Latest news with #SumitSharma
Globe and Mail
4 days ago
- Business
- Globe and Mail
MicroVision (MVIS) Q2 2025 Earnings Transcript
Date Thursday, August 7, 2025 at 8:30 p.m. ET Call participants Chief Executive Officer — Sumit Sharma Chief Financial Officer — Anubhav Verma Chief Technology Officer — Glen DeVos Need a quote from a Motley Fool analyst? Email pr@ Risks Revenue for fiscal Q2 2025 was $150,000, with all sales concentrated in the industrial vertical and no reported automotive or defense revenues. Outstanding convertible note balance remains at approximately $33 million as of fiscal Q2 2025, convertible at $1.60 per share, potentially increasing dilution if settled in equity under market conditions. Automotive RFQ cycle remains unpredictable, with "quote timing may shift around a little bit" and launches for large volumes not anticipated prior to 2028, possibly delaying meaningful automotive revenues. Management confirmed, "while the revenue may not be big in 2025" for defense opportunities, upfront demonstration costs may incrementally increase near-term expenses before partnerships are monetized, with management indicating these expenses may rise by a few million dollars in the period leading up to public demonstrations planned for the first half of next year. Takeaways Revenue -- $150,000, entirely from industrial vertical sales in fiscal Q2 2025. Total R&D and SG&A (GAAP) -- $14.1 million for fiscal Q2 2025, including $1.9 million of non-GAAP stock-based compensation, $1.5 million of non-cash depreciation and amortization, resulting in $11 million in cash expenses. R&D and SG&A expenses were reduced by 44% year-over-year. Quarter-end cash and equivalents -- $91.4 million for fiscal Q2 2025, with additional access to $76.5 million via the current ATM facility, and $30 million in undrawn convertible notes. ATM capital raise -- $35 million net from the ATM facility in fiscal Q2 2025, increasing company liquidity. Convertible notes -- $33 million outstanding at a fixed conversion price of $1.60 per share as of fiscal Q2 2025, with $30 million of undrawn capital under the convertible notes facility and the first payment due September 1, 2025. Average daily trading volume -- 5.2 million shares in fiscal Q2 2025, doubling from the 2.6 million level in fiscal Q2 2024. Single-investor commitment -- Over $90 million from one institutional investor in fiscal Q2 2025, unlocking higher trading liquidity and broader institutional awareness. Expense trajectory -- Management stated, "We expect the current spending level to be sustained through the rest of the year," indicating no meaningful near-term OpEx growth, with management expecting operating expenses to remain at current levels through the remainder of 2025. NVIDIA DRIVE AGX platform integration -- Completed, supporting full-solution qualification for automotive OEM RFQs. Production partnership -- Firm commitment in France to support Movia L product, enabling minimal China exposure and supply chain resilience. Aftermarket industrial product -- Retrofits for forklift fleets launched, targeting faster time-to-market and frictionless adoption. Automotive RFQs -- "multiple reformulated RFQs" in progress, with a new architecture to be introduced at IAA Munich in September. Defense segment exposure -- Autonomous swarming drone demonstration planned for the first half of next year, with technology spanning mapping and real-time data sharing for unmanned systems. Industrial revenue expectations -- Management projects revenue from industrial engagements to begin in 2026, as stated on the fiscal Q2 2025 earnings call. Summary MicroVision (NASDAQ:MVIS) emphasized enhanced institutional engagement, demonstrated by a substantial single-investor commitment and a sharp increase in trading activity. Management highlighted robust liquidity with flexible financing tools, supporting execution across automotive, industrial, and defense markets. The company is leveraging fully integrated solutions and targeting industrial, defense, and automotive OEMs with differentiated hardware-software offerings. Strategic focus included advancing large-scale automotive RFQs, near-term industrial commercialization, and initial defense sector demonstrations, while controlling operating expenses and maintaining an efficient workforce. Management described the current product pipeline as directly aligning with OEM cost priorities, with "price will continue to be the single most important factor for OEM decisions to drive higher LiDAR adoption." "we're expanding what we have" in military technologies, enabling autonomous navigation in GPS-denied environments for land, aerial, and maritime platforms, per company statements. As management reiterated, "we're not looking to double or triple our expenses." The ATM facility and capital structure are managed to extend runway into 2027, according to management commentary during the fiscal Q2 2025 earnings call, with debt settlements positioned for either cash or equity depending on market and lender actions. The competitive position is framed around silicon-based solid-state solutions, lower cost structure, software integration capabilities, and hardware tailored to emerging industrial and defense requirements. Industry glossary RFQ: Request for Quotation; formal bidding process by OEM or industrial customers to solicit purchase proposals for specific hardware/software solutions. ATM facility: At-the-market facility; a method for publicly traded companies to raise capital by selling shares incrementally at prevailing market prices. LCAS: LiDAR Collision Avoidance System; embedded software solution for real-time obstacle detection and avoidance in autonomous vehicles and industrial machinery. AGV: Automated Guided Vehicle; industrial transport machines operating autonomously along pre-defined routes. AMR: Autonomous Mobile Robot; self-navigating industrial robots used in logistics, warehousing, and materials handling applications. Movia S / Movia L / Maven: Proprietary MicroVision automotive and industrial LiDAR sensor product lines, differentiated by field of view, form factor, and intended application. DRIVE AGX: NVIDIA's automotive AI computing platform enabling sensor integration and autonomous driving features. Full Conference Call Transcript Sumit Sharma, and our Chief Financial Officer, Anubhav Verma. Following their prepared remarks, our Chief Technology Officer, Glen DeVos, will join us, and we will open the call to questions. Please note some of the information you'll hear in today's discussion will include forward-looking statements. Including, but not limited to, statements regarding the status of commercial engagement, business product, and go-to-market strategies, level of customer and partner engagement, cash, liquidity, and the impacts of recent financing activities, market landscape, and opportunities, program volumes and timing, development projects, performance of our products and solutions, product sales and future demand, projections of future operations and cash flow, availability of funds and conditions for capital raising, as well as statements containing words like believe, expect, plan, and other similar expressions. These statements are not guarantees of future performance. Actual results could differ materially from the future results implied or expressed in the forward-looking statements. We encourage you to review our SEC filings including our most recently filed annual report on Form 10-Ks and quarterly reports on Form 10-Q. These filings describe risk factors that could cause our actual results to differ materially from those implied or expressed in our forward-looking statements. All forward-looking statements are made as of the date of this call and except as required by law, we undertake no obligation to update this. In addition, we will present certain financial measures on this call that will be considered non-GAAP under the SEC's Regulation G. For reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure, as well as for all the financial data presented on this call, please refer to the information included in our press release and in our Form 8-Ks dated and submitted to the SEC today. Operator: Both of which can be found on our corporate website. Drew Markham: Under the SEC filings tab. This conference call will be available for audio replay on the Investor Relations section of our website at Now I would like to turn the call over to Sumit Sharma, our Chief Executive Officer. Sumit? Sumit Sharma: Thank you, Drew, and hello, everyone. Welcome to our second quarter 2025 results review. I'll start by updating you on our progress with commercial agreements in the automotive and industrial markets followed by what we expect from our military engagements and finally, refreshing everyone with our vision and mission. Since our last update, our level of engagement with automotive OEMs has increased. With multiple reformulated RFQs. A new architecture, which Glen will introduce at IAA in September in Munich, is instrumental to this. It provides OEMs with a wider operational design domain while making solutions cost competitive for larger volume adoption. For the past five years, LiDAR companies have proposed solutions with no mass market adoption by OEMs and limited revenues. The new RFQs target form factors that can be integrated into automotive design with low power and competitive technology cost for economy of scale. Our new Movia S and Maven offer the widest field of view delivering what we believe is the most cost-competitive performance for dynamic view LiDAR. Key features include small object detection at range, the wider system field of view, the lowest system power, and cost competitiveness with scaled silicon technologies. To succeed in this space, our go-to-market strategies remain steadfast. We are focusing on OEMs with mass market product plans. Even with production targeted for 2028 and beyond, it is crucial for us to win in this segment with a scalable product. Cost-competitive and scalable LiDAR products developed for automotive will also empower us in the industrial and defense segment with higher sensor fusion and perception software sales. We plan to elaborate on this further in September at IAA in Munich. In our industrial vertical, we are in the final stages of several engagements with ongoing evaluations. This segment is also very important to us. The proposed solutions include our LiDAR hardware integrated with advanced software features like the LiDAR collision avoidance system, LCAS, directly from the LiDAR sensor. We have multiple opportunities with these products and with industrial customers. To advance our sales opportunities in the automated guided machines, autonomous mobile robot, segment. We also introduced an aftermarket product with our LiDAR and LCAAS software that can be retrofitted into existing forklift fleets. This product makes adoption of our LiDAR and software far more frictionless for our potential customers. I've been on the road with our sales team for this product and have been pleased by the reception. The mass market product for this segment will be a Movia S safety sensor which we plan to introduce in the coming years. In the industrial space, 2D mechanical LiDARs that are safety qualified currently hold the highest volume and revenue opportunity. Though perception software developed with these sensors is extremely limited, to dominate this segment, we expect to forge future partnerships with AGV AMR companies looking to evolve past 2D LiDAR safety sensors to our 3D safety sensor with onboard perception. We are targeting our solid-state Movia S LiDAR for this product line. With resolutions more than 2.5 times higher than current products, a smaller form factor, and integrated LCAS and safety sensor options, I believe this will be a very successful product line and will allow us to establish reliable, annual recurring revenues in this vertical. Our current focus is on finalizing commercial partnerships in this segment. The defense vertical presents a significant opportunity for us to collaborate with existing prime contractors and to serve as a primary technology provider for a comprehensive hardware and sensor fusion product. The defense market demands dual-use technologies and cost-effective systems for land-based aerial and maritime autonomous platforms. Each of these platforms requires high-performance, highly reliable LiDAR, seamlessly sensor fusion software, and a perception software layer that extracts insights from the localization and mapping to enable full autonomy. These systems must be capable of operating in GPS-denied environments without extensive AI training data. This is the forefront of autonomy, and our products and technologies can significantly impact this segment. Developing and demonstrating our technology in the military space will further create opportunities in the future for us in automotive and industrial to bring advanced technologies built on top of our LiDAR for years to come. In the first half of next year, we plan to publicly demonstrate an autonomous swarming drone system. This system will be capable of creating detailed maps of regions and communicating these maps in real-time. Allowing other autonomous drones to execute a wide range of missions. The core sensor fusion and autonomy software we are developing will facilitate partnerships in aerial, maritime, and terrestrial domains. This drone technology demonstrator will be crucial in advancing our collaborations. Our go-to-market strategy for the defense sector will center on developing advanced LiDAR sensors and sensor fusion technology that delivers the highest level of actionable perception software. We target partnering with established prime defense contractors and these partnerships may lead to further opportunities for joint ventures that can accelerate our revenue growth. Our company vision is to accelerate the global adoption of autonomous technologies across all segments. Our mission is to partner and develop the most advanced LiDAR sensors integrated with edge perception software for the automotive segment, enable the industrial segment with advanced robotics software, and our LiDARs, and empower the military segment with autonomous software with multimode sensor integration. I will keep my remarks brief today to allow time for questions from our shareholders which I would like to prioritize. I'd like to turn the call over to Anubhav now. Anubhav? Anubhav Verma: Thanks, Sumit. From a financial perspective, the first half of this year, especially the second quarter, witnessed increased trading activity and institutional trading, not just in MicroVision, Inc., but across the board in our peers as well. This sustained momentum and elevated interest in LiDAR and auto tech names pedals an exciting time for us. A lot of blue-chip institutions also seem to be turning their focus back onto auto tech especially the LiDAR sector, primarily due to two factors. Number one, the progress that's being made towards commercialization across automotive and robotics and defense tech. Number two, a global portfolio rebalancing that seems to be at play for large financial institutions. As a result of which, small to mid-cap companies are expected to continue to benefit from this trend. Expanding on Sumit's comments, we made significant progress with NVIDIA, by achieving full integration with their Drive AGX platform. This is a big step forward for us to become a fully qualified solution provider particularly as we engage in several RFQs with automotive OEMs, for our integrated long-range and short-range LiDAR solution. We're looking forward to IAA in Munich next month to demonstrate our new integrated solution for the OEMs. We believe that price will continue to be the single most important factor for OEM decisions to drive higher LiDAR adoption. The automotive vertical will always be the primary for high-volume recurring business that gets us to scale. We're driving momentum in the industrial AGV AMR market to drive near-term revenue opportunities leveraging our perception software and Movia hardware to solve complex business problems for our customers at attractive price points. That lower their system cost and increase their internal productivity and efficiency. We believe that our production commitment with ZF in France drives our ability to meet the anticipated high-volume demand from customers in the space for our Movia L product. We believe the ability to mass-produce automotive-grade products ensures continuous and uninterrupted supply at a pricing advantage to our customers given our minimal exposure to China-based manufacturing. While the situation continues to be dynamic and evolving, regarding global tariffs, we believe MicroVision, Inc. remains well-positioned with our manufacturing partner in France. We continue to press ahead with our pursuit of revenue opportunities in the defense vertical. We recently added Scott Goldstein to our advisory board to help find near-term partnerships. Our go-to-market strategy in the sector will be focused on mission-specific projects in three key areas. Maritime, airborne, and terrestrial. In short order, we plan to demonstrate a complete solution with multimodal sensors and our full-stack software capable of enabling unmanned drones to complete specific missions. We recently bolstered our sales and business development teams by attracting experienced talented individuals from some of our key competitors. MicroVision, Inc. remains well-positioned in the marketplace with diversified near-term revenue opportunities in the industrial and defense sectors. The expanded TAMs, streamlined cost structure, and recent financings have solidified our position. Now let's review our second-quarter financial results. Revenue. For the second quarter, we reported revenues of $150,000. This quarter's revenue was driven by our sales in the industrial verticals. Expenses. Our second quarter 2025 R&D and SG&A expenses