MicroVision, Inc.

Good afternoon and welcome to the Microvision fourth quarter and full year 2025 financial and operating results conference call. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. At this time, all participants are in this lonely mode. And at the end of today's presentation, there will be an opportunity to ask questions via 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, please press star 1 on your phone to enter the Q&A queue. Please note this event is being recorded. I would now like to turn the conference over to Drew Markham. Please go ahead.

Thank you, Paul. Good afternoon. I'm here today with our Chief Executive Officer, Glenn DeVos, and our Interim Chief Financial Officer, Steve Arenowich. Following their prepared remarks, we will open the call to questions. Please note that some of the information you will hear in today's discussion will include forward-looking statements, including, but not limited to, strategic plans, acquisition benefits and risks, expectations regarding customer engagement and product deliveries, go-to-market strategies, product performance and pricing, market landscape and opportunities, cash flow forecasts, liquidity and the impacts of recent financing activities, availability of funds and access to capital, expected revenue, operating expenses, and cash balances, as well as statements containing words like believe, expect, plan, and other similar expressions. These statements are not guarantees of future performance. Actual results could materially differ 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 8K 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 would like to turn the call over to Glenn DeVos, our Chief Executive Officer. Glenn?

Thanks, Drew. We have a lot to cover, and I want to start today's call by sharing our view of the significant changes we see happening in the broader LIDAR market, what we call LIDAR 2.0. and how we are building Microvision to lead in this new era. When I reflect on the last 10 years or so in our industry, what we refer to as LiDAR 1.0, it was clearly a technology race. Companies operated with a Silicon Valley mindset, putting hardware first, chasing best-in-class specs. The prevailing thought was that the best technology would lead to wins and that the volume would drive down costs, which would in turn lead to mass adoptions. The challenge with this startup mentality is that it was at odds with the realities of how the industry operates. Long pre-development and sourcing cycles followed by uncertain volumes are recipe for fragile revenue, heavy burn rates, and has led to consolidation in the space. What Microvision defines as LiDAR 2.0 isn't driven by technology, but rather by providing value to our OEM customers. It's not about winning with a single most impressive sensor, but rather it's about achieving scalable deployments across real-world platforms that drive long-term growth and margins. The transition from LIDAR 1.0 to LIDAR 2.0 is now underway. Looking across our industry, incumbents will face significant challenges in navigating this shift, for example. Hardware-centric players have impressive technology but the wrong economics, embracing a mindset of volume will fix price, while also failing to leverage the value that software can deliver. Automotive-only players have deep focus, but their single-threaded revenue creates risk when faced with program delays, low option take rates, or tightening budgets. Industrial players have revenue prospects in the short term, But the current electromechanical sensor architectures with their associated high cost structures are vulnerable to the emerging high performance solid state sensors with their significant lower cost basis. These challenges require a fundamentally different approach and success in LiDAR 2.0 will come to companies that can excel in four key areas. These include First, having a scalable product portfolio that enables participation in diversified end markets, enabling robust revenue streams and achieving scale across the business. Taking an open approach to software that both drives down hardware costs while also enabling our customers to more effectively manage their applications and systems. hitting the right price point with a hyper-focused design-to-cost approach that enables our OEM customers to unlock value in their end markets, and embracing automotive-grade execution coupled with fiscal discipline. The new Microvision has been built to lead in this LiDAR 2.0 era. So why are we feeling so confident? It's really because we have the following capabilities. First, we have the right portfolio. Through the acquisition of Luminar and ScanTel, MicroVision now has the most complete and robust LiDAR technology portfolio. MicroVision's Muvia sensors offer compact, cost-effective short-range dollar state sensing with applications in all of our end markets. We are now seeing the anticipated interest in Muvia S following its launch at IAA last September with multiple customer trials for industrial and automotive applications. Our iris and halo sensors acquired from Luminar offer long range sensing for high speed use and it's a perfect fit for automotive and security and defense. Our 1550 nanometer FMCW sensor acquired from Scantinel provides ultra long range sensing with initial applications in automotive and security and defense. The combined software products, Mosaic and Sentinel, now provide a complete end-to-end capability from silicon to point cloud to perception with advanced AI-based features which can easily be integrated and configured by our customers leveraging our open software framework. With this product portfolio, Microvision is now equipped with the solutions to serve the automotive, the industrial, and the security and defense markets with a scalable set of hardware and software solutions. I want to take a moment, though, to highlight the emerging needs in the security and defense sector that are of increasing importance to Microvision. We completed our proof of concept phase for our drone and ground-based autonomy platforms in Q4 of last year, and we are now working closely with our defense advisory board members as part of our business development and customer engagement phase. With our drone-based Muvia Air and our newly acquired Iris and Halo products, we