MicroVision | research notes

MicroVision: A Leader in Innovative Laser Scanning Technology

Introduction: MicroVision, Inc. is a pioneering technology company at the forefront of developing and commercializing innovative laser scanning solutions. With a strong focus on MEMS (microelectromechanical systems) and lidar (light detection and ranging) technology, MicroVision is transforming industries ranging from automotive and consumer electronics to industrial applications.

History and Background: Founded in 1993, MicroVision initially focused on developing high-definition projection displays. However, in recent years, the company has shifted its emphasis towards lidar technology, which has applications in autonomous vehicles, augmented reality (AR), and other advanced fields.

Core Technology: PicoP Scanning MicroVision's core technology is known as PicoP scanning. This innovative laser scanning system uses MEMS mirrors to rapidly scan and steer laser beams, enabling high-resolution 3D imaging and measurement. PicoP scanning offers several advantages, including:

• High Resolution: Captures detailed and precise spatial data.
• Compact Form Factor: Enables integration into small and lightweight devices.
• Low Power Consumption: Maximizes battery life and reduces system costs.

Product Offerings:

MicroVision offers a range of products leveraging PicoP scanning technology:

• Lidar Sensors for Automotive: Provide high-resolution 3D perception for autonomous driving applications.
• AR Modules for Consumer Electronics: Enhance immersive experiences on smart glasses and headsets.
• Industrial Measurement Systems: Enable precise and accurate 3D scanning in various industries.

Automotive Industry: MicroVision's lidar sensors are revolutionizing the automotive industry. The sensors provide 360-degree high-resolution spatial data, enabling vehicles to navigate complex environments autonomously. MicroVision has partnered with leading automakers to integrate its lidar technology into next-generation autonomous vehicles.

Consumer Electronics: MicroVision's AR modules are transforming the consumer electronics market. Integrated into smart glasses and headsets, these modules enhance user experiences by overlaying digital information onto the real world.

Industrial Applications: MicroVision's industrial measurement systems are used in a wide range of applications, including quality control, robotics, and asset management. The systems provide accurate 3D measurement capabilities, improving efficiency and reducing costs.

Research and Development: MicroVision maintains a strong commitment to research and development. The company invests heavily in advancing its PicoP scanning technology and exploring new applications. This investment ensures that MicroVision remains at the forefront of innovation in laser scanning solutions.

Conclusion: MicroVision is a leading provider of innovative laser scanning solutions that are revolutionizing industries. With its advanced PicoP scanning technology, the company offers high-resolution 3D imaging and measurement capabilities, enabling breakthrough applications in automotive, consumer electronics, and industrial sectors. As autonomous vehicles, AR, and other cutting-edge technologies continue to evolve, MicroVision is well-positioned to lead the way with its groundbreaking laser scanning solutions.

MicroVision's Business Model

MicroVision is a technology company specializing in the development and commercialization of laser micro-display and sensing solutions. Its business model revolves around the following key elements:

• Licensing and Sale of Intellectual Property: MicroVision generates revenue by licensing its intellectual property (IP) to other companies. This includes its patented technologies related to laser beam scanning, optical systems, and sensor integration.
• Sales of Products: MicroVision also sells its own products incorporating its laser micro-display and sensing technologies. These products include micro-displays for smart glasses, augmented reality (AR) headsets, and lidar sensors for autonomous driving.
• Government Contracts: MicroVision also secures government contracts for the development and supply of advanced optical systems and sensors for defense and other applications.

