Exhibit 1.01
Conflict Minerals Report
Napco Security Technologies, Inc.
2020 Calendar Year
Overview
Napco Security Technologies, Inc., headquartered in Amityville, N.Y. was incorporated in Delaware in 1971. “The Company,” "Napco,” "we," "our" and "us" are used interchangeably to refer to Napco Security Technologies, Inc. and its subsidiaries.
The Company is a diversified manufacturer of security products, encompassing electronic door-locking devices, intrusion and fire alarms and building access control systems. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment.
This report for the year ended December 31, 2020 is filed to comply with Rule 13p-1 under the Securities Exchange Act of 1934 (“Rule 13p-1”), which was adopted by the Securities and Exchange Commission to implement reporting and disclosure requirements related to Conflict Minerals, as defined in Item 1.01(d)(3) of the Form SD, “Conflict Minerals,” as directed by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Rule 13p-1 imposes certain reporting obligations on certain SEC reporting companies whose manufactured products contain Conflict Minerals.
Part I. Due Diligence
Design of Conflict Minerals Program
The Company has integrated into its supply chain management programs the Organization for Economic Co-operation and Development five-step framework for risk-based due diligence for responsible supply chains of minerals from conflict-affected and high-risk areas.
Description of Due Diligence Measures Performed
Below is a description of the measures performed for this reporting period to exercise due diligence on the source and chain of custody of the necessary conflict minerals contained in our products which we had reason to believe may have originated from the Covered Countries and may not have come from recycled or scrap sources:
· | Compared any smelters or refiners which were included in the supplier responses from our survey to the list of smelters and refiners maintained by the CFSI (conflict-free sourcing initiative). Appendix A contains a list of these smelters and refiners as well as the certification status as reported by the CFSI. |
· | Contacted surveyed suppliers on responses to supply chain surveys that we identified contained incomplete or potentially inaccurate information to seek additional clarifying information. |
· | Compared smelters and refiners identified by surveyed suppliers against the list of facilities that have received a “conflict-free” designation from the CFSP (conflict-free smelter program). |
· | Napco provided 3 progress reports to Napco’s Senior Vice President of Operations and Finance. These progress reports summarized the status of the applicable conflict minerals program. |
Results of our Due Diligence Efforts
Inherent Limitations on Due Diligence Measures
As a downstream purchaser of products which contain conflict minerals, our due diligence measures can provide only reasonable, not absolute, assurance regarding the source and chain of custody of the necessary conflict minerals. Our due diligence processes are based on the necessity of seeking data from our direct suppliers and those suppliers seeking similar information within their supply chains to identify the original sources of the necessary conflict minerals. We also rely, to a
large extent, on information collected and provided by independent third party audit programs. Such sources of information, as well as the smelters and refiner facility visits, may yield inaccurate or incomplete information and may be subject to fraud.
Results of Reasonable Country of Origin Inquiry Efforts
Based on the survey responses received, we have identified 131 smelters and refiners that are certified conflict-free. Based on the surveys provided and diligence efforts that were completed, we do not have sufficient information to conclusively determine all smelters and refiners or countries of origin of the conflict minerals. However, we have not obtained any supplier responses that indicate sourcing from conflict mines.
Future Due Diligence Measures
· | We are continuing to develop a risk mitigation response plan to address business relationships with suppliers that are not DRC conflict free (as defined in Item 1.01(d)(4) of Form SD), which mitigation may include identifying an alternate supply. Our program will include continuous monitoring to adjust our strategies as sourcing data improves and new information is received. |
· | We will continue to assess and update future due diligence activities, including our efforts to determine smelter and mine locations, transit routes, and countries of origin. We tracked results of our supply chain diligence process and periodically reported the results to our executive leadership team. |
Part II. Product Description
For this reporting period, we identified the following products which we manufactured or purchased from others for resale that may contain necessary conflict minerals (defined as any tantalum, tin, tungsten or gold that is necessary to the functionality or production of our products):
Access Control Systems. Various types of identification readers (e.g. card readers, hand scanners), control panels, PC-based computers and electronically activated door-locking devices.
Door Security Products. Various metal door locking devices including microprocessor-based electronic door locks with push button, card reader and bio-metric operation, door alarms, mechanical door locks and simple dead bolt locks.
Intrusion and Fire Alarm Systems. Various detectors, control panels, digital keypads and signaling equipment.
Video Surveillance Systems. Video cameras, control panels, video monitors and recording devices.
Appendix A lists the facilities identified to us by our suppliers that were used to process the associated minerals that were used in manufacturing the component parts that we use in assembling our products.
This report is not subject to an independent private sector audit as allowed under Rule 13p-1.
