MicroVision (MVIS) Status Update summary

Convertible note financing and capital strategy

• Conversion price for the bulk of the $45M convertible note is fixed at $1.56, with a cap at $1.76; some initial payments' conversion price will be set upon registration effectiveness, and the $30M tranche price will be determined when drawn.

• The structure aligns incentives between the investor and shareholders, as returns are maximized if the stock price appreciates.

• The deal is seen as non-dilutive to a large extent, with most payments expected to be made in cash from anticipated 2025 revenues.

• The capital raise provides a strong balance sheet, extended runway, and reduces dependence on ATM facilities, deterring short sellers.

• The company plans to seek approval for a 75M share increase at the next annual shareholder meeting, maintaining a regular cadence.

Revenue guidance and business outlook

• 2024 revenue guidance of $8–$10M was reaffirmed, with Q4 expected to contribute $5–$7M due to order timing shifts.

• Revenue recognition is dependent on customer approvals for custom development projects, with inventory sales recognized upon purchase order.

• The company is focused on ramping industrial revenues in 2025, with a pipeline of 15 top-priority industrial customers, each potentially purchasing thousands of units annually.

• Industrial volumes are expected to reach 50,000–100,000 units per year, while automotive could reach 500,000–1M units annually in the future.

• Achieving $180–$200M in annual revenue is seen as the threshold for cash flow break-even, lower than peers due to a reduced burn rate.

Product and market development

• The company is prioritizing industrial applications for its LiDAR solutions, leveraging a full hardware and software stack for direct integration and perception capabilities.

• Automotive RFQs remain in progress, with long cycles and shifting OEM strategies; industrial revenue is positioned as a bridge to larger automotive opportunities.

• MOVIA S is in concept phase for automotive, while MOVIA L targets industrial; MAVIN is positioned for long-range, high-speed automotive applications.

• The company is cautious with ASIC development, pausing until OEM requirements stabilize to avoid costly respins.

• Direct sales and product marketing are emphasized over legacy distribution partnerships, focusing on customer engagement and bespoke solutions.