[Management View]
MicroVision emphasized enhanced institutional engagement, demonstrated by a substantial single-investor commitment and a sharp increase in trading activity. Management highlighted robust liquidity with flexible financing tools, supporting execution across automotive, industrial, and defense markets. The company is leveraging fully integrated solutions and targeting industrial, defense, and automotive OEMs with differentiated hardware-software offerings. Strategic focus included advancing large-scale automotive RFQs, near-term industrial commercialization, and initial defense sector demonstrations, while controlling operating expenses and maintaining an efficient workforce.

[Outlook]
Management expects the current spending level to be sustained through the rest of the year, indicating no meaningful near-term OpEx growth. The company plans to demonstrate new integrated solutions at IAA Munich in September and anticipates revenue from industrial engagements to begin in 2026. Defense sector demonstrations, including autonomous swarming drones, are planned for the first half of next year.

[Financial Performance]
- Revenue for Q2 2025: $150,000, entirely from industrial vertical sales.
- Total R&D and SG&A (GAAP): $14.1 million, including $1.9 million of non-GAAP stock-based compensation and $1.5 million of non-cash depreciation and amortization.
- Cash expenses: $11 million, reduced by 44% YoY.
- Quarter-end cash and equivalents: $91.4 million, with additional access to $76.5 million via the current ATM facility and $30 million in undrawn convertible notes.

[Q&A Highlights]
Question 1: Can you expand on specific use cases or customer types showing traction in the industrial pipeline, and when do you expect this to materially impact revenue?
Answer: The primary target is AGV AMRs in the logistics space, focusing on higher levels of safety. The product integrates Movia L with an LCAS system, offering a retrofittable solution for existing installs. The market includes sales organizations that retrofit and have access to large customer bases. Revenues are expected in 2026.

Question 2: Are there specific programs or agencies you aim to engage with in the defense vertical, and what is the timing for prototypes or pilots?
Answer: Partnerships will be announced as they happen. The focus is on demonstrating sensor fusion, perception, and LiDAR products. The drone technology demonstrator, planned for early next year, will showcase autonomous navigation in RF and GPS-denied environments, real-time map creation, and communication between drones.

Question 3: Do we need to break industrial down to be broader than distribution and warehousing?
Answer: The industrial space can be segmented into geofence, mixed-use, and ADAS. The focus is on creating channels to dominate the market, with standardized safety sensor products for AGV AMR. The strategy involves developing channels and investing in a larger sales team for global distribution.

Question 4: What is the status of the industrial OEM evaluating your technology, and what is causing the order delay?
Answer: There is no delay; the evaluation involves integrating the sensor and software into AGV AMRs. The process includes ensuring smooth integration into supply chains and addressing firmware updates. The engagements are in deep evaluation, with minimal input required from MicroVision.

Question 5: How do you plan to compete with existing players like Alstair and SIC in the industrial sector?
Answer: MicroVision's products are silicon-based, offering cost advantages, compact size, and lower power consumption. The company provides a full software stack, including perception and LCAS features, tailored to OEM needs. The bolt-on system for existing fleets offers a competitive edge.

Question 6: Are you pivoting away from LiDAR, and how much dilution should shareholders expect?
Answer: MicroVision is expanding its product lines, not pivoting. The focus is on leveraging existing resources to demonstrate technology in the military space. The company does not expect significant increases in OpEx and aims to partner with other companies for mission-specific applications.

Question 7: What happened to the seven RFQs, and what is the status of these RFQs?
Answer: The RFQs are being reformulated by OEMs to meet cost and performance requirements. MicroVision is focusing on providing cost-competitive solutions with multiple sensors and a system architecture approach. The company plans to unveil new products at IAA in September.

Question 8: Are we at risk of having outdated or inferior technology, and what are we doing to remain best in class?
Answer: MicroVision is evolving its products by breaking down the problem and keeping costs in mind. The company continues to use MEMS-based technology and 905 laser time of flight. The focus is on providing cost-effective solutions with multiple sensors and integrated software.

Question 9: How does the future look for LiDAR companies moving up the chain?
Answer: MicroVision aims to integrate multimodal solutions, including LiDAR, radar, and cameras, with a full software stack. The company focuses on partnering with other providers to deliver comprehensive packages for mission-specific applications, without significantly increasing OpEx.

Question 10: What is the plan for making payments in September for the debt with Hytrell Capital, and do you anticipate any near-term need for additional financing or dilution?
Answer: MicroVision has adequate cash to make the first payment in cash. If market conditions are favorable, the holder may elect to take payment in stock. The company will continue to be opportunistic in raising capital while being pragmatic about dilution.

Question 11: What military revenue opportunities are you targeting, and how should shareholders think about the revenue from this industry in 2025 and 2026?
Answer: The focus is on partnerships and demonstrating technology. The strategic importance of collaborations is emphasized over immediate revenue. The company aims to provide robust, integrated solutions for military applications, with minimal impact on OpEx.

[Sentiment Analysis]
The tone of the analysts was generally positive, with a focus on understanding the company's strategic direction and potential revenue streams. Management maintained a confident and forward-looking tone, emphasizing partnerships, technological advancements, and cost management.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 |
|-------------------------------|------------------|------------------|
| Revenue | $150,000 | N/A |
| R&D and SG&A (GAAP) | $14.1 million | N/A |
| Cash expenses | $11 million | N/A |
| Cash and equivalents | $91.4 million | N/A |
| Average daily trading volume | 5.2 million | 2.6 million |

[Risks and Concerns]
- Revenue concentration in the industrial vertical with no reported automotive or defense revenues.
- Outstanding convertible note balance of $33 million, potentially increasing dilution if settled in equity.
- Unpredictable automotive RFQ cycle, with large volume launches not anticipated before 2028.
- Incremental increase in near-term expenses for defense opportunities due to upfront demonstration costs.

[Final Takeaway]
MicroVision is strategically positioning itself in the automotive, industrial, and defense markets through enhanced institutional engagement, robust liquidity, and a focus on integrated hardware-software solutions. The company is advancing large-scale automotive RFQs, near-term industrial commercialization, and initial defense sector demonstrations while maintaining cost control. The outlook includes sustained spending levels, new product demonstrations, and revenue expectations from industrial engagements in 2026. The emphasis on partnerships and technological advancements positions MicroVision for growth, despite the challenges in revenue concentration and the automotive RFQ cycle.