Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 44

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 3
Chunk 44
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 in foreign countries.

During
2021, we established an office in Germany and on January 31, 2023, we completed our acquisition of certain assets of Ibeo, with the result
that we now have more employees and operations in Germany than in the U.S. In addition, we currently use foreign suppliers and partners
and plan to continue to do so to manufacture current and future components and products, where appropriate. These international operations
are subject to inherent risks, which may adversely affect us, including, but not limited to:

●Political
                                            and economic instability, international terrorism and the outbreak of war, such as the Russian
                                            invasion and continuing war against Ukraine and the ongoing conflict in the Middle East, as well as potential trade-related conflicts;

●High
                                            levels of inflation, as has historically been the case in a number of countries in Asia;

●Burdens
                                            and costs of compliance with a variety of foreign laws, regulations and sanctions;

●Foreign
                                            taxes and duties;

●Significant
                                            instability in tariff rates or other trade, tax or monetary policies;

●Changes
                                            or volatility in currency exchange rates and interest rates;

●Global
                                            or regional health crises and epidemics; and

●Disruptions
                                            in global supply chains.

On April 2, 2025, the U.S. government announced a broad range of new tariffs
on virtually all imports into the United States. One week later, a significant portion of such new tariffs were paused or lowered. Although
the tariff policy environment has been and is expected to continue to be dynamic, and the ultimate impact of any tariffs will depend on
the magnitude and duration of the tariffs and the countries impacted, we expect to be negatively 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