Appendix A:
The following smelters and refiners were reports by our suppliers as being in their supply chains and, therefore, potentially in ours. Some suppliers responded at the company level, therefore some of the smelters or refiners listed below may not be related to the products that we source from these suppliers. The certification status of each smelter and refiner as indicated by the Conflict-Free Sourcing Initiative is contained in column four.
Metal | Standard Smelter Name | Smelter Facility Location | Smelter status |
Gold | AGR Mathey | AUSTRALIA | Compliant |
Gold | Al Etihad Gold Refinery DMCC | UNITED ARAB EMIRATES | Compliant |
Gold | Almalyk Mining and Metallurgical Complex (AMMC) | UZBEKISTAN | Compliant |
Gold | AngloGold Ashanti Córrego do Sítio Mineração | BRAZIL | Compliant |
Gold | Argor-Heraeus SA | SWITZERLAND | Compliant |
Gold | AU Traders and Refiners | SOUTH AFRICA | Compliant |
Gold | Augmont Enterprises Private Limited | INDIA | Active |
Gold | Bangko Sentral ng Pilipinas (Central Bank of the Philippines) | PHILIPPINES | Compliant |
Gold | Boliden AB | SWEDEN | Compliant |
Gold | C.I Metales Procesados Industriales SAS | COLOMBIA | Active |
Gold | Cendres + Métaux SA | SWITZERLAND | Compliant |
Gold | Dijllah Gold Refinery FZC | UNITED ARAB EMIRATES | Not certified |
Gold | Emirates Gold DMCC | UNITED ARAB EMIRATES | Compliant |
Gold | Fidelity Printers and Refiners Ltd. | ZIMBABWE | Not certified |
Gold | Fujairah Gold FZC | UNITED ARAB EMIRATES | Not certified |
Gold | International Precious Metal Refiners | UNITED ARAB EMIRATES | Not certified |
Gold | Istanbul Gold Refinery | TURKEY | Compliant |
Gold | Johnson Matthey Canada | CANADA | Compliant |
Gold | Kaloti Precious Metals | UNITED ARAB EMIRATES | Not certified |
Gold | KGHM Polska Miedz Spolka Akcyjna | POLAND | Compliant |
Gold | Kyrgyzaltyn JSC | KYRGYZSTAN | Compliant |
Gold | Marsam Metals | BRAZIL | Compliant |
Gold | Metalor Switzerland | SWITZERLAND | Compliant |
Gold | Metalor Technologies (Singapore) Pte., Ltd. | SINGAPORE | Compliant |
Gold | Metalurgica Met-Mex Penoles S.A. De C.V. | MEXICO | Compliant |
Gold | Nadir Metal Rafineri San. Ve Tic. A.Ş. | TURKEY | Compliant |
Gold | Navoi Mining and Metallurgical Combinat | UZBEKISTAN | Compliant |
Gold | Ögussa Österreichische Gold- und Silber-Scheideanstalt GmbH | AUSTRIA | Compliant |
Gold | PAMP SA | SWITZERLAND | Compliant |
Gold | Planta Recuperadora de Metales SpA | CHILE | Compliant |
Gold | PX Précinox SA | SWITZERLAND | Compliant |
Gold | Rand Refinery (Pty) Ltd. | SOUTH AFRICA | Compliant |
Gold | REMONDIS PMR B.V. | NETHERLANDS | Compliant |
Gold | Royal Canadian Mint | CANADA | Compliant |
Gold | SEMPSA Joyería Platería SA | SPAIN | Compliant |
Gold | Singway Technology Co., Ltd. | TAIWAN | Compliant |
Gold | Solar Applied Materials Technology Corp. | TAIWAN | Compliant |
Gold | Umicore Precious Metals Thailand | THAILAND | Compliant |
Gold | Umicore S.A. Business Unit Precious Metals Refining | BELGIUM | Compliant |
Gold | Valcambi SA | SWITZERLAND | Compliant |
Gold | Xstrata | CANADA | Compliant |
Gold | Yokohama Metal Co., Ltd. | JAPAN | Compliant |
Tantalum | Asaka Riken Co., Ltd. | JAPAN | Compliant |
Tantalum | Changsha South Tantalum Niobium Co., Ltd. | CHINA | Compliant |
Tantalum | F&X Electro-Materials Ltd. | CHINA | Compliant |
Tantalum | FIR Metals & Resource Ltd. | CHINA | Compliant |
