Microvision, Inc. Q4 FY2025 Earnings Call

Good afternoon, and welcome to the MicroVision Fourth Quarter and Full Year 2025 Financial and Operating Results Conference Call. 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, Glen DeVos; and our Interim Chief Financial Officer, Steve Hrynewich. 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 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 would like to turn the call over to Glen DeVos, our Chief Executive Officer. Glen?

Thanks, Drew. We have a lot to discuss, and I want to begin today's call by sharing our perspective on the major changes occurring in the broader LiDAR market, which we refer to as LiDAR 2.0, and how we are positioning MicroVision to excel in this new era. Reflecting on the past decade in our industry, known as LiDAR 1.0, it was clearly a race focused on technology. Companies approached it with a Silicon Valley mindset, prioritizing hardware and pursuing top specifications. The common belief was that superior technology would translate to success, with increased volume driving down costs and leading to widespread adoption. However, this start-up mentality clashed with the realities of the industry's operations. Long development and sourcing timelines, coupled with unpredictable volumes, resulted in fragile revenues and significant losses, prompting consolidation within the sector. MicroVision's concept of LiDAR 2.0 prioritizes delivering value to our OEM customers instead of just technological supremacy. It’s about realizing scalable deployments on real-world platforms that foster long-term growth and profitability. We are currently transitioning from LiDAR 1.0 to LiDAR 2.0, a shift that presents substantial challenges for incumbents in the industry. For instance, hardware-focused players may have impressive technology, but they struggle with economic viability, relying on volume to justify pricing while overlooking the substantial benefits software can provide. Automotive-centric firms have a deeply concentrated focus, which brings risks with program delays and budget constraints. Industrial players may have short-term revenue prospects, but current high-cost electromechanical sensor architectures are at risk from emerging high-performance, lower-cost solid-state sensors. Navigating these challenges requires a fundamentally different approach. Success in LiDAR 2.0 will come to businesses that excel in four critical areas: having a scalable product portfolio that allows entry into diverse markets, adopting an open software strategy to reduce hardware costs while aiding customers in managing applications, achieving optimal pricing through careful design, and maintaining automotive-grade execution alongside fiscal discipline. MicroVision is built to lead this LiDAR 2.0 era and we are confident in our approach due to several key capabilities. First, through our acquisitions of Luminar and Scantinel, we possess the industry's most comprehensive and robust LiDAR technology portfolio. Our MOVIA sensors provide compact, cost-effective sensing solutions for various applications, and interest in MOVIA S is increasing following its launch at IAA last September. Additionally, our IRIS and HALO sensors from Luminar offer high-performance sensing, ideal for automotive and security applications, while our Scantinel 1550 nanometer FMCW sensor targets ultra-long-range needs. Our combined software products, MOSAIK and SENTINEL, deliver complete solutions from silicon to perception, easily configured by customers through our open software framework. I would like to emphasize the emerging requirements in the security and defense sector, which are increasingly vital for MicroVision. We successfully completed the proof-of-concept phase for our drone and ground-based autonomy platforms last Q4 and are now engaging closely with our defense advisory board as we advance in business development. Our products, including the drone-based MOVIA Air and the newly acquired IRIS and HALO systems, position us well for real-time mapping and autonomy applications. The ongoing shipments of MOVIA L to a European defense customer mark an encouraging start in this area, confirming the demand for robust solid-state solutions. We plan to showcase our capabilities publicly in the coming months to intensify our focus in this important market. Beyond our product lineup, our innovative use of software serves as a clear differentiator. MicroVision's strategy shifts the emphasis from hardware specifications to software that reduces costs and enhances capabilities. Our advanced software-driven signal processing approach allows us to lower sensor hardware costs, paralleling our successful transition to software-defined sensors in vision and radar, which was essential in achieving mass adoption. We aim to replicate this success in LiDAR but at an accelerated pace. Our open software framework greatly enhances how customers can utilize our sensor capabilities, empowering them in system development and integration. We are also actively driving revenue growth. The new MicroVision is working to convert existing demand and customer relationships into tangible shipments and revenue streams. Since our acquisition of Luminar, we have focused on revitalizing commercial contracts where I am personally engaging with our IRIS and HALO clients. Within a month of the acquisition, we have shipped IRIS units and reinstated contracts and production schedules, and feedback from customers has been highly positive. The Luminar acquisition broadens our market access significantly with around 30 new customer relationships and additional prospects, which boosts our growth opportunities. We've already initiated shipments of MOVIA L to an EU defense OEM, with repeat orders anticipated through 2026. As previously mentioned, MOVIA S is gaining traction with numerous customer engagements, and we remain on target for its industrial launch in Q4. We are optimistic about MOVIA S as it aligns perfectly with market demands. Furthermore, we believe our operations can support this accelerated revenue, and our capability is proven through execution. The new MicroVision is helmed by experienced leaders with verified success in the automotive sector, positioning the company well to fulfill commitments and achieve milestones. To reiterate my key points from last week's discussion, I want to clarify our strategic vision regarding the Luminar and Scantinel acquisitions and their vital role in establishing MicroVision as a leader in LiDAR 2.0. They enhance our strategy of delivering the right product at the right price, creating a comprehensive LiDAR portfolio that allows us to serve varied markets and applications. This not only opens immediate revenue channels but also strengthens our business resilience. These acquisitions speed up our revenue generation, particularly through Luminar, which brought active programs and well-established customer relationships, shortening our timeline to scale. We are making significant strides in reestablishing these essential commercial links, leading to product transitions for multiple clients. This accelerates our revenue trajectory compared to a more extended organic growth process. Additionally, these acquisitions enrich the MicroVision team with skilled experts in hardware and software, along with substantial experience in automotive requirements and large-scale manufacturing. As a result, we are consolidating our engineering, manufacturing, and supply chain management operations into our Orlando site, a step crucial for realizing the synergies identified in the acquisitions and improving operational efficiency. Orlando will serve as our U.S.-based manufacturing hub for all products catering to the security and defense sector, complementing our high-volume contract manufacturing efforts. In summary, our acquisitions of Luminar and Scantinel were not merely for expansion; they were aimed at accelerating our growth. We are also enhancing our leadership team with professionals who have a strong track record in the sectors we target, including automotive. Leaders like Fabio Laura, overseeing operations and supply chain, and Greg Scharenbroch, our new Vice President of Global Engineering, embody this commitment. What I have shared today outlines the foundation of our new MicroVision strategy and our approach to lead in LiDAR 2.0. This solid strategy serves as a guiding blueprint for the company, with many initiatives already in motion. Now, I would like to invite Steve to discuss our GAAP fourth quarter and full year financial performance.

