MicroVision, Inc. (MVIS) Earnings Call Transcript & Summary

Welcome to the MicroVision Business Update and Shareholder Q&A. [Operator Instructions] Please note this event is being recorded. I would now like to turn the call over to Jeff Gadway. Please go ahead.

Thank you so much. Good afternoon, everyone, and thank you for joining us today. We appreciate you taking the time to be with us and your continued interest in MicroVision. Today's webinar will begin with some opening remarks, then a video from the leadership team, followed by a live Q&A session at the end. We encourage you to stay through the conclusion as we'll answer as many questions as time permits. Please note that today's webinar is being recorded and will be available for replay on our Investor Relations website following the event. You can submit questions at any time using the Q&A feature in the webinar platform. We'll collect questions throughout the presentation and address as many as possible during the live Q&A session. For safe harbor disclosure regarding forward-looking statements and risk factors related to MicroVision, please refer to the disclosure on the webcast portal under the Presentations tab and this slide. At this time, I would like to turn the call over to Glen DeVos, Chief Executive Officer of MicroVision. Glen, over to you.

Thanks -- thank you, Jeff, and good afternoon, everyone, and thank you for joining us. Over the last year, my provision has undergone a significant transformation. We've expanded our capabilities, broadened our market focus, strengthened our leadership team and position the company to pursue opportunities across multiple industries. Today, we're going -- we're not going to walk through a traditional investor presentation and follow the MicroVision fireside chat format that we've used in previous years. Instead, we want to show you that the transformation of MicroVision is real and it's well underway. We'll go into depth on a few exciting customer engagements, share some key metrics around commercial progress in revenue expectations and will address questions related to the upcoming annual meeting. First, MicroVision exists to profitably bring compelling solutions to the market. So we want to spend some time updating you on our business. We've prepared a 25-minute video to share with you that describes how we're attacking each market, what differentiates us and why we believe we have a winning strategy. After the video will return to our live panel and your leader tangible proof points with a focus on our financial performance and capital plans and how this fits into our largest strategy. After the business update, I'll be joined by our Board Chair, Bob Carlile; and Executive Vice Chair, Simon Biddiscombe, and will address shareholder questions about MicroVision's business or the proposals for the July 10 Annual Meeting. We appreciate you spending the time with us at the end of session. We hope that you'll share our excitement about the real commercial progress we're making our aggressive execution of the milestones comprising our strategic plan and the positive impact our products and technologies are having on the future of safety and mobility. So let's jump in. Thanks for joining us today. Over the past year, I've spent significant time with our customers and their system developers and whether they are involved with the industrial, security and defense or the automotive markets, the feedback is very clear they need the right product with the right performance and at the right price. This is how MicroVision is unlocking value for our customers and leading the transition to lidar 2.0. We've been focused on re-architecting the company to lead this next phase of lidar. The new MicroVision is built around a few core principles. First, portfolio breadth. We don't believe one sensor solves every problem. That's why we've expanded our portfolio to include short, long and ultra-long-range sensing, which means we can bring optimal solutions to our customers across industrial, security and defense and the automotive end markets. Second is software-enabled architecture. Customers aren't simply buying hardware. They're building systems and want to create differentiated capabilities that create value for their customers. MicroVision's open software framework gives our customers the ability to fully integrate our sensor model and perception software into their system architecture that enables them to further optimize system performance as well as cost. Third, design to cost engineering. Cost isn't a constraint. It's a requirement. And the facts are that lidar has simply been too expensive to achieve mass adoption, delivering the right performance at the right cost is critical to enabling our customers to create value. Everything we build is designed manufacturing, scalability and economics from day 1. Fourth is disciplined execution. This is where we have been especially focused rationalizing the cost structure, integrating assets and assembling a world-class team. The fruits of this focus are beginning to pay off. The first half of 2026 has been transformative for MicroVision. Following the acquisition of Scantinel Photonics and Luminar, we have successfully reengaged with Luminar's customer base and resume shipping iris for customers in all 3 end market segments. We have completed key technology development projects at Scantinel that demonstrate our 1550 FMCW capabilities. And we are engaging customers with [indiscernible] and have also demonstrated our first movie error products for drones. We are executing our strategy and realizing the benefits of our technology portfolio. Over the next few segments, you'll meet more of the MicroVision team and hear directly from some of the leaders closest to our customers. Martin Kraling, our VP of Software Engineering will talk about our inroads into industrial markets where autonomous systems are being deployed today in mining, hauling and logistics. Then David Neal, a lead engineer on our Aerial Systems and Drones team will be joined in a conversation with Nate Adler, one of our Defense Advisory Board members. They'll share how MicroVision is approaching security, defense, drone in aerial applications. And finally, Greg Sharenbrack, VP of Global Engineering, will talk about how we're approaching the automotive industry with our Lidar 2.0 strategy. Across these industries, you'll see where MicroVision is already part of the systems operating in the real world in a generating revenue and poised to scale over time. Martin, over to you.