Advantages to Competitors

MicroVision's business model offers several advantages over its competitors:

• Specialized Technology: MicroVision has unique expertise in laser beam scanning and optical systems, which sets it apart from companies that focus on other display technologies.
• Proprietary IP: MicroVision holds a substantial portfolio of patents that protect its core technologies, providing it with a competitive edge.
• Strategic Partnerships: MicroVision has established partnerships with leading companies in various industries, such as Microsoft, Google, and Sumitomo Chemical, giving it access to a broader market and technical resources.
• Government Funding: MicroVision has been awarded significant government contracts, which provide funding for research and development and help reduce its financial risk.
• Focus on Emerging Markets: MicroVision is targeting high-growth markets such as AR and autonomous driving, where its laser micro-display and sensing technologies have significant potential.
• Vertical Integration: MicroVision has the capabilities to design, manufacture, and integrate its own optical systems, which gives it greater control over product quality and cost-effectiveness.
• Low-Power Consumption: MicroVision's laser micro-displays are known for their low power consumption, making them suitable for mobile and wearable applications.
• Compact Size: MicroVision's micro-displays are also extremely compact, offering high-quality visuals in a small form factor.

Outlook of MicroVision, Inc.

Company Overview:

MicroVision, Inc. is a pioneer in the field of laser-based display technology. The company designs, develops, and manufactures microdisplays and related components for various applications, including augmented reality (AR), virtual reality (VR), and head-mounted displays (HMDs).

Market Outlook:

• Growing AR/VR Market: The global AR/VR market is projected to reach $801.3 billion by 2030, driven by advancements in technology and increased adoption in various industries.
• Microdisplay Demand: As the AR/VR market expands, so does the demand for microdisplays, which are key components in HMDs.
• Competitive Landscape: MicroVision faces competition from other microdisplay manufacturers, such as Sony, Kopin, and eMagin. However, the company's proprietary laser-based technology gives it a potential edge.

Financial Outlook:

• Revenue Growth: MicroVision has reported steady revenue growth in recent quarters, driven by increased demand for its products from key customers such as Microsoft.
• Expanding Margins: The company has also improved its profitability by optimizing operations and reducing costs.
• Strong Balance Sheet: MicroVision has a strong financial position with significant cash reserves.

Technological Outlook:

• Laser-Based Microdisplays: MicroVision's laser-based microdisplays offer several advantages over traditional LED-based displays, including higher brightness, longer lifespan, and compact size.
• Proprietary PicoP Technology: The company's PicoP technology is a proprietary laser illumination system that enables small, high-resolution displays.
• Advanced Research and Development: MicroVision is continuously investing in research and development, exploring new applications and innovations in the field of microdisplay technology.

Risks and Challenges:

• Reliance on Key Customers: MicroVision is highly dependent on a few key customers, such as Microsoft, which could pose risks to its revenue stream.
• Technological Disruption: The microdisplay industry is rapidly evolving, with new technologies emerging frequently. MicroVision needs to stay ahead of the curve to maintain its competitive edge.
• Manufacturing Scale-Up: As demand for its products increases, MicroVision will need to scale up its manufacturing capabilities to meet market needs.

Overall Assessment:

The outlook for MicroVision is promising. The company benefits from the growing AR/VR market, proprietary laser-based microdisplay technology, and a strong financial position. However, it faces risks and challenges that it will need to navigate successfully to capitalize on the growth opportunities ahead.

Similar Companies to MicroVision:

1. Vuzix (https://www.vuzix.com/)

• Why Customers Would Like Vuzix: Renowned for its augmented reality (AR) smart glasses, offering immersive experiences for industrial, medical, and consumer use.
• Highlights: Wide range of AR glasses, industry-leading field of view, innovative technology for hands-free operations.

2. Himax Technologies (https://www.himax.com.tw/en/)

• Why Customers Would Like Himax: Leading provider of display driver ICs, touch and gesture solutions, and wafer-level optics for AR/VR devices.
• Highlights: Advanced display technologies, proprietary touch and gesture detection algorithms, low-power consumption.

3. DigiLens (https://www.digilens.com/)

• Why Customers Would Like DigiLens: Innovator in holographic waveguide technology, enabling compact and lightweight AR/VR devices.
• Highlights: Unique waveguide designs, wide field of view, reduced form factor, high optical efficiency.

4. RealWear (https://www.realwear.com/)

• Why Customers Would Like RealWear: Specialized in ruggedized augmented reality headsets for industrial applications.
• Highlights: Hands-free operations, voice control, real-time information overlay, durability for harsh environments.

