S3 Filing. What has changed? -- Updated

S3 Form


The Past

• To survive in the pre-revenue stage, MicroVision has had to raise money. They have done this by issuing stock. 
• Raising money by issuing stock has "diluted" current shareholder interest

The Present

• MicroVision is in early revenue stage. It is now a company that is collecting revenues for products delivered, licensing and royalties on products.
• The company is debt-free.
• The company has a non-exclusive agreement with Sony
• Sharp | Foxconn is using MicroVision tech in something that's getting a lot of attention.
• There is a cellphone that has MicroVision's PicoP embedded. It's awesome.
• The supply chain and manufacturing capabilities to produce PicoP engines to sell is functioning well, and is ready for large orders.
• Improvements in the tech are showing up: brighter, smaller, keystone correction.
• The Celluon PicoPro and the Sony MPCL1 were both best selling in the PicoProjector class, with excellent reviews.

The Future

• On June 9, Lenovo holds tech world (they may release a projector phone or two)
• On June 9, Motorola Z will be released with an attachable PicoProjector
• If the projector isn't PicoP, it won't be very good, and it will show why they need PicoP
• If the projector is PicoP -- then MicroVision gets a pretty good bump in publicity and income
• PicoBit is due out - a pocket sized projector with an included OS - far better functionality than stand-alone (now expected by the end of July)
• Sony's answer to the Amazon Echo, the Experia Agent will have PicoP inside
• More that we don't know about...

Two years ago, Facebook bought Oculus Rift for two billion dollars. While a very interesting product, it doesn't have the market potential of MicroVision's Picop. 

So, as a market cap comparison, if MicroVision does as well, the price per share that MicroVision could command is very significant. MicroVisions Shares Outstanding: 52 Million / 2 Billion = about $38.50

Until the release of yesterday's S3, I thought MicroVision was entering a phase of extreme vulnerability to a hostile takeover. (I have no desire to sell cheap!) I now think that MicroVision has an insurance policy against a hostile takeover. They have more options to do more financially. 

The filing of the S3 doesn't say they have to raise more money, it creates the option to do so. 

So, what reality has changed between yesterday before the S3 was filed and today after it? Nothing. 

Except that the company has more options. We knew they could raise money if necessary; that didn't change. The number of shares outstanding hasn't changed. 

The condition of the company in the marketplace hasn't changed. If you believe in the tech and its ultimate popularity -- there is nothing that should change your view of that. 

In an acquisitions atmosphere such that we have, I want the company to have options -- including the option to raise money if they need to to push us over the top towards profitability. The distance between where we are now, and an excellent cash flow situation and profitability is a couple of strokes of the pen.

When you're an OEM likely to be left behind unless you make a commitment, and you're looking at a viable mobile handset with embedded projector -- the order will come. 

It will be big.