Q3 2025 Microvision Inc Earnings Call
Speaker #1: Good afternoon. Welcome to the MicroVision third quarter 2025 financial and operating results conference call. At this time, all participants are in a listen-only mode.
Speaker #1: At the end of today's presentation, there will be an opportunity to ask questions via the chat line. Investors can submit their questions within the meeting webcast by typing them into the Q&A button on the left side of the viewing screen.
There are three developments that are required to bring costs down to the levels required for mass adoption.
The first is the Moon; from electromechanical systems to solid-state, the cost for electromechanical systems is significantly higher than that of solid-state. As a result, lighter is only used when it is not possible to do the job with gas or other lower-cost alternatives.
For example, while Automotive Level 2 Plus systems would benefit greatly from the use of LiDAR, they are typically deployed with only vision and radar.
We must move from, we must move to W for level processes that have a much lower cost structure than current electromechanical systems can never achieve.
Roughly 25 years ago, radar started as large, complex, and expensive assemblies with very limited adoption.
So, where are we now? In 2024, over 140 million lidar units were produced for the automotive market alone. Lidar can follow a very similar path.
The second development is related to system architecture and the move to satellite sensors.
We started this in automotive roughly 15 years ago with the introduction of satellite radar and camera sensors working with the central AI domain controller.
This approach breaks down the perception challenge and simplifies the individual sensors, delivering the highest level of performance at the lowest total system cost.
The third is to further simplify and reduce the cost of the hardware through software.
We'll talk more about this in future calls. Solving the perception and processing challenges in software enables the further optimization of the hardware, resulting in a lower total cost.
These are the steps in mass adoption, and if they sound familiar, it is because this is exactly what has been done through Vision Radar and other sensing modalities.
And this is exactly what we're doing at MicroVision, and it is the reason why I am so excited to be part of the MicroVision team.
So let's talk about Q3 and how it relates to the key issues. We just covered.
I'll start with our recent announcements at AAA in Munich in September, where we introduced both Movilla S and our trilateral architecture.
Olivia S is an industry-leading ultra-wide field of view solid-state sensor.
The movie, S1, 180-degree field of view sensor we demonstrated that. Yeah.
This is the first of a full family of short-range sensors for the automotive, industrial, and defense sectors.
It is easily configurable and can deliver full perception in advanced light-based driver assistance features.
Such as microvision localization and collision avoidance functions, or simply provide a clean point cloud.
It is the right product at the right time to deliver performance at a breakthrough cost level, enabled by its solid-state design and MicroVision's proprietary image and signal processing software.
This is the first step toward achieving mass adoption, dramatically lowering the cost of lighter perception for our customers.
S is an amazing standalone product, but it also enables the implementation of the satellite architecture. I referred to earlier what we call Tri Lidar for automotive applications.
Low-cost, compact, high-performance sensors are the key to unlocking satellite architectures.
And it is exactly what Vision Radar has accomplished.
They have between 3 to 5 radars and 69 cameras.
Lighter can and will follow the same path, not just for fully autonomous systems.
Such as level 3 or 4 cars, or AGVs and AMRs.
But for driver and operator assistance systems as well.
The industry refers to this as the democratization of safety, and that's what MicroVision's products are enabling.
S is currently being demonstrated with numerous customers and its production. Launch is planned for Q4 of 2026.
Additionally, we announced the asset purchase agreement of Scant and Alf Photonis.
This is a key move for MicroVision as it gives us access to 1515 nanometer FMCW, ultra long range, lighter technology.
Scan tools with ultra long-range capability perfectly complement our current 905 and 940 nanometer time-of-flight portfolio of Mia and Maven products.
MicroVision will be unique in its ability to offer our customers a complete range of solutions for their perception challenges across all market sectors.
We will share more details of our Ultra, long-range product plans and timing at the upcoming CES.
Regarding our defense-related activity, I'm excited to share a few more details about our recently announced aerial systems team, which is responsible for our drone-based light our developments.
The addition of this team dramatically accelerates our work, in the space of, in the space of drone, based real-time, mapping ISR and denied environment navigation.
We are on track to complete the initial proof of concept phase for both fixed-wing and rotor drones by the end of the year, and the aerial systems team is now operational at our airstrip and office in Virginia.
We've also been working closely with our Defense Advisory Board and have started the initial customer engagements this month.
We'll share more details about next steps and about the technology at CES in January.
Now, let me shift to our commercial engagements.
In the Q2 earnings call, we talked about the number of ongoing industrial and automotive RFQs and RFIs.
These remain active, and we continue to be engaged with our customers as they work through their sourcing processes.
What has changed significantly are the post-IAA engagements, where we have experienced strong interest in both Lovia apps and our trilateral architecture offerings.
We are currently demonstrating movies to a number of automotive OEM industrial and autonomous vehicle customers.
Another key differentiator for MicroVision's product is its price point, compact size, and ultra-wide field of view. Its open software framework enables our customers to embed their software on the MicroVision sensor.
Systematically changes. How perception systems are developed.
MicroVision is an open software framework that gives our customers the ability to develop, optimize, and validate their systems within the most advanced and efficient software DevOps model.
