Good afternoon, and welcome to the MicroVision second quarter 2023 financial and operating results conference call. At this time, all participants are on a listen-only mode. At the end of today's presentation, there will be an opportunity to ask questions via a chat line. Investors can submit their questions within the meeting webcast by typing them into the Q&A button on the left side of your viewing screen. Analysts who publish research may ask questions on the phone line. For analysts to ask questions on the phone line, please press star one during that time. Please note, this event is being recorded. I would now like to turn the conference over to Drew Markham. Please go ahead. Thank you. I'm pleased to be joined today by our CEO, Sumit Sharma, and our CFO, Anubhav Verma. Following their prepared remarks, we will open the call to questions. Please note that some of the information you'll hear in today's discussion will include forward-looking statements, including, but not limited to, statements regarding our customer and partner engagement, product development and performance, comparisons to our competitors, market opportunity, product sales and future demand, business and strategic opportunities, projections of future operations and financial results, availability of funds, as well as statements containing words like potential, believe, expect, plans, and other similar expressions. These statements are not guarantees of future performance. Actual results could differ materially 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 our 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. 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 our CEO, Sumit Sharma. Sumit? Thank you, Drew, and welcome everyone to this review of our second quarter 2023 results. We're very pleased with the accomplishments of our team during the second quarter towards our annual and multi-year goals. I'm happy to report that the strategic changes we initiated in Q1, completion of our acquisition and plan integration, proceeded smoothly. With our combined global team and expanded LiDAR and software portfolio, we can address the needs of our OEM customers with a wider range of solutions. I would like to elaborate on this a bit later. We continued developing our revenue streams for strategic and other channels, and I'm very happy with the progress we've made so far. The biggest opportunity for the company remains in strategic partnerships with automotive OEMs for our LiDAR products. First, I would like to start by updating you on our progress on RFIs and RFQs. We remain engaged in multiple RFQs with multiple OEMs that are expected to be nominated in 2023. We are the only LiDAR company that offers multiple technology nodes from highest resolution, smallest form factor, long-range LiDAR and our MEMS-based MAVIN, as well as a small form factor, short-range, sequential flash-based MOVIA LiDAR product lines. Our teams remain engaged with multiple OEMs who are looking to identify their next LiDAR partner for expanded ADAS safety for their passenger vehicles and commercial trucking product lines to be nominated in 2023. The combined lifetime volume of all the programs up for nomination in 2023 are for millions of units. This, of course, is the most exciting part. We have the right products that are targeted to supply ADAS safety for high-volume passenger vehicles and commercial trucking. We remain very excited about where we are in the nomination process. In case of a program win, we expect two phases for the engagements. In the first phase, we expect to customize our core technology to the specifics of each OEM's needs under a development agreement. In the second phase, we expect to supply parts as the ADAS Tier 1 with our contract manufacturing partner under a master supply agreement with each OEM. For the phase I, with our core technology remaining the same, we expect modifications will be required for the product mechanicals, thermals, and some custom perception software features, security, and interfaces. All of this would have to go through extensive validation, verification on our side, and more so from our potential partners. We don't expect customization to be a high-risk path for our team. We also expect multiple production lines will be required at our contract manufacturing partner to support customer production sites in North America, Germany, and Asia in this phase. In case of multiple nominations, all OEMs will want to validate that we have dedicated engineering resources for their programs. I am very confident in the size of our global team and our capability to add talent as needed to support multiple program wins. We are heavily engaged in financial due diligence as well. The continued strength of our balance sheet and capability to fund operations until the start of production is a requirement in all possible nominations. Management has articulated this to our investors and the broader market clearly in the first quarter, as you may recall. Again, I believe we are well positioned for this item, being a publicly traded company on the Nasdaq with no debt, control of our expenses, and a clear understanding of how to grow proportionally to meet the needs of multiple potential customers. Just to summarize my assessment of the engagements, our technology and products are being well received. Our solutions offer the highest technology in the smallest form factor, with long-term cost stability based on our custom silicon. I strongly believe we remain on target for our 2023 objectives for strategic sales. Second, I would like to update you on our direct and software sales