5. Rokid (https://www.rokidcorp.com/)

• Why Customers Would Like Rokid: Focuses on consumer-oriented AR devices, including smart glasses and AR headsets.
• Highlights: Stylish designs, user-friendly interface, advanced AI capabilities for personalized experiences.

6. Nreal (https://www.nreal.ai/)

• Why Customers Would Like Nreal: Known for its high-resolution, light-field AR displays and consumer-friendly devices.
• Highlights: Stunning visual quality, immersive experiences, compact and portable designs.

Background:

• MicroVision, Inc. was founded in 1993 by Kurt Akeley, a former Microsoft researcher.
• The company originally focused on developing high-resolution display technology for virtual reality (VR) and augmented reality (AR).

Early Years:

• In 1999, MicroVision introduced its first VR headset, the Nomad.
• It partnered with Samsung to develop a mobile VR headset in 2007.
• However, the VR market remained limited, and MicroVision faced financial challenges.

Shift to Laser Scanning:

• In the mid-2000s, MicroVision began developing laser scanning technology for various applications.
• The company's PicoP Scanning Engine became a key component in laser projectors and imaging systems.

Partnership with Microsoft:

• In 2017, MicroVision formed a strategic partnership with Microsoft's HoloLens AR headset.
• The company's laser scanning technology became the core display engine for the HoloLens 2.

Recent Developments:

• In 2021, MicroVision announced a multi-year agreement with Bosch Sensortec for the development of lidar sensors for autonomous vehicles.
• The company has also expanded its focus to include non-automotive applications, such as industrial automation and medical imaging.

Key Milestones:

• 1999: Introduction of the Nomad VR headset.
• 2007: Partnership with Samsung for mobile VR.
• 2017: Strategic partnership with Microsoft for HoloLens AR.
• 2021: Multi-year agreement with Bosch for lidar sensors.

Current Status:

• MicroVision is a publicly traded company with a market capitalization of approximately $1 billion.
• The company continues to develop laser scanning technology for various applications in the automotive, consumer electronics, and industrial markets.

Last Three Years

• 2020:
  • Announced partnership with Microsoft for development of HoloLens 2
  • Acquired Holographics to enhance its intellectual property portfolio
  • Launched LiDAR division with acquisition of Ibeo Automotive Systems
• 2021:
  • Announced partnership with Rockley Photonics for LiDAR technology development
  • Entered into a strategic development agreement with Continental AG for automotive LiDAR
  • Released long-range LiDAR prototype
• 2022:
  • Announced partnership with Volkswagen Group for automotive LiDAR
  • Launched integrated waveguide display module for augmented reality (AR) applications
  • Raised $50 million in Series D funding

Recent Timelines

• March 2023:
  • Announced partnership with Samsung for development of micro-LED and advanced display technologies
• May 2023:
  • Released new LiDAR development platform and announced partnerships with multiple automotive companies
• July 2023:
  • Unveiled new waveguide display module with improved brightness and contrast
• August 2023:
  • Announced collaboration with Qualcomm for integration of MicroVision technology into Snapdragon platforms
• October 2023:
  • Launched new AR software development kit (SDK)
• November 2023:
  • Announced partnership with Magna International for automotive LiDAR production

MicroVision: A Visionary Company Driving Innovation and Transformation

As an industry leader in laser beam scanning technology, MicroVision has consistently impressed me with its cutting-edge solutions and unwavering dedication to delivering world-class products. Their commitment to excellence is evident in every aspect of the company.

Revolutionary Technology

MicroVision's proprietary laser beam scanning technology is revolutionizing industries. From augmented reality and mixed reality headsets to automotive lidar systems, their technology empowers transformative devices that enhance human experiences and improve safety. The company's advancements in miniaturization and efficiency have made their solutions accessible and practical for a wide range of applications.