This is another example of how MicroVision is leading the industry and how we are helping our customers solve their perception system development and their deployment challenges.
We also see tremendous interest in our media LiDAR collision avoidance system, what we call Elcast.
These are for applications where the customer wants to have a solution that is ready to go out of the box, easily installed the pre-programmed and configurable elcast feature libraries. And they can set up an operate on their own.
They're currently demonstrating our elcast system, the several customers and plan to launch in Q2 of 2026 with our movie L platform.
Finally, let me bring you up to speed on several developments as we strengthen our leadership team.
Fraser man has joined Mecca Vision as our vice president of global sales pressure, brings Decades of sales and Commercial experience in the automotive and adjacent sector uh this and markets.
Brazil will be expanding our commercial team, and I'm looking forward to working closely with him as we accelerate our customer acquisition plans.
Also, Greg, Sharon Brock has joined as our Vice President of Global Engineering.
With his experience with Toyota Delphi as well, Greg brings proven technology leadership and management capability for our Global Engineering organization.
These are key additions to ensure that MicroVision has the leadership capabilities, as well as the experience, to execute and deliver our growth plans across the automotive, industrial, and defense markets.
I said at the beginning, that is why I'm here with you today.
With that, thank you for your attention, and I'll turn it over to Anubhav for his remarks.
Thanks, Glenn. I want to start by welcoming our new CEO, Glenn, and marking a new era for MicroVision.
The progress was made under his leadership in just, a few short months have been
The lighter industry is ready for a revolution, much like the one we saw with radar.
Glenn was a key architect of that evolution.
And he's now bringing his 30 years of automotive experience to do the same for LiDAR.
I'm excited about MicroVision's game-changing strategy. Number one: the simplified sensor architecture.
Our new LiDAR system transforms the traditional single-sensor model into a cost-effective solution. Offenses, do short range and 1.
Long range.
And the second is economic disruption or setting a new industry standard with solid-state products priced at $200 for short-range sensors and $300 for long-range sensors.
This strategy addresses OEM demands and positions MicroVision to accelerate large adoption while securing a competitive edge.
To accelerate our long-term vision, I am excited to announce a strategic investment in Scandal, a leader in 1550 nanometer FMCW LiDAR technology based in Bavaria, Germany.
This partnership secures our leadership in next-generation, ultra-long-range LAR.
Just as SMCW revolutionized radar with superior performance and interference resistance, it is ideal for long-range sensing in LiDAR.
This move positions MicroVision as one of the few companies offering both FMCW and Time-of-Flight technologies, enabling us to deliver a comprehensive product suite that meets the diverse and evolving needs of OEMs.
After the success related to the MOIA Epsilon, we are very energized by it and are now driving momentum in the industrial AMR market to drive near-term revenue opportunities, leveraging our perception software and Novia hardware to solve complex business problems.
Since Movilla S has a significantly lower price point than Novia L, most of our customers are looking to migrate from mobile to mobile app.
We believe this will be transformational for the industrial and warehouse automation markets.
Our prior visibility of $30 to $50 million over the next 12 to 18 months was primarily driven by the Movie L product. However, with our new strategy to transition customers to mobile apps and ongoing delays on the part of our customers, we anticipate that this revenue pipeline will take longer to realize.
Given that we're moving away from Movilla, we are actively managing our production commitments with ZF as we plan to bring up manufacturing capabilities for mobile apps next year.
We plan to provide an update as part of the Q4 earnings and full year 2025 results, early next year.
Moving on, we continue to press ahead with a pursuit of revenue opportunities in the defense vertical. We recently added a small team in Virginia in the greater DC Metro area with deep experience in aeronautical engineering and avionics.
We will be demonstrating a complete solution with multimodal sensors and our full-stack software capable of enabling unmanned drones to complete specific missions in the first half of 2026.
I'm also excited about the addition of key executives with rich backgrounds from Intel and ViON to join us and build the engineering and go-to-market functions of MicroVision.
Now let's review our third-quarter financial performance. For the third quarter, we reported revenues of $0.2 million. This quarter, revenue was driven by our sales in the Industrial and Automotive vertical.
From a cash burn standpoint, in the third quarter of 2025, our R&D and FCNA expenses totaled $122 million. This includes $1.2 million of severance payments related to the CEO transition.
PRS. Use some former CEOs' departures, as well as $1.4 million in non-cash charges related to DNA.
Excluding these items, core R&D and SG&A expenses were approximately $11 million for the quarter, flat with respect to Q2, in line with our expectations.
The cash burn for the quarter was $16 million and $1.5 million. That includes one-time payments of $3.2 million related to the inventory buildup of the mobile app.
Q4 CapEx was $0.1 million, in line with our expectations.
Now looking ahead, we anticipate an increase in current spending levels to support several strategic initiatives. These include the onboarding of the Aerial Systems team and related costs for a new DC office.
Several senior hires in that strengthening are in engineering and go-to-market functions.
Additionally, we will incur expenses related to the canal acquisition in Bavaria, Germany.
We plan to provide further updates on this transaction and associated funding during our next call, once the closing occurs later this year.
