Company: MVIS
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022632
Chunk: 62

Company: MICROVISION, INC.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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 the patents that we already own protect our products and technologies.
Reduction in scope of protection or invalidation of our licensed or owned patents, or our inability to obtain new patents, may enable
other companies to develop products that compete directly with ours on the basis of the same or similar technologies.

We
also rely on the law of trade secrets to protect unpatented know-how and technologies to maintain our competitive position. We try to
protect this know-how and our technologies by limiting access to the trade secrets to those of our employees, contractors and partners,
with a need-to-know such information and by entering into confidentiality agreements with parties that have access to it, such as our
employees, consultants and business partners. Any of these parties could breach the agreements and disclose our trade secrets or confidential
information, or our competitors might learn of the information in some other way. If any trade secret not protected by a patent were
to be disclosed to or independently developed by a competitor, our competitive position could be negatively affected.

We
could be subject to significant product liability claims that could be time consuming and costly, divert management attention and adversely
affect our ability to obtain and maintain insurance coverage.

We
could be subject to product liability claims if any of the product applications are alleged to be defective or cause harmful effects.
For example, because some of the scanning modules incorporating our LBS technology could scan a low power beam of colored light into
the user’s eye, the testing, manufacture, marketing and sale of these products involve an inherent risk that product liability
claims will be asserted against us.

35

Additionally,
any misuse of our technologies or products incorporating our technologies by end users or third parties that obtain access to our technologies
could result in negative publicity and could harm our brand and reputation. Product liability claims or other claims related to our products
or our technologies, regardless of their outcome, could require us to spend significant time and money in litigation, divert management
time and attention, require us to pay significant damages, harm our reputation or hinder acceptance of our products. Any successful product
liability claim may prevent us from obtaining adequate product liability insurance in the future on commercially desirable or reasonable
terms. An inability to obtain sufficient insurance coverage at an acceptable cost or otherwise to protect against potential product liability
claims could prevent or inhibit the commercialization of our products and technologies.

Our
operations could be adversely impacted by information technology system failures, network disruptions, or cybersecurity incidents.

We
rely on information technology systems to process, transmit, store