were $14.1 million including $1.9 million of non-GAAP charges related to stock-based compensation, and $1.5 million non-cash charges related to DNA. Backing out these non-cash charges, our R&D and SG&A cash expenses were only $11 million in the quarter. On a year-over-year basis, we have reduced our expenses by 44%. We expect the current spending level to be sustained through the rest of the year. We believe our existing workforce and level of expenses allow us to execute on the current business strategy. We believe our current engineering teams can support continued engagement with automotive OEMs and simultaneously scale faster with industrial and defense opportunities in the near term. Q4 CapEx was $200,000 in line with our expectations. Now let's talk about our balance sheet. We finished this quarter with $91.4 million in cash and cash equivalents. In addition, the company has availability of $76.5 million under our current ATM facility. And $30 million of undrawn capital under the convertible notes facility. As I mentioned earlier, the LiDAR sector and broadly the auto sectors saw elevated trading volumes in 2025 due to increased interest from institutions trading in these securities. Given the favorable market volumes, we raised about $35 million net from the ATM during the second quarter and bolstered our balance sheet. While we will continue to be opportunistic in raising capital, we believe that with the recent raises and our current ongoing operating cost structure, we have extended our runway into 2027. The extended runway makes MicroVision, Inc. an attractive investment for new large financial institutions. On the convertible note, we have approximately $33 million outstanding that converts at a fixed price of $1.60. With $91.4 million cash at hand, we're now adequately capitalized to make these debt payments starting September 1 in cash with the cash on hand or through stock if the holders choose to exercise their option due to favorable market conditions. The $30 million second tranche remains undrawn and available for future drawdowns. We're pleased to have found a strategic financial partner whose confidence in MicroVision, Inc.'s future has motivated an alignment of economic interest in step with our management team, employees, and other shareholders. MicroVision, Inc.'s average trading volumes have significantly increased which in part is due to the investment commitment of over $90 million from one single investor. As I have noted before, this is the first in the company's history and I am quite pleased with the recent uptick in our trading activity. Our average daily trading volume has more than doubled. Over 5.2 million shares traded on an average on a daily basis during the entire second quarter in 2025. The equivalent number was 2.6 million in the corresponding period in 2024. While a solid foundational retail base is very core to MicroVision, Inc., we are pleased to report that the recent $90 million investment commitment has unlocked a sharp increase in trading and inbound interest from several large financial institutions. This has significantly elevated the visibility of the company across the broader institutional investor universe. We remain relentlessly focused on our execution, and continue to have excellent engagement with industrial customers on their technology roadmap. To summarize, we're really excited about positioning MicroVision, Inc. as one of the front runners of the autonomy enablers for the three end markets. We continue to drive forward with significantly higher TAMs, including defense and industrial, extensive and broadening solution advancements, a solid balance sheet with superior trading metrics, and a well-experienced team to execute the strategy. Operator, I would now like to open the line for questions. Operator: Thank you, sir. At this time, we will conduct the question and answer session. Investors can submit their questions within the meeting webcast by typing them into the Q&A button on the left side of their viewing screen. Analysts who publish research may ask questions on the phone line. For analysts to ask questions on the phone line, please press star. One. Once again, to ask questions on the phone line, please press star one. And our first question comes from Jesse Sobelson of DeBurro Capital. Hey, everyone. Jesse Sobelson: Thanks for taking my questions here. It really sounds like there's a lot of exciting developments both on the military side here with the autonomous drones you mentioned in these remarks as well as just, you know, across the board with other end markets that we've discussed previously. I wanted to ask just on the industrial pipeline visibility. You mentioned growing momentum in the industrial verticals. Can you expand on specific use cases or customer types showing any traction, and when do you expect this to materially impact revenue? Sumit Sharma: Yeah. I think we updated this at the Investor Day. I think everything we said probably so far stays in play. In the industrial space, primarily AGV AMRs, is the target. Imagine, you know, in the logistics space, there's a bunch of requirements for autonomy that people think about, but there's a bigger unmet need of higher levels of safety. Our product with our concurrent Movia L integrated with an LCAAS system with a display sort of equivalent to a retrofittable, like a bolt-on solution. That goes on all existing installs. So you're not waiting for a forklift OEM to integrate into their next-generation product, which, you know, their cycles are longer and slower. We are in some of those RFQs. Right? And, you know, I think we're trying to successfully close on some of them. But I think the bigger opportunity is the installed base that already exists. And there is quite a lot of sales organizations out there that retrofit, that have access to these customers that have huge install bases. And they're looking for a plug-in ADAS solution more like a warning system to get it going faster than the 4K 4G. So from that standpoint, you know, there's a market for that. You know, certainly higher ASPs there. The time to market is faster because we give a fully integrated product. Beyond that, there's also other opportunities where a LiDAR with customized software with multiple customers can be integrated to enable their LCAS system or other kinds of automation, and our team is working actively on that. Our engineering teams and our sales team are working actively on that. And, Jesse, from a timing standpoint, we expect these revenues in 2026. As we mentioned before. Jesse Sobelson: Great. That's wonderful to hear. I really appreciate the detail there. You know, then just to quickly touch upon the defense sector, and then I'll let the line open up for some other questions. But, you know, the autonomous drone that you guys are discussing sounds very intriguing. Are there any specific programs or agencies that you're aiming to engage with in this defense vertical? And what would be the timing of expecting, you know, any prototypes to be announced or any potential pilots, you know, beginning with these targeted agencies? Thank you. Sumit Sharma: We're working actively in this space. Right? I think as partnerships happen, we will announce them. I think in this case, you know, something we have certain blocks of technology that we're already built out. Specifically the sensor fusion, the perception. And our LiDAR products. Beyond that, you know, we are integrating other sensors into it. So, again, as Anubhav mentioned, very mission-specific, so we're not making a general product. But instead of waiting for a partnership to be announced and then start working on a development, we've seen enough interest in it that it was easy to demonstrate something by the early first half of next year. With the drone technology, which is completely, you know, puts us in a completely different category than any other LiDAR company. So if you think about this thing, it's a demonstrator. It's a public demonstrator. We're funding it. Based on input that we receive from a lot of different places of something one of the crucial blocks that we should be demonstrating, for partners to, you know, evaluate our level of expertise. Glen, perhaps you wanna get some color? Glen DeVos: Yeah. That's exactly right, Sumit. As you mentioned, we really have a multiple-phase project launched for airborne drones where we can show not just, hey, here's how a LiDAR sensor works, but rather here's how LiDAR vision ultimately radar, all work together to provide a couple of different things. One is pure autonomous navigation for that drone. So in RF and GPS denied environments, very common in particular in areas of conflict. You are able to navigate that drone with precision without having to rely on any external communications. We can also create the maps in real-time and then share those maps with other drones, as Sumit mentioned. You know, swarming and multiple drone operations. Well, you can enable that through that communication of real-time maps. From one drone to another. And so we'll be showcasing how that actually works and how our technology develops that. And the great thing is we don't if you think about the drone somewhat agnostically, you know, it's a vehicle platform that we'll control. MicroVision, Inc. has all of the constituent technologies required to make that happen. We have the sensors. We have the ability to process and fuse the different sensing modalities. We have the map-making and the, basically, the perception software so we can build the environmental model for the vehicle. Or for the drone. Then we have the actual autonomous stack that sits on top. This is back from the IP that we acquired with iBail. So we're able to integrate those existing assets into this new package. And that's why for us, it's important to be able to just showcase that use that as a platform to attract and work with and identify and work with the right partners in that space. And the initial focus is on defense. But when you think about what we just talked about, it really applies very broadly to commercial markets, logistics, and many other different markets so that technology can easily be transferred over to other end markets. But the initial focus is really what we can do in defense. Jesse Sobelson: Great. Thanks a lot, guys. Sumit Sharma: Thanks, Jesse. Thank you. Operator: And our next question comes from Casey Ryan of Westpark Capital. Casey Ryan: Thank you for the update. Hey. Talking about end markets and TAMs, do we need to break industrial down to be broader than what we've talked about historically just that, you know, distribution, warehousing is one, but are we starting to see a more expansive definition of industrial or sort of non-automotive? Sumit Sharma: It'd be great to hear about that. Yeah. So let me get let me You got enough room for work. Can you go on mute so we can so I can answer? Casey Ryan: Alright. Sumit Sharma: Yeah. Well, let me just give some context on that. So think about the industrial. I think the way to approach the problem is what are the channels that you have to go in that you have to develop, to get your product into the market. Actually, you know, we know how to make product. We know how to solve problems. I think it's really come from you got this, you know, awesome technology you're sitting with, but how are you gonna actually develop a channel to dominate? So if you can take the industrial space, the way to break it down is geofence, you know, mixed use, ADAS. But, also, you know, there are certain parts that are kinda automated in the sense that if somebody needs a safety sensor right now, they know exactly who the three to four suppliers are. Know who's number one that's got more than 80% market. Share in there. They go get a quote, and they just keep replacing. Or the new equipment keep adding. So over a long period of time, there's a recurring revenue in that space that is agnostic of the three segments that I described. When they develop any kind of AGV AMR, they need the safety sensor, they always go to a standard product. So if you think about the chain I have to create a channel for that market where we are a standardized safety sensor product that you would need a higher workforce, of course, when that moment comes in. Because the way you would actually go do sales there is different than the small that we have right now that goes after individual high volume projects. You'd have to really be a mass market product and, you know, deploy across different distribution channels. So the real answer is that how do you segment this market? Well, there's multiple ways. Right now, given how we're targeting, we have to pick the cherry products. That have high volume. Recently, we were, you know, discussing with somebody in an RFQ, and the volume was only 15 And they're like, oh, we're only 1,500 units. And I met them, and I said, no. No. That's pretty good for us. Right? Because, you know, that's how the momentum starts. Of course, we'll build trust from there, and we'll go and, you know, take years to build it. Into their pipeline. So I don't think you have to dissect the segment more, but dominantly, track the automation, and warehouse. This is the two big places where this sensor and any sensor that we come up with, safety sensor, is gonna be dominant. So I think we can keep it at those segments. It's how we attack those segments and how we go after developing those channels. Is probably a better way to discuss because, of course, feature expense will be related. To that. Right now, what we can do with our current workforce, our sales team, is focus on some things. And once we get the real understanding of how those channels are developing, we can invest heavier to go higher. But when we go to the safety sensor, you definitely need a bigger sales team to go global across multiple distribution channels. Operator: Mister Ryan, did you have a follow-up? Casey Ryan: Let's move to the next then. Operator: I will now turn this call back over to Anubhav Verma. To read questions submitted through the webcast. Thank you. Anubhav Verma: Thank you, Paul. Right. So first question, what is the status of the industrial OEM evaluating our technology? Can you explain what is causing the order delay? What is the status of other industrial companies evaluating our technology? Yeah. I'll take this. I don't think there is any delay in making a decision. I think, you know, we have a sensor. We provide software. They have their own software to integrate into their AGV AMRs. You know? Like, some of the ones that we visited are as few as 100 units. Some of them are higher than that. I think they're all in different levels of evaluation of how they will integrate into their system. You know, of course, we sell a solution. But the bigger thing that every partner has to figure out is, if they are making a new product, how is that gonna plug into the supply chain? How to go to their factory, get installed, the integration part of it? If you have a customer that's potentially looking at to go more aggressively and retrofit it, they have to figure all those things out. Like, you know, once the product gets installed, how would you upgrade a firmware bug that could be found? So there's lots of steps involved to get that integration part done. So I would just qualify it as more, you know, that it is in deep evaluation. I think in all cases, we have not really submitted any big changes. I think we're done. We just support them in the various things that all these customers are finding. Just to upgrade, you know, our offering. But our input at this point is minimal, and, you know, we are actively supporting their integration efforts to make sure everything is exactly the way they would want. These customers are different than automotive customers. Automotive customers have multiple years to figure this out. Industrial customers, on the other hand, you know, they can take as little as twelve months, as much as twenty-four months. So typically, like, you know, they wanna make sure whatever they're buying is gonna smoothly integrate. So that's where we are in these engagements. Anubhav, I think you're on mute. Next question. Recently, most of the other LiDAR companies have announced sensors for the industrial sectors. How do you plan to compete with them especially existing players like Alstair and SIC, that have a stronger revenue and a customer base. Glen, you wanna tackle this? Glen DeVos: Yeah. I think really, on a couple of different levels. Especially when we look at the existing portfolios of those parts, they're largely electromechanical. Electromechanical assembly is quite large, large towers. So, really, there's a few dimensions that we compete on. The first is really on technology. And what I mean by that is when you look at the products we're offering for industrial, which are all silicon-based, so their flashlight are all silicon-based. They just have a fundamental cost advantage from the technology itself in terms of how you assemble the sensor, how you operate the sensor, and the benefits that scale brings in terms of the production of that sensor. So there's a significant cost floor advantage for us. The second is, we package ours, it's for harsh environments. And so whether you're spraying it with a wand to clean the vehicle, or it's wiping it down with an older cloth or lenses, our Gorilla Glass, the product is sealed, has high integrity sealing. So that it's very, very compatible with harsh environments. Not just shock and vibe, but really the elements that you see when you in these industrial environments. And then the third is just size and power. They're more compact. They consume less power, which is very critical for battery-operated AGVs and AMRs. The next dimension of really that we think, well, we have a competitive advantage is in that we're not just providing a catalog sensor that can, you know, deliver a point cloud. We have, in fact, that full