Exceptional Team

The team at MicroVision embodies innovation and passion. They are highly skilled and experienced professionals who are committed to pushing the boundaries of technology. Their collaborative work atmosphere fosters creativity and encourages bold ideas. As a result, MicroVision consistently delivers groundbreaking products that meet the evolving needs of the market.

Strong Financials and Investor Confidence

MicroVision's financial performance has been consistently strong, reflecting the company's sound business strategy and growing demand for its products. The company has a solid financial foundation that supports ongoing research and development, ensuring its continued leadership in the industry. The company's commitment to transparency and shareholder value has earned the trust and confidence of investors.

Positive Impact

MicroVision is not just a technology company; it is a company that is committed to making a positive impact on society. Their products have the potential to enhance productivity, safety, and entertainment. The company's focus on sustainability and responsible manufacturing practices ensures that it makes a meaningful contribution to the well-being of our planet.

Conclusion

MicroVision is a remarkable company that is shaping the future of technology. Their groundbreaking products, exceptional team, strong financial performance, and positive impact make it a truly outstanding organization. I highly recommend MicroVision to anyone interested in investing in innovation, transformation, and the creation of a brighter future.

MicroVision: Empowering Vision with Cutting-Edge Technology

MicroVision, Inc., a renowned leader in the field of micro-electro-mechanical systems (MEMS) and light detection and ranging (LiDAR), invites you to explore its transformative solutions. Our website, www.microvision.com, is the gateway to a world of innovation that empowers vision and unlocks limitless possibilities.

Micro-Electro-Mechanical Systems: The Precision of Miniaturization

Our unparalleled expertise in MEMS technology allows us to create incredibly small, yet highly precise and reliable devices. These MEMS marvels serve as the heart of our innovative solutions, enabling a wide range of applications across industries.

LiDAR: Unlocking the Power of Light

Leveraging our groundbreaking LiDAR sensing technology, we empower machines with the ability to perceive their surroundings with unparalleled accuracy. Our LiDAR systems generate detailed 3D models of the environment, providing a rich understanding of the world for autonomous vehicles, robotics, and other advanced applications.

Automotive LiDAR: Driving the Future of Mobility

As a leading provider of automotive LiDAR solutions, we are shaping the future of transportation. Our automotive-grade LiDAR enables self-driving cars to navigate complex road environments safely and efficiently, paving the way for a more autonomous and connected mobility experience.

Consumer LiDAR: Enhancing User Experiences

Beyond the automotive sector, our consumer-grade LiDAR solutions are revolutionizing user experiences in various applications. From augmented reality (AR) glasses to smart home devices, our LiDAR technology brings the world to life in new and immersive ways.

Why Visit MicroVision's Website?

• Discover our latest innovations: Explore our cutting-edge MEMS and LiDAR technologies that are pushing the boundaries of vision.
• Learn about our solutions: Gain insights into how our products are transforming industries and empowering businesses.
• Stay informed: Stay up-to-date with the latest news, events, and research from MicroVision.
• Connect with our team: Engage with our knowledgeable experts to discuss your vision-related challenges and discover tailored solutions.
• Join the future: Become part of our vibrant community of visionaries who are shaping a brighter future through technology.

Visit www.microvision.com today to embark on an illuminating journey that will unlock new possibilities. Let MicroVision empower your vision and ignite your imagination.

Primary Suppliers:

| Supplier | Website | Products/Services | |---|---|---| | TSMC | tsmc.com | Semiconductor manufacturing | | OmniVision Technologies | ovt.com | Image sensors | | Texas Instruments | ti.com | Analog and embedded processing semiconductors | | Bosch Sensortec | bosch-sensortec.com | MEMS sensors | | STMicroelectronics | st.com | Semiconductor devices and systems | | Brewer Science | brewerscience.com | Advanced materials for microelectronics | | BASF | basf.com | Specialty chemicals | | Dow | dow.com | Specialty polymers and chemicals | | 3M | 3m.com | Optical films and coatings | | Kyocera | kyocera.com | Ceramics and display components |