We anticipate that these new initiatives will lead to an increase in our annual spending by approximately $1.5 to $2 million per quarter.
To summarize, we're modestly ramping up our expenses starting Q4 onwards to invest in three key areas: number one, accelerate product readiness; number two, invest in industrializing our products; and number three, accelerate time to revenue by investing in our go-to-market and sales organization to build a solid pipeline for our products.
We look forward to sharing more updates and providing full-year cash burn guidance for 2026 in conjunction with our 2025 year-end earnings.
Now, let's talk about our balance sheet. We finished this quarter with $99.5 million in cash and cash equivalents.
In addition, the company has availability of an additional $46.2 million under our current ATM facility and $30 million of undrawn capital under the convertible notice facility as of Q3.
As of today, approximately $18 million in principal is outstanding on the convertible note.
That converts at a fixed price of $60, with $99.5 million cash at hand at the end of the third quarter. We are adequately capitalized to make these debt payments in cash or through stock. If the holder chooses to exercise their option due to favorable market conditions,
The 30 million Second Chance remains undone.
As previously highlighted, MicroVision's average trading volumes have experienced a substantial increase since last year, driven in part by committed investment, exceeding $90 million from multiple investors. This investment has also enabled the company to raise approximately $30 million in net proceeds during the third quarter through its ATM program, strengthening our balance sheet.
While we will continue to pursue opportunistic capital-raising strategies, as appropriate, the combination of recent funding activities and our operational cost management has extended our financial runway into 2027.
The lighter industry is evolving, with the once dominant company by market cap now facing significant financial challenges. In contrast, MicroVision stands out due to its strong capital structure, financial discipline, corporate governance, and superior product portfolio.
Our approach remains centered on diversifying revenue streams through targeted, disciplined investments.
This long-term outlook makes MicroVision an attractive investment for large-scale, institutional investors and has notably increased visibility within the institutional investment community.
We're confident that our new leadership team is well positioned to successfully execute our current business strategy to be the front runners of autonomy. Enablers for the 3 markets with significant camps,
Operator: I would now like to open the call for questions.
Thank you. At this time, we're conducting a 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.
Endless to publish research. May ask questions on the phone line.
Star 1.
Your first question is coming from Casey Ryan from West Park Capital. Your line is live.
And once again, Casey, your line is live.
Hello, hello. Sorry, I was on mute. Thank you. Um, a lot to discuss today. Thank you for the update. Um,
so,
The acquisition in Germany of fmcw. Technology is really interesting in light of your comments about driving the cost Point down in general. I guess my view has been that's been a even costlier product. But do you think you can get it down to the Target? So you talked about for your core products in terms of lidar and, and the ASP being consumable. Because I guess a lot of the fmcw I think has been concentrated in Long Haul Trucking, and sort of higher kind of ASP, you know, end markets previously.
Yeah, maybe. Um, I love—I'll take this. Um, hey Casey. Yeah, the key here is where FMCW is today, and you're spot on. Historically, it has been a higher cost alternative in terms of material costs. But ultimately, the technology gets you to essentially wafer level and chip scale packaging.
for really where all the high-value silicon is and that that
Basically, that evolution of going from discrete components into highly integrated chip scale packages is where you drive the cost down.
And then as well, uh, longer term, it's fundamental advantages that it has relative to eye safety.
You know, the ability for uh the ability for getting real time, you know, relative velocity uh measurements as well and overall range capability that brings that total system cost. So as we roadmap it, we do see this being able to hit the kind of cost targets that we think are required to be able to initially be attractive for commercial vehicle. That's where the, uh, initial Market looks looks most advantageous, as well, as ultimately for pascar. It also, it also has an another advantage of
Its um when you operate it behind the windscreen, uh, it has, it's just has less losses associated with transmission through the windshield of the vehicle. And again, that's another way that, you know, fundamentally you're not having to compensate for that. And so you can deliver a lower cost system.
But right now, that's the whole plan that we have with Scant, and all is to accelerate that roadmap.
Okay, terrific. Um,
Uh, so you're raising one of the things that I'll try to be quick about, which is the importance of putting, you know, a LiDAR sensor behind the windscreen versus, um, you know, a bubble or some other part of the car.
Are you hearing from customers?
That's a really important component for solutions to be able to operate behind the windscreen and operate effectively.
Yeah. In, in general, it's just an ideal location. If you think about, you know, there in the vehicle, the rear view mirror for a passenger car, and that area in front of it, that's where it typically, your cameras are mounted today. Um, it has the advantage of, you know, the cleaning system of the windshield, basically, the windshield wiper.
And then the defrost functions on the windshield, so heating and cleaning are, you know, basically already in place. It has a disadvantage of having to basically transmit through the windshield, the windshield itself. So that's what transmission loss has become concerning. Um, but we're seeing that emerge as, you know, both from a vehicle packaging standpoint.
So you don't have that bump in the top of the car when you put it on above the roofline.
So, from a vehicle packaging standpoint, and then from an inherent cleaning and heating standpoint.
Um, and then finally, from a, you know, a point of view standpoint, what I mean by that is the long-range ladder being mounted there gives it the best viewpoint in terms of its field of view.
