MicroVision, Inc. (NASDAQ:MVIS), a company specializing in electronic components, announced on Wednesday the renewal of Chief Executive Officer Sumit Sharma's employment agreement. The new contract, effective from July 24, 2024, supersedes the previous agreement dated April 8, 2021.
The terms of Mr. Sharma's updated contract maintain his current base salary at $530,000, subject to discretionary adjustments by the company's Board of Directors. Additionally, he will be eligible for both short-term and long-term incentive compensations, including equity awards, although the specifics will be determined by the Board.
Mr. Sharma is also set to participate in MicroVision's Key Executive Severance and Change in Control Plan at the highest levels, as outlined in a previous SEC filing on June 10, 2024. This plan provides certain benefits in the event of a severance or a change in the company's control.
The CEO's short-term incentives include a bonus opportunity equal to 100% of his base salary, contingent on achieving specific financial and individual business objectives under the 2024 Executive Bonus Plan. Furthermore, the Board approved a long-term incentive grant of 1,125,000 restricted stock units for Mr. Sharma, with a vesting schedule of 33% per year over the next three years.
The agreement obligates Mr. Sharma to adhere to a confidentiality and invention assignment agreement, which includes customary non-solicit and non-compete clauses.
MicroVision, headquartered in Redmond, Washington, has confirmed that Mr. Sharma will continue to have access to the company's general employee benefits, such as expense reimbursement, retirement plans, insurance, and vacation time.
In other recent news, MicroVision, a leader in LiDAR technology, has reported its earnings and revenue results, showing modest financial outcomes while outlining strategic initiatives for future growth. The company anticipates key decisions from automotive OEMs in 2024 and projects revenue of $8 million to $10 million for the year, with a cash burn of $65 million to $70 million. Despite facing challenges in the competitive auto industry, MicroVision is focused on its MAVIN product and MOSAIK software, aiming to secure automotive OEM partnerships and expand into industrial markets.
MicroVision reported $1 million in Q1 2024 revenue, with a cash balance of $73 million. The company is engaged in seven RFQs for its MAVIN product and is exploring opportunities to monetize assets and bring in non-dilutive cash through licensing and partnerships in industrial markets. The company also highlighted its MOSAIK software's potential for sensor validation and cost savings for OEMs.
InvestingPro Insights
As MicroVision, Inc. (NASDAQ:MVIS) solidifies its executive leadership with the renewal of CEO Sumit Sharma's contract, investors may be looking closely at the company's financial health and market performance. According to recent data from InvestingPro, MicroVision holds a market capitalization of $237.66 million and has experienced a significant 578.19% revenue growth over the last twelve months as of Q1 2024. Despite these impressive growth figures, the company's operating income margin stands at -1247.52%, reflecting substantial expenses relative to its income.
InvestingPro Tips suggest that while MicroVision has more cash than debt on its balance sheet, it is quickly burning through cash, and analysts are not expecting profitability this year. Additionally, the stock has been quite volatile, with a significant price drop of over 70% in the last year. These factors, coupled with a high revenue valuation multiple, may suggest caution for investors considering the stock's future performance.
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