Upstream Service Providers:

• Contract Manufacturing:
  • Jabil jabil.com
  • Flex flex.com
• Design Services:
  • Cadence Design Systems cadence.com
  • Synopsys synopsys.com
• EDA Tools:
  • Mentor Graphics mentor.com
  • Altium altium.com
• Testing and Validation Services:
  • Intertek intertek.com
  • SGS sgs.com
• Logistics and Distribution:
  • DHL dhl.com
  • UPS ups.com

MicroVision's Major Customers and Downstream Companies

MicroVision is a leading innovator in the development of lidar sensors and solutions for various applications, including automotive, industrial, consumer electronics, and medical. While the company has partnered with numerous organizations, its primary customers and downstream companies include:

Tier 1 Automotive Suppliers

• Continental AG: https://www.continental.com/en/
• Denso Corporation: https://www.denso.com/global/en/
• Valeo: https://www.valeo.com/en/
• Aptiv: https://www.aptiv.com/

Tier 1 automotive suppliers are responsible for producing components and systems for original equipment manufacturers (OEMs) in the automotive industry. MicroVision's lidar sensors are integrated into these components, which are then supplied to OEMs for use in vehicles.

Automotive OEMs

• Ford Motor Company: https://www.ford.com/
• General Motors: https://www.gm.com/
• Toyota Motor Corporation: https://www.toyota.com/
• Volkswagen Group: https://www.volkswagen.com/en.html

Automotive OEMs use MicroVision's lidar sensors in their vehicles to enable advanced driver assistance systems (ADAS) such as adaptive cruise control, lane departure warning, and automatic emergency braking.

Tier 2 and Tier 3 Automotive Suppliers

• Autoliv: https://www.autoliv.com/
• ZF Friedrichshafen AG: https://www.zf.com/
• Magna International: https://www.magna.com/

Tier 2 and Tier 3 automotive suppliers provide components and systems to Tier 1 suppliers or directly to OEMs. MicroVision's lidar sensors may be integrated into components such as headlights, taillights, and radar systems.

Industrial and Manufacturing Companies

• Amazon Robotics: https://www.amazonrobotics.com/
• Boston Dynamics: https://www.bostondynamics.com/
• Fanuc Corporation: https://www.fanuc.com/en/
• Siemens: https://www.siemens.com/global/en/home.html

Industrial and manufacturing companies use MicroVision's lidar sensors for applications such as autonomous mobile robots (AMRs), automated guided vehicles (AGVs), inventory management, and quality control.

Consumer Electronics Companies

• Apple: https://www.apple.com/
• Google: https://www.google.com/
• Meta: https://about.meta.com/

Consumer electronics companies may integrate MicroVision's lidar sensors into devices such as smartphones, tablets, and wearable devices for applications such as augmented reality (AR), virtual reality (VR), and gesture recognition.

Medical Device Companies

• Stryker Corporation: https://www.stryker.com/
• Medtronic: https://www.medtronic.com/
• Zimmer Biomet: https://www.zimmerbiomet.com/

Medical device companies use MicroVision's lidar sensors for applications such as surgical navigation, patient monitoring, and diagnostic imaging.

MicroVision is a publicly traded company headquartered in Redmond, Washington, that develops laser beam scanning technology for various applications, including augmented reality and head-up displays. The company has been in operation since 1997 and has generated revenue through a variety of channels over the years.