Thanks, Glen. Industrial market is really one of the clearest examples of lidar 2.0 in action because adoption here is not driven by hype, it's driven by outcomes that are attached to clear metrics: safety, uptime, efficiency and throughput. What customers need now aligns directly with what Glen described. The right performance for the targeted use case and environment. reliability over long duty cycles, integration into broader perception and automation systems and economics that support scaled fleet deployment. That's what lidar 2.0 is. And industrial customers are among the first to demand it. At MicroVision, we've been focused on a set of industrial applications where those requirements are most critical and where lidar creates immediate value. autonomous hauling, mining operations, commercial trucking and logistics and increasingly, warehouse and material handling systems like autonomous forklifts and ATVs. These are high utilization environments and robust perception systems that provide earlier detection and fewer interventions translate directly into measurable business impact. We've built a portfolio that maps directly to how these systems are actually deployed in the real world. For applications requiring long-range detection, high speed decision-making and performance in extreme environments, we deploy our iris sensor designed for long-range perception and reliable operation under demanding conditions. And at the short range end where gapless coverage in the near field, precision, responsiveness and situational awareness around the vehicle matter most, we deploy our MOVIA platform. This also includes application-specific solutions like LCAS, our [indiscernible] system built on MOVIA to help customers monitor zone occupation and reduce collision risk on industrial vehicles. Our MOVIA sensors are built for durability, reliability and detection performance even under vibration dust and challenging lighting conditions. And just as importantly, they are designed to integrate into real sensor stacks working alongside RADAR, camera and GPS as part of a complete system design because that's how these systems are actually deployed in a multimodal setup. Let me give you some concrete examples. We're working with a leading manufacturer of construction equipment on their next generation of autonomous hauling vehicles. These are massive machines operating in active environments, often with limited visibility and constant movement around them. And that setting perception isn't just about detection it's about reaction time and enabling appropriate system behavior. Using our Iris sensor, the system is able to detect obstacles and hazards at extended distances giving the vehicle more time to respond and operate smoothly, which means fewer abrupt stops helping to reduce wear, tier and maintenance cost, fewer emergency interventions and ultimately, more consistent operation and higher uptime and throughput. That's a direct business outcome. Another example is in mining. We're supporting a global mining equipment provider, deploying autonomous haulage systems and active production environments. These are some of the most challenging conditions you can imagine, dust, low visibility uneven terrain constant vibration. In this case, our iris sensor plays a central role providing long-range high-resolution 3D perception that allows the system to detect and classify objects at distance plant safe and efficient parts, navigate reliably across the site, and it's doing it reliably, day after day as a part of an operating system that the customer depends on. A third example is an autonomous trucking. We're working with a lean provider in the space to support long-range perception for highway speed operation. Our Iris sensor has been incorporated into their sensor suite alongside radar and camera systems to enable detection at a distance beyond 250 meters, while maintaining reliability across vibration, weather, lighting conditions, we are seeing similar dynamics emerge and warehouse environments. Think forklifts, autonomous mobile robots, loading areas and facilities where machines operate in close proximity to people, pellets, racks and infrastructure. In those environments, the challenge isn't long-range detection. It's gapless detection in the near field, reliable and precise detection of obstacles in direct proximity to the vehicle to support collision avoidance and complex environments. That's where our MOVIA platform comes into play, and we are developing application-specific solutions like our new lidar collision avoidance system, LCAS, for short. LCAS allows customers to define sensing zones around a vehicle or within a facility, detect whether those zones are occupied and trigger alerts or system responses when a risk is present. Those zones can be static for monitoring a doorway, aisle, loading area or restricted space or they can be dynamic, adapting based on the speed and motion of the forklift or industrial vehicle. So instead of constantly alerting on everything nearby, the system can focus on the area that actually matters, where the [indiscernible] is headed. That can support operator warnings, visual alerts speed reduction or depending on the customers' integration, even the braking response. When you step back, what you see is a consistent pattern, long-range perception with Iris and short-range perception with MOVIA, working together as part of a broader system. That's how customers in industrial markets are solving real problems and why they're choosing MicroVision as they move from evaluation to productive deployments. Next up, I will hand it over to David Neal, our lead engineer on the Aerial Systems team. He will join us for a conversation with Nate Adler from our Defense Advisory Board to take you through what we are seeing in the security and defense where the requirements are different but the shift to lidar 2.0 is just as clear.

I get the sense when I talk to a defense company, we've got lidar [indiscernible] a while ago, it was high heavy for a while and then for multiple reasons, some related to the size, weight, power, cost, lack of rudeness that they moved away from it and other things. We're really trying to open people's eyes to what MicroVision is doing today with lidar to really enable new mission capabilities that I think at the forefront of people's minds. I mean [indiscernible] now. Do you get that sense in terms of from working with defense customers?

Yes, absolutely. The future of warfare and the future of support to our forces looks like on crude systems across domains and those on crude to some have to navigate a complex physical world that is going to need both miniaturized and ruggedized sensor systems. And I think that the platform that MicroVision has built is immensely useful across a whole -- a wide array of those different use cases.