software stack that goes with that sensor. So we can provide perception. We can provide driver assistance or LCAS features on top of that perception. Can deliver a wide range of functional content in that sensor we can really tailor that to the particular OEM's needs. And I think it's really critical that we're not just, you know, not a one size fits all type of solution or a catalog sale. It really is. Where these OEMs are that we're working with we can tailor the solution to their vehicles their needs in terms of their end-use applications, and that what we're seeing with customers is that's a significant difference maker for that customer. They're not trying to don't have to adapt their system to our sensor. Can integrate it with their architecture. And then finally, I would highlight, as Sumit mentioned earlier, the whole idea of the bolt-on system, because we have that complete offering, hardware, software, perception, features on top, LCAS functionality. Able to actually offer those customers a bolt-on system for existing vehicles and for existing fleets. Or for fleets that are just going out that don't have any driver assistance or safety-related features with them. And as a result, we're able to basically just power that up easily add it to the system, provide that vehicle with an additional level of safety performance, very quickly. We offer the entire software stack that enables that. And so that's, as Sumit was mentioned earlier, seeing a really strong pull for that. Because there really aren't driver assistance systems like that or safety systems out there today, this enables our customers to be able to adopt, deploy, very rapidly, and then start getting the benefits both in terms of safety as well as increased productivity from the adoption of those systems. So it's really on a couple of different dimensions that we think we're in a very good competitive position. It's really kind of disrupt the status quo of electromechanical and old-school style sensors. And really bring in much more modern, much more cost-effective, much higher-performing systems. Anubhav Verma: Thank you, Glen. Next question. MicroVision, Inc. is entering the military tech space. Today, you mentioned drones, aerial, and marine applications in the defense tech space. Are we pivoting away from LiDAR because we have limited success or do we have something valuable to offer? And how much dilution should shareholders expect from this? I'll take that. I think I'll, I'll answer the first half of it. And then, Anubhav, probably, you can come and help with the dilution part of it. So let's first of all, like, I think, like, you know, we're expanding what we have. So as I think Anubhav's already mentioned. Right? We don't expect big increases in our OpEx. And we're still promising that in the first half next year, we're gonna have this very sophisticated, drone demonstrator. So I think, like, you know, I want all of us to think about all of us shareholders to think about it as you know, we're doing more with the same set of resources. But we're optimizing what the market needs. So LiDAR still is a foundational sensor. It is why we're gonna keep having an advantage. So let me give an example. Right? And I've been thinking about this, over the weekend. So far, you know, we do LiDAR, and, you know, you always think about autonomous vehicles, you know, on roads. We mentioned drones, and we'll about why we may have to invent drones. But we also mentioned maritime. So we're going where the market is going in the military tech space. If there is huge investments to automate, you know, watercraft and maritime. Of course, we have to see, do we fit, and do we offer anything new? So if you think about, like, you know, any of us, let's say we had, you know, enough experience on our team that, you know, says, you know what? Enough Navy ex-Navy SEALs and that would say, you know what? Let's make this product. They would always start. You know, they would need what? They would need some sort of, like, GNSS. You know, we think about, like, you know, some GPS. There could be IMU. There could be, you know, they need, like, vehicle automation systems. You know? Camera sensors, radar sensors, LiDAR sensors, microphones. They would have maps, you know, you know, for, like, inland maps. Right? That they have to navigate around. And all sorts of data archives. So these are the fundamental building blocks that any company in that space providing a prime, providing an autonomous boat to a DOD contract would need. All of them would take those inputs and put it into, let's say, call it a black box, like a sensor, fusion black box, which is what we have. We provide the LiDAR that accelerates our path to take that and take that construct and create a seamless database for them where we our perception very quickly identifies key topics, or key items in the field of view. Which could be obviously, in this case, you know, could be all the way around the boat. Under the water as well. All combined. And allows them to have faster insights. So the same fundamental we've talking about that enable ADAS and autonomy with different sensors can be deployed in a completely different area. But the fundamental building blocks the company has. But there are other fundamental building blocks. Like, for example, we've never integrated anything with the sonar. Or, like, you know, a microphone, right, or any kind of other those kinds of sensors. So we could build that. So we wanna go find partnerships to demonstrate with our growing technology what we have demonstrated. And say, you know, our construct, our real product is the software and hardware package that accelerates your adoption path. I can bring autonomy to you faster. And so you haven't to invent all of this, I have blocks already built out. So I would say that we're expanding with the bids that we have. We don't see the OpEx going up, and we're gonna demonstrate it publicly. So I would not say it's pivoting. It's expanding the product lines that we have. In the military tech. But what we have applies to all three areas. Of course, terrestrial, everybody on this call, knows a lot about it. You know, we've been talking a lot about it. Drone is something that's interesting. The nice thing about drones is they are up in the air, but there's that much traffic, but there's also not that much that many roads. So the rules are different. So you can apply autonomy at a faster pace and demonstrate something, and the thing that, that Glen's talked about in developing these real-time maps this is actually a really important thing. Remember, if any of us were dropped into some place we don't know, the first thing you need is a map, and your map could be old. Because things could have changed after a rainstorm or something. But being able to, in a very cheap manner, create your own high-resolution map. It's a very first step before any mission can be deployed. So that's what we're gonna demonstrate in a multiple drones working together. And, of course, expand it further to maritime. But, Anubhav, you wanna handle the dilution question? Anubhav Verma: Yeah. No. I think that's right, Sumit. So I think in terms of dilution, I think I wanna make sure our shareholders understand the model here. I don't think the model is to become a full, solution provider where, you know, you're trying to become the Auroras or, you know, a fully autonomous systems provider. What we are essentially, I've heard the word partnerships here. Right? We are partnering with the right company for the right mission. And I think that's what the key to this message is because what we're trying to come up with is the right pieces that they are missing because we have already built them out as individual blocks. And how do we collaborate slash partner with them to deliver these specific missions. As an example, we're not looking to become a drone company, but we're looking to partner with a drone company where we can enable the drones for a specific mission like mapping. And that from an expense standpoint, yeah, it will add a few millions of dollars of expenses. But again, this is not pivoting away. To become and own a full, autonomy autonomous solution that we'll have to develop from scratch. I think that's not the business model that we're going into because that model, while it is actually very juicy, but as you can imagine, it requires billions of dollars of capital and really a lot of patience, which we have seen in some of the big companies. Which are chasing this deep dream. So I think that's why I wanna be very clear that here, we're trying to partner with some of the other companies where we can provide a solution that together becomes a comprehensive package for delivering a particular mission. Alright. Next question. What happened to the seven RFQs? The number was taken away from the Q2 press release. What is going on with these RFQs? Yeah. Let me start off with that, and maybe, Glen, you can come back and add some more. Think about the RFQs as, you know, OEMs reformulating, which is they do quite often every so often where they reformulate what their real needs are. So I think, like, we've been at Maven for a long period of time, and as always said, our go-to-market strategy is to really focus on not just making announcements, increasing our OpEx and not revenues coming in, is to go work with target OEMs that actually have a real product plan where we can connect. As you can imagine, as Anubhav said, I've said, Glen has said, for OEMs, automotive OEMs, cost is always gonna be number one. They want the highest technology, but cost is equally or even higher in the priority list. So they wanna get at the right level. So for the longest term, I would say, Maven, is some of the choices that have always been made of what's your required for a long-range LiDAR. You want wide field of view? But you also want length. You want low power. It's just an over-constrained problem. So, yes, if you develop something, you provide it there. The cost is extremely high. The power is extremely high. The form factor is pretty high. Because of the optical choices you have to make. So I would say these new RFQs, you know, I think they're gonna keep evolving. But I think they are starting to realize that there are other alternative ways to think about the problem that we must more cost-competitive. And meet and exceed the requirements. So to perhaps to deliver dynamic with the LiDAR, imposing all those requirements for one sensor and then expect it to be super cheap is a fool's errand because every OEM and every award that they've done so far, that has never worked out. So I think, like, I'll let Glen talk about it, but I think, you know, since he has so much experience, you know, from tier ones and OEMs, he sort of guided us toward what's the right product. And maybe we can introduce it now, Glen. Before we give all the details, you know, like, a little teaser. So, you know, in IAA, we can give the full loan. Perhaps you can join. Glen DeVos: Yeah. Yeah. Yeah. Yeah. Just to touch on the whole OEM, you know, quoting process and status. As we talked about in Investor Day as well as the prior earnings call, the auto OEMs in general, broadly speaking, were kind of reached reformulating their strategies around level three, the adoption and the use of LiDAR for level three and, you know, and how that would look. And that and that was not that's been an ongoing process. It continues. And I think what we're seeing now really two things. One is more of a rational approach around this in terms of, you know, what platforms are they really gonna deploy level three on, how they're gonna do it, timing associated with that. So the quality of the RFQs has improved as well as, I think, from my perspective, our confidence at the RFQ, that there's real volume at the other end of that process. So that's, you know, for me, that's a good thing. LiDAR is not, you know, at the maturity level or at the commodity level as a brake controller or radio. And where the purchasing process for those types of components is very predictable. It's and it's just a very well tried and true process, and it's you know, the outcomes are pretty predictable, and the timing of that is predictable. LiDAR with a level three functionality is still very much an engineered product and a tech product that where the OEMs still kinda feeling their way through that, but they're making progress. RFQs that we're involved in now, like I said, have higher quality. They're more confident in the ability for those things to really turn into real programs and revenue. So that's the exciting part of it. Now Sumit touched on something that is very near and dear to my heart because with my history with radar, with vision systems, and other safety-related systems or just new technology in general, ultimately, for broad adoption, the cost has to come down. Heard a lot of discussion around, well, cost will come down when LiDAR volumes go up. Well, those volumes won't go up. Until cost comes down. It's actually the other way around. And that was very true with vision systems. It's very true with radar systems when we first introduced those. In automotive twenty plus years ago, it took a long time for those cost curves to come down. But when the product cost comes down, that's when volumes come. You enable that through lower-cost solutions. And so for us and what our focus has been on since certainly over the past year and then really intensified since I joined in April, has been on for auto. What's the right strategy there to drive cost down but not the sacrifice of performance? And really looking at it from a vehicle or a system architecture. Level, not thinking just as, hey. We provide a sensor, We provide a system architecture, a system solution. And we break the problem down into not just, you know, one super sensor, rather how do you break that down into smaller elements. And this is what we did with radar. It's what we've done in vision where we have, you know, a different architecture and maybe not just one super sensor, but rather multiple sensors, that's what we're going to talk about in the upcoming where we believe we have a much more efficient system architecture that delivers better performance, smaller packaging, lower power consumption, and ultimately will enable the OEMs to offer these features at lower total system cost of the vehicle. So really excited about what we can do there. The technologies we have that enable this, and then as well, unveiling that really at IAA in early September. So a lot more to come here. But this is, you know, we're literally redefining LiDAR for automotive. It what's been there the process been taken prior to this I think, has led to very low adoption rates, very low penetration. We're redefining it. We're going to enable it to be much more broadly applied. Ultimately, down to level two in standard AI system. That's what we're trying to do. Alright. So, I'll turn it over to you and Anubhav. Anubhav Verma: No. Thanks, Glen. This was very helpful. I guess there is a follow-up question here. Is, do you anticipate any high-volume automotive production RFQs to be awarded in 2025? Or are the timelines being pushed to at least 2026? Glen DeVos: No. I think that here's how I would answer that because, you know, predicting OEM sourcing timing is can always be tricky because, you know, that's not in our control. And other factors that the OEM may influence that. We're actively engaged in quotes now. That could very well be completed yet, you know, well before the end of the year. That certainly would be our hope. And so that's how we're that's how we're behaving. What I would tell you, though, is that quote timing may shift around a little bit. It may slide out to 26 as they finalize their plans. But, ultimately, it's not shifting out the launch date for the introductory day. And depending on the OEM, that's still, you know, as early as '28. Small volumes, you know, coming into more into '29, higher volumes. So, you know, we aren't really seeing the launch timing move. The sourcing timing may shift around. But like we talked about at investor day and earlier, you know, really that next generation of platforms we see still happening in that, you know, maybe as early as '28, '29 time frame for sure, and then 30 really hitting higher volumes. Anubhav Verma: Thanks, Glen. Next question. MicroVision, Inc. has not won any deals, and other companies have since made changes to their products. Are we at risk of having outdated or inferior technology? What are we doing to remain best in class? Alright. Let me start with this. So I think if you think about industrial, our Movia L with our software is a refreshed product. At a very competitive price with integrated software. I think that's, you know, our path to revenue immediately. I think it's a very fair question. I think the way you think about it, it's actually working really perfectly. But think about, like, you know, some of the other LiDAR companies what they're saying and what you're hearing from our call is nuanced, but it is clear what how we're thinking about our strategy. I think as Glen described that there will be instead of thinking about a complicated set of requirements and shoving it into one single box it's not the right strategy. It makes sense to have multiple sensors. Software architecture. Think about the entire car, how you simplify it, and their overall cost will come down. In that sense, we are evolving our product with Movia S, with Maven, to give them the right tool for the right problem. Okay? So think about that as more of an evolution instead of, like, other, you know, of our competition. They've, like, completely stopped the development and gone to a completely different product. Right? We're still MEMS-based technology. We're still using 905 laser. We're still time of flight. So all that construct is the same. But instead of a dynamic LiDAR shoved into a single sensor, with a wide field