efforts. These segments will contribute meaningful revenue on our path to mass production for LiDAR products. In order to start our revenue cycle with Movia direct sales, we expect to place a large order for Movia sensors. With this inventory in place, I see us accelerating paths to revenue. With our team in Germany and our new team in Detroit, we expect great things in the future. As you may recall, I've been a partner with ZF Autocruise, with a production line that was qualified to automotive C-sample level. The custom silicon for MOVIA sensor was developed and owned by our Hamburg team. This product and the partnership were part of the Ibeo acquisition, and we expect to provide a mature product to support our direct sales markets. Having inventory will allow us to expeditiously enter a wide range of markets looking for LiDAR solutions. We still experience many moving pieces, including macroeconomic factors, for direct and software sales. We have great contacts and a good sales funnel for these segments. In general, I'm very confident that in the future we will have stable direct sales of our MOVIA sensor and our reference software suite to generate meaningful revenues. Third, I would like to update you on the broadest and the most comprehensive LiDAR product portfolio that MicroVision offers and the advantage it represents. We are a unique LiDAR company. We offer a long-range dynamic LiDAR with unmatched performance, size, cost, and immunity. We also offer a sequential flash-based, short-range LiDAR with unmatched validation, performance, cost, and silicon maturity. We will remain competitive with a wide range of RFQs every year with our LiDAR products. I believe this will allow us to scale our business faster than anyone else on the scene. In addition, we will offer various levels of perception from the LiDAR products that eliminate the need for additional AI ECU, and instead integrate with the computer platforms developed by companies like NVIDIA and Qualcomm. This remains our go-to-market strategy. I can say with confidence it is the preferred path I have seen in feedback from OEM engagements. This will remain one of our biggest advantages for a long period of time. This is a testament to MicroVision's foresight on products. Beyond that, we continue investing modestly in sensor fusion system development. This represents a future opportunity to expand our LiDAR sensor sales and supplement with software. I want to conclude by thanking our global team for their hard work that has allowed us to be well positioned for an incredible year ahead of us. I would like to now turn over the call to Anubhav to talk about our financials. Anubhav? Thanks, Sumit. I'm really pleased with the progress we have made in the first half of 2023. I'm proud of the company we're building at MicroVision, especially with the integration of our teams in the U.S. and Germany. Our acquisition has positioned MicroVision to become one of the most experienced and technologically advanced LiDAR hardware and software companies in the market, with over 50 years of combined operating history and 735 patents. Sumit talked in detail about our progress on RFQs on the technical front. Now let me discuss some of the key financial items that the OEMs are looking for in their due diligence on prospective LiDAR suppliers. In particular, it is important for suppliers like MicroVision to show strength in the following two areas. 1. Sustainable existing cash burn, allowing a longer financial runway. 2. A bility to scale up operations to handle multiple high-volume RFQs, both in terms of dedicated engineering resources and production capabilities. On point number one, MicroVision continues to demonstrate one of the lowest cash burns out there. Our long, publicly disclosed operating history shows that MicroVision has been consistently disciplined about deploying capital for growth. Point number two, MicroVision has the strategic advantage when it comes to quickly and efficiently scaling up operations. As we consider multiple RFQ wins, we have the ability to add dedicated engineering resources at the customer's preferred locations in either North America or Germany. In addition to the maturity of our technology and superior technical specs, the above advantages are also positioning us well with these RFQs. Our customers and potential partners, including contract manufacturers, appreciate MicroVision's strong and deep IP portfolio and our industry experience, financial discipline, and technical know-how, all of which are key differentiators for us. We're thankful to our shareholders for supporting us in presenting our best foot forward with the OEMs in the RFQ processes. Let's dive into the Q2 2023 financials. For the second quarter, we recorded revenues of $329,000. This revenue is both from automotive as well as non-automotive customers. The revenue in this quarter is lower than the first quarter, as some of the non-automotive customers pushed out their delivery of units. We expect the momentum in revenue to pick up in the third quarter. At this time, we're maintaining our $10 million-$15 million revenue targets. Over the past several months, we have invested in our sales team by bringing in some highly industry talented veterans, especially in the Detroit area. I expect some opportunities, especially in the direct sales business, to ramp up in the second half of this year as our sales team put their energy, experience and energy to work for the company. To remind investors, our direct sales model includes the sale of MOSAIK to automotive customers and MOVIA to non-automotive customers. This