have the right products at the right time to enable real-time drone-based mapping and perception as well as ground-based autonomy. The ongoing shipments of Muvia L to a European customer was an important start for us in this space and validates the need for these applications to use robust solid-state solutions. We will be publicly showcasing our capabilities over the course of the next months as we ramp up our efforts in this important market. Our production technology, our U.S. and German footprint, as well as our U.S. manufacturing capability, position Microvision to be a leader in the security and defense space. Now, in addition to our portfolio, Microvision's use of software is a clear differentiator. The new Microvision shifts our center of gravity from hardware bragging rights to software that lowers costs and expands capability. Our focus on advanced software-centric signal processing through the full stack continues to enable Microvision to drive down the cost of the sensor hardware. This strategy follows a very similar blueprint to what we did in vision and radar, where the move to software-defined sensors was a key step in achieving cost levels that drove mass adoption and achieving scale for these technologies. Ladder will follow the same path, but we are making it happen much faster. Additionally, our open software framework completely changes how our customers can utilize and leverage the capability of our sensors. It gives them full control of their system development and integration, opening up new value creation opportunities for them. And finally, we're accelerating revenue. The new microvision is converting existing commercial demand and customer relationships into shift product and revenue. And this is happening now. Following the Luminar acquisition, our top priority has been to restart those commercial relationships and contracts where I'm meeting personally with our Iris and Halo customers. In the first month since the acquisition, we've already shipped Iris units as we transfer contracts and POs and reestablish commercial relationships in the production schedules. The customer feedback has been very positive, with strong interest in Microvision's post-acquisition combined product roadmap, where we can be a total solution provider to them. Illuminar Acquisition also significantly expands our market assets by bringing approximately 30 new customer relationships and many more incremental prospects to Microvision. It also enables us to offer new sense of solutions to existing Microvision customers, This cross-pollination is further accelerating our commercial traction. Additionally, we began shipments of MOVIA-L in December to an EU Security and Defense OEM with repeat orders continuing in 2026. As I talked about earlier, we are very pleased with the momentum in this segment where we see opportunities to expand near-term revenue. And then finally, as I mentioned, MOVIA-S continues to gain interest and traction with multiple customer engagements and we remain on track for our Q4 Muvia S industrial launch. We could not be more excited about Muvia S as it is truly the right product at the right price and at the right time. We are also confident that our operations can support this accelerated revenue, but we know that the proof is in the execution. The new microvision is guided by experienced leaders with proven reputations in the automotive industry. With automotive-grade DNA and a collaborative approach to partnering with customers, the company is poised to meet commitments, milestones, and deliveries. Now, to reiterate my remarks from last week's fireside chat, I want to be very clear about our thinking regarding our recent Luminar and Scantanel acquisitions and the critical role they play in enabling Microvision to lead the LiDAR 2.0 era. First, they round out our strategy of offering the right product at the right price. By integrating these assets with micro-visions, we now offer the most comprehensive and robust LiDAR portfolio in the industry. We expanded our ability to serve different industries, use cases, and price points. Not only will this open up immediate revenue streams in automotive, industrial, and security and defense, it will also make our business more resilient and diversified. The acquisitions accelerate revenue. In particular, the Luminar acquisition brought active commercial programs and established customer relationships that pull forward our timeline to scale. We've made significant projects in resetting these commercial relationships, and as I mentioned earlier, are now shipping products to multiple customers. This approach accelerates Microvision's path to revenue compared to achieving this organically, which would have taken much longer. And third, these acquisitions have added depth to the talented MicroVision team with expertise in hardware, software, and advanced perception, all with proven experience navigating automotive requirements and manufacturing at scale. This has enabled us to make the recently announced decision to consolidate our Redmond engineering, manufacturing, and supply chain management operations into our Orlando site. This marks the key step in realizing the synergies we identified as part of the acquisitions, as well as improving our overall operating efficiency. Orlando will be our U.S.-based manufacturing site for our full lineup of products, which is serving the security and defense sector and will be critical for that sector. It will also complement our ongoing high-volume contract manufacturing strategy. In summary, we didn't acquire Luminar or Scantonelle to simply grow bigger. We acquired them to move faster. We have also continued building out our executive leadership team with proven credibility across the markets we serve, including automotive. Executives like Fabio Lora, who's leading our operations, supply chain management, and quality, as well as Greg Scharnbrock, who joined us in November as our vice president of global engineering. What I've shared with you today serves as the basis for the new microvision strategy and how we will lead in the area of WIDAR 2.0. It's a strong and clear blueprint to guide the company, and these steps are already well underway. I would now like to invite Steve to review our GAAP fourth quarter and full year financial performance.