

307、ctscouldbeaffectedbymanyfactors,includingtherapidlychangingnatureoftheADandADASmarketsinwhichitoperates,theuncertaintysurroundingthemarketacceptanceandcommercializationofLiDARtechnology,theemergenceofnewmarkets,anincreaseordecreaseincustomerdemandforAevasproductsorforproductsandservicesofitscompetit

308、ors,productintroductionsbycompetitors,theCOVID-19pandemic,otherhealthepidemicsandoutbreaks,andanyassociatedworkstoppagesorinterruptions,unanticipatedchangesingeneralmarketconditionsandtheweakeningofeconomicconditionsorconsumerconfidenceinfutureeconomicconditions.IfAevasproductsarecommercializedinind

309、ustriesthatarequicklygrowing,includingADandADASapplications,bothofwhicharecurrentlyexperiencingrapidgrowthindemand,Aevamayfacechallengesacquiringadequatesuppliestomanufactureitsproductsand/orAevaanditsmanufacturingcounterpartiesmaynotbeabletomanufactureitsproductsataratenecessarytosatisfythelevelsof

310、demand,whichwouldnegativelyaffectAevasrevenue.ThisriskmaybeexacerbatedbythefactthatAevamaynotcarryorbeabletoobtainforitsmanufacturersasignificantamountofinventorytosatisfyshort-termdemandincreases.Ifitfailstoaccuratelyforecastcustomerdemand,Aevamayexperienceexcessinventorylevelsorashortageofproducts

311、availableforsale.Inventorylevelsinexcessofcustomerdemandmayresultininventorywrite-downsorwrite-offsandthesaleofexcessinventoryatdiscountedprices,whichwouldadverselyaffectAevasfinancialresults,includingitsgrossmargin,andhaveanegativeeffectonitsbrand.Conversely,ifAevaunderestimatescustomerdemandforits

312、products,Aeva,oritsmanufacturingcounterparties,maynotbeabletodeliverproductstomeetitsrequirements,andthiscouldresultindamagetoAevasbrandandcustomerrelationshipsandadverselyaffectitsrevenueandoperatingresults.The average selling prices of Aevas products could decrease rapidly over the life of the pro

313、duct,which may negatively affect Aevas revenue and margins.In addition,the selling prices Aeva is able to ultimately charge in the future for the products it is currently developing or commercializing may be less than what Aeva currently projects,which may cause Aevas actual operating results to dif

314、fer materially from its projections.ThepricesthatAevaisabletoultimatelychargeinthefuturefortheproductsitiscurrentlydevelopingorcommercializingmayexperiencedeclinesforavarietyofreasons,manyofwhichareoutsideofAevascontrol.Inordertosellproductsthathaveafallingaverageunitsellingpriceandmaintainmarginsat

315、thesametime,Aevawillneedtocontinuallyreduceproductandmanufacturingcosts.Tomanagemanufacturingcosts,Aevamustengineerthemostcost-effectivedesignforitsproductsandcollaboratewithitsmanufacturingcounterpartiestoreducemanufacturingcosts.Aevaalsoneedstocontinuallyintroducenewproductswithhighersalespricesan

316、dgrossmargininordertomaintainitsoverallgrossmargin.IfAevaisunabletomanagethecostofolderproductsorsuccessfullyintroducenewproductswithahighergrossmargin,itsrevenueandoverallgrossmarginwouldlikely26decline.Inaddition,thesellingpricesAevaisabletoultimatelychargeinthefuturefortheproductsitiscurrentlydev

317、elopingorcommercializingmaybelessthanwhatAevacurrentlyprojects,whichmaycauseAevasactualoperatingresultstodiffermateriallyfromitsforecastsandprojections.Adverse conditions in the automotive industry or the global economy more generally could have adverse effects on Aevas results of operations.WhileAe

318、vamakesitsstrategicplanningdecisionsbasedontheassumptionthatthemarketsitistargetingwillgrow,Aevasbusinessisdependent,inlargeparton,anddirectlyaffectedby,businesscyclesandotherfactorsaffectingtheglobalautomobileindustryandglobaleconomygenerally.Automotiveproductionandsalesarehighlycyclicalanddependon

319、generaleconomicconditionsandotherfactors,includingconsumerspendingandpreferences,changesininterestratesandcreditavailability,consumerconfidence,fuelcosts,fuelavailability,environmentalimpact,governmentalincentivesandregulatoryrequirements,andpoliticalvolatility,especiallyinenergy-producingcountriesa

320、ndgrowthmarkets.Inaddition,automotiveproductionandsalescanbeaffectedbyAevasautomotiveOEMcustomersabilitytocontinueoperatinginresponsetochallengingeconomicconditionsandinresponsetolaborrelationsissues,regulatoryrequirements,tradeagreementsandotherfactors.ThevolumeofautomotiveproductioninNorthAmerica,