obviously has a much shorter sales cycle. To that end, we have placed an order to build new MOVIA inventory with ZF Autocruise to help satisfy the demand from non-automotive customers. We expect this strategic investment and inventory build-up to drive the revenue growth of the company in the near term. We expect the revenue momentum to pick up in second half this year and into 2024 as our RFQs progress and software sales materialize. In 2024, we expect there will be NRE revenues associated with RFQ wins related to specific customizations required to products, mechanicals, firmwares, and custom software for security. Coming back to this quarter, the split of the quarter's revenue is approximately 45% hardware and 55% software. The customers in the hardware revenue stream include customers in the industrial and agricultural sectors. The customer in the software revenue streams include major automotive OEMs. Before we move on to expenses, a quick recap on Microsoft. We received communication from Microsoft that no units delivered in this quarter. As a result, we still have an unapplied $4.6 million balance left on the contract liability. Our agreement with Microsoft continues to be in effect, with an expiration date of December 2023. Expenses. In terms of expenses, we had approximately $24 million OpEx, including R&D and SG&A. This includes $3.9 million of non-cash stock-based compensation and $1.6 million of non-cash depreciation amortization. Besides this, this also includes about $2 million of one-time transaction expenses and related integration expenses that occurred in this quarter. We expect the run rate of the expenses going forward to be approximately between $16 million-$17 million a quarter. For the second quarter, $16.6 million cash was used in operating activities, which was well in line with our 2023 full year guidance. To remind our investors, we continue to show discipline with our cash burn being on the expected trajectory. In these times of uncertainty and weaker macroeconomic conditions, MicroVision stood out and beat competitors in terms of maintaining one of the lowest burn rates in the industry, with a highly talented pool of engineers in both the U.S. and Germany, and a strong balance sheet. As expected, CapEx in the second quarter was $0.9 million, was in line with our expectations. This quarter, we also received $3 million of incentive payments we were expecting to help us recover the build-outs and tenant improvements associated with the move into our new headquarters in 2023. This payment hits the other income line item on the P&L. Let's talk about our cash position. As of June 30, 2023, we have made the majority of the payments associated with the Ibeo acquisition. We have an expected liability of EUR 2.7 million still on our balance sheet related to the acquisition. We expect to pay this to the seller later this year once both parties reconcile and agree to the amounts. Our total liquidity was $94 million as of June 30, including cash and cash equivalents and investment securities. As an update, we had announced a follow-on capital raise in June to strengthen the balance sheet. We chose to withdraw the offering and instead proceed with the ATM program. This was a strategic decision intended to ensure the best possible outcome for the company, while minimizing shareholder dilution and fees related to the capital raise. Based on our current operating plan for 2023 and beyond, we anticipate that we have sufficient cash and cash equivalents to fund our operations through at least the end of next year. Looking ahead, we are excited about 2023 as we march forward on our path to $10 million-$15 million in revenue this year. We believe our three product lines, MAVIN, the perception software LiDAR sales with non-recurring engineering revenues from OEMs, MOVIA, the sales of flash-based LiDAR for non-automotive customers, and lastly, MOSAIK, the sale of auto-annotation software for automotive OEM validation, should be able to drive momentum in the remainder of the year. To summarize, we're really excited about 2023 and beyond. With our milestones and key focus on winning RFQs, we'll be proving to the market our value proposition as a unique, well-positioned LiDAR company. I would now like to open the line for questions. Thank you. At this time, we are conducting a question and answer session. Investors can submit their questions within the meeting webcast by typing them into the Q&A button on the left side of your viewing screen. Analysts who publish research may ask questions on the phone line. For analysts to ask questions on the phone line, please press star one. Our first question does come from Andres Sheppard with Cantor Fitzgerald. This is Anand for Andres. Congrats on the quarter, and thanks for taking our questions. I've got a few here, and I just wanted to start with the recent reported revenue drop to $300 million. I just wanted to check to see how confident you are in reaching the midpoint of guidance, so about $12.5 million, that you just reaffirmed your range of $10 million-$15 million. How do you guys expect the revenue to be spread out in the back half of the year between 3Q and 4Q? Thanks, Anand. Yes, I think, as I had mentioned in my remarks, we expect that the third quarter, the revenue momentum to pick up. This was primarily because some of our customers pushed out their deliveries, which we're expecting to happen in the third and the fourth quarter this year. Primarily, the growth is gonna come from the sale of MOVIA, and to that end, we have invested in building up the inventory. As I mentioned in my remarks, with the ZF