MicroVision : Announces First Quarter 2022 Results

April 27, 2022

MicroVision Announces First Quarter 2022 Results

REDMOND, WA / ACCESSWIRE / April 27, 2022 /MicroVision, Inc. (NASDAQ:MVIS), a leader in MEMS-based solid-state automotive lidar and ADAS solutions, today announced its first quarter 2022 results.

"We made significant progress in the first quarter of 2022. We track tested our integrated Long Range Lidar sensor and perception software, demonstrating promising ground-truth data of our high-fidelity/low-latency solution at speeds of over 60 mph," said Sumit Sharma, MicroVision's Chief Executive Officer. "We continue to receive positive feedback and interest from automotive OEMs and Tier 1 suppliers for our best-in-class product with cost advantages."

"We began our testing in the U.S. and expect to conduct several more rounds of tests of our high-speed Highway Pilot system both in the U.S. and Germany during the second quarter as we work to deliver on our 2022 objectives," continued Sharma.

Key Financial Highlights for Q1 2022

Revenue for the first quarter of 2022 was $0.4 million, compared to $0.5 million for the first quarter of 2021.

Net loss for the first quarter of 2022 was $13.2 million, or $0.08 per share, which includes $3.7 million of non-cash, share-based compensation expense, compared to a net loss of $6.2 million, or $0.04 per share, which includes $1.6 million of non-cash, share-based compensation expense, for the first quarter of 2021.

Adjusted EBITDA for the first quarter of 2022 was negative $9.0 million, compared to negative $4.3 million in the first quarter of 2021.

Cash used in operations for the first quarter of 2022 was $10.9 million, compared to cash used in operations for the first quarter in 2021 of $4.5 million.

The Company ended the first quarter of 2022 with $103.3 million in cash and cash equivalents including investment securities, compared to $115.4 million at the end of December 31, 2021.

Conference Call and Webcast: Q1 2022 Results

MicroVision will host a conference call and webcast, consisting of prepared remarks by management, a slide presentation, and a question-and-answer session at 2:00 PM PT/5:00 PM ET on Wednesday, April 27, 2022 to discuss the financial results and provide a business update. Analysts and investors may pose questions for management during the live webcast on April 27, 2022.

The live webcast and slide presentation can be accessed on the Company's Investor Relations website under the Events tab athttps://ir.microvision.com/events. The webcast will be archived on the website for future viewing.

About MicroVision

MicroVision is a pioneering company in MEMS based laser beam scanning technology that integrates MEMS, lasers, optics, hardware, algorithms and machine learning software into its proprietary technology to address existing and emerging markets. The Company's integrated approach uses its proprietary technology today to develop automotive lidar sensors and provide solutions for advanced driver-assisted systems (ADAS), leveraging its experience building augmented reality micro-display engines, interactive display modules and consumer lidar modules.

For more information, visit the Company's website atwww.microvision.com, on Facebook atwww.facebook.com/microvisionincorfollow MicroVision on Twitter at@MicroVision.

MicroVision is a trademark of MicroVision, Inc. in the United States and other countries. All other trademarks are the properties of their respective owners.

Non-GAAP information

To supplement MicroVision's condensed financial statements presented in accordance with GAAP, the Company presents investors with the non-GAAP financial measure "adjusted EBITDA." Adjusted EBITDA consists of GAAP net income (loss) excluding the impact of the following: interest income and interest expense; income tax expense; depreciation and amortization; and share-based compensation.

MicroVision believes that the presentation of adjusted EBITDA provides important supplemental information to management and investors regarding financial and business trends, provides consistency and comparability with MicroVision's past financial reports, and facilitates comparisons with other companies in the Company's industry, many of which use similar non-GAAP financial measures to supplement their GAAP results. Internally, management uses this non-GAAP measure when evaluating operating performance because the exclusion of the items described above provides an additional useful measure of the Company's operating results and facilitates comparisons of the Company's core operating performance against prior periods and its business objectives. Externally, the Company believes that adjusted EBITDA is useful to investors in their assessment of MicroVision's operating performance and the valuation of the Company.

Adjusted EBITDA is not calculated in accordance with GAAP, and should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect all of the costs associated with the operations of MicroVision's business as determined in accordance with GAAP. The Company expects to continue to incur expenses similar to the non-GAAP adjustments described above, and exclusion of these items from its non-GAAP financial measure should not be construed as an inference that these costs are unusual or infrequent. The Company compensates for limitations of the measure by prominently disclosing GAAP net income (loss), which the Company believes is the most directly comparable GAAP measure, and providing investors with a reconciliation from GAAP net income (loss) to adjusted EBITDA.