Yes. No, that makes a lot of sense. And I think about -- as you talk about uncrude system, when we think about this transition that we're going through from fully crude systems to fully autonomous systems and kind of in the middle, we're in the space of hybrid systems, right? And this idea where you still have a person in the low but you still want to encourage some sense will tell me provide some sense of autonomy to a broader fleet. And for a lot of these applications, they're in denied spaces. And that's a thing that is not really addressed on industrial and a automotive. The fact that you have to operate these contested denied spaces where it's not always easy to transmit information between various assets.

Sure. I mean you also -- you look at how hard an engineering problem it is to get autonomy to work in the automotive sector. And that's on paved roads that have a lane demarcation and other traffic signs, getting uncrewed ground vehicles to work for inventory support for the Army and navigating the varied terrain that they'll be confronted with on a regular basis. That requires a sophisticated sensor suite but it also requires one that's not prohibitively expensive and that's ruggedized and can be bolted on to a range of existing platforms. And I think what MicroVision has built really checks all those boxes. .

Yes, it's really interesting you say that. I think we're really honing in on that space. One of the big efforts we've been pushing into the demonstration. On demonstration front is having like extended perception because we're talking about that a lot for ground vehicles, where they're able to actually map out where they're going to go by extending the field of perception from what the operator can see at the ground level to what you would see from a drone flowing out ahead. One of the things that's really interesting that we're doing is -- it's not just the hardware side, right? A lot of lidar companies, they focus on the hardware, and they're giving you a point cloud the operators on the other side are responsible for like interpreting that point cloud and trying to get actionable, useful data out of it. I think a lot of the work we're doing on the software side is one of the things that's a really key differentiator. So in this example of the extended perception, we have software running on the lidar that can then tell you kind of the grade of terrain or if there's a ditch here or not and feed that information to the operator to allow them to do like rail planning. One of the other things you've mentioned to us recently is on surface vehicles. And I'll talk to the stocking. Let's talk about that a little bit with some of the things you've seen or the need for kind of autonomous stocking with surface vehicles.

Sure, I mean, with ground vehicles or with aerial vehicles that need to land in complex environments in the maritime domain. Certainly, there are requirements similarly for interacting with the physical world, be the targets, a partner vessels or as they come kind of in and out of port. I think there are clear lidar applications in a number of those cases. I also think, to the point you made earlier on the software side, for the perception suite, some of the use cases that MicroVision has looked at with pairing ground vehicles that have MicroVision sensors on them with overhead support -- and having both of those point clouds fueling back or filtering back into the same perception software. It is hugely empowering to have the overhead visibility paired with what the vehicle is seeing on the ground. That would certainly be true in the maritime domain as well.

Yes. And I think one of the things that's really neat about our software suite is that we can take kind of mixed data. So we have different sensors that operate at different ranges, right? So we can pull data from MOVIA, combine that with data from a halo that might be on a ground vehicle that can carry like a heavier weight or an iris where a movie might be on an aerial asset, and we can do this combined bat from all of that data in real time. I think there's another thing that's really exciting what we're doing on the harbor and software side is, I think, traditionally, with LDR when you're using it for mapping, you're sending a vehicle out. You're doing scanning, you're collecting data, then you're retrieving the asset, then you're retrieving the data and then you're processing in some way. we're really trying to short-circuit that process, right, where we can scan the data, process it on board and then send it over low-bandwidth communication channels to get that data immediately to the [indiscernible] ATAC interfaces or other interfaces that they're familiar with. So operators in the field can get the data they need, like when they need it, not having to wait on delays or over recovering assets. And that opens up a new mission yet, right because now instead of commuters having to think about, "Oh, I have to make sure that I'm running a mission that I can retrieve the asset in order to get the data", that asset could be expendable because we're providing lidar at a cost point that they lose the assay, if it's expandable, if it's attributable, that's okay, and we're able to send the data back in real time. So the folks who need the data have the data and they're not relying on necessarily getting the asset back. So I really think that extends some of the capabilities and the efficiencies and what they'll be able to do in the field.

I also think that when you look at the customer and the demand signal that's coming out of the Department of War right now, for example, they're really putting their money where their mouth is. So $54 billion budget request for the dog, the Defense Autonomous Warfare group for next year, that eclipses the budget for the entire U.S. Marine Corp. They clearly see the future of where the department is going as being in uncrude systems, and those uncrude systems are going to need to navigate around the physical world. in a way that I just think a lidar and particularly the type of lidar that MicroVision builds is uniquely well suited for.