Autocruise, where we have placed an order to stack up the inventory that we can use to satisfy the demand in the second half of this year. Besides that, I expect the momentum in the sale of MOSAIK, as well as to some of our automotive customers, where we are in the process of installing and implementing that software in their ecosystems for that work. I, I do feel good that we should, we are confident about hitting the guidance in this year based on these factors. Lastly, we had invested in bringing on some talented industry veterans in, especially in the Detroit area, who have background in both in automotive as well as non-automotive customers, to accelerate the momentum and get the shorter sales cycle, which is, again, the MOVIA and the MOSAIK product, to help us hit the revenue targets that we have announced for this year. Gotcha. Thanks, Anubhav. That's helpful. I just wanted to switch gears to the gross margin and wanted to see what the driver was behind the drop in gross margin, and how do you expect margins to progress over the rest of the year? Yeah. The gross margin drop was primarily due to economies of scale. Obviously, as we sort of put more revenue through the funnel, we expect the gross margins to be, again, what we had described earlier. And we expect to hit the target of over 30% gross margins in this year, because, again, the margins are primarily coming from the sale of software and hardware from that standpoint. Yes, so we do expect to hit our numbers from a gross margin standpoint. Got it. Sweet. Just to switch gears a little bit. I know you talked about this a little bit with OEMs. I wonder if you could give us an update on discussions you're having with an OEM, or when you might be able to expect your first partnership with an OEM, or how you would potentially expect NREs to eventually materialize. I'll take that one. I think as I've clearly stated, right, I think we stay on track for 2023. I think, not just us, I think it's, you know, everybody that's in the mix of it will tell you the same exact thing. It's pretty clear that they want the nominations to be done this year because they want to get going. They have a very specific timeline for delivery, and SOP. I stay, I stay pretty confident that, you know, the nominations would be in 2023, as the OEMs have, and these different OEMs have indicated. Gotcha. After that, of course, you know, think about it, right? Every vehicle, you know, think about a, you know, a consumer vehicle versus, you know, a trucking application. You have to customize it. The core technology is the same, but they need some level of customization, you know, on the software side, on the hardware side, on the thermals. There's that whole, you know, customization part of it. It's not, you know, it's not a full-blown development, right? The core technology is the same. The reason they're picking somebody who's ahead is when they look at the silicon part of it, or they look at the technology development part of it, where's your level of maturity? They don't want to change that core part, but they want to customize what they need. A lot of it is in software, too, and a lot of it in the NRE is going to come from, you know, validation, verification has to be done for their scenarios, right? We have to give them a validated product, and of course, they're going to do their own validation with themselves or the third party. On top of that is, like, there's always some customization on the mechanical, right? You know, how do you mount it? You know, what, which side of the connector, what connector do they want? You know, some other customization on the inside, on the thermal side of it because of that, right? I would not quantify this as something that starts new development. Like, some of our investors that have known us for a long time, when they think about customization, they may think about, you know, what we did for Microsoft, what we did for Sony. Those were full-blown development programs, right? That's not it. We've already funded the core development to a certain point. The NREs will cover the customization for each individual, and as you can imagine, a production line has to be put into place for whatever they want. And you can't have a single customized line, a single line that's going to make, you know, low volume, high mix. It's not going to make one part for one, one part for the other, because each and every one of these product lines and RFPs we're talking about has pretty high volume, so you're going to need multiple lines done also in parallel. For all that work to happen in the timeline that they have, they clearly understand, they, they've dove deep into it with our team. You know, thousands of hours have already been spent by our team on this, I can assure you that. They have a very good understanding of, you know, how that has to be executed and what the timelines are. That's why I feel pretty comfortable, and the NREs are gonna be, you know, some magnitude, but you know, it's clearly not gonna cover all our development because it is our core technology, and we intend to not license it away or give the IP away to anybody. Gotcha. Anubhav, I don't know if you have something to add to this. No, I think you covered it also. Thanks, guys. That's very helpful. I've just got one last strategy question. I was wondering if you guys have plans for expansion in the non-automotive market with Ibeo, if OEM revenues take longer than expected to materialize, and if that were the case, what segments would you be focusing on, and how would you view the trucking market for this purpose, like automated trucking? I