Looking down the front of the car and looking down the road. So, when you think about all three of those factors, it's a very attractive location for it.
There's a lot out there, and you know, that's why miniaturizing that sensor to the greatest extent possible becomes so important.
um,
Okay, yeah, thank you. That's helpful and actually quite exciting. Um, quickly, another quick detour, I guess. Should we expect can to know whenever it's closed and sort of fully integrated?
Does that business already have revenues? Is my question: will we see some revenue streams from that? Or is it a sort of a low or diminishing revenue type business today?
No immediate go ahead.
No, go ahead then.
No, no I was going to just say at this point, you know, there's it's pre-revenue and really what, what we'll be doing right now. And this is what I'll talk about um, here in and as we come in to see us and end of year is, we're putting that plan together to take that technology and industrialize it into an automotive grade sensor.
So, MicroVision can basically wrap around and scan those technologies, along with all the supporting processing, packaging, hardware, software, and integrating their 1550 FMCW imaging capability. That's how the two really combine effectively. Well, we'll put that plan together. Now then, we'll be sharing specifics.
Dates and expectations on, uh, timing of product and revenue here later this year.
Yeah, and I think it just adds, uh, Casey. That's why, uh, we don't anticipate, uh, the acquisition to add a lot of costs into the system. Uh, because, as I mentioned in my remarks, uh, we're really only getting about 20-odd engineers, um, you know, adding them to the workforce, um, because, you know, we would be utilizing some of the talent, uh, that we have at MicroVision as well, to develop some of the packaging capabilities, etc. So, um, all in all of a sudden, uh, I think the cost that we're adding to the system is not going to be more than $2 million a quarter from that perspective.
Oh, right. Okay. And then, um, correct me if I'm misstating, but I believe you all have an office in Germany. Will the offices be combined, or are they near each other? Or does that not matter?
Uh, I know they're not near, uh, each other because, uh, the other office we have is in Hamburg, uh, while the canal office is in, uh, Bavaria, south of Germany, uh, in a city called Holm, so near Munich.
Extra card.
Okay. All right. Uh, well, thank you for all that. Um, one last big area that was exciting on the call was, I think, Anubhav, you started laying this out, sort of talking about...
A Target ASP of 200 for short range and 300 for long range. Did I hear that right? Um, first of all, yes. And and did you put a a Target date? I mean, even if it's aspirational I like wasn't sure if I heard that or if that was just a long term goal.
No. I think our goal is to get that product for moia f out in, uh, in next year. So we will be providing more, uh, exact dates, um, uh, probably as part of our next, uh, earnings call. Because that's sort of what we are accelerating right now in the product Readiness to get from moia El Tio, moia s, uh, and uh, and obviously setting up the manufacturing capabilities, Etc, to be able to fulfill customer demands um, starting next year.
Um, because those price points are extremely competitive with radar in particular, right? And then, you know, functionality versus cameras. Um, and with certain put you well ahead of.
as far as I know any competitors in the lidar space from like an asp perspective, does that
Track with what you guys are thinking.
I think that’s exactly right. You know, that and that gets us, I think, to the price point.
That really gets level 3 or maybe even level 2 plus systems.
Essentially, a great value for the OEMs. So they can sell those systems at a very high, at the right price for their own customers and still have a really high margin with that. You know, long term to get into ads, you even have to drive it further down.
Really okay. Um, and tell me if you think, um,
About the overall sensor cost is a, maybe a concern or an issue for some, you know, concepts for cars and maybe some categories of Cars, mid-tier Cars, and low-end Cars and things like that.
yeah, it's it's if you think about radar and cameras which are now, you know, fully commoditized
Um, you know, cameras as a passive sensor, which, you know, frequently, you know, kind of hit somewhere between the 50 to $100 range radar for short range, you know, below 50, um, between 15 and 100 dollars for long range, when you think about those price points lidar, as it achieves, you know what I mentioned, the 140 million a year for radar when you get into those kind of numbers and you really standardize across an industry? Yeah, you know, you we would expect to be sub $100 in that range as an active sensor, um, you know, with lens and lens assemblies, and everything else. So it's, you know, it's going to be in that in that neighborhood, you know, hundred dollars or less. Now, that's a ways off obviously, but you got to get their stepwise and the first big step, you know, we want to take kids with movie S as a, as a, as a short range sensor getting down to 200 unlocking satellite sensor architectures for lar. And then as as volume comes
Can you continue to standardize? Continue to drive that cost down?
um,
and then the second piece of my question was
It feels like that would put you in in a fairly dramatic leadership position from an ASC. ASP standpoint against
uh, potentially all the all the let's call them Western lidar competitors. Uh, I don't know what they're seeing out of China, but but, but does that sound accurate to you that like the gap between what I'm hearing? Tomorrow, Western vendors is significantly higher. For when we talk about asp,
Yeah, that's exactly right. Um, we think that's where we have to be in this market to drive volume.
And we're very mindful, we’re very mindful of where the price points in China are. And we know we have to be competitive with those as well.
And so you know at the end of the at the end of the day this is this is where you got to get to. And so team's done a great job, really designing the cost and coming up with the product that that gets us on that path.