of view, about it being broken down into some, you know, different sensors that cover it. But still bringing cost down, not going up. That's the interesting part that we talk about and demonstrate at IAA. You know, when you think about other awards that have happened, right, I just wanna give context. Right? I congratulate them. It's great. You know, we choose not to do those because it increases the OpEx, but there is no guarantee you're gonna have any follow-on volume. Right? Certainly wanna get some validation. But we have products that we can show that, you know, should be able to get deals done. You know, you hear other things like, you know, people are working on economy of scale. They're gonna put everything on a single chip. Laser on chip, and, you know, so on. So all these words are thrown out there. But none of them are amounting to guaranteed revenues from OEMs because the OEM products are far away, and most of them are really seeking NRE. So I think, like, you know, I totally appreciate your question about someone has won deals. They have evolved their product. Do we have to evolve the product? I think we are, you know, they're not evolving products. They're going to a next generation. I would say we are evolving the product by breaking the problem down, keeping costs in mind, integration in mind. Glen, did I miss anything? Do you wanna add more? Glen DeVos: Yeah. The thing I would add is a lot of times you'll hear people talk about technology, and then generally speaking, they're talking the hardware component. And as Sumit mentioned, we have a very robust roadmap and have had a roadmap and have, you know, and have looking at that for those three markets that we talked about, industrial, automotive, and defense. And so we have a very robust hardware roadmap. That, I think, puts us into an industry-leading position. But along with that, and this is really critical, we have a very good software roadmap. And including how do we incorporate the very latest software capabilities using machine learning, using AI, using GenAI for not just the end product functionality, but also for how we develop that product. And so and all of this to deliver best performance but at lower total system cost. And so, you know, I always enjoy personally, I always keep an eye very much on the competitive landscape. And like to see how LiDAR is progressing more broadly speaking. But I feel, you know, we're I feel very good about the direction we're heading, the speed at which we're heading in that direction. And then the approach that we're taking and the roadmap that we have to support that. Anubhav Verma: Thanks, Glen. Next calls. Next question. From this earnings call, I gather that MicroVision, Inc. is transforming from just a LiDAR company into an autonomous systems company. How does the future look for LiDAR companies moving up the chain? Let me take that question because I think this is related to the dilution question earlier. Like I mentioned, in my previous remarks, I don't think this requires huge amounts of investments or significantly improving or adding to the cost structure of the company because like I mentioned, the word you are hearing the word partnerships. And, again, the idea here is the block that we already have how do we fit them in the puzzle which other, providers are looking for, and then present a complete package to the other parties, to the end customers. And then that's why I mentioned that again, we're not looking to compete with the Auroras or full autonomous systems company where they are providing that system solution end to end. Because that's a very expensive and a very, long process. We're not looking to become that. What we're looking to become is a company that enables some of these smaller players to deliver autonomy to the industrial customers as well as defense tech customers from the end market standpoint. And I think the future for LiDAR companies moving up the chain, what we're simply working on right now is integrating multimodal solutions or LiDAR becomes one of the components of the sensor suite that we're gonna be offering along with our full-stack software and then it could be combined with, as Glen mentioned, radar or cameras and then you present that solution with that software that needs to be integrated at the customer's end. That's the future that we're shooting for. And this would not require huge upsizing of the cost structure that we have right now. It will require some investment. I think, again, we wanna be we have been very clear in our communication that, again, it will require some investment because as Sumit and Glen mentioned, this does include or require some of our engineers to spend time customizing the solution for some of these applications. But again, it doesn't mean that the OpEx is gonna go to three x or four x. So that's not what we're looking to do. We're looking to keep the OpEx where it is relatively at the same levels, maybe add a few expenses here and there, but that's the vision or that's the vision the company is shooting for and executing on. Next question. Has MicroVision, Inc. recently issued more shares? Management said that they will not need to issue shares in the near term. And maybe the next related question is what is the plan for making payments in September for our debt with Hytrell Capital? Do you anticipate any near-term need for additional financing or dilution? So, again, I think I wanna clarify. I don't think any company any LiDAR company would say that they're not gonna issue shares or raise more capital, I think it's very evident that statement just cannot be true because at the end of the day, all LiDAR companies are going through this evolution. Where they have to be cost structure efficient while choosing the path that will get them to the ultimate destination where they wanna be one of the last men last few companies standing and have moved up graduated to the value chain having software. As a very important component of their offerings. So, so that's that. So obviously, we did sell some shares because I think one of the main reasons why what I mentioned in my call as well that we have become an attractive, investment for, several, large financial institutions as well. Because of, the stability and the longer runway it has. The company has. Because, again, you can imagine any big investor would really wanna feel safe about their investment when they know the company had resources to execute the business strategy. Now I think where the skill of the management teams at each of these companies will be judged by. How do they raise capital, and how do they navigate these capital markets to make or execute the most efficient capital strategy to get to the endpoint here. And I think as we have, demonstrated in the past, history of the company that we have been very prudent and very opportunistic in raising capital. And, again, I continue to extend that strategy and vision to make sure MicroVision, Inc. is fully capitalized at all times to execute a business vision. While at the same time being pragmatic and practical of the dilution for the shareholders as well. The plan for making the payments in September, so like I said, we have adequate amounts of cash to start our first payment is gonna be due on September 1. And we expect to make that payment in cash. And if the stock price and the market conditions are favorable, and if the holder, Hytrell, elects because they have the option to elect to take it in stock, if that happens, then, obviously, we will have to put those shares. But, you know, like I said, you know, we'll be looking to optimize the way we are putting cash on the company's balance sheet. For us to be able to execute the vision. Because like I said, the skills of this game is to how do you sort of navigate these markets by being by choosing the most effective, cost-effective path to raise capital until you get to the point where only a handful of players are there, and the revenues have scaled, and there's cash flow breakevens. Next question. What military revenue opportunities are you targeting? How should shareholders think about the revenue from this industry in 2025 and 2026? And what could be the expected impact on the expenses of the company? Sumit, maybe you wanna talk about this? Sumit Sharma: Yeah. I think, you know, think about the military revenue opportunities. Think about partnerships. Partnerships mean that you have to demonstrate your technology. So there's sort of co-development. I don't know. Everybody has their architecture they're dealing with right now. They have fielded products. They have contracts within the military right now. With the DOD. And, you know, we are targeting specifically people that need an upgrade on their solution. And not just that we set some of LiDAR, we try to give them a more holistic product. Certainly, with, you know, products that are, you know, off-road vehicles that are doing some sort of or all sorts of other things. In the terrestrial space. You know? That's something that we can demonstrate. Find the right partner that is willing to work with us to not just buy the LiDAR, but also work with us to see what advantage of our sensor fusion technology is. When it comes to drones and when it comes to, you know, maritime products, I think we may have a better opportunity there to showcase our technology and then expand from there. But in all cases, we start with a partnership. And then after you've proven yourself and you can be a, you know, a trusted partner to them, that is got components that are not susceptible to or they're not sensitive to anything from China. Which we are. You know, successfully, we could demonstrate that. We have a robust, LiDAR product line. That will enable us to think about other next steps beyond that. I think that's the best way to think about it, you know, from a recurring revenue, you know, when their products go into market. Glen and Anubhav, you guys wanna add something to this? Glen DeVos: Yeah. Maybe you know, this is Glen. Go for it. I'm sorry, Anubhav. Oh, yeah. Okay. Go for it. Yeah. I just had maybe add a little bit to what you said. Because you covered it very nicely. I think ultimately, as we've talked to, in particular, terrestrial, you know, the MAV market, they're looking for much more robust systems, you know, that are easier to package on the vehicle, that are incredibly robust, you know, not just dust, you know, resistant or temporary, you know, a light spray of water resistant, but rather really aggressive and robust systems that can withstand high-pressure wash, can withstand all, you know, all environmental conditions. Can be, you know, can be sprayed and cleaned off, and then we'll work reliably. And that's exactly what we do. And so it's been really it's been fun to talk to some of these OEMs. About how our solution can really help them and making their solution more robust and more effective in the field. So it's a great opportunity for us in addition to what we've talked about with drones. And everything around enabling autonomy. Anubhav Verma: Thanks, Glen. And let me add a few things here. So I think I want our shareholders to think about it in two steps. Step one is maybe, sort of have a broader view on the defense tech industry. Right? Because again, clearly, if you guys follow or if you start following the DefenseTech space, this is this DefenseTech space is having its what I call as the auto tech moment four years ago. What I mean by that is, four years ago, if you recall, auto tech companies were really flying high because the demand and the strategic importance of these companies to the future of our economy and our progress was very important and very critical. And I think that's why if you look at the same moment is now being experienced in the defense tech industry, it's especially in some of these opportunities, there's maritime and this airborne area that we mentioned, where there's a lot of investment going into. Why? Because it's of strategic importance. And I think in terms of revenue, while the revenue may not be big in 2025, the strategic importance of that collaboration is gonna be far more bigger than the revenue quantum. And what I mean by that is because as the geopolitical world or, you know, plays out on the international stage, it becomes even more important for our economy and our military might to increase significantly and protect us from any and building our defense capabilities. And that's sort of what you're seeing in this market. And hence, what some of the projects that we have described is are some of the projects with very high strategic value where you become a very critical player in the ecosystem delivering that capability. And that's why the value of being a very important player in that ecosystem is far more important than just the revenue quantum. So that's how I want investors to think about the strategic play. And remember, here, the volumes are never gonna be millions of units. As in the automotive. But like I mentioned, it's gonna be, fewer units, but the ability to deliver a full software solution which, for example, the OEMs as we mentioned, OEMs are not looking for a full software solution while here, we are enabling, to deliver our full software stack for these mission-specific applications. The second part is, again, the expected impact of the expenses of the company. Like I mentioned, we're not looking to double or triple our expenses. We're simply looking to maybe add some more expenses, but these expenses would be to prove out the value of our solutions, our LiDAR and multimodal solutions, sensor suite with our software stack to the, to the specific provider, the primes, or, the subprimes who are looking to deliver these mission-specific applications to the military. For the country. So that's sort of how I want our shareholders to think about both the top line and the strategic importance and the expense profile of the company going forward. I think we have gone ten minutes overboard. So, again, I again, would like to thank everybody, our shareholders for jumping on this call, and we are looking forward to sharing with you the next update very soon. And we look forward to sharing more progress at the IAA in Munich. Next month. Thank you again for joining us on our second-quarter call. Operator: Thank you. This concludes today's conference. All parties may disconnect, and have a great day. Drew Markham: The host has ended this call. Goodbye. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,046%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of August 4, 2025 This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. Parts of this article were created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
Time of India
23-07-2025
- Time of India
Man sentenced to 20 years in jail, 4 months after sexually assaulting 2-year-old niece in UP
BAREILLY: Four months after a two-year-old girl was sexually assaulted by her maternal uncle in Rampur, a special Pocso court sentenced the latter to 20 years of rigorous imprisonment. The court also imposed a fine of Rs 1 lakh on the convict. ADGC Sumit Sharma said, "The uncle took the girl to a secluded area and sexually assaulted her. The survivor was found with injuries on her private parts. The uncle was arrested soon after. An FIR was filed against him under BNS section 65-2 (rape on a woman under 12 years of age) and the Pocso Act on March 13, 2025. During trial, the girl's father, demanded a severe punishment for the accused, while the defence claimed that he was innocent. The court of ADJ Ramgopal Singh (special Pocso court) on Monday found him guilty of assaulting the child and sentenced him to 20 years in prison, and a fine of Rs 1 lakh. (The victim's identity has not been revealed to protect her privacy as per Supreme court directives on cases related to sexual assault)
Mint
13-06-2025
- Business
- Mint
5 things you wrongly believe impact your credit score
