Greetings. Welcome to MicroVision First Quarter 2020 Financial and Operating Results Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to Lindsey Stibbard. You may begin.

Thank you. Good afternoon and welcome everyone to MicroVision's First Quarter 2020 financial and operating results conference call. Joining me on today's call are Sumit Sharma, Chief Executive Officer, and Steve Holt, Chief Financial Officer. The information in today's conference call includes forward-looking statements, including statements regarding exploration of strategic alternatives, sale of our product verticals or technology, sale or merger of the Company, managing costs, completing a strategic transaction; maximizing shareholder value; expected customer orders; future royalties; progress under and benefits of existing contracts and license agreements and the negotiation of future agreements; customer product launches; advantages of our technology; litigation; business execution; projections of future operations and financial results; availability of funds; product development applications and benefits; availability and supply of products and key components; commercialization of our technology; market opportunities and future demand; effect of approvals of proposals contained in our Proxy Statement dated April 3, 2020; as well as statements containing words like opportunity, potential, possibly, intend, confident, believe, goals, focus, paths, expects, plans, will, could, would, likely, resulting, 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 various SEC filings, including our Annual Report on Form 10-K filed on March 12, 2020, Proxy Statement documents, and other SEC filings made from time to time in which we discuss risk factors associated with investing in MicroVision. These risk factors could cause results to differ from those implied or expressed in our forward-looking statements. All forward-looking statements are made as of the date of this call, and except as required by law, we undertake no obligation to update this information. The financial numbers presented on the call today are included in our press release and in the 8-K filed today. Both are available from the Investor Relations section of our website. This conference call will also be available for audio replay in the Investor Relations section of MicroVision's website at www.microvision.com. And now I'd like to turn the call over to Sumit Sharma. Sumit?

Thank you, Lindsey. Good afternoon everyone. MicroVision is at an important inflection point in our history. In the future, Laser beam scanning modules will enable our four product verticals to solve some of the hardest problems in the consumer and automotive industries. We have advanced the technology to this inflection point, as well as demonstrated our capability to commercialize it into volume. We currently have our module products in a top tier, North American OEM device that is shipping to end customers under our April 2017 contract. We were ready to launch an interactive display module in an OEM product in 2020. We developed a consumer LiDAR platform that would allow interested OEMs to possibly get their products to market in 2021, and also could enable an automotive solid state LiDAR solution in the next two years. However, given the impact of the COVID-19 pandemic on the global economy, decreasing consumer demand and the delay of an expected OEM product launch in 2020, we have shifted our focus to exploring strategic alternatives including a sale of part or all of the Company. I would like to clarify with an example. Acquiring one or more product verticals may be more appealing than acquiring the entire Company for certain interested parties. We have retained Craig-Hallum as financial advisors to help expand our reach globally and to work with the Company to evaluate potential transactions and maximize shareholder value. We believe our laser beam scanning technology is appealing and could provide cost-effective solutions to enable solid state LiDAR for consumer and automotive applications in the near future, and could also provide a path to a wider field of view and low power micro display module for augmented and mixed reality headset products. We took several actions with the goal to provide us with…

Thank you, Sumit. Good afternoon, everyone. For the first quarter, revenue was $1.5 million, with approximately $1.2 million of product revenue, $212,000 of royalty revenue and the balance from contract revenue. The product revenue was from our April 2017 customer. I’d like to note that first quarter results were impacted by decreased production associated with the coronavirus. Production was stopped for an additional week after the lunar new year in February and then when production started, it was at a lower rate due to a shortage of manufacturing personnel at the contract manufacturer. In comparison, last quarter we recognized $4.6 million of revenue, with about $4.1 million in product revenue and the balance in contract and royalty revenue. First quarter cost of revenue was $1.4 million, which included $168,000 of write-offs of materials and other items related to our interactive display product. The resulting gross profit was $70,000. In comparison, gross profit was $1.2 million in Q4. In March, we completed an agreement with our April 2017 customer in which the customer took over production of components. From March going forward MicroVision will receive a royalty for each component shipped by the customer. The royalties that are due to MicroVision will be credited against the prepayment made by the customer. When the prepayment is exhausted, the customer will begin making cash payments for royalties due. At the end of Q1, the prepayment stood at $9.3 million. There is no potential scenario that we see where MicroVision would be required to repay any portion of the $9.3 million prepayment. This $9.3 million is on the balance sheet as a contract liability. ASC 606, the new revenue standard, requires that companies estimate and disclose the timing of when those liabilities are expected to be recognized. This information will be found in the…

Thank you, Steve. Before we open the call for questions, I would be remiss if I didn’t thank our hard working employees and partners for continuing to work, in many cases remotely during the COVID-19 pandemic. Finally, I would like to re-iterate our commitment and sense of urgency to implement strategic alternatives that we believe will maximize shareholder value. Thank you we will now open the call for the questions.

I will now turn the call back over to Sumit Sharma for any closing remarks.

Thank you, operator. In closing, I want to once again thank our employees, business partners, and our stockholders for their continued support and we encourage you to vote for the Proxy proposals discussed on the call. I look forward to giving you an update on our progress in the future. Thank you.

Thank you. This concludes today’s conference and you may disconnect your lines at this time. Thank you for your participation.