Thank you, Glen. For fourth quarter revenue, we reported $0.2 million primarily driven by hardware sales in the industrial sector. This compares to $1.7 million of revenue during the same period in 2024. On a full year basis, we reported $1.2 million of revenue in 2025 as compared to $4.7 million in 2024. The decline from both 2024 periods is a result of a last-time buy on a contract with an agricultural equipment customer to deliver legacy Ibeo sensors. Total operating expenses for the fourth quarter of 2025 were $25.3 million. This includes noncash charges of $13.4 million related to asset impairment, and $1.5 million of depreciation and amortization and offset by a net credit of $1.5 million of share-based compensation, primarily due to the forfeiture of PSUs from an executive departure in December. Adjusting for these noncash items, our cash-based operating expenses totaled $11.9 million. Compared to the previous quarter, including a one-time $1.2 million cash severance payment in the third quarter, our operating expenses were $0.9 million higher than Q3, and in line with our expectations. The increase is primarily related to the addition of our Aerial Systems team to bolster our competitiveness in the security and defense sector as we announced in November. On a full year basis for 2025, our total operating expenses were $65.5 million, which includes noncash charges of $13.4 million related to asset impairment, $5.8 million of depreciation and amortization, and $0.7 million of share-based compensation. Adjusting for these noncash items, our cash-based operating expenses were $45.5 million. As compared to full year 2024, our operating expenses declined $14.4 million or 24%, primarily driven by reduced purchase services and actions taken in 2024 to reduce head count and rightsize our business. This year-over-year decline in operating expense is a demonstration of our accounts management focus and cash-conscious mindset. Cash used in operations for the fourth quarter was $15.4 million. This compared to $15.1 million in the fourth quarter of 2024. On a full year basis, cash used in operations for 2025 was $58.7 million as compared with 2024 at $68.5 million. The year-over-year decrease of $9.8 million or 14% was primarily driven by our intentional reduction of operating expenses. Capital expenditures for the fourth quarter were in line with expectations at $0.2 million. This compares to $0.1 million during the same period in 2024. On a full year basis, capital expenditures were $0.7 million in 2025 and $0.4 million in 2024. For both periods, the year-over-year increase is primarily attributed to purchases of tooling equipment needed for the production of MOVIA S sensors scheduled to start in early Q4 of this year. In the fourth quarter, we incurred $29.4 million of noncash asset impairment and adverse purchase commitment charges, of which $16 million is accounted for as cost of revenue because it relates to inventory and commitments of our short-range MOVIA L sensor. The remainder of $13.4 million is accounted for as operating expense, primarily attributed to perception software and equipment for our long-range MAVIN sensor. The write-down of MOVIA L, MAVIN and Perception software results from a multi-factored analysis, including the progress of our next-generation short-range solution and the market readiness of the long-range solution that we recently acquired. With the recent announcement of our consolidation of operations from Redmond into our new Orlando facility, we are currently evaluating the impact to the 2026 financial statements and anticipate asset impairment charges of $8 million to $12 million related to our Redmond office and operating lease as well as people-related restructuring charges of $1 million to $2 million. On our balance sheet, at the end of the fourth quarter, we finished with $74.8 million in cash, cash equivalents and investment securities. We also have $43 million available under the current ATM facility. Subsequent to the end of 2025, we issued 2 new senior secured convertible notes in the aggregate principal amount of $43 million. The new notes will be used to repay the current outstanding principal balance and interest of $19.5 million on a current note with the remaining available for general operations. The new notes are redeemable in cash or shares of the company's common stock. With our strong leadership, depth and breadth of our product portfolio, financial discipline through operational cost management and capital raise activities, we are well situated to deliver our cost-efficient products that meet performance standards to our customers and capitalize on the significant revenue opportunities that the automotive, industrial and security and defense sectors have to offer. With our recent acquisitions, the LiDAR industry is consolidating into a handful of key players. MicroVision is well positioned to lead the LiDAR industry in these 3 verticals and offers a significant opportunity for shareholder value creation. I would now like to pass it back to Glen for closing remarks.