As more borrowers in the country become credit conscious and monitor their credit scores, myths and speculations about what truly influences creditworthiness continue to circulate. Today as things stand due to rapid increase in personal loan defaults, credit awareness is at an all time high. Yet misconceptions persist, often leading to unnecessary anxiety along with poor financial decisions. Several Indians, especially first time borrowers, still believe that factors like income level, marital status, or even checking their own credit score can negatively impact it. That's far from the truth. 'Many first-time borrowers wrongly think income, marital status, or checking their own credit score affects their rating. In reality, only how you manage credit—like timely repayments and low balances—matters,' says Sumit Sharma, Founder of Radian Finserv. 'For young and rural Indians, busting these myths is key to financial empowerment.' Echoing the same, Akshay Aedula, Product and Growth at CRED, adds 'Your credit score reflects how you manage credit, not your income, spending, or how often you check it. The key is responsible usage: pay on time, keep utilisation low, build a solid history, and maintain a healthy credit mix.' 1. Checking your own credit score: One of the most persistent myths is that checking your own credit score will lower it and harm your overall credit profile. In reality, any self check done by you is categorised as 'soft inquiries' that is why it has no influence on your credit score. On the contrary, professionals encourage consistent monitoring of your credit profile as it helps in staying informed and spot errors or fraud early. 2. Your income level: Many borrowers believe that a higher salary or income guarantees a better credit score. In reality the truth is far from this as this is never the case. Your income has no direct relation with your credit score. Your credit score basically is determined by factors such as your credit history, payment behaviour, credit utilisation, level of debt and not your salary. Due to the same issue, someone earning ₹ 5 lakh per year can have a higher credit score whereas someone earning ₹ 10 lakhs may have no score at all if they have never used credit earlier. 3. Debit card usage: Using a debit card for purchasing products or services does not build or impact your credit score. Debit cards draw directly for your bank balance and do not involve any kind of credit facility. That is why do remember that only credit cards, personal loans and other credit products contribute to your credit history. 4. Bounced cheques (Unless for EMI):A cheque bounce is an offence under the Section 138 of the Negotiable Instruments Act, 1881. Still, a bounced cheque does not affect your credit score until and unless they were issued to pay an EMI of a personal loan or credit card pending payments along with any other credit related products payment. In all such cases the missed EMI would be reported but otherwise bounced cheques do not influence your credit score. Lenders check at how you manage your credit and not your general banking habits. 5. Marital status or joint accounts: This is another extremely important myth that needs to be put to rest. Your marital status and joint bank accounts have no bearing on your individual credit score. Credit bureaus such as CIBIL, CRIF High Mark, Equifax among others assess every individual's creditworthiness separately. This is done regardless of whether you have joint accounts or are married. On a fundamental level your spouse's credit behaviour does not influence your credit score. Hence, consistently checking your credit score is a wise decision but rest assured self checks, debit card usage, income level, bouncing of credit non related cheques (unless for EMI) along with marital status do not influence your credit score. Getting a hold on these simple concepts can help you make smarter financial decisions and avoid unnecessary stress. Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit scores. Mint does not promote or encourage taking credit, as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
Yahoo
13-05-2025
- Business
- Yahoo
Q1 2025 MicroVision Inc Earnings Call
Drew Markham; Vice President, General Counsel, Secretary; MicroVision Inc Sumit Sharma; Chief Executive Officer, Director; MicroVision Inc Anubhav Verma; Chief Financial Officer; MicroVision Inc Glen Devos; Senior Vice President, Chief Technology Officer; MicroVision Inc Casey Ryan; Analyst; WestPark Capital, Inc. Jesse Sobelson; Analyst; D. Boral Capital Operator Good afternoon, and welcome to the MicroVision first quarter 2025 financial and operating results conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Drew Markham. Please go ahead. Drew Markham Thank you, operator. Good afternoon. I'm here today with our Chief Executive Officer, Sumit Sharma; and our Chief Financial Officer, Anubhav Verma. Following their prepared remarks, our Chief Technology Officer, Glen DeVos, will join us, and we will open the call to questions. Please note that some of the information you will hear in today's discussion will include forward-looking statements, including, but not limited to, statements regarding status of commercial engagements, business, product and go-to-market strategies, level of customer and partner engagement, cash, liquidity and the impacts of recent financing activities, market landscape and opportunities, program volumes and timing, project developments, performance of our products and solutions, product sales and future demand, projections of future operations, cash flow and financial results, availability of funds and conditions for capital raising as well as statements containing words like believe, expect, plan or other similar expressions. These statements are not guarantees of future performance. Actual results could differ materially from the future results implied or expressed in the forward-looking statements. We encourage you to review our SEC filings, including our most recently filed Annual Report on Form 10-K and our quarterly reports on Form 10-Q. These filings describe risk factors that could cause our actual results to differ materially from those implied or expressed in our forward-looking statements. All forward-looking statements are made as of the date of this call, and except as required by law, we undertake no obligation to update this information. In addition, we will present certain financial measures on this call that will be considered non-GAAP under the SEC's Regulation G. For reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure as well as for all the financial data presented on this call, please refer to the information included in our press release and in our Form 8-K dated and submitted to the SEC today, both of which can be found on our corporate website at under the SEC Filings tab. This conference call will be available for audio replay on the Investor Relations section of our website at Now I would like to turn the call over to our Chief Executive Officer, Sumit Sharma. Sumit? Sumit Sharma Thank you, Drew, and welcome, everyone, to this review of our first quarter 2025 results. I want to thank everyone for joining today's call. I will provide an update on the progress we have made towards commercial agreements in automotive and industrial markets as well as expansion towards the military market with our existing products. I will also provide context about our already announced Investor Day event being hosted in Redmond. First, I would like to begin our update in engagements with automotive RFQ opportunities. We remain engaged in 7 RFQs for automotive programs and make incremental progress. This has been really slow going because of OEMs focus shifting to their global plans. Lots of ebbs and flows we continue to deal with. On one hand, it is clear to us that the current global rebalancing of trade is expected to have a huge refocus on automotive OEMs resources on the supply chain issues. Advanced ADAS rollout is expected to be delayed with only very low volume LiDAR integration so far. On the other hand, we are engaged in new upcoming RFQ and custom development opportunities. We continue to support these potential customers with patience with the quickest path to on-ramp for any type of project. In previous years, we focused on winning programs targeted for production with several years of customization in play. These deals could be described as the ones our competitors signed. In each agreement, the challenge we faced was not our technology or capability rather than the state of our balance sheet would always cause OEMs to pause. Let me elaborate a bit. Our competitors who went public as part of a de-SPAC collectively raised more than a $1 billion. OEMs required a strong balance sheet to feel confident that for the initial start, we had enough runway to fund their development. MicroVision has been running leaner on capital, so it was a huge challenge to get them comfortable with our cash on hand. Our competition has not fared well even after winning early engagements. We strongly believe it is greenfield in this space with the LiDAR absolute required for advanced ADAS and autonomy. With the strengthening of our balance sheet with the High Trail deal, we are in a stronger position than previously. So we continue to drive and make progress, but I do not expect any substantial projects to be awarded with material production revenues in the near future. We intend to focus on finding custom development opportunities with OEMs. Make no mistake with the ebbs and flows of the automotive demand. This will remain the largest opportunity that eventually could deliver millions of units shipped and billions of dollars of revenues generated from this segment. With our MOVIA, MAVIN and MOVIA S LiDAR products, we believe we have the entire suite of sensors to address all OEM inquiries. I remain very excited and optimistic about our Industrial segment, though. Our in-production MOVIA L sensor integrated with onboard perception software is an advanced solution, which is frictionless for our customers to integrate. We have delivered software integrated solutions to multiple potential partners since last year. These evaluations remain in flight. We continue to make progress in this space, and I expect these engagements will lead to commercial wins for us. With our partnership with ZF, we have no exposure to China tariffs and remain cost competitive with our economy of scales in MOVIA L and eventually MOVIA S. We remain fully engaged with our potential customers as they evaluate their rollout. Up to this point, none of our potential customers have made us aware of any impact on their timing due to the ongoing global trade rebalancing or tariffs. As I shared in our last earnings call, another segment we started expanding with engagements in 2024 was mobile autonomous robots, military and commercial vehicles with our LiDAR product. We have brought on a defense advisory board that will help us on opportunities to engage with Department of Defense with our software integrated sensor technology to potentially enable programs with drones and land vehicles as well as help us explore potential opportunities with larger companies in space for a partnership. As I also mentioned previously, with our long history with delivering augmented reality for military, we remain focused on opportunities to leverage the large body of work. In this space, we expect to leverage our LiDAR products fused with radar and other third-party technologies into our software. We expect to partner with existing military primes to deliver full sensor intelligence solutions. This segment benefits from all the hardware and software building blocks that already exist within MicroVision. We expect the first system and product prototypes for this segment to be available in six to nine months. Next week, we will host an Investor Day in Redmond. We are planning to make this an event in lieu of [annual CS] attendance. At this event, investors will get an opportunity to interact with our various technology offerings as well as demos of how we plan to enable potential customers, including ride along in our demo vehicle. Investors could have a deeper discussion with management on all the ups and downs of our journey so far as well as get confidence on the stronger path we expect moving forward. I'm going to keep my prepared remarks brief today as there are questions from several shareholders, and I'd like to address that as the main narrative. I would like to turn over the call to Anubhav. Anubhav? Anubhav Verma Thanks, Sumit. I'd like to begin by reiterating Sumit's comments. We're absolutely aligned with shareholders to quickly demonstrate step function progress towards our commercial engagements with industrial customers for near-term high volume-based revenue. We remain deeply engaged with them for testing and integration of our solutions into their fleet. Next, I'd like to discuss the impact of the recently announced global tariffs. While the situation continues to be dynamic and evolving, we believe MicroVision remains well-positioned as we have our manufacturing partner in France. As announced late last year, we secured a production commitment with ZF in France to be able to meet the anticipated high-volume demand from customers in the industrial space for our MOVIA L product. We believe this does offer yet another pricing advantage to some of our customers given our minimal exposure to China-based manufacturing. Based on certain triggers, we are planning to bring up another site for MOVIA L production later this year to meet the demand. We continue to closely monitor the tariff policy developments and will provide more updates on this later in the year. Now let me provide the progress in each of the verticals we're focused on. Number one, automotive. We continue to be engaged in the 7 RFQs with automotive OEMs. However, the automotive industry is navigating a complex landscape shaped by actual and potential new tariffs. Some OEMs have suspended their annual guidance while some have quantified the potential impact of tariff-related costs. While LiDAR adoption appears to be a lower priority given the macroeconomic landscape, the direct impact of tariffs has pushed OEMs to focus even more on component costs and the origin of subsystems that go into their vehicles. OEMs will continue to go through the reformulation of existing and upcoming RFQs looking for cheaper LiDAR solutions that meet the desired performance criteria. Especially with Glen joining us from the automotive industry, we're excited to pursue our continued engagement with automotive OEMs. This vertical, albeit slower, will be the primary driver for high-volume recurring business that gets us to scale. Number two, industrial with a focus on AGV/AMR and warehouse and factory automation. With various efforts in flight in the industrial space, our team is focused on deep engagement with customers, including on-site working closely with their teams to support evaluation and integration of our solution into their fleet. We remain confident in the near-term demand from this vertical, especially after securing production capacity to meet this demand. We're seeing a lot of momentum in the AGV/AMR space as these companies continue to embrace autonomy and AI faster than others. With our current MOVIA technology and secure production capabilities, we're well-positioned to grow in this space. Number three, the Defense vertical. In the last few months, we established the Defense Advisory Board to execute our strategy in the defense vertical to map new opportunities for our products globally and pursue monetization of our existing product portfolio through near-term partnerships. Leveraging our existing product portfolio, we're formulating our go-to-market with the support and guidance of our distinguished industry advisers. The current administration has made the advancement of new technologies in defense a central priority, emphasizing rapid innovation through public/private partnerships. We will provide more updates on this at our upcoming Investor Day next week. We're thrilled to see our engineering team working closely with Glen to align our technology portfolio and strategically advance our product road map. With the capital raise in the first quarter and a streamlined cash burn, our cash runway has extended into 2026. MicroVision remains well-positioned in the marketplace with diversified near-term revenue opportunities in the Industrial and Defense sectors. The expanded TAMs, streamlined cost structure and recent financings have solidified our position. Now let's review our Q1 financial performance. For the first quarter, we reported revenues of $0.6 million. This quarter's revenue was primarily driven by our sales in the industrial verticals. Expenses; our first quarter 2025 R&D and SG&A expenses were $14.1 million, including $1.9 million of noncash charges related to stock-based compensation expense and $1.4 million in noncash charges related to depreciation and amortization. Backing out these noncash charges, our R&D and SG&A expenses were only $11 million in the quarter. On a YoY basis, we have reduced our expenses by 45%. We expect the current level to be sustained through the rest of the year. We believe our existing workforce and level of expenses will allow us to execute on the current business strategy. We believe our current engineering teams can support continued engagement with automotive OEMs and simultaneously scale faster with industrial and defense revenue opportunities in the near-term. We believe that the go-forward annual run rate of our cash, R&D and SG&A expense will be in line with our existing quarter. Q4 CapEx was $0.1 million, in line with our expectations. Now let's talk about our balance sheet. We finished the quarter with $69 million in cash and cash equivalents. In addition, the company has availability of $113.4 million under the ATM facility and about $30 million of undrawn capital under the current -- under the convertible note facility. Drawing on these facilities to their fullest extent requires additional authorized capital as well as certain favorable market conditions. On the convertible note, we have approximately $33 million outstanding that converts at a fixed price of $1.59 or approximately $1.60. The $30 million second tranche remains undrawn and available for future drawdowns subject to certain limitations. We're pleased to have found a strategic partner whose confidence in MicroVision's future has motivated an alignment of economic interest in step with our management team, employees and shareholders. Now let's talk about 2025 targets. We remain relentlessly focused on our execution. We continue to have excellent engagement with industrial customers on their technology road maps. Based on the expected advancement in current customer engagement, along with targeted market opportunities, we believe we have line of sight to $30 million to $50 million in revenue over the next 12 to 18 months. Our production commitment from our manufacturing partner, ZF, allows us to commit to high-volume deliveries to meet the anticipated demand from current customer projects. While we're not providing fiscal year 2025 guidance, this should help investors understand the size and level of engagements with customers for our MOVIA L sensors. As we expand our TAM into defense and other related areas and expand the solutions portfolio and accelerate our go-to-market strategy, we will provide more color on financial and business milestones for 2025 and 2026 in upcoming events. To summarize, we're really excited about 2025 and beyond as MicroVision drives forward with significantly higher TAMs, including defense and industrial, expansive and broadening solutions advancements, solid balance sheet and superior trading metrics and a well-experienced team to execute the strategy. Operator, I would now like to open the line for questions. Operator (Operator