Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 28

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 28
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 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 May 2024, the National Highway Traffic Safety Administration,
or NHTSA, published a new rule requiring automatic emergency braking systems in U.S. light vehicles and trucks by September 2029, and
in December 2024, NHTSA proposed a voluntary program to improve evaluation and oversight of certain vehicles equipped with automated
driving systems. To control new vehicle prices, among other concerns, OEMs may need to dedicate technology and cost additions to new
vehicle designs to meet these emissions and safety requirements and postpone the consumer cost pressures of new ADAS features. As additional
safety requirements are imposed on vehicle manufacturers, our business prospects may be materially impacted. Alternatively, if safety
regulations in the U.S. were to become less stringent due to oversight reduction efforts, OEMs could be less inclined to pay for higher
cost redundant safety systems and technologies, which could negatively impact the uptake of our sensor solutions.

Because
the lidar and ADAS markets are rapidly evolving, it is difficult to forecast customer adoption rates, demand, and