Yeah. Um okay uh last question I promise um with defense and the opportunities with defense it feels like there's a significant um
Push um, to sort of enable new platforms and new form factors. And um, do you find that price is a key consideration or is it more just about functionality and maybe availability of product or sort of more important than those markets today?
If price is still, you know, cost is still a factor. I mean, it it
If you think about drones in particular um sometimes you can describe them as a tradable assets and you know with an incredible asset you you know cost is a factor. Now the reality is as is and and those applications
Are significantly higher than what we've been talking about with regard to Automotive, or Industrial.
um, but it's still a factor and that's where
You know, our sensors, with the scale and the design approach that we've taken, because we can use exactly the same sensor that we're developing in automotive, that we're developing in industrial, we can use that for what we're doing with drones and defense.
Ultimately, that makes it very that makes it very attractive, both from a the functionality it brings but also from the fact that it's it is a very cost effective solution.
It's just a different price point, a very different price point.
Right. Um,
Okay, terrific. Well, thank you for the feedback and the answers to these questions. It's a, it's a very exciting update. Um, Glenn for your first call and we'll look forward to the next 1 for sure. Thank you. Yep, thank you.
I will now turn this call back up to a new buffer to read questions submitted through the webcast. Thank you.
Thank you, Matt.
Uh, all right. So, first question is, uh, what is the status of the RFQs? Are there any updates on the timing? RV, stuck? Uh, what more do OEMs want and how can we compete against the Chinese lidar makers?
Of the oems. Let me talk to Automotive first, and then I'll pivot over to Industrial.
For automotive, I mean, we've seen it in the news, you know, the amount of churn that the OEMs are going through on their platform definitions—ICE platforms versus electrification. They're managing costs; you know, it's, there's a lot happening there.
And as a result um, the sourcing process for the basically, the safety systems that go in those Vehicles is also taking would have been a time. And and that's not unusual, especially for new type of features that a that lighter enables um but we're continuing to process through that. What typically happens is we go, you know, the oems go through a broad round.
With the supply base, they get a lot of feedback and a lot of different proposals. They, you know, analyze those and then the next wave comes out you know, reflecting what they've learned. The OEM has learned through that initial wave of responses and that's the process that we're in now. So you know, in terms of a lot more than they want, they're going to want you know, more updates and more Q&A sessions as they go. Um, but that's just going to take the time it takes. And so we're, we're still engaged with those and and following them. Um,
Relative to Industrial not, you know, very similar to that. Um,
in terms of the kind of the bigger engineered solution activities that were involved with, those are still proceeding through their evaluation phases, so that's continuing on. And, you know, we're supporting, we're supporting those customers as they do their evaluations. So, nothing new to announce this this, uh, call
But again, we continue.
We continue to stay engaged with those, and you know that, driving those to a successful outcome.
Um, but that's, you know, that. And then the last comment regarding, or question regarding in Chinese, lar. I think you kind of picked a little bit up on that in the last, in the last questions that we had.
ultimately,
And I've been doing this myself for 25 years now, competing with Chinese suppliers across all areas of certainly the automotive space. And, you know, how do you compete with them? You can't just, you can't just simply compete on price and hardware; that's very difficult.
You have to compete.
Through other innovation channels. And one of those is, like I talked about, the open software framework where we can provide a sensor that is highly flexible and fully transparent to what the perception system integrator or developer wants to do. They can put their software on it, and we can provide greater levels of innovation through how we use our software. So there are levers that we have that we can use to position our product to be competitive with the Chinese, either by adding more value or being more price competitive. And that's just the reality of the automotive market and the industrial market today.
You've got to be competitive; if you're not, you're not going to win the business. We feel that with our approach, we have a competitive offering against really all of the participants in this space.
Thank you, Glenn.
Uh, next question. We're concerned that the $200 price tag could be unprofitable.
And unsustainable customer deals. The type of deals that led to Luminar losing money on every unit being sold to local.
How are we going to be different?
Yes, that's a great question. Um, you can't get yourself into a position where volume production is upside down on margins.
That's just simply not not it's not an acceptable outcome to, you know, you do all that work to develop win a business, develop a product.
And then, every product is costing you money to ship it.
We're not in a position to do that and we don't have to um relative to that price point. The reason we're confident in stating that is because that was based on a detailed buildup of cost from the ground up and looking at, what is it going to cost us produce the product that can provide that kind of performance and looking through all of those cost elements and as well as manufacturing and the capital, it takes to support production. So we're confident in the in the cost model associated with that.
You just have to be maniacal about those costs. You can never, you have to watch them at every step constantly be working them down, and I'm confident that our team can do that. Um, so for me it's it's, you know, the hundred dollars, it's a great number to have and, and to, to start with,
But our goal, just to be clear, is to drive the cost well below that.
Thanks. Then, um, Glen, you indicated in public comments that at AAA in Munich, MicroVision has been working with a couple of customers on what I would call pre-development contracts to validate our system. We expect those products to be sold very quickly.
Uh, can you clarify those comments as a pre-development? Because a pre-development would indicate that we are in early stages of engagement. But prior comments by management indicated that the company was much further along in testing and validation with those customers. And where do we stand with these customers today, and what is the timing for sales?