Instructions) Casey Ryan, WestPark Capital. Casey Ryan Good afternoon, everybody. Great update. So the first question, I think, Anubhav, you mentioned the revenue for Q1 was actually from commercial sales. Is this the first quarter we've had some commercial sales versus, say, NREs or R&D work? Anubhav Verma No, we have had commercial sales in the fourth quarter as well, Casey. So this is just a continued effort on that part. Casey Ryan Okay. Let me see something here. Okay. Good. And so clearly, you all are calling it out as being focused in the industrial vertical, I think, is what we're -- or at least what I'm in the messaging. What's driving consumption, I guess, not that you need to know, but you're able to kind of give us this $30 million to $50 million range of potential revenues over the next 12 to 18 months. I'm just curious what maybe -- what is the thing that's controlling the pace of that, I guess? How fast those revenues come in? Sumit Sharma Yes. I'll take that one and Anubhav, maybe you can help a little bit. So I think what will drive that is primarily industrial. And industrial space, there is automation activities and there's also activities to deploy ADAS with the LiDAR integrated on to -- everything integrated onto the sensor. So that's what's driving it, but it's primarily in the industrial space. Of course, all of us have very high hopes of what we want to achieve. But Q1 kind of froze up for almost everybody, right? There was a lot in decision, and we have worked through that now. Anubhav, do you want to add something? Anubhav Verma Yeah. And I think maybe, Casey, to add on, the trajectory of this $30 million to $50 million revenue is going to be -- is primarily driven by the end customers' deployment and rollout in their internal environment, which is, again, driven by their need to reduce costs and obviously increase productivity, right? So those are some of the primary driving factors behind our customers looking for these solutions to achieve these objectives. Casey Ryan Yeah. Okay. So it doesn't -- it feels very closely connected to the end customer versus, say, the hardware manufacturer who's consuming your product isn't necessarily building up some large level of inventory or preordering product yet. It doesn't sound like. Anubhav Verma No, yes. So this is the deployment across the customers' facilities and different environments that we are dealing with different customers in the AGV/AMR space. Sumit Sharma The customer can be classified as OEMs in this space. They're dealing with directly OEMs, so they don't build inventory. They are going to roll it out. Casey Ryan In like real time. Yeah. Sumit Sharma That's right. Casey Ryan I see. Okay. That's helpful. And then would you be willing to characterize sort of the number of people you're dealing with, it's sort of more than one and less than 10? Would you care to characterize how many potential unique entities you guys are working with? Sumit Sharma Yeah, less than 10, yeah, definitely more than one, but less than 10. Casey Ryan Okay. Okay. That's helpful. Okay. So a couple of other items very quickly. You mentioned military, and I think you have some partners for military. And you mentioned drones. What's scope of the military opportunities as you see them? Is it sort of all vehicles across all branches? Is it potentially specific to like one branch or? Sumit Sharma We're -- think about our product. Our product is basically a sensor and software. We also have things that we've done in the past, which allow us to do sensor fusion with other technologies, but we can provide that. We are not a prime in the military space. We're also not bidding for -- planning to bid on like $1 billion contracts. So we're going to be a technology partner for somebody else that's a prime to deliver something that needs to be solved. This really came back on our horizon last year that there was an opportunity where existing things that we have on the shelf, there may be interest for people to evaluate and we could get to from a standstill to a working demo for them very quickly. So we expanded on the existing set of products to engage as many folks as we can. I think the new part that you would see in the earnings call today talks about drones. I think as we have started looking into it, where the Department of Defense is focused on. And of course, with the help of our advisory board that just has come on -- I mean, they just come online, right? We're just starting the engagement and most of them are not even fully familiar with our product portfolio yet. But they're getting us aligned with what the demand is. And one of the things that we will talk about next week and continue to talk about is things that we were doing in the automotive space with perception and sensor fusion can also be expanded to drones with some other mission that are in mind that the -- that our potential customer, which is Department of Defense and other smaller departments are evaluating. And they have engagements for that. So it was something that was natural to us that we could become part of that. And in this environment, where automotive is kind of like dormant or nearly dormant, but expected to come on in the future. Industrial is moving along. But again, it's at a pace that, of course, we'd like to want to go fast, but we have to wait patiently for engagements to get to the right level. This was an opportunity that came along. So it was important for us to get into it. Casey Ryan And how many primes should we think about you working with? Is there one significant prime or do you have one now and you guys are open to working with multiple or are there multiple now that you guys are engaged with? Sumit Sharma What I -- from the amount of work that we've done on this so far, there are multiple primes. We can think about primes differently. I think in the past, when we talked about primes, we were talking about Lockheed or Northrop Grumman. Those are different programs. Now the primes are a lot of newer technology companies that are names that are new to the military space as a prime, and they have a different DNA. So much faster engagement and getting through, I would say, more in line with tech companies, other tech companies, but they are -- they address revenues less than $10 billion, less than $1 billion sometimes, right? So -- and there's multiple of them actually, not just one. Casey Ryan Okay. All right. That's helpful. And then sort of last thing for me. I think you mentioned that you guys have expanded your capacity again. And I think over the last 12 months, maybe the second time you've done that. And so I suppose we're looking sort of compared to the revenue. But tell me why you're doing that. It sounds like your customers are asking you to ramp up. Sumit Sharma We haven't expanded the capacity. What I think we're saying is that we expect to expand capacity later on this year based on agreements that we are able to get done. I think what capacity we have with ZF right now is perfectly adequate and sufficient, but we expect that if some agreements go a certain way we are going to expand our capacity. Casey Ryan Okay. That's helpful. I suppose one nuance on that is sort of you talked about the $30 million to $50 million. If you do need to expand capacity, would it be fair to think that somehow we're sort of at $50 million or above that sort of part of that opportunity? Anubhav Verma Yes. Yes. So I do think that, yes, if we end up expanding our capacity, we would hit the upper bound of that range, possibly beyond that. Casey Ryan Good. That's something to look forward then. Anubhav Verma Well, update. So thanks you for taking my questions. Operator Jesse Sobelson, D. Boral Capital. Jesse Sobelson Hey, guys. thanks for update here, thank you for taking my qauedtion. It's good to see some progress on expanding the addressable markets. The first question I had was just on this defense piece of the business. Are you guys looking at strategic alliances that could potentially lead to equity investment or are you currently solely focused on commercial arrangements? Anubhav Verma We're primarily focused on commercial arrangements right now. Jesse Sobelson Yeah. Helpful to understand a little bit of detail there. I'm also just kind of curious -- we talked $30 million to $50 million in potential next 12 to 18 months. That's been reiterated here in the Q&A so far. But I am kind of curious, DoD seems to be a little bit more of a focus this quarter than it was in the past when that $30 million to $50 million number was initially presented. Piggybacking off of that conversation on capacity is defense work included in this potential $30 million to $50 million loose figure or is it something that's incremental to current expectations for the business? Anubhav Verma Yeah, I think that's a great question, Jesse. No, look, I think the $30 million to $50 million, we believe, is primarily driven from the industrial vertical. For the defense vertical, it's still early days. But I think as Sumit pointed out, we're working to formulate our strategy and have more clarity in the upcoming events where we could provide and upgrade our revenue targets based on quantifying what kind of projects we're going to take part in through these partnerships like Sumit described. And I think one thing I would like to also highlight is obviously, MicroVision does have an existing intellectual property portfolio related to the AR piece that we have. And obviously, we're, at this point, looking at all possible options as to how we can partner with other bigger players to accelerate their deployment and go-to-market as well. So that could result in monetization of that through different structures. But like I said, at this point, early days, and we would have more clarity on the revenue targets for this in the upcoming events. Jesse Sobelson Right. So it sounds like you're open to things such as co-development agreements and potential technology licensing in addition to manufacturing products to be used in end market equipment. Is that fair to say? Anubhav Verma Right. So I think mostly the way the defense contracts will be expected to work through the partnership structure that I described would be typically in the form of ED&T revenue, which is engineering, design and testing revenue, which is essentially the work or if I could draw an analogy for you, that's an NRE equivalent to what we have been talking about in the automotive world, where the government entities, if we are directly engaged with the government or the prime, as Sumit described, they would pay for the project where we are developing this. Keep in mind we already have the building blocks of the technology. So it's really just putting together the solution like the drone solution that Sumit mentioned, et cetera. But what it essentially translates into is the ED&T revenue that would start flowing through the system, and that's what I plan to update the numbers with once we have more clarity and more visibility into this sector. Jesse Sobelson Appreciate the call here and IIt sounds like it's a little bit of a wait-and-see approach for the time being, but excited to see what happens here. Operator I will now turn this call back over to Anubhav Verma, to read questions submitted through the webcast. Thank you. Anubhav Verma Thank you, operator. All right. The first question, if we have the best-in-class sensor with the lowest price point, why are we not winning these industrial RFQ's? Sumit Sharma That's a good question. Actually, I think this is a reaction to some of the announcements that are coming from our other -- our competitors. I can tell you that we are engaged with multiple customers that are evaluating. One of the challenges that always happens in here is now that you have software, now they have hardware. I think like our investors, but also a lot of people just think about us as a LiDAR company. When you think about automotive, you just have to put a LiDAR with a point cloud. So in that sense, it's a LiDAR company. And there's a bunch of us competing in that space. In the industrial space, it is LiDAR plus the perception software on board. So there's integration, there's validation. There's, I would say, 90% of all the discussions that we've been part of for the last eight months with a group of customers. It's all about what the software does and how the software will connect to their software and how the qualification is going to happen, actually more than eight months. So if you think about the evaluation part of it, it's not the hardware anymore. It is really how the software solves a specific problem for them. I get it. I think investors are frustrated, but I can assure you nobody is more frustrated than I am about this. But it takes whatever time it takes, but I don't think it's going to take forever. I think things will converge sometime soon. So you have to think about it, right? Yeah, you can have the best price point, but you also have to find an opportunity that you can actually sign a business that's profitable. And I'll give you a great example. Recently of more than one, less than 10 customers, there was one that we actually lost. But it was a small project. It was less than, I would say, 500 sensors is what they wanted. But what was the requirement for us to win that was to absorb something like almost $1 million worth of development. And so pretty much at that point, yes, you can say we can get an announcement done, but it is not a sustainable model where you're actually burning through cash to win these things to just get the share price up. So long-term, it was not the smartest thing to take care of. But we are getting closer to the point for the right customer, for the right volume. It is time for us to push our chips in and actually take a risk for the right customer for the right volume, and we're getting closer to that. And again, you want not just one customer, you want multiple of them. So you have to reserve your capital based on who's the one that you want to make a bet behind. That's going to be advantageous long-term. And that could actually turn into a sustainable business because there will be others that will come on faster. So that's how we focus ourselves. I get this thing, the best-in-class sensor. But what's best-in-class for MOVIA L? It's in production. It's very robust, solid state. MOVIA S, it's -- I think we're going to talk about that in Q3 this year when we're going to announce it publicly. But it's a 180-degree sensor, whereas you have our competition from China and the US. talking about they're making a 180-degree sensor. But if you know anything about physics, you'll know that their sensor, there's no way you can achieve 180 degrees because it's not -- they're just showing some rendering or we actually have samples that we will show next week, mechanical samples of what we expect out of that. So yeah, having a great sensor is the building block that is important. Now comes the software for industrial that how can we actually enable them with a, let's say, some of the ADAS features that were developed by our team in Hamburg a long time ago and deploy that into industrial. So it's going to take some time, but I don't think it's going to take a very long time to get to some conclusion here. Anubhav Verma Thank you, Sumit. Of the prospective industrial customers that engage with MicroVision, how many are no longer involved? Have you lost some programs in your pipeline? Why? I guess you partly answered that. So maybe let me skip to the next one. How do you plan to compete with the existing players like Ouster and SIC in the industrial vertical? Sumit Sharma That's a good question. The two ways that we're going to compete is, number one, we're going to sell our sensor with software on board. And since we have spent a lot of capital already developing this, and the same software is going to go across multiple customers as a standard, we're going to offer these features on there. So no more customers have to worry about custom NREs or some features because the core development is all actually MicroVision's assets. So that's important because what they're getting is not just a sensor that would require a software team from us or from them to integrate, but they get a full-blown solution. So we have to start engaging with industrial customers that are kind of focused on that, not just a LiDAR, but they want a solution. The other one is economy of scales. We have to start hitting price points that are significantly lower than any of the competition, and that means we have to aggregate a lot of volume. We have to be competitive there. I think other LiDAR companies are public as well. You know their ASP. And the clear indication from everybody is that those ASPs are not sustainable. I think in the safety sensor space, SIC has got a very unique position. They have deployed that for many, many years. And ultimately, when we described our safety sensor last year, eventually, our intention is to go after that market as well. But at the moment, we want to just focus on the non-safety industrial market with the software. I'm pretty sure that we can take on Ouster and I don't think there's any doubt that we have a better product. I think the spinners are the spinners, they may have some sort of reliability, but ultimately, they're mechanical sensors, right? And SIC is a mechanical sensor. But in limited life applications, perhaps they're okay. But if you want something robust, that has to go for a long period of time, I think the solid-state sensor would be very competitive. And even MAVIN, as we start transitioning it towards while automotive is doing its own thing, finding applications for it in commercial vehicle or military or agriculture mining, I think the robustness of the technology, we just have to make competitive, sign smart deals. So we're not starting off in the hole by financing somebody else's development. I think long-term, we're going