Thanks, Steve. This is a transformational time for MicroVision. Today, we've talked about the vision for a new MicroVision, a company built to lead in the new era of LiDAR 2.0. We shared how our strategy allows us to create value for customers in new markets and the steps we're taking to deliver the right portfolio with the right performance at the right price. We've also begun to demonstrate concrete steps as a testament to our focus on execution, shipping products against existing orders and prudent financial management. Turning now to guidance for calendar year 2026. We expect revenue to be in the range of $10 million to $15 million. This is based on our analysis completed to date of both prior MicroVision outlook going into 2026 as well as the now continuing Luminar revenue streams. This is a positive reflection of our ability to retain and convert prior Luminar contracts to ongoing MicroVision revenue. We expect cash use in operations plus CapEx to be in the range of $65 million to $70 million for the full year, which reflects a modest increase over 2025 due primarily to the acquisitions of Scantinel, Luminar as well as the addition of our Virginia-based aerial systems team. These additions have dramatically expanded our market access but with thoughtful and disciplined management of our cash burn. In summary, as we move into LiDAR 2.0, I'm very confident that MicroVision is positioned to lead this transition. We have the right portfolio and products to access multiple end markets. We are delivering the right performance at the right price. We have the management and engineering teams to deliver at automotive grade, and we have the financial discipline to ensure that we will continue to have access to capital and financing to achieve our growth plans. Our mission is clear. Our team is aligned, and we're focused on creating value for customers and shareholders. I'm excited about the path that lies ahead for the new MicroVision and LiDAR 2.0. Thank you, and we will now open the call for questions.

And the first question is coming from Jason Kolbert from Boral Capital.

Thanks for the guidance, $10 million to $15 million, that's for this year. How does that break between the automotive and industrial segment? And what kind of margins are we talking about on that revenue?

Steve, do you want to take that one?

So the breakdown of our revenue is mostly in the industrial space with the balance being in the automotive side. That's kind of where our key customers are that we brought over from the Luminar side, and that's the key customers that we're currently working with right now, developing those relationships, which is going to help us achieve our guidance in terms of our revenue situation. From a margin perspective, our margins definitely should be positive. We're still working on what that cost is going to be just based on the cost that we're going to be getting as we're evaluating those costs while we are doing the Purchase Price Allocation right now, but we do definitely see our margins to be positive this year.

