Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 175

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 175
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 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, we may need approvals and licenses from relevant
government authorities for the acquisitions and to comply with any applicable laws and regulations, which could result in increased delay
and costs, and may disrupt our business strategy if we fail to do so. Furthermore, acquisitions and the subsequent integration of new
assets, businesses, key personnel, customers, vendors and suppliers require significant attention from our management and could result
in a diversion of resources from our existing business, which in turn could have an adverse effect on our operations. Acquired assets
or businesses may not generate the financial results we expect. Acquisitions could result in the use of substantial amounts of cash,
potentially dilutive issuances of equity securities, the occurrence of significant goodwill impairment charges, amortization expenses
for other intangible assets, and exposure to