Ruskin Felix Consulting (RFC) partnered with MicroVision, a renowned technology company specializing in laser beam scanning (LBS) technology for augmented reality (AR) products, to provide strategic risk advisory services. The comprehensive report prepared by RFC encompassed a product analysis and financial assessment to identify potential risks and opportunities for the company.
RFC conducted an in-depth product analysis, highlighting MicroVision’s competitive advantage through its patented LiDar product. The superior technology and limited licenses granted for the use of their LBS technology in products set them apart from competitors. Their micro-display engines play a key role in enabling wide field-of-view, high-definition, and see-through user experiences in AR headsets. The strong intellectual property and strategic partnerships reinforce their position in the market.
The financial assessment revealed challenges for MicroVision, including a low promoter holding and significant financial issues. With only 0.93% promoter holding and a high burn rate, the company faced cash flow problems and an unsustainable operational situation.
RFC presented two possible event outcome scenarios based on the LRL Sensor test scheduled for April 2021. In Scenario 1, a successful test with positive news would significantly increase the probability of attracting funding, leading to a higher target price for MicroVision’s stock. In Scenario 2, even with some negative news, a successful test meeting the standards could still attract funding, albeit with a lower target price compared to Scenario 1. However, in Scenario 3, if the test is unsuccessful and does not meet the standards or deadlines, it would pose challenges for funding, leading to a considerably lower target price for the company’s stock.
By presenting these scenarios and probabilities, RFC enabled MicroVision to better assess potential risks and opportunities associated with the LRL Sensor test and funding prospects. The strategic risk advisory services provided valuable insights to guide MicroVision’s decision-making process and develop contingency plans to navigate market uncertainties effectively.