And going forward beyond 2026, so what I'm trying to understand is how these 2 segments grow and what's the market potential in automotive, what's the market potential in everything else, the industrial?

As we look towards the future, especially as we approach the end of the decade, we anticipate growth in our revenue from the automotive sector, likely materializing around 2028 or 2029. This aligns with the timeline of automotive companies implementing their LiDAR and ADAS strategies. Currently, we are engaged in several RFQs to support these developments. The automotive segment is expected to become a significant part of our business towards the end of the decade. In the meantime, our focus will primarily be on the industrial sector, as Glen noted in his remarks. We are actively collaborating with various customers in this space. Additionally, we are addressing opportunities in the defense and security market. We have products slated for release mid-year that will be available for potential customers, and we are optimistic about growth in this area as well. The industrial and defense segments will serve as our bridge as we transition towards the automotive market, which will pick up steam towards the decade's close.

Yes, to provide some context, for the automotive sector, as Steve mentioned, we expect developments to occur later in the decade, with requests for information and requests for quotes aimed for a ramp-up starting in 2029 and 2030. Consequently, we anticipate seeing significant volumes in the automotive market around 2030 and 2031. This will be at scale, representing a considerable total addressable market exceeding a few billion dollars with significant opportunities. In the industrial sector, we expect some sales this year, but our primary focus is on the MOVIA S, which we launched in October. We expect MOVIA S sales to begin accelerating in the latter half of the year and to see strong growth through 2027. As orders and preorders come in throughout this year, we will provide a precise forecast for growth in 2027. Regarding security and defense, while this area is still emerging, we remain very optimistic. There is considerable attention on drones and their capabilities in autonomy, including real-time mapping in conflict zones and enhancing the perception of ground vehicles as we explore ground-based vehicle autonomy. We will evaluate these markets, and we believe they present significant growth potential, along with higher average selling prices compared to industrial and automotive segments. This creates an excellent opportunity for us to commercialize and capitalize on our intellectual property in these markets at appealing price points.

And just my last question is on the sales and marketing line. It just seems like a big line, right? You're spending a lot of money there. What is that money actually being spent on?

So the sales and marketing line, sorry, go ahead.

No. Well, why don't you complete your thoughts, Steve, and then I'll add my color.

Yes. I think most of our sales and marketing line, as of right now, we're kind of building our team up. We now have a team that's on a global basis. We're bringing over the Luminar team. So we've got a strong team that's going to help us drive forward this revenue opportunity. And we have an office in a couple of different locations that we're trying to continue with that team moving forward. And Glen, do you want to pass it on?

Since joining MicroVision almost a year ago, I have prioritized building a strong sales and marketing capability as CEO. We possess excellent technology, but to compete in sectors like automotive, industrial, and security and defense, having a competent and respected commercial organization is crucial. We have been growing that capacity organically even before the Luminar acquisition. This included efforts with the Defense Advisory Board to refine our strategy for security and defense, as well as adding talented individuals throughout the year. Recently, we have expanded our team by integrating the Luminar sales group, resulting in a capable sales and marketing team ready to take our portfolio to market. I am very pleased with this team, as this investment was essential for our business growth and acceleration. This is why we are in this position.

And the next question will be from Casey Ryan from WestPark Capital.

Glen, Steve, great update. So my first question is, I guess, this is sort of related to the Scantinel acquisition and the FMCW technology. Is that technology getting a lot of interest from defense? It sounds like maybe that's kind of the key thing with its range. I know it's historically been targeted trucking, but is that helping you sort of think defense is a bigger opportunity for you in particular, using FMCW versus some of the other product lines? Or is all the product lines being considered for multiple because I know there are so many applications in that defense space?

Yes, that's a great question. There has been a significant increase in demand from the defense sector for the technology for two main reasons. First, the 1550 nanometer wavelength is essentially invisible to night vision goggles, making it very appealing for night operations. Second, the FMCW architecture provides long-range capability. We are noticing interest in applications such as long-range drone detection, navigation, and mapping. When we acquired Scantinel, the team's primary focus was on the commercial vehicle market, but we are now seeing strong interest from the defense side as well. While there is still interest in commercial vehicles, the demand from defense is much stronger. In relation to your second question, we also see interest in other products, especially for security and defense. For example, short-range LiDAR like MOVIA S and MOVIA L, which operate at 940 nanometers and 905 nanometers, are excellent for terrestrial mapping. These products are less concerned about visibility because they can be used by low-cost drones performing mapping away from people, providing real-time perception and enhancing the capacity of ground-based vehicles and personnel. We are observing interest in MOVIA L and MOVIA S for mapping, as well as IRIS and HALO for on-vehicle perception. In terms of vehicle autonomy, having a 1550 nanometer solution enables vehicles to operate at night without being visible while scanning and utilizing their sensors. We are seeing significant interest in all of these products, both for ground-based autonomy and drone applications.