think, I think if you think about the trucking market, let's, let's make a distinction, and this is a pretty important one. There are actually 2 trucking markets. One, of course, is there are trucking OEMs that, you know, they operate. I mean, they have low volume, you know, they don't have millions of units per year or millions of units of, you know, outlook, right? Pretty substantial volumes there, right? But they operate just like an OEM. They go through a RFI, RFQ. They have, you know, very strict requirements. That's one piece of business, right? That will always. You know, that's something, of course, people have neglected so far, right? I mean, of course, that is in play always, so I'm pretty excited about that, actually. You know, more safety coming to 18 wheelers all over the world. That's great. I think what you're referring to is there's other trucking applications, you know, or companies all over the United States and Europe, and even in Asia, that buy sensors, and they're developing their core product, which is a software product, right? If you think about it, there's two trucking partnerships there. Certainly, the, you know, the direct sales part, you know, that's where our team comes in. You know, we can sell there, we can sell sensors, we can sign deals. You deliver hundreds of thousands of parts to them. There's a schedule to that. When you go on the other side, now you start looking at, like, hundreds of thousands of parts, because any kind of trucking application, right, you are going to have multiple LiDAR. You know, I think, in our, in our deck, we talk about, you know, we show a simulation with real LiDAR data that was collected to show what coverage you can get around and how many sensors that would take. For a typical trucking application, it could be, depending on some configurations, could be from somewhere as many as five-six different LiDAR. The one that I think that in that picture we demonstrated is our MOVIA product. Now, imagine if you want to do long range, front and back, you know, there's multiple in there. When it comes to the OEM trucking, these are, you know, substantial numbers. They're not in the millions, but they're certainly, you know, they're pushing, you know, in the high hundreds of thousands, right? for the lifetime. There's multiple trucking partners in the world. There's not 500 of them, but there's some good, good amount of them. It could be a really good, strong business, but it piggybacks onto, you know, how they're rolling out their process. You know, how trucking industry is transforming. I think, I think perhaps the foundation of your question was, will we, you know, U.S. companies like Aurora and others that are developing really, you know, automated trucking, but their core product is software. Certainly, you know, I think about that as direct sales. You know, we have a team that connect with them. We want to be their sensor provider, right? You know, they, they may make their truck with Conti or whomever they make it with, right, and they own the software, but we want to be specified or be specced in as a, the LiDAR provider for that, right? Certainly going to work on that as well. These are both applications. How would that accelerate? Certainly, like, you know, that's why we like to call it direct sales, because it's more of like kind of a spot sale. You can get more clarity. It is a key part of our strategy, and that's why we're ordering, you know, all these MOVIA sensors for inventory, because we see a path to that, you know, ahead of us. Having inventory, I think at this point, we feel comfortable that the funnel has developed pretty well. I mean, just recall, a year ago, when Ibeo filed for insolvency, it was, you know, MOVIA did not have or the, the next sensor they used to call it, right, did not have a lot of path. It's all for insolvency. You know, we resurrected the product. I really believe in it. I think it is, you know, it's a great product. It does solve a lot of problem with short-range LiDAR, you know, when you need multiple sensors around it. For trucking, that's been missing all along. Nobody's ever offered that. You have cameras, you have radar, but nobody's been able to give a LiDAR that can give you 30, 40, 50 meters, 360 around a truck in a very stable form factor. I think we're new at that. We're the first one in there. Yeah, absolutely, direct sales will be there, and OEM sales will be there. Direct sales is our bridge from now till start of production for some of these programs we're talking about. Gotcha. Thanks. That's very helpful. That's all I've got. Thanks again for taking our questions, and congrats again on the quarter. Looking forward to the ramp this year. I'll pass it on. Thank you for your time. Thanks, Anand. Thank you for those questions. I will now turn this call back over to Anubhav Verma to read questions submitted through the webcast. Thanks, Mike. I think, one question that we're getting is, can you talk to us about the product portfolio and how it helps MicroVision as a whole, and the strategic rationale behind the product portfolio, and how does it differentiate us as compared to the peers? Yeah, this is a good question, I, I think that we talked a little bit about it in April, but, you know, I'm probably gonna put a few more accents on it. All right, everything that we've been talking about in MicroVision and others talking about is really about the long-range LiDAR. It is a big deal. It is really big. It is gonna be a big winner, right? Yeah, that's important. If you think from an OEM standpoint, they're trying to deliver not just a long-range LiDAR