Automotive remains an incredibly important market for us, but it's also one where it's important to be clear about where the market stands today. In lidar 2.0, success in automotive isn't defined by having the best performing sensor in isolation. It's defined by the ability to deliver a solution that works within the constraints of how automakers actually build the vehicles. That means cost efficiency at scale, seamless integration into vehicle design, long-term reliability across a 10- to 15-year life cycle and increasingly software-defined perception that enables OEMs to build new experiences that will allow them to differentiate themselves. Just as importantly, the range of relevant use cases has expanded. We're seeing strong interest across a broader set of applications that include urban driving, where complexity and unpredictability are much higher. Low-speed autonomy, including automated parking, tight maneuvering and new architecture approach in like satellite sensor configurations that give OEMs more flexibility and how they design their vehicles. each of these use cases has some different requirements. And that's where the traditional single sensor approach starts to break down. And what we believe and what many OEMs are now aligning around is that perception in automotive is an architectural problem, not just a sensor problem. And now that requires long-range awareness for high-speed scenarios high-resolution near-field perception for urban and low-speed environments and the ability to fuse that data in a coherent, reliable understanding of the world. And that's exactly what our portfolio is designed to enable. A great example of this is what we're demonstrating with our [indiscernible]. This combines a long-range sensor like Halo, providing forward visibility at distance with multiple near range sensors like MOVIA providing higher resolution coverage around the vehicle. And this is particularly important for detecting and understanding vulnerable road users like pedestrians and urban environments. And it also allows OEMs to combine lung distance awareness with near-field precision, improved detection and classification and built systems that are more robust across a wider range of driving conditions. And importantly, this is not a closed system. It's an open platform architecture where lidar works alongside radar and cameras giving OEMs flexibility in how they design their perception stack. It's about delivering a complete scalable perception solution that aligns with how automakers operate. That includes design to cost engineering so that these systems can be deployed at volume, a collaborative approach, working closely with OEMs and joint partners. In software-enabled perception following automakers to build differentiated features and IP because at the end of the day, OEMs aren't simply buying sensors. They're building products and those products need to deliver real value to their customers. And just as important as the technology is execution, automotive programs require long development cycles, rigorous validation and the ability to support platforms over many years. And that's why we've been focused on building not just the right portfolio, but the operational discipline and partnerships required to compete in this market over the long term. So while automotive may take longer to fully scale than some of the other markets you've seen today, it remains a significant long-term opportunity. So Glen, now that we've talked about how the lidar 2.0 strategy sets MicroVision up to lead in industrial, security and defense and automotive markets. What does the future hold for MicroVision?

As we conclude today's session and move to our Q&A, I'd like to leave you with a few things I want you to take away. First, we have the right portfolio across industrial, security and defense and automotive. Second, we built the team and the footprint to actually deliver. You're seeing it. Our drone demos, the trilateral system, integrating our Halo and MOVIA S demoed live at ACT Expo in Vegas. These are proof points of integration and execution, not just road map slides. Third, we are firmly in execution mode now. This is about delivery. We're actually working to convert Luminor accounts over to MicroVision. We're building momentum in security and defense. Partnerships like the Avular MOU are just the beginning. We're on track to launch MOVIA S industrial applications in Q4. So when we talk about progress, this is what we mean, real customers, real integrations, real deployments. And stepping back, this is exactly what we've been building towards. Lidar 2.0 isn't about proving the tech anymore. It's about performance, scalability and economics. That's where MicroVision is focused, and that's where we win. Thank you for your time and for being with us on this journey. Now let's open it up for Q&A.

So love the technology and excited to see the progress the team has made, but we want to address some of the questions I know are top of mind first before we open it up to the broader Q&A. And as great as the technology is what's even more important is how does that translate over to commercial success. MicroVision today is really at a transition point. And the video reflects the work that we've been doing position that our company for success in those 3 end markets. We made significant progress over the 9 months, and we're now realizing the benefit. So if you can pull up the chart Jeff on revenue. So the chart [indiscernible]. Since 2020, if you look at the graph on the right, since 2020, MicroVision has really only averaged about $3 million of annual revenue, and we've had really limited customer opportunities. When we sit here today, we have over 100 active customer engagements across automotive, industrial and security and the defense areas. This represents over $500 million of booking opportunities over that '26 to '30 time frame. And what's really exciting is that the level of interest and the qualified new inquiries keep coming in. So we expect that to continue to grow month-by-month going forward. A key takeaway is we're not hoping for one massive big win or one big announcement to really define MicroVision. We're building a broad base of customers with diversity that gives us consistent and strong revenue growth year-over-year. And that is exactly what we're delivering. I'll give you an example. Just this morning, I received another order for 200 MOVIA L 120 that we've been shipping to our European unmanned ground vehicle so that's building that count into a multimillion euro customer. That customer then plans for more in '27 and going forward. So it's really about strong customer base, diversity of revenue and then strong book of business. Now let's talk about 2026 revenue and our forecast. Now the guidance that we gave this year is between $10 million and $15 million, with a significant portion of that, about 70% being with the Luminor acquisition. Now that revenue, largely loaded in the back end is there's a range there because it's primarily dependent on how quickly we can fulfill those orders. And I'll talk a little bit more about exactly that later. But what's really important here on the chart is if you look at it, we're shipping today to over 40 customers. And when we look at those customers and their plans, that gives us confidence, not just in 2026 revenue guidance, but our growth year-over-year as we go into 2027. And if you think about this revenue profile, it's very different to what MicroVision's historic revenue profile has been, where it's been somewhat singular customer peaking revenue followed by years of much lower revenues. What we're talking about here is making that transition from kind of an R&D project company to a company that delivers year-over-year top line growth with industry-leading margins. And a key point I want to make is that the transformation, and we're not talking about, hey, this is going to happen later this year or maybe it's going to happen next year. It's happening now. Those 40 customers are now that growth year-over-year is happening now. So that's how you create customer value and I think probably more importantly for this audience, that's how we create shareholder. Now I'd like to introduce Bob Carlile, our Chair, for his comments.

