Company: MVIS
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022632
Chunk: 161

Company: MICROVISION, INC.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 161
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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.

37

Because
the lidar and ADAS markets are rapidly evolving, it is difficult to forecast customer adoption rates, demand, and selling prices for
our products and solutions.

We
are pursuing opportunities in rapidly evolving markets, including technological and regulatory changes, and it is difficult to predict
the timing and size of the opportunities. For example, lidar-based ADAS solutions require complex technology and because these automotive
systems depend on technology from many companies, commercialization of ADAS products could be delayed or impaired on account of certain
technological components of ours or others not being ready to be deployed in vehicles. In addition, the selling prices we are able to
ultimately charge in the future for the products we are currently developing may be less than what we currently project. Our future financial
performance will depend on our ability to make timely investments in the correct market opportunities. If one or more of these markets
experience a shift in prospective customer demand, our products may not compete as effectively, if at all, and they may not be designed
into commercialized products. Given the evolving nature of the markets in which we operate, it is difficult to predict customer demand
or adoption rates for our products, selling prices or the future growth of our target markets. If demand does not develop or if we cannot
accurately forecast it, the size of our markets, inventory requirements or future financial results will be adversely affected.

Because