Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 72

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 4
Chunk 72
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 brand may be damaged as a result of these problems and potential customers
may be reluctant to buy our products, which could adversely affect our financial results.

Adverse
conditions in particular industrial sectors, the automotive industry, or the global economy more generally could have adverse effects
on our results of operations.

While
we make our strategic planning decisions based on the assumption that the markets we are targeting will grow, our business is dependent,
in large part on, and directly affected by, business cycles and other factors affecting industrial autonomy, the global automobile industry,
and the global economy generally. Automotive production and sales are highly cyclical and depend on general economic conditions and other
factors, including consumer spending and preferences, changes in interest rates and credit availability, consumer confidence, fuel costs,
fuel availability, environmental impact, governmental incentives and regulatory requirements, and political volatility, especially in
energy-producing countries and growth markets. In addition, automotive production and sales can be affected by our automotive OEM customers’
ability to continue operating in response to challenging economic conditions and in response to labor relations issues, regulatory requirements,
trade agreements and other factors. The volume of automotive production in North America, Europe and the rest of the world has fluctuated,
sometimes significantly, from year to year, and we expect such fluctuations to give rise to fluctuations in the demand for our products.
Any significant adverse change in any of these factors may result in a reduction in automotive sales and production by our automotive
OEM customers and could have a material adverse effect on our business, results of operations and financial condition.

35

Developments
in alternative technology may adversely affect the demand for our lidar technology.

Significant
developments in alternative technologies, such as cameras and radar, may materially and adversely affect our business prospects in ways
we do not currently anticipate. Existing and other camera and radar technologies may emerge as OEMs’ preferred alternative to our
solution, which would result in the loss of competitiveness of our lidar solution. Our R&D efforts may not be sufficient to adapt
to these changes in technology and our solution may not compete effectively with these alternative systems.

ADAS
features may be delayed in adoption by OEMs, which would negatively impact our long-term business prospects.

The
ADAS market is fast evolving and there is generally a lack of an established regulatory framework. Vehicle regulators globally continue
to consider new and enhanced emissions requirements, including electrification, to meet environmental and economic needs as well as pursue
new safety standards to address emerging traffic risks. For instance, in