Thank you, Glen. Before we turn to questions, I want to speak directly to the concern and frustration many shareholders are feeling. The Board understands this. We're frustrated as well. the company's market value is not achieved, but we think it can. We are shareholders too, and we are fully aligned with you and wanting to see the value of MicroVision increase. This is the Board's focus and a key part of our fiduciary role. We also understand the desire to protect existing shareholders. In our view, the best way to protect existing shareholders is not to restrict the company's options at this critical time. It is to give the company the tools to maintain listing compliance preserve cash, raise capital on the best terms available and execute against the business plan shareholders are invested in. In many respects, MicroVision was reborn in October 2025 and when Glen DeVos became our CEO and began reshaping the company around a clear commercial strategy. His focus has been on making sure we have the right products aimed at the right customer solutions at the right price and is supported by the right management team to execute. Today, you've heard more about that strategy and have met some of our key leaders responsible for delivering it. But strategy and products are not enough by themselves. The company also needs the right capital structure. That matters to investors, but it also matters to customers, suppliers, partners and employees. When customers evaluate whether to rely on us for important solutions, they look not only at our technology, but also on our ability to support them, deliver at scale and remain a strong long-term partner. We believe MicroVision as an inflection point. We have the right leadership the right products and the right strategy, but we also need the capital flexibility to execute. The company has near-term capital needs that are critical to our ability to pursue the opportunities in front of us. Voting against proposals 2 and 3 does not eliminate those needs. It only makes the company's alternatives more limited, more difficult and reality will negatively impact existing shareholders. I also want to address a concern that a reverse stock split is somehow by itself destructive to shareholder value. The experience of other liner companies shows that it's not the way to look at it. AVA completed a 1 for 5 reverse stock split at March 2024. At that time, its market cap was approximately $207 million. Today, its market cap is approximately $1.3 billion. Aster completed a 1 for 10 reverse split in April 2023. At that time, its market cap was approximately $324 million. Today, its market cap is approximately $2.7 billion. Those increases in value were driven by business execution and improved market confidence. The reverse split did not prevent those companies from creating substantial market value after they regained a more appropriate capital structure. I believe MicroVision can follow a similar path if we give the company the tools it needs to execute. Some shareholders have suggested that a shareholder warrant offering or similar structure should be used instead. We understand the appeal of getting existing shareholders an opportunity to participate in future financing, and that is definitely something the company will evaluate for the future. But it's not a feasible substitute for the company's near-term capital needs. Lawrence do not raise capital unless they are exercised. The rights and warrant structure takes time, requires market support and do not provide the certainty of proceeds the company needs now. The Board's responsibilities to act in the best interest of all shareholders. In our judgment, approving Proposals 2 and 3 is clearly in the best interest of shareholders because it preserves the capital's ability to maintain NASDAQ compliance protect cash flexibility, pursue capital on better terms and execute the strategy you've heard about today. For shareholders who believe in MicroVision's technology, commercial opportunities and long-term value creation potential approval of proposals 2 and 3 as a practical and responsible path. Now I'm going to turn it back to Jeff to coordinate the Q&A.

Thanks, Glen. Thanks, Bob. We're now going to open it up for Q&A with Glen, Bob Carlile, who you just heard from. We're also going to welcome Board member and Executive Vice Chair, Simon Biddiscombe, there he is to field your questions. So before we move into the live Q&A portion, we see that there have been a number of questions that have been submitted through the Q&A portal here in the webinar. So we're going to tackle some of those first but we're going to make sure we save some time for live questions. So if you guys are ready, I'll start with the first question here. I see a theme of questions around confidence. So I think, Glen, this one is for you. What gives you confidence in the 2026 guidance on revenue, cash flow and gross margin?

Yes. Thanks, Jeff. Yes. So as we look at '26, it's pretty straightforward, and it's simply looking at our current backlog of orders and then expected POs as we talk to customers and they let us know hey, we're going to order this material. We need it in November. So we put that together, that gives us that range. But as I mentioned earlier though, one of our biggest customers is for Luminar product, the Iris product. And what we're doing in the process now is obtaining all that material, reconstituting those lines so we can deliver that really in the second half of this year. And so it's just a matter of getting through that process. That's why there's a range of $10 million to $15 million, how much do we get through that here this year. Obviously, from our perspective, we're trying to deliver as much as we can -- now relative to gross margin and the cost side of that, the team has done a great job in terms of negotiating with those outside suppliers, for the inventory, for the material for the equipment. And we're very confident in terms of what the cost of those goods sold are will be -- we've negotiated the pricing for that. So from our perspective, very confident on gross margin. As a result, those sales really bring in a positive cash flow. And so again, automotive drive as much revenue as we can. That comes right to the bottom line. It's great from a cash flow position.

Thanks, Glen. Second question here. I think this one is probably best suited for you, Simon. It's tied to capital needs. I see people asking, what are the near-term capital needs? And are you open to exploring a variety of different financial structures to meet those needs? .