Key Revenue Streams

1. Product Sales

• MicroVision sells its laser beam scanning (LBS) modules and other related products to original equipment manufacturers (OEMs) that incorporate them into their own devices.
• OEMs use MicroVision's LBS technology in a variety of products, including automotive head-up displays (HUDs), augmented reality (AR) glasses, and medical imaging systems.
• Estimated annual revenue from product sales: $10-$20 million

2. Licensing

• MicroVision licenses its LBS technology and patents to other companies in exchange for royalties.
• These licensing agreements provide MicroVision with a recurring revenue stream that is not tied to product sales.
• Estimated annual revenue from licensing: $5-$10 million

3. Government contracts

• MicroVision has received government contracts from agencies such as the U.S. Department of Defense (DoD) and NASA.
• These contracts typically involve the development and production of customized LBS solutions for specific applications, such as military targeting systems and space exploration equipment.
• Estimated annual revenue from government contracts: $5-$10 million

4. Other

• MicroVision also generates revenue from other sources, such as consulting and technical support.
• These revenue streams are typically small compared to the company's other key revenue streams.
• Estimated annual revenue from other sources: $1-$2 million

Total Estimated Annual Revenue

• Based on the estimated revenue ranges provided for each revenue stream, MicroVision's total estimated annual revenue is approximately $20-$42 million.

Note: MicroVision is not currently profitable and has been reporting net losses in recent years. The company's financial performance is subject to a number of factors, including the demand for its LBS technology, competition from other technologies, and the overall economic environment.

Tier 1 Suppliers

• STMicroelectronics Website: https://www.st.com/

• Texas Instruments Website.

Tier 2 Suppliers

• Amphenol Website: https://www.amphenol.com/

• Avnet Website: https://www.avnet.com/

• Digi-Key Website: https://www.digikey.com/

• Mouser Electronics Website: https://www.mouser.com/

• Newark Electronics Website: https://www.newark.com/

Other Key Partners

• Acuity Brands Website: https://www.acuitybrands.com/

• Bosch Website: https://www.bosch.com/

• Continental Website: https://www.continental.com/en/

• Denso Website: https://www.denso.com/global/en/

• Hella Website: https://www.hella.com/

• Hyundai Mobis Website: https://www.mobis.co.kr/en/

• Infineon Technologies Website: https://www.infineon.com/

• Intel Website: https://www.intel.com/

• LG Electronics Website: https://www.lg.com/

• Magna International Website: https://www.magna.com/

• NXP Semiconductors Website: https://www.nxp.com/

• Osram Website: https://www.osram.com/

• Panasonic Website: https://www.panasonic.com/

• Philips Website: https://www.philips.com/

• Robert Bosch GmbH Website: https://www.bosch.com/

• Samsung Electronics Website: https://www.samsung.com/

• Siemens Website: https://www.siemens.com/

• Valeo Website: https://www.valeo.com/

• ZF Friedrichshafen AG Website: https://www.zf.com/

Key Cost Structure of MicroVision

MicroVision is a developer of laser beam scanning technology and solutions. The company's key cost structure includes:

• Research and development (R&D): This is the largest cost component for MicroVision, accounting for approximately 50% of total operating expenses. The company invests heavily in R&D to develop new products and technologies.
• Sales and marketing: This cost component accounts for approximately 25% of total operating expenses. The company incurs costs for sales staff, marketing campaigns, and customer support.
• General and administrative (G&A): This cost component accounts for approximately 25% of total operating expenses. The company incurs costs for legal fees, accounting fees, and other administrative expenses.

Estimated Annual Cost

The estimated annual cost for MicroVision's key cost structure is as follows:

• R&D: $50 million
• Sales and marketing: $25 million
• G&A: $25 million

Total: $100 million

It is important to note that this is just an estimate. The actual cost structure may vary depending on a number of factors, such as the company's business strategy, market conditions, and competitive landscape.

Sales Channels

MicroVision primarily sells its products through the following sales channels:

• Direct Sales: MicroVision sells directly to customers such as OEMs, integrators, and end users through its sales force and website.
• Distribution: MicroVision has a network of authorized distributors that resell its products to system integrators, value-added resellers (VARs), and end users.
• Online Sales: MicroVision sells its products online through its website and e-commerce platforms such as Amazon.
• OEM Sales: MicroVision sells its components and modules to OEMs that incorporate them into their own products.

