Company: MVIS
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022632
Chunk: 126

Company: MICROVISION, INC.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 126
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 or more automotive
OEMs or their suppliers, our future business prospects, results of operations, and financial conditions will be materially and adversely
affected.

36

The
complexity of our products and the limited visibility into the various environmental and other conditions under which potential customers
may use the 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 our products, damage our reputation with prospective customers, expose us to product
liability and other claims, and adversely affect our operating costs.

Our
products are highly technical and complex and require high standards to manufacture and may experience defects, errors or reliability
issues at various stages of development and production. We may be unable to timely manufacture or release products, or correct problems
that have arisen or correct such problems to the customer’s satisfaction. Additionally, undetected errors, defects or security
vulnerabilities could result in serious injury to the end users or bystanders of technology incorporating our products, inability of
customers to commercialize technology incorporating our products, litigation against us, negative publicity and other consequences. These
risks are particularly prevalent in the highly competitive ADAS market. These problems may also result in claims, including class actions,
against us that could be costly to defend. Our reputation or 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