We have a great question and, and so, for me pre-development is that whole phase.
Before really launching that product, you know, the production platform and...
so, when we, when I was talking about pre-development here and what I'm referring to is where we have sensors,
where we're still, you know, the customers are still evaluating and looking at the, um, how that feature would work on their on their system. An example of that is the bolt-on elcast system that we talked about that, based on the movie, L, where they're just doing exploratory work and looking at, okay. How does, how do we feel about this? How does this work? How would we integrate it?
Does the customer really haven't kicked off any formal development activity on that? Um,
We're also doing as, as you just mentioned. We're also in what you would call qualifications, phases.
Where the customer has our product on their vehicle or on their robot and is actively qualifying or validating the technology to make sure it can hit the kpis, they think they need to hit to move forward with a lighter solution and microvision as the provider of that lighter. So we're doing both and really
Um, the feedback, you know, the feedback we're getting has been very positive. Um, ultimately we have to, you know, we have to get it over the line to a commercial contract.
But both activities are occurring.
a lot of a lot of
uptick in that pre-development area with, you know, interest in elcast as well as in the movie s. Um, and my expectation is, you know, that'll that'll move fairly quickly. Um, but ultimately, you know, we work at the pace of our customers. Um, but based on, you know, it's kind of how they're looking at it. How they've the feedback we're getting on it. I'm uh I'm excited about, you know, I think my belief is that will be successful there.
Well, thanks Glenn. Uh, next question. How does the recent upheaval at luminar, affect our opportunity to make inroads that Volvo automotive and Volvo trucks?
Specifics I'm involved in the whole situation. But I would tell you.
You know, historically, when there's a supplier that has issues providing to or with an OEM, whatever those might be,
And typically that provides the opportunity for those programs to be reopened.
And for those oems to look at alternate sources. And so we need to be, you know, mindful of that. And and and you know, and take advantage of those opportunities as they as they develop. Um,
You know, that that's just a you know this certainly it wouldn't be the first time that this kind of thing has happened and the industry and and the oems, you know, they're very active in terms of their risk management. And we'll look for alternate sources or how to protect your vehicle builds.
You know, that's about it. Also, it puts a, you know, that much more.
that much more important on.
Your credibility as a supplier is that you have a product that's mature and proven.
You have a product that you can produce at volume; you know, supply security.
Um, you know, and you don't, you will never jeopardize their production. And so, you know, it just, it just is another, you know, point to emphasize that as a supplier to the oems, you know, you have to have that credibility, you have to have those those pieces put together which I'm I'm confident the microvision team has, um, but but again, you know, those are opportunities that we'll, we'll watch very carefully and see what kind of, uh, what kind of opportunity to truly present for us.
Thanks then. Uh, next question: are the industrial deals still in play? How should investors think about the timing when the efforts in the industrial sector start to show revenue? And perhaps the same question for defense and automotive.
yeah, um, so for the first point,
Yeah, Industrials are still in play with Movie L, and we're now expanding those with Movie S.
We would expect Revenue really in 2026 more on the movie L platform with movie as launching in, uh, 2, you know, fourth quarter of 2026. Maybe a little bit of Revenue in the tail end of the year from that platform. 27 will really be about lovia, s for industrial and uh, either as a standalone product or integrated, as part of a null cast solution.
Um, for auto, you know the timelines we're talking about with auto, whether it's robot taxis or its traditional passenger cars. I tend to be in my opinion in the '29 timeframe; some still show a '28. We're going to be here in '26. You know, in 2 months that would be highly aggressive. I think '28, you know could be some, but I think it’d be fairly minor. '29 really strikes me as more of a viable launch here for automotive revenue again, starting, and then building up more in '30 and '31.
As it relates to defense, um, a little bit too early to predict at this time. I think you can see.
You know, there's a lot of activity there, um, over the course of.
You know, the next year or two.
You know, as we come into it I think our timing is very good to catch that wave, you know, we'll we'll be able to demonstrate and go public essentially with our product offerings. You're going into next year and I think at that time, you know, we'll generate a lot of interest and we'll be able to give a much better feeling for what we think the revenue projections and when that market would develop for us, nurture them. And it'll probably be more on the kind of the
Non-recurring engineering piece of that. Do you know the development costs rent? Getting paid to develop. Um, but obviously longer term, we wanted to be more on the product sales side.
and with defense,
Um, given what you know, drone technology is. Now, in terms of the platform itself, it was fairly ubiquitous.
Um, commoditized. She's got what we're developing is going to be very mature coming into next year. This could have a short time to market, if you will. Then Oto. So, it kind of fits in between industrial and auto. The other comment I would make about this question, I think, highlights something important.
Because we do get the question about, you know, why the free markets, and I just want to point out.
For all three of these markets, it's the same core technology that we're providing in terms of the...
You know, the Imaging Hardware, the sensor itself, the image processing software and then the perception, you know, whether its mapping localization, you know, navigation or its spellcast. It's all under all of it is the same technology that underlines each of those end markets.