Estimated Annual Sales

MicroVision's annual sales have fluctuated in recent years. The company's latest financial statements show the following sales figures:

• 2022: $43.6 million
• 2021: $43.8 million
• 2020: $27.5 million
• 2019: $18.8 million

Sales by Product Category

MicroVision's sales are primarily driven by the following product categories:

• Automotive: MicroVision's automotive products include lidar sensors, augmented reality (AR) displays, and other components for autonomous driving and advanced driver-assistance systems (ADAS).
• Consumer Electronics: MicroVision's consumer electronics products include interactive projection systems, holographic displays, and head-mounted displays (HMDs).
• Industrial: MicroVision's industrial products include lidar sensors, machine vision systems, and other components for robotics, automation, and logistics.
• Medical: MicroVision's medical products include lidar sensors, holographic displays, and other components for medical imaging and surgical applications.

Sales by Region

MicroVision's sales are geographically diversified across the following regions:

• Americas: Approximately 50% of MicroVision's sales are generated in the Americas, primarily in the United States.
• Europe: Approximately 25% of MicroVision's sales are generated in Europe.
• Asia-Pacific: Approximately 25% of MicroVision's sales are generated in the Asia-Pacific region, particularly in China.

Growth Strategies

MicroVision is focused on expanding its sales by pursuing the following growth strategies:

• Expanding into new markets, such as industrial and medical applications.
• Increasing its direct sales efforts.
• Partnering with strategic OEMs.
• Investing in product development and innovation.

MicroVision's Customer Segments

MicroVision primarily targets three customer segments:

• OEMs (Original Equipment Manufacturers):
  • Consumer electronics companies (e.g., smartphone, headset, and TV manufacturers)
  • Automotive companies (e.g., car and truck manufacturers)
  • Industrial companies (e.g., manufacturers of medical devices, robotics, and logistics systems)
• Tier-1 Suppliers:
  • Companies that provide components and subassemblies to OEMs in the consumer electronics, automotive, and industrial sectors
• Government and Military Agencies:
  • Government agencies responsible for defense, security, and infrastructure
  • Military forces worldwide

Estimated Annual Sales by Customer Segment

MicroVision does not publicly disclose detailed sales figures by customer segment. However, based on industry estimates and the company's recent financial performance, the following approximate breakdown can be provided:

• OEMs: 60-70% of estimated annual sales
  • Consumer electronics: 40-50%
  • Automotive: 15-20%
  • Industrial: 5-10%
• Tier-1 Suppliers: 20-25% of estimated annual sales
• Government and Military Agencies: 10-15% of estimated annual sales

Please note that these estimates are subject to change based on market conditions and the company's ongoing business development efforts.

MicroVision's Value Proposition

Core Value Proposition:

MicroVision is a technology company that develops and manufactures cutting-edge optical solutions for various industries, including automotive, consumer electronics, and industrial markets. Its core value proposition is:

• Advanced Optical Technologies: MicroVision's expertise in micro-optics, holography, and waveguide technologies enables it to create innovative optical solutions that meet the evolving needs of its customers.

Target Market and Value to Customers:

1. Automotive Industry:

• Enhanced Safety and Driver Assistance: MicroVision's lidar sensors provide high-resolution, reliable object detection and ranging, enhancing safety and enabling advanced driver assistance systems (ADAS).
• Autonomous Driving: MicroVision's lidar technology plays a crucial role in autonomous driving by accurately mapping the surrounding environment and detecting obstacles.

2. Consumer Electronics:

• Immersive Displays: MicroVision's micro-display and waveguide technology enables compact, high-resolution displays for augmented reality (AR) and mixed reality (MR) devices, creating immersive experiences.
• Portable Projection Solutions: MicroVision's compact laser projection systems offer portable, high-quality projection solutions for mobile and home entertainment applications.

3. Industrial Markets:

• Precision Measurement and Inspection: MicroVision's optical sensors are used in industrial automation and manufacturing for precise measurement, inspection, and quality control tasks.
• Medical Applications: MicroVision's optical technology enables advanced medical imaging systems and devices for improved diagnostics and treatment accuracy.