MicroVision has included a reconciliation of GAAP net income (loss) to adjusted EBITDA for the relevant periods.

Forward-Looking Statements

Certain statements contained in this release, including the Company's plans regarding product demonstration and product capabilities are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include the risk its ability to operate with limited cash or to raise additional capital when needed; market acceptance of its technologies and products or for products incorporating its technologies; the failure of its commercial partners to perform as expected under its agreements, including from the impact of COVID-19 (coronavirus); its financial and technical resources relative to those of its competitors; its ability to keep up with rapid technological change; government regulation of its technologies; its ability to enforce its intellectual property rights and protect its proprietary technologies; the ability to obtain customers and develop partnership opportunities; the timing of commercial product launches and delays in product development; the ability to achieve key technical milestones in key products; dependence on third parties to develop, manufacture, sell and market its products; potential product liability claims; its ability to maintain its listing on The Nasdaq Stock Market, and other risk factors identified from time to time in the Company's SEC reports, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed with the SEC. These factors are not intended to represent a complete list of the general or specific factors that may affect the Company. It should be recognized that other factors, including general economic factors and business strategies, may be significant, now or in the future, and the factors set forth in this release may affect the Company to a greater extent than indicated. Except as expressly required by federal securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changes in circumstances or any other reason.

MicroVision, Inc. Balance Sheet (In thousands)

(Unaudited)

DecemberMarch 31, 2022

31, 2021

Assets Current Assets

Cash and cash equivalents

$ 55,611

$ 82,647

Investment securities, available-for-sale 47,651 32,720

Inventory

1,815 1,780

Other current assets

1,865 2,283

Total current assets

106,942 119,430

Property and equipment, net Operating lease right-of-use asset

3,248 3,026

5,368 5,577

Restricted cash Intangible assets, net Other assets

Total assets

Liabilities and Shareholders' Equity Current Liabilities

Accounts payable Accrued liabilities Contract liabilities Other current liabilities

Current portion of long-term debt Current portion of operating lease liability Current portion of finance lease obligations

1,092	1,092
105	115
1,014	985
$ 117,769	$ 130,225

$

1,919 $ 3,584

1,288 1,170

4,915 5,265

474 1,181

98 392

686 849

24 21

Total current liabilities 9,404 12,462

Operating lease liability, net of current portion Finance lease obligations, net of current portion

Total liabilities

Commitments and contingencies Shareholders' Equity

Common stock at par value Additional paid-in capital

Accumulated other comprehensive loss Accumulated deficit

Total shareholders' equity

Total liabilities and shareholders' equity

MicroVision, Inc.

Statement of Operations

14,301

746,028

(642,601 )

103,468

$ 117,769

(In thousands, except earnings per share data)

(Unaudited)

4,882 4,983 15 26

17,471

165

164

742,042

(124 )

(19 )

(629,433 )

112,754

$ 130,225

Three months ended

March 31,2022

2021

Product revenue	-	-
License and royalty revenue	350	479
Total revenue	350	479
Cost of product revenue	4	(5 )

$

$

Total cost of revenue	4	(5 )
Gross margin	346	484
Research and development expense	7,593	4,462
Sales, marketing, general and administrative expense	5,877	2,247
Total operating expenses	13,470	6,709
Loss from operations	(13,124 )	(6,225 )
Other expense, net	(44 )	(6 )
Net loss	$ (13,168 )	$	(6,231 )
Net loss per share - basic and diluted	$ (0.08 )	$	(0.04 )
Weighted-average shares outstanding - basic and diluted	164,563	155,454
2021

MicroVision, Inc.

Reconciliation of GAAP Net Loss to Non-GAAP Measure

(In thousands, except earnings per share data)

(Unaudited)

Three

months

ended

March

31,

2022

GAAP net loss

Add Interest (net) Add Income taxes

Add Depreciation & amorization

Add Share-based compensation expense Adjusted EBITDA

Investor Relations Contact

Jeff Christensen and Matt Kreps Darrow Associates Investor [e-mail]

SOURCE: MicroVision, Inc.

$ (13,168 ) $ (6,231 )

- 483 3,734

(31 )

5 - 299 1,638

$ (8,982 ) $ (4,289 )