So that means we have you know really nice Revenue diversity across our business. So you know these aren't all these markets don't move in the same cycle that auto or industrial does. So it's a nice Revenue diversity, which is which is very very attractive for a business to have in terms of Topline resilience. So um I would you know again with defense kind of in between Auto and uh in industrial. Um we'll know more about that coming into into next year.
Sales. So, let me, let me answer that question because I think, um, this just adds context to what, uh, you just described. Uh, we have built, this inventory for moia L from the ZF Automotive grade, uh, quality product line in France. Um, and I think this was an anticipation of the demands, uh, from the industrial customers, which was ultimately fueling our visibility of the 30 to 50 million dollar, uh, pipeline. Uh, we still think that while, you know, they are some delays, uh, but as, uh, the opportunities open up for lcas and some of the, the attractive price points because I think it's a single most important price uh, point that I think, um, uh, were very excited about at at the price at which, you can sell the sensors to the customers because we are significantly lower than the nearest competitor. And I think as we sort of build up our commercial organization, uh,
And bring on quality uh people and build out the sales team. We do expect to see traction on the revenue side from this inventory. That's been built up to translate into Revenue next year. Just the mobile L and obviously mobile s is uh expected to be start up next year. But this is in anticipation of the the sales that we can, um, get to next year, uh, from the commercial traction that we have, uh, gotten since Glenn has come on.
um, next question does the
Scandal acquisition: replace Navin, or is it complementary? And, uh, is FMCW technology better than TOF? How does the Scandal product compare with AA? Uh, which is the nearest SMPW product in the market?
So 3 questions. Um, so it doesn't replace Maven, those are complimentary not uh not uh in conflict and and we're Maven. Really shines is you know, kind of that 50 to 200 meter range.
Where scan tools text shines is in nearly more than 50 to up to a kilometer.
And so, but for commercial vehicle applications, we really look more at 400 meters or those kinds of numbers.
So they're very complimentary Technologies um not just you know a replacement or or overlapping um in terms of fmcw and you know kind of what you have to think not so much where it's better than time of flight or 1 is better than the other. It's more about
What is each one really good at? Time of flight has certainly some advantages for our shorter range detection and works very well. We can use, in many cases, off-the-shelf components, and so we can get to a lower cost point sooner.
FMCW, on the other hand, as we talked earlier tonight, uh, some really...
Attractive performance with eye safety. Implement leather range.
Um, and as well as transmissions of the glass,
And then the inherent uh, inherent uh, measurement of velocity with the, with the, with the, with the waveform. So at the end of the day, you know, they offer different pros and cons but that's why having all 3 uh, Maven and or movie Maven. And and and no scan tool is really um, is really an advantage for us. Um,
and then, uh, ultimately
Um, you know, our, our, our goal has to be how do we then bring bring down, um, you know, that cost of uh, the fmcw technology so that it can ultimately get on to past cars and not just on CV or higher costs applications um in terms of how it Compares with AA, I'm going to hold off on that particularly uh for the short term as we kind of finish our plan.
Will come out later this year with a much more detailed description of what our Scannell with the microvision. Scansal product will look like uh performs and be able to compare it head-to-head. Um but I I can say that the thing that impressed me about the scan with the scans and Ultima done.
Lot more about that in the future but um, um, you know, that's the work. The team is doing right now, pulling those pulling those plans together.
Thanks Len. Uh next question. Uh it's about the our vertical does the company have any plans to update investors on the status of the vertical and is the technology being actively marketed to potential customers? And there has been talks of hollow lens. 3 launching in 2026 is micro Vision, Tech in Halo lens 3,
Yeah, I'll um I'm going to start with the last question first not to our knowledge. Uh so and that's consistent with the fact that we're really not actively pursuing our related markets. At this time we have the idea we have capability. Um, we'll kind of monitor those. But right now, if you think about our resources and where we're allocating our Capital, it's really in the third, the 3 vertical that we've talked about, with the industrial defense and automotive. And you know, our is is always an interesting topic at this point. We're just watching to see, you know, does that? And that be interesting for us but there's no active development or Pursuits in that space as of today.
Thanks, Len. Next question. Um, each microvision CEO, uh, can be seen as failing. Uh, the promise of the microvision technology was not realized by any CEO will. Glenn carry us to the promised land and how uh, how does a Glenn proposed to succeed where all others have failed and by what measure should you be held accountable? And within what time frame
Yeah, so great question. I would kind of put this in the context, not necessarily of just MicroVision. I would kind of broaden the context to the whole industry.
Um, you know, you look across the industry and it has, you know, if you think back to that exciting time that I talked about in 2015, 2016, 2017.
You know, kind of the late teens where there was a lot of optimism and very great expectations around where lighter would go and the reality.
and the reality is, it has, you know, we haven't realized those expectations so far
And as I mentioned in my remarks,
The issue has been costs, it's just an extensive system. And at the end of the day,
If you can't afford to put it on your product, you figure some other way to do it. You know, like I said, vision or radar, ultrasonics or something else.
Um,
You know.
But I am confident. And again, this is why taking on the role of CEO of microvision was so interesting for me.