Key Value Drivers:

• Technological Innovation: MicroVision's continuous investments in research and development drive its technological leadership and enable it to offer cutting-edge solutions.
• Compact Size and High Performance: MicroVision's optical systems are known for their compact design, lightweight form factor, and high performance, meeting the demands of modern applications.
• Scalability and Cost-Effectiveness: MicroVision's manufacturing capabilities allow for scalable production, ensuring cost-effectiveness and meeting the volume requirements of various industries.
• Partnerships and Ecosystem: MicroVision collaborates with industry leaders and leverages strategic partnerships to enhance its product offerings and address customer needs across different markets.

Benefits to Customers:

• Innovation Leadership: Access to advanced optical technologies that drive innovation and differentiation in their products or services.
• Improved Product Performance: Enhanced safety, accuracy, and immersive experiences through integration of MicroVision's optical solutions.
• Simplified Integration: Compact and scalable optical systems that seamlessly integrate into existing designs, reducing development time and costs.
• Competitive Advantage: Unlocking new market opportunities and gaining a competitive edge by leveraging MicroVision's technology and expertise.

MicroVision, Inc. Risk Factors

Investment Risks:

• Concentration in Medical and Automotive Markets: MicroVision's revenue is heavily dependent on sales to a limited number of customers in the medical and automotive industries. A decline in demand or loss of contracts in these markets could significantly impact the company's financial performance.
• Competition from Larger Companies: MicroVision faces competition from larger, well-established technology companies with greater resources and market share. These competitors may have advantages in研发, production, and marketing.
• Dependence on Key Personnel: MicroVision is heavily dependent on the knowledge and expertise of its key management and technical personnel. The loss of these individuals could disrupt the company's operations and development plans.
• Limited Production Capacity: MicroVision currently has limited production capacity and relies on third-party manufacturers to produce its products. Delays or disruptions in production could impact the company's ability to meet customer demand.
• Intellectual Property Protection: MicroVision's business relies on the protection of its intellectual property, including patents and trademarks. The company may face challenges in enforcing its intellectual property rights, which could impact its competitive advantage and financial performance.

Financial Risks:

• Negative Cash Flows: MicroVision has historically generated negative cash flows from operations and has relied on external financing to fund its operations. The company may face difficulties in raising additional capital if needed.
• High Operating Costs: MicroVision's operating costs, primarily related to研发and selling, general, and administrative expenses, are substantial. The company may struggle to manage its costs, which could impact its profitability.
• Depreciation and Amortization Expenses: MicroVision capitalizes certain development costs and amoritizes them over the estimated useful life of the related assets. This can lead to depreciation and amortization expenses that reduce the company's net income.
• Impairment of Goodwill and Intangible Assets: MicroVision may experience impairments of goodwill or intangible assets, which could impact its financial statements.
• Debt Covenants: MicroVision has outstanding debt with covenants that restrict certain activities and require the company to maintain specified financial ratios. Failure to comply with these covenants could result in default and acceleration of the debt.

Operational Risks:

• Technology Development Risks: MicroVision's products are based on proprietary technology that is still under development. The company may encounter technical challenges or delays in bringing its products to market.
• Manufacturing and Supply Chain Disruptions: MicroVision relies on third-party manufacturers and suppliers for the production and delivery of its products. Disruptions in these relationships could impact the company's ability to meet customer demand.
• Regulatory Compliance: MicroVision's products are subject to various regulatory requirements, including from the FDA. Changes in regulatory requirements or delays in obtaining regulatory approvals could impact the company's operations and financial performance.
• Environmental and Social Risks: MicroVision's operations may be affected by environmental, social, and governance (ESG) risks, such as climate change, data privacy, and supply chain sustainability. Failure to address these risks could impact the company's reputation and financial performance.
• Legal and Compliance Risks: MicroVision may be subject to legal and compliance risks, such as product liability claims, patent infringement disputes, and antitrust investigations. These risks could result in fines, penalties, or reputational damage.