Yes. Thanks, Jeff. And it's clearly a very important question. It goes directly to one of the core responsibilities of the Board and management team, which is making sure the company has the capital needed to execute the strategy while being very thoughtful about minimizing dilution. We've been clear in our public disclosures that the company has near-term needs for additional capital. At the end of March, we disclosed. At end of March, we disposed a cash balance of approximately $46 million. Now we also disclosed under the terms of our convertible notes issued earlier this year, we were required to maintain a minimum cash balance equal to the greater of $21 million or 110% of the outstanding notes at that point in time. In addition, we've discussed an expected cash burn this year of approximately $60 million. So when you put all of those facts together, it's clear that we will need to raise incremental capital in the coming quarters. So the answer is yes. We do expect to need to raise additional capital. We're not going to announce the timing, the size of the structure of any specific financing today, but we are going to continue to be disciplined, thoughtful and focused on what's in the best interest of long-term shareholder value creation. The Board and management team are aligned with shareholders. We want to fund the company's strategy, protect the opportunity in front of us that Glen has so eloquently laid out in the earlier comments and do so in a way that is thoughtful about the possible dilution that would be experienced. The choice in front of us, let's be clear, it's not about whether we're going to raise capital and not raise capital. We have to raise capital -- the choice in front of us is whether we do it from a position of flexibility and strength or from a position where our options are constrained, and that's why it's so important that proposals 2 and 3 are passed as Bob eloquently laid out in his commentary as well.

Thanks, Simon. Bob, I think this next one is for you, given some of the comments you shared on the reverse stock split, what factors will the Board evaluate when deciding whether to do a reverse stock split? .

Thanks, Jeff. That is an important question. Approval proposal would not mean a reverse stock split is automatic. They'll give the Board the authority to act if the Board concludes that is the best course of action given the facts and circumstances at the time. Several factors will be considered in making that decision. First, we would consider whether the company has a capital structure needed to support execution of the business plan. This is a key consideration for investors. So it is just an important issue for customers, suppliers, partners and employees. Customers want confidence that we have the financial resources to deliver on our commitments. Suppliers want confidence that we can support production and scale, and employees want confidence that the company has a runway and stability to execute. A stronger and more flexible capital structure supports all those relationships. Second, we would consider our competitive position. The reality is the capital structure matters when customers compare us to other lidar companies. Many of our competitors have already taken steps, including reverse stock splits to optimize our capital structures and preserve their NASDAQ listings. We do not want MicroVision to be at a competitive disadvantage simply because of our capital structure. Third, we will consider when the company has sufficient available authorized shares to maintain a solid financial footing. At the current stock price, the company's existing available shares may not be sufficient to provide the capital flexibility needed to execute our strategy. Let me emphasize, we would not issue shares unnecessarily. It means the company needs the ability to raise capital responsibly, conservatively and when needed. Fourth, we have considered NASDAQ compliance. One of the purposes of Proposal 3 is to give the Board the ability, if necessary, to cure the NASDAQ minimum bid price requirement to maintain the company's listing on NASDAQ. Maintaining a NASDAQ listing is important for both shareholders and the company in terms of investment liquidity, investor access and market credibility. The bottom line is the Board will consider executing diverse lit if we determine that doing so. It's the best course of action to preserve and enhance the company's ability to execute its strategy and grow market value which translates to increased value to shareholders. Multiple factors will be part of that determination, including the impact of existing shareholders, the ability to finance the business compete effectively support customers and employees and preserve NASDAQ listing compliance.

Thanks, Bob, and thanks for tackling those initial questions. Let's move into the live Q&A portion now. We're going to call the operator back on in a second. If you're called on to ask a question, please try to be concise so that we can get through as many questions as possible in the time remaining. So with that, operator, could you please come back on and introduce the first question from the line? .

[Operator Instructions] Our first question is from Todd Bordner.

Okay. Great. So Glen, you took over, as Bob mentioned, and basically a restart, I guess, the way he framed it for the company starting in October of last year. Can you comment on some of the things that you've done specifically around the sales process and, I guess, the metrics around being able to determine what your revenue guidance is on an ongoing forward basis? .

Yes. Thanks, Todd. Yes. This is -- think of this as the front end of the business. This is the tip of the spear engaging the customers. And we've done a couple of things. Part of it's organizational having the leadership in place now and the senior sales directors in place out to go, really focus in on automotive and then industrial and security and defense here in North America as well as in Europe. So that's -- having that talent in place, driving it, getting those opportunities and making them available to us is the first step. The next was really getting discipline around the pipeline management process. So putting all of that into sales force, using Salesforce to manage those opportunities, reviewing them on a weekly, in some cases, daily basis to really drive activity. So you convert it from here's an engagement to here's an opportunity. And then now working that funnel down to where we have real opportunities, real RFQs and opportunities for converting into business. So it's a matter of setting up the resources and the people in place and then wrapping a process around them. That's what's driving that 100 and growing number of opportunities. And then having the organization supported -- so really support that. And just this morning, reviewed 4 additional RFQs. So now quoting with customers across industrial, automotive and security and defense across all 3 segments. Almost $200 million of bookings opportunities this morning. And it's that discipline that then leads the company to being able to succeed converting those over to purchase orders.

