Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 219

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 219
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investments in our research and development projects, staff, operating costs, and capital expenditures which could jeopardize our
ability to achieve our business goals or satisfy our customer requirements.

Risks
Related to our Financial Statements and Results

Our
revenue is generated from a small number of customers, and as we have experienced recently and in the past, losing a significant customer
negatively impacts our revenue.

For
the three months ended March 31, 2025, a leading manufacturer of agricultural equipment accounted for $0.5 million in revenue and an
automotive supplier accounted for $0.1 million in revenue, representing 80% and 14% of our total revenue, respectively. For the three
months ended March 31, 2024, a major global commercial trucking OEM accounted for $0.5 million in revenue and a leading manufacturer of agricultural
equipment accounted for $0.3 million in revenue, representing 52% and 33% of our total revenue, respectively. Our revenue
has been negatively effected by the loss of certain of these customers and could continue to be if not replaced with new, materially
equivalent customer wins.

27

We
have, in the past, identified a material weakness in our internal controls.

In
the second quarter of 2021, we identified a material weakness in the controls that support our determination of the grant date of equity
awards. If we identify further material weaknesses in our internal controls, our failure to establish and maintain effective disclosure
controls and procedures and internal control over financial reporting could result in material misstatements in our financial statements
and a failure to meet our reporting obligations. Any such failure could cause investors to lose confidence in the accuracy of our financial
reports, harm our reputation, and adversely affect the market price of our common stock.

Our
internal controls over financial reporting for fiscal year 2024 include controls of our subsidiary, MicroVision GmbH, which became a
significant subsidiary upon the closing of our acquisition of assets from Ibeo in 2023. Given the added complexity stemming from the
inclusion of our German subsidiary within our control environment, the risk of a material weakness in internal controls will be higher
than it has been to date.

Our
stock price has fluctuated in the past, has recently been volatile and may be volatile in the future, and as a result, investors in our
common stock could incur substantial losses.

Our
stock price has fluctuated significantly in the past, has recently been volatile,