Tantalum | Global Advanced Metals Aizu | JAPAN | Compliant |
Tantalum | Guangdong Rising Rare Metals-EO Materials Ltd. | CHINA | Compliant |
Tantalum | Guangdong Zhiyuan New Material Co., Ltd. | CHINA | Compliant |
Tantalum | H.C. Starck Co., Ltd. | THAILAND | Compliant |
Tantalum | H.C. Starck GmbH Goslar | GERMANY | Compliant |
Tantalum | H.C. Starck Hermsdorf GmbH | GERMANY | Compliant |
Tantalum | H.C. Starck Ltd. | JAPAN | Compliant |
Tantalum | H.C. Starck Smelting GmbH & Co. KG | GERMANY | Compliant |
Tantalum | Hengyang King Xing Lifeng New Materials Co., Ltd. | CHINA | Compliant |
Tantalum | Jiangxi Dinghai Tantalum & Niobium Co., Ltd. | CHINA | Compliant |
Tantalum | Jiangxi Tuohong New Raw Material | CHINA | Compliant |
Tantalum | JiuJiang JinXin Nonferrous Metals Co., Ltd. | CHINA | Compliant |
Tantalum | Jiujiang Tanbre Co., Ltd. | CHINA | Compliant |
Tantalum | Jiujiang Zhongao Tantalum & Niobium Co., Ltd. | CHINA | Compliant |
Tantalum | KEMET Blue Metals | MEXICO | Compliant |
Tantalum | LSM Brasil S.A. | BRAZIL | Compliant |
Tantalum | Metallurgical Products India Pvt., Ltd. | INDIA | Compliant |
Tantalum | Mineracao Taboca S.A. | BRAZIL | Compliant |
Tantalum | Mitsui Mining and Smelting Co., Ltd. | JAPAN | Compliant |
Tantalum | Ningxia Orient Tantalum Industry Co., Ltd. | CHINA | Compliant |
Tantalum | NPM Silmet AS | ESTONIA | Compliant |
Tantalum | PRG Dooel | NORTH MACEDONIA | Compliant |
Tantalum | Resind Industria e Comercio Ltda. | BRAZIL | Compliant |
Tantalum | Taki Chemicals | JAPAN | Compliant |
Tantalum | XinXing HaoRong Electronic Material Co., Ltd. | CHINA | Compliant |
Tantalum | Yanling Jincheng Tantalum & Niobium Co., Ltd. | CHINA | Compliant |
Tin | Chenzhou Yunxiang Mining and Metallurgy Co., Ltd. | CHINA | Compliant |
Tin | Chifeng Dajingzi Tin Industry Co., Ltd. | CHINA | Compliant |
Tin | CRM Synergies | SPAIN | Active |
Tin | CV Ayi Jaya | INDONESIA | Active |
Tin | CV Venus Inti Perkasa | INDONESIA | Active |
Tin | Dongguan CiEXPO Environmental Engineering Co., Ltd. | CHINA | Not certified |
Tin | Dowa | JAPAN | Compliant |
Tin | Elmet S.L.U. (Metallo Group) | SPAIN | Compliant |
Tin | EM Vinto | BOLIVIA | Compliant |
Tin | Estanho de Rondonia S.A. | BRAZIL | Active |
Tin | Fenix Metals | POLAND | Compliant |
Tin | Gejiu City Fuxiang Industry and Trade Co., Ltd. | CHINA | Not certified |
Tin | Magnu's Minerais Metais e Ligas Ltda. | BRAZIL | Compliant |
Tin | Malaysia Smelting Corporation (MSC) | MALAYSIA | Compliant |
Tin | Melt Metais e Ligas S.A. | BRAZIL | Compliant |
Tin | Metallo-Chimique N.V. | BELGIUM | Compliant |
Tin | Mineração Taboca S.A. | BRAZIL | Compliant |
Tin | Minsur | PERU | Compliant |
Tin | Mitsubishi Materials Corporation | JAPAN | Compliant |
Tin | O.M. Manufacturing (Thailand) Co., Ltd. | THAILAND | Compliant |
Tin | O.M. Manufacturing Philippines, Inc. | PHILIPPINES | Compliant |
Tin | Operaciones Metalurgical S.A. | BOLIVIA | Compliant |
Tin | PT Artha Cipta Langgeng | INDONESIA | Compliant |
Tin | PT ATD Makmur Mandiri Jaya | INDONESIA | Compliant |
Tin | PT Babel Surya Alam Lestari | INDONESIA | Compliant |
Tin | PT Bangka Serumpun | INDONESIA | Compliant |
Tin | PT Menara Cipta Mulia | INDONESIA | Compliant |
Tin | PT Mitra Stania Prima | INDONESIA | Compliant |
Tin | PT Prima Timah Utama | INDONESIA | Compliant |
Tin | PT Rajawali Rimba Perkasa | INDONESIA | Compliant |
Tin | PT Rajehan Ariq | INDONESIA | Compliant |