to be okay and be very competitive and probably more profitable because our expenses are going to be low and our profit margins per project are going to be much more compelling, in my opinion. Glen, would you like to add some color on this? I think you've been on board and you've had a chance to look at this as well. Glen Devos Yeah. Thanks, Sumit. Appreciate the opportunity. And I think to build on your comments, one, the sensor being a solid-state sensor not only does it have greater reliability and other sensing modalities we got away from electromechanical sensors for just that reason as well as, as you scale, having a solid-state solution gives you better positioning relative to reducing hardware costs while you scale. Basically it's a silicon solution, and it really allows you to achieve lower hardware costs than simply scaling up electromechanical solutions. So I think that's an important part of it. But as you said, it's not just a LiDAR sensor that delivers a point cloud. It has a significant amount of processing capability on board. And why that's important? It means that we can provide not just the point cloud, but we can provide perception, localization as well as the LCAS or the driver assistance feature sets and do that in a way that's essentially a bolt-on solution to the vehicle. So whether it's a forklift or a tugger or some other type of vehicle, you don't have to cut into the vehicle or disturb the vehicle architecture. You can simply bolt this solution on. And that's tremendous -- from an ease of implementation standpoint, that's very good. You don't have to add another ECU. So for a system cost standpoint, it's very good. And then ultimately, from a TAM perspective, it's great because it means it opens up existing vehicles to your solution where you can essentially retrofit, all of which means time to revenue is reduced. So I think our -- the solution that we have with a smart sensor going into industrial will be very competitive and very compelling for the OEMs. Anubhav, I'll turn it back over to you. Anubhav Verma Thanks, Glen. Let me take the next question. What are the 2025 milestones that shareholders should track in each market, including industrial, defense and automotive, design wins, custom development agreements, partnership agreements, ideas? Sumit Sharma Yeah. I think in industrial space, I think it's all about taking our sensors that we've talked about and signing commercial deals. Certainly, we make as many sales as possible of the less than 50, let's call them spot sales. I think that's how we refer to them always. But our focus, of course, is to finding a group of anchor customers that essentially take up all the capacity that we have deployed already. That's primarily the way you can gauge that industrial market is moving along. So you should be able to announce deals, then you'll start seeing backlogs and revenues and normal business on the MOVIA L. On MOVIA S, I think we're going to announce it publicly and there's -- again, engagement will start. Pilot plan will be sometime next year and then some sort of ramp, but we expect to start engaging some customers with that technology, but it's not something that's going to have a material impact on the revenues that Anubhav talked about. On the defense side, I think the best way to imagine is, again, we're going to be a subcontractor to a prime. There will be most likely, as Anubhav has already mentioned, we would engage in some sort of customized development with some partial funding from them while we still maintain all the IP or exploration of our existing portfolio of technologies that we have shipped in the past and some sort of development agreements of what they want to see because anybody that wants to work deeply with the technology that's new to them, they always do a small project together to understand the team, understand the technology and the viability before they jump to the next one. So defense would be that. And longer term, I think the opportunity in defense is there are smaller contracts, I'm saying sub-$500 million, maybe sub-$200 million contracts where maybe a pilot program of maybe several hundred units or something has to be built or several -- several hundred units have to be built, and you're part of those contracts where you have to deliver an integrated piece of hardware and software that kind of plugs into some device. So that's much more intimate. So the best way to engage in defense would be that. In automotive, I think -- I'm going to have Glen actually comment on this. But in automotive, the best way to think about it is some sort of development agreement or early advanced prototyping for a future program that's coming or an RFQ that again will roll on for about a year before they'll award it. So that's about all we can do. But I don't expect meaningful revenues coming from it, but certainly some sort of partnership announcements for much smaller size opportunities. Glen Devos Yeah, I can add to that last comment, Sumit. The -- I think you -- the OEMs and talking to them as recently as last week, the OEMs are going through a bit of a reformulation on Level 3. And the good news is all Level 3 platforms still need LiDAR. So there's no change in approach in that regard. But really, the first generation had limited success, very low volumes and take rates. And so now there's a bit of a kind of a refocusing on, well, what is that right solution. And I think predevelopment contracts are normally how the next step in that environment where they test out and showcase what the solution could look like and validate cost models as well as performance models and really trying to get to a value prop that the end consumer will buy. And what's exciting for us is in those discussions, and like I mentioned, as recently as last week, we have the portfolio that between long range as well as short range, wide field of view, extended range field of view, we have the portfolio that can really, I think, deliver a solution for them. So you probably have seen in the predevelopment contract prior to any big production contracts, but that's exactly where we are today. Anubhav Verma Thank you, Glen. All right. Next question. Given that MicroVision is engaged in seven automotive RFQs and the typical timeline suggests OEMs might be making decisions for model year 2028 programs around this time, can you provide any update on the status of these engagements and whether there has been any significant progress or indications of timelines accelerating or solidifying during the first quarter this year? Sumit Sharma Glen, do you want to take that since you have the most contact with the OEMs now? Glen Devos Yeah. I think timing-wise, that's certainly the target is to be able to have solutions implemented in the model year or during calendar year '28. That, generally speaking, is the timing that we've been talking about. And so what that means is if you think about it, it's already virtually midyear '25. That means you have to have solutions that are fairly mature and ready to go. And as I mentioned earlier, that's what's exciting about where we are in terms of the portfolio offering that we have, the software maturity that we have and the different solutions that we can provide. And I would say those are active discussions right now. Once the OEMs kind of settle in on the technical solution, then it can move very quickly. Model year '28, it would -- is still aggressive, but it's still feasible if the OEMs move quickly over the next -- really over the next, I would say, three months or so. Anubhav Verma Thank you, Glen. All right. Next question is defense related. Why will MicroVision successfully secure business in the defense industry after years of unsuccess in the automotive and industrial markets? Glen Devos Yeah. Maybe I'll just start and then turn it back over to you. A couple of things to highlight. One, these are very different markets. And if you think about automotive, there's really one application for LiDAR at this point in time. It's really Level 3 driver assistance and maybe some Level 2 functions, but it's really around ADAS. When you look at the defense industry, there's multiple avenues for the application of the technology. There's drones, there's the unmanned autonomous vehicles. There's also AR headsets, there's terrain mapping. So you have multiple areas where the technology is either being applied today in a very limited fashion or the defense industry is looking for solutions in a very aggressive fashion. So you have a much greater number of opportunities to apply our portfolio. And what's also really good is it's the same technology that we would be applying, broadly speaking, to automotive or to industrial. It is in a whole different field from a technology standpoint for MicroVision. It's really applying those assets that we have effectively across those other verticals. Sumit, I'll turn it back to you. Sumit Sharma Yeah. I think part of the question is like why after years of unsuccess in automotive and industrial, I think I get the frustration, but let's always focus on the reality of it. Let me be honest about this. Last year, we were deep into it with Daimler, as most of you know. And at that point, we chose to stop at a certain point because going forward, what it meant more than $20 million of OpEx with them not covering anything when the economy was going in the wrong direction. And it was clear from all the indication that the OEMs by themselves were struggling with the long-term timelines to deliver what they had said, okay? I would argue that if we had actually done that deal, we're not here right now. We would have been in a much worse position in my opinion. And the example of that -- in that example, really, if you look at what happened with -- I'm pretty sure investors want us to sign a deal, but we also have to evaluate because some of those investors wants trade on [their] information and move on to the next thing. But we really have to support the thesis that the company is going to be around to finish these contracts. That's a very important one. And Daimler, for example, was not the right one for us, right? It was not big enough. And I will tell you that the technical review and acceptance happened the year before in 2023. And I would say Anubhav and I actually were going to these meetings four months into it, four to five months into it, trying to convince them our balance sheet was going to be okay that the ATM was a medium that was going to allow us to raise and they wanted more capital because they wanted to make sure that if the ATM was not going to be exercised, their project would not be in trouble and they will have to come in and fund it. If you think about all of this, right, I mean, those kind of projects, so you can say I was unsuccessful in automotive. I wouldn't say that. It's just you want to get a deal done, but it's worth to get a bad deal done that's going to cause you to fail. So yeah, I expect you guys to come in next week and have some very, very direct questions. You're going to get direct answers with me as always. But just think in this terms. At some point, the company has to survive. It's not just about to announce something and trade on it and move on. And if you have a customer that's really giving you an indication that they're not so certain about their timeline, but they expect to put all your money in and all your investors to come along with it, you got to really evaluate, right? So automotive has just been tough. Industrial market is just going -- I mean, I would say it's going really, really well. I think we have -- we started the acquisition of Ibeo happened, all the asset transfer took a while. Production started late in 2023, in 2024. We did some work, which is any time you go into industrial space, you expect somewhere between 12 to 24 months for adoption. We got the samples out. It's a very mature product. We started working on software, as I said, for the last nine months or more rather than hardware. So it's moving along. So I would not say that industrial has not been demonstrated. I know everybody -- in every earnings call, they want something announced that we can go forward, and we have tried to navigate. But now we're to the point where we have the group of target customers and it's time for us to push our chips in and take a risk with the customers that are high enough volume, and they're trustworthy because the things that they're saying they understand and acknowledge who we are. They see the balance sheet. They see the strength of it, and they see that we can solve their problem right now without any investment from them. So I think like keep that in context, right? I think -- so I think what Glen is representing is the future where we're going to take it, things that we cannot imagine as MicroVision by itself, where the product is going to go. I'm happy to answer all the questions about the past about automotive and industrial. Certainly, whatever frustration investors have, we can cover that. But I think the opportunity that we have, if we sort of break it out, the defense is not something we just entered into because it was kind of cool. We were given some indications that it was kind of important for us to be in this space because it's opening up. And we have the opportunity with no extra expenses to go address that of things that we've already created. So certainly, we're expanding rather than just going towards the success. And I think in defense, we've done it in the past. We've had success there with multiple projects, multiple announcements. So defense is probably something that we're more confident on. And with Glen's help, of course, we can expand where we can be relevant in defense, specifically in drones and other military vehicles and, of course, AR. Anubhav Verma Thanks, Sumit. Next question. Would you say we are a LiDAR company or have we fully morphed into an autonomous systems company? And if we're now more of a systems company, how has that retooled our approach to securing these new opportunities mentioned, specifically industrial and defense? Sumit Sharma I think that's a really good question. If you think about the three segments, I'll start on one end, high-volume automotive, they will think of us as a LiDAR company for now that provides a clean point cloud and some software support. But really, they want to be the software company and they go develop. So we're just a LiDAR company there. A lot of our competition is in that space as well. In industrial, we have already graduated to the next level where we are going to be -- we are shipping product and eventually, we expect to ship it in volume with software integrated on it. So the LiDAR is no longer LiDAR. It is an actual LiDAR solution, software that does something specific. Terms that we talk about like automotive ADAS, think about industrial ADAS. Those kind of features are enabled in this space for our customers. So therefore, they don't have to have huge investments in software development. They get a solution. They plug it and that solve a specific problem for them. When you think about the industrial space, now we are again, with much lower volume, margins. But now we're integrating our LiDAR, radar, other things that Glen will, of course, talk about as we move forward. And significant more amount of software, but it's a full-blown solution that you could strap this thing on to a drone or strap this thing on to a military vehicle, and it could do autonomous [radars]. So we have, in my opinion, broadened through all three segments. In each segment, we are offering higher and higher value proposition. So we are transitioning towards more of a software solutions company based on our hardware from LiDAR, but also the capability of integrating other hardware from radar and other technologies into a few system that we can provide to the military and to industry. So I think our differentiation is naturally happening because the strength of our team in developing software is going to be highlighted more and more. We're going to talk about partnerships that we are enabling. It's not just because of our LiDAR and competitive price. It's our LiDAR competitive price and the software what it enables for folks. Glen, do you want to add something to this? Glen Devos I think you really said it well, Sumit. And depending on the end market, we have the right solution. We're a high-performance LiDAR sensor for the automotive space. And on the other extreme, where we can provide the complete not just the LiDAR perception, but multimodal perception, the full localization and environmental mapping as well as features on top. And it's -- what's really impressive is that we have those assets across the entire company. And so we can -- we're not having to develop that from ground up. We're really just having to integrate and apply it. And so I'm really excited about what we'll be able to do across all of those verticals with the technology that we have. Anubhav Verma Thanks, Glen. Next question. Why is MicroVision asking for more shares? Why are you asking for more shares when approved shares before with the promise that it was needed to show OEMs we had financial stability, but we never got deals. Why should investors vote to approve another 200 million more shares when no meaningful deals have been announced in the last four years? Sumit Sharma Yeah, I'll start with that, and Anubhav, perhaps you can help me on this one. So I think there are certain tools that the company needs to be able to work with our partners. And as I've said multiple times, and this is not the first earnings call I shared this, that the concern that obviously is coming up is the long-term viability of the company. Now if you go back to my prepared remarks, right, I tried to highlight that in there to give context, our competition, they raised a significant more capital because they went public with the de-SPAC. All along the way, we've been just