in your car, they're trying to deliver a, a product, Level 3, Level 2, Level 4, whatever level they wanna go to, they wanna deliver a product with a certain amount of safety. I think, the MOVIA product and the MAVIN product, if you think about having two LiDAR products that are not exactly the same technology node, there's two different technology nodes. It's a huge advantage we have that nobody else has. You know, we get into more RFQs and RFIs, in my opinion, because we have multiple technologies, right? In some cases, even if they may have made a choice for a long-range LiDAR, that may or may not be working out, and we're promoting our LiDAR. You know, we-- just in this year, I mean, I've been very excited about what we were able to achieve, you know, with our, with our team. That same promotion, we started showing them the MOVIA product, and we started getting traction. This is great because they have multiple needs, and there's very few people out there that can actually provide all the LiDARs that they would need at a certain price point, at a certain certainty of technology. The important thing, if you think about the LiDAR product only as a standalone, it's like we're the one-stop shop for all the LiDAR needs that they have. That for a young company like us, for the acquisition that we pulled off, I think this is a great thing, and nobody's got that. Everybody's gonna keep talking about the long-range LiDAR. They're gonna go from one victory or one loss or one victory to one loss. You know, that's gonna be they're gonna ebbs and flow, their business will be theirs. Ours is different because we are gonna be in more RFQs every year. I'm pretty confident about that, just if in 2023 is an example for me, personally. I think, think about that as a LiDAR product. Let's take it like one step above that. Perception we talk about, perception is something that every OEM to a certain level wants, even if they don't want the, the, the main perception is morphed into different things for different people. At the end of the day, it's how that you take the LiDAR data, apply some amazing software to it, and you can extract information features on the fly at frame rate. This is, this is really, really hard and, you know, if you think about it, in frame rate, it is actually identifying what's happening. It's extracting that information, and they want that, and that's called, like, an object-level interface, right? That's, that's also very important to them, is if that was coming from a ASIC or SoC inside our product, instead of some AI product that is, you know, sitting between the LiDAR and the domain controller, the overall system cost is lower. That has also been developed, and it's been something very mature, and that's part of the Ibeo acquisition. That's, you know, that's one of the teams that I've been very excited about, you know, integrating. All our LiDAR products, in my opinion, not in my opinion, like, you know, what the market is gonna require, you're gonna need perception, and we have that. Again, different people are talking different things, but, you know, none of us have to be geniuses. Just think about it, right? If you're an OEM, what do you want? You want the highest possible technology in the smallest form factor, the lowest power, and a cost they can predict for a decade. I mean, that's the point that everybody should know, that if you're sitting in the chair, that's the number one thing you look at. Are these guys gonna be able to deliver this product at this price at a long period of time? Can I trust them? People can try to increase their price point as much as they want, the ASP as much as they want, with all the talk about software and core products and whatever, right? This is like bread and butter stuff. Everybody should know that. You're, you're investing in a LiDAR company. You know, LiDAR, you better have software that enables them to do something better, faster, cheaper. By adding our perception, we strongly believe that the overall system costs can be reduced. This is just the LiDAR products, by the way. It's not about sensor fusion, this is just the LiDAR products. If you think about it, these are product lines that complement each other, but the perception does not exist by itself. It exists inside the LiDAR, enabling these partnerships. You know, somebody can just give a LiDAR with a streaming point cloud, or we can give a LiDAR with all the features that I described, but on top of that, perception with object-level interface. We will have a huge advantage on top of the fact that we have multiple nodes. Based on what they need, we can give them the right technology instead of trying to shove in a product, you know, with like eight LiDARs or MOVIA, when I can just have a MAVIN, you know, with a dynamically LiDAR, do something very special. That's how you think about that product line. Now, when it comes to sensor fusion, what's that about? Well, that's, as I said, it's a very modest investment. Once you have a LiDAR, an amazing LiDAR, and you have this perception-level software, the next level above that OEMs struggle with is just a demonstration even of, like, how sensor fusion can be done, how redundancy in the system can be done better than what their teams are doing, which are integrating cameras and LiDAR and radar all together, but they have a different architecture. It's like really great R&D to start demonstrating that. It's not R&D for R&D's sake, because there's a product there, actually. Long term, we could probably make a chip with, you know, our software running on it that sits inside the domain controller next to