I am confident that when I look at what we did with radar and I look at what we do with vision systems in early ADAS systems, we can do the same thing with LiDAR. There's really no reason not to. LiDAR is a brilliant sensor technology, and it works just perfectly with radar and vision. That trimodal package gives you the highest performing perception system.
Now, it's up to us, though, to drive the cost down.
That's that it can fit into the budget of the vehicles or the platforms that want to use it.
And that's what we're doing now. We're not going to take 25 years to do it. My credit are. Did you know, the first radar I was involved with was back in 2000.
And you know, 25 years later. Yeah. 140 million. Well we we're not going to take that long. We need to do it now and really in, you know, achieve that that market penetration maybe not to 140 million by, you know, 20033 or 4, but really get on that growth curve where we're
Accelerating the adoption and we're on the path to mass adoption for on the path to mass adoption for the technology.
And as I look at the team, we have with micro vision and and the IP and the Technologies we have, I'm very confident this key. This team can deliver that. Um and so you know what measures are there for me as CEO? Well, it starts with. Are we hitting the product Milestones that we talked about? We talked about a launch of movie s and Q4 we talked about elcast and Q2 with movie L. We've talked to, you know, the scan tool plans and we have to deliver on those. We have to hit those. Those those, those dates with the right content with the right product and the right Technologies at the right cost to be able to move the the market. The other part is we have to be able to convert
Commercial contracts. And that's why we're strengthening the commercial team with Fraser and his guys. He'll be adding to his team to make sure we have the right sales motion to be able to convert to contract.
And that has to be reflecting in backlog, you know, bookings over the course of next year and into 2027, and a robust.
And a really resilient backlog volume that doesn't go away.
And so you know, that's what my board, all my bosses will be looking at. Ultimately you know our goal is always hey we have to be able to drive shareholder value by delivering and driving customer value and I'm convinced we have the team to do it. Um we have the dates in place when we got to do what and now it's a matter of execution and so that's as CEO. That's what I have to focus on and then share progress with with this group The the shareholders, and the analysts along the way to give you confidence that we're on track. Um so I think uh I think we have a good plan and we have a good team now it's about executing
Thanks, Lynn. Um, we are over time, but maybe I'll take one last question. Uh, and it's a tough one, so maybe I'll... that's why I want to answer this question. Uh, why did the company sell so many shares and cause dilution in the last 6 months, and how do we plan to sustain the company?
Uh, the reason why I call this a tough question is because, um, I do get, um, a lot of, uh, you know, emails and, uh, concerning emails from, uh, investors. And while I realize that because I myself am a shareholder in the company, um, I think what I would like to take the credit on behalf of MicroVision management and the board is the reason why we are here, uh, talking to you guys. And you have seen the others. Uh, the mighty have fallen. Um, it's just sort of represents the ethos of what this company has been all about. We have been very disciplined, we have been able to fund the company, uh, and we have been fortunate enough to attract people like Glen. I mean, you know, having somebody like Glen and, uh, the senior, uh, executives he's bringing to the table is kind of never happened in this country's history. And, uh, to have people like Glen leading us through this time is sort of, uh, a statement.
Which, I think I can be, uh, we can as the company be proud of, because no other company has an experienced professional or a resume and experience like Glenn. And that's why I'm very confident, more than ever, of what the future looks like, because we have the priorities right, uh, to not make the best product, but to make the most efficient product, uh, for customers at the price point that will drive the volumes. Um, and part of, uh, you know, the tough part is you have to, uh, you know, incur the dilution in the initial phases to have that runway to have that stability, uh, to attract, uh, you know, talent. And also, uh, keep in mind, this is a game of about customer stability because I have been here four years, and in my four years, uh, the number of LIDAR companies, which are now I can call competitors, I can literally count on my single hand. Uh, Before I joined four years ago, there were so many companies, and I think this will continue to change. And I think the...
Uh, I continue to iterate. This is a game of, uh, you know, the survival of the fittest, and you know, the guy who will survive this game. And I think, um, our financial position puts us in a very good position of standing. Uh, and also our, you know, uh, continued partners who, uh, the high Trail guys, who have continued to help us as well to get to this point. So, I am very confident, and we can perhaps see the increasing. Um, uh,
Positions in our, uh, Institutional Investor Holdings, which is also a representation of the fact that we are here to stay. We are here for the long run, uh, which is why I'm very excited. And and maybe last comment, I will make is, uh, you know, the recent financing for AA, the debt. Commit, the debt funding actually the very positive sign for the entire industry. That actually tells you that the quality of credit investors and the quality of credit is actually increasing with more uh uh significantly larger institutions coming to coming to play, uh, in the lar sector which which just means that the business and the sector itself has gradually uh, becoming or moving up to change from Equity, financing, uh, of convertible to, you know, someday in future. Uh, debt, debt, flow finance and we would be having
You know, while dilution is painful, I think it is a necessary tool to put us in a spot where we can compete and have a future that is truly, truly bright.
With that, uh, I would like to thank everybody. Uh, I know we went over the over the hour, mark, but we look forward to chatting with you, uh, with, uh, at our year end, uh, call early next year. Thank you, everybody.
Thank you. This concludes today's conference. All parties may disconnect and have a great day.