MicroVision, Inc.

Good day and welcome to the Microvision Third Quarter 2022 Financial and Operating Results Conference Call. At this time, all participants are in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. At the end of today's presentation, there will be an opportunity to ask questions via a chat line. Investors can submit their questions within the meeting webcast by typing them into the Q&A button on the right side of your viewing screen. Analysts who publish research may ask questions on the phone line. For analysts to ask a question on the phone line, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please also note this event is being recorded. I would now like to turn the conference over to Drew Markham. Please go ahead.

Thank you, Operator. I am pleased to be joined today by our CEO, Sumit Sharma, and our CFO, Anubhav Verma. Following their prepared remarks, we will open the call to questions. Please note that some of the information you'll hear today will include forward-looking statements, including, but not limited to, statements regarding our product development and performance, comparisons to our competitors, market opportunity, product sales and future demand, business and strategic opportunities, customer and partner engagement, projections of future operations and financial results, availability of funds, as well as statements containing words like potential, believe, expect, plan, 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 SEC filings, including our most recently filed annual report on Form 10-K and quarterly reports on Form 10-Q. These filings describe risk factors that could cause our actual 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 the financial data 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 on the Investor Relations section of our website at www.microvision.com. Now, I'd like to turn the call over to our CEO, Sumit Sharma. Sumit?