Okay. By the way, the charts that you showed earlier, those were very helpful in order to see some of the numbers.

And it really is. And I think the thing I wanted to highlight, Todd, and I appreciate your question because it's a change in how we are operating and building the business. And you want that diversity of customers, you want those customers that aren't just one and done. They're going to continue to order, you can land with them, expand with them and grow those accounts. And that's exactly what's happening. And that's what you're going to see in that inflection point that's happening in '26.

Okay. Do you expect to continue to share these kinds of metrics that you showed today with the public going forward?

Absolutely. And trust, we want to share as much as we can about what our customers are doing and what we're doing with them. There's some limitations on that we can. But like today's chart, we're going to give more -- we're going to get -- continue to get more and more visibility to that. Where we're moving to -- this year, we gave guidance. We're going to now -- we'll give guidance for longer periods of time. We'll give you more visibility into as we bring these customers on we'll give all of this community more visibility to that. We're excited about doing that because those are really the proof points of the business growth.

Thank you so much. Let's go to the next question, please, operator? .

The next question is from Mike Wilkin.

What's the immediately addressable market for our short-range lidar? And what out of the gate sales goals do we have for the MOVIA S launch? Two-part question. Also, Chinese lidar being banned in the U.S. and Europe, did open up over 80% of the domestic and European markets for us. How will MOVIA impact those markets?

Yes. So I think there's -- Mike, I think there's like 3 questions in there. Let me try to knock them down. For industrial, that is a multibillion dollar market today. And so if you think about -- and mostly dominated by electromechanical sensors that have ASPs in the $5,000 to $6,000 range. We're going to be coming into that market with ASPs under 1,000. And that's our competitive advantage. We can -- our solid-state movie product is an incredibly powerful product at a much lower system cost. So when you think about that market, we're not going to displace that market tomorrow, but our goals are in terms of with the launch this year, we're targeting building somewhere around 1,000 or so of those Mobius products, that's the beginning. So not a lot of revenue this year. As we get into to next year, that's where we're building that backlog now. I can't give you an exact number Mike. But that's going to be more in the $10,000 to $20,000 range. More to come on that as we get the backlog finalized. When you think about defense, that's a new market. Today, what we're talking about is kind of making that market. And so much higher ASPs, lower volumes more in the sub 100,000 but that's a long-term growth market for us, much higher ASPs. And as that -- as we get clarity around that, we'll be sharing more about exactly that. As it relates to your question around the limitations on Chinese lidar, that's primarily in defense. Ultimately, we're still competing against the size and the robo sense when we talk about automotive or industrial, even here in the U.S., I'm competing against them today. So we don't -- it's -- let's put it this way. they set the price. That's the benchmark, the purchasing groups, the OEMs used to measure us. But there's a clear preference from a supply chain resilience standpoint to use a domestic supplier like a MicroVision. So it gives us a bit of an advantage. It doesn't make or break the case for us. We can't charge a big premium, but we're taking advantage of that. And so it gets -- it helps gets us in the door -- but ultimately, we have to compete on price and performance, and that's exactly what we're doing. I think we have a great position in that regard even compared to the [indiscernible]

Great. Thank you for that Mike. Appreciate it. Can we go to the third question here, operator, please? .

Next question is from Adam Jones.

I know you got a lot of notes beforehand, and you really did a good job of addressing many of them. So I want to thank you guys for that. And I got 2 real important questions here. So before you like cut me off after the one just stay in that upfront. The -- to really capitalize [indiscernible]. So I want to circle back to defense because you guys -- in that part of the presentation, you talked about it being a $54 billion opportunity. And this is really a question for both you, Glen and Bob. How are we approaching capturing that market? And with all that funding in play from the government, having lidar being such an indispensable element are we eligible for government funding? And are we aggressively pursuing that? Because if that's the case, perhaps that enables some of these suggestions regarding -- I think everyone understands rights offerings are a little not quite there yet, but this kind of funding would enable some of these things that protect current shareholder value. So I just want to throw that out there first.

Yes. I'll start, Bob, and then you can add in your comments. So for defense, you saw the [indiscernible] and David Neal video. And so there's the U.S. compound. And the defense Advisory Board has been very helpful in terms of guiding us kind of more generally, where should we be focused given our technology and our portfolio. And that's been -- that's been a great experience. People like Nate Adler know the defense industry very deeply to understand procurement where the money is basically and so that's been helpful to where we are now and basically developing that market. What we're -- the next step that we're taking to get closer to those sourcings and those sources of funding, is we're engaging with a firm that does exactly that. And we'll share that here with this group in a thing in the coming weeks. . But we're engaging with a firm that now is -- will help us engage directly with those sources of funding and those procurement offices. And that's really helpful for us. My background is automotive, more industrial, it's not defense, this fills in that gap for us. Europe is a bit of a different dynamic right now. And partially because of the proximity of the Ukrainian conflict and the big shift in spending there relative to their need to come up to the NATO spending requirements. There's a big pivot occurring in Europe. That's where we're engaged directly with the NATO country government. So the ministries of defense and Sweden, for example, or in Holland, through our partner with Avular. Those are different types of engagements where we're looking at, well, what funding opportunities are there. And the path that's following is more about a, hey, demonstrate the technology let's then connect you with those partners, a very different sales motion if you think about those 2 regions, but we're very active there, both in terms of movie of products, but also in [indiscernible] products, but also with [indiscernible] Luminar products, but now also with the Scantinel products. And we haven't talked a lot about that today, but that is a very interesting technology when it comes to defense. With that, I'll turn it over to Bob.

