Company: MVIS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021931
Chunk: 24

Company: MICROVISION, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 24
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 do so to manufacture current and future components and products, where appropriate. These international operations
are subject to inherent risks, which may adversely affect us, including, but not limited to:

●Political
                                            and economic instability, international terrorism and the outbreak of war, such as the Russian
                                            invasion and continuing war against Ukraine and the ongoing conflict in the Middle East,
                                            as well as potential trade-related conflicts;

●High
                                            levels of inflation, as has historically been the case in a number of countries in Asia;

●Burdens
                                            and costs of compliance with a variety of foreign laws, regulations and sanctions;

●Foreign
                                            taxes and duties;

●Significant
                                            instability in tariff rates or other trade, tax or monetary policies;

●Changes
                                            or volatility in currency exchange rates and interest rates;

●Global
                                            or regional health crises and epidemics; and
 ●Disruptions
                                            in global supply chains.

Over
the past several months, the U.S. government’s tariff policy has been inconsistent and unpredictable, with a broad range of new
tariffs on virtually all imports into the United States. Although the tariff policy environment has been and is expected to continue
to be dynamic, and the ultimate impact of any tariffs will depend on the magnitude and duration of the tariffs and the countries impacted,
we expect to be negatively impacted by new tariff costs in connection with imports from every country from which we import component
parts, as well as tariffs attributable to sales of our products. If we are unable to mitigate tariff-related risks through supply chain
adjustments, pricing strategies, sourcing arrangements or other measures, our business, financial condition and results of operations
could be materially adversely affected.

Moreover,
U.S. policy changes and uncertainty about such changes may increase market volatility and currency exchange rate fluctuations. Given
the relative significance of our European operations, unfavorable fluctuations in relevant exchange rates will negatively impact our
financial condition and results of operations.

We
have recently made and may in the future make acquisitions. If we fail to successfully select, execute or integrate our acquisitions,
then our business, results of operations and financial condition could be materially adversely affected.

On
December 1, 2022, we entered into an Asset Purchase Agreement to acquire certain assets from Ibeo Automotive Systems GmbH. We expended
significant management time and effort, as well as capital, identifying, evaluating, negotiating, and executing this transaction and,
since the closing of the acquisition on January 31, 2023, we have invested additional