raising as little as possible as we go forward. So I know like the investors would love to hear like how are we being competitive, but capital matters because most of the customers, especially in the automotive, they expect you to invest $20 million, $25 million of your money while they have zero risk to get to some level of production and then have all the risk on top of that. So if you don't have the cash on hand, like some of our competition did, it has always been hard for us to convince them that we have viability that we have the support, that we have an anchor customer. And since our investor base is so diverse, it's really hard for us to point that, yeah, we have an investor that can actually come in and support us and somebody with a high reputation. I think Anubhav has done a great job to like try to get us to that point. We started with UBS. That did not happen. Deutsche Bank has been helping us a lot. And now if you think about High Trail, I think we've done everything humanly possible to give them the confidence that we have anchor customer -- anchor investors that can step in at the right moment for any kind of deal because to get the deal done, it's not about technology, I can assure you that. It would be very hard for me to attract somebody like Glen to the company if it was like a big gap in technology or what magical things that can be built on top of what we already have. I think our problem has always been that they have to have a high confidence the company is going to survive for a period of time to execute on these and be able to expand the revenue base faster than other LiDAR companies. So to support that, the company needs certain tools. I think management is with a very close counsel with our Board of Directors, we've come up with what we believe is what we need as tools to go forward. Anubhav Verma Yeah. And I think, Sumit, to add to the point, obviously, 200 million more shares doesn't mean that we're going to use those shares right away. It's more of an optics as well because when you are competing in defense contracts and big contracts, people would like to see the authorized capital, the number of outstanding shares as a percentage of your authorized capital to be some significant numbers. And I think we believe that $200 million would get us there. But I think I would just like to summarize four things that why now $200 million, right? I'd like to point out for the last seven, eight months, look at our consistently heavy trading volume. What that signifies is the visibility of MicroVision on not just retail, but institutional radar screens. That sort of depicts the momentum that we already have generated, which is the most significant momentum that this company has ever seen in its recent history. Number two, in the last seven months, we had a $90 million investment commitment from one single investor. And I think you can count on fingers how many other companies have been able to do that. Number three, the quality of people who have joined MicroVision's executive team as well as the Defense Advisory Board, that tells you that this is the time when people are looking to go all chips in and believe in the future of the company. That itself is very significant of why the 200 million shares would get us to the stature of competing with the big boys. And I think the last thing is what I would say is this is more of an optics, which is a direct corollary of the first -- or the first three factors is what I can just say is the Investor Day event, we had to double our capacity since two years event -- since two years ago. That shows the interest of people interested in MicroVision. And that's just retail. We have the second half of the day, lined up with quality financial institutions joining us to know more about MicroVision. So that highlights the visibility that MicroVision has generated and the momentum that we have seen in the past 12 to 15 months, which is incredibly positive. And obviously, given the geopolitics that we are seeing usher in across the globe. So that's why I feel more confident and why this 200 million share authorization would get us in that lead. We're running out of time. So maybe one last question. Sumit, what to expect on the Investor Day next week? Sumit Sharma I think it's kind of important that I think CES has not been really that super expensive, and it's not really been easy for us to connect with our investors and analysts. So we decided that we're going to actually host it here annually about the same time. And it's, again, a great opportunity for us to show all the stuff we spend money, what we have created and what customers are going to align to. So without talking directly about any specific customers we've not announced, you can get a really good idea of where our technology is going to be deployed and ask specific questions, so you get confidence in the product portfolio. We certainly are also going to talk about our future plans with all our products. Again, given the context that Anubhav has said that we're not expecting our cash expenses to increase, we're going to run it tight. It will be a good opportunity to really understand how we're going to manage that and still create value. And of course, longer term, I think we get a lot of questions from our investors all the time. And to be honest, right, even on our earnings call, it's very hard to address them because sometimes they're kind of out of context. They're more conversational. So our intention is to have a session like we did last time where ask us anything and if we can answer it in a public forum that we've covered in the previous earnings call, we will absolutely do it. And so we're going to have a more direct dialogue so you have a clear understanding of what we're facing and where we're headed with it. So look forward to meeting you all again next week. Anubhav Verma Thank you, Sumit. With this, I would like to wrap our first quarter earnings call. Thank you again, everybody, for joining us. We look forward to seeing you next week. Operator Thank you. This concludes today's conference. All parties may disconnect, and have a great day.
Yahoo
12-05-2025
- Business
- Yahoo
MicroVision Announces First Quarter 2025 Results
REDMOND, WA / / May 12, 2025 / MicroVision, Inc. (NASDAQ:MVIS), a technology pioneer delivering advanced perception solutions in autonomy and mobility, today announced its first quarter 2025 results. Key Business Highlights Established defense industry advisory board to accelerate strategic expansion and pursuit of revenue opportunities in the defense tech and military sectors. Elevated momentum toward near-term revenue opportunities from multiple leading industrial companies in the autonomous mobile robot (AMR) and automated guided vehicle (AGV) sector. Deepened executive leadership expertise, onboarding Glen DeVos, former CTO of Aptiv, as MicroVision's Chief Technology Officer, leading the Company's innovative product roadmapping and enhanced go-to-market strategy. Continued engagement with top-tier global automotive OEMs, with seven high-volume RFQs for passenger vehicles and custom development opportunities. Ramped production to meet anticipated volume demand, ensuring continuous and uninterrupted supply of sensors and integrated software. Maintained fiscal discipline following 2024 streamlining of cost structure, resulting in another quarter of sequential improvement in cash burn. Raised $8 million in the first quarter of 2025 through an equity sale, building upon the $75 million convertible note facility with an institutional investor in Q4 2024. "MicroVision is well positioned to secure revenue opportunities for 2025 from the industrial vertical," said Sumit Sharma, MicroVision's Chief Executive Officer. "Our unique value proposition continues to be our integrated perception software. We offer compelling solutions to industrial customers and automotive OEMs at attractive price points." "The recent capital raises have positioned MicroVision well in the marketplace with an improved cost structure to support customer demand. In addition, our production commitment with ZF enables us to commit to high-volume deliveries to fulfil demand in the range of $30-$50 million over the next 12-18 months," said Anubhav Verma, MicroVision's Chief Financial Officer. Key Financial Highlights for Q1 2025 Revenue for the first quarter of 2025 was $0.6 million, compared to $1.0 million for the first quarter of 2024 driven by demand primarily from industrial customers. Total operating expenses for the first quarter of 2025 were $14.1 million, representing a 47% decline YoY as compared to $26.4 million for the first quarter of 2024. Net loss for the first quarter of 2025 was $28.8 million, or $0.12 per share, which includes $16.9 million of non-cash charges including $4.7 million of non-cash charges on debt extinguishment, $2.6 million of non-cash unrealized gains on warrants and derivatives, $12.9 million of non-cash interest expense related to the financings, $1.9 million of non-cash share-based compensation expense, compared to a net loss of $26.3 million, or $0.13 per share, which includes $3.7 million of non-cash share-based compensation expense, for the first quarter of 2024. Adjusted EBITDA for the first quarter of 2025 was a $10.7 million loss, compared to a $18.7 million loss for the first quarter of 2024. Cash used in operations in the first quarter of 2025 was $14.1 million, compared to cash used in operations in the first quarter of 2024 of $20.8 million. The Company ended the first quarter of 2025 with $69.0 million in cash and cash equivalents, including investment securities, compared to $74.7 million as of December 31, 2024. As of March 31, 2025, the Company has access to $143.4 million of capital, subject to certain conditions, including $113.4 million under its existing ATM, or at-the-market, facility and $30 million from the remaining commitment pursuant to the convertible note facility. Conference Call and Webcast: Q1 2025 Results MicroVision will host a conference call and webcast, consisting of prepared remarks by management, a slide presentation, and a question-and-answer session at 1:30 PM PT/4:30 PM ET on Monday, May 12, 2025 to discuss the financial results and provide a business update. Analysts and investors may pose questions to management during the live webcast on May 12, 2025 and may submit questions HERE in advance of the conference call. The live webcast can be accessed on the Company's Investor Relations website under the Events tab HERE. The webcast will be archived on the website for future viewing. Upcoming MicroVision Retail Investor Day on May 20, 2025 MicroVision's Retail Investor Day in Redmond, Washington on Tuesday, May 20, 2025. At MicroVision Retail Investor Day, shareholders will have the opportunity to meet and ask questions of the Company's executive team, including new Chief Technology Officer Glen DeVos. Executives will discuss advancements in MicroVision's product portfolio, expansion of the Company's business strategy, and emerging market opportunities. Space is limited. Click HERE to request an invitation to attend in person in Redmond, Washington. Video highlights from the MicroVision Retail Investor Day will be available HERE within a week after the event. Information communicated in the Town Hall and interactive lunch will be information that MicroVision has publicly reported. Agenda in Redmond, Washington on Tuesday, May 20, 2025: 9:00 AM to 10:30 AM PT: Ride-along demo vehicle will tour local streets and highways, plus live interactive product demonstrations. 10:30 to 12:00 PM PT: Town Hall including management remarks and presentation. 12:00 PM to 1:00 PM PT: Interactive lunch. About MicroVision MicroVision drives global adoption of innovative perception solutions to make mobility and autonomy safer. Fueled by engineering excellence in Redmond, Washington and Hamburg, Germany, MicroVision develops and supplies an integrated solution built on its perception software stack, incorporating application software and processing data from differentiated sensor systems. MicroVision's proprietary technology solutions deliver enhanced safety for a variety of industrial applications, including robotics, automated warehouse, and agriculture, and the automotive industry accelerating advanced driver-assistance systems (ADAS) and autonomous driving, as well as for military applications. With deep roots in MEMS-based laser beam scanning technology that integrates MEMS, lasers, optics, hardware, algorithms and machine learning software, MicroVision has the expertise to deliver safe mobility at the speed of life. For more information, visit the Company's website at on Facebook at and LinkedIn at MicroVision, MAVIN, MOSAIK, and MOVIA are trademarks of MicroVision, Inc. in the United States and other countries. All other trademarks are the properties of their respective owners. Non-GAAP information To supplement MicroVision's condensed financial statements presented in accordance with GAAP, the Company presents investors with the non-GAAP financial measures "adjusted EBITDA" and "adjusted Gross Profit." Adjusted EBITDA consists of GAAP net income (loss) excluding the impact of the following: interest income and interest expense; income tax expense; depreciation and amortization; non-cash gains and losses; share-based compensation; and restructuring costs. Adjusted Gross Profit is calculated as GAAP gross profit before share-based compensation expense and the amortization of acquired intangibles included in cost of revenue. MicroVision believes that the presentation of adjusted EBITDA and adjusted Gross Profit provides important supplemental information to management and investors regarding financial and business trends, provides consistency and comparability with MicroVision's past financial reports, and facilitates comparisons with other companies in the Company's industry, many of which use similar non-GAAP financial measures to supplement their GAAP results. Internally, management uses these non-GAAP measures when evaluating operating performance because the exclusion of the items described above provides an additional useful measure of the Company's operating results and facilitates comparisons of the Company's core operating performance against prior periods and its business objectives. Externally, the Company believes that adjusted EBITDA and adjusted Gross Profit are useful to investors in their assessment of MicroVision's operating performance and the valuation of the Company. Adjusted EBITDA and adjusted Gross Profit are not calculated in accordance with GAAP, and should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect all of the costs associated with the operations of MicroVision's business as determined in accordance with GAAP. The Company expects to continue to incur expenses similar to the non-GAAP adjustments described above, and exclusion of these items from its non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. The Company compensates for limitations of the adjusted EBITDA measure by prominently disclosing GAAP net income (loss), which the Company believes is the most directly comparable GAAP measure, and providing investors with a reconciliation from GAAP net income (loss) to adjusted EBITDA. Similarly for adjusted Gross Profit, the Company compensates for limitations of the measure by prominently disclosing GAAP gross profit which is the difference between Revenue and Cost of revenue, which the Company believes is the most directly comparable GAAP measure, and providing investors with a reconciliation by backing out share-based compensation expense and the amortization of acquired intangibles included in cost of revenue. Forward-Looking Statements Certain statements contained in this release, including customer engagement and the likelihood of success; opportunities for revenue and cash; expense reduction; market position; product portfolio; product and manufacturing capabilities; access to capital and capital-raising opportunities; and expected revenue, expenses and cash usage are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include the risk its ability to operate with limited cash or to raise additional capital when needed; market acceptance of its technologies and products or for products incorporating its technologies; the failure of its commercial partners to perform as expected under its agreements; its financial and technical resources relative to those of its competitors; its ability to keep up with rapid technological change; government regulation of its technologies; its ability to enforce its intellectual property rights and protect its proprietary technologies; the ability to obtain customers and develop partnership opportunities; the timing of commercial product launches and delays in product development; the ability to achieve key technical milestones in key products; dependence on third parties to develop, manufacture, sell and market its products; potential product liability claims; its ability to maintain its listing on The Nasdaq Stock Market, and other risk factors identified from time to time in the Company's SEC reports, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed with the SEC. These factors are not intended to represent a complete list of the general or specific factors that may affect the Company. It should be recognized that other factors, including general economic factors and business strategies, may be significant, now or in the future, and the factors set forth in this release may affect the Company to a greater extent than indicated. Except as expressly required by federal securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changes in circumstances or any other reason. Investor Relations Contact Jeff ChristensenDarrow Associates Investor RelationsMVIS@ Media Contact Marketing@ SOURCE: MicroVision, Inc View the original press release on ACCESS Newswire Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