I was wondering about the acquisition of Luminar's assets. I believe their headquarters was in Orlando, and I'm interested in the effort required to complete the acquisition. Are there additional locations you acquired that you need to close down and consolidate, or was Orlando the only physical location you had to manage? I know Luminar had various offices around the world.

Yes. We really only acquired 2 locations. One is, as you said, the Orlando office, and they were really their headquarters and where their engineering tech center was. And then the other is in Colorado, which was the Black Forest Engineering team for their ASIC design. So those are the 2 offices and sites that we're maintaining. We did bring over people from some of the other offices. If you think about Japan, if you think about Sweden and Germany, but we did not assume responsibility for those facilities. So we're not having to deal with closing down legal entities or closing down offices around the world. And so Orlando, Colorado, those are offices that we have and we're going to keep. And then as we mentioned earlier, we'll consolidate operations in Orlando.

Yes, that's great information. For my last question, it seems like there might be a lot of new products and opportunities coming up at once. I'm curious about the possibility of integrating different sensors such as cameras, LiDAR, and new radar technologies. Does this affect your marketing strategy? Are you considering partnerships, or is this something that's too far off to consider right now? How do you envision these various sensors working together in future applications?

Yes. To your point, it really depends on the application. It's interesting in automotive. We went through a period where we thought, hey, combining sensor modalities would be really a great way to package sensors in the car, and then we immediately brought them all back apart because it gave us more flexibility in where you can mount the sensors and how you mount them and then actually sourcing those sensors. You combine sensors, you end up actually restricting that. So there are some applications where combined sensor like LiDAR and camera. For instance, that's what we do with our MOVIA Air products where we have LiDAR as well as a resolution camera that we then fuse that in the sensors. So when we provide the map data coming out of the drone, it has fused vision as well as LiDAR. But right now, that tends to be more of how the OEM wants to package those sensors on their platforms. And we can do it as a standalone sensor. We're happy to work with others in a combined sensor configuration. We just recently had some discussions around those lines this week as well. But as of right now, our feeling is we'll develop a great LiDAR sensor that can be flexible in terms of how it's integrated, how it's mounted, whether that's in a combined fashion or as a stand-alone LiDAR sensor.

Terrific. That's actually a great perspective. It's a great update, and it looks like it's going to be an exciting 2026.

I will now turn this call back over to Steve Hrynewich to read questions submitted through the webcast or in advance of the call. Steve?

Thank you, operator. Our first question is with regards to your revenue guidance of $10 million to $15 million, how confident are you in achieving this?

Yes. Let me take that, Steve, and then I'd ask you to add any further comments from your end. So that revenue is a combination of sales of our long-range and our short-range products, and it's really across all 3 end markets. We've already been shipping into critical customers that came with that Luminar acquisition, and we really expect that to continue. In addition, the commercial uptake of the short-range MOVIA S is actually ahead of our expectations. We believe that was going to be a great product. The interest and the pull we're seeing on that validates that. And now it's up to us to launch that on time and at volume. We believe we have, however, a clear line of sight to other opportunities, and that combination of what we know today, what we're seeing, that gives us a great deal of confidence with that guidance. Now as we continue to work through what were the Luminar customer engagements and those contracts and production schedules, we believe there are additional opportunities there that we can include. But we still have to work through that process. We were basically about 5, 6 weeks into it. And so through a lot of it, but not through all of it yet. And we believe that there will be additional opportunities for us.

I think just to add to that, as Glen mentioned, we're looking at production of our MOVIA S short range sensor in Q4 of this year. We have lots of customer traction, lots of interest from our customers. So we are definitely expecting to see revenue with that product coming in the fourth quarter this year.

Yes.

Okay. Second question. How many customers are you engaging with including your recent acquisitions?

