MVIS 10-Q filed 2026-10-30 | Key takeaways

Restructuring: 28% global workforce reduction announced October 26, 2026, predominantly impacting Hamburg, Germany office; expected to incur $4.0 million in charges by Q1 2027.

Customer concentration shifted: Q3 2026 revenue concentration from Security & Defense sector customers at 39%, 35%, and 10% versus Q3 2025 when automotive manufacturer and supplier accounted for 80% and 12%.

Liquidity: Cash and cash equivalents decreased to $28.9 million from $32.4 million at December 31, 2025; ATM facility availability of $41.1 million as of September 30, 2026.

Notes payable: Outstanding principal reduced to $15.0 million after $1.5 million conversion and $6.6 million cash repayment in October 2026; minimum cash liquidity covenant reduced to $10.9 million.

Going concern: Substantial doubt about ability to continue as a going concern through at least twelve months from filing date due to higher cash burn and historical losses.

Goodwill and intangible assets increased significantly to $3.7 million and $13.4 million respectively from acquisitions of Scantinel and Luminar assets.

Settlement gain: Recognized $1.7 million gain from settlement with contract manufacturing partner reducing open purchase commitments from $2.3 million to $0.6 million.

Subsequent to September 30, 2026, on October 26, 2026, the Company began implementation of a separate, incremental plan to reduce operating expenses and cash usage, which included an approximate 28% reduction in the Company's global workforce, predominantly impacting its office in Hamburg, Germany. The global reduction is expected to be largely effectuated by the end of the first quarter of 2027. The Company expects to incur approximately $4.0 million in charges associated with employee severance and related emp...

Subsequent to September 30, 2026, the Holder elected to convert $1.5 million of outstanding principal into 1,329,385 shares, and the Company repaid $6.6 million in cash. Outstanding principal was reduced to $15.0 million. The minimum cash liquidity covenant was amended from lesser of $17.5 million to lesser of $10.9 million.

For Q3 2026, 39%, 35%, and 10% of total revenue was derived from three customers in the Security & Defense sector, respectively. For the nine months ended September 30, 2026, 31% and 20% was derived from two Security & Defense customers, 15% from an industrial customer, and 10% from an automotive manufacturer. Accounts receivable from these customers accounted for 90% of total accounts receivable.

During Q3 2026, the Company received a $6.3 million grant from the German government related to R&D activities of its German subsidiary. Additionally, the Company entered into a settlement agreement with a contract manufacturing partner, paying $0.6 million to settle open purchase commitments of approximately $2.3 million, resulting in a $1.7 million settlement gain.

Luminar acquisition closed February 3, 2026 for $33.0 million purchase price plus $0.2 million cure costs. Preliminary allocation: inventory $3.8 million, property and equipment $13.2 million, developed technology $9.4 million (10-year useful life), customer relationships $3.1 million (10-year useful life), goodwill $3.7 million. Revenue from acquired operations for Q3 2026 was approximately $0.5 million with net loss of $3.7 million.

In August 2026, the Company entered into a securities purchase agreement and issued 2026 warrants to purchase up to 6.8 million shares of common stock at $2.50 per share. Warrants exercisable immediately, expire August 17, 2031. Initial fair value of $8.1 million recorded as warrant liability. As of September 30, 2026, warrant liability was $4.9 million (2025 warrants $43K, 2026 warrants $4.9 million).