Thank you, Drew. Good afternoon, everyone, and thank you for joining us today. Q3 represents another quarter of tremendous progress at Microvision. This includes delivering on a number of critical milestones on our go-to-market strategy. As we approach the end of calendar 2022, Microvision is better positioned than ever and offers a complete hardware and software solution that exceeds the expectations and requirements of OEMs for their planned RFQs in 2023 and beyond. I will cover this topic in more detail later in the call. I would like to start by highlighting three important accomplishments in this quarter that have put us in a leadership position heading into 2023. First, we delivered on our commitment by achieving classroom compliance and beginning to sell samples to OEMs and Tier 1s. Classroom compliance is a critical milestone. the importance of which cannot be overstated. Microvision has more than 20 years of experience and expertise in developing products based on laser beam scanning, so the Class 1 compliance process is not new to us. It takes an incredible amount of engineering and technology to develop a solution that meets Class 1 safety criteria, while also meeting the performance standards set out by OEMs. We view our patented automatic emissions control system as one of the numerous key differentiators that make the Microvision solution superior by combining safety and performance. Thanks to our experience and our innovative approach to safety through our patented AEC system, we are proud to be the first LiDAR product to achieve classroom compliance at a unit level offering pixel-by-pixel safety. This news was well received by OEMs. It shows our commitment to safety and how it will further enhance the functional safety OEMs can offer to their ADAS system in a cost-effective 905 nanometer laser LIDAR, the only laser technology node that has shipped in volume to automotive standards. Our technology unlocks all the benefits of 905 nanometer lasers without the high cost and high power structures of 1550 nanometer products. Achieving class one paved the way for a second key Q3 milestone, delivering samples to OEM and tier one customers. The start of sample sales for the first deliveries made within the quarter is a major achievement for the company. I am proud of our teams in Redmond and Nuremberg for achieving this important milestone. This is a very big step towards potentially being selected by automakers as a partner to power their next generation safety programs. These samples will allow OEMs to continue to evaluate our solution in their own test environments as they look towards RFQs expected in first half of 2023. I will elaborate on this later in the call. The start of sample sales also means that we can begin developing our non-automotive channels. We expect new sources of revenue from these initiatives starting next year. Anubhav will cover this potential opportunity during his prepared remarks. Finally, one of our big accomplishments to date has been traveling nearly 7,000 kilometers to promote our technology to OEMs across Europe. These relationships have allowed us to gather meaningful feedback and to align our program milestones with their upcoming RFQs in 2023. We are on track with our samples and development to participate in these RFQs. We introduce MAVEN-DR, our low-profile, high-resolution, and dynamic range cost-competitive sensor, and we continue to receive validation that its performance, size, and future costs are the best that OEMs have reviewed to date in any A sample. This positions us well for the next phase of OEM RFQs requiring LiDAR. To put it simply, our current hardware meets or exceeds all requirements and puts us in a leadership position to compete in the 2023 RFQs. I would now like to move our focus to talking about the key features OEMs are looking for in 2023 and beyond in LiDAR technology and how Microvision is positioned as best in class. First, we understand that OEMs are looking for a low-profile sensor with low power requirements or roof-line mounting without ugly sheet metal bumpouts. Low profile is of utmost importance because it offers more flexibility in terms of where and how it can be effectively mounted and sleekly integrated into the car's design. Only Microvision Slim Design allows for the desired flexibility. Plus, a planned ASIC will provide an object-level interface from the LiDAR The result of these two attributes together in a small footprint combines for the lowest power system solution. Maven is designed with a low profile and a mere 18 millimeter tall aperture window. There is no competition in the market with a sample ready now that offers such a low profile sensor. This is incredibly thin. Our meticulous design hardware is arriving at the perfect time and this is what OEMs are looking for future models. Next, volumes expect extremely high resolution that makes it possible to detect small objects and road surfaces at longer ranges at high speeds. This translates to 200 plus meter range, 0.04 degree vertical angular resolution streaming at 30 hertz with object level software interface in line. These are our core features. The quality of the MicroVision point cloud is unmatched. Our resolution and range are second to none. The raw unaltered LiDAR point cloud we have shared through the late summer and fall are a testament to this. With our proprietary pixel by pixel classroom solution, we're able to achieve long range and resolution OEMs desire. No other current solution in production or promise by any competitor comes close. While other competitors may be sharing data that uses low frame rate super resolution or other sensor fusion techniques to augment gaps in their raw LiDAR data, MicroVision videos are pure, 100% LiDAR. We offer the clearest, most actionable picture of the road ahead. OEMs appreciate this authenticity during live demos. Next, OEMs have reiterated the importance of hardware with an established supply chain and known costs. Maven is built with materials already in OEM supply chains today. This means our solution is scalable, sourceable, and supports a lower cost structure, and with no exotic materials, it guards against supply chain challenges. Finally, object-level perception software running on a custom ASIC will be another important criteria for OEMs in their 2023 RFQs. This capability gives them an efficient and scalable approach to building new and differentiated safety features in a timely way. Only microvision solution is built from the ground up with this approach in mind. Our fully pipelined LiDAR means that control of the entire system is happening in the custom ASIC in real time. This unlocks massive opportunities for lower cost solutions that's reliable, secure, and delivers high performance by allowing all the systems to operate in parallel. I'm more confident than ever I've ever been that Microvision's positioned for success in 2023 and beyond. As I look ahead to 2023, we have several focus areas for customer acquisition and continuing to advance our technology and manufacturing capabilities. From the customer acquisition standpoint, we are focused on several OEM RFQs targeted for first half 2023. This is based on their timeline. As I've outlined on today's call, I'm confident that the maturity of our technology, OEM-focused business model, and track record for partnering and delivering solutions positions us well for success. In 2023, we expect to achieve a number of new technology milestones including our analog and digital ASIC launching, as well as establishing new automated manufacturing lines that will prepare us to scale up production closer to our OEM customers. Our LIVA hardware is already breathtakingly thin today, a mere 18 millimeter aperture window with less than 45 millimeter sensor height. To put this in context, the face of an Apple watch is just 44 millimeters. To pack the optics, power management, and digital systems into this design is truly a feat of engineering. I applaud our team for achieving this. With the introduction of our ASIC, we will be able to reduce the overall footprint of the hardware even further by making Maven even more compact than it already is today. Before handing the call over to Anubhav, I'd like to sum up these key thoughts. We continue to offer the best in class sensor ready for OEM RFQs expected in 2023. We have visibility into multiple customer programs for low profile and low power sensors are required to allow mounting along the roofline. We continue to offer greater than 10 million points per second at 30 Hertz. This enables key features like small object detection and will expand object level interface. Again, we are the only LiDAR company that can offer this. And with a strong balance sheet and disciplined operational expenses, we remain in a strong position to execute. While I expect the LiDAR space will experience consolidation in the months ahead, Microvision is strongly positioned and prepared to deliver to customers. Our ACE samples are shipping to customers now. And with a pedigree for delivering on development agreements, Microvision is in an unmatched position to become a trusted partner to a top tier OEM. The ADAS market with LIDAR enabled safety has real demand for multiple OEMs instead of being captive to ebbs and flow of a single customer demand. This is a real demand for multiple years of programs from OEM that pioneer automotive safety. Some realignment in the sector will happen in the coming quarters. But with our strong balance sheet and opportunity ahead, I expect us to remain a strong contender. I have never been more confident in my provision's future than I am today. I'd now like to hand the call over to Anubhav to discuss financial performance. Anubhav?