the NVIDIA chip or next to the Qualcomm chip, and it's an accelerator where radar data can come in and our LiDAR data can come in, and without object-level interface, we could actually have higher-level software running inside there that, you know, seamlessly takes up the load that the, the chip over there, you know, is running out of resources for. Again, reducing overall system costs. This product line eventually is also gonna complement our LiDAR. Again, it's building layers and layers of stickiness to our products, to our customers, and solving their problems efficiently without requiring thousands of engineers. If you think about it, with the 350 or less, less than 400 people we have in the company after the acquisition and the exercise of capital, we've really built out some great products. I totally get people's frustration, like, "Well, when are you gonna announce deals?" I think, like, you know, we've stayed consistent with, like, what the timelines are gonna be, and we're performing to that. Then the last thing, of course, is the MOVIA sensor. I'm sorry, the MOSAIK software. The MOSAIK software is unique. It's sort of like a, you know, a, it's something that precipitated from what the perception team had done. It's something that's needed for validation anyway, for validation and the verification. It turns out that that software is something that actually our customers, our OEM customers, also want for their own validation. It's, kind of like a side hustle, and it's a pretty nice one, and it's a great team that we have there that's actually supporting them. We intend to just keep, you know, engaging with OEMs with that. The benefit we get out of it is that a very central part of our thesis, for our product thesis is, is perception is very, very important long term, okay? Well, if I have the validation software, if I have the reference suite software there, I get to learn about the perception features that every OEM is thinking about years in advance to ever put ink to paper on an RFI that any of my competitors see. It's totally worth shareholder money to keep investing in it because it gives an advantage. Like, you know, once we have multiple agreements done, right, this will be moot, because then we'll realize we're actually fueling our future development with the small pockets that we have. These are pretty nominal investments right now. If you think about everybody talks about their LiDAR, you know, it's all circular, right? If you just actually Venn diagram it and map it out what they're saying, you can decipher exactly what me and Anubhav are always able to do when we hear somebody else's earnings call, right? Ours is pretty straightforward. We have a product portfolio that addresses the needs for the OEMs, and that is gonna remain the big prize. Strategic sales is very important, absolutely. I totally acknowledge that. That will never be possible unless you have a high-volume customer that gives you the economy of scale to reduce the price, to really make a dent in that market with margin. Any company that is doing, you know, direct sales right now is not that successful because the economy of scales are not there, their margins are low, massive amount of OpEx required to keep running it. It's broken, right? The business we built out actually is gonna work once we get these strategic deals done. That's very, very important to get these production lines up and running. As we're supporting our OEM customers, one of the offshoot is we can do direct sales. We have software that gives us insight into what is coming around the corner. Of course, we have the perception built out to a level that is significantly higher than where anybody else is. You know, before we start investing significant amount of money in building more, we're just focusing everything on getting these OEM deals done. I think, like, you know, it's a, it's a long answer. Obviously, I feel very passionately about it, but I hope that, you know, gives you a pretty good understanding of how all these products are layered in, and the story is the same, consistently the same. Thanks, Anand. I think the second question is also similar on these lines, is, I think you mentioned talking about the AI chip. Can you elaborate what's the difference between that and MicroVision strategy? Related question is, have you completed the analog and the digital ASICs for MicroVision? As I said before, the analog, and that's the easy one, I'll answer that first. The analog and digital ASIC. The analog ASIC has been started, the digital ASICs, you know, plans are started. I think the ASIC, when you say the word complete, I think you may meaning that, you know, the-- you know, we- do we have the, the production masks done and those chips in? That's not done yet, but that is part of it. Like, you know, this is where we are, and we have started those chips, and our intention is to finish out the MAVIN. On the MOVIA side, of course, they already existed, so you know, that's a lot more mature. I think the question is about the-- let, let me get that right, Anubhav. Is it the AI chip? I think I could not understand it, actually. Could you repeat that question, please? Yeah, I think in your remarks, you had mentioned the AI chip- Ah. that competition is using versus what the MicroVision's value proposition is. Yeah, I think this goes back down to how we do perception, how we think about perception. System cost is very important to OEMs. They can do prototypes, and they can do, like, little demos, and they can have computers all over the place. At the end of the day, if you're gonna put it into millions of