Tin | PT Refined Bangka Tin | INDONESIA | Compliant |
Tin | PT Timah (Persero) Tbk Kundur | INDONESIA | Compliant |
Tin | PT Timah (Persero) Tbk Mentok | INDONESIA | Compliant |
Tin | Resind Indústria e Comércio Ltda. | BRAZIL | Compliant |
Tin | Rui Da Hung | TAIWAN | Compliant |
Tin | Smelter not listed | INDONESIA | Active |
Tin | Smelter not listed | INDONESIA | Active |
Tin | Smelter not listed | INDONESIA | Compliant |
Tin | Soft Metais Ltda. | BRAZIL | Compliant |
Tin | Super Ligas | BRAZIL | Active |
Tin | Thai Nguyen Mining and Metallurgy Co., Ltd. | VIET NAM | Compliant |
Tin | Thaisarco | THAILAND | Compliant |
Tin | White Solder Metalurgia e Mineração Ltda. | BRAZIL | Compliant |
Tungsten | A.L.M.T. Corp. | JAPAN | Compliant |
Tungsten | ACL Metais Eireli | BRAZIL | Compliant |
Tungsten | Albasteel Industria e Comercio de Ligas Para FundicaoLtd. | BRAZIL | Active |
Tungsten | Asia Tungsten Products Vietnam Ltd. | VIET NAM | Compliant |
Tungsten | Chenzhou Diamond Tungsten Products Co., Ltd. | CHINA | Compliant |
Tungsten | China Molybdenum Co., Ltd. | CHINA | Active |
Tungsten | Chongyi Zhangyuan Tungsten Co., Ltd. | CHINA | Compliant |
Tungsten | Cronimet Brasil Ltda | BRAZIL | Active |
Tungsten | Fujian Ganmin RareMetal Co., Ltd. | CHINA | Compliant |
Tungsten | Ganzhou Haichuang Tungsten Co., Ltd. | CHINA | Compliant |
Tungsten | Ganzhou Huaxing Tungsten Products Co., Ltd. | CHINA | Compliant |
Tungsten | Ganzhou Jiangwu Ferrotungsten Co., Ltd. | CHINA | Compliant |
Tungsten | Ganzhou Seadragon W & Mo Co., Ltd. | CHINA | Compliant |
Tungsten | Guangdong Xianglu Tungsten Co., Ltd. | CHINA | Compliant |
Tungsten | H.C. Starck Smelting GmbH & Co. KG | GERMANY | Compliant |
Tungsten | H.C. Starck Tungsten GmbH | GERMANY | Compliant |
Tungsten | Hunan Chenzhou Mining Co., Ltd. | CHINA | Compliant |
Tungsten | Hunan Chuangda Vanadium Tungsten Co., Ltd. Wuji | CHINA | Compliant |
Tungsten | Hunan Chunchang Nonferrous Metals Co., Ltd. | CHINA | Compliant |
Tungsten | Hunan Litian Tungsten Industry Co., Ltd. | CHINA | Compliant |
Tungsten | Japan New Metals Co., Ltd. | JAPAN | Compliant |
Tungsten | Jiangwu H.C. Starck Tungsten Products Co., Ltd. | CHINA | Compliant |
Tungsten | Jiangxi Gan Bei Tungsten Co., Ltd. | CHINA | Compliant |
Tungsten | Jiangxi Minmetals Gao'an Non-ferrous Metals Co., Ltd. | CHINA | Not certified |
Tungsten | Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd. | CHINA | Compliant |
Tungsten | Jiangxi Xianglu Tungsten Co., Ltd. | CHINA | Not certified |
Tungsten | Jiangxi Xinsheng Tungsten Industry Co., Ltd. | CHINA | Compliant |
Tungsten | Jiangxi Yaosheng Tungsten Co., Ltd. | CHINA | Compliant |
Tungsten | Lianyou Metals Co., Ltd. | TAIWAN, PROVINCE OF CHINA | Compliant |
Tungsten | Malipo Haiyu Tungsten Co., Ltd. | CHINA | Compliant |
Tungsten | Masan Tungsten Chemical LLC (MTC) | VIET NAM | Compliant |
Tungsten | South-East Nonferrous Metal Company Limited of Hengyang City | CHINA | Not certified |
Tungsten | Tejing (Vietnam) Tungsten Co., Ltd. | VIET NAM | Compliant |
Tungsten | Wolfram Bergbau und Hutten AG | AUSTRIA | Compliant |
Tungsten | Xiamen Tungsten (H.C.) Co., Ltd. | CHINA | Compliant |
Tungsten | Xiamen Tungsten Co., Ltd. | CHINA | Compliant |
Tungsten | Xinfeng Huarui Tungsten & Molybdenum New Material Co., Ltd. | CHINA | Compliant |
Tungsten | Xinhai Rendan Shaoguan Tungsten Co., Ltd. | CHINA | Not certified |