Microvision (MVIS) risk factors, FY2024 10-K

Other

1. 01We have had substantial losses since our inception. We cannot assure you that we will ever become or remain profitable

Risks Related to our Financial Statements and Results

1. 02Our revenue is generated from a small number of customers, and as we have experienced recently and in the past, losing a significant customer negatively impacts our revenue
2. 03We have, in the past, identified a material weakness in our internal controls
3. 04Our stock price has fluctuated in the past, has recently been volatile and may be volatile in the future, and as a result, investors in our common stock could incur substantial losses
4. 05If we are unable to maintain our listing on The Nasdaq Global Market, it could become more difficult to sell our stock in the public market
5. 06Our lack of significant financial resources may limit our revenues, potential profits, overall market share, or value

Risks Related to Fundraising Transactions and the Convertible Note

1. 07Our stockholders will experience further dilution if we issue additional equity securities in future fundraising transactions
2. 08Sales of shares of our common stock by the holder of the October 2024 convertible note may cause our stock price to decline
3. 09We do not currently intend to pay dividends on our common stock, and any return to investors is expected to come, if at all, only from potential increases in the price of our common stock
4. 10There are risks associated with our outstanding convertible note, and any additional convertible notes that may be issued under the October 2024 securities purchase agreement, that could adversely affect our business and financial condition
5. 11There can be no assurance that we will be able to manage any of these risks successfully

Risks Related to Our Operations

1. 12Difficulty in qualifying a contract manufacturer, Tier 1 partner, or foundry for our products, or experiencing challenges in our supply chain, could cause delays that may result in lost future revenues and damaged customer relationships
2. 13Historically, we have been dependent on third parties to develop, manufacture, sell and market products incorporating our technology
3. 14We could face lawsuits related to our use of LBS technology or other technologies, which would be costly, and any adverse outcome could limit our ability to commercialize our technologies or products
4. 15If we fail to manage expansion effectively, our revenue and expenses could be adversely affected
5. 16We target customers that are large companies with substantial negotiating power and potentially competitive internal solutions; if we are unable to sell our products to these customers, our prospects will be adversely affected
6. 17Our technology and products may be subject to environmental, health and safety regulations that could increase our development and production costs
7. 18Our operating results may be adversely impacted by worldwide political and economic uncertainties and specific conditions in the markets we address
8. 19Because a significant proportion of our company is outside of the U.S. and we utilize foreign suppliers and manufacturers, our operating results could be harmed by economic, political, regulatory and other factors in foreign countries
9. 20We have recently made and may in the future make acquisitions. If we fail to successfully select, execute or integrate our acquisitions, then our business, results of operations and financial condition could be materially adversely affected
10. 21Our suppliers’ or manufacturing partners’ facilities could be damaged or disrupted by a natural disaster or labor strike, either of which would materially affect our financial position, results of operations and cash flows
11. 22If we are unable to obtain effective intellectual property protection for our products, processes and technologies, we may be unable to compete with other companies
12. 23We could be subject to significant product liability claims that could be time consuming and costly, divert management attention and adversely affect our ability to obtain and maintain insurance coverage
13. 24Our operations could be adversely impacted by information technology system failures, network disruptions, or cybersecurity incidents
14. 25Loss of any of our key personnel or inability to attract new personnel could have a negative effect on the operation of our business

Risks Related to Development for the Industrial and Automotive Markets

1. 26Adverse conditions in particular industrial sectors, the automotive industry, or the global economy more generally could have adverse effects on our results of operations
2. 27Developments in alternative technology may adversely affect the demand for our lidar technology
3. 28ADAS features may be delayed in adoption by OEMs, which would negatively impact our long-term business prospects
4. 29Because the lidar and ADAS markets are rapidly evolving, it is difficult to forecast customer adoption rates, demand, and selling prices for our products and solutions
5. 30Because perception solutions involving lidar are new in the markets we are seeking to enter, our market forecasts may not materialize as anticipated