cars, all of us know, it's a very, very cost-competitive environment with high technology. The cost competitiveness has to be demonstrated. What's fascinating and amazing about our perception is think about them as, like, more classical algorithms that have been developed, okay? They've been validated for certain scenarios. These are more powerful, actually. You know, these are equations. Think about them as, like, more algorithms, like equations. You know, they are pretty, you know, pretty straightforward in that sense, but it takes a lot of elegance to get to a point where you understand the scene and what's happening in it, where you can predict what will happen, and you can do object-level interface much easier. AI is, like, a nice thing, you know. I mean, I have Adobe Pro now, you know, I can do generative AI now or Photoshop. I mean, it's all over the place, right? If you think about OEMs, you can't just put AI in, you know, in the middle of everything there. It's kind of really well controlled. I can say with the greatest confidence, when we talk about perception, it goes a lot further because they realize how it's been executed. It is not some, like, willy-nilly. It's a feature that is gonna be delivered to a specification, to a system requirement document. It can be traced. It is not, you know, you know, just nobody knows in the black box how it does what it does. They know exactly how it's gonna work, and they're gonna trust it. I'm not a big believer that, you know, these AI core boxes that people are delivering, right? Things that NVIDIA and Qualcomm already do, that's not the best use of shareholder resources to develop, right? We have something that's developed. It was done really well in Hamburg to begin with. It's the really, you know, the main reason why I was very, very interested in, you know, the Ibeo acquisition. I think that, you know, we are in a great place, and the evidence of that is, I mean, I don't know how else to answer this. The, the evidence is based on, you know, the meetings that I've been part of or, you know, the things that I've seen so far from OEMs. I feel pretty comfortable where we are. I can't really comment on what strategy others are deploying and where they got that information. All I can tell you is everything that I've reviewed, and I've, you know, I've talked to everybody within the company, I, I don't see anything where perception is gonna be some AI box. You know, that's just our experience. We're talking to multiple OEMs and multiple RFPs, so. Thanks, Sumit. Can you give us a little more color on the financial due diligence by the OEMs, and how should investors be thinking about these risks? I think let me take that. I think the first thing is, I think perhaps OEMs have learned their lessons from the past, and I think that's why they are conducting a lot more extensive due diligence this time on suppliers. This involves some extensive modeling to fully model how the business and the revenue streams will evolve in the case of multiple wins over the next several years. They wanna fully understand how will the company be supporting these programs, and that includes modeling headcount projection by geography. I think if you recall, I had mentioned, based on OEMs needs, their resources, the dedicated resources, might be placed in North America or in Germany. Modeling that is what we are right now in the phase of. Obviously, the cash requirements from a C-sample into production, maintaining the silicon inventory, which remain the key critical points of how will this all happen in the next three years. Obviously, I think what Sumit Sharma described was the non-automotive revenue and the NRE, which is gonna support the cash flows from this. This is all what's going into the modeling. In the back end, this is how we are moving towards, going from, lowering the cost of capital, from equity, moving all the way to fixed income-based capital based on the income streams that will be generated and the receivables, that will be part of the balance sheet, which would ultimately make MicroVision a more, traditional company, with a lower weighted average cost of capital, is what the OEMs are looking for, a model of how this will all happen in the case of multiple, RFQ wins in the next, three years. This is what, the financial due diligence, entails, with our customers as well as our partners. This, not just OEMs, our, our partners are also evaluating us and as we are modeling this out and helping them prove out why we are better positioned to evolve from where the company stands today into three years from now, from a cost of capital standpoint. The next question is: Is MicroVision pursuing consolidation M&A opportunities as some of the weaker LiDAR players falter? Yeah, let me take that question as well, Sumit, if you don't mind. Look, not at this moment. At this moment, we are focused, laser focused on our organic targets of multiple RFQ wins and building the business around that. Look, if something come along that are strategic and that accelerate our path to get to get there, who wouldn't consider that, right? Yeah, if I were to answer this question on a short, long answer short, at this point, we're laser focused on our organic targets for the company. With this, I think we're bumping up against our time. Thank you again for everybody joining on our second quarter call. We look forward to speaking with you again and post you with the company updates on our third quarter call next quarter. Thank you so much. Thank you, everyone. Thank you. This concludes today's conference. All parties may disconnect and have a great day.