MicroVision, Inc.

Today and welcome to the Microvision Third Quarter 2021 Financial and Operating Results Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Lindsay Sibord. Please go ahead.

Thank you. Good afternoon and welcome, everyone, to Microvision's third quarter 2021 Financial and Operating Results Conference Call. Joining me on today's call are Sumit Sharma, Chief Executive Officer, and Steve Holt, Chief Financial Officer. The information in today's conference call includes forward-looking statements including statements regarding product development, potential product sales, scalability of technology and designs, expected performance of products, comparisons with competing products or technology, market opportunities and future demand, advantages of our technology, business and strategy opportunities and execution, expected customer and partner engagement, product development applications and benefits, commercialization of our technology, strategy for customer sales, maximizing shareholder value, managing costs, future royalties, projections of future operations and financial results, availability of funds, as well as statements containing words like potential, intend, believe, expects, plans, could, likely, and other similar expressions. These statements are not guarantees of future performance. Actual results could differ materially from the future results implied or expressed in the forward-looking statements. We encourage you to review our various SEC filings, including our annual report on Form 10-K filed on March 15, 2021, and our Form 10Qs, filed on April 30, 2021, and August 12, 2021, as well as various other SEC filings made from time to time in which we discuss risk factors associated with investing in microvision. These risk factors could cause results to differ materially from those implied or expressed in our forward-looking statements. All forward-looking statements are made as of the date of this call, and except as required by law, we undertake no obligation to update this information. In addition, we will present certain financial measures on this call that will be considered non-GAAP under the SEC's Regulation G. For reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure, as well as for all of the financial numbers presented on this call, please refer to the information included in our press release and in our Form 8-K, dated and submitted to the SEC today, both of which can be found on our corporate website at ir.microvision.com under the SEC Filings tab. This conference call will be available for audio replay in the Investor Relations section of Microvision's website at www.microvision.com. And now I'd like to turn the call over to Sumit Sharma. Sumit?

Thank you, Lindsay. Good afternoon, everyone. I would like to start off by walking you through our progress in the last quarter, including our product introduction at the IAA Munich Mobility Show and our priorities to frame the year ahead of us. We have made progress since our last call. In September, we introduced our LiDAR sensor at the Munich Mobility Show. It was a great opportunity to showcase our technology alongside our competitors. ADAS safety and the need for LiDAR as a central sensor was part of the story for every OEM and Tier 1 that exhibited at the show. The largest volume opportunity and recurring revenue resides with OEM programs for automotive LiDAR sensors, which has been our focus for the last several years. I can say with confidence that the race to secure an OEM program for level two plus and level three ADAS systems with LiDAR as the central sensor is still wide open. No LiDAR company has yet secured an OEM deal that is recorded on its financial statements as meaningful backlog. I believe Microvision is ahead of all of our competitors in several key areas. Based on our work, with a leading global consulting firm. We expect OEMs to make partnership decisions after careful and thorough evaluation in the next 16 months for launch of new EV models with more advanced ADAS features, which will start to ship in 2025 with a larger global rollout of a battery operated electric vehicle is expected in 2026. This could represent LiDAR unit volumes in the millions in the future. I am excited to report that we have received very positive feedback from our recent OEM and Tier 1 meetings. OEMs tell us that our sensor is of interest because it demonstrates best-in-class cost advantages, size, key features, and demonstrable scalability for production and quality requirements. We believe our hardware and software solution excels in each of these categories, and we have received acknowledgement of this in our meetings with OEMs and Tier 1 companies. Potential customers and partners have consistently been impressed by the compact size of our sensor and the number of features packed inside. Our capability to provide highest resolution at range with dynamic field of view and velocity field while running at 30 hertz is a major accomplishment of which we are very proud of. The 30 Hertz could enable higher speed operation of automatic emergency braking, forward collision warning, and automatic emergency steering ADAS features that are expected to be the centerpiece features for future vehicles. Our technology will also provide larger system cost savings than competitive solutions an important factor in OEM's final decision process. An ADAS solution integrated with our LiDAR would require a lower number of sensors to meet ADAS safety requirements and result in a lower overall system cost compared with a sensor stack utilizing lower resolution and lower frame rate LiDAR solutions. Working with a leading global management consulting company has allowed us to confirm this enable us to more widely start introducing our product to OEMs. As previously stated, we expect to demonstrate our integrated software and hardware ADAS solution by June 2022 that will demonstrate higher levels of ADAS safety features that OEM desire. As I recently discussed, our technology is built on well-known technologies for lasers, photo detectors, MEMS, and custom silicon components. There are no exotic materials in our sensor, so we can quite easily show our cost scalability to OEMs. Microvision know-how is combining these standard materials with our algorithms, software, and custom silicon in what creates incredible value through our intellectual property. Additionally, with our history of delivering product for world-class customers like Microsoft for challenging applications, demonstrates the pedigree of the company, and provides potential customers the confidence in our ability to meet and exceed their expectations. As I frame our priorities for the next year, working to achieve an OEM or Tier 1 partnership remains our focus. Our team is working around the clock on polishing our sample for OEM evaluations that are expected to continue well into 2022. The OEMs require a more specialized product for automotive ADAS than a product for the general market. Because of the large and valuable OEM opportunity ahead of us, we have decided to focus our attention on the OEM business. what we call strategic sales. We will continue to prepare a product for direct sales, but at a slower pace. We expect it will be available in the middle of 2022. I believe we need to maintain our focus on strategic sales given the timeframe for OEM decisions and the value this strategy could represent to our investors. One of the questions I often get from investors is my provision plan to go it alone. Let me clarify my thoughts on this. The opportunity for an OEM program is tremendous and represents significant value for our shareholders. But no company can go it alone in this space for such a safety-critical system. Partnerships will be required with OEMs and Tier 1s and others in their stack to be able to deliver a solution. In the near term, industry experts expect a huge amount of consolidation in the ADAS space where recurring significant revenue is not expected until 2025 and beyond. Microvision is in a strong position with our hardware and software built on decades of relevant development and solid intellectual property rights. Before I turn the call over to Steve to discuss Q3 results, let me comment on the CFO announcement we made last week. I would like to start off by thanking Steve for his eight and a half years of dedication to Microvision and helping the company navigate through challenging times to the most financially secure level it has been in its history. Steve and I have worked closely through my time at the company and I will miss his focus and friendship. We also announced Anubhav Verma will be joining us on November 15th as our new CFO. I'm excited that he brings with him great energy and solid experience from years executing in capital markets and investment banking transactions. I'm looking forward to working with him and the expertise he will bring to our management team. In other news of interest to our shareholders, Dave Allen, Microvision's longtime IR consultant, is retiring at the end of November. I am very appreciative of Dave's work over the years supporting the company's communication with shareholders. He will be missed. I would like to end this update by thanking our shareholders for their enormous support and confidence in the company. I would also like to sincerely thank our employees for their continued hard work and dedication in getting us here and remaining focused on the important work ahead. Now, let me turn the call over to Steve to discuss the third quarter results, and then I'll be back to provide some additional perspective. Steve?