So with the addition of Luminar's customer base, that has been a significant increase to our opportunity pipeline and really across all 3 verticals. And they've basically brought in incremental about 30 new customers for us to be working with. And within that customer group, many more opportunities and prospects. And as I mentioned earlier, with the onboarding of the Luminar sales and their commercial team, that was just a tremendous benefit of the acquisition because not only do they bring those contracts, they bring relationships and they bring knowledge of those end markets, knowledge of those customers. So it isn't just a matter of the formality of acquiring a contractor, taking over a PO, we also now have the individuals with MicroVision who understand and have a history with those contracts, the history with those customers and a deep understanding of those customers' needs and how we can then basically bring our solutions to them. So that's why that's been such a benefit.

Along with same lines, another question. What is the state of the Luminar customer relationships of Volvo, Nissan, Caterpillar? Have you delivered to any of these brands yet? Are these critical to achieving your 2026 guidance?

Yes, it's a great question, actually. And while it's not appropriate to comment on individual customers, it is fair to say that every Luminar customer is engaged with us. And I mentioned, this is in part due to the fact that we have a sales team that knows them, that's maintained contact and now we're continuing those dialogues. By normalizing and restarting those past relationships, as you can imagine, when a supplier goes into bankruptcy, that generally speaking, puts a pause on the relationship, it's disruptive. Well, we're now normalizing those relationships and having discussions, not just around the active POs or the near-term needs but also discussions regarding ongoing development. We're not going to comment on how individual customers drive guidance. Subsequent to closing, we have shipped to the largest customers in automotive and commercial vehicles. So that product and that associated revenue is flowing as we speak.

Next question is, how did Luminar impact MicroVision's path to revenue and commercialization?

To summarize, Luminar significantly boosts our revenue by bringing in active commercial programs and established customer relationships, which accelerates our growth. We are currently reconnecting with the Luminar customer base and transitioning paused purchase orders and contracts to active shipments, while also discussing ongoing development. Additionally, we are integrating Luminar products into our existing MicroVision customer base, and vice versa. This cross-pollination enhances our ability to serve as a comprehensive provider for LiDAR perception needs, offering a full range of solutions. This approach simplifies the integration of various sensors, making it easier for our customers as we can handle all their requirements. It's an exciting opportunity as we continue to merge our different customer bases.

I want to emphasize that a significant aspect of the acquisition is to accelerate revenue generation. The HALO product is set to enhance our timelines for future growth. We are nearing the point where we can provide samples to customers, and our team is currently focused on this effort. This will help us achieve revenue milestones for our long-term solution more quickly.

Yes, great point, Steve.

Next question is, what happened to the multiple RFQs that you previously announced?

We are actively engaging with our customers, and it's noteworthy that this has been ongoing for some time. We now have a more diversified product portfolio to present, particularly with our recent acquisitions, which allow us to offer different products. However, we're observing an unusual pattern regarding the requests for quotes and information. Typically, in the automotive passenger car market, a request for information is usually followed by a request for quotation. The purpose of the request for information is to assess the market, understand the supply base, and identify selected technologies. Then, the request for quotation serves to narrow down options with pricing and specifics, leading to a production award, which typically occurs within a short timeframe, not over two to three years. Currently, particularly in the North American and European passenger car markets, original equipment manufacturers are rethinking their Level 3 value proposition and offerings. This adjustment is significantly influenced by the costs of these systems and the limited initial value they provide to end customers. Ultimately, consumers are not willing to pay an extra $6,000 to $9,000 for a Level 3 system, particularly the ones currently on offer. Consequently, we have seen some program cancellations or suspensions of these offerings. This situation highlights the importance of our focus on cost reduction, as we need to lower the prices of both short-range and long-range LiDAR sensors to a level where manufacturers can incorporate them into vehicles. This would enable Level 2+ or Level 3 features that are appealing to consumers while ensuring the manufacturers maintain healthy profit margins. We are still participating in the requests for information and quotes, and in some instances, discussions have entered the third year. Nonetheless, it reinforces the necessity for us to reduce sensor costs so that manufacturers can successfully integrate them into vehicles and provide value to both themselves and consumers.

Okay. With the current technology you have plus with the acquired technology, what makes your overall portfolio, your technology different?

