Company: MVIS
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022632
Chunk: 99

Company: MICROVISION, INC.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 99
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 combines our lidar sensors, both MEMS-based and flash-based, and application
software targeted for sale to industrial mobility and autonomy companies, automotive OEMs and Tier 1 suppliers, and defense contractors.
Our deterministic AI at the edge enables critical decisions to be made locally and independent of the cloud, leading to faster responses,
improved data privacy, and reduced costs. Our mature perception software stack has met the rigorous requirements of automotive qualification
and incorporates advanced features, like localization and fusion. Our lidar sensors include MAVIN™, a MEMS-based long-range sensor
capable of small object detection, and MOVIA™, a flash-based short- to mid-range sensor, both suitable for industrial and automotive
applications. We also develop customer-specific application software, allowing expansion into a wide array of sectors.

Our
product suite also includes our validation software tool, the MOSAIK™ suite, which is targeted for use by OEMs and Tier 1s for
validating vehicle sensors for ADAS and autonomous driving, or AD, applications. In 2024, we reduced the dedicated resources and investment
into further development of MOSAIK. Specifically, in 2024, in an effort to better align our resources with our product plan, we restructured
and reorganized our workforce and related expenditures to strategically focus on our perception software and MAVIN and MOVIA products.
While this 41% reduction in workforce added approximately $6.0 million to our fiscal year 2024 expenses, it reduced go-forward operating
expenses through reduced personnel expenses and other operational efficiencies.

In
the recent past, we developed micro-display concepts and designs for use in head-mounted augmented reality, or AR, headsets and developed
a 1440i MEMS module supporting AR headsets. This technology was integrated into products marketed to consumer and military sectors.

To
date, we have been unable to secure customers at the scale needed to successfully launch our products. We have incurred significant losses
since inception and we expect to continue to incur significant losses in the near term. We have funded our operations to date primarily
through the sale of common stock, convertible preferred stock, warrants, the issuance of convertible debt and, to a lesser extent, from
development contract revenues, product sales and licensing activities. In October 2024, we entered into a securities purchase agreement
with an institutional investor for the sale of up to $75.0 million in senior secured convertible notes. See Part I, Item 1, Note 6.
Notes