321、Europeandtherestoftheworldhasfluctuated,sometimessignificantly,fromyeartoyear,andAevaexpectssuchfluctuationstogiverisetofluctuationsinthedemandforitsproducts.AnysignificantadversechangeinanyofthesefactorsmayresultinareductioninautomotivesalesandproductionbyAevasautomotiveOEMcustomersandcouldhaveamat

322、erialadverseeffectonitsbusiness,resultsofoperationsandfinancialcondition.The discontinuation,lack of commercial success,or loss of business with respect to a particular vehicle model or technology package,or consumer electronics,consumer health,security or industrial application,for which Aeva is a

323、significant supplier could reduce Aevas sales and adversely affect its profitability.IfAevaisabletosecuredesignwinsanditsproductsareincludedinitscustomersapplications,includingADandADASproductsorconsumerelectronics,consumerhealth,industrialorsecurityapplications,itexpectstoenterintosupplyagreementsw

324、iththerelevantcustomer.ForADandADASproducts,marketpracticedictatesthatthesesupplyagreementstypicallyrequireAevatosupplyacustomersrequirementsforaparticularvehiclemodelorADorADASproduct,ratherthansupplyasetnumberofproducts.Thesecontractscanhaveshorttermsand/orcanbesubjecttorenegotiation,sometimesasfr

325、equentlyasannually,allofwhichmayaffectproductpricing,andmaybeterminatedbyAevascustomersatanytime.Therefore,evenifAevaissuccessfulinobtainingdesignwinsandthesystemsintowhichitsproductsarebuiltarecommercialized,thediscontinuationof,thelossofbusinesswithrespectto,oralackofcommercialsuccessofaparticular

326、vehiclemodelortechnologypackageforwhichAevaisasignificantsuppliercouldmeanthattheexpectedsalesofAevasproductswillnotmaterialize,materiallyandadverselyaffectingitsbusiness.Inaddition,thelossofbusinesswithrespecttoacustomersapplicationintheconsumerelectronics,consumerhealth,securityorindustrialapplica

327、tionforwhichAevaisasignificantsuppliercouldreduceAevassalesandadverselyaffectitsprofitability.We may not be able to anticipate changing customer and consumer preferences or respond quickly enough to changes in technology and standards to be able to develop and introduce commercially viable products.

328、Ourabilitytomaintainandimproveexistingproducts,anticipatechangesintechnology,regulatoryandotherstandards,andtosuccessfullydevelopandintroducenewandenhancedtechnologiesandproductsonatimelybasiswillbeasignificantfactorinourabilitytobecompetitiveandgainmarketacceptance.Ifweareunsuccessfulorarelesssucce

329、ssfulthanourcompetitorsinpredictingthecourseofmarketdevelopmentandperceptionsofdriversregardingautonomousdrivingcapabilitiesandsolutions,developinginnovativeproducts,processes,and/oruseofmaterials,oradaptingtonewtechnologiesorevolvingregulatory,industryorcustomerrequirements,wewillsufferfromacompeti

330、tivedisadvantage.Further,theglobalautomotiveindustryisexperiencingaperiodofsignificanttechnologicalchange,includingthedevelopmentofcombinedsoftwareandsystem-on-chip(“SoC”)hardwaresolutionstohandletheinfluxofinformationcomingintovehiclesfromincreasingnumbersofsensorsandefficientlymanagemultilevelproc

331、essinginrealtimewhileoperatingwithinasystemspowerbudget.Asaresult,thesuccessofportionsofourbusinessrequiresustodevelop,acquireand/orincorporatenewtechnologies.Wemayneedtoadjustourstrategyandprojectedtimelinesbasedonhowthesetechnologicalchallengesevolveovertime.27Thereisariskthatthesechallengeswillno

332、tbeovercome,andthatourinvestmentsinR&Dinitiativeswillnotleadtosuccessfulnewproductsandacorrespondingincreaseinrevenue,whichcouldhaveamaterialadverseeffectonourbusiness,resultsofoperationsandfinancialcondition.Since many of the markets in which Aeva competes are new and rapidly evolving,it is difficu

333、lt to forecast long-term end-customer adoption rates and demand for Aevas products.Aevaispursuingopportunitiesinmarketsthatareundergoingrapidchanges,includingtechnologicalandregulatorychanges,anditisdifficulttopredictthetimingandsizeoftheopportunities.Forexample,ADandLiDAR-basedADAS,andconsumerelectronics,consumerhealthandindustrialapplicationsrequirecomplextechnology.Becausetheseproductsdependont