Well, I think a couple of things to that. First, we have a really broad portfolio. We have 905 nanometer, 1550 nanometer. We have short-range and long-range. Time of flight, FMCW, solid-state and scanning with polygons on MEMS. What that means and why that's important is that means we can bring the right solution for any given application in any of the end markets that we're serving. And additionally, our approach combines that strong hardware performance with an open software framework. So instead of offering a closed system, we enable the OEMs and the partners to integrate faster, customize functionality, and basically identify new ways of monetizing advanced features on our sensors. That openness and that open software framework reduces the integration complexity, shortening their development timelines and reducing their costs, helping customers move from concept to deployment faster. And then finally, as a U.S. and German-based company with U.S.-based manufacturing, we can bring that complete product portfolio to the security and defense market, which is a significant differentiator for us.

Okay, good. How do you create value for customers and specifically to the automotive sector?

Well, I can tell you, it's not the vendor with the most impressive demo that will create that value. It's the supplier that enables new use cases across the verticals. And for industrial, that's the ability to enable autonomy at affordable prices as well as advanced safety systems and security and defense. We talked about it, it's applications such as unmanned ground vehicle autonomy as well as drone-based real-time mapping and reconnaissance. Now for automotive, this includes enabling Level 3 features and like we talk, making them affordable for the OEM and end consumer. And ultimately, Level 3 systems have just simply been too expensive, especially when you consider Level 2+ systems now coming in well below $2,000 on cost to the vehicle. So for us, it's a matter of how do we enable the OEM to successfully offer these types of products and services to their customers, but most critically to be able to do it in a way where they make and unlock value for themselves. And so our ability to enable our customers to unlock value is how we will create value for them.

Next question here is, what is the future for MAVIN in the MEMS technology?

The key aspect of MAVIN is the MEMS scanning technology, which is central to its function and still a crucial component of our overall portfolio. MEMS technology has several valuable applications, particularly in scanning. For instance, it is highly effective for fixed-wing drones performing terrestrial mapping, serving as an excellent scanning mechanism. Additionally, MEMS is well-suited for narrower fields of view, such as in automotive applications where the horizontal field of view is around 60 degrees. This capability is essential for Tri-LiDAR, enabling long-range LiDAR to achieve about a 60-degree field of view with MEMS technology. Therefore, MEMS continues to be a vital part of our scanning technology portfolio, and we are actively exploring its applications.

Next question is, what's the status of the CFO hire?

So the CFO hire, this is ongoing. If you think about that role, it's really critical that our new CFO has the skill set and ability to really accelerate our success in the vision that we have laid out today. So we have to have the breadth and depth to the CFO skills along with the relevant industry experience. Now we're in a very, very favorable position in that our Executive Vice Chair, who is part of our leadership team, has been a CFO for 4 public technology companies, and that gives us tremendous capability along with what I would say is just an outstanding financial team that gives us a really solid basis from a financial and accounting foundation. And so when you combine those, that means we can take the time we need to take to find exactly the right person for that role. So we're continuing with that. We would expect that sometime here in the second quarter. But we're not in a situation where we have to rush that, which is a great place to be.

Okay. All right. We have 4 minutes left, so let's take one more question. With the recent acquisitions, the company has changed. How are you different now? What is your competitive advantage in the marketplace?

Well, the first and foremost difference is the breadth of the portfolio. So we've significantly augmented the portfolio compared to where we were pre-acquisition, in particular if you add Scantinel and Luminar. So first question is portfolio. Second question is time to revenue. As we mentioned, in particular, the Luminar acquisition dramatically accelerated that timeline to revenue versus doing that organically as we were pre-acquisition. So that time to revenue and the broadening of the customer base is that we now have access to with our portfolio, that's a huge difference. And then finally, just deepening on the whole, the entire team and capabilities we have. So if you look at the depth of our knowledge, whether it's the Scantinel team in Ulm, it's the MicroVision team in Hamburg, it's the combined team now in Orlando with the Black Forest Engineering team now in Colorado. When you look at that depth of engineering talent, it's just amazing. We have the talent to support that portfolio, to develop those products and to deliver on that. So it truly is, as we said at the beginning of today's call, it's a transformative time for MicroVision. And that's what gives me confidence that we will be very well positioned to lead in what we call LiDAR 2.0.

Okay. Thank you, Glen. Okay. That brings us to the end of our call today. I just want to thank you, everybody, for participating in our call today and your continued support of MicroVision. We will now close the call.

Thank you. This concludes today's conference. All parties may disconnect. Have a great day.