Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 229

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 229
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, 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.

On April 2, 2025, the U.S. government announced a broad range of new tariffs
on virtually all imports into the United States. One week later, a significant portion of such new tariffs were paused or lowered. 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.

32

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 time and capital working to integrate our new Hamburg-
and Detroit-based teams and operations. We cannot guarantee that these integration efforts will be successful, that the goals of the
acquisition will be realized, or that the increase to our operating expenses or cash requirements will be manageable. During the first
half of 2024, we downsized our Germany operations.

In
the future, we may again undertake acquisitions to add new products and technologies, acquire talent, gain new sales channels or enter
into new markets or sales territories. In addition to possible stockholder approval