Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 20

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 20
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 may seek indemnification from us for any damages or expenses they incur.

31

If
we fail to manage expansion effectively, our revenue and expenses could be adversely affected.

Our
ability to successfully offer products and solutions incorporating our technologies and implement our business plan in a rapidly evolving
market requires an effective planning and management process. The growth in business and relationships with customers and other third
parties has placed, and will continue to place, a significant strain on our management systems and resources. We will need to continue
to improve our financial and managerial controls, reporting systems and procedures, and will need to continue to train and manage our
workforce. We continue to strengthen our compliance programs, including our compliance programs related to product certifications (in
particular, certifications applicable to the automotive market), export controls, privacy, cybersecurity, and anti-corruption. We may
not be able to implement improvements in an efficient or timely manner and may discover deficiencies in existing controls, programs,
systems and procedures, which could have an adverse effect on our business, reputation and financial results.

We
target customers that are large companies with substantial negotiating power and potentially competitive internal solutions; if we are
unable to sell our products to these customers, our prospects will be adversely affected.

Our
potential customers, including industrial and automotive OEMs, are large, multinational companies with substantial negotiating power
relative to us and, in some instances, may have internal solutions that are competitive to our products. These large, multinational companies
also have significant resources, which may allow them to acquire or develop competitive technologies either independently or in partnership
with others. Accordingly, even after investing significant resources to develop a product, we may not secure a series production award
or, even after securing a series production award, may not be able to commercialize a product on profitable terms. If our products are
not selected by these large companies or if these companies develop or acquire competitive technology or negotiate terms that are disadvantageous
to us, it will have an adverse effect on our business prospects.

Our
technology and products may be subject to environmental, health and safety regulations that could increase our development and production
costs.

Our
technologies and products could become subject to environmental, health and safety regulations or amendments that could negatively impact
our ability to commercialize our technologies and products. Compliance with any such current or new regulations would likely increase
the cost to develop and commercialize products, and violations may result in fines, penalties or suspension of production. If we become
subject to any