Well, thanks, Glen. Adam, the only thing I can probably add to that is the Board and certainly in cooperation with management, we really push on what are the sources of funding all sources. So we ask the same questions you're asking, and we have to be faced some time with the reality of what's available at the current time. And we also very much focus on the cash burn and so I think we have a very disciplined approach to trying to minimize that while still having the infrastructure to really pursue the opportunity. So trust me, we are absolutely trying to think of everything we can to reduce the amount of funding that has to come through sales of equity.

Jeff, I think, Adam, you had another question?

Right, yes. We said we were going to cut them off. .

And this is just one last question that allow Glen to tie it all up because Glen, you've done this before in the Delphi active rebrand. You've been here and Delphi went on an acquisition and partnering spree to kind of become a leader in autonomy to achieve commercialization based on becoming the brains of the vehicle. So you've done this -- and I'm kind of wondering if there's any kind of apples-to-apples comparison of how you accomplished that previously that can sort of put this whole thing in perspective of what you're trying to accomplish now.

Yes. The thing I would tell you, Adam, that's directly analogous between what we -- what I'm doing and what the team is doing here and MicroVision and what I had the opportunity to do at Aptiv is really is understanding -- the first step is understanding what is the customer pain point. What problem am I able to solve for the customer that they're willing to pay for. And at Aptiv, was very much focused around vehicle architecture for the OEMs lowering the cost of the vehicle and enabling software to find vehicles enabling autonomy. And MicroVision is really -- it's somewhat of a subset of that in that it's lowering the cost of lidar such that our customers, whether it's industrial, automotive or in the security and defense are able then to take that technology, integrate it into their solutions and then drive their really drive value for their customers. And so from that standpoint, it's directly analogous. What I was doing with Aptiv and what we're doing here at MicroVision. The other thing is we always wanted to go fast. I mean, at the end of the day, we're paced by the progress our customers can make -- so we push as hard as we can on them. But that ultimately paces it had the same feeling when I was adaptive. But that's the key. And it all starts with that customer understanding what's the pain point, how do I solve it better than anybody else can for them then it amounts to you, okay, now how do I deliver that but deliver it at a -- with a financial profile that creates shareholder value. It's -- Greg to satisfy the customer, but we have to do that in a way that satisfies and grows and rewards our shareholders and the people that have invested their money into our company. And so that was always in front of us when I was adaptive. It's always in front of me and the team here now at MicroVision. And that's exactly what we're trying to do. And what's exciting is we're now seeing the results of that focus in the strategy that we've laid out. But great question.

Thanks, Adam. We're coming up on time here. I know we didn't get to all the questions. But Glen, is there any final thoughts you want to leave folks with today as we wrap up?

Yes. Thanks, Jeff. And thanks to Mike, Todd and Adam for the questions as well. I'd like to wrap up by saying when you think about lidar, it was always initially tied to autonomous driving and autonomy or subsystems. And that -- as we've seen, that's taking time. It takes time for those markets to develop. I think we all thought automated driving and robo taxis would be all around us a lot sooner. What that will have, and we're happy to be part of that and excited about what we're doing there. But ultimately, that our end market diversity strategy going after industrial, building the security and defense -- that's why that's so important because those markets, particularly industrial, security and defense are going to bring us near-term revenue. That's what's driving to a large part, driving '26, '27, '28, that $500 million in bookings, the majority of that is actually in industrial and security and defense, not in automotive. Automotive will come on the horizon, but that's where that booking opportunity really, really is focus on is on industrial, security and defense. But the good news there is that gives us revenue diversity. It gives us revenue resilience. It means I'm not dependent on one market or one customer. I have the ability to grow across multiple end markets, many, many customers and that having those multiple pathways for growth, that is our continued focus. We have momentum. This is the exciting part is when I was reviewing the quotes and the opportunities this morning, getting the order in this morning, that momentum is happening. And I hope, as I said earlier, I hope you can share in that excitement that we feel about the business that market vision is building. With that, Jeff, I'll turn it back to you.

Yes. Thanks, Glen. So thanks for joining us. Today's webinar really aim to provide a high-level look at how MicroVision is creating opportunities across these multiple markets and how the team is executing against that strategy. So just as a reminder, we only shared some selected highlights from each business and so for investors who are looking to go deeper into the technologies, the demonstrations, some of the customer applications, the market opportunities that were discussed today, we're going to be making a full length version of that content available on the Investor Relations section of the website. So we encourage you to spend a little bit of time with that content following today's event. And with that, I'll just say thank you for joining us today and spending some time with the MicroVision team.

Thanks, everyone.